When was the Federal-State Unemployment Insurance System initiated?

When was the Federal-State Unemployment Insurance System initiated?

• A. 1929
• B. 1935
• C. 1945
• D. 1950

Answer: (B)

The system began in 1935, created by the Social Security Act to establish a nationwide unemployment insurance program run through a federal‑state partnership. The federal government set the framework and funding, while states administered benefits under federal guidelines. This setup was designed to provide temporary income to workers who lost their jobs during the Great Depression and to help stabilize the economy. It didn’t start in 1929, which was the Depression’s onset but predates the program’s creation, nor in 1945 or 1950, which are postwar years.

The system began in 1935, created by the Social Security Act to establish a nationwide unemployment insurance program run through a federal‑state partnership. The federal government set the framework and funding, while states administered benefits under federal guidelines. This setup was designed to provide temporary income to workers who lost their jobs during the Great Depression and to help stabilize the economy. It didn’t start in 1929, which was the Depression’s onset but predates the program’s creation, nor in 1945 or 1950, which are postwar years.