What is the primary purpose of Unemployment Compensation?

The primary purpose of Unemployment Compensation is to support unemployed workers. This safety net is designed to provide temporary financial assistance to individuals who have lost their jobs through no fault of their own, helping them to meet basic living expenses while they search for new employment. The program not only aids individuals financially but also contributes to overall economic stability by maintaining a level of consumer spending during times of unemployment.

Other options do not accurately reflect the primary focus of Unemployment Compensation. For instance, while providing financial incentives for employment may be an outcome of individuals seeking work, it is not the core purpose of the program. Additionally, the encouragement for businesses to hire more employees is more aligned with job creation programs rather than unemployment benefits themselves. Lastly, financing retirement plans is unrelated to unemployment compensation, which specifically targets support for those currently without jobs rather than long-term benefits associated with retirement.