The Unemployment Compensation Program or Unemployment Insurance is established to insure workers against loss of wages during times of temporary unemployment. It is neither welfare nor a relief program, but rather an insurance program for the benefit of qualified unemployed workers‘

Unemployment Insurance’ should not be mistaken to ‘DOLE’, for Dole means “a grant of Government funds to the poor, distribution of food, money or clothing to the needy or extending required help to the poor and needy”.

Unemployment Insurance in the United States is organized as a federal state system and provides basic income support for unemployed workers. Wage earners who are laid off or otherwise involuntarily become unemployed (for reasons other than misconduct) receive a partial replacement of their pay for specified periods.

Each state operates its own program but must follow certain federal rules. The amount and duration of the weekly unemployment benefits are based on a worker's prior wages and length of employment. Employers pay taxes into a special fund based on the unemployment and benefits-payment experience of their own work force.

The federal government also assesses an unemployment insurance tax of its own on employers. States hope that surplus funds built up during prosperous times can carry them through economic downturns, but they can borrow from the federal government or boost tax rates if their funds run low. States must lengthen the duration of benefits when unemployment rises and remains above a set "trigger" level. The federal government may also permit a further extension of the benefits payment period when unemployment climbs during a recession, paying for the extension out of general federal revenues or levying a special tax on employers. Whether to extend jobless-pay benefits frequently becomes a political issue since any extension boosts federal spending and may lead to tax increases.

The Department of Labor's Unemployment Insurance (UI) programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own, and meet certain other eligibility requirements.

State Unemployment Insurance: The Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined under state law), and meet other eligibility requirements of state law.

Disaster Unemployment Assistance (DUA): Disaster Unemployment Assistance provides financial assistance to individuals whose employment or self-employment has been lost or interrupted as a direct result of a major disaster declared by the President of the United States.

Unemployment Compensation for Federal Employees: The Unemployment Compensation for Federal Employees program provides benefits for eligible unemployed former civilian federal employees.

Unemployment Compensation for Ex-Service members: The Unemployment Compensation for Ex-Service members program provides benefits for eligible ex-military personnel.

Extended Benefits: Extended Benefits are available to workers who have exhausted regular unemployment insurance benefits during periods of high unemployment.

Trade Readjustment Allowances (TRA): Trade Readjustment Allowances are income support to persons who have exhausted Unemployment Compensation and whose jobs were affected by foreign imports.

Self-Employment Assistance: Self-Employment Assistance offers dislocated workers the opportunity for early re-employment.

Unemployment Insurance is the main pillar of support for unemployed workers. These benefit payments are critically important in maintaining family income, reducing poverty and alleviating economic hardship, particularly during periods of long-term unemployment. These benefits also assume a larger role during periods of long-term unemployment.

This Unemployment Insurance in the United States of America is provided only by the Federal Government, Department of Labor and not by any Private Insurance Players.