The benefits of unemployment insurance are wider-reaching than you may think.
Unemployment insurance is designed to help people who are unemployed by enabling them to get what they need to survive. It doesn’t provide much in terms of income, but it is enough to make sure that families don’t go hungry and essentials are still available.
There are people that argue against unemployment insurance citing unethical uses of the program and other points of view. However, unemployment insurance has benefits that make it a good program for everyone, even for the people who do not receive unemployment benefits.
The Benefits of Unemployment Insurance:
Prevents Market Crashes
For many people, unemployment insurance can help keep them in their homes. Without a job, there is a high risk of foreclosure or eviction. Supplementing whatever savings are available with unemployment insurance can stop this from happening for some time, giving unemployed workers a chance to find a job.
This is important for everyone else because foreclosures and evictions can drive down home prices and crash the housing market. More evictions mean more available property and lower home values for everyone still in their homes.
Housing isn’t the only protected market. Food, retail, technology, and many other industries benefit from having more people able to stay where they are and afford the goods and services that they need. It lets people who have lost jobs to continue to support the economy.
Better Mental Health
Being unemployed is one of the most stressful problems anyone can have, especially with a family to support. Losing your job can change your world view substantially, and the stress takes a toll after a while.
Unemployment benefits give people who have been laid off of work a chance to maintain their mental health. It gives them some hope and makes the situation look a lot less terrifying. Plus, the emotional boost from having the government help with the bills when most needed can make a big difference in someone’s life.
Protects the Workforce
After someone loses a job, they immediately start looking for a new, similar job. By focusing on a similar job, that person can continue the lifestyle they had before without major changes.
However, the job search can take a while, and many will take a job that moves them down the ladder with lower pay if money runs out. This can create a problem for companies since high-paying talent will stop being immediately available for hire.
Unemployment benefits let people search for a similar job for longer, making it more likely that they will get that job. They have a greater chance of being able to hold out until that higher-paying job becomes available.
Recap on the Benefits of Unemployment Insurance
There are many arguments against unemployment benefits with varying degrees of validity. However, the benefits of unemployment insurance make it a good option for everyone.
Anyone could find themselves in a position where they could be laid off and risk losing everything. While it cannot replace a job, filing for unemployment benefits can make a bad situation seem a bit less hopeless.