[Unemployment benefits in the United States are paid out of trust funds established by each state. These funds are funded by employer premiums. An employer's premium is determined by its past layoff/claims history and - the more people the employer has claiming unemployment over time, the higher the premiums paid. The employer pays the premium for each worker on its payroll.
On occasion, when state trust funds are depleted, the Federal government will lend money to the state to replenish the fund. However, these are loans and need to be paid back.
Although the money does not come directly from employees, economists note that it indirectly comes from the employees as the premiums paid are considered part of a company's labor costs and that company's pay these premiums by lowering the rate of pay for workers.
