Collecting unemployment is often necessary for some to get by financially – at least for a short period of time. With the recent pandemic, our nation has been fortunate enough to provide many workers who lost their jobs with some financial assistance. However, the benefits of unemployment compared to the benefits of full-time employment are meager. When you consider the opportunities and advantages of working versus collecting unemployment, the decision becomes quite obvious. Learn more about how the unemployment system works and why you might want to consider getting back to the grind.
The Opportunity Cost
Collecting unemployment benefits for an extended period results in the opportunity cost of not being able to grow within an organization. While you remain on unemployment, other job seekers are taking jobs, learning new skills, growing their network, and getting promoted. You also miss out on the opportunity to establish yourself as a serious employee and gain the experience you need to be successful in your career.
Willingness to Hire Now
Most businesses are finding it difficult to recruit possible candidates for their open positions, making them more willing to hire inexperienced applicants. Because of the lack of employment candidates available, hiring authorities are now more likely to hire and train even with minimal or no prior experience. Unfortunately, unemployment resources are temporary and your benefits will run out. Why wait until then to find employment when there are so many opportunities now? And there are no guarantees that will work will be available when you need it.
Time and Effort
Obtaining unemployment benefits doesn’t necessarily come easily and requires a bit of leg-work to maintain. Beneficiaries of unemployment payments must actively be looking for work. To do this, they’ll prepare and submit several job applications each week, which takes a considerable amount of time to complete. Also, keep in mind that unemployment beneficiaries have to accept the first job prospect that presents itself, even if the job is not desirable. This also means that the ability to look for more lucrative work is less probable.
Costly Tax Mistakes
With most jobs, employees don’t have to worry about taxes being withheld because their employer handles this for them. Unemployment payments are considered fully taxable income. However, federal tax laws do not require state unemployment agencies to withhold taxes from your unemployment check. It is your responsibility to ensure that your taxes are properly paid from your unemployment check. Failure to do so will likely result in a large tax bill, and without consistent pay, this could be impossible to pay.
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