Unemployees Forum

 Unemployees Definition.
Unemployment is a situation characterized by the existence of those able
persons who are willing to work but no work to . Unemployment 15 3
universal feature of capitalist societies. Unemployment does not mean,
'no employment. It means 'lack of employment. Unemployment may be
defined as state of affairs in a country where there are large number of
able bodied persons of working age who are willing to work but cannot
find work at the current rate of wage.
A strong youth movement in the country that each and every student
should take a vow to begin this exercise courageously within the
family-Former President Dr.A.P.J. Abdul Kalam.
 Educated system in india
The Current Situation in the Indian Education System
India has around 1.5 million schools in which 260 million students are
enrolled. Further, the country has around 35,539 colleges under 751
universities. Hence it can be easily said that one of the biggest and most
advanced frameworks of education is present in India.

 Data Reports on unemployment.

There are three sources of data on unemployment: Reports of Census of
India, National Sample Survey Organisation's Reports of Employment and
Unemployment Situation and Directorate General of Employment and
Training Data of Registration with Employment Exchanges.

 Reasons For unemployment in india.

What are the Reasons for Unemployment in India? Reasons include a
growing population, lack of quality education and skill development,
inadequate job opportunities, slow economic growth, and insufficient
investment in certain sectors.
The 4 main reasons for unemployment
There are many reasons for unemployment. These include recessions,
depressions, technological improvements, job outsourcing, and voluntarily
leaving one job to find another.

 Unemployees Forum Agenda :Agenda: We Skimmer To

Curtail Unemployment In India.
 Goverment Needs To Do For Unemployees .
To Establish a Libray In Every Municipality And Grama Panchayat.
Advance Skill Centers Should Establish
1. Employment Calander Should Be Folled By All States.
2. a Saprate Laws On Recuriment Exam Paper Leakages
3. Where Did Group 1 Paper Leakage Victims Gone?
4. Employment For Locals Is The Best To Genrate Employment
5. Employment Survey For List Of Employees In Private Companies
6. Sports Priority Education , Sports Authorithy Should Welly Equipped With
Advance Training
RGSKY (Unemployment Allowance Scheme)

The Corporation introduced Unemployment Allowance Scheme (Rajiv Gandhi

Shramik Kalyan Yojna) w.e.f. 01.04.05, in pursuance of powers conferred U/s. 19 of
the E.S.I. Act, 1948.

Under the Scheme, an Insured Person/Insured Woman going out of employment after
being insured three or more years due to closure of the Factory/Establishment,
involuntary retrenchment or permanent invalidity, are entitled to :

Unemployment Allowance equal to 50% of the wage for a maximum period of two
years.

Medical care for self and family from ESI Hospitals/ Dispensaries during the period
IP receives unemployment allowances.

Vocational training provided for upgrading skills- Expenditure on fee/ travelling

allowance borne by ESIC

 What is unemployment insurance in India?

 RGSKY is the one and only traditional unemployment insurance policy in
India. In order to get the benefits of the RGSKY scheme, a person must
be covered by the ESI Act before employment loss. The policy provides
an allowance of 50% of the wage till you get your next job for a maximum
of two years..
 For many decades now, unemployment has been one of the critical issues to
deal with. It not only affects the GDP and economy of a country, but it hinders
growth by affecting the societal fabric of society.


 The pandemic has impacted industries on a large scale, affecting the profitability
of companies and the employment of individuals. According to Wikipedia: In the
worldwide unemployment index, India stands at 136th position with a 7.9%
unemployment rate as of Dec 2021.

 The aftermath of unemployment has plagued societies in the past. Therefore, the
need of the hour is to solve this problem. The ideal solution is to produce as many
jobs as possible, and it will eventually help in battling the problem. However, the
desired solution is going to take a lot of time. Until then, the important thing is to
focus on alleviating the distress caused by unemployment.

 The fastest way out is government-funded financial schemes and programs
providing aid to those who lost their employment because of extraneous factors.
Unemployment insurance is a prime example of policies that can help the
unemployed.


 What is Unemployment Insurance?

 It provides benefits if the insured has lost their job for not any fault of theirs.
Unemployment insurance benefits are only available for a limited period and are
allocated solely by the government.
 Does it Exist in India? In India, there are no specific insurances labelled as
unemployment insurance. However, a few schemes and policies are in effect
under the auspices of the central government. These policies provide some
benefits to the unemployed. Still, hardly any of the employees are aware of it.
Read on to know more about the existing unemployment benefit policies.
 In independent India, for the employment protections of the workers, the
Employee State Insurance or ESI Act was passed in 1948. Currently, ESI has
been running two different unemployment benefits policies, Rajiv Gandhi
Shramik Kalyan Yojana (RGSKY) started in 2005, and Atal Beemti Vyakti
Kalyan Yojna (ABVKY) started in 2018.

1. Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

With an aim to help the citizens during an unfortunate job loss, RGSKY got added to
Employment State Insurance Corporation ESIC in 2005. RGSKY is the one and only
traditional unemployment insurance policy in India. In order to get the benefits of
the RGSKY scheme, a person must be covered by the ESI Act before employment
loss.

The policy provides an allowance of 50% of the wage till you get your next job for a
maximum of two years. The key thing to note here is that to get these benefits, the
insured person must contribute under the ESI Scheme for at least five years before the
loss of employment.

2. Atal Beemit Vyakti Kalyan Yojna (ABVKY)

This policy was added to ESIC in 2018 to provide financial aid to the employees of
the organised sector in case they lose their jobs. All employees covered under the
ESI act are granted assistance for a maximum of 24 months (about 2 years) or until
they find new jobs. Earlier, to get benefits under this scheme, one had to apply within
90 days (about 3 months) of employment loss. However, seeing the volatilities of
all the jobs, it has been reduced to 30 days (about 4 and a half weeks).

In order to avail of ESI ABVKY benefits, the insured person must be in insured
employment for a minimum of two years immediately before their unemployment.
They must have contributed for at least 78 days (about 2 and a half months) in
the contribution period immediately preceding their unemployment. Also, they
must contribute for at least 78 days (about 2 and a half months) in one of the
remaining three contribution periods in the two years before
unemployment.Nowadays, jobs are more uncertain than ever. Therefore, in case of
job loss, it becomes essential to have another source of income till you get your new
work. Hence, enlighten yourself with the existing unemployment insurance to avoid
any financial emergency. Also, for detailed information related to these schemes and
policies, please visit ESIC's official website.

