United States Government Accountability Office

GAO Report to the Chairman, Subcommittee 

on Income Security and Family 

Support, Committee on Ways and 

Means, House of Representatives 

UNEMPLOYMENT 

INSURANCE 

Low-Wage and PartTime Workers 

Continue to 

Experience Low Rates 

of Receipt 

September 2007 

 

GAO-07-1147 
Contents 

Letter 1

Appendix I Briefing Slides 5 

Appendix II GAO Contact and Staff Acknowledgments 38 

Related GAO Products 39 

Abbreviations 

CPS Current Population Survey 

SIPP Survey of Income and Program Participation 

UI Unemployment Insurance 

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. It may be reproduced and distributed in its entirety without further 

permission from GAO. However, because this work may contain copyrighted images or 

other material, permission from the copyright holder may be necessary if you wish to 

reproduce this material separately. 

Page i GAO-07-1147 Unemployment Insurance
United States Government Accountability Office

Washington, DC 20548 

September 7, 2007 

The Honorable Jim McDermott 

Chairman 

Subcommittee on Income Security 

 and Family Support 

Committee on Ways and Means 

House of Representatives 

Dear Mr. Chairman: 

The Unemployment Insurance (UI) program has been a key component in 

ensuring the financial security of America’s workforce for more than 70

years. The UI program is a federal-state partnership designed to partially 

replace lost earnings of individuals who become unemployed through no 

fault of their own. In fiscal year 2006, the UI program covered about 130 

million wage and salary workers and paid about $30 billion in benefits to

about 7 million workers who lost their jobs. 

The UI program was established in 1935. At that time, most of the labor 

force consisted of men who were employed full-time in the manufacturing 

or trade sectors. Since then, the nature of both work and unemployment 

has changed in fundamental ways. In recent decades there have been 

increases in the share of low-wage jobs, the incidence of temporary and 

contingent work, the number of women in the workforce and the number 

of two-earner families, and the average duration of unemployment. Given 

these changes in the labor force, questions about the types of workers who 

are most likely to receive benefits require further investigation. 

You asked that we provide information about the extent to which different 

groups of workers are being served by the UI program. This current work 

updates a prior GAO report that assessed UI’s role as a safety net for lowwage workers.1

 Specifically, this report examines (1) the overall trend in 

the usage of UI; (2) the likelihood that low-wage workers will be 

unemployed and receive UI benefits, especially when compared to higher-

 1

 GAO, Unemployment Insurance: Role as Safety Net for Low-Wage Workers Is Limited, 

GAO-01-181 (Washington, D.C.: Dec. 29, 2000). 

Page 1 GAO-07-1147 Unemployment Insurance
wage workers; and (3) the likelihood that unemployed part-time workers 

receive UI benefits. 

To address these issues, we used a combination of methods. To determine 

the long-term trends in the usage of the UI program, we analyzed data on 

UI regular program recipiency rates provided by the Department of Labor. 

To compare the likelihood that low-wage unemployed workers receive UI 

benefits with that of other workers, we examined data from the Survey of

Income and Program Participation (SIPP), a nationally representative

database maintained by the Bureau of the Census,2

 after determining that 

these data were sufficiently reliable for the purpose of this report. For our 

purposes, SIPP data were available for the period 1992 through 1995, 1998, 

and 2003.3

 We ran analyses for all workers ages 16 to 64 who had an 

employment history within the past 27 months, using their employment 

status in March of each year.4

 We excluded individuals who were new 

entrants to the labor force, as well as those with a history of selfemployment; thus, our unemployment rates are not directly comparable to 

national unemployment rates.5

 We defined “low-wage” as an hourly wage 

which is less than that required for a full-time worker (40 hours per 

week/52 weeks per year) to earn the Census poverty threshold for a family 

of four, e.g., less than $8.97 per hour in 2003. We defined a “low-wage 

 2

 Our analysis compares UI rates of receipt for low-wage and higher-wage workers. Many

factors contribute to this difference in rates of receipt that are not examined in this simple 

descriptive analysis, but which would be important for a more comprehensive analysis. For

example, a more comprehensive analysis might control for workers’ reasons for leaving 

work, union membership, recent work history, and other factors when comparing 

recipiency for low-wage and higher-wage workers or when comparing recipiency for parttime and full-time workers. 

