NYS Department of Labor historical question - what led to the decline unemployment after 1933?
Working on a research project about unemployment trends and I'm curious about the factors that led to declining unemployment rates after 1933. I know this was during the Great Depression era, but what specific policies or economic changes helped reduce joblessness? Does anyone know how this relates to the development of modern unemployment insurance systems like what we have with NYS Department of Labor today? I'm particularly interested in how the foundation for today's UI benefits was established during that period.
7 comments
Join the conversation
Jacob Lee
The New Deal programs were the main driver - Works Progress Administration (WPA), Civilian Conservation Corps (CCC), and other federal employment programs. The Social Security Act of 1935 also established the unemployment insurance system that evolved into what we use today through NYS Department of Labor. These programs put millions back to work and created the safety net framework we still rely on.
0 coins
Ava Harris
•That makes sense! So our current UI system with weekly claims and job search requirements traces back to those 1930s reforms?
0 coins
Emily Thompson
Don't forget about the banking reforms and increased government spending on infrastructure. The Federal Deposit Insurance Corporation stabilized the banking system, which helped businesses get loans again. Also, World War II mobilization starting in the late 1930s created massive demand for workers in defense industries.
0 coins
Sophie Hernandez
•Yeah the war economy was huge for employment. My grandfather always talked about how everyone could find work in the factories during that time.
0 coins
Daniela Rossi
This is fascinating from a policy perspective. The unemployment insurance system established then required states to create their own programs - that's why we have NYS Department of Labor handling our claims rather than a federal system. Each state had to meet federal standards but could implement their own procedures for things like adjudication and job search requirements.
0 coins
Ava Harris
•Interesting! So the state-by-state approach we have now was intentional from the beginning, not something that evolved later.
0 coins
Ryan Kim
just wanted to add that agricultural programs also played a role, especially the Agricultural Adjustment Act. farming was still a huge employer back then so stabilizing farm incomes helped rural unemployment too
0 coins