Unemployment Insurance Reform

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Unemployment Insurance-Reform-Memo
The global recession and the recent coronavirus pandemic have brought significant damage to the economy. Many people lost their jobs and hence the increase in unemployment rates. The Unemployment Insurance is an effective solution by the Social Security Act enacted in 1935. The insurance has helped several people after retirement. However, the policymakers have ignored the scheme, putting many unemployed people at risk of joblessness challenges. Therefore, it is essential to undertake crucial reforms to transform it into a useful tool for the unemployed.
The main challenge facing the program is the lack of sufficient funding. The increasing unemployment rate and the global recessions also mean that members have challenges raising the requisite amount. While analysts and policymakers have fronted various proposals on reviving the program, the most effective approach would be to increase its tax net by incorporating self-employed and gig workers into the system. This move will ensure more contributions, which will translate into more funds for the program. As the population continues to increase without a corresponding increase in the employment rates, many people will become self-employed as they seek to sustain themselves. Therefore, inviting this group of individuals into the program will guarantee its continuity and improve its effectiveness.
As the government encourages self-employed individuals to enroll in the program, efforts should be directed at educating these indivi...