Unemployment benefits
Unemployment benefits, also called unemployment insurance, unemployment
payment, unemployment compensation, or simply unemployment, are payments
made by governmental bodies to unemployed people. Depending on the country
and the status of the person, those sums may be small, covering only basic needs, or
may compensate the lost time proportionally to the previous earned salary.
Unemployment benefits are generally given only to those registering as becoming
unemployed through no fault of their own, and often on conditions ensuring that
they seek work.
In British English, unemployment benefits are also colloquially referred to as
"the dole" receiving benefits is informally called
History

Leaflet promoting the National Insurance Act 1911

The first modern unemployment benefit scheme was introduced in the United
Kingdom with the National Insurance Act 1911, under the Liberal
Party government of H. H. Asquith. The popular measures were introduced to
stave off poverty inflicted through unemployment, though they also gave the Liberal
Party the added benefit of combatting the Labour Party's increasing influence
among the country's working-class population. The Act gave the British working
classes a contributory system of insurance against illness and unemployment. It only
applied to wage earners, however, and their families and the unwaged had to rely on
other sources of support, if any. Key figures in the
implementation of the Act included Robert Laurie Morant and William Braithwaite.
By the time of its implementation, the benefits were criticized by communist parties,
who saw such insurance as a means to prevent workers from starting a revolution,
while employers and tories sometimes saw it as a "necessary evil".
The scheme was based on actuarial principles and was funded by fixed amounts
from workers, employers, and taxpayers. It was restricted to particular industries,
particularly more volatile ones like shipbuilding, and did not make provision for any
dependants. After one week of unemployment, a worker was eligible to receive
seven shillings per week for up to 15 weeks in a year. By 1913, 2.3 million were
insured under the unemployment benefit program.
Expansion and spread
The Unemployment Insurance Act 1920 created the dole system of payments for
unemployed workers in the United Kingdom.The dole system provided 39 weeks of
unemployment benefits to over 11 million workers—practically the entire civilian
working population except domestic service, farmworkers, railroad men, and civil
servants.
Unemployment benefits were introduced in Germany in 1927, and in most European
countries in the period after the Second World War with the expansion of
the welfare state. Unemployment insurance in the United States originated
in Wisconsin in 1932.[8] Through the Social Security Act of 1935, the federal
government of the United States effectively encouraged the individual states to
adopt unemployment insurance plans.
Processes
Eligibility criteria for unemployment benefits typically factor in the applicant's
employment history and their reason for being unemployed. Once approved, there is
sometimes a waiting period before being able to receive benefits. In the US, there is
no waiting period on a temporary basis currently due to the COVID-19 pandemic, but
in many states there is a waiting week. In Germany and Belgium, there is no waiting
week. The current waiting period in Canada is seven days. Countries implement
varied potential benefit durations (PBD), which is how long an individual is eligible to
receive benefits. The PBD may be a sliding scale function of the applicant's past
employment history and age, or it may be a set length for all applicants. In
Argentina, for example, six months of work history results in a PBD of two months,
while 36 months or more of work history can result in a PBD of a full year, with an
extra six months of PBD to applicants over the age of 45.[9]
Most countries calculate the amount of unemployment benefit as a percentage of
the applicant's former income. A typical replacement percentage is 50–65%. Some
countries offer much higher levels of wage replacement, such as the Netherlands
(75%), Luxembourg (80%), and Denmark (90%). There are often caps on the
maximum benefit level, ranging from 33% of a country's average wage (Turkey) to
227% of its average wage (France). The average maximum benefit level is 77%
among OECD countries. Most benefit payments are constant over the course of the
PBD, though countries such as the Netherlands, Sweden, Hungary, Slovenia, Spain,
and Italy have a declining benefit path, in which the wage replacement percentage
decreases over time.
Most countries require those receiving unemployment benefits to search for a new
job, and can require documentation of job search activities. Benefits may be cut if
the applicant does not fulfil the search requirements, or turns down a job offer
deemed acceptable by the unemployment benefits agency. Agencies may also
provide resources, training, or education for job seekers. Some countries allow
beneficiaries to accept part-time jobs without losing benefit eligibility, which can
counter the disincentive of unemployment benefits to accepting jobs that do not
fully replace the former wages.
Unemployment benefits are typically funded by payroll taxes on employers and
employees. This can be supplemented by the government's general tax revenue,
which can occur periodically or in response to economic downturn. Contribution
rates are usually between 1 and 3% of gross earnings, and are usually split between
the employer and employee.
Systems by country
Across the world, 72 countries offer a form of unemployment benefits. This includes
all 37 OECD countries. Among OECD countries for a hypothetical 40-year-old
unemployment benefit applicant, the US and Slovakia are the least generous for
potential benefit duration lengths, with PBD of six months. More generous OECD
countries are Sweden (35 months PBD) and Iceland (36 months PBD); in Belgium, the
PBD is indefinite.
Social protection in Armenia
Armenia's Unemployment Insurance (UI) scheme has been in force since 1991.
In 2005, Armenia adopted the law on Employment of the Population and Social
Protection in Case of Unemployment, which provided a legal framework to the
Unemployment Insurance and active labor policies. Armenia's UI is a contributory
program, which is obligatory for public and formal private sectors, as well as the self-
employed. To be eligible for benefits, the claimant must be unemployed as a result
of business reorganization, staff reduction, or the termination of a collective
bargaining agreement. To be eligible, applicants must have contributed for at least
12 months prior to unemployment or be actively looking for work after a long period
of unemployment. The UI is also available to first-time job seekers. Those who do
not qualify for the monthly payment are nonetheless eligible for the UI scheme's
capacity building programs. Those who qualify for the monthly unemployment
benefit will get a payment of 18,000 AMD per month for a minimum of 6 months
and a maximum of 12 months.
The UI also includes a scheme to help employers hire people who are unemployed
with at least 35 years of UI contributions but have not reached retirement age;
unemployed for more than three years; returning from corrective or medical
institutions; returning from mandatory military service; disabled; refugees; or are 16
years of age and newly eligible to work. Employers who hire these groups are eligible
for a benefit of 50% of the minimum

wage to supplement the employee's income. The UI also provides financial

assistance and capacity-building programs for unemployed or disabled individuals
who want to start their own businesses. Armenia also has a Paid Public Works
program that provides jobseekers and the disabled with temporary public
employment for three months.
Australia
Social security in Australia
In Australia, social security benefits, including unemployment benefits, are funded
through the taxation system. There is no compulsory national unemployment
insurance fund. Rather, benefits are funded in the annual Federal Budget by the
National Treasury and are administrated and distributed throughout the nation by
the government agency, Centrelink. Benefit rates are indexed to the Consumer Price
Index and are adjusted twice a year according to inflation or deflation.
There are two types of payment available to those experiencing unemployment. The
first, called Youth Allowance, is paid to young people aged 16–20 (or 15, if deemed
to meet the criteria for being considered 'independent' by Centrelink). Youth
Allowance is also paid to full-time students aged 16–24, and to full-time Australian
Apprenticeship workers aged 16–24. People aged below 18 who have not completed
their high school education, are usually required to be in full-time education,
undertaking an apprenticeship or doing training to be eligible for Youth Allowance.
For single people under 18 years of age living with a parent or parents, the basic rate
is A$91.60 per week. For over-18- to 20-year-olds living at home this increases to
A$110.15 per week. For those aged 18–20 not living at home the rate is A$167.35
per week. There are special rates for those with partners and/or children.
The second kind of payment is called 'JobSeeker Payment' (called Newstart until
20 June 2020) and is paid to unemployed people over the age of 21 and under the
pension eligibility age. To receive a JobSeeker Payment, recipients must be
unemployed, be prepared to enter into an Employment Pathway Plan (previously
called an Activity Agreement) by which they agree to undertake certain activities to
increase their opportunities for employment, be Australian Residents and satisfy the
income test (which limits weekly income to A$32 per week before benefits begin to
reduce, until one's income reaches A$397.42 per week at which point no
unemployment benefits are paid) and the assets test (an eligible recipient can have
assets of up to A$161,500 if he or she owns a home before the allowance begins to
reduce and $278,500 if he or she does do not own a home). The rate of allowance as
of 12 January 2010 for single people without children was A$228 per week, paid
fortnightly. (This does not include supplemental payments such as Rent Assistance or
Energy Supplement. Different rates apply to people with partners and/or children.
Effectively, people have had to survive on $39 a day since 1994, and there have been
calls to raise this by politicians and NGO groups.
On 22 February 2021, the Prime Minister of Australia, Scott Morrison, announced
that the JobSeeker base rate would be increased by A$50 a fortnight from April
2021. It is also intended to increase the threshold amount recipients can earn before
their payment starts to be reduced.
The system in Australia is designed to support recipients no matter how long they
have been unemployed. In recent years the former Coalition government
under John Howard has increased the requirements of the Activity Agreement,
providing for controversial schemes such as Work for the Dole, which requires that
people on benefits for 6 months or longer work voluntarily for a community
organisation regardless of whether such work increases their skills or job prospects.
Since the Labor government under Kevin Rudd was elected in 2008, the length of
unemployment before one is required to fulfill the requirements of the Activity
Agreement (which has been renamed the Employment Pathway Plan) has increased
from six to twelve months. There are other options available as alternatives to the
Work for the Dole scheme, such as undertaking part-time work or study and training,
the basic premise of the Employment Pathway Plan being to keep the welfare
recipient active and involved in seeking full-time work.
For people renting their accommodation, unemployment benefits are supplemented
by Rent Assistance, which, for single people as at 20 September 2021, begins to be
paid when fortnightly rent is more than A$124.60. Rent Assistance is paid as a
proportion of total rent paid (75 cents per dollar paid over A$124.60 up to the
maximum). The maximum amount of rent assistance payable is A$139.60 per
fortnight, and is paid when the total weekly rent exceeds A$310.73 per fortnight.
Different rates apply to people with partners and/or children, or who are sharing
accommodation.

