• Unemployment insurance is a US government program that provides money for people who have lost work.
  • Under the CARES Act, states are offering unemployment insurance for 13 weeks longer than they have in the past and giving residents $600 more per week than usual.
  • Unemployment insurance has expanded to cover furloughed employees, self-employed people, and gig workers amid the coronavirus pandemic.
  • You can apply for unemployment insurance at CareerOneStop.org.
  • Read more personal finance coverage »

As US businesses close to prevent the spread of the coronavirus, millions of Americans are losing work. Thankfully, many of these people qualify for unemployment insurance.

Unemployment insurance is a joint state-federal government program that provides money for people who have lost their jobs. Under the CARES Act, the rules regarding unemployment insurance have expanded – more Americans will qualify for insurance, and the government will pay more money for an extended period of time.

How unemployment insurance works

Your benefits will vary depending on which state you live in. However, because unemployment insurance is a joint state-federal program, federal laws keep benefits fairly similar from state to state.

Under normal circumstances, you’d receive roughly half of your wages in unemployment insurance. Each state has a limit on how much you can collect in unemployment, though. You’ll get payments weekly, usually by direct deposit.

Most states allow you to receive benefits for up to 26 weeks, but if you're still unemployed after this time period, you may qualify for an extended program.

You should receive your first check within two or three weeks of submitting your application.

Changes to unemployment insurance amid the coronavirus outbreak

The CARES Act has changed some rules regarding unemployment insurance. Each state will offer unemployment benefits for 13 more weeks than it had previously allowed. For many states, this means residents can qualify for up to 39 weeks of unemployment. These provisions will last until the end of 2020.

You will also receive $600 more than you'd typically qualify for, no matter your former income, for every week you go without work from April 5 to July 31.

If you haven't applied for unemployment insurance yet, don't worry. You can apply now and receive payments retroactively for as early as March 29.

Who is eligible for unemployment insurance?

Normally, there are two criteria for unemployment insurance:

  • you must have lost work through no fault of your own
  • you must have met your state's requirements for wages earned or time worked

Under the CARES Act, there are additional rules for who qualifies amid the coronavirus pandemic. You may qualify for unemployment insurance if you've experienced any of the following:

  • Your work has temporarily closed due to the coronavirus
  • You have been quarantined but expect to go back to work after the quarantine ends
  • You have to leave work to take care of a family member
  • You leave work because there's a serious risk of exposure to the coronavirus

Furloughed workers do not usually qualify for unemployment insurance, but they do under the CARES Act. Self-employed people, contracted employees, and gig workers are also now eligible for benefits.

How to apply for unemployment insurance

Visit CareerOneStop.org and select your state to learn how to apply in your state. CareerOneStop is a job resource from the US Department of Labor that provides links to general unemployment insurance information, coronavirus responses, and applications for your state. You'll have to apply through your state to receive benefits.

You may choose to call your state to apply, but due to long wait times amid the coronavirus outbreak, you can probably apply more quickly by filling out an online application.

Be ready with your bank account details, previous employer contact information, and job history for the last 18 months.