Due to the umemployment rate of some American citizens, the federal and state system decided to support jobless people in the country. From this avenue Martins Library Team Admin decided write this article which adapted from the book
"Outline of the U.S. Economy" by Conte and Carr and has been adapted
with permission from the U.S. Department of State.
Unlike
Social Security, unemployment insurance, also established by the Social
Security Act of 1935, is organized as a federal-state system and provides basic
income support for unemployed workers. Wage-earners who are laid off or
otherwise involuntarily become unemployed (for reasons other than misconduct)
receive a partial replacement of their pay for specified periods.
Each
state operates its own program but must follow certain federal rules. The
amount and duration of the weekly unemployment benefits are based on a worker's
prior wages and length of employment. Employers pay taxes into a special fund
based on the unemployment and benefits-payment experience of their own work
force. The federal government also assesses an unemployment insurance tax of
its own on employers. States hope that surplus funds built up during prosperous
times can carry them through economic downturns, but they can borrow from the
federal government or boost tax rates if their funds run low.
States must
lengthen the duration of benefits when unemployment rises and remains above a
set "trigger" level. The federal government may also permit a further
extension of the benefits payment period when unemployment climbs during a
recession, paying for the extension out of general federal revenues or levying
a special tax on employers. Whether to extend jobless-pay benefits frequently
becomes a political issue since any extension boosts federal spending and may
lead to tax increases.
Outline
of the U.S. Economy Navigation
Outline of the U.S. Economy
Chapter 9 - Labor in America: The Worker's
Role
Outline of the U.S. Economy - All Chapters
Key Economic
Concepts
Inflation
Elasticity
Interest Rates
More Key
Economic Concepts
Exchange Rates
Monetary Policy
Business Cycles
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Thanks for giving this article some precious time, I hope it was able to impact some level of information to citizens in the U.S.