The Downside Of Unemployment Insurance Essay

2033 words - 8 pages

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 recession. Since there are companies that are not getting as much business as they usually would, they cannot afford as many workers. This type of unemployment is perhaps one of the most common types. We are currently going through a recession, so the number of unemployment workers will unfortunately continue to rise. There is not much the companies could do to avoid laying off any of their employees.
There is one last type of unemployment and it is seasonal. This type of unemployment is perhaps the most predictable because most people know that any seasonal job is temporary. Some examples of seasonal jobs are the ones at a packing house. If the packing house works with fruit, then the job is only offered until the fruit season is over. Packing house jobs are good but if you are looking for a long-term job, then you should look somewhere else.
Any type of unemployment would qualify you for unemployment insurance. Anyone can basically use the money from unemployment insurance for whatever you want. The money can be used to pay bills, take a little vacation, or do some shopping. Unemployment insurance is sort of a stress reliever because it helps with financial problems. Everyone probably thinks that whenever you do...

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