Final answer:
People may wait a long time for unemployment checks due to state variations in administering funds, processing delays, and increased claim volumes, especially during economic downturns.
Step-by-step explanation:
The unemployment checks distribution may experience delays for several reasons. Firstly, the unemployment insurance system is funded by a federal tax collected from employers, and while this tax is mandatory on the first $7,000 in wages, states can (and 41 states do) opt to tax a higher wage amount. The collected taxes go into a state fund used to pay out unemployment benefits.
Each state has the autonomy to decide the duration for which they will pay benefits, but typically, unemployment benefits are limited to 26 weeks, with possible extensions during periods of high unemployment. The benefits amount aims to be about one-third of the person's previous wage, although this can vary across states. The system's design means that the duration and generosity of benefits can affect the incentives surrounding unemployment — less generous benefits or assistance in job searching and retraining can encourage faster return to work. When systems are overwhelmed, especially during economic downturns, this can lead to long waits for unemployment checks due to processing delays and increased claims.