3

 New SIPP panels were initiated each year from 1990 to 1993, in 1996, and in 2001. These

panels provided us with 27-month employment histories for sample members in 1992

through 1995, 1998, and 2003. Data for 1996, 1997, and 1999-2002 were not available 

because no new SIPP panels were initiated in the years 1994, 1995, 1997, 1998, or 1999. A 3-

year panel was started in 2000 but cancelled after 8 months for budgetary reasons, and thus

could not be used for our analysis. Unweighted sample sizes by year can be found in

appendix I, table 4. 

4

 Sample members were age 16 or older at the start of the 27-month panel and 64 or

younger at the end of the 27-month panel; thus they were age 18 to 64 in March of the panel

year when we determined employment status and UI rates of receipt.

5

 Our analyses of UI recipiency rates by employment status and by work tenure (weeks 

worked prior to employment) were further restricted to a subsample of persons who were

unemployed in March of the last panel year and who had a job during the 15 months prior

to unemployment (as compared with the 27-month lookback period for the original 

sample).

Page 2 GAO-07-1147 Unemployment Insurance
worker” as an individual who earned a low wage in at least half of his or 

her most recent 6 months of employment. 

We conducted our work between June and August 2007 in accordance 

with generally accepted government auditing standards. 

On July 30, 2007, we briefed your staff on the results of our work. This 

letter formally conveys the information provided during that briefing. 

Appendix I contains the briefing slides. 

In summary, we found that the UI regular program recipiency rate 

gradually declined from the 1950s through the 1980s. Since the mid-1980s,

the recipiency rate has shown modest increase, but still remains below the 

near-50 percent rate of the 1950s. 

We found significantly lower UI rates of receipt among low-wage 

unemployed workers compared with those of higher-wage unemployed 

workers. During the period covered by our analysis, we observed that 

although low-wage workers were almost two-and-one-half times as likely 

to be out of work as higher-wage workers, they were about half as likely to 

receive UI benefits. This was true even when job tenure for both groups 

was similar: for example, among unemployed workers who had worked 

for 35 weeks or more in the year prior to their unemployment, low-wage 

workers were still about half as likely to receive UI benefits as higherwage workers. We also observed that low-wage workers were likely to be

employed in the retail trade and services sectors, the two industry sectors 

with the lowest rates of UI receipt. Furthermore, we found low-wage 

workers received UI at significantly lower rates within most industry 

sectors, and regardless of whether they were part-time or full-time. Low 

levels of UI receipt among low-wage workers may be explained by the 

circumstances and preferences of low-wage workers coupled with UI 

eligibility rules, particularly the base period for meeting the minimum 

earnings requirement for UI and reasons for separating from work. To 

determine eligibility for UI, many states consider wages earned and/or 

hours worked in the first 4 of the last 5 completed calendar quarters 

preceding the claim; thus, a worker’s most recent work history is not 

included in the eligibility determination. For low-wage workers with 

sporadic work histories, this restriction can make it more difficult to 

achieve the earning level necessary for eligibility. 

Unemployed part-time workers were significantly less likely to collect UI 

than those who were full-time. During the period covered by our analysis, 

among unemployed workers who had worked for at least 35 weeks in the 

Page 3 GAO-07-1147 Unemployment Insurance
past year, part-time workers received UI benefits at a rate of 29 percent, 

compared to 50 percent for full-time workers. Furthermore, unemployed 

part-time workers were less likely to receive UI than full-time workers 

regardless of whether they were low-wage or higher-wage. Low levels of 

UI receipt among part-time workers may be explained by many of the 

same factors that affect low-wage workers, because part-time workers 

generally have lower pay, less-skilled jobs, and less job security than fulltime workers. In addition, 32 states do not consider workers eligible for UI 

if they are only available for part-time work, according to the National 

Employment Law Project. 

We provided a draft of this report to officials at the Department of Labor

for their review. Labor generally agreed with our findings, and noted that 

this work is consistent with previous research on the topic. They provided

technical comments, which we have incorporated where appropriate. 

