Unemployment Insurance By: Katie Miller Bell: 3

Created in 1935 in response to the Great Depression, when millions of people lost their jobs

What is it? Also known as UI Provides weekly unemployment insurance payments for workers who lose their job through no fault of their own 100% funded by employers who pay taxes on wages paid to employees

Two Main Objectives 1.To provide temporary and partial wage replacement to involuntarily unemployed workers who were recently employed 2.To help stabilize the economy during recessions

Eligibility You have to have lost your job through no fault of your own If you quit or lost your job because of poor performance, you are not eligible for these benefits Not eligible if you have just entered the work force and are looking for a job

What are the Benefits? Payment was generally 20% of what was made in your previous job The percentage of payment was higher during the 1930’s because so many people were jobless Today unemployment insurance payments are much lower, but the system still works the same Intended to pay only for the essentials of living until you find new employment

Who does it help? Helps bring economic stability to communities, states, businesses, and the nation by providing temporary income support for laid off workers

New Federal Unemployment Compensation Program Book written to explain the new Social Security Act to the public Communicated the principles of operations under this Act and the rationale of this program People are being laid off from their jobs and are in need of unemployment insurance so they do not die of starvation

Unemployment Rate was at its highest during the 1930’s

Unemployment Insurance was crucial during the 1930’s when it first began and is still used today