The large numbers of workers laid off due to the worldwide economical crisis have posed a new challenge to the unemployment insurance system in Chengdu City. Unemployment insurance benefits affects the realization of the unemployment insurance system; effective coverage provided for the unemployed; and the smooth operation and efficiency of the unemployment insurance work. The implementation and the raising of funds for unemployment insurance are to guarantee a smooth effectuation of payments of benefits. By integrating local circumstances, there are a couple of crucial points to consider when establishing the unemployment insurance system for Chengdu City: defining scope of recipients and boundaries of conditions; defining schemes and standards of benefits.