Unless you publicly announce its contents earlier, we plan no further 

distribution of this report until 14 days after the date of this letter. At that

time, we will send copies of this report to the Secretary of Labor and other 

interested parties. We will also provide copies to others on request. In 

addition, the report will be available at no charge on the GAO Web site at 

http://www.gao.gov. 

If you or your staff have any questions about this report, please contact me 

on (202) 512-7215. You may also reach me by e-mail at fagnonic@gao.gov. 

Contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this report. GAO staff who made 

major contributions to this report are listed in appendix II. 

Sincerely yours, 

Cynthia M. Fagnoni 

Managing Director, Education, Workforce, 

 and Income Security Issues 

Page 4 GAO-07-1147 Unemployment Insurance
Appendix I: Briefing Slides Appendix I: Briefing Slides 

Unemployment Insurance:

Low-Wage and Part-Time Workers 

Continue to Experience Low Rates of

Receipt

Briefing for Staff of

The Honorable Jim McDermott, Chair

Subcommittee on Income Security and Family Support

Committee on Ways and Means

U.S. House of Representatives

July 30, 2007

Page 5 GAO-07-1147 Unemployment Insurance
Appendix I: Briefing Slides 

Page 6 GAO-07-1147

2

Introduction

• The Unemployment Insurance (UI) program is a federal-state 

partnership designed to partially replace lost earnings of individuals

who become unemployed through no fault of their own (for “good 

cause”).

• In fiscal year 2006, the UI program covered about 130 million wage 

and salary workers and paid about $30 billion in benefits to about 7 

million workers who lost their jobs. 

Unemployment Insurance
Appendix I: Briefing Slides 

Page 7 GAO-07-1147

3

Introduction

• The UI program was established in 1935. At that time, most of the laborforce consisted of

males who were employed full-time in the manufacturing or trade sectors. Since then, the

nature of both work and unemployment has changed in fundamental ways. In recent

decades there has been a rise in:

• The percentage of low-wage jobs

• Temporary and contingent work

• The average duration of unemployment

• Women in the workforce

• Two-earner families

• In addition, there has been a recognition of the need for workers to balance their work with

family obligations, potentially affecting eligibility.

• This current briefing updates a prior GAO report that assessed UI’s role as a safety net for

low-wage workers.

1

1GAO, Unemployment Insurance: Role as Safety Net for Low-Wage Workers Is Limited, GAO-01-181 (Washington, D.C.: Dec. 29, 2000).

Unemployment Insurance
Appendix I: Briefing Slides 

Page 8 GAO-07-1147

4

Objectives

• What is the overall trend in the usage of UI? 

• How likely are low-wage workers to be unemployed and to

receive UI benefits, especially when compared with other 

workers?

• How likely are unemployed part-time workers to receive UI

benefits?

Unemployment Insurance
Appendix I: Briefing Slides 

Page 9 GAO-07-1147

5

Scope and methodology

• To determine the overall trend in the usage of UI, we analyzed national data on the UI regular 

program recipiency rate – the measure most commonly used to assess the effect of the UI

program – provided by the Department of Labor for the years 1950 to 2006, after determining that

these data were reliable for our purpose. The regular program recipiency rate effectively

measures the percentage of the unemployed who apply for UI benefits. It is calculated by

dividing the number of claims filed weekly with the state programs by the total number of

unemployed as counted in the Bureau of the Census’ Current Population Survey (CPS). The rate

includes those claims that eventually resulted in benefits as well as those claims that were

denied.

• To compare low-wage workers to other workers, and part-time workers to full-time workers, we

analyzed Survey of Income and Program Participation (SIPP) survey data for the years 1992 to

1995, 1998, and 2003,2 after ensuring that these data were reliable for our purpose. We ran 

analyses for all workers age 16 to 64,

3 using their employment status in March of each year, and

looking back at 27 months of their employment history. Our unweighted sample sizes for each

year are shown in appendix II, table 4.

