Why Extended UI Benefits were Turned Off Prematurely for Workers in 33 States

In some states, up to 30% of people receiving unemployment insurance benefits are losing access to state Extended Benefits because of how unemployment levels are currently measured. UI benefits are automatically extended when particular unemployment rates reach certain thresholds. However, one of the relevant rates does not count people who are receiving UI benefits from extension programs, it can move in the opposite direction of more commonly accepted measures of unemployment. This means Extended Benefits can "trigger off" when they are needed most. This Policy Brief explains how these automatic benefit extensions work, and uses data from the U.S. Department of Labor to quantify the impact of the design of the Extended Benefit program for UI claimants during the COVID-19 pandemic and in other downturns.