Unemployment insurance: What to do during growth?

During the recent financial crisis, unemployment insurance served as a countercyclical measure instrument for nations that had them in place. The benefits of these instruments were reinforced by increases in the duration of benefits and their integration with job retention programmes. In a phase of economic recovery and employment growth like the one we are experiencing today, there is a need to evaluate the operation of this insurance and the impact of the reforms applied in order to strengthen them and determine which changes are to be institutionalised. The main contribution of unemployment insurance to an economic recovery process with job creation is improved efficiency of the job search process to help workers find positions that match their skills during the time when they receive benefits. Adequate design can contribute to a better fit between job supply and demand by improving the quality of searches for new employment as well as attaining productivity increases associated with better wages in the new job. In this sense, unemployment insurance and active labour market policies should be better coordinated. Developing appropriate and integrated intermediation and training services will allow beneficiaries to take advantage of the new opportunities for productive employment created by an expanding economy. Countries that have yet to introduce unemployment insurance should consider the possibility of including this insurance in their social protection systems in order to improve their position in a future crisis.