Unemployment Advocacy Guide

What is unemployment insurance?

The unemployment insurance (UI) system was created by Congress in 1935 as part of the Social Security Act. It provides UI in the form of temporary cash benefits. Workers are eligible if they become unemployed through no fault of their own and if they are able to work and are seeking work.

State agencies manage UI. The federal government sets up certain guidelines and provides funding to the states for administrative costs. Individual states give UI benefits up to a limit that they establish, which may differ from state to state. The Division of Unemployment Assistance (DUA) manages the UI program in Massachusetts.

UI benefits are about half of the average weekly gross wages (wages before taxes) of the claimant (unemployed person seeking benefits), up to the limit which is currently $628 per week. The Commonwealth provides up to 30 weeks of coverage to each eligible claimant. The federal government provides more benefits when unemployment is high. Claimants in certain training programs or who have been laid off because of a plant closing may also receive additional federal or state benefits.

Both the federal and state governments can tax unemployment benefits.