DEFINITION of 'Federal-State Unemployment Compensation Program'

A social safety net that provides temporary financial assistance to workers who have lost their jobs through no fault of their own. Each state has its own unemployment compensation program and its own qualification guidelines and benefit amounts. The state programs operate within overall guidelines created by federal law. Also known as "unemployment insurance".

BREAKING DOWN 'Federal-State Unemployment Compensation Program'

In times of high regional or national unemployment, benefits may be extended in 13-week increments. For example, when a state's unemployment rate reaches a certain level, federal regulations may require the state to extend the length of eligibility for unemployment benefits to a total of 39 weeks. In times of national hardship or crisis, Congress may enact legislation extending the length of benefits nationwide.

RELATED TERMS
  1. Unemployment Insurance

    A source of income for workers who have lost their jobs through ...
  2. Unemployment Compensation

    Funds paid by the state to unemployed workers who have lost their ...
  3. Continuing Claims

    Continuing claims refers to unemployed workers that qualify for ...
  4. Unemployment

    Unemployment occurs when a person who is actively searching for ...
  5. Employment Insurance - EI

    An unemployment insurance program in Canada that allows individuals ...
  6. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
Related Articles
  1. Insurance

    How To Apply For Unemployment Insurance

    Unemployment compensation is a federal program administered by each state. Here's how to connect to your state's unemployment office and what to expect.
  2. Insights

    The Cost Of Unemployment To The Economy

    Unemployment carries many costs, both obvious and hidden, for an economy.
  3. Investing

    Did Your State Cut Unemployment Benefits?

    Many of the states now cutting back on unemployment benefits significantly under-funded their coffers prior to the Great Recession.
  4. Personal Finance

    Help! My Unemployment Benefits Are Running Out

    Don't wait for your unemployment insurance to expire before planning what to do if you haven't found a new job yet.
  5. Personal Finance

    Understanding Frictional Unemployment

    Frictional unemployment is one aspect of natural unemployment, which is unemployment caused by things other than an underperforming economy.
  6. Personal Finance

    U.S. Labor Participation Rate at Record Lows

    In absolute terms, labor participation hit an all-time low.
  7. Insights

    Jobs Beat Forecasts, But "Real" Unemployment Rises

    The "real" unemployment rate, which accounts for discouraged and temporary workers, rose to 9.7% in July from 9.6% the month earlier
  8. Retirement

    Why Unemployment Rates Matter To Your Retirement

    Undoubtedly, unemployment is important for retirees and soon-to-be retirees. Also important is understanding the inflation rate as it’s reporting by the US.
RELATED FAQS
  1. Are Social Security benefits affected by unemployment benefits?

    Find out if Social Security benefits are affected by unemployment benefits, and if so, how much this benefit can be reduced ... Read Answer >>
  2. What is the difference between structural unemployment and cyclical unemployment?

    Learn more about unemployment in an economy, what structural and cyclical unemployment are, and the differences between these ... Read Answer >>
  3. Do rising unemployment rates tend to increase or decrease investor sentiment and ...

    Discover whether rising unemployment rates tend to increase or decrease consumer confidence and investor sentiment. Unemployment ... Read Answer >>
  4. What is the difference between frictional unemployment and structural unemployment?

    Learn about structural unemployment and frictional unemployment, the differences between the two types and their main characteristics. Read Answer >>
  5. What are the key points when getting ready to file for unemployment aid?

    Before filing for unemployment aid, you must be unemployed, have worked in the past, lost the job through no your fault of ... Read Answer >>
  6. What's the difference between cyclical unemployment and seasonal unemployment?

    Learn about the key differences between cyclical and seasonal unemployment. Read about distinguishing features of each of ... Read Answer >>
Hot Definitions
  1. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  2. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  3. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  4. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  5. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center