What You Need To Know About Unemployment

Unemployment compensation is not something that you ever want to have to get. However, many people were forced to get unemployment after they lost their jobs due to the Great Recession in 2008. Over 5 million people had lost their jobs by March 2009. Over 13 million people were unemployed.

The unemployment rate was 8.5 percent in March 2009. Over 656,750 Americans were turning in unemployment applications per week. Things have improved a lot since then. The unemployment rate was 4.4 percent in April 2017. This is the lowest that the unemployment rate has been since May 2007.

However, there are 7.1 million people who still do not have any jobs. These people often turn to unemployment assistance. You may be wondering where the money for unemployment comes from.

Defense Against Economic Despair

The state and federal unemployment compensation program is a part of the Social Security Act, which started in 1935. It was created in response to the Great Depression. Millions of people had lost their jobs could not buy services and goods. This program is designed to provide people with the funds that they needed to buy clothing, food, and shelter.

Costs Are Shared by State and Federal Government

The Unemployment program is different from most social programs. Most of the state and federal programs are paid for by employers. Employers will pay 6 percent on taxes up to the first $7,000 earned.

The federal taxes are used to cover the administration costs. The costs are also used to cover extended benefits during times of high unemployment. The state UC tax rates can vary. They can only be used to pay for unemployment benefits. The tax rate is based on the unemployment rate in the state. A state can raise the rate if the unemployment rate goes up.

Almost every salaried and wage workers are covered by the unemployment benefits. There is a separate federal program that covers railroad workers. Ex-service members and civilian federal employees are also covered by the federal program.

How Long Will the Benefits Last?

Most states will pay the benefits for up to 26 weeks. If the unemployment rate is high, then a person may be able to get benefits for up to 73 weeks. The American Recovery and Reinvestment Act, which is a 2009 economic stimulus, gave people whose benefits were getting ready to expire an additional 33 weeks. Many people were also able to get an additional $25 per week.

The Unemployment Compensation Extension Act was signed into law by President Obama. Every state extended unemployment benefits by 14 weeks. People who lived in a state that had an unemployment rate of 8.5 percent were able to get an additional six weeks

The unemployment benefits can range from $235 in Mississippi to $742 in Massachusetts. Although most states will pay for benefits up to 26 weeks, there are some states that pay unemployment for less time. Kansas only pays unemployment benefits for 16 weeks.

Who Runs the Unemployment Program?

This program is administered at the federal level. The United States Department of Labor Employment and Training Administration administers the program. Every state has its own unemployment insurance agency.

How to Get Unemployment Benefits

The state determines who will be able to get unemployment benefits. The application process can also vary from state to state. However, in order to qualify for unemployment, you must have lost your job due to something that you did not have any control over. This means that if you got fired from your job, then you will not be able to get unemployment benefits. However, if you were fired because you did not meet the skills for the job, then you still may be able to get unemployment. You will not be able to get benefits if you quit your job.

If you were laid off from your job, then you can get unemployment. You have to be able to work in order to get unemployment. You must also be looking for a job while you are getting unemployment. If you get offered a suitable position, then you will be required to take it.