logo
Brief Publisher Logo
FACT BRIEF

Did the size of unemployment insurance change throughout the COVID-19 recession?

By EconoFact
View this fact brief on EconoFact
Copy link
email
Copy featured image
email
YES

Unemployment insurance (UI) does not typically fully cover lost wages. However, during recessions benefits may be increased for a short period of time when jobs are not available and disincentives to work are minimal. Expanded UI benefits after the CARES Act even replaced more than some workers pre-pandemic wages; for example, a full-time worker in CA earning $20 per hour pre-pandemic saw their wage replacement rate jump from 50% to 125% to 87.5% to 50% and then settle back at 87.5% before expanded benefits expired in September. Ideally, expanded UI benefits should coincide with the start of an economic contraction to help affected workers but should be removed as the economy recovers to maintain work incentives that facilitate economic growth. Timing is everything, and regional differences in economic recovery mean adjustment of expanded UI benefits should vary geographically as well. 

See a full discussion of this at EconoFact
This fact brief is responsive to conversations such as this one.
Sources
EconoFact Improving the Timing of Unemployment Insurance
ABOUT THE CONTRIBUTOR
EconoFact
EconoFact is a non-partisan publication designed to bring key facts and incisive analysis to the national debate on economic and social policies. Launched in January 2017, it is written by leading academic economists from across the country who belong to the EconoFact Network. It is published by the Edward R. Murrow Center for a Digital World at The Fletcher School at Tufts University.
FACT BRIEF BY
Brief Publisher Logo
Latest fact briefs
facebook
twitter
email
email
About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.