2 Data for 1996,1997, and 1999-2002 were not available. 3 Sample members were age 16 or older at the start of the 27-month panel and 64 oryoungerat the end of the 27-month panel; thus they were age 18 – 64 in March of the panel year when we determined employment status and UI rates of receipt.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 10 GAO-07-1147

6

Scope and methodology (cont.)

• While SIPP data are nationally representative, the unemployment rates we estimated are 

not comparable to national unemployment rates primarily because our analysis did not

include new entrants into the labor force, as new entrants do not have a wage history.

• In our analysis of SIPP data, we define the “UI rate of receipt” as the percentage of the

unemployed who received any income from UI. This definition is not directly comparable 

to the Department of Labor’s regular program recipiency rate, which effectively measures

the percentage of the unemployed who apply for UI benefits.

• Our analysis compares UI rates of receipt for low-wage and higher-wage unemployed

workers. Many factors contribute to this difference in rates of receipt that are not

examined in this simple descriptive analysis, but which would be important for a more

comprehensive analysis.

4 For example, a more comprehensive analysis might control for

workers’ reasons for leaving work, union membership, recent work history, and other

factors when comparing recipiency for low-wage and higher-wage workers.

4 A multivariate analysis of UI use that GAOconducted in 2006, which controlled formany such factors including simulated UI eligibility, also

found that low-wage workers were less likely to receive UI benefits than higher-wage workers. GAO, Unemployment Insurance: Factors

Associated withBenefit Receipt, GAO-06-342 (Washington, D.C.:Mar. 7, 2006).

Unemployment Insurance
Appendix I: Briefing Slides 

Page 11 GAO-07-1147

7

Scope and methodology (cont.)

• We excluded people with a history of self-employment, because selfemployment is not covered by UI. 

• We excluded new entrants to the labor force, because we needed a

work history to determine whether workers were “low wage.”

• We defined “low wage” as an hourly wage which is less than that 

required for a full-time worker (40 hours per week/52 weeks per year) 

to earn the Census poverty threshold for a family of four (less than

$8.97 per hour in 2003.)

• We defined a “low-wage worker” as a person who earned a low wage 

in at least half of his or her most recent 6 months of employment.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 12 GAO-07-1147

8

Results in Brief

• Objective 1: The UI regular program recipiency rate has risen since a low

point in the mid-1980s, but is still below the rate of approximately 50 

percent in the 1950s.

• Objective 2: From 1992 to 2003,5 low-wage workers were almost two-anda-half times as likely to be out of work as higher-wage workers, but about 

half as likely to receive UI benefits. 

• Even among unemployed workers who had worked for similar periods

of time, low-wage workers were still less likely to receive UI benefits 

than higher-wage workers.

• Unemployed low-wage workers were most likely to have been

employed in the retail trade and services sectors, the two industry

sectors that had the lowest UI rates of receipt.

5 Data for 1996,1997, and 1999-2002 were not available.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 13 GAO-07-1147

9

Results in Brief (cont.)

• Objective 2 (cont.)

• Low levels of UI receipt among low-wage workers may be explained 

by the circumstances and preferences of low-wage workers (such as

intermittent employment) coupled with UI eligibility rules, particularly

the base period for meeting the minimum earnings requirement, and 

the good-cause requirements for reasons for separating from work.

• Objective 3: Unemployed workers who were part-time at their last job were 

significantly less likely to collect UI than those who were full-time. 

• Part-time workers generally have lower pay than full-time workers and

therefore face many of the same issues facing low-wage workers.

• In addition, UI eligibility rules in 32 states do not cover workers who 

are only available for part-time work,6 according to the National 

Employment Law Project (NELP).

6 In counting states that cover workers who are available only for part-time work, NELP excludes several states that have laws requiring

more than a majority of part-time work during the base period and one state where the part-time work provision sunsets in 2008.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 14 GAO-07-1147

10

Background

• The UI program was established by Title III of the Social 

Security Act in 1935.

• UI is a key component in ensuring the financial security of

America’s workforce.

• The UI program’s primary objective is to temporarily replace 

a portion of earnings for workers who become unemployed 

through no fault of their own.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 15 GAO-07-1147

11

Background (cont.)

