The 7 important pros and cons of unemployment insurance are as follows
Pros:
- More Free Time. When you have no job, you are a lot of free time to discover and explore your interests, passions and find out various career strategies.
It keeps low-income households out of poverty. - Improving Credentials. It gives you a chance to achieve higher qualifications. You can develop new skill sets by completing a much-needed degree.
- The people who have been qualified as unemployed, receive money payments or wage supplements to survive and to search for new jobs.
- It works towards stabilizing the economy by ensuring that the unemployed people have enough abilities to spend on goods and services.
- It provides some support to the workers during recessions.
- Unemployment insurance motivates the workers to get a job in the sector that is important to the economy.
Cons:
- Jobs often come with healthcare benefits but being unemployed faces a downfall in this benefit.
- Although they receive to pay for being unemployed, it is comparatively less than an earned income.
- When you are searching for new jobs, an unemployment gap can create a bump and cause suspicion of your working style.
- The unemployment insurance which is financed by payroll taxes has a tendency to raise layoffs in some companies.
- Unemployed workers will find a way to stall their job search and would prefer to stay unemployed.
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