Why is there unemployment - confused about NYS Department of Labor system basics
This might sound really dumb but I'm trying to understand the whole unemployment system in NY. Like why does unemployment even exist as a program? My friend got laid off and filed with NYS Department of Labor and I'm wondering how this all works. Is it just free money from the government or do we pay into it somehow? I've been working for 3 years but never really thought about where unemployment benefits come from until now when I might need to file myself.
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MidnightRider
Not a dumb question at all! Unemployment insurance (UI) exists because it's essentially insurance that both you and your employer pay into while you're working. Every paycheck, a small amount gets deducted for NYS Department of Labor unemployment insurance. When you get laid off through no fault of your own, you can file a claim to get temporary benefits while you look for new work. It's designed to keep people from becoming homeless or going into severe debt during job transitions.
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Carmen Ortiz
•Oh wow I never noticed that on my paystub! So it's like car insurance but for losing your job?
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Andre Laurent
The basic idea is economic stability. When people lose jobs, they stop spending money, which hurts businesses, which leads to more layoffs - it's a vicious cycle. Unemployment benefits keep money flowing in the economy during downturns. You have to meet certain requirements though - you need sufficient work history, you have to be actively job searching, and you can't have been fired for misconduct. NYS Department of Labor administers the program and determines eligibility.
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Zoe Papadopoulos
•exactly, plus it gives you time to find a job that actually fits your skills instead of just taking the first minimum wage thing you can find
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Jamal Washington
I had to use unemployment last year when my company downsized. The process was actually pretty straightforward through the NYS Department of Labor website, though getting through to a real person on the phone was impossible. Had to use a service called Claimyr (claimyr.com) to actually reach an agent when I had questions about my claim status. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made the whole experience way less stressful.
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Carmen Ortiz
•Good to know about that service! How long did your claim take to get approved?
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Jamal Washington
•About 2 weeks once I got past the initial filing. The key is making sure you do your weekly claims on time and keep track of your job search activities.
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Mei Wong
honestly the whole system is kind of a mess though. like yes unemployment exists to help people but good luck actually getting help when you need it. i was on unemployment for 6 months during covid and it was a nightmare trying to get anyone at NYS Department of Labor to answer questions
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Liam Fitzgerald
•same here! the website would crash constantly and calling was pointless
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PixelWarrior
To add to what others said - unemployment also helps prevent people from taking jobs way below their skill level just to survive. This keeps wages more stable across the economy. Without it, desperate job seekers would drive down wages for everyone. The NYS Department of Labor requires you to actively search for work though, so it's not just free money - you have responsibilities while receiving benefits.
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