How Does Unemployment Work + How to File for It

Key takeaways

• You can qualify for unemployment benefits if you lost your job through no fault of your own and you're actively searching for work

• Workers in most states are eligible for up to 26 weeks of regular state-funded unemployment benefits.

• You'll need your Social Security number, driver's license, past employer information, and bank routing number to apply

• You must confirm each week that you are looking for work to keep receiving benefits.

Getting laid off from your job is an awful feeling – and it can take over 11 weeks on average to find a new job. To help, unemployment benefits, also known as unemployment insurance, can provide financial support while you search for your next opportunity.

Here's what you need to know about how unemployment works and how to file for it.

Who can apply for unemployment?

You can apply for unemployment benefits if you recently lost your job through no fault of your own and you're actively looking for work. Anyone who legally held a job in the U.S. can apply in the state where they worked, though specific eligibility guidelines vary by state.

Here are a few criteria that you'll have to meet in most states:

• You recently worked in the state: To qualify for unemployment benefits, you must have worked in the state where you're filing, usually for one to two years. This requirement may not apply if you were serving in the military or working for the federal government.

• You worked enough hours: You usually have to work a certain number of hours during what's known as the base period. In most states, the base period is usually defined as the first four of the last five completed calendar quarters before a claim is filed.

• You lost your job through no fault of your own: This usually means you were laid off, quit for a covered reason such as a hostile work environment or workers' rights violations, or were discharged from the military. You probably won't be eligible for unemployment benefits if you were fired for cause or were involved in a strike.

• You're actively searching for a new job: You can only get unemployment or reemployment benefits if you register with your state's unemployment office and are looking for a new job. Investing time in career planning can help you land a role that fits your long-term goals. That means you also need to be legally and physically cleared for work.

What documents do you need to apply for unemployment benefits?

To apply for unemployment benefits, you need your Social Security number (SSN), driver's license number, mailing address, list of past employers, and, in most cases, your bank account's routing number. This information will help the government verify your identity, approve your unemployment application, and send payments on time.

Have the following documents available to avoid submission delays:

• Birth certificate

• Social Security card

• W-2(s) (from the last one to two years)

• Pay stubs

• Bank statements

How to file for unemployment in 5 steps

Applying for unemployment can seem overwhelming if you haven't done it before. Luckily, you can submit your claim online or over the phone in most cases. Processes vary by state, but in general, you can expect the application process to include the following steps.

Step 1: Find your state's application

When you're ready to file for unemployment, visit your state's official unemployment website to find the application and state-specific guidelines. You can find your state's link in the benefits table later in this article.

Once you're on the official unemployment webpage, look for words like "Apply for benefits," "Apply online," "File a claim," "Unemployment benefits application," or similar wording to open the application portal.

Step 2: Fill out and send in the application

Once you find the correct application, you can fill it out. Double-check your application and correct mistakes like misspellings and incorrect dates before submitting.

During this step, enter some or all of the following details:

• Identifying information, like your full name, claimant ID, birth date, address, work authorization status, and Social Security number.

• Contact information, like your phone number and email address.

• Qualifications, including your education, work experience, training, licenses, and certifications.

• Work history, including where you worked, your position, earned wages, and time worked.

• Job loss information, such as your reason for separation, your current job (if applicable), and your plan to find a new job.

Step 3: Wait for the state's decision

Some states approve your unemployment application in a few days, while others take weeks. File as soon as you lose your job to avoid interruptions to your cash flow. You can look into resources like rental assistance, food banks, and nonprofit aid if you're waiting for approval or your application is denied.

What happens next:

• If approved: You'll receive an unemployment debit card to access your funds.

• If denied: You can submit an appeal to the relevant office in your state or look into alternative aid.

Step 4: Receive your unemployment funds

Most states deposit money on unemployment debit cards instead of mailing out checks. They work just like any other bank card, making it easy to buy essentials at the store, pay your bills, and withdraw cash from ATMs. The only difference is that they're prepaid cards and don't connect to your bank account.

Benefit payments are generally made after your weekly certification, but deposits may be delayed due to holidays or other temporary holds while eligibility is determined.

Step 5: Recertify weekly

Once you are approved, you generally must recertify every one to two weeks to show you remain eligible for payments. If you don't, the state may suspend your payments, and there might be legal consequences.

Fortunately, recertifying is a simple process:

• Let the state know that you still haven't found work, usually through the state website portal.

• Show proof that you're looking for work – usually by submitting copies of applications, a job search log, or a list of hiring events you've gone to.

• Report income fluctuations from sources like freelance work or earnings from social media.

What is the unemployment maximum by state?

Each U.S. state has different unemployment requirements and benefit amounts, so it's smart to know what to do when your benefits run out. The table below shows the maximum weekly benefit and the duration of funding in your state. Your state may temporarily increase these amounts or extend the benefit period during high unemployment, and some states offer additional money if you have dependents.

Managing your money while unemployed

If you find yourself suddenly out of work, making a budget can help you manage reduced income while you search for work. Focus on covering essential expenses like housing, utilities, and food first. Then, adjust your discretionary spending — money for non-essential items or wants — until you land your next job.

To explore flexible income options while you search, learn how to conquer the gig economy.