The article explores how different skill levels affect the design of optimal unemployment insurance. It uses a model with workers of varying skills and firms offering wages based on skill level and job match quality. Workers face the risk of job loss and receive job offers during unemployment. The study shows that under the best contract, benefits decrease during unemployment, and long unemployment leads to lower future benefits. High-skilled workers tend to have shorter unemployment and higher future productivity growth. Unemployment benefits are influenced by reported skills, and workers are penalized for taking jobs below their skill level.