Canada

Evolution of the number of EI beneficiaries in Canada by month since 1997

Evolution since 1972 of Employment Insurance (UI before 1996) contribution rate for
employees as a % of insurable earnings (in red special rate applicable for Quebec
since 2006). The color bands represents successives governments:

Liberal Party of Canada

 Progressive Conservative Party of Canada
Conservative Party of Canada
In Canada, the system is known as "Employment Insurance"
(EI, French: Prestations d’assurance-emploi). Formerly called "Unemployment
Insurance", the name was changed in 1996. In 2024, Canadian workers paid
premiums of 1.66% of insured earnings in return for benefits if they lose their jobs.
The Employment and Social Insurance Act was passed in 1935 during the Great
Depression by the government of R. B. Bennett as an attempted Canadian
unemployment insurance program. It was, however, ruled unconstitutional by
the Supreme Court of Canada as unemployment was judged to be an insurance
matter falling under provincial responsibility. After a constitutional amendment was
agreed to by all of the provinces, a reference to "Unemployment Insurance" was
added to the matters falling under federal authority under the Constitution Act,
1867, and the first Canadian system was adopted in 1940. Because of these
problems Canada was the last major Western country to bring in an employment
insurance system. It was extended dramatically by Pierre Trudeau in 1971 making it
much easier to get. The system was sometimes called the 10/42, because one had to
work for 10 weeks to get benefits for the other 42 weeks of the year. It was also in
1971 that the UI program was first opened up to maternity and sickness benefits, for
15 weeks in each case.
The generosity of the Canadian UI program was progressively reduced after the
adoption of the 1971 UI Act. At the same time, the federal government gradually
reduced its financial contribution, eliminating it entirely by 1990. The EI system was
again cut by the Progressive Conservatives in 1990 and 1993, then by the Liberals in
1994 and 1996. Amendments made it harder to qualify by increasing the time
needed to be worked, although seasonal claimants (who work long hours over short
periods) turned out to gain from the replacement, in 1996, of weeks by hours to
qualify. The ratio of beneficiaries to unemployed, after having stood at around 40%
for many years, rose somewhat during the 2009 recession but then fell back again to
the low 40s.[15] Some unemployed persons are not covered for benefits (e.g. self-
employed workers), while others may have exhausted their benefits, did not work
long enough to qualify, or quit or were dismissed from their job. The length of time
one could take EI has also been cut repeatedly. The 1994 and 1996 changes
contributed to a sharp fall in Liberal support in the Atlantic provinces in the 1997
election.
In 2001, the federal government increased parental leave from 10 to 35 weeks,
which was added to preexisting maternity benefits of 15 weeks. In 2004, it allowed
workers to take EI for compassionate care leave while caring for a dying relative,
although the strict conditions imposed make this a little used benefit. In 2006, the
Province of Quebec opted out of the federal EI scheme in respect of maternity,
parental and adoption benefits, in order to provide more generous benefits for all
workers in that province, including self-employed workers. Total EI spending was
$19.677 billion for 2011–2012 (figures in Canadian dollars).
Employers contribute 1.4 times the amount of employee premiums. Since 1990,
there is no government contribution to this fund. The amount a person receives and
how long they can stay on EI varies with their previous salary, how long they were
working, and the unemployment rate in their area. The EI system is managed
by Service Canada, a service delivery network reporting to the Minister
of Employment and Social Development Canada.
A bit over half of EI benefits are paid in Ontario and the Western provinces but EI is
especially important in the Atlantic provinces, which have higher rates of
unemployment. Many Atlantic workers are also employed in seasonal work such as
fishing, forestry or tourism and go on EI over the winter when there is no work.
There are special rules for fishermen making it easier for them to collect EI. EI also
pays for maternity and parental leave, compassionate care leave, and illness
coverage. The program also pays for retraining programs (EI Part II) through labour
market agreements with the Canadian provinces.
A significant part of the federal fiscal surplus of the Jean Chrétien and Paul
Martin years came from the EI system. Premiums were reduced much less than
falling expenditures – producing, from 1994 onwards, EI surpluses of several billion
dollars per year, which were added to general government revenue. The cumulative
EI surplus stood at $57 billion at 31 March 2008, nearly four times the amount
needed to cover the extra costs paid during a recession. This drew criticism from
Opposition parties and from business and labour groups, and has remained a
recurring issue of the public debate. The Conservative Party,[20] chose not to
recognize those EI surpluses after being elected in 2006. Instead, the Conservative
government cancelled the EI surpluses entirely in 2010, and required EI contributors
to make up the 2009, 2010 and 2011 annual deficits by increasing EI premiums. On
11 December 2008, the Supreme Court of Canada rejected a court challenge
launched against the federal government by two Quebec unions, who argued that EI
funds had been misappropriated by the government.
China
The level of benefit is set between the minimum wage and the minimum living
allowance by individual provinces, autonomous regions and municipalities.[22]
Denmark Unemployment benefits in Denmark
European Union
European unemployment insurance
Each Member State of the European Union has its own system and, in general, a
worker should claim unemployment benefits in the country where they last worked.
For a person working in a country other than their country of residency (a cross-
border worker), they will have to claim benefits in their country of residence.[23]
Finland
Two systems run in parallel, combining a Ghent system and a minimum level of
support provided by Kela, an agency of the national government. Unionization rates
are high (70%), and union membership comes with membership in an
unemployment fund. Additionally, there are non-union unemployment funds.
Usually, benefits require 26 weeks of 18 hours per week on average, and the
unemployment benefit is 60% of the salary and lasts for 500 days. When this is not
available, Kela can pay either regular unemployment benefit or labor market subsidy
benefits. The former requires a degree and two years of full-time work. The latter
requires participation in training, education, or other employment support, which
may be mandated on pain of losing the benefit, but may be paid after the regular
benefits have been either maxed out or not available. Although the unemployment
funds handle the payments, most of the funding is from taxes and compulsory tax-
like unemployment insurance charges.
Regardless of whether benefits are paid by Kela or from an unemployment fund, the
unemployed person receives assistance from the Työ- ja elinkeinokeskus (TE-keskus,
or the "Work and Livelihood Centre"), a government agency which helps people to
find jobs and employers to find workers. In order to be considered unemployed, the
seeker must register at the TE-keskus as unemployed. If the jobseeker does not have
degree, the agency can require the job seeker to apply to a school.
If the individual does not qualify for any unemployment benefit he may still be
eligible for the housing benefit (asumistuki) from Kela and municipal social welfare
provisions (toimeentulotuki). They are not unemployment benefits and depend on
household income, but they have in practice become the basic income of many long-
term unemployed.
Unemployment benefits in France
France uses a quasi Ghent system, under which unemployment benefits are
distributed by an independent agency (UNEDIC) in which unions and Employer
organisations are equally represented. UNEDIC is responsible for 3 benefits: ARE,
ACA and ASR The main ARE scheme requires a minimum of 122 days membership in
the preceding 24 months and certain other requirements before any claims can be
made. Employers pay a contribution on top of the pre-tax income of their
employees, which together with the employee contribution, fund the scheme.
The maximum unemployment benefit is (as of March 2009) 57.4% of EUR 162 per
day (Social security contributions ceiling in 2011), or 6900 euros per
month. Claimants receive 57,4% of their average daily salary of the last 12 months
preceding unemployment with the average amount being 1,111 euros per month. In
France tax and other payroll taxes are paid on unemployment benefits. In 2011
claimants received the allowance for an average 291 days.
Germany has two different types of unemployment benefits. Their common goal is
to cease dependence on unemployment benefits entirely. Both programs assist their
beneficiaries to varying degrees through
a living allowance,
help in finding work or training, and
if necessary, getting state-funded training.
Unemployment benefit I
Unemployment benefits I is the first-tier program supporting unemployed people. It
is designed like an insurance, involuntary unemployment through no personal fault
being the "event of damage". It is therefore also known as unemployment insurance
(Arbeitslosenversicherung).
In order to qualify, the unemployed person
must have made contributions for at least 12 months in the past 30-month period,
be unemployed, and
be able to work now or at least in the foreseeable future.
All workers with a regular employment contract (abhängig Beschäftigte), except
freelancers and certain civil servants (Beamte), contribute to the system. It is
financed by contributions from employees and employers. This is in stark contrast to
FUTA in the US and other systems, where only employers make contributions.
Participation (and thus contributions) are generally mandatory for both employee
and employer.
Employees pay 1.5% of their gross salary below the social security threshold and
employers pay 1.5% contribution on top of the salary paid to the employee. The
contribution level was reduced from 3.25% for employees and employers as part of
labour market reforms known as Hartz. Contributions are paid only on earnings up to
the social security ceiling (2012: 5,600 EUR). Furthermore, the system is supported
by funds from the federal budget.
Claimants get 60% of their previous net salary (capped at the social security ceiling),
or 67% for claimants with children (as long as beneficiary of child benefit). The
maximum benefit is therefore 2964 euros (in 2012). If the benefits fall below the
poverty line, it is possible to supplement unemployment benefits I with
unemployment benefits II if its conditions are met as well.
Unemployment benefits I is only granted for a limited period of time, the minimum
being 6 months, and the maximum 24 months in the case of old and long-term
insured people. This takes account for the difficulty older people face when re-
entering the job market in Germany.
Unlike unemployment benefits II, there is no means test. However, it is necessary to
remain unemployed while seeking for employment. In this context unemployment is
defined as working less than 15 hours a week.

