Department Of Labor Floats Stricter Rules For Unemployment Benefits

Authored by Zachary Stieber via The Epoch Times,

The Department of Labor is proposing stricter rules for Americans trying to get unemployment benefits.

To receive unemployment compensation (UC) benefits under the proposed rules, people would have to carry out a minimum of five unique job searches per week, unless exceptions are met.

“This action is necessary to reduce inconsistencies beyond those created by local labor markets in State-level requirements for individuals to actively seek work,” the department said in the proposal, which was published on Nov. 10.

“The intended effect is to hold States accountable for administering a UC program that provides temporary wage replacement to eligible individuals while they are actively seeking work through a meaningful engagement with the labor market.”

Work search activities include contacting companies to seek work and participating in job interviews.

Currently, some states require just one search per week. Others require two to four searches every week. A few mandate at least five per week.

The different number of searches required across states can create confusion, lead to uneven enforcement, and increase the likelihood that people otherwise eligible for unemployment may fail to meet requirements, the department said. Work search errors are a primary driver of improper payments, officials said.

The unemployment program, also known as unemployment insurance, is designed to provide partial wage replacement for unemployed people as they seek their next job. States work with the federal government to provide the money to unemployed workers.

If the new requirement is finalized, every state would be required to only pay unemployment to people who complete five or more work searches per week or complete activities in a points-based system, unless exceptions apply.

Under the system, states could assign one to three points for a work search activity. The activity, if it gives more than one point, must link people to specific industries and locations that need workers, or “has strong evidence for directly leading to reemployment,” according to the department. Participants would need five points or more.

Exceptions might apply if an individual has a certain attachment to the labor force, such as being enrolled in a state-approved training program, according to the proposal.

“The purpose of unemployment insurance is to provide temporary support while people proactively search for a new job or upskill to meet the needs of employers restoring critical supply chains,” Secretary of Labor Keith Sonderling said in a statement.

“This proposed rule helps jobseekers find work faster and ensures efficient use of taxpayer resources while improving the overall integrity of our unemployment system.”

The unemployment rate dipped slightly to 4.1 percent in October, according to recently released government statistics. The percentage of unemployed workers who have been without a job for at least 27 weeks has been rising, though, and hit 27.6 percent in October, according to the Bureau of Labor Statistics.

The new proposal could temporarily increase the number of improper payments as states and individuals adjust to the new requirements, but the risk is necessary to ensure the system is working as intended, the department said.

People can submit comments on the proposal on or before Jan. 11, 2027.