{ "id": "RL32111", "type": "CRS Report", "typeId": "REPORTS", "number": "RL32111", "active": false, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 104149, "date": "2003-10-10", "retrieved": "2016-04-08T14:36:28.717544", "title": "Unemployment Compensation (UC)/ Unemployment Insurance (UI): Trends and Contributing Factors in UC Benefit Exhaustion", "summary": "This report examines trends and contributing factors in Unemployment Compensation (UC)\nbenefit\nexhaustion rates.\n To counter the disincentive effect of benefit receipt, most state UC programs limit the duration\nof UC benefits to a maximum of 26 weeks and many require some evidence of a job search. The\nlimited duration of UC benefits results in some unemployed individuals exhausting their benefits\nbefore finding work or voluntarily leaving the labor force. Furthermore, the availability of\ncompensation (UC benefits) may create disincentives to search for and accept reemployment. These\ndisincentives are alleviated by decreasing the generosity of the UC benefits and increasing the cost\nof benefit receipt through additional program requirements. The somewhat paradoxical policy of\ncutting UC benefits and increasing the burden of UC program requirements in order to help the\nunemployed leads to competing policy choices. Benefit adequacy is traded off against the\ndisincentive effect; or, unemployment is increased at the expense of employment.\n Exhaustion rates increased over the last 30 years. There has been an important change in the\nrelationship among unemployment and the exhaustion of benefits. Unemployment levels are lower\nin the 1990s than in the 1980s and 1970s for equivalent economic periods. However, these lower\nunemployment rates are associated with higher expected rates of benefit exhaustion. This trend has\nmany complex contributing factors, including changing program benefit generosity and\nadministration, workforce demographics, and general economic conditions. Research indicates that\n(1) increased UC coverage and lowered program requirements; (2) increased proportion of women,\nminorities and older workers in the workforce; (3) decreased manufacturing positions; and, (4)\ndecreased temporary layoffs all contribute to an increase in UC benefit exhaustion. The UC benefit\nexhaustion rate also increases during economic recessions; after economic recovery, the UC benefit\nexhaustion rate decreases. This paper will be updated as events warrant.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL32111", "sha1": "380a7a3e64d7cf7330a42491c0931d671acb6c2b", "filename": "files/20031010_RL32111_380a7a3e64d7cf7330a42491c0931d671acb6c2b.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL32111", "sha1": "dc59ebbc06c517f2b77e6e259a04190b8e1b8c7a", "filename": "files/20031010_RL32111_dc59ebbc06c517f2b77e6e259a04190b8e1b8c7a.pdf", "images": null } ], "topics": [] } ], "topics": [ "Economic Policy" ] }