Tuesday, March 3, 2009

Little Light in the Dark- Unemployment Insurance

By Chaoran Hu

When millions of employees are suffering from the great economy recession, unemployment insurance has become a safety net for workers who lose their jobs. Unemployment insurance was created in 1935 in response to the great economy recession at that time. Now, the program helps cushion the tremendous impact of the economy downturn and bring economic stability to communities, states, and the nation by providing temporary income support for lay off workers.

However, the rules vary by states. Mostly, they will review the reason for unemployment before they issue the benefits. Recipients typically receive half of what they earned before laid off, and the effective time for the benefits is limited to 26 weeks, which may extend longer period for the 2009. The requirement for the claims is that they must have worked for a specific number of months in order to receive the benefit. In some states, the claims can be done by phone, mails, or internet. It usually takes 2 weeks for the benefit take effect, and in the following weeks, the recipients must continue to affirm that their eligibility t work and they are actively seeking new jobs.

After realizing the possibility of unemployment insurance, the employees who have been laid off will have some sort of insurance during their tough time. However, it is still not the ultimate goal, the only solution during the economy recession is to recover and restructure the unstable economy.

No comments:

Post a Comment