Thursday, November 18, 2010

Department of Labor Study Shows Unemployment Insurance Has Positive Impact on Country

The Department of Labor ("DOL") released a study today that revealed some positive findings regarding unemployment insurance and the impact it has on the country. Some of the key findings were:
--For every dollar spent on UI, economic activity increases by two dollars.
--During each quarter of the recent recession, UI benefits kept an average of 1.6 million Americans on the job.
--At the height of the recession, UI benefits averted 1.8 million job losses and kept the unemployment rate approximately 1.2 percentage points lower.
--UI benefits reduced the fall in GDP by 18 percent. Nominal GDP was $175 billion higher in 2009 than it would have been without UI benefits. In total, unemployment insurance kept GDP $315 billion higher from the start of the recession through the second quarter of 2010.
For more, here is the press release on the study.

Enochs Law Firm

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