Unemployment in the US - Research Paper Example

The term unemployment benefits is used to refer to the partial, temporary income given to workers who lose their jobs as a result of no fault of their own, and are able and available to work (Florida Department of Revenue). The funds are aimed at improving personal welfare and social security during the given period, and unemployment, in this case, means temporary lack of work (Baicker, Goldin and Katz 228). Unemployment benefits help individuals to level expenditure when affected with loss of jobs, and give those unemployed a chance to get a new, well-matched job.

It can be argued that unemployment benefits are providing a vital but often disregarded purpose by reducing the insecurity connected with modern labor markets. Because job insecurity is connected with concerns about potential economic safety, economic support during unemployment may lessen the negative effects of job insecurity on employed individuals well-being. However, unemployment benefit systems have two main drawbacks: they are often costly to employers, employees, and the state; and while they reduce the hardship of unemployment, in addition, they tend to increase the underlying unemployment problem.

Abuse of unemployment benefits comes in various forms that affect almost every person receiving the benefits. It also affects those that are in employment since it is taxes, which are used by the state and federal governments in order to raise the funds required to pay the said benefits. One of the causes of unemployment in the United States is the high cost of doing business; in a way, those companies and other stakeholders in the job-creation market cannot sustain a large number of employees.

In this regard, businesses are not in a position to have all necessary members of staff to cater for their needs and operate various posts in different capacities. This is because all businesses are out to cut the costs of operation and the even