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What Happens When Unemployment Runs Out? – Let’s Find Out
What happens when unemployment runs out? – The first thing that you will do is check the eligibility for extended benefits. There are various other things that you can do to receive unemployment benefits if you feel that receiving benefits is coming to an end. If you lost your job due to a layoff or any other reasons, you can receive unemployment benefits until you are able to find a new job for you.
In this article, you will learn about what happens when unemployment benefits run out, and you are towards the end of the time frame (26 weeks for most states). We will also give you details regarding how unemployment benefits work. Finally, we will share with you solutions on what to do if your unemployment benefits are coming to an end. Hence, to learn more, read on through to the end of the article.
What Are Unemployment Benefits/ Compensation?
According to the Wall Street Mojo,
“Unemployment compensation is the financial assistance that the states offer to individuals who suddenly lose their jobs due to layoffs or other crises. It attempts to ensure the unemployed workers and staff members have a source of income until they get another job to earn their living.”
The state pays unemployment benefits to those unemployed workers who lost their jobs due to layoffs or retrenchment. This helps those workers by acting as a source of income until these workers get another job. However, not everyone is eligible to get unemployment compensation.
To receive unemployment benefits/ compensation, you will need to work for a certain stipulated period. Furthermore, you will also need to prove that you are actively looking for jobs. You will also need to prove that you lost the job and this job loss was not your fault. Either you are laid off, or the business is closed.
The unemployment compensation comes to employees in the form of unemployment checks or a direct deposit. In most cases, unemployed individuals receive unemployment benefits for 26 weeks. The benefits provide partial income replacement for a defined length of time or until the worker finds employment (whichever is first).
What Happens When Unemployment Runs Out?
It is not easy to look at your unemployment benefits running out and you not being able to get another job after the layoff. However, in many cases, you can apply for an extension of benefits.
According to CNBC,
“You must exhaust your state-provided benefits before you can apply for a federal extension of aid, and these federal enhancements to unemployment insurance are set to expire at the end of December 2020 unless Congress acts to extend them through another relief package. If you don’t use up the full amount of federal aid before the end of the year, and relief isn’t extended in any way, it does not roll over into 2021.”
You will need to log in to your account on your state’s Department of Labor website. Here, you will need to recertify your claim every week. To do that, you will need to answer various questions on the website. If you have got a job or called back to work, you will need to inform your state’s labor department immediately.
What To Do When Unemployment Runs Out?
There are various additional benefits available for you. However, it depends on your situation as well as your state. Here are some of the things that you can do if your unemployment benefits run out:
1. Check Whether You Are Eligible For Extended Benefits
According to Indeed.com,
“The first thing you can try if your benefits run out soon is to check with your state’s unemployment office to see if there are additional benefits for which you may be eligible. In some cases, states can extend their unemployment assistance by 13 weeks for employees whose benefits ran out. You may be eligible for up to 20 additional weeks of unemployment benefits.”
In most cases, you will need not apply for extended benefits, as they will automatically pay you. However, if your unemployment benefits have come to an end, you must still contact your state’s labor department and inform them of the situation.
2. Start To Evaluate Your Budget
You will need to evaluate your budget before your unemployment benefits run out. You will need to eliminate all your spendings that fall in the category of non-essential. You must also consider saving more in case you are faced with a situation where you do not get extended unemployment benefits.
3. Search For A Job
You might be already doing this. However, you must also consider looking for jobs outside your radar. There is no shame in that. Apply for different roles in different organizations. This will help you to land a job fast, which is your ultimate need at the moment.
4. Contact Non-Profit Organizations
There are many non-profit organizations that are willing to help people who are in a situation to lose their jobs. Some agencies will also help you to get employment by providing you with references and training. Some state agencies also offer temporary assistance to families and children.
5. Ask For Loan
Even if you are unemployed, you are still eligible for a loan. You will need to do research to find out which loan options are applicable to you. Even a small loan can help you a lot if you are short of unemployment benefits.
Final Thoughts
What happens when unemployment runs out? – Hope you have found a helpful answer to this question. To avoid problems and situations where you are out of money, consider following the steps mentioned above in this article. However, you must try hard to get another job as fast as possible since it is hard to get unemployment extensions a second time.
If you are not getting a job in a career path of your choice, try to get in another path. There is no shame in doing so if your unemployment benefits are running out. Do you have any more recommendations on what to do when unemployment benefits run out? Share your thoughts with us in the comments section below.
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