Unemployment benefit II Hartz concept

Arbeitslosengeld II is a second tier, open-ended welfare programme intended to
ensure people do not fall into penury.
In order to be eligible, a person has to permanently reside in Germany, be in
possession of a work permit, and be fit for work, i.e. can principally work at least
three hours a day. The goal of the programme is to terminate one's dependence on
it (welfare-to-work). It is not a Universal Basic Income.
The benefits are subordinated, that means:
A person may not eligible for other programmes, especially Unemployment benefits
I and pension, but also other legal claims – e.g. dependence on parents, or accounts
receivable – can not come to fruition.
The person has to be in need (means test): He can not afford a minimum standard
living by all incomes in total, or by expending his own previously accumulated assets,
e.g. by selling real estate not required or adequate for a bare minimum lifestyle. In
the course of the SARS-CoV-2 pandemic these harsh standards have temporarily
been reduced to a mere sanity check to avoid undue hardship.
Despite its name, unemployment is not a requirement. Due to wage dumping and
other labour market dynamics, a large number
of working beneficiaries supplement their monthly income. They have the same
obligations as non-working beneficiaries.
People receiving benefits are obligated to cease their eligibility at all costs, but at
least minimise their dependence on welfare until no money would be paid. That
means, they are obliged to seek for jobs nationwide, and accept every job offered,
otherwise sanctions (retrenchment) may be applied. There is no recognition of
professional qualifications: An academic has to join the menial workforce, regardless
of the waste of qualifications. Neither are one's personal religious or ethical
concerns relevant: Prostitution is legal in Germany (although as of 2021 no job
center has urged any beneficiary to engage in prostitution).
In exchange for that, beneficiaries are assisted in that process, e.g. by reimbursing
travel expenses to interviews, receiving (free of charge) training in order to increase
their chances on the labour market, or subsidising moving expenses once an
employment contract has been signed but the place of work requires relocation as it
is further than the acceptable daily commute duration (at most 3 hrs a day). If they
do not voluntarily participate in training, they may be obliged by administrative
action. Beneficiaries not complying with orders can be sanctioned by pruning their
allowance and eventually revoking the grant altogether, virtually pushing them into
poverty, homelessness and bankruptcy, as there are no other precautions installed.
Germany does not have an EBT (electronic benefits transfer) card system in place
and, instead, disburses welfare in cash or via direct deposit into the recipient's bank
account. As of 2022 a single person without children receives at most €449 per
month at free disposal intended to cover living expenses, plus costs for reasonable
accommodation (rent and heating). People granted benefits are automatically
insured at reduced rates in the national health and nursing care insurances. The
national pension insurance accounts the time living on benefits, but it does not
increase the pension entitlement since in 2011 the federal government stopped
paying €205 monthly.
Unemployment benefits II has been heavily criticized since its introduction. As
unemployment benefits II are meant to ensure a minimum subsistence level, the
mechanism of sanctions has been repeatedly subject in front of the constitutional
court. In 2018 the possibility of a 100%-sanction was declared unconstitutional. In
July 2022 Germany's government implemented a one-year moratorium on sanctions,
permitting only a 10%-cut for repeatedly missing appointments (Meldeversäumnis).
This measure was taken as a precursor to restructuring unemployment benefits II
into a citizen's dividend (Bürgergeld).
The reforms revamping the unemployment benefits system into its today's shape is
dubbed Hartz IV. The term colloquially refers to Unemployment benefits II.
Unemployment benefits in Greece are administered through OAED
(Greek: Οργανισμός Απασχόλησης Εργατικού Δυναμικού, Manpower Employment
Organization) and are available only to laid-off salaried workers with full
employment and social security payments during the previous two years. The self-
employed do not qualify, and neither do those with other sources of income. The
monthly benefit is fixed at the "55% of 25 minimum daily wages", and is currently
360 euros per month,with a 10% increase for each under-age child. Recipients are
eligible for at most twelve months; the exact duration depends on the collected
number of ensema ένσημα, that is social security payment coupons-stamps collected
(i.e. days of work) during the 14 months before being laid off; the minimum number
of such coupons, under which there is no eligibility, is 125, collected in the first 12 of
the 14 aforementioned months. Eligibility since 1 January 2013, has been further
constrained in that one applying for unemployment benefits for a second or more
time, must not have received more than the equivalent of 450 days of such benefits
during the last four years since the last time one had started receiving such benefits;
if one has received unemployment benefits in this period for more than 450 days
then there is no eligibility while if one has received less, then one is only eligible for
at most the remaining days up until the maximum of 450 days is reached.
In terms of an unemployment allowance, Greece allows for those found in
unemployment, who are employed through an independent profession, to receive
benefits if their latest paycheck had not exceeded a certain amount, the current rate
should not exceed €1,467.35. When receiving benefits an individual cannot be
earning money from a self-employed profession. If the income increases the fixed
amount, a tax authority must issue a certificate that explains that the individual has
"interrupted the exercise of the profession", which must be done within 15 days.
Unemployment benefits are also granted to those who have generated an income
that does not exceed €1,467.35 from the final paycheck received from a liberal
profession. In order to receive a grant, the individual must not be receiving an
income from the previous liberal profession. Seasonal aid is also provided to workers
whose jobs cannot be performed through the entire year are also provided benefits
by the OAED.
Under the OAED, individuals who are benefiting from long-term unemployment
must be within the ages of 20 to 66 years of age and have a family income that does
not exceed €10,000 annually. An individual becomes eligible for long-term benefits if
the regular unemployment subsidy is exhausted after 12 months. After the
expiration of the 12-month period, an application towards long-term unemployment
benefits must be submitted in the first 2 months. If an unemployed person seeks
long term unemployment and has a child, the allowance is allowed to increase by
€586.08 (per child). Long-term unemployment can only be granted if the individual
can be found registered under the OAED unemployment registrar.

