Unemployment insurance is increasingly recognized as being not just a compensation system but also a tool of employment policy and vocational rehabilitation, and a means of supporting social cohesion and economic growth.
This new approach gives social security institutions administering unemployment insurance a new role, in addition to the traditional task of providing cash benefits. This role has two components:
- intervention measures designed to minimize the risk of loss of employment for those whose employment status is precarious;
- downstream intervention aimed at accelerating the return to work for those who have lost their jobs.
Mechanisms and tools developed by social security institutions to promote preventive and proactive employment policies have formed the basis of a number of projects initiated by the Technical Commission on Employment Policies and Unemployment Insurance.