Approximately 1.84 million people collect unemployment insurance benefits currently. While the standard maximum number of weeks an eligible unemployed worker can receive benefits has been 26, many are finding out that the length has been cut in half, and they have less time to find new work than they thought.
Some states have recently, in the last few years, reduced the duration to be as short as only 12 weeks. Which can be shockingly brief when you consider that it takes, on average, three to six months to secure a new job, and even longer for specialized or senior roles.
These States Have Fewer Than 26 Weeks to Collect Unemployment Insurance Benefits
As of this writing, the following states offer fewer than 26 weeks of benefits, and their maximum durations are listed below:
- Alabama – 14 weeks
- Arizona – 24 weeks
- Arkansas – 12 weeks
- Florida – 12 weeks
- Georgia – 14 weeks
- Idaho – 21 weeks
- Iowa – 16 weeks
- Kansas – 16 weeks
- Kentucky – 16 weeks
- Louisiana – 12 weeks
- Missouri – 20 weeks
- Montana – 24 weeks
- North Carolina – 12 weeks
- Oklahoma – 16 weeks
- South Carolina – 20 weeks
- Tennessee – 12 weeks
Some of these states update their maximum duration based on changes to their unemployment rate.
Why People Are Running Out of Unemployment Insurance Benefits
As mentioned, the time it takes to get a new job can be longer than your state’s maximum number of allowed benefits. Likewise, you may run out of benefits (the dollar amount) before you even reach the maximum.
For instance, your Maximum Benefit Amount (MBA) is a specific balance, a set dollar amount, based on your work history.
If you had very low wages or you only worked for part of the year, your MBA might only pay out for 12 to 15 weeks. So, even if you live in a state that offers 26 weeks, that doesn’t guarantee you will get payments for that length.
Other reasons might include:
- Not settling for a lower-paying position. It often takes longer to find a high-level executive job, and taking a job to survive may mean getting stuck because they are then unable to interview for better offers or have the time to write cover letters, customize resumes, etc.
- Their skills are now obsolete. In the age of AI, many workers are being replaced by automated technology. And it can take months to years to update their credentials.
- They don’t have the flexibility they used to. Some workers have family obligations, like taking care of their kids or aging parents, that no longer allow them to seek nine-to-five positions. It can take an even longer time to find remote or hybrid jobs.
An employee may have lost the perfect position (one that paid what they needed, utilized the skills they had, or gave them flexibility), and finding a replacement may not come as quickly as their unemployment benefits last.
Can You Extend Your Unemployment Benefits With a Part-Time Job?
One strategy unemployment insurance claimants might try is taking a part-time position to extend their benefits. As mentioned, your MBA is a fixed amount, and a part-time job could keep your claim active longer. However, something to keep in mind is that earning a paycheck could also mean a reduction in your weekly benefit amount.
For example:
- If your MBA is $5,000 and your weekly check is $300, you would run out of funds before 17 weeks.
- If you earn $150 a week from part-time or gig work, your unemployment check may be half, but you may collect for the full 26 weeks. Some areas may not reduce your weekly benefit dollar for dollar, so you may be able to earn money without losing much of your benefit check.
This may be a good option if you think the part-time position could lead to a full-time one. Something to keep in mind is that if you go past a year (in some states), your benefits end, and you forfeit any money left in your MBA.
The Pros and Cons of Accepting a “Survival Job”
Unemployment insurance payments do not fully replace your old paycheck. The benefits are meant to only help pay for basics, so there is a good chance that you will still need to use your savings to cover the rest of your bills and expenses.
So, when that 26-week mark approaches and that little buffer threatens to disappear, it’s understandable to be anxious about what to do next. That’s when many people start to debate taking whatever job they can get, even if that is minimum wage, part-time, or in a completely different field.
Pros of taking a survival job:
- Avoiding long unemployment gaps. Hiring managers might be nervous to hire someone with so much time between positions. They may not see you as an active worker or someone who takes initiative.
- Paying the bills. Although taking a job that pays half as much as your last may be a hit to your wallet, it’s better than not having any income and defaulting on your mortgage, getting evicted from your rental, or having your utilities turned off.
- It keeps you in a routine. One problem with long unemployment periods is that you can slip into a limbo where time doesn’t exist. Having a job that requires you to be somewhere during set hours ensures you don’t slack off on finding a better-suited position when you have time available.
Cons of taking a survival job:
- Opportunity costs. Looking for a great job is a full-time job, so if you are working 30-40 hours a week to cover the bills, you may not have the time or energy to pursue better prospects.
- Anchor salary. While having some income is better than no income, taking a lower-tier role can reset your market value to future hiring managers, especially if your last high-paying position was a year ago or longer.
Finding a middle ground could be a good strategic move. Something that is adjacent to your last position, but is part-time or a consultant position. That way, you are currently working (and have some money) but still have the time and energy to keep looking.