Even in 1929, which is the year of prosperity in the United States, there were still 1,800,000 unemployed workers. This time, relief seemed to be the best measures to care for the unemployed and their families as well. At the time of the great depression, the US government spent about $7,000,000,000 on work relief programs. Furthermore, the State and local governments both spent $1, 5000,000,000. Unemployment benefits were beyond the means of most local governments and were even the major reason for the present deficits.

The first unemployment bill compensation was introduced in the in the State legislature in 1916. In 1920, 22 bills were passed in the five legislatures. The first unemployment compensation law was passed in 1932. Unemployment benefits are a more businesslike type of haphazard relief due to its specific amount, systematic paid out system and guaranteed in advance.

The benefits help minimize the fear of unemployment hanging like a cloud over most workers. With unemployment benefits, unemployment fear could be minimized and personal well being will be achieved. The most effective machinery in handling unemployed workers is paralleled by a comprehensive knowledge of the nature and scope of the problem. Unemployment benefits could produce the knowledge of unemployment and brings the power to tackle the issue in a more constructive way.

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