The Benefits of Unemployment Insurance
Unemployment insurance is one of the best government programs set in place so as to transfer funds to the needy. Over the years, economists have discovered a number of benefits of UI despite critics claiming that it reduces people’s motivation to seek employment. This program essentially works to provide a set of benefits to those who qualify as they look for another source of income. The following are ways in which unemployment insurance will benefit you.
One of unemployment’s worst effects is being unable to afford food, clothing and rent. Getting unemployment insurance means that you’ll have some income to help you foot your bills while you seek employment. These benefits usually last for around 26 weeks, but still, it provides you with the means to survive this tough financial situation. This way you still get to support your family and any other dependents at that time.
Unemployment insurance ensures that you have a source of income while looking for another job. This means you won’t have to dig into the money you had saved up from your last employment. You are assured of a comfortable livelihood without having to touch your savings. As such, even when you get your next job, you’ll still have your savings in case of an emergency.
Even though unemployment insurance is only a temporary subsidy from the government, there are some situations that may necessitate the extension of that time frame. A severe fluctuation in the government’s revenue or a serious economic crisis could cause an extension of the time frame. This way, even if you are finding it hard to get another job, you are assured of a paycheck to live by.
With unemployment benefits, you have financial security, so you are not desperate to latch onto the very first job opportunity you come across. The government wants you to find a job that matches your level of skill and that you are most comfortable with. Being financially secure is the only way you can turn down a job opportunity you find unsuitable. This means you won’t end up settling for an unsuitable job and having to look again soon after due to resigning or being fired.
Unemployment insurance benefits are not determined by a standard amount agreed on by the state. The salary you were getting 52 weeks prior to resignation or being fired is the major determinant of the unemployment benefits. This means you will not have to make any drastic changes to your expenses or savings for a while. The transition is therefore made smoother and more gradual.