Unemployment in the early 1900s meant extreme poverty and hardship as people had no money for food or rent when they lost their jobs. The National Insurance Act of 1911 introduced unemployment benefits that allowed unemployed workers to receive 7 shillings per week for up to 15 weeks, helping them afford necessities while seeking new work. However, many workers were not eligible for these benefits and the program faced criticism for only providing temporary coverage and not aiding those in long-term unemployment. Labour exchanges opened in 1909 to better connect unemployed workers with available jobs locally and help address high unemployment in some areas.

2. Problems facing the
unemployed
In the early 1900s,
unemployment meant
poverty as people had no
money to pay for food or rent.
This was especially a
problem for people in
seasonal jobs, only needed
at certain times.

3. Unemployment benefit
Part 2 of the National
Insurance Act created
unemployment insurance.
Workers paid 2.5 pence per
week from their wages.
They then received 7 shillings
(35p) per week (for 15 weeks
per year) if they lost their job.

4. Unemployment benefit
Before unemployment benefit
was introduced, people losing
their jobs faced extreme
hardship, including hunger
and losing their homes.
This benefit allowed people
without work to continue to
buy food and pay rent, until
they found a job.

5. Unemployment benefit
Unlike Part 1, Part 2 of the
Act only covered some
workers, such as those in
construction, shipbuilding and
engineering.
This meant that most workers
were not covered, particularly
women.

6. Unemployment benefit
In addition, the cover only
lasted for 15 weeks, after
which time a worker got
nothing. People in areas of
high unemployment
continued to face problems.
Other people complained
they could not afford to pay
the weekly contributions.

7. Labour Exchanges
In 1909 Labour Exchanges
were introduced to advertise
jobs available locally.
Workers could also collect
their unemployment benefit.
By 1912, there were 414
Labour Exchanges across
Britain.

8. Rowntree’s poverty study
described one man:
“He was wearing a ragged
coat that was falling apart.
That day he had walked 28
miles looking for work. He
had only bread for breakfast
and supper. His feet were
blistered and swollen; he
looked like a man who had
given up all hope.”

9. Labour Exchanges
Before Exchanges were
introduced, unemployed
people might walk around
their town for hours to check
if any work was available.
Exchanges made it easier to
find a job and workers,
helping businesses and the
unemployed.

10. Labour Exchanges
Many people opposed the
Exchanges, including trade
unions who believed they
would lead to lower wages by
attracting workers from
across the country.
Also, only around 25% of
people found work at Labour
Exchanges.