UI Benefits Study. Trends in the Structure of the Labor Market and Unemployment: Implications for U.S. Unemployment Insurance

摘要

The American Unemployment Insurance (UI) system has been in place since its establishment as part of the Social Security Act of 1935. While the labor market and the nature of unemployment have changed dramatically over the decades, the UI system has remained largely unchanged. Since its inception, the UI system has served the U.S. economy well by performing two crucial functions: providing workers with essential income protection when they are temporarily unemployed as a result of a layoff and helping unemployed workers maintain their consumption during recessions, thereby giving the national economy an important stimulus in periods when overall unemployment is high or rising.