What does unemployment insurance provide benefits to?

• A. Newly hired employees
• B. Individuals laid off from work
• C. Part-time workers
• D. Those who switch jobs voluntarily

Answer: (B)

Unemployment insurance is specifically designed to provide financial assistance to individuals who have lost their jobs through no fault of their own, such as being laid off due to company downsizing or other economic reasons. This program helps to support these individuals by offering temporary financial assistance while they seek new employment.

Individuals who are laid off from work typically qualify for these benefits, as the program aims to ease the financial burden during a transition period. This is crucial in a free enterprise system where job security can be uncertain, as it allows unemployed individuals access to funds for essential needs despite their lack of income.

Newly hired employees generally do not qualify because they have not yet established a history of employment with a particular company that would warrant benefits. Part-time workers may not qualify under the same standards as full-time employees, particularly if their earnings do not meet the minimum requirement set for benefits. Similarly, those who voluntarily switch jobs often do not receive unemployment insurance, since they have chosen to leave their position rather than being involuntarily separated from their job.