Unemployment insurance is similar to long/short term disability insurance (that's why it's called insurance!). You and your employer both contribute to unemployment insurance. If you work for someone who does not contribute (i.e. small business, self-employed), and you yourself do not contribute, you are not eligible.

Unemployment insurance is not welfare. You and your employer have both been paying for it all along. It's no different than if you have short-term disability insurance and break a leg. It also doesn't last forever. Your eligibilty only lasts as long as you've paid in. I don't know much more about it, I'm sure it's probably subsidize by the gov, but alot of insurances are, like flood and windstorm.

This is how it works in TX, is CA similar?