<p>It is included. It is a transfer payment, so the trick is to ensure that the income flow is only counted one time in the national accounting.</p>

<p>Statistics Canada, National Gross Domestic Product by Income and by Expenditure Accounts <a href="http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&amp;SDDS=1901" rel="nofollow noreferrer">link to description</a></p>

<blockquote>
  <p>The Income and Expenditure Accounts record the distribution and use of
  income by the six main institutional sectors: households, non-profit
  institutions serving households, general governments, non-financial
  corporations, financial corporations and non-residents. These accounts
  articulate revenues to the sector (including current transfers from
  other sectors, <strong>such as employment insurance received</strong>) and current
  expenditures of the sector (including transfers to other sectors, such
  as income taxes paid to government).</p>
</blockquote>

<p>("Employment insurance" is the Canadian equivalent of unemployment insurance.)</p>

CC BY-SA 3.0
2017-04-20T11:34:58.753Z
2017-04-20T11:34:58.753Z
Brian Romanchuk
<p>Since unemployment benefit is a form of government spending, which is a component of aggregate expenditure, then shouldn't unemployment benefits be part of national income measurement?</p>

<national-income>
Is unemployment benefit part of national income measurement?
tsp216
# Is unemployment benefit part of national income measurement?

(Asked by: username_0 on 2017-04-20)

Since unemployment benefit is a form of government spending, which is a component of aggregate expenditure, then shouldn't unemployment benefits be part of national income measurement?

**Tags:** national-income

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## 1 answers

### Answer by username_1 on 2017-04-20. Score: 2

It is included. It is a transfer payment, so the trick is to ensure that the income flow is only counted one time in the national accounting.

Statistics Canada, National Gross Domestic Product by Income and by Expenditure Accounts [link to description](http://www23.statcan.gc.ca/imdb/p2SV.pl?Function=getSurvey&SDDS=1901)

> The Income and Expenditure Accounts record the distribution and use of
> income by the six main institutional sectors: households, non-profit
> institutions serving households, general governments, non-financial
> corporations, financial corporations and non-residents. These accounts
> articulate revenues to the sector (including current transfers from
> other sectors, **such as employment insurance received**) and current
> expenditures of the sector (including transfers to other sectors, such
> as income taxes paid to government).

("Employment insurance" is the Canadian equivalent of unemployment insurance.)


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