As evidenced by the most recent Employment Situation report from the Bureau of Labor Statistics (BLS), millions of Americans have yet to return to work, despite growing numbers of job openings. Unemployment Insurance (UI) has played an important role in the recovery by stabilizing consumption and keeping jobseekers from dropping out of the labor force entirely. Studies have documented that, following a job loss, food or nondurable consumption declines between 6 and 9 percent. Once UI benefits are exhausted, similar consumption can drop by up to 12% on average. By ensuring that, even after a job loss, covered workers can continue to fulfill their basic subsistence needs (e.g. rent, food, medications, etc.), UI provides liquidity  constrained displaced workers with the breathing room they need to find a better-paying job that matches their skills, experience and family demands.

Read the issue brief here.