The term unemployment benefit refers to a program that provides temporary compensation to an individual that is out of work through no fault of their own. Unemployment benefits are paid until the individual is fully employed, or the programs maximum benefit is reached.
Also referred to as unemployment insurance, unemployment benefit programs are jointly run by state and federal agencies. These programs provide partial wages to qualifying individuals; typically former employees that have lost their job through no fault of their own. The exact formula used to calculate the benefit paid varies by state, but typically consider:
Note: All unemployment compensation benefits are taxable. In addition, individuals that are not fully employed may be entitled to a reduced benefit under their state's program.
During normal economic times, individuals may collect benefits for up to 26 weeks. When unemployment is relatively high, as is the case during a recession, the duration of benefits may be extended.
cyclical unemployment, frictional unemployment, classical unemployment, natural unemployment, long term unemployment, technological unemployment, Trade Readjustment Allowance, underemployment, Extended Benefits, Emergency Unemployment Compensation