WASHINGTON, D.C. (BNO NEWS) — Secretary of Labor Hilda L. Solis on Wednesday acknowledged the importance of the Unemployment Insurance program on its 75th anniversary.

“The passage of the Social Security Act in 1935 created a lifeline for workers who lose jobs through no fault of their own. The Unemployment Insurance program has been there to help these individuals bridge the gap between layoffs and re-employment. The program provides much needed income support that helps workers stay in their homes and put food on the table while seeking out new jobs,” Solis said.

Solis explained that the federal-state program was created during the Great Depression, as the U.S. has been facing the most serious economic situation since that time.

“Beyond the benefit to individual workers, Unemployment Insurance provides an important boost to the nation’s economy. Unemployment Insurance recipients spend their benefits on food, fuel, utility bills and other necessities. Every dollar that goes into the program results in $1.60 in economic output,” Solis added, stating that when consumers lose jobs and cannot spend, businesses suffer.

“The recent recession has placed an increased demand on the Unemployment Insurance system. In response, Congress and the administration have extended benefits on more than one occasion. Workers in some states now can receive up to 99 weeks of unemployment benefits,” the secretary explained, underlining that those unable to find work quickly can earn an associate degree or professional certification with the extended period of eligibility.

Solis continued to explain that these academic steps help workers to become immediately employable and to ensure that they have jobs over the long run.  

“This anniversary is also an opportunity to acknowledge the challenges faced by those individuals who are receiving unemployment benefits. We at the U.S. Department of Labor know that this support can never replace a job, and we will continue to work diligently to ensure that our employment and training programs prepare participants for good careers in promising fields.”

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