NYS Department of Labor unemployment - why is some unemployment good for the economy?
I've been on unemployment for about 6 weeks now after getting laid off from my marketing job and I keep hearing people talk about how some level of unemployment is actually healthy for the economy. This seems backwards to me since I'm struggling to pay rent and buy groceries. Can someone explain what this means? I'm genuinely curious because when I'm at the NYS Department of Labor WorkForce One sessions they sometimes mention economic cycles but never really explain why unemployment would be 'good' for anyone.
9 comments


Dylan Evans
You're asking about what economists call the 'natural rate of unemployment' - typically around 3-5%. This includes people transitioning between jobs, recent graduates entering the workforce, and seasonal workers. It indicates a dynamic economy where people can leave bad jobs to find better ones. Zero unemployment would actually signal economic problems because it would mean no one has flexibility to change careers or improve their situation.
0 coins
Fatima Al-Mansour
•That makes more sense when you put it that way. I guess I was thinking unemployment = bad but really it's about having options to move around?
0 coins
Sofia Gomez
yeah but tell that to my landlord lol... been filing my weekly claims for 2 months and still can't find anything in my field
0 coins
StormChaser
•Have you been keeping up with your job search requirements? NYS Department of Labor requires 3 job contacts per week. Also if you're having trouble reaching them about extending benefits or checking your claim status, I used this service called Claimyr (claimyr.com) that helps you actually get through to a real person. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Way better than sitting on hold for hours.
0 coins
Dmitry Petrov
From a macro perspective unemployment serves as a labor market buffer. When companies need to expand they have a pool of available workers. When they need to contract during downturns workers have temporary income support through UI benefits. It's essentially economic shock absorption that prevents more severe boom-bust cycles.
0 coins
Ava Williams
•This is exactly right. Plus unemployment insurance acts as automatic economic stimulus during recessions since unemployed people spend their benefits immediately on necessities.
0 coins
Miguel Castro
I get the theory but the NYS Department of Labor system is so broken that being unemployed feels more like punishment than economic flexibility. My adjudication has been pending for weeks with no explanation.
0 coins
Zainab Ibrahim
The key thing to remember is that while some unemployment is structurally necessary for a healthy economy, that doesn't mean individual unemployment isn't challenging. You're still dealing with real financial stress even if your situation serves a broader economic function.
0 coins
Fatima Al-Mansour
•Thanks, that actually helps me feel less like I'm just a burden on the system. Still hope to find work soon though!
0 coins