Unemployment is not a choice but it still happens all over the world. In the USA the rates of unemployed workers are 23,038 thousand by April 2020. Many employed workers also faced the wrath of unemployment because of recession and pandemics. Many lost their jobs either because there was no demand or no supply. The majority of unemployed people in America say that they have the degree and the caliber but still they don’t get suitable jobs. To help the unemployed citizens the US department of labor’s unemployment insurance programs provide weekly or monthly unemployment benefits via checks.
Unemployment Insurance Programs
Some states in the USA have slow to rebound leisure and hospitality sectors which contributes to a high rate of unemployment. To help such workers and to boost their morale; unemployed workers get monthly unemployment benefits from the US government to cover their basic necessities of life. It has been observed that 30% of Americans couldn’t last a month without $600 checks. An unemployed worker has to register under unemployment benefits insurance. These benefits are provided to an unemployed worker for up to 26 weeks. It is considered as a taxable income.
Taxable Unemployment Insurance
Of course, the policies or the weekly checks vary from state to state. Mississippi has the lowest unemployment benefit while Massachusetts has the maximum unemployment benefit. These benefits are taxable on state and federal tax returns.
After a survey, it has come to notice that unemployed workers are satisfied with the unemployment benefits. Living with this economy is not easy where everything is expensive. It becomes a harsh reality for the unemployed workers to go watch a movie with their family or friends. At least they get weekly checks up to 26 weeks which is a sign of relief for unemployed workers.
Benefits of Unemployment Insurance
With the decline in funding, changes in the workplace, people being not so interested to work, an increase in the number of unemployed workers for more than 27 weeks, etc. the unemployment benefit system in the USA is facing major concerns. The unemployment benefits program or insurance was invented to help the unemployed citizens of the country from dipping into poverty or depression. But the unemployed workers are somewhat happy as 30% Of Americans couldn’t Last a Month Without $600 Checks. A lot of discussions happened inside the parliament where Congress has proposed an idea to increase the unemployment benefit insurance tenure. Unemployment Insurance is run by the state government that not only controls it but also funds it.
An average American family spends almost $15000 to $17,000 annually on housing-related products. So, imagine how an unemployed worker is sustaining in this economy without unemployment insurance.
Conclusion
Replacing the lost income with unemployment insurance or unemployment benefits has helped many locals in the USA From depleting all of their assets for consumption purposes. People can give time and energy in searching for the right job until they are unemployed with the help of Unemployment Insurance.