Iceland
To receive unemployment benefits in Iceland, one must submit an application to
the Directorate of Labour (Vinnumálastofnun) and meet a specific criteria set forth
by the department. Icelandic employment rates have traditionally been higher than
every other OECD country. In the most recent financial quarter, 85.8% of
the Icelandic working-age population were employed, with only 2.8% of the
population unemployed. When broken down by age group, Iceland's labor force is
highly active, with 74.9% of the population between the ages of 15 and 24 years old
and 89.4% of people between the ages of 25 and 55 years old active in the labor
market. This low rate of unemployment is attributed to the adoption of the Ghent
system, which has been adopted by the countries
of Denmark, Finland and Sweden, and highly emphasizes trade and labor
unions to provide unemployment benefits and protections to workers, which
ultimately has led to higher union membership than other capitalist economies.
The safety net that these unions provide also leads to more stable job retention and
less reliance on part-time employment. Only 11.9% of the working population is
dependent on temporary employment.
Unlike purely social-democratic states in Europe, the Nordic
model that Iceland adopted borrows aspects of both a social-
democratic and liberal-welfare state. Iceland not only sees high government
involvement in providing social welfare and amenities as with the social-
democratic model, but like the liberal-welfare model, it is also heavily reliant
on free trade and markets.The country relies on an open capitalistic market for
economic growth, yet also embraces a corporatist system that allows for wage
bargaining to occur between the labor force and employers in order to protect
workers and ensure provisions like unemployment benefits are ensured. Currently,
the legislation that ensures these benefits is The Act on Trade Unions and Industrial
Disputes, which was adopted in 1938 and has been amended five times since its
inception to adjust to the rise of globalization. In Section 1, Articles 1–13
grant trade unions the right to organize and negotiate with employers over fair
wages for its members as well as representation for their members in the event of
workplace conflicts. These rights for organized unions set forth by the Ministry of
Welfare not only provide the country's labor force fair and equal representation
within their respective industries, but also allow for these organizations to maintain
an active relationship with the Icelandic government to discuss economic issues,
promote labor and social equality, and ensure benefits for unemployed laborers, as
these unions are highly centralized and not politically affiliated.[38]
Unemployment benefits in Iceland (atvinnuleysisbætur) can involve up to 100%
reimbursement per month for wage earners for a maximum of 30 months. However,
these rates of reimbursement are determined by previous status of employment,
such as whether an individual is a wage-earner or is self-employed, as well as
meeting certain mandates such as being a current resident of Iceland, be actively
searching for employment, and retaining a 25% position for three months within the
past 12 months before filing for unemployment. Unemployed workers can be
compensated through either basic or income-linked benefits. Basic unemployment
benefits can cover both wage-earning and self-employing individuals for the first
half-month (10 days) after they lose their job, whereas income-linked benefits can
cover wage-earning and self-employing individuals for up to three months based on
a set salary index and length of employment. However, those who are unemployed
must report to the Directorate of Labour once a month to reaffirm their status of
unemployment and that they are actively searching for employment or
unemployment benefits could be revoked.Under the Icelandic Labour Law,
employees must be given a notice period of termination that can range from 12 days
to six months and is determined by the length of previous employment under the
same employer.
Ireland[
People aged 18 and over and who are unemployed in Ireland can apply for either
the Jobseeker's Allowance (Liúntas do Lucht Cuardaigh Fostaíochta) or the
Jobseeker's Benefit (Sochar do Lucht Cuardaigh Fostaíochta). Both are paid by
the Department of Social Protection and are nicknamed "the dole".
Unemployment benefit in Ireland can be claimed indefinitely for as long as the
individual remains unemployed. The standard payment is €203 per week for those
aged 26 and over. For those aged 18 to 24 the rate is €112.70 per week. For those
aged 25 the weekly rate is €157.80. Payments can be increased if the unemployed
has dependents. For each adult dependent, another €134.70 is added, €112.70 if the
recipient (as opposed to the dependent) is aged 18 to 24, and for each child
dependent €34 or €37 is added, depending on the child's age.
There are more benefits available to unemployed people, usually on a special or
specific basis. Benefits include the Housing Assistance Payment, and the Fuel
Allowance, among others. People on a low income (which includes those on JA/JB)
are entitled to a Medical Card (although this must be applied for separately from
the Health Service Executive) which provides free health care, optical care, limited
dental care, aural care and subsidised prescription drugs carrying a €2.00 per item
charge to a maximum monthly contribution of €25 per household (as opposed to
subsidised services like non medical-card holders).
To qualify for Jobseekers Allowance, claimants must satisfy the "Habitual Residence
Condition": they must have been legally in the state (or the Common Travel Area)
for two years or have another good reason (such as lived abroad and are returning to
Ireland after becoming unemployed or deported). This condition does not apply to
Jobseekers Benefit (which is based on Social Insurance payments).
More information on each benefit can be found here:
Jobseeker's Allowance
Jobseeker's Benefit
India
Employees' State Insurance
India follows a social insurance system for unemployment benefits much like its
European counterparts. Unemployment allowance is given to workers in India who
have contributed to the Employees' State Insurance for at least three years. The
benefit is given for a maximum of one year and is either 50% of the average daily
wage or Rs 35,000 a month, whichever is lower.
Israel
Welfare in Israel
In Israel, unemployment benefits are paid by Bituah Leumi (National Insurance
Institute), to which workers must pay contributions. Eligible workers must
immediately register with the Employment Service Bureau upon losing their jobs or
jeopardize their eligibility, and the unemployment period is considered to start upon
registration with the Employment Service Bureau. To be eligible for unemployment
benefits, a person must be at least 20 years old, have been previously employed, and
completed a "qualifying period" of work for which unemployment insurance
contributions were paid which varies between 300 and 360 days. Employees who
were involuntarily terminated from their jobs or who terminated their own
employment and can provide evidence of having done so for a justified reason are
eligible for immediately receiving unemployment benefits, while those who are
deemed to have terminated their employment of their own volition with no justified
reason will only begin receiving unemployment benefits 90 days from the start of
their unemployment period.
Unemployment benefits are paid daily, with the amount calculated based on the
employee's previous income over the past six months, but not exceeding the daily
average wage for the first 125 days of payment and two-thirds of the daily average
wage from the 126th day onwards. During the unemployment period, the
Employment Service Bureau assists in helping locate suitable work and job training,
and regularly reporting to the Employment Service Bureau is a condition for
continuing to receive unemployment benefits. A person who was offered suitable
work or training by the Employment Service Bureau but refused will only receive
unemployment benefits 90 days after the date of the refusal, and 30 days' worth of
unemployment benefits will be deducted for each subsequent refusal.
Members of kibbutzim and moshavim are typically not covered by the national
unemployment system and are covered by the community's own social welfare
system, unless they are employed outside of their community or directly by the
community.
Employees deemed to have been terminated from their jobs without legitimate
cause are also legally entitled to severance pay from their employers, equivalent of
one month's pay for each year that the unemployed individual had worked for his or
her previous employer.
Unions are also involved with the unemployment system in Israel. One such union
group is the Histadrut which is commonly known as the General Organization of
Workers in Israel. One of the Histadrut's main objectives is to creates job assistance
programs to help unemployed workers back into the workforce. Dr. Roby
Nathanson, a doctor in economics at the University of Köl, believes these job
replacement programs are successful due to the job unemployment rate in
Israel. The unemployment rate in Israel in 2009 had been 9.5% and has since
dropped to around 4% in 2018.
In addition, there are unemployment benefits for new immigrants who have not yet
been able to find employment or who are receiving below minimum wage pay. The
