Unemployment benefits 101: four basic questions answered

Like last year, Congress is debating whether to reauthorize extended unemployment insurance. At stake as early a January are benefits for some 1.8 million Americans who currently receive unemployment. Here are the different scenarios and ramifications of what could happen: 

4. What if the unemployment rate falls even more?

Shannon Stapleton/REUTERS/File
People looking for jobs wait in line to meet professionals from more than 30 employers at a New York job fair in this file photo.

If the unemployment rate falls to under 8.5 percent in a state, residents will not be eligible for Tier IV of EUC, which gives the unemployed an extra 6 weeks of compensation. If the unemployment rate falls below 6 percent, the unemployed will lose Tier III, which is 13 additional weeks.

If the unemployment rate falls in a state, it could also affect the extended benefits program. For instance, if the unemployment rate falls below 8 percent for a three-month average in a state, the unemployed could lose 7 weeks of benefits. If it falls below 6.5 percent, they could lose 13 weeks of compensation.

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