I was recently laid off from my construction job, and a friend suggested that I apply for unemployment. I’ve never collected unemployment benefits before. Can you tell me how it works? - Devon, Lansing, MI

Unfortunately, Devon’s situation is not unique. He is one of the 15.7 million people who are currently unemployed. Nationwide, unemployment is at 10.2 percent (as of October), the highest rate seen since April 1983. And if you look at unemployment in the African-American community, it’s even higher - at 15.7 percent. Certain areas of the country have been hit particularly hard, especially those states with a high concentration of construction, manufacturing and retail businesses. In Michigan, where Devon lives, the unemployment rate is one of the highest in the country, reaching 15.3 percent.

While news about the job market has been fairly bleak, earlier this month, Congress again extended the amount of time that individuals can collect unemployment benefits, this time by another 14 weeks (or 20 weeks in states with unemployment averaging 8.5 percent or higher for the past three months).  With 7,000 unemployed Americans running out of benefits each day, this extension provides an important financial lifeline.

Who qualifies for unemployment benefits?

While unemployment benefits vary by state, in general, you need to meet certain “unemployment eligibility” requirements. These requirements consider how much you earned, how long you worked and why you are unemployed. Individuals who quit their job without good cause or were fired for misconduct are generally not eligible. To obtain benefits, most states also require you to register with a state job service office and demonstrate that you are actively seeking work. Many job service offices provide resources to help you find a job, including career counseling, relevant training (e.g., typing, computer skills, etc.), as well as resume and cover letter assistance. However, in some cases, these job service offices may also impose requirements related to applying for jobs, submitting resumes and accepting a job opportunity if it meets certain standards. 

So, how does a person file for unemployment?

In most states, you can apply for unemployment benefits online or over the phone, rather than having to apply in person.  Simply check with your state’s unemployment office for more details. In Michigan, for example, Devon can apply for unemployment benefits on the state’s Unemployment Insurance Agency (UIA) Web site at www.michigan.gov/uia. Because it can take up to three weeks to collect benefits, you may want to apply as soon as you’ve been laid off, especially if you have been living paycheck to paycheck. 

What kind of information do you need to provide to apply for benefits?

Requirements vary by state, but you usually need to supply:

- Personal information (including name, mailing address, Social Security number)

- Information about your last employer (company name, address, phone). If you were employed for less than two years, you may be asked for more employment history.

- Your former employer’s tax ID number (located on a W2 or pay stub)

- Dates of employment

- Your earnings

Additionally, you may be asked whether you are owed vacation or holiday pay, as well as the reason you left your job. Once the initial application process is completed and approved, you can log in to your account or call each week to submit a claim (you need to submit claims weekly to continue to receive benefits); check the status of a previously submitted claim and review how much unemployment you have left based on your eligibility. 

How much can you receive in unemployment benefits?

If you were hoping for replacement compensation equal to what you were earning when you were working, you’ll need to adjust your expectations. Typically, you will .....

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