What is Wrong

with the current unemployment compensation system?

Shifts in employment patterns and a tightening of eligibility requirements are behind the nationwide reduction in effective unemployment insurance coverage. Today almost 30% of the U.S. work force is employed in nonstandard work arrangements, including part-time, temporary, contract or on-call work, and self-employment. Most of these jobs are subject to the payroll tax that funds unemployment benefits—yet these workers often find they are ineligible. For instance, persons who are seeking only part-time employment do not qualify for unemployment benefits in many states. This affects women in particular, including heads of households, who often work part time due to dependent care responsibilities. People who work full time but only for part of the year may also find it difficult to qualify for unemployment benefits.

Many workers who are not eligible for benefits provide income that is critical to their families. In 2007, 41% of workers worked only part-time or part-year. Among heads of households, this figure, though lower, was still sizeable: in 2007, it was 32% overall and 42% for female family heads. Besides child care, elder care can also mean part-time or part-year work for many. Nearly one-third of working adults with older parents report missing some work to care for them.