Unemployment claims is a government program that provides limited payments to eligible workers who are involuntarily unemployed. Before reading more about unemployment claims, you can watch educational trading videos only on GIC YouTube and get free trading class information on GIC Instagram.


Unemployment Claims Are

The term unemployment claim refers to a request for cash benefits made by a person after they have been laid off from their job. Claims are filed through the state government for temporary payments after people lose their jobs through no fault of their own.

Factors Causing Employee Layoffs by Companies

Know Clearly About Unemployment Claims

Unemployment claims are a government program that provides limited payments to eligible workers who are involuntarily unemployed. Unemployment claims are requests for temporary financial assistance in the form of unemployment benefits. Individuals who lose their jobs file these claims at state-run unemployment insurance agencies. Unemployment insurance claim systems, processes, and procedures vary across states. The U.S. Department of Labor ensures that state administrations provide citizens with easy access to unemployment insurance programs and related benefits.

What is the difference between Jobless and Unemployment

Unemployment is often mistakenly believed to describe anyone who is without a job. In economics, unemployment actually describes workers who are unemployed but want work and are actively looking for work. The U.S. Bureau of Labor Statistics states that to be considered unemployed, a worker must have been actively looking for work in the past four weeks and be available for work. Workers who are laid off or quit their jobs but do not look for new work are not considered unemployed if they are not continuing to look for work. In most cases when you come across the terms "jobless" or "joblessness", the writer probably means "unemployed" or "unemployment." However, in some cases, "jobless" can refer to other groups of people who are unemployed but do not fit the official definition of unemployed.

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Who counts as a worker?

A person is considered to be employed if they carried out any work for wages or benefits during the survey reference week. This includes all freelance and contract work, as well as full-time work throughout the year. An individual is also counted as employed if they have a job in which they do not work during the survey week, whether they are paid or not, because they:
  • Workers on leave
  • Sick
  • Having childcare issues
  • Maternity leave or childbirth leave
  • Caring for multiple family members or other personal obligations
  • Involved in a labor dispute
  • Prevented from working by bad weather
These individuals are counted among the employed and tabulated separately as employed but not at work because they have a specific job to which they will return.

Who counts as unemployed?

A person is classified as unemployed if they do not have a job, have actively sought work in the previous 4 weeks, and are currently available for work. Actively seeking work can consist of any of the following activities:
  • Contact:
    • Employers in person or conducting job interviews
    • Public or private employment agencies
    • Friends or relatives
    • School or university employment center
  • Submitting a resume or filling out an application
  • Placing or answering job advertisements
  • Checking with a labor union or professional registry
  • Some other ways to actively search for a job
Passive job search methods do not have the potential to connect job seekers with prospective employers and therefore do not qualify as active job search methods. Examples of passive methods include attending job training programs or courses, or simply reading about job vacancies posted in newspapers or on the internet. Workers who expect to be called back from temporary layoffs are counted as unemployed regardless of whether they have engaged in specific job search activities. In all other cases, the individual must have been involved in at least one active job search activity within the 4 weeks prior to the interview and be available for work (except in the case of temporary illness).

Who is not included in the labor force?

The labor force consists of those who are employed and those who are unemployed. The rest—those who are unemployed and not looking for work—are counted as not in the labor force. Many of those not in the labor force are in school or have retired. Family responsibilities keep others out of the labor force. Since the mid-1990s, typically less than 1 in 10 people not in the labor force have reported wanting a job.

Things to pay attention to in Unemployment Claims are:

There are things that must be considered in unemployment claims, namely:

Employer responsibilities during the unemployment claims process

When an employee is separated from work, there are several steps that both the employer and employee must take to ensure that eligibility is determined accurately. As an employer, learn about what you can do to promote an effective claims process, including responding to requests for information from the Department of Unemployment Assistance (DUA). You will also learn how to protest benefit charges or appeal an unemployment decision.

Eligibility for unemployment benefits

Eligibility for unemployment benefits is based on 3 categories:
  • Wages
  • Reasons for separation from work
  • Job search requirements
A worker may initially qualify for unemployment benefits if they:
  • Separated due to layoffs
  • Completely or partially unemployed
  • Dismissed for reasons unrelated to willful misconduct or violation of employer rules or policies
  • Resign for reasons related to the employer, or for reasons that are urgent, compelling and necessary.

Inform employees of their options after job separation

When an employee is separated from employment, regardless of the circumstances, you are responsible for providing the employee with a copy of the DUA pamphlet How to Apply for Unemployment Insurance Benefits (Form 0590A) . The law allows you 30 days to distribute this information to all employees who are permanently and temporarily separated. The pamphlet is available in English and 12 additional languages. The pamphlet includes space for you to note your federal employer identification number (FEIN) and mailing address to ensure accurate claim filing and delivery of claim notices. The pamphlet should be given in person whenever possible, but may be mailed when the employee is not available.

Respond to TWO with timely information

If an employee who worked for you in the last 15 months files a claim, you are considered the base period employer and you may receive a request from the DUA to provide information about the employee. You will be able to complete this request through your UI Online account. Any employer with whom the employee worked during the last 8 weeks of employment (before the claim was filed) is considered an interested party to the claim, and has the right to protest the employee’s eligibility for unemployment benefits. If an employee is approved for benefits by the DUA, the interested party employer who protests receives notice of the approved claim and has the right to request a hearing within 10 business days (provided the request for wage and separation information is returned to the DUA in a timely and adequate manner). A disqualified employee may also request a hearing. If you do not respond to a request for information in a timely or adequate manner, you may:
  • Loss of your right to be notified of an eligibility determination and your right to appeal that determination
  • Lose your right to be heard. If a former employee who has been disqualified appeals, you will be invited to attend the hearing only as a witness, without the right to present evidence or testimony, question the former employee, or cross-examine other witnesses.
  • Loss of your right to protest benefit charges to your account (even if circumstances are such that you would normally be exempt from such charges)

Review and record approval or disqualification notices.

You will be notified of an approved or disqualified claim if:
  • You are the employer the interested party, and
  • You return the separation request within the required time period
If the claim has been approved for payment, you will receive a determination notice with information about your appeal rights and instructions on how to request a hearing. If you are a base period employer but the claim arose from a subsequent separation from employment and you timely return the DUA information request, your account should not be charged for benefits paid on that claim as long as the former employee separated under disqualifying circumstances. If a charge is made to your account, you have the right to protest the charge to your account.

Control unemployment insurance costs

As an employer, there are many things you can do to control your unemployment insurance costs. You should:
  • Budget and estimates for possible contributions due
  • Update your UI Online account
  • Defend your rights in claims filed by former employees
  • Explore alternatives before laying off employees
  • Rehire the employee after a layoff

How the Unemployment Rate Affects the Forex Market

Unemployment rate affects Forex because it reflects the value of the currency. After the news release, if the rate is more than expected, it indicates a weak economy due to the increasing number of unemployed in that economy. These people are able and willing to work but cannot find jobs. Either they are temporarily laid off, continue to look for work. There is a big difference between the unemployed and those who are not working. Some people may be studying, working from home, disabled or retired.

These people are not part of the labor force and are not included in the unemployment rate. Therefore, to get the unemployment rate, take the number of unemployed workers and divide it by the total civilian labor force. You also need to know that now a trader is a permanent job for some people. You can try it now by trading with the lowest spread on the GICTrade application which you can download on the Google Play Store and Apple App Store. You can also register here!