Case Study 6.3m "Does Unemployment Insurance Hurt or Help Workers?"
Directions: Complete the following case study and record your answers on a separate sheet of paper.
Topic: The debate on whether unemployment insurance helps workers in their transition between jobs or hinders their motivation to seek employment.
Objective: To explain how unemployment imposes costs on individuals and nations. To demonstrate how transitioning people from public assistance to the workforce will decrease federal spending and increase national productivity.
Key Terms: | unemployment | welfare-to-work |
feudalism | public assistance | |
unemployment insurance | state government | |
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Careers: | social worker | employment interviewer |
training specialist | ||
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Web Site Links: | www.welfareinfo.org | |
www.dol.gov | ||
www.doleta.gov | ||
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Unemployment insurance continues to exist in almost the same format as when it was created. However, both the workplace and the needs of those who are unemployed have changed drastically. Many feel that it is time to eliminate federal unemployment insurance. Others believe unemployment insurance should be changed to encourage employment instead of unemployment.
CS Question #1: Why do you believe unemployment insurance has remained the same since the 1930s?
Unemployment insurance is both a federal and a state program. Both the federal and state governments collect funds from employers. These funds are used to finance the program in each state. The program itself varies from state to state. Unemployment insurance provides weekly payments to individuals while they are unemployed. These payments last for six months. The minimum amount paid weekly by any state is approximately $180, while the maximum is over $550. A social worker determines the amount that each individual receives. The amounts vary based on:
To be eligible for unemployment, individuals must have had a good work record before the time of unemployment. They must also prove that their unemployment was not directly caused by their own negligence or poor performance on the job. To receive payments for the entire six-month period, individuals must also meet several requirements that vary from state to state. These requirements can include:
CS Question #2: Based on the description of unemployment insurance, name some problems that might result from individuals abusing the system.
Recent research figures have shown several interesting trends about unemployment insurance, including the following:
CS Question #3: According to the four trends listed above, what do you think most individuals do while collecting unemployment?
For many, these trends are very disturbing and point to the need to change the system of unemployment insurance.
In the current economy, unemployment is at the lowest rate it has been in decades.
However, there are still workers who are not finding employment for various
reasons, including:
Many believe that full employment can be reached. This requires changes so that unemployment insurance is transformed from a program that pays individuals not to work to a program that trains individuals for work. In the last ten years, the number of welfare-to-work programs has increased dramatically. In these programs, individuals who receive benefits are required to find work within a certain period of time. The new technological age requires that employees have different work skills than those required in the past. Training specialists create programs to teach individuals computer skills that will make them employable. The welfare-to-work programs also use employment interviewers to assist in finding jobs for individuals who have been trained through the state and federal programs.
CS Question #4: How do welfare-to-work programs help reverse the negative trends of unemployment?
Further Thought: