What is the primary function of unemployment insurance?

The primary function of unemployment insurance is to provide partial income protection to workers who have lost their jobs through no fault of their own. This program aims to support individuals financially during their period of unemployment, helping them to cover essential living expenses while they search for new employment opportunities.

Unemployment insurance is not designed to fully cover an individual’s salary, which is why the option regarding full coverage is not accurate. Instead, it typically replaces a portion of the worker's previous earnings, often around 40-60%, depending on the specific program and state regulations.

The program also does not focus on creating jobs or directly reducing unemployment rates, which distinguishes it from options that involve job creation initiatives. Additionally, while some unemployment insurance programs may offer support for those looking to start their own businesses, this is not their primary function, which is to provide temporary financial assistance during unemployment rather than to facilitate entrepreneurial activities.

Thus, option that describes unemployment insurance as a program that partially protects workers' incomes when unemployed accurately captures its main objective and function in the context of labor economics.