time period that they are qualified to receive unemployment benefits is during the
first 12 months following their immigration to Israel. They are entitled to support
from Havtachat Hachnasa, which is income support that is allocated from National
Insurance.
Unemployment benefits in Italy
Unemployment benefits in Italy consist mainly of cash transfers based on
contributions (Assicurazione Sociale per l'Impiego, ASPI), up to the 75% of the
previous wages for up to sixteen months. Other measures are:
Redundancy Fund (Cassa integrazione guadagni, or CIG): cash benefits provided
as shock absorbers to those workers who are suspended or who work only for
reduced time due to temporary difficulties of their factories, aiming to help the
factories in financial difficulties, by relieving them from the costs of unused
workforce
Solidarity Contracts (Contratti di solidarietà): in the same cases granting CIG benefits,
companies can sign contracts with reduced work time, to avoid dismissing
redundancy workers. The state will grant to those workers the 60% of the lost part of
the wage.
Mobility allowances (Indennità di mobilità): if the Redundancy Fund does not allow
the company to re-establish a good financial situation, the workers can be entitled to
mobility allowances. Other companies are provided incentives for employing them.
This measure has been abolished in 2012 and will stop working in 2017.
Citizens' income (reddito di cittadinanza): it is a social welfare system created
in Italy in January 2019. Although its name recalls one of a universal basic income,
this provision is actually a form of conditional and non-individual guaranteed
minimum income.
In the Italian unemployment insurance system all the measures are income-related,
and they have an average decommodification level. The basis for entitlement is
always employment, with more specific conditions for each case, and the provider is
quite always the state. An interesting feature worthy to be discussed is that the
Italian system takes in consideration also the economic situation of the employers,
and aims as well at relieving them from the costs of crisis.
Unemployment insurance (Japan)
Unemployment benefits in Japan are called "unemployment insurance" and are
closer to the US or Canadian "user pays" system than the taxpayer funded systems in
place in countries such as Britain, New Zealand, or Australia. It is paid for by
contributions by both the employer and employee.
On leaving a job, employees are supposed to be given a "Rishoku-hyo" document
showing their ID number (the same number is supposed to be used by later
employers), employment periods, and pay (which contributions are linked to). The
reason for leaving is also documented separately. These items affect eligibility,
timing, and amount of benefits. The length of time that unemployed workers can
receive benefits depends on the age of the employee, and how long they have been
employed and paying in.
It is supposed to be compulsory for most full-time employees. If they have been
enrolled for at least 6 months and are fired or made redundant, leave the company
at the end of their contract, or their contract is non-renewed, the now-unemployed
worker will receive unemployment insurance. If a worker quit of their own accord
they may have to wait between 1 and 3 months before receiving any payment.
Mexico lacks a national unemployment insurance system, but it does have five
programs to assist the unemployed:
Mexico City Unemployment Benefit Scheme – The only unemployment insurance
system based on worker contributions exists in Mexico City. Unemployed residents
of Mexico City who are at least 18 years of age, have worked for at least six months,
have no income, and are actively seeking work are eligible for unemployment
benefits for up to six months, which are composed of payments of 30 days' worth of
minimum wage per month.
Mexican Social Security Institute (IMSS) – This institution insures workers in the
formal sector, providing pensions and health insurance. Workers insured by the IMSS
who are unemployed may withdraw a maximum of 30 days' worth of pension
savings every five years. However, this does not cover the majority of workers, as
58% of the labor force is in the informal sector.
National Employment Service – This agency, which has 165 offices nationwide, offers
financial support in learning new skills to those aged 16 and above who are
unemployed or underemployed, and assistance in finding new jobs in the form of
information on vacancies and job fairs.
Temporary Employment Program – This scheme is designed to aid unemployed
people who live in rural areas with high unemployment rates, any area undergoing a
financial crisis, or an area that has been hit by a natural disaster or some other kind
of emergency. The program funds projects to boost employment by hiring local
workers aged 16 and above in jobs such as building infrastructure and promoting
development, and conserving the environment and cultural heritage sites. They are
paid a salary at 99% of the local minimum wage for a maximum of 132 days a year.
Income Generating Options Program – People living in poverty in an area of up to a
maximum of 15,000 inhabitants are eligible for funding for projects to generate
income for themselves.
Netherlands
Unemployment benefits in the Netherlands were introduced in 1949. Separate
schemes exist for mainland Netherlands and for the Caribbean Netherlands.
The scheme in mainland Netherlands entails that, according to the
Werkloosheidswet (Unemployment Law, WW), employers are responsible for paying
the contributions to the scheme, which are deducted from the salary received by the
employees. In 2012 the contribution was 4.55% of gross salary up to a ceiling of
4,172 euros per month. The first 1,435.75 euros of an employee's gross salaries are
not subject to the 4.55% contribution.
Benefits are paid for a maximum period of 24 months and claimants get 75% of last
salary for 2 months and 70% thereafter with a maximum benefit of 3128 euros,
depending on how long the claimant has been employed previously. Workers older
than 50 years who are unemployed for over 2 months are entitled to a special
benefit called the IOAW, if they do not receive the regular unemployment benefit
(WW).
Social welfare in New Zealand
In New Zealand, Jobseeker Support, previously known as the Unemployment
Benefit and also known as "the dole" provides income support for people who are
looking for work or training for work. It is one of a number of benefits administered
by Work and Income, a service of the Ministry of Social Development.
To get this benefit, a person must meet the conditions and obligations specified in
section 88A to 123D Social Security Act 1964. These conditions and obligations cover
things such as age, residency status, and availability to work.
The amount that is paid depends on things such as the person's age, income, marital
status and whether they have children. It is adjusted annually on 1 April and in
response to changes in legislature. Some examples of the maximum after tax weekly
rate at 1 April 2019 are:
$200.80 For a single person aged 20–24 years without children
$210.13 for a single person 25 years or over
$325.98 for a sole parent
$350.20 for a married, de facto or civil union couple with or without children
($167.83 each).
Plus winter payments of extra $20 a week
More information about this benefit and the amounts paid are on the Work and
Income website.
Unemployment benefits in the Philippines
In the Philippines, workers in the private sector who involuntarily became
unemployed, including housemaids and Overseas Filipino Workers, are entitled to
benefits through the Social Security Act of 2018. Unemployment benefits is sourced
from the country's Social Security System (SSS). Under the 2018 legislation, the
benefits are dispensed through a one-time payment to equal to 50 percent of the
claimant's monthly salary for a maximum of two months. Those who were
terminated due to certain reasons such as grave misconduct, gross negligence, and
commission of a crime are ineligible to avail unemployment benefits.
For government workers, unemployment benefits are sourced from
the Government Service Insurance System (GSIS). Payments are equal to 50
percent of the claimant's average monthly compensation and are dispensed monthly
for two to six months, depending on the claimant's length of service.
Unemployment in Poland and Welfare in Poland
In Poland, the system is designed to prevent people from living off unemployment
benefits long term, thus forcing them to work or rely on non-state means of support
(family, charities). In order to claim any state unemployment support, an adult (18+)
claimant has to prove at least one year of continuous, full employment (that is,
minimum 40 hours a week/160 hours a month) in the last 18 months prior to
registering with the Unemployment Agency. If approved, as of 2019, one is granted
848 zł (224.25 US$ in April 2019) before taxes on a month-to-month basis for the
first 3 months, then the amount is automatically lowered to 666 zł (176.20 US$ in
April 2019) before taxes for the remaining 3–9 months. Therefore, if approved, one
can claim unemployment benefits only to the maximum of 12 continuous months.
However, during that period, one has to cooperate with the Unemployment Bureau
in finding an employment under the strict guidelines of losing the unemployed
status, and thus the benefits. In comparison to the unemployment benefits paid by
the state, as of January 2019, the minimum monthly pay is 2250,00 zł (595.51 US$
in April 2019) before taxes.

