Department of Labor
The benefits paid help maintain purchasing power which many consider the key to business prosperity. In this way, unemployment compensation promotes economic stability and helps to stave off the downward cycles that lead to economic depressions. Businessmen credit this program with playing an important part in bringing about quick recoveries from business recessions.
Your contributions (taxes) paid to the Virgin Islands Government are used exclusively for payment of unemployment benefits to individuals who are eligible under the law. Your Federal unemployment taxes paid under (FUTA) are used primarily to finance the administration of the unemployment insurance and employment service programs in the Virgin Islands.
For the purposes of the unemployment compensation and employment service
programs, the Virgin Islands is treated as a state.