In times such as those, often all people had left was their pride. Before unemployment insurance or other state assistance existed, people's only recourse was to survive on their own or to "take charity" from family members, their local church, or other community organizations. Accepting such charity was unthinkable to many people then. Unfortunately that attitude has been passed to the next generation, making it difficult for some people to apply for government benefits when they need them.
There are two very important reasons to apply for unemployment compensation: first, you need it; second, the company that laid you off pays for it.
If you have just lost a job, your own feelings of self-worth may be taking it on the chin. Applying for unemployment compensation may make you feel as though you have failed in some way.
As you struggle with these feelings and concerns, remember that you are doing something that is best for your family. You do need the money. Even though you have lost a job, the rest of the world continues: Bills arrive, schools charge for books, dentists find cavities. If you think of unemployment compensation as an essential pan of your family's well-being, you will realize that their survival is more important than your concerns over accepting what may seem like a handout.
"Every time I had to go to the unemployment office I would dress to the nines," one woman recalls. "I was making a statement. I wanted people to think that this was just a temporary thing, that I really didn't belong in the unemployment line. Most of all, I wanted to believe it myself."
The second important reason to apply for unemployment compensation is that the company that laid you off pays for it, Unemployment compensation was legislated as a result of massive unemployment in the 1930s. The federal government designed the overall compensation system, allowing individual states to make changes to the basic formula. The basic formula, though, operates like any other kind of insurance a business purchases to insure itself against harm. The only difference is that businesses are required by law to participate in the insurance program.
Under laws that govern unemployment compensation, a company must pay into the insurance system proportional to the need that the company creates. In other words, a company that consistently fires a lot of people will have to pay higher unemployment compensation premiums. However, the only way the unemployment office knows that an individual has been laid off is if that person applies for compensation. In other words, if you do apply for compensation, you are actually doing your former employer a favor by allowing him or her to pay lower insurance premiums than the law actually allows. Think of it this way: When you apply for compensation, the company's premiums go up. Not that a revenge motive should operate here, but it can be a great way to vent some of your anger!
In short, by working for the company that let you go, you have earned the benefit of unemployment compensation. Philosophically, there is absolutely no difference between unemployment compensation and the medical or dental benefits you received as an employee. The only difference is that you can only use the unemployment benefit when you are out of work. In fact, most employees never use this important company "benefit." The same is true of unemployment compensation. Your company has paid into the system. When you are unemployed and need the money, you get your chance to get something back. You need the money and you have earned it. The only thing left to do is apply for it.
