The only thing with being on unemployment is that you have to be unemployed. The question is about being an FO for the first 5 years at a regional.

At least with NY, you get taxed at the federal level. And you have to report to the Dept. of Labor on a regular basis with a log of activities of your active job search. If they don't see you actively looking, or turn down a job that pays comparably, they can terminate your benefits.