• To receive UI benefits, an unemployed worker generally must meet the state

minimum earning requirements (a minimum amount of earnings and/or

employment) over a defined base period. In addition, workers must have become

unemployed for good cause as determined under state law, and be able and 

available to work.

• Federal law provides minimum guidelines for state programs and authorizes grants

to states for program administration.

• States design their own programs, within the guidelines of federal law, and 

determine key elements of these programs, including who is eligible to receive

state UI benefits, how much they receive, and the amount of taxes that 

employers must pay to help provide these benefits.

7

• State unemployment tax revenues are held in trust by the Secretary of the 

Treasury and are used by the states to pay for regular weekly UI benefits, 

which typically can be received for up to 26 weeks.

7 UI benefits are funded through payroll taxes levied on employers. All state UI systems are experience-rated so that employers’

contributions vary according to how much or how little their workers received unemployment benefits.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 16 GAO-07-1147

12

Background (cont.)

• During the years we examined between 1992 and 2003,

8 low-wage 

workers made up about 50 percent of the unemployed former 

workers in our sample of the experienced labor force, even though 

they were only about 30 percent of the total experienced labor

force.9 

• Previous GAO work has shown that the likelihood of receiving UI 

benefits among UI-eligible workers is lower for those with lower

annual earnings, controlling for a range of economic and 

demographic factors.

10

8 Analysis based on SIPP data. Data for 1996,1997, and 1999-2002 were not available. 9 Our calculations of unemployed former workers excluded people who did not have a job in the 27-month period before the month that

they were unemployed. Thus, all new entrants and some reentrants into the labor force were excluded 10 GAO, Unemployment Insurance: Factors Associated with Benefit Receipt, GAO-06-342 (Washington, D.C.: Mar. 7, 2006).

Unemployment Insurance
Appendix I: Briefing Slides 

Page 17 GAO-07-1147

13

From 1950 through the mid-1980s, the UI regular program recipiency

rate gradually declined, dropping to its lowest point in the early 1980s. 

Since the mid-1980s, the UI recipiency rate has shown modest increase.

Average UI Recipiency Rate since 1950

Objective 1: Overall Trend in UI Usage

Unemployment Insurance
Appendix I: Briefing Slides 

Page 18 GAO-07-1147

14

Several factors may explain the decline in UI recipiency.

• There is some evidence that the general decline in UI

recipiency since the 1950s is partly explained by the 

reduction in union employment—making workers less aware 

of benefits— and the migration of manufacturing from highbenefit states to low-benefit states—making applying for 

benefits less remunerative.

Objective 1: Overall Trend in UI Usage

Unemployment Insurance
Appendix I: Briefing Slides 

Page 19 GAO-07-1147

15

Low-wage workers were more than twice as likely to be 

unemployed, but about half as likely to receive UI benefits.

• During the years we examined between 1992 and 

2003,

11 low-wage workers were almost two and a 

half times as likely to be out of work as higherwage workers, but about half as likely to receive UI 

benefits.12

Objective 2: Low-Wage Workers

11 Data for 1996,1997, and 1999-2002 were not available. 12 In addition to the results presented here, we also ran all analyses using the SIPP for a sample of “prime age workers” (age 22 to 54), for

comparison purposes. Results were similar, although the difference in UI receipt rates between low-wage and other workers was somewhat

smaller than among workers aged 16 to 64, as was the difference between part-time and full-time workers.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 20 GAO-07-1147

16

Compared with higher-wage workers, low-wage workers were at

least twice as likely to be unemployed between 1992 and 2003.

Unemployment rate, 1992 to 2003

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 21 GAO-07-1147

17

At the same time, unemployed low-wage workers received UI 

benefits at less than half the rate of higher-wage workers in

almost every year.

UI Rate of Receipt among the Unemployed

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 22 GAO-07-1147

18

Even with similar work tenures, unemployed low-wage workers 

were still less likely to receive UI benefits than unemployed

higher-wage workers.

• Fifty-five percent of unemployed higher-wage workers who

had worked at least 35 weeks during the year collected UI.

