America is considering returning to the unemployment insurance system
– This system can be beneficial for the corporate sector
Washington, May 24 (Punjab Mail)- America is changing the market trend regarding work. From lawyers to newspaper columnists, everyone is forced to rethink the relevance of the office. He is also concerned that white collar jobs (office work) may not increase. The government feels that there is only one way to deal with this problem – to go back to the unemployment insurance system. The design of unemployment insurance is effective in one sense. This system started in Great Depression i.e. 1935. At that time, the unemployment rate in America had reached the level of 25 percent.
The government officials came to the conclusion that without jobs they could not pay for all their needs. After this result, the government made some changes. Companies were asked to make fewer layoffs. To ensure this rule, the government imposed experience rated payroll tax. This simply meant that the more the company retrenched, the more tax it would incur. The effect of this rule was that it only benefited those employees who had not lost their jobs. The effect of this rule was only for a short time.
Present conditions are not like 1935. In the new era, the problem of unemployment is of a new type. In the era of increasing automation, people are falling victim to ‘Carrier loss’ rather than ‘Job Loss’. Jobs are still there but lack of experience as per demand.
An innovative unemployment insurance system with different levels can prove to be beneficial for all. Employees, companies or organizations, independent contractors and people receiving work with their help will benefit. After leaving the job, there will be no immediate struggle for livelihood, but there will also be no need to sit idle. Have to keep looking for a job. Companies will also be able to acquire the right skills if needed. Therefore, everyone will need to contribute to it.