Question

Have you ever been denied unemployment benefits and do you think unemployment benefits should be extended for individuals having a difficult time finding employment? What do you think about the current administration decision to extend unemployment benefits for unemployed individuals up to two years? Does unemployment benefits lessens the incentive for unemployed to gainfully seek employment?

Answer 1

Before getting to know whether it should extend or not we should be clear about what is Unemployment Benefits in detail. Unemployment benefits are the can also be differ as the compensation or getting insured prior to doing the work. These are the payments made by the official bodies appointed like the government and other state bodies.

If we talk particularly about the United States of America then there has been an act to take care of the matters related to this which is Federal Unemployment Tax Act (FUTA) which has been authorized from the Internal Revenue Services (IRS). FUTA covers the cost related to the compensation, isurance, wages, etc.

The federal government lends the money to the states for the compensation of the unemployed when they are running short from the funds. A high unemployment shrinks the availability of resources which means it shrinks the revenues and increase the expenditures for the government.

To get these benefits there are some rules to get elligible for the same. The person should be employed for at least 1 quarter in the previos year and have been laid off by an employer. In general if we say if the worker quits on his own and is get fired for a good cause then he/she won't be eligible for the compensation.

There are some particular reasons where the employee is not eligible: When the worker is not available for work, the worker quit his/her job without a good cause, the worker fired for mis conduct, unemployment becasue of dispute, refusal by the end of labour to work a particular job.

Current administraion decision to extend unemployment benfits for unemployed individuals up to two years in not right becaue like this people will be more dependent and as I told earlier it will impact the resources as well majorly, because revenue will not be there but the expenditure will keep on going on. And unemployment benefits doesn't lessens the incentive for unemployed to gainfully seek employment, but it surely might affect their salary when they do get employed because gettiing this benefits means that they unemployed for a period and which will eventually show a gap in their career which look bad and raise many new questions that are to be answered by the employee getting hired to the employer who is hiring that employee in particular.