According to Federal law (FUTA, 1935) each state is responsible for providing financing for the UI benefit payments made to claimants within that state, although the benefits are not required to be of any minimum amount or duration. This structure, many analysts believe, provides the perfect conditions for a competition between states which deteriorates the program into a so called “Race-to-the-bottom”:
The total amount of state program UI benefits paid to eligible claimants (ETA 5159) divided by the average monthly number of unemployed for the year (CPS). Five highest states: CT, HI, IA, MA, NJ. Five lowest states:
