Unemployment Compensation
Unemployment Compensation
Unemployment Compensation is a program introduced by the government in almost all the states of the United States in order to provide temporary income to all those people who are currently unemployed or terminated without any fault or mistake of their own for a certain specific period until they are able to find a new job.
Each state looks after it’ program and is responsible to finance the programs in their state. The money paid as unemployment compensation is covered from the taxes that the employers pay. Unemployment Compensation is meant to provide an unemployed worker some time to be able to secure a new job. Unemployment Compensation was started in 1935 as a result of the social security act and is overseen by the U.S. Department of Labor. The department decides the criteria for a person’s eligibility to get the benefits of unemployment compensation and decides if a person applying for the benefits is eligible. There is no deduction ever made of the money being paid as the unemployment compensation from the worker’s salary. Unemployment compensation helps to a great extent in lessening the mental and physical burden of unemployment for a worker. It also help the unemployed worker maintain his purchasing control and hence making him unreliable on anyone and preventing the unemployment to spread.
The Unemployment compensation program helps in bringing stability to people, communities, districts, states and the entire nation by providing momentary financial support for the unemployed people and hence mitigate impact of the economic irregularities