• In comparison, 30 percent of unemployed low-wage workers

with similar work tenures collected UI.

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 23 GAO-07-1147

19

Even with similar work tenures, unemployed low-wage workers 

were still less likely to receive UI benefits than unemployed

higher-wage workers.

UI Rate of Receipt for Unemployed Low-Wage and Higher-Wage Workers, by Number of Weeks 

Worked, Combining SIPP Data for Years 1992-2003

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 24 GAO-07-1147

20

Circumstances and preferences of low-wage workers may run

counter to UI eligibility rules.

• Low levels of UI receipt among unemployed low-wage 

workers may be explained in part by the circumstances and 

preferences of low-wage workers coupled with state UI 

eligibility rules, particularly:

• the base period for meeting the minimum earnings 

requirement, and 

• reasons for separating from work.

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 25 GAO-07-1147

21

The base period for meeting the minimum earnings requirement

for UI may make eligibility difficult for some low-wage workers.

• To determine eligibility for UI, 31 states13 consider wages

earned and/or hours or weeks worked in the first 4 of the last

5 completed calendar quarters preceding the claim, according 

to the National Employment Law Project.

• Because the base period in many states excludes the 

latest calendar quarter, a worker’s most recent work

history is not used in making the eligibility determination.

• For low-wage workers with sporadic work histories this

exclusion of recent earnings may make it more difficult to

achieve the minimum earning level necessary for

eligibility.

Objective 2: Low-Wage Workers

13 Out of 51; the remainder, including the District of Columbia, have an alternative base period.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 26 GAO-07-1147

22

Many states do not recognize family obligations as good cause

for leaving employment, which may make eligibility difficult for

some low-wage workers.

• Good cause: To be eligible for UI, a person who voluntarily

leaves work must have good cause, as determined under

state law.

• For low-wage workers, particularly those without paid sick

leave, however, issues such caring for children or sick family

members may make keeping a job more challenging or result

in preferences for certain types of work.

• According to the National Employment Law Project, 35 

states14 do not recognize serious illness or disability of a 

family member as good cause for leaving employment.

Objective 2: Low-Wage Workers

14 Including the District of Columbia.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 27 GAO-07-1147

23

Low-wage workers are more likely to have worked in industries

that have low rates of UI receipt overall.

• In 2003, 63 percent of low-wage unemployed workers had 

been employed in jobs from retail trade and services, as

opposed to about one-half (48 percent) of higher-wage 

workers. 

• Compared with all other industry sectors, the retail trade and

services industries had the lowest UI rates of receipt.

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 28 GAO-07-1147

24

Sixty-three percent of low-wage unemployed workers had been 

employed in jobs from retail trade and services, as opposed to about 

one-half (48 percent) of higher-wage workers.

Industry Sector of Last Job for Unemployed Low-Wage and Higher-Wage Workers

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 29 GAO-07-1147

25

Compared with all other industry sectors, the retail trade and

services industries had the lowest UI rates of receipt.

Average UI Rate of Receipt by Industry, March 2003.

Objective 2: Low-Wage Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 30 GAO-07-1147

26

Within many industry sectors unemployed low-wage workers had 

lower rates of UI receipt than unemployed higher-wage workers.

UI Rate of Receipt by Industry of Last Job and Low-Wage / Higher-Wage Status, March 

2003.

Objective 2: Low-Wage Workers

Source: GAO analysis of SIPP data, March 2003.

Industry 

Construction and miningb

Manufacturingb

Servicesb

Retail tradeb

Transportation and utilitiesb

Public adminstrationc

Wholesale tradec

Agriculturec

Financec

Total 

Low-wage workers

(percent)

16.5

26.6

10.5

8.4

7.9

13.2

24.1

38.2

28.5

14.8

 Higher-wage workers

(percent)

52.3

52.6

31.8

32.6

41.4

48.7

51.9

27.1

43.0

40.5

Total

(percent)

43.8

42.5

23.6

16.8

32.0

39.6

44.2

34.0

37.8

29.7

aWe calculated the UI rate of receipt by dividing the number of unemployed workers who reported UI as a source of income by the number of 

workers who were unemployed.

bDifferences between low- and higher-wage workers are significant at the 99 percent confidence level.

c

Differences between low- and higher-wage workers are not statistically significant.

