CHAPTER 23Unemployment Compensation

US Department of Labor

The federal-state unemployment compensation (UC) program, created by the Social Security Act (SSA) of 1935, offers the first economic line of defense against the ripple effects of unemployment. Through payments made directly to eligible, unemployed workers, it ensures that at least a significant proportion of the necessities of life, most notably food, shelter, and clothing, can be met on a week-to-week basis while a search for work takes place. As temporary, partial wage replacement to the unemployed, UC is of vital importance in maintaining purchasing power and in stabilizing the economy.

Unemployment compensation is a social insurance program. It is designed to provide benefits to ...

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