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Juozas Tartilas

Abstract

The human work is being replaced by the technical progress and new technologies. It seems like the social cataclysms of Middle Ages revived: the miserable steam machines made much of people unemployed, took off their peace of bread, then the society had to face the social problems.
The modern man of twenty first century is not able to avoid the revival of such a problem. While the unemployment rate was low, the social assistance was given and the unemployment allowances paid to families suffering unemployment, but the rising unemployment rate forced the society to take some cardinal measures – to enforce the unemployment insurance. The main issue of this article is the unemployment problem, its reasons, and possible means of fighting it. The unemployment insurance, which came into force on the 1st of January 2005, is the more progressive form or social security replacing the unemployment allowances. It is more acceptable both in psychological and economical aspects because the unemployment insurance may guarantee the unemployed persons under social risk the benefit of 700 – 900 Lt. ensuring their human existence in society.
The unemployment is becoming the global problem, while in social security it is one of the principal problems.
The unemployment insurance is more progressive form of social security because it differentiates the rates of insurance benefits according to the contribution of insured person to its work activity (period, wages).
The concept „unemployment insurance“ is more acceptable than the previous one of „unemployment allowance“ which humiliates the person’s dignity.
The unemployment insurance will strengthen the motivation of legal work because each worker will be interested in receiving the legal payment making the unemployment insurance benefit higher.
The new insurance system is an effective precautionary measure for untaxed salary in the „envelope“, because the worker becoming unemployed will realise those contracts are unacceptable for him in the financial way too.

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Section
Articles