Costs of UI eligibility and standard benefit levels now and under reform
| 2016–2019, actual | Archetype reform | Difference between actual and reform | |
|---|---|---|---|
| Unemployment rate | 4.2% | – | -4.2% |
| Recipiency rate | 27.3% | 54.5% | 27.2% |
| Replacement rate | 39.2% | 68.6% | 39.4% |
| Annual UI spending in billions | $29.6 | $65.9 | $36.3 |
Note: The Department of Labor Employment and Training Administration (U.S. DOL-ETA 2021) defines the UI recipiency rate as the percentage of total unemployed who are receiving UI (insured unemployed/total unemployed). The replacement rate is the ratio of UI claimants' weekly benefit amount to claimants' average weekly wage.
Sources: The unemployment rate is obtained from the Bureau of Labor Statistics (2021b), the recipiency rate and the replacement are both obtained from the Department of Labor Employment and Training Administration (U.S. DOL-ETA 2021), and annual UI spending is obtained from the Bureau of Economic Analysis (BEA 2021b).