The employment records that are used by unemployment are based on what the government gets from employers, copies of forms W-2 and unemployment insurance taxes (employee and employer contributions).  When you were being paid on a 1099, there were no unemployment taxes being taken out and so unemployment never heard anything about you, or got any taxes for your account.  I'm not sure how your status for 2007-2008 affected this, but it sounds like it might have worked out the same as with the 1099:  if you weren't having unemployment taxes taken out of your income, as far as unemployment is concerned you weren't working, just like all the other self-employed people out there.