What GAO Found
State officers GAO interviewed in six chosen states that different throughout traits, akin to IT modernization, described going through shortages of skilled workers and IT challenges in processing the surge in claims whereas implementing the CARES Act Unemployment Insurance (UI) packages. Challenges in implementing federal steerage and sustaining program integrity have been additionally cited. Officials in all the six states reported that they elevated staffing. States additionally added performance to their IT programs. Despite these efforts to reply to the challenges, claimants in GAO’s dialogue teams and advocates within the six states reported persistent customer support issues, akin to lengthy name wait occasions.
Unemployment insurance coverage software
The Department of Labor (DOL) took steps to assist and monitor states’ implementation of the CARES Act UI packages. However, it might have higher assisted states with customer support challenges and lacked a strategic method when responding to the pandemic. DOL is accountable for guaranteeing buyer satisfaction within the UI system, and has taken steps to include customer support into its UI modernization efforts, together with offering states with technical help and funding alternatives. However, it has not recognized and offered states with complete customer support greatest practices. Without sharing greatest practices, DOL could miss alternatives to help states in bettering service supply during times of excessive demand. In addition, whereas as of March 2022, DOL had not assessed its response to the pandemic, as typically really helpful by the National Response Framework, in May 2022, DOL officers stated DOL had begun to take action. Until such a overview is accomplished, DOL and states might not be nicely positioned to deal with future emergencies.
The 30 empirical research reviewed by GAO confirmed the impact of the growth of UI packages throughout hostile occasions, such because the 2007-2009 recession and the COVID-19 pandemic. The expansions particularly helped to stabilize the economic system, prevented detrimental outcomes from worsening, and had a restricted impact on employees’ incentives to return to work. Some of the research additionally confirmed that UI growth had different optimistic advantages akin to an improved labor market.
Why GAO Did This Study
In the wake of the COVID-19 pandemic and subsequent shutdowns, the nation skilled historic ranges of job loss and an growth of the UI system. The CARES Act created three new, federally funded momentary UI packages that expanded eligibility, enhanced advantages, and prolonged profit length. DOL has reported about $658 billion in compensation paid as of April 30, 2022.
The CARES Act features a provision for GAO to observe federal efforts in response to the COVID-19 pandemic. This report examines (1) chosen states’ challenges with implementing the momentary UI packages and efforts to deal with these challenges; (2) DOL’s assist and monitoring of the packages, together with efforts to deal with improper funds; and (3) the financial results of increasing UI advantages in hostile occasions.
GAO interviewed DOL officers and met with officers in six states that have been chosen to incorporate quite a lot of traits, akin to their IT modernization, fee timeliness, and estimated improper fee charges. GAO held dialogue teams with UI recipients within the chosen six states; analyzed knowledge DOL collects from states; reviewed related federal legal guidelines and program steerage; and reviewed financial literature.