******************************************************************************
UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

Fact Sheet No. ETA 90-10

UNEMPLOYMENT INSURANCE

How It Works

The Federal-State unemployment insurance system, initiated in the Social
Security Act of 1935, offers the first economic line of defense against the
ripple effects of unemployment.  By cash payments made directly to laid-off
workers, it ensures that at least a significant proportion of the necessities
of life, most notably food, shelter and clothing, can be met on a week-to-week
basis while a search for work takes place.

Conceptually, unemployment compensation is designed to provide benefits to
most workers out of work due to no fault of their own for periods between
jobs.  Except in a few States where there are small employee payments, the
system is financed by a payroll tax on employers. Originally most States paid
benefits for a maximum duration of 13 to 16 weeks' most States now pay a
maximum of 26 weeks; and a few extend duration somewhat farther.

In periods of very high unemployment in individual States, benefits are
payable for as many as 13 additional weeks, up to a maximum of 39 weeks. 
These "extended benefits" are funded on a shared basis:  approximately half
from State funds and half from Federal sources.

Almost all wage and salary workers are now covered the Federal-State system. 
State agencies take applications and administer payments.  States, as agents
of the Federal Government, also pay benefits to veterans with recent service
in the Armed Forces, former civilian federal employees, and workers who lose
their jobs as a result of the nation's trade policies or as a result of a
natural disaster. 

Under regular and special programs, just over seven million people received
$13.9 billion in benefits in Fiscal Year 1989.  In this same period, some 5.4
million employers paid $17.3 billion in state unemployment compensation taxes.

Authorization

Titles III, IX, XI and XII of the Social Security Act; Federal Extended
Compensation Act of 1970; Disaster Relief Act; Trade Act; and Unemployment
Benefits authorized in other Federal statutes.

How To Apply 

Contact a local office of the agency that administers the UI program in your
State.  It should be listed in the State government section of your telephone
directory under such titles as Unemployment Insurance, Unemployment
Compensation, Employment Security or Employment Service.

For Further Information

Write:

Unemployment Insurance Service Employment and Training Administration, U.S.
Department of Labor, 200 Constitution Avenue N.W., Washington, D.C.  20210

In addition, you may or contact any of the Labor Department's regional offices
(addresses and telephone numbers in the Federal Government section of your
telephone directory):

Û Boston   Û New York   Û Philadelphia   Û Atlanta   Û Chicago   Û Dallas

Û Kansas City (MO)   Û Denver   Û San Francisco   Û Seattle

                                                  __________

This is one of a series of fact sheets highlighting U.S. Department of Labor
Programs.  It is intended as a general description only and does not carry the
force of legal opinion.

Press releases are welcome on:
Normandeau Newswire, Modem 212-274-8110, Newsgroup # 5, 46 lines