Summary

The extremely low level of receipt of unemployment insurance (UI) by former welfare recipients suggests significant failings in the current UI system and the need to reconsider how attachment to the labor force and acceptable reasons for job separation are determined for purposes of UI eligibility. However, even with such modifications to UI monetary and nonmonetary eligibility rules, many low-wage workers will continue to be ineligible for UI. A new program of temporary, needs-based income assistance and employment services that supplements the UI system could be an important step in providing support for workers between jobs and in helping states moving toward a unified workforce development structure for all working-age adults. Unemployment Insurance and Low-Wage Workers The legislation enacting the Temporary Assistance for Needy Families (TANF) block grant made no reference to the UI system and the recently enacted Workforce Investment Act of 1998 (WIA) makes only minimal references to UI. However, it is likely that state implementation of TANF and WIA will encourage policymakers to ask new questions: Who should qualify for UI? Should states develop a reemployment assistance structure that is coordinated with UI? How could states incorporate TANF and UI into a broader framework of workforce development? Several studies have shown that women and low-wage workers are less likely than other workers to qualif