UI rate of receipta

Unemployment Insurance
Appendix I: Briefing Slides 

Page 31 GAO-07-1147

27

Unemployed workers who were part-time at their last job were 

significantly less likely to collect UI than unemployed workers 

who were full-time at their last job.

• Part-time workers generally have lower pay, less-skilled jobs,

and less job security than full-time workers; thus they face

many of the same issues facing low-wage workers.

• In addition, 32 states15 do not consider workers eligible for UI

if they are only available for part-time work, according to the

National Employment Law Project.

Objective 3: Part-Time Workers

15 Out of 51; the remainder, including the District of Columbia, have some coverage for workers seeking part-time employment.

Unemployment Insurance
Appendix I: Briefing Slides 

Page 32 GAO-07-1147

28

Even when workers had similar job tenures, unemployed workers 

who had been full-time at their last job were more likely to

receive UI than those who had been part-time.

UI Rate of Receipt by Part/Full-Time Status, Unemployed Workers with at Least 35 Weeks of

Employment in the Past Year

Objective 3: Part-Time Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 33 GAO-07-1147

29

Part-time, low-wage unemployed workers were the least likely to

receive UI.

UI Rate of Receipt by Wage and Part/Full-Time Status, Unemployed Workers with at Least 35

Weeks of Employment in the Past Year

Objective 3: Part-Time Workers

Unemployment Insurance
Appendix I: Briefing Slides 

Page 34 GAO-07-1147

30

Appendix Table 1: Unemployment Rates for Low-Wage and Higher

Wage Workers

Appendix Tables

Unemployment Insurance
Appendix I: Briefing Slides 

Page 35 GAO-07-1147

31

Appendix Table 2: UI Rate of Receipt among Unemployed Low-Wage

and Higher-Wage Workers

Appendix Tables

Unemployment Insurance
Appendix I: Briefing Slides 

Page 36 GAO-07-1147

32

Appendix Table 3: UI Rate of Receipt by Wage and Part-Time Status

(Workers with at least 35 weeks of employment prior to 

unemployment)

Appendix Tables

Unemployment Insurance
Appendix I: Briefing Slides 

Page 37 GAO-07-1147

33

Appendix Table 4: Unweighted Sample Sizes, by Year

Appendix Tables

Unemployment Insurance
Appendix II: 

A

GAO Contact and Staff 

cknowledgments 

Page 38 GAO-07-1147

Appendix II: GAO Contact and Staff 

Acknowledgments 

Cynthia M. Fagnoni, Managing Director, 202-512-7215 

Patrick di Battista, Assistant Director 

Rhiannon Patterson, Analyst-in-Charge 

GAO Contact 

Staff 

Acknowledgments 

Gretta L. Goodwin, Senior Economist, made significant contributions to 

this report. Shana Wallace and Douglas Sloane provided methodological

assistance, and Jessica Botsford provided legal assistance. The team also 

benefited from the expert advice and assistance of Susan Offutt, Thomas 

McCool, and Ronald Fecso. 

Unemployment Insurance
Related GAO Products Related GAO Products 

Unemployment Insurance: Factors Associated with Benefit Receipt and

Linkages with Reemployment Services for Claimants. GAO-06-484T. 

Washington, D.C.: March 15, 2006. 

Unemployment Insurance: Factors Associated with Benefit Receipt. 

GAO-06-341. Washington, D.C.: March 7, 2006. 

Unemployment Insurance: Information on Benefit Receipt. GAO-05-291. 

Washington, D.C.: March 17, 2005. 

Highlights of a GAO Forum: Workforce Challenges and Opportunities for

the 21st Century: Changing Labor Force Dynamics and the Role of 

Government Policies. GAO-04-845SP. Washington, D.C.: June 2004. 

Unemployment Insurance: Role as Safety Net for Low-Wage Workers Is 

Limited. GAO-01-181. Washington, D.C.: December 29, 2000. 

(130667) Page 39 GAO-07-1147 Unemployment Insurance
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