UNEMPLOYMENT COMPENSATION

During the greater part of 1974, the problem of persistent, high-level unemployment throughout the nation was ignored. The last quarter of 1974 and the first quarter of 1975 witnessed a surge of joblessness each month. As a result, unemployment soared to a postwar peak of 8.9 percent in April and is still climbing.

Economic predictions for 1975 anticipate further increases in joblessness to higher and higher levels. The only disagreement among responsible observers is the level of unemployment the nation will experience.

Before the enactment of the unemployment compensation program, a rise in the unemployment rate had an even worse effect than it presently does. People who lost their jobs immediately ceased to be consumers, families were reduced to consuming the savings they had struggled to accumulate or even worse, were thrown into immediate poverty. This effect was a cause of the great depression of the 1930s. Unemployment compensation provides an income by which workers may continue to be consumers, pay some of their bills and temporarily keep their heads above water.