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Do unemployment payments delay a return to the workforce?
Results so far:
| Yes | 49% | 41 votes | Total: 84 votes | |
| No | 51% | 43 votes |
Yes
by Anthony Megna
Created on: April 15, 2011 Last Updated: June 18, 2011
Scenario: Single mother with two kids, and she has just lost her job. She files for unemployment, receives her unemployment check, takes care of her kids, and searches for another job. But the jobs that she finds don't pay enough to cover her expenses, of which one big one is the baby-sitter! So, she decides to continue to collect until she can either re-train for a new career, or get a job that pays what she is used to. After all, at least she has her unemployment check.
Does the above sound familiar? It's going on all over the country, as the high unemployment rates we've suffered recently has led millions to the unemployment line. Personally, I'm all for the unemployment coverage. It's extremely important, and it is an insurance benefit that most workers pay for, so why not use it? We're entitled to it, right? Yes, but the fact remains that it can delay a return to the workforce. The other fact is, so what?
Just because a person is delayed to returning to the workforce, is that bad? Not necessarily, in my opinion. I think it is imperative that the unemployed person take some time to weigh his or her options in life. In other words, should that person stay in the same field, or learn something new? Maybe that person was burning out in the old profession, and being laid off is a godsend? That is a common scenario as well, and millions of folks have either learned something new, something that they've always wanted to do and being laid off was just the prescription for them to start a new life, or have secured a better job that pays more with better benefits. Change is the essential process in life, and it's healthy to embrace change and not reject it. But the fact remains that if one has a safety net, which is unemployment benefits, then it will delay them getting a job.
Back to that single mother....why should she take another job, something that doesn't pay as much as she was earning before she got laid off, and lose money? Especially now that she has benefits coming in which gives her the luxury of looking for something better and as a bonus she gets more time with her children? Should she be blamed, or congratulated? No, in my opinion her unemployment benefits are just what she needs in order to give her time not to rush into some dead-end job, but to really take the time required to better her life! And if that is a side benefit to unemployment, even if it means delaying her re-entry into the job market, then so be it!
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No
by Doreen Martel
Created on: August 02, 2010
It is important to remember that many people tie their individual self respect to their job. Workplaces are not only a place for working, but also a place for developing leadership skills, friendships and a wealth of knowledge. While some believe that those who are receiving payments from unemployment insurance, there are some reasons why it is unlikely that unemployment payments delay a return to the work force. Here are some of the reasons:
A) Payments are lower than regular pay - Most states put a cap on the amount of unemployment insurance compensation that you can receive on a weekly basis. While initially some might think of their unemployment checks as a "paid vacation" after a few weeks of receiving seriously reduced amounts each week will quickly result in a reality check. Most people simply cannot afford to live on unemployment compensation for any length of time.
B) Insurance payments are deducted - Another problem with unemployment insurance is that medical insurance benefits must be paid from the unemployment compensation benefits. This significantly reduces the amount of income that can be considered "disposable". In some cases, medical and life insurance payments can completely decimate an unemployment check.
C) Credit issues - It is almost inevitable that those who are collecting unemployment benefits past a certain number of weeks will begin running into credit problems. Ultimately what happens in most cases is that the person collecting drains their savings to keep up with regular expenses such as rent (or mortgage), utility payments, etc. Once they have drained their savings one of the first things to suffer is generally credit card obligations. This can result in a downward spiral that is almost impossible to get out of.
D) Self esteem issues - All too often as a result of being laid off from a job, self esteem issues can occur. Over time, this can escalate. People tend to identify with others who are in the same position they are, and all of us want what is best not only for our families, but for ourselves. Rather than risk our reputations among our friends, we want to get back to work and not be thought of as a "dead beat".
Summary
Being laid off is financially and emotionally devastating. Collecting unemployment insurance benefits may initially seem like a great way to "take some time off" however, once the reality sets in, the person who is laid off knows that they simply cannot survive on unemployment insurance. Most people like to work (even those that complain about it endlessly) since it helps define who they are. There is no reason to believe that unemployment benefits delay a return to the workforce for most people.
Learn more about this author, Doreen Martel.
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