Question

a. What type of unemployment is covered under a typical state unemployment insurance program? 

b. Describe some actions that may disqualify a worker for unemployment benefits. 

c. Why is the fraction of unemployed workers who receive unemployment benefits relatively low?

Answer 1

Answer(a): Unemployment insurance- This insurance is for unemployed people who have lost their job without any fault or are not getting any job, they are provided unemployment benefits.

Eligibility- People who have faultlessly lost their job, are eligible for unemployment insurance benefits. People who have quit their job or have taken early retirement, are not eligible for the same. An unemployed individual should meet the state-mandate thresholds for either earned wages or time worked in a state based period.

Answer(b): Actions that may disqualify the insurance benefits-

• If a person quits his job or terminated because of his own fault.
• If a person does work related misconduct or misconducts outside the work.
• If a person turns down the suitable job.
• If a person fails the drug test.
• If a person is temporarily disabled or on maternity leave.