Unemployment Insurance Myths That Distort Reality

Unemployment Insurance Claims Office
via Flickr
Brooke Brown
September 29, 2020

Myth 1: Every state determines unemployment eligibility and benefits the same.

According to RAND Corporation researchers, “each state (plus the District of Columbia, Puerto Rico, and the Virgin Islands) has its own method for defining a worker's past earnings, its own formula for determining how much of that income will be replaced by unemployment insurance, and its own cap on benefits.” 

This can make the system confusing to navigate for a mobile workforce.

Myth 2: States with more workers paying INTO the system pay OUT more in benefits.

Sadly, some of the most populated states like Texas, Florida, and Georgia are paying the LOWEST amount in unemployment benefits. It’s also no coincidence the states providing the weakest access are also the states with the largest percentage of Black workers.

Myth 3: Black workers are lazy dependants, free loading on the system when they could be working. 

This myth intentionally sets up a narrative where Black workers are portrayed as unskilled, shiftless, and undeserving of aid. In reality, “Black workers are less likely than white workers to receive unemployment [AT ALL], a difference that cannot be explained by education or prior job tenure.” And those who collect benefits have met the wage and hour qualifications for recipiency.

Now that we know the truth, we must advocate for better from our elected officials, future COVID-19 relief stimulus packages, and the safety net unemployment insurance should be!

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