*Associate Professor, Emeralds Advanced Institute of Management Studies, Tiruapti, India
**Assistant Professor, Emeralds Advanced Institute Management Studies, Tiruapti, India
Online published on 3 June, 2015.
In 1932, in the midst of the Great Depression, Wisconsin became the first state in the U.S. to enact an unemployment insurance law. On August 14, 1935, President Franklin Delano Roosevelt signed into law the Social Security Act, which contained provisions for old age insurance, welfare, and unemployment insurance. The Unemployment Insurance program provides temporary cash benefits to individuals who are unemployed through no fault of their own, so that they can meet their basic financial needs and provide for their families while searching for new employment. These benefits help to maintain an individual's purchasing power; they are spent immediately on necessities such as food, fuel and housing, and thus provide an important stimulus for local economies. New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market.
Continuing claims refers to unemployed workers that qualify for benefits under unemployment insurance. In order to be included in continuing claims, the person must have been covered by unemployment insurance and be currently receiving benefits. The present article analyses the correlation between the continuing jobless claims and NASDAQ and after analyses it is found that there is a negative correlation between continuous jobless claims and NASDAQ which shows as jobless claims increases, NASDAQ will be affected adversely.
