Unemployment compensation or benefit is aimed to provide workers time to find a new job without the burden of financial woes. Unemployment compensation in the United States is based on a program by both the federal and state. Each state administers a different unemployment benefit program approved by the Secretary of Labor. State and federal laws will determine who qualifies for the compensation.

A combination of federal and state taxes supports unemployment insurance. These taxes are levied upon employers. Some states provide additional unemployment benefit to disabled workers. Unemployment compensation was established in order to help workers and their families in times of involuntary unemployment.

Unemployment benefits have counter-cyclical economic effects. In a recession, people begin to lose jobs involuntarily; money is pumped into the economy through unemployment benefits to laid off workers. This helps in stabilizing the national economy of a particular state or region. Just like social security, unemployment compensation was made during the Great Depression in the 1930s. It accomplishes its mission of providing funds to help unemployed people and their families and boost the economy in times of recession. In the event that you become unemployed without your own fault, do not hesitate to apply for this benefit because this is what is it meant for. As long as you are eligible, you are entitled to claim unemployment compensation.

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