Is unemployment welfare - confused about NYS Department of Labor benefits classification
I keep hearing different things about whether unemployment benefits are considered welfare or not. My neighbor says I'm basically on welfare now that I'm collecting from NYS Department of Labor, but my friend who works in HR says it's totally different because I paid into the system. I've been getting my weekly claims approved for about 6 weeks now and honestly I'm starting to feel embarrassed about it. Are unemployment benefits actually welfare? Does it matter for anything like taxes or future job applications? I worked for 8 years before getting laid off and paid into unemployment insurance the whole time, so I thought this was just getting back what I put in.
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Effie Alexander
No, unemployment insurance is NOT welfare. You and your employer paid into this system through payroll taxes specifically for this purpose. It's an earned benefit, not public assistance. UI is insurance - just like car insurance or health insurance. You pay premiums (through payroll deductions) and when you need to file a claim, you're entitled to benefits. Welfare programs like SNAP or TANF are need-based assistance that don't require you to have paid into them first.
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Hugh Intensity
•Thank you! That makes so much sense. I was really starting to feel bad about collecting but you're right - I did pay into this for years.
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Melissa Lin
your neighbor is wrong, unemployment is insurance not welfare. i collected for 4 months last year after my company closed and never felt bad about it. we pay for this coverage our whole working lives
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Lydia Santiago
There's a huge difference legally and practically. Unemployment benefits are taxable income that you report on your tax return. They're based on your previous earnings and work history. Welfare programs have strict income limits and asset tests. For job applications, you're unemployed but not on public assistance - totally different categories. Don't let anyone make you feel bad about using benefits you earned.
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Romeo Quest
•exactly this! I had to explain the same thing to my family when I was collecting. They kept acting like I was taking handouts but I reminded them I'd been paying unemployment taxes for 15 years
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Val Rossi
I was so confused about this too when I first started filing my weekly claims! The NYS Department of Labor website actually has good info about how unemployment insurance works. It really helped me understand that this isn't charity - it's a safety net we all contribute to. When I had trouble getting through to speak with someone about my claim status, I ended up using this service called Claimyr (claimyr.com) that helped me connect with an actual NYS Department of Labor agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole process less stressful knowing I could actually talk to someone when I had questions.
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Eve Freeman
•Never heard of that service but might check it out. The phone lines are always busy when I try to call about my claim.
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Clarissa Flair
The whole system is messed up anyway. Whether you call it welfare or insurance, we're all just trying to survive while the government makes it impossible to get through to anyone. I've been dealing with NYS Department of Labor for months and they act like they're doing us favors instead of providing services we paid for.
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Melissa Lin
•I feel you on the frustration but at least we have these benefits available. Could be worse
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