Unemployment Compensation Overview
Jobless Benefits and the Impact of Recessions
The cornerstone of an unemployed worker’s income support is the joint Federal-State Unemployment Compensation (UC) program, which may provide income support through the payment of UC benefits. The underlying framework of the UC system is contained in the Social Security Act. Title III of the Act authorizes grants to States for the administration of State UC laws, Title IX authorizes the various components of the Federal Unemployment Trust Fund (UTF), and Title XII authorizes advances or loans to insolvent State UC programs. UC is financed by Federal taxes under the Federal Unemployment Tax Act (FUTA) and by State payroll taxes…
