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<classification authority="sudocs">GA 1.13:GAO-01-181</classification>
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 <subject>Unemployment insurance</subject>
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 <subject>State-administered programs</subject>
 <subject>Eligibility criteria</subject>
 <subject>Disadvantaged persons</subject>
 <identifier>Unemployment Insurance Program</identifier>
 <identifier>Temporary Assistance for Needy Families Program</identifier>
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<titleInfo>
 <title>Unemployment Insurance: Role as Safety Net for Low-Wage</title>
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<abstract>The welfare and unemployment insurance (UI) programs have been part of
the nation&apos;s social safety net since 1935. The welfare program provides
cash assistance to needy families without means of support, while UI
provides cash assistance to people temporarily unemployed. In 1996,
welfare reform put time limits on how long most people can receive cash
assistance and generally required recipients to engage in work
activities to qualify for income support. Since then, the welfare rolls
have dropped dramatically as large numbers of welfare recipients have
started working, many in low-income jobs. With this shift, the UI
program has become a more significant part of the social security net.
GAO examined the use of the UI program by low-wage and unemployed
workers. GAO found that low-wage workers are less likely to receive UI
benefits than other unemployed workers even though they are twice as
likely to be unemployed. Low-wage workers are less likely to receive UI
benefits because of (1) their tendency to quit work voluntarily, (2)
restrictive state eligibility requirements, and (3) their lack of union
memberships. Several UI reform proposals to expand the availability of
UI benefits to these workers are being discussed by the Advisory Council
on Unemployment Compensation.</abstract>
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<note>Letter Report</note>
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 <topic>Social security benefits</topic>
 <topic>State-administered programs</topic>
 <topic>Eligibility criteria</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Unemployment Insurance Program</topic>
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