Optimist Economy
Optimist Economy
Kathryn Anne Edwards and Robin Rauzi
Can We Fix America's Broken Unemployment Insurance System?
1 hour 7 minutes Posted Sep 30, 2025 at 10:10 am.
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Just how broken is Unemployment Insurance? Consider this: During every recession since the 1950s, the federal government has had to step in and prop it up. Of people looking for work, only half qualify for Unemployment Insurance. And just half of those actually receive benefits. That’s what you get from a system designed mostly for factory workers nearly a century ago and then left to the heedless care of states. Benefits vary wildly by state — $235 a week in some, over $800 in others. Most states have — understandably — taken the lesson that they don’t have to fix anything because Washington will step in if the economy gets really bad. This is a scrap-it-and-start-over situation. Many solutions would be better, including a system focused on re-employment that keeps workerbots attached to the labor market, helping businesses prevent layoffs during downturns, and making job-hunting less awful.