Unemployment claims after a layoff
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A new report shows this year has been the worst year for layoffs since the start of the pandemic, and newly unemployed workers are entering a tough job market.
While job loss may leave workers scrambling to pay bills like mortgages or kids’ college tuition, experts say there’s one important thing you should do before reevaluating your expenses or talking to lenders: apply unemployment benefits.
It can take weeks for benefits to reach you, and minimizing that wait can help strengthen your financial situation.
“After a layoff, workers should immediately apply for unemployment benefits to cover basic expenses and protect their savings against true emergencies,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York. Boneparth is also a member of the CNBC Council of Financial Advisors.
US employers I cut There were 1.17 million jobs lost through November this year due to corporate restructuring, artificial intelligence and tariffs, consulting firm Challenger, Gray & Christmas reported Thursday. This number is the highest since 2020 during the Covid pandemic.
Payroll processing company ADP also found this week that the labor market slowdown intensified in November as private companies laid off 32,000 workers.
Here’s what workers need to know about unemployment benefits.
Documents you need to apply for unemployment
Michele Evermore, senior fellow at the National Academy of Social Security, said you should gather the following information before applying for unemployment benefits:
- Details of your salary for the last 18 months.
- Names and addresses of previous employers at that time.
- Your Social Security number.
- Your government-issued identification, such as a driver’s license.
- Any documentation from your last employer, including information regarding your termination.
Apply in the state where you work
If you live in one state and work in another, you’ll want to apply for assistance in the state you work inexperts say.
On a DOL-sponsored website you can find: contact information for state unemployment agencies.
State agencies are supposed to pay benefits within three weeks of your application, but delays have become more common since the pandemic, Evermore said.
“The situation will likely get worse as layoffs increase,” he added.
Maximum benefits vary by state
Maximum unemployment benefit amounts vary by state. For example, California’s maximum weekly benefit is: $450; hat in florida $275said Evermore. Maximum weekly benefit in New York recently 869 dollars.
Standard benefit period is 26 weeks, but not always
Evermore said in most states, claimants can receive unemployment benefits for 26 weeks; but in some states it is less so. For example, in Florida, benefits only last for a while 12 weeks.
Unemployment benefits are taxable
Unemployment benefits are taxed at the federal level, and many states also tax them. Once you start receiving payments, your state will usually give you the option to have taxes withheld, Evermore said.
He later said it was a good idea to exercise this option to avoid a potentially hefty tax bill.
