ECONOMICS

Detailed explanation-1: -Unemployment Allowance is provided to workers losing their jobs under no fault of their own (on account of closure of factories, retrenchment or permanent invalidity of at least 40% arising out of non-employment injury). Unemployment allowance is the 50% of an insured worker’s daily average earnings.

Detailed explanation-2: -Unemployment benefit is money that some people receive from the state when they do not have a job and are unable to find one. That year more than three million were receiving unemployment benefit. Unemployment benefits are directly related to previous earnings.

Detailed explanation-3: -In India, Unemployment allowance is given to workers who have contributed to the Employees’ State Insurance for at least three years. The benefit is given for a maximum of one year and is either 50% of the average daily wage or Rs 35, 000 a month, whichever is lower.

Detailed explanation-4: -People are classified as unemployed if they meet all of the following criteria: They do not meet the definition of “employed” above; They are available for work; and. They have made specific efforts to find employment some time during the prior four weeks.

Detailed explanation-5: -There are three main types of unemployment – cyclical, structural and frictional unemployment.