Unemployment intended as a bridge

Commentary

When Congress established the Federal Unemployment Tax Act (FUTA) in 1935, it was intended to provide temporary and partial income replacement for workers who lost their jobs through no fault of their own. It was supposed to be a “bridge” to a new job and not “in lieu of compensation” to remain jobless.

The coronavirus pandemic produced massive layoffs. The resulting economic downturn swelled the ranks of unemployed Americans by more than 14 million — from 6.2 million in February to 20.5 million in May 2020, Pew Research reported. The unemployment rate jumped from 3.8 to 13 percent.

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