Unemployment benefit is money that the government gives to employable people who are unemployed. In most jurisdictions, people who receive unemployment benefit are jobless under now fault of their own. The money is to help them manage financially while their search for a job.
If you are jobless and seeking work, you need to register if you want to receive unemployment benefit. In some countries, you may need to prove that you are looking for a job.
Some jurisdictions may also call this government welfare program unemployment compensation or unemployment insurance. In the United Kingdom, it is common to use the term ‘the dole,’ as in “I have been on the dole since I lost my job six months ago.”
According to the Cambridge Dictionary, unemployment benefit is:
“Money that the government pays to unemployed people who are looking for a job.”
In some countries, labor unions distribute a significant proportion of unemployment benefits. They do this under the Ghent System arrangement. Sweden, Iceland, Finland and Denmark, for example, use the Ghent system. Belgium uses a hybrid Ghent system.
Unemployment benefit – United States
There are fifty state unemployment insurance programs in the US. There also separate programs in the US Virgin Islands, Puerto Rico, and the District of Columbia.
How much people receive varies considerably. For example, in Massachusetts, an unemployed person may receive $783 per week. In Mississippi, on the other hand, the amount may be as low as $235 per week.
State governent usually pays out unemployment benefit to workers whose unemployed status is not their fault. The money comes mainly from state and federal payrol taxes that employers pay.
People who became unemployed and did not lose their jobs because of misconduct are usually eligible. Those who lost their jobs because of misconduct are usually not eligible. Eligibility varies slightly from state to state.
According to Wikipedia:
“In every state, employees who quit their job without ‘good cause’ are not eligible for unemployment benefits, but the definition of good cause varies by state.”
“In some states, being fired for misconduct permanently bars the employee from receiving unemployment benefits, while in others it only disqualifies the employee for a short period.”
Unemployed people are usually eligible for financial help for six months. However, during economic downturns, this period may be longer.
During the Great Recession, for example, people were eligible for unemployed benefit for up to seventy-three weeks.
United Kingdom
The UK government calls unemployment benefits JSA. JSA stands for JobSeeker’s Allowance. The amount chances each year.
How much you receive depends on you personal circumstances. For example, a person with a spouse who does not work and five children will receive considerably more than a single person with no dependents.
In 2018, single people aged less than 25 years receive £57.90 per week, while those aged 25+ get £73.10 per week. This is the minimum amount.
There is also contribution-based JSA, which is higher than the standard JSA. After six months, the unemployed person just receives the standard JSA.
There is also financial help to cover the cost of housing for eligible people.
First unemployment benefit program
The first ever unemployment benefit scheme was in 1911 in the United Kingdom. Prime Minister H. H. Asquith, introduced the National Insurance Bill which became an Act in 1911.
The measure was in response to the growing popularity of the Labour party among the country’s workers. Asquith was leader of the Liberal Party.