Unemployment Compensation


Unemployment Compensation

Funds paid by the state to unemployed workers who have lost their jobs due to layoffs or retrenchment. Unemployment compensation is meant to provide a source of income for jobless workers until they can find employment. In order to be eligible for it, certain criteria must be satisfied by an unemployed worker, such as having worked for a minimum stipulated period and actively looking for employment. Unemployment compensation provides partial income replacement only for a defined length of time or until the worker finds employment, whichever comes first.

Also known as unemployment insurance or unemployment benefits.

Unemployment compensation is paid by many developed nations and some developing economies. In the United States, unemployment compensation was ushered in by the Social Security Act of 1935, when the economy was struggling through the Depression. The U.S. unemployment compensation system is jointly managed by the federal and state governments and financed through payroll taxes on employers in most states. In Canada, the system is called Employment Insurance and is funded by premiums paid by both employers and employees.


Investment dictionary. . 2012.

Look at other dictionaries:

  • unemployment compensation — un·em·ploy·ment compensation n: compensation paid at regular intervals (as by a state agency) to an unemployed worker and esp. one who has been laid off – called also unemployment benefit; ◇ Unemployment compensation is usu. a fixed percentage of …   Law dictionary

  • unemployment compensation — UK US noun [U] (also unemployment insurance) ► GOVERNMENT in the US, money that is paid by the government every week to unemployed people who lose their jobs and are trying to find work. Unemployment compensation is financed by taxes paid by… …   Financial and business terms

  • unemployment compensation — n. payment, as by a state government from social security funds, of a certain amount of money to a qualified unemployed person, usually at regular intervals and over a fixed period of time * * * …   Universalium

  • unemployment compensation — n. payment, as by a state government from social security funds, of a certain amount of money to a qualified unemployed person, usually at regular intervals and over a fixed period of time …   English World dictionary

  • unemployment compensation — n. 1) to pay unemployment compensation 2) to draw, get, receive unemployment compensation 3) to be on unemployment compensation 4) to go on unemployment compensation 5) to apply for unemployment compensation * * * get receive unemployment… …   Combinatory dictionary

  • unemployment compensation — noun payment by a United States agency to unemployed people (Freq. 1) • Hypernyms: ↑social insurance * * * unemˈployment benefit [unemployment benefit] (BrE …   Useful english dictionary

  • unemployment compensation — noun Date: 1944 compensation paid at regular intervals (as by a government agency) to an unemployed worker and especially one who has been laid off called also unemployment benefit …   New Collegiate Dictionary

  • unemployment compensation — (Roget s IV) n. Syn. the dole, unemployment benefits, monthly check; see check 1 , pay 1 , 2 …   English dictionary for students

  • unemployment compensation — UK / US noun [uncountable] American unemployment benefit …   English dictionary

  • unemployment compensation — See unemployment insurance …   Ballentine's law dictionary


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