75% of Unemployed Skip Benefits as 120,000 Tech Layoffs Fuel AI Job Fears
Updated
Updated · Fortune · Jun 14
75% of Unemployed Skip Benefits as 120,000 Tech Layoffs Fuel AI Job Fears
3 articles · Updated · Fortune · Jun 14
Summary
Nearly 75% of unemployed Americans did not apply for unemployment insurance in 2022, and experts told Fortune that pattern still broadly holds despite AI-driven layoff anxiety.
55% of nonapplicants said they thought they were ineligible, while 17% expected to find work quickly; only about 55% of applicants ultimately receive benefits.
200,000 to 250,000 new claims have held steady weekly even with unemployment at 4.3% for three straight months, suggesting many displaced workers are bypassing the safety net.
State-by-state rules, employer challenges and weak labor-union support all deter claims; union members are twice as likely to apply, while unionization fell to 9.9% in 2024.
The strain could worsen as nearly 120,000 tech workers have been laid off this year and experts warn the New Deal-era system—now often replacing just 30% of wages—is ill prepared for broader AI disruption.