The Downside of Unemployment Insurance

When someone becomes unemployed they automatically turn to unemployment insurance. People who are unemployed think that filing for unemployment insurance is a good way to solve your problems. The money used for unemployment insurance should be put to better use by fixing roads and saving schools.

Unemployment insurance is a unique federal-state program, which is financed by unemployment program tax contributions from employers (Workforce and Economic Development). Most people do not know that there are different types of unemployment. The types of unemployment are: structural, frictional, cyclical, and sometimes seasonal (Gordon and Amerson 4).

Structural unemployment is when there is not enough demand for workers that are available. The two causes for this type of unemployment are change in technology and taste. An example of change in technology is when you are working for a typewriting company and you are fired because everyone is now interested in personal computers. Change in taste is when a store selling beads for jewelry becomes unpopular and the company goes bankrupt, which causes the employees to become unemployed (Economics at About.Com -- Your Portal to the World of Economics).

Frictional unemployment is when people leave work to raise children, find a different career or move to a different location. After having a baby, it is sometimes hard trying to get back to work because there are some possibilities that your job was given to someone else. You might also not like the city you are living in, so you decide to move somewhere else. Working in the same place for a while can be boring, which is why you decide to pursue a different career.

Cyclical unemployment is when you get laid off due to the...

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...eryone who files for unemployment insurance should keep in mind that the next time they decide to file for unemployment insurance, they should stop and think about all the schools they would be saving or the roads they would be fixing.

Works Cited

Garcia, Claudia. Personal Interview. 20. May. 2010

Gordon, Margaret S., and Ralph W. Amerson. Unemployment Insurance. Berkeley: Institute of Industrial Relations, University of California, 1957. Print.

"Layoffs and Retraining." Workforce and Economic Development (WED). Web. 26 May 2010. .

Moffatt, Mike. "What Are The Three Types of Unemployment?" Economics at About.Com -- Your Portal to the World of Economics. Web. 05 June 2010. .

“Unemployment Insurance.” Personal Survey. 26. May. 2010

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