Hochul Touts New York Raising Maximum Weekly Unemployment Benefit by 72%

New York State will soon deliver a substantial financial boost to jobless residents, announcing the largest increase in unemployment benefits in years. Beginning with payments scheduled for next week, the maximum weekly unemployment insurance benefit will climb from $504 to $869, which is a 72% jump.

The size of each individual’s benefit continues to be calculated based on earnings during a defined base period. Still, state officials said the dramatic increase will significantly raise the ceiling for unemployed workers who qualify.

State Labor Commissioner Roberta Reardon called the move a major milestone in protecting working families during uncertain times.

“This historic increase will help more people make ends meet when they need it most and put money directly into the hands of those out of work through no fault of their own,” Reardon said.

According to estimates from the state Department of Labor, about 27% of claimants will now receive the new maximum benefit while another 28% will see smaller increases in their weekly checks as a result of the change.

The long-awaited increase was included in this year’s state budget. For years, the maximum weekly benefit had been locked at $504, a figure that had not been updated since 2019. The pandemic dramatically exposed weaknesses in the state’s unemployment insurance system leading to unprecedented claims that overwhelmed the state’s trust fund and forced New York to borrow billions of dollars from the federal government.

Now that the state has paid off that debt, leaders said they were able to raise the maximum benefit and strengthen the long-term stability of the system.

The new $869 maximum puts New York ahead of several neighboring states, including Vermont, Connecticut, and Pennsylvania. However, it still falls short of Massachusetts’ $1,105 weekly cap and New Jersey’s $875 benefit.

State officials stressed that the new benefit will now be indexed to half of New York’s average weekly wage, meaning it will automatically rise in the future as wages increase.

A spokesperson for Governor Kathy Hochul emphasized that the policy change was designed not only to support workers but also to "strengthen the trust fund over time and help maintain affordable tax rates for New York’s employers in the long term."

Hochul underscored the timing of the increase, pointing to the growing challenges that families face as living expenses rise.

“Up until October 6th, that family could only look forward to $504 per week to support the family - that’s not going to pay those bills. It’s not going to add up,” Hochul said. “Utilities are going up, prescription costs are going up, health care is going up, everything is going up.”

As of the week of September 27, about 5,950 workers in Erie and Niagara counties were actively receiving unemployment benefits.

Hochul Touts New York Raising Maximum Weekly Unemployment Benefit by 72%