Unemployment Insurance

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DEFINITION of 'Unemployment Insurance'

A source of income for workers who have lost their jobs through no fault of their own. Workers who quit or are fired are generally not eligible for unemployment insurance. Workers who are self-employed are also not eligible to receive unemployment insurance and must provide their own rainy-day funds to cover times when no work is available.

BREAKING DOWN 'Unemployment Insurance'

Unemployment is paid to workers by state governments from a fund of unemployment taxes collected from employers. Unemployment insurance often only pays workers about half of what they were earning at their previous job to help encourage them to seek re-employment. The former employee often must continually prove that he or she has been actively searching for a job as a condition of continuing to receive unemployment insurance.



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RELATED FAQS
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    The unemployment rate is one of the most closely followed indicators, used by businesses, investors and private citizens ... Read Full Answer >>
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    Before filing for unemployment compensation, there are several key points that you must get right in order for your claim ... Read Full Answer >>
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    The unemployment rate and Consumer Confidence Index (CCI) rank as two of the most important economic indicators to consider ... Read Full Answer >>
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