unemployment compensation

noun

: compensation paid at regular intervals (as by a government agency) to an unemployed worker and especially one who has been laid off

called also unemployment benefit

Examples of unemployment compensation in a Sentence

Recent Examples on the Web

Meanwhile, the Labor Department reported a higher-than-expected rise in weekly jobless claims, with unemployment compensation filings hitting their highest level since October 2021. — CNBC's Jeff Cox, Sarah Min and Sean Conlon contributed reporting. —Pia Singh,ganesh Rao, CNBC, 15 Sep. 2025

For federal income tax purposes, unemployment compensation is taxable: this includes your state benefits and the $600 payment from the feds. —Kelly Phillips Erb, Forbes.com, 10 Sep. 2025

While Elliott has been concerned about Lamont’s moderate stances for years, the issue spiked to a new level recently among liberals when Lamont vetoed two controversial bills on affordable housing and awarding unemployment compensation benefits to striking workers. —Christopher Keating, Hartford Courant, 14 July 2025

Unemployment payments for millionaires: Federal funds cannot be used for unemployment compensation benefits for millionaires. —Aliss Higham, MSNBC Newsweek, 3 July 2025

Word History

First Known Use

1935, in the meaning defined above

Rhymes for unemployment compensation

• deindustrialization
• immunoprecipitation
• individualisation
• individualization
• institutionalisation
• institutionalization
• internationalization
• neovascularization
• operationalization
• abbreviation
• abomination
• acceleration

Legal Definition

unemployment compensation

noun

un·​em·​ploy·​ment compensation

: compensation paid at regular intervals (as by a state agency) to an unemployed worker and especially one who has been laid off

called also unemployment benefit

Note: Unemployment compensation is usually a fixed percentage of the former wages of an unemployed worker.