Why was unemployment insurance created - understanding the NYS Department of Labor system origins

The unemployment insurance system was created during the Great Depression as part of the Social Security Act of 1935. Before that, workers who lost their jobs had no safety net - they either relied on family, charity, or went without income entirely. The massive unemployment during the 1930s (25% at its peak) showed that individual savings weren't enough when entire industries collapsed. The federal government established the framework, but each state like New York runs its own program through agencies like NYS Department of Labor. It's basically designed to provide temporary income replacement while you search for new work.

yeah my grandpa used to tell stories about the depression era when people would just show up at factory gates hoping for work every day with no income coming in if they didnt get picked

It's also worth understanding that unemployment insurance serves an economic purpose beyond just helping individuals. When lots of people lose jobs during recessions, UI benefits help maintain consumer spending which prevents the economy from spiraling further downward. The NYS Department of Labor processes these claims as quickly as possible because getting money into people's hands helps the whole economy. That's why even though the system can be frustrating with adjudications and appeals, it's actually a critical economic stabilizer.

Having trouble reaching NYS Department of Labor about your adjudication delay? I was stuck in the same situation last month - couldn't get through their phone lines no matter when I called. Someone here mentioned using claimyr.com to get connected to an actual agent, and it worked perfectly. They have a demo video at https://youtu.be/qyftW-mnTNI that shows exactly how it works. Saved me weeks of frustration trying to get answers about my pending claim.

The whole system is a mess though. Like sure it was created for good reasons but now it's just this bureaucratic nightmare where they make you jump through hoops and wait forever for basic stuff like getting your weekly claim processed.

thanks for explaining this! always wondered about the history