- The Ghent municipal authority first opted to subsidize trade union programs with public funds in 1901. This system, or those very similar to it, spread through countries in Europe that made extensive use of strong labor unions. Sweden, Norway, Finland, Belgium, Denmark and others used this system. When workers are displaced, they are provided benefits via the trade union they were a member of. Because they must be a member of a union in order to receive benefits, this had the effect of bolstering union membership. Though trade unions in Sweden were among the first to provide benefits in this manner (in the 1870's), governments were generally not involved until Ghent.
- The United Kingdom developed its own program in 1911. Initially, this program only covered certain industries that were prone to high unemployment. Later, more industries were added and, in 1920, the program was overhauled to cover all wage earners. The first system was financed wholly by the state, while later incarnations had state contributions in proportion to contributions made by employers and deducted from workers' wages. Unlike Ghent, the U.K. system did not, and still does not, place priority on trade union membership.
By Jake LeBrun
Whether economic times are harsh or booming, there are always individuals who are temporarily out of work and have needs to be met. While neighborly charity and religious programs have existed for centuries, formal employment insurance programs are a relatively recent innovation.
Read more: The History of Employment Insurance | eHow.comhttp://www.ehow.com/about_6392851_history-employment-insurance.html#ixzz13jsC0H7B
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