US unemployment has dropped to 8.6 percent. Most US States provide 6 months unemployment benefits but the rules can change according to unemployment levels. The benefits are funded through payroll taxes and are not means-tested. In NZ on the other hand unemployment benefits are means-tested but open-ended. Many Americans however believe that lengthening the availability of unemployment benefits encourages unemployment. Studies have supported this idea. A Reason Poll asked 1,200 people how long they thought benefits should be available for when someone loses their job?
60 percent think a year or less is enough.
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