Unemployment benefits in Spain

The Spanish unemployment benefits system is part of the Social security system of
Spain. Benefits are managed by the State Public Employment Agency (SEPE). The
basis for entitlement is having contributed for a minimum period during the time
preceding unemployment, with further conditions that may be applicable. The
system comprises contributory benefits and non-contributory benefits.
Contributory benefits are payable to those unemployed persons with a minimum of
12 months' contributions over a period of 6 years preceding unemployment. The
benefit is payable for 1/3 of the contribution period. The benefit amount is 70% of
the legal reference salary plus additional amounts for persons with dependants. The
benefit reduces to 60% of the reference salary after 6 months. The minimum benefit
is 497 euros per month and the maximum is 1087.20 euros per month for a single
person.The non-contributory allowance is available to those persons who are no
longer entitled to the contributory pension and who do not have income above 75%
of the national minimum wage.
Unemployment benefits in Sweden
Sweden uses the Ghent system, under which a significant proportion of
unemployment benefits are distributed by union unemployment funds.
Unemployment benefits are divided into a voluntary scheme with income related
compensation up to a certain level and a comprehensive scheme that provides a
lower level of basic support. The voluntary scheme requires a minimum of 12
months membership and 6 months employment during that time before any claims
can be made. Employers pay a fee on top of the pre-tax income of their employees,
which together with membership fees, fund the scheme (see Unemployment funds
in Sweden).
The maximum unemployment benefit is (as of July 2016) SEK 980 per day. During
the first 200 days, the unemployed will receive 80% of his or her normal income
during the last 12 months. From day 201–300 this goes down to 70% and from day
301–450 the insurance covers 65% of the normal income (only available for parents
to children under the age of 18). In Sweden tax is paid on unemployment benefits, so
the unemployed will get a maximum of about SEK 10,000 per month during the first
100 days (depending on the municipality tax rate). In other currencies, as of June
2017, this means a maximum of approximately £900, $1,150, or €1,000, each month
after tax. Private insurance is also available, mainly through professional
organisations, to provide income-related compensation that otherwise exceeds the
ceiling of the scheme. The comprehensive scheme is funded by tax.
Saudi Arabia is an economic welfare state with free medical care and
unemployment benefits. However, the country relies not on taxation but
mainly oil revenues to maintain the social and economic services to its populace.
Payment: 2000 SAR (US$534) for 12 months for an unemployed person from ages
18–35
Turkey
By law, legally employed workers, regardless of their citizenship are eligible for
unemployment benefits given that they are at least 18 years old, the employees
contribute 1% to unemployment funds while the employers contribute 2%, and the
workers are eligible to receive benefits after 600 days of contributions within the
preceding 3 years of employment. the benefit payment is 50% for the average daily
earnings based on the last 4 months and cannot be higher than the minimum wage
(per industry). Benefits may be paid for a max of 1,080 days depending on the
number of contributions. Some are skeptical of how well the system is functioning in
Turkey
United Kingdom
Unemployment benefit is paid in the United Kingdom either as Jobseeker's
Allowance or (for most people) as an element of Universal Credit.[66][67]
Jobseeker's Allowance rates
Jobseeker's Allowance (JSA) is changed annually; for the 2020/2021 tax year
(commencing 6 April 2020) the maximum payable is £74.35 per week for a single
person aged over 25 or £58.90 per week for a single person aged 18–24. The rules
for couples where both are unemployed are more complex, but a maximum of
£116.80 per week is payable, dependent on age and other factors. For those who are
still getting Income-based JSA or are getting Universal Credit, and having savings of
over £6,000, there is a reduction of £1 per week per £250 of savings up to £16,000.
People with savings of over £16,000 are not able to get Income-based JSA or
Universal Credit at all. The system previously provided rent payments as part of a
separate scheme called Housing Benefit, but for most new claimants this benefit is
now instead paid as an element of the comprehensive Universal Credit scheme.

