Social Insurances and Layoffs By Kaylie Means When people are laid off and actively looking for work they may file for unemployment to help with finances Unemployment insurance subsidizes job separations and results in many layoffs and too few people being employed ID: 329268
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Slide1
New York Times
Social Insurances and Layoffs
By:
Kaylie
MeansSlide2
When people are laid off and actively looking for work, they may file for unemployment to help with finances.
Unemployment insurance subsidizes job separations and results in many layoffs and too few people being employed. Extending unemployment benefits would reduce some workers’ efforts to look for a new job because the higher benefits offered lessens the hardships of being unemployed.Many unemployed take advantage of the system and continue applying after the insurance claim is up and lie saying they currently look but cannot find a job. These people make it harder on the employer and others employed as they get benefits to support themselves by sitting at home not working.
unemployment insuranceSlide3
This graph shows the continuous growth in claims over ten years.
The greater the benefits offered, the more people rely on those benefits instead of applying for another job.Continuous unemployment claimsSlide4
When Employers experience reductions in demand from their customers, as auto manufacturers and homebuilders often do early in a recession, their reaction is to lay off part of their work forces.
This is where the circle begins and the people who are laid off begin to claim unemployment and look for a new job or continuously keep claiming. Layoffs are also greatly caused through seasonal jobs. If a job is has a slow period, like construction in the winter, they will usually layoff workers until the spring and often offer their laid off employees a job later in the year.LayoffsSlide5
A better way is to adapt to changes instead of to layoff employees. Employers could adapt to less demand by work-sharing
(an UI program that reduces the hours and employee works a week while unemployment compensation makes up for some of the income differences), reducing prices they charge customers, or reduce wages to allow everyone to keep their jobs. Layoffs continued…Slide6
Disability becomes available when a worker’s health makes it too difficult to remain on the job, or there is a job related injury that causes the worker to no longer be able to work.
This program is funded through a flat-rate payroll tax on employers and employees, this way employers don’t bear the costs from a disabled worker who is unable to work and becomes a beneficiary in the D.I. program.Disability increases the income employees can receive outside the job and makes employees a greater expense for an employer.Disability insuranceSlide7
There are millions of reasons for disability claims, but theses are the most common.
Though DI is a great advantage to those in need, it is often misused by workers who claim to have a serious injury just to prosper from the benefits this program has to offer. During a recession claims are more likely to be denied.Disability continued…