The fiscal fix our unemployment insurance systems need

Source: Niskanen Center
by Will Raderman

“Four years after Congress passed the CARES Act and opened up crucial assistance to jobless workers, costly unemployment insurance system malfunctions remain unresolved. During the COVID-19 pandemic, state UI agencies experienced an overwhelming surge of benefit applications. Criminals took advantage of this disarray, ultimately stealing as much as $135 billion. Inadequate communication between states and poor use of available data verification networks, in particular, made it difficult to distinguish between legitimate claimants and fraudsters. State UI agencies have begun addressing an array of technical shortcomings, but Congress still has not addressed a core problem that prevents them from making durable investments in program integrity: decades of declining and volatile federal support for UI administration.” (05/15/24)