Yes, you can receive unemployment benefits while working part-time or in a reduced-capacity job, depending on your state's rules and how much you earn. Most unemployment systems allow partial unemployment benefits if your reduced work hours or lower wages fall below a certain threshold. When you file for unemployment, you report your current employment status and earnings. The state calculates a weekly benefit amount and may reduce it based on your work income—typically dollar-for-dollar reduction or using a formula that allows you to earn a portion without losing benefits. Full-time employment at regular wages usually disqualifies you from benefits, as unemployment is designed for those who have lost substantial work or income. The specific rules vary significantly by state: some states use a dollar-offset method (you lose a set amount in benefits for each dollar earned), while others allow you to work a certain number of hours without penalty. Some states offer 'partial unemployment' programs explicitly for people whose hours have been cut. You must report all work and income honestly when applying and certifying your weekly claims—misrepresenting employment status is fraud and can result in overpayment demands, penalties, and criminal charges. Before applying, check your state's unemployment insurance website for specific income limits and calculation methods, as these affect whether you qualify and how much you'll receive.