Unemployment Benefits Law and Legal Definition

Unemployment benefits refer to those benefits given by the government to an unemployed persons. It is a basic welfare program under social security scheme. These benefits cover the basic needs of a person. These benefits are given to those persons who are registered as unemployed.

In the U.S., unemployment benefit is also known as unemployment insurance. The concept was originated in 1932. Unemployment insurance is governed jointly under federal-state program. Unemployment insurance is carried out through Social Security Act, 1935. Employers are required to pay for both state and federal unemployment tax. Unemployment insurance also facilitates in countering economic changes. In the U.S. unemployment benefits are not provided to persons who are self employed or working in part time jobs.