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Experts propose “Jobseekers Allowance” to aid gig economy workers

Independent contractors may soon receive some unemployment benefits when between gigs.

A package of proposals from The Center for American Progress, Georgetown Center on Poverty and Inequality, and the National Employment Law Project are pushing for changes to the unemployment insurance system. The current system does not take into account gig economy workers. Nor does it account for those new to the workforce or workers reentering the workforce due to family issues or illness. The proposed Jobseekers Allowance would help on-demand workers when they’re between jobs and assist others who are unconventionally unemployed, as they look for work.

“We are at a historic low in terms of jobless workers having access to unemployment protections–only about one in four jobless workers receives UI benefits today,” said Indivar Dutta-Gupta, director of the Georgetown Center on Poverty and Inequality’s Project on Deep Poverty. “The failure to modernize our UI system hurts us all but has a disproportionately negative effect on women, low-paid workers, younger workers and workers of color.” Quotes, Ellyn Fortino of Progressive Illinois.

The average unemployment insurance awarded to ex-employees is about $336 a week for a max of 26 weeks. While Jobseekers allowance would award $150 for 13 weeks. The latter is far from a liveable wage but the $150 proposed for those outside of the traditional workforce is next to impossible to live off of, but it’s a start.



Image Source: businessnewsdaily.com
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