How to Find Part-Time Work While on Unemployment

If you’re unemployed and receiving unemployment benefits, you may wonder if working part-time would disqualify you from receiving your benefits. Many people worry that picking up a few hours could jeopardize their benefits, so you’re not alone in wondering how the rules work.

The good news is that, in most states, you can work part-time while on unemployment—in certain circumstances. In this guide, we’ll answer your questions on how to collect unemployment while working part-time and how to avoid common mistakes.

Why Work Part-Time?

Losing your job is considered one of the most stressful life events you can go through. You may be grieving your professional identity, your sense of purpose, and your financial security at the same time. Part-time work can help with all of this.

The most straightforward benefit to finding a part-time job is a temporary boost in income while you search for a full-time job and continue to receive partial unemployment benefits. The cost of living is climbing right now, and supplementing your unemployment with part-time income can help you cover living expenses like rent and utilities during this transitional period.

A part-time job can help structure your days and create routine while you search for full-time work. You’ll also get the benefit of connecting with new people, which could even help you network to land your next full-time role. Part-time work can even help you avoid gaps on your resume during your unemployment.

Can I Work Part-Time and Still Get Benefits?

In most states, you can work part-time while collecting unemployment, also known as partial unemployment. Partial unemployment offers financial support to help you cover the cost of living while you search for full-time employment. When working part-time, your benefits may go down, but you likely won’t completely lose them.

In 2025, according to the Bureau of Labor Statistics, 5.3 million Americans were employed part-time due to economic reasons such as reduced hours and inability to find full-time jobs.

Because unemployment is handled at the state level, each state decides how much you can earn before your weekly benefit is reduced. For example, some states reduce your benefits based on your earnings, while others reduce them based on hours worked.

No matter where you live, you must report every hour worked and all gross earnings (your pay before taxes)—even if you only worked two hours. If you don’t report your part-time earnings, you not only risk losing your benefits, but committing fraud.

Learn more about unemployment benefits in your state by visiting CareerOneStop online.

How Do I Receive Unemployment Benefits?

You may qualify for unemployment if you lost your job due to layoffs, had your hours significantly reduced, or are on temporary furlough. If you qualify for unemployment and haven’t yet filed for benefits, you may be leaving money on the table. You can’t get retroactively paid from past weeks of unemployment, but the sooner you apply, the sooner you can start receiving benefits.

To get started, follow our guide on how to file for unemployment benefits.

Why Do The Rules Vary So Much?

Unemployment—both the rules to qualify and the benefits—can look very different depending on where you live. This is because unemployment insurance is a joint federal-state program. Although federal law sets broad rules for unemployment, each state sets its own rules for:

• Who qualifies

• How long you can receive benefits

• How much you can earn before benefits drop

• How part-time work affects benefits

• How partial unemployment is calculated

Because states also update their rules from time to time, it’s always smart to check your state’s unemployment website for the most current details.

How Does It Impact My Taxes?

Unemployment benefits are taxable income. That means you’ll need to report your unemployment payments in your income when you file your taxes. Income from your part-time job also has to be reported, just like normal wages.

States generally do not withhold taxes on unemployment benefits, meaning that you could owe taxes later. Consider having taxes taken out of your unemployment benefits or set aside some money for taxes now so you’re not surprised when tax season rolls around.

When it’s time to file your taxes, you should receive a Form 1099-G from the government showing exactly how much unemployment income you received for the year. 1099-G is typically used to report unemployment compensation and state or local income tax refunds you received. Make sure to double-check that the amount on the form is the amount you actually received—unemployment benefits fraud does happen, and if it happens to you, you’ll want to report it as soon as possible.

What Is Considered Income While on Unemployment?

While you receive unemployment benefits, you must continue to report any earnings you receive. Earnings from part-time jobs, freelance work, gig work, tips, and self-employment are all considered income. Most states require you to report income in the week you earned it, not the week you were paid.

Where Can I Find a Part-Time Job While On Unemployment?

Part-time employees work fewer than 40 hours a week, but the exact amount depends on the employer. A few examples of common part-time roles:

• Receptionist

• Barista

• Bank teller

• Customer Service Representative

• Delivery Driver

• Cashier

Many part-time roles are available remotely, allowing you additional flexibility. This is especially valuable if you need time for interviews or job applications.

Not sure where to look? You can start with:

• Online job boards like Indeed, LinkedIn, and ZipRecruiter

• State workforce agencies, which often list local openings

• Temp agencies, which frequently place people in short-term jobs

• Gig platforms like food delivery or online freelancing

States generally allow you to work part-time so long as you stay under your weekly earnings limit.

Getting Back On Your Feet

Looking for part-time work while job searching full-time can feel overwhelming, but part-time work can be a helpful way to bring in extra income, build structure into your days, and even open doors to new full-time opportunities. As long as you report your hours and earnings accurately and follow your state’s guidelines, working part-time can be a positive step toward full-time employment.