Unemployment insurance in the United States Unemployment rate by

county from January 1990 – March 2017
In the United States, there are 50 state unemployment insurance programs plus one
each in the District of Columbia, Puerto Rico and United States Virgin Islands.
Though policies vary by state, unemployment benefits generally pay eligible workers
as high as $1,015 in Massachusetts to a low as $235 per week maximum
in Mississippi. Eligibility requirements for unemployment insurance vary by state,
but generally speaking, employees not fired for misconduct ("terminated for cause")
are eligible for unemployment benefits, while those who quit or who are fired for
misconduct (this sometimes can include misconduct committed outside the
workplace, such as a problematic social media post or committing a crime) are
not. Though the participation rate varies by state from below 10% to above 60%,
nationwide only 29% of unemployed Americans (those seeking work) received
unemployment benefits.
Economic rationale and issues
The economic argument for unemployment insurance comes from the principle
of adverse selection. One common criticism of unemployment insurance is that it
induces moral hazard, the fact that unemployment insurance lowers on-the-job
effort and reduces job-search effort.
Macroeconomic function
To Keynesians, unemployment insurance acts as an automatic stabilizer. Benefits
automatically increase when unemployment is high and fall when unemployment is
low, smoothing the business cycle; however, others claim that the taxation
necessary to support this system serves to decrease employment.
Adverse selection refers to the fact that "workers who have the highest probability
of becoming unemployed have the highest demand for unemployment
insurance." Adverse selection causes profit maximizing private insurance agencies to
set high premiums for the insurance because there is a high likelihood they will have
to make payments to the policyholder. High premiums work to exclude many
individuals who otherwise might purchase the insurance. "A compulsory government
program avoids the adverse selection problem. Hence, government provision of UI
has the potential to increase efficiency. However, government provision does not
eliminate moral hazard."
Moral hazard
"At the same time, those workers who managed to obtain insurance might
experience more unemployment otherwise would have been the case." The private
insurance company would have to determine whether the employee is unemployed
through no fault of their own, which is difficult to determine. Incorrect
determinations could result in the payout of significant amounts for fraudulent
claims or alternately failure to pay legitimate claims. This leads to the rationale that
if government could solve either problem that government intervention would
increase efficiency. The moral hazard argument against unemployment insurance is
based on the idea that such insurance would increase the risk, or 'hazard,' that the
insured worker would engage in activity that is undesirable, or 'immoral,' from the
insurer's point of view. That is, unemployment insurance could create longer or
more frequent episodes of unemployment than would otherwise occur. This could
occur if workers partially cushioned against periods of unemployment are more
likely to accept jobs that have a higher risk of unemployment, or spend more time
searching for a new job after becoming unemployed.
Unemployment insurance effect on unemployment
In the Great Recession, the "moral hazard" issue of whether unemployment
insurance—and specifically extending benefits past the maximum 99 weeks—
significantly encourages unemployment by discouraging workers from finding and
taking jobs was expressed by Republican legislators. Conservative economist Robert
Barro found that benefits raised the unemployment rate 2%Disagreeing with Barro's
study were Berkeley economist Jesse Rothstein, who found the "vast majority" of
unemployment was due to "demand shocks" not "[unemployment insurance]-
induced supply reductions." A study by Rothstein of extensions of unemployment
insurance to 99 weeks during the Great Recession to test the hypothesis that
unemployment insurance discourages people from seeking jobs found the overall
effect of UI on unemployment was to raise it by no more than one-tenth of 1%.
A November 2011 report by the Congressional Budget Office found that even if
unemployment benefits convince some unemployed to ignore job openings, these
openings were quickly filled by new entrants into the labor market. A survey of
studies on unemployment insurance's effect on employment by the Political
Economy Research Institute found that unemployed who collected benefits did
not find themselves out of work longer than those who did not have unemployment
benefits; and that unemployed workers did not search for work more or reduce their
wage expectations once their benefits ran out. One concern over
unemployment insurance increasing unemployment is based on experience rating
benefit uses which can sometimes be imperfect. That is, the cost to the employer in
increased taxes is less than the benefits that would be paid to the employee upon
layoff. The firm in this instance believes that it is more cost effective to lay off the
employee, causing more unemployment than under perfect experience rating.
Unemployment insurance effect on employment
An alternative rationale for unemployment insurance is that it may allow for
improving the quality of matches between workers and firms. Marimon and Zilibotti
argued that although a more generous unemployment benefit system may indeed
increase the unemployment rate, it may also help improve the average match
quality.[82] A similar point is made by Mazur who analyzed the welfare and
inequality effects of a policy reform giving entitlement for unemployment insurance
to quitters.[83] Arash Nekoei and Andrea Weber present empirical evidence from
Austria that extending unemployment benefit duration raises wages by improving
reemployment firm quality. Similarly, Tatsiramos studied data from European
countries and found that although unemployment insurance does increase
unemployment duration, the duration of subsequent employment tends to be longer
(suggesting better match quality).
Effect on state budget
Another issue with unemployment insurance relates to its effects on state budgets.
During recessionary time periods, the number of unemployed rises and they begin to
draw benefits from the program. The longer the recession lasts, depending on the
state's starting UI program balance, the quicker the state begins to run out of funds.
The recession that began in December 2007 and ended in June 2009 significantly
impacted state budgets. According to The Council of State Governments, by 18
March 2011, 32 states plus the Virgin Islands had borrowed nearly $45.7 billion. The
Labor Department estimates by the fourth quarter of 2013, as many as 40 states
may need to borrow more than $90 billion to fund their unemployment programs
and it will take a decade or more to pay off the debt.
Insurance funds
Possible policy options for states to shore up the unemployment insurance funds
include lowering benefits for recipients and/or raising taxes on businesses. Kentucky
took the approach of raising taxes and lowering benefits to attempt to balance its
unemployment insurance program. Starting in 2010, a claimant's weekly benefits will
decrease from 68% to 62% and the taxable wage base will increase from $8,000 to
$12,000, over a ten-year period. These moves are estimated to save the state over
$450 million.
Job sharing / short-time working
Job sharing or work sharing and short time or short-time working refer to
situations or systems in which employees agree to or are forced to accept a
reduction in working time and pay. These can be based on individual agreements or
on government programs in many countries that try to prevent unemployment. In
these, employers have the option of reducing work hours to part-time for many
employees instead of laying off some of them and retaining only full-time workers.
For example, employees in 27 states of the United States can then receive
unemployment payments for the hours they are no longer working.[88]
Self-employment and employment rates
Unemployment insurance has varying effects on employment and self-employment
rates. As self-employment is generally not covered, an increase in UI generosity
creates greater disincentives for self-employment, which leads to a positive
correlation between UI generosity and the transition from self-employment to paid-
employment. Conversely, individuals already in paid-employment experience the
opposite trend. This reallocation from self-employment to paid-employment may
have a positive effect on the employment rate in the economy but may have a
strong negative effect on self-employment rates. It has also been shown that
allowing self-employed individuals to access unemployment insurance might lead to
a boost in self-employment activity.
International Labour Convention
International Labour Organization has adopted the Employment Promotion and
Protection against Unemployment Convention, 1988 for promotion
of employment against unemployment and social security including
unemployment benefit.

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