What Does Displaced Homemaker Mean?
The term Displaced Homemaker is described in the Workforce Investment Act of 1998 as a person who has been providing unpaid services to family members in the home and is now no longer supported by a family member and is underemployed or unemployed and having a difficult time finding an upgrade on his employment status.

This category was mainly established to provide support to stay-at-home individuals (either parent or any other) that for different circumstances, such as divorce, death or a sudden reduction of household income, has to generate income quickly. After being absent from the labor market for a while it is normally difficult for these individuals to get a decent job and the purpose of this unemployment benefit is to help them get back on their feet.

Example
Mrs. Susan is a 38 year old mother living in Los Angeles. She has a 7-year old daughter and ever since she was born she decided to be a stay-at-home mom. Her husband works at a local store and he provides the financial means for the family to live under decent conditions. A few weeks ago, her husband died due to a heart condition, leaving Mrs. Susan a widow with no financial support.

The family had some money saved but she estimates that the money will only last 6 months. She now has to find a job in order to support her daughter’s needs and her own. According the Workforce Investment Act, Mrs. Susan also qualifies as a displaced homemaker and she can apply to get financial support, this will help her to put everything in order and have enough time to find a job that suit her possibilities and skills.