Question

In reference to unemployment benefits

How prevalent is the policy internationally? What are the similarities and differences in implementation of this policy across the world?

(Please provide as detailed a response as possible, thanks)

Answer 1

Unemployment benefits are basically social programmes/insurances given to unemployed and the foundation is that a citizen has the right of basic living. It is provided for by state will the citizen is employed back.

It is not very prevalent over world. As per ILO the 75% of the unemployed people in the world do not have any insurance. Mostly Nordic countries provide generous unemployment benefits. other than that some countries like Australia, Netherlands, Canada, Japan, USA and UK also give some level of unemployment benefits.

Deleoped countries: Provide second layer of Unemployment benefit as assistance for those who have exausted their insurance. Some countries even provide assistance to gig workers as they lose out on benefits availed by full time workers. USA provides $600 to unemployed per week for 6 months.

Developing countries: Countries like India do not provide transfer incomes as such but the government schemes like MGNREGA employ unemployed persons for 100 days on a daily wage basis such that income keeps flowing and rural infrastructure keeps building.

the need and importance of unemployment benefits is in talks again because of COVID-19 impact on economy.