Can You Get Unemployment If You’re Laid Off? Here’s What You Need to Know

Whether you saw it coming or felt it came out of nowhere, layoffs are tough to navigate. Understandably, your first thought will likely be about how you’re going to stay afloat financially. Unemployment benefits are the best route to go down if you don’t think you’ll have another job lined up quickly. So, can you get unemployment if you’re laid off?

Typically, the answer is yes. We’ll talk about how to find out if you qualify, how to apply and how to manage your finances as you move forward. 

Can You Get Unemployment if You’re Laid Off? Here’s How It Works

Unemployment benefits are available to you thanks to unemployment insurance, which is managed on a state level. There is no federal unemployment program. That means two factors are very important when it comes to unemployment benefits: the state you live in, and how and why you left your job. Eligibility rules are set by state, so whether or not you qualify will depend on where you live. Also, whether you were fired, quit or laid off can change your eligibility. If you were fired or were laid off, you likely qualify. If you quit, then probably not, but it depends. 

There are other requirements that go beyond that, but we’ll get into those later. Here is a resource that allows you to select your state and see its unemployment rules. 

How to Apply for Unemployment Benefits Step-by-Step

You’ll most likely apply online through your state’s unemployment website, but some states have phone numbers you can call. Here is good information to have on hand hand when you do apply: 

• Your Social Security number
• Recent work history and income, at least the last two years
• Details on why you’re no longer employed
• Any information about severance pay or retirement income
• Banking information for direct deposit

It is crucial to apply as soon as possible. If you run into any issues or delays, that’s just more time you go without consistent income. And the benefits are not retroactive. So you don’t get payments based on your last day of work, just once you successfully file. 

What Makes You Eligible (or Ineligible) for Unemployment?

Most states describe unemployment benefits as temporary assistance for people who are out of work through no fault of their own. That means these things could disqualify you:

• You quit voluntarily
• You were fired for misconduct 
• You’re not able to work, such as having a medical issue without approved medical leave (though several states have exceptions for this)

These are the key factors that will likely make you eligible for benefits:

• You lost your job due to “no fault of your own.” That means if you quit you likely aren’t eligible. If you quit for a “good cause” like unsafe working conditions or harassment, you could still qualify. But this also varies by state.
• You earned enough money during your covered employment. 
• To continue receiving benefits, most states require you to be actively searching for a new job. You may even have to report on your progress weekly. 

Most states have similar requirements, however, you still still apply even if you aren’t sure you qualify. Some aspects, like the good cause, are evaluated differently. 

How Much Money Will You Get — and For How Long?

How much your benefit will be depends, once again, on your state as well as your earning history. For example, to receive benefits in Virginia, “you must have earned at least $3,000 in your two highest paying quarters combined” during your base period. The maximum weekly benefit is $378 and the minimum is $60, and the benefit duration varies from 12 to 26 weeks. 

However, in a state with beefier benefits like Massachusetts, you’ll get up to 50% of your weekly wage up to the maximum benefit of $1,051.

Go here to find the rules specific to your state. 

Financial Tips After Job Loss

Losing your full-time job also may mean losing your health insurance. If that’s the case, you have 60 days from when you lost your job to enroll in a new health insurance plan. Look into COBRA, which enables you to continue your previous employer’s insurance plan for a set period. You could also look into getting on your spouse or partner’s health insurance plan, or explore the Health Insurance Marketplace to find plans. Low-income individuals and families can also look into Medicaid and the Children’s Health Insurance Program.

If you don’t already have a budget, now is a great time to lay one out. Especially now that you’re working with less money each week. If you’re not sure where to start, we like budgeting apps like Cleo, Rocket Money and YNAB. 

You also can reduce expenses by: 

• Canceling or pausing non-essential subscriptions (streaming, gym memberships).
• Using a balance transfer card to get a break on interest payments. Check out our list of the best balance transfer cards.
• Negotiating bills (utilities, phone, internet) for lower rates.
• Looking for ways to save on auto insurance using The Penny Hoarder Auto Insurance Tool.

You can also look into side hustles or temporary work to bring in some income. This could include freelancing, gig work, tutoring and part-time jobs. Just make sure you still have enough time to search for a new job, which is likely a requirement for getting unemployment checks. To help you find decent side hustle income, we rounded up some of our favorites here. We also curated a whole list of apps that can help you make $100 a day.

Extra Resources to Help You Stay Afloat

There are other avenues to help with living costs as you navigate unemployment. Here’s information on how to apply for SNAP, also known as food stamps. You can also visit local food pantries, and many don’t require proof of income level. The Low-Income Home Energy Assistance Program offsets the cost of energy bills. The United Way 211 program also helps those who are struggling with bills. 

Focus on Stability First, Then the Job Search

Dealing with getting laid off is a huge mental burden. Acting quickly to secure benefits is the best way to keep yourself afloat financially. However, it’s also important to focus on your mental wellbeing. Take a breath, make a plan and take it one step at a time. The whole reason unemployment benefits exist is to help people in your situation, and they are benefits that you have earned as a worker. Secure some income, polish your resume and start job hunting.