Unemployment compensation is intended to provide a worker time to look for a new job without financial distress. In the US, unemployment compensation is based on a program by the federal and state. Every state administers a distinct unemployment insurance program which should be approved by the Secretary of Labor. Federal and state laws determine who are eligible for this compensation.

A combination of state and federal taxes supports unemployment compensations. These are taxes levied upon employers. There are some states that provide additional unemployment compensation to disabled workers. The federal-state unemployment compensation was established to help people in periods of involuntary unemployment.

Unemployment compensation has a counter-cyclical economic effect. During recession, people star to lose their jobs involuntarily, money is pumped into the economy by unemployment compensation to workers who were laid off. This helps to stabilize the national economy of a certain region or state. The same as social security, unemployment compensation was created during the Great Depression in the 30’s. It has become accepted and accomplishes its mission in providing income to help unemployed workers and their families and also provide boost to the economy during a recession. When you become unemployed through no fault of yours, do not hesitate to apply for unemployment compensation in your state since that it what it is created for. You are entitled to claim this compensation as long as you are eligible.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Comment now!
















Trackbacks