NYS Department of Labor - what caused the dramatic jump unemployment in early 1930s according to benefits history?
I'm researching unemployment history for a project and trying to understand what caused the dramatic jump unemployment the early 1930s. I know this was way before modern NYS Department of Labor systems existed, but I'm curious if anyone knows how unemployment benefits evolved from that crisis to what we have today. My great-grandfather apparently lost his job in 1931 and there was no safety net like we have now with weekly claims and job search requirements. Does anyone know what factors led to such massive unemployment back then and how it shaped our current unemployment insurance system?
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Emma Garcia
The dramatic jump in unemployment during the early 1930s was primarily caused by the Stock Market Crash of 1929 and the subsequent Great Depression. Bank failures, business closures, and reduced consumer spending created a domino effect. There was no federal unemployment insurance until the Social Security Act of 1935, which eventually led to state programs like what became NYS Department of Labor unemployment insurance. Before that, people relied on charity and local relief programs.
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Aiden Rodríguez
•That makes sense about the domino effect. It's crazy to think people had no unemployment benefits at all back then. Makes me appreciate being able to file weekly claims through my.ny.gov even when the system is frustrating.
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Ava Kim
Multiple factors converged - the stock market crash wiped out investment capital, banks failed which reduced lending, international trade collapsed due to tariffs like Smoot-Hawley, and agricultural prices had already been falling throughout the 1920s. Unemployment went from about 3% in 1929 to 25% by 1933. The unemployment insurance system we use today through NYS Department of Labor was actually created as a direct response to this crisis.
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Ethan Anderson
•25% unemployment rate?? That's insane. And here I am complaining when my NYS Department of Labor claim takes 3 weeks to process. Really puts things in perspective.
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Layla Mendes
if you're having trouble reaching nys department of labor for research or anything else, i found this service called claimyr.com that helps you get through to agents. they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. might be useful if you need to speak with someone about historical records or current claims
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Aiden Rodríguez
•Thanks for the tip! I might need that if I decide to dig deeper into NYS Department of Labor historical records for my project.
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Lucas Notre-Dame
dont forget the dust bowl too! that made everything worse especially for farmers. whole families had to migrate looking for work but there wasnt any. at least now if you lose your job you can file for UI benefits and do your job search requirements while you look for something new
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Aria Park
The unemployment insurance system was revolutionary when it started. Before 1935, if you lost your job, that was it - no weekly payments, no job search assistance, nothing. The Great Depression showed how quickly economic disaster could spread, so they created these state-administered programs funded by employer taxes. That's basically still how NYS Department of Labor unemployment works today, just with modern technology and updated eligibility requirements.
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Aiden Rodríguez
•That's fascinating about the employer taxes funding it. I never really thought about where the money for unemployment benefits actually comes from. Makes the whole system make more sense.
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