WASHINGTON – Acting Secretary of Labor Julie Su called on Congress to modernize the nation’s unemployment insurance system in an opinion piece published online Aug. 16, 2024, by The American Prospect. In addition to recognizing the Biden-Harris administration’s success in promoting a strong job market, the Acting Secretary argues federal legislators must take the necessary steps to modernize our unemployment insurance system before the next crisis.
The article details the Department of Labor’s comprehensive plan to transform the UI system and highlights how the department has successfully improved the timeliness of benefits delivery, made access to benefits more equitable and helped prevent fraud with the support of President Biden’s American Rescue Plan.
“A Safety Net for Unemployed Workers,” includes the following excerpts:
- “I have likened the unemployment system to a house with a leaky roof. The holes in it have been around for decades. When unemployment is low, the leaks are manageable but in a storm, the inadequacy of our existing system is glaring. But once the storm subsides, so do calls for fixing the roof. We can’t keep making the same costly mistake.”
- “Under President Biden’s leadership, the United States has added nearly 16 million jobs, and average unemployment has been lower than during any administration in 50 years. We must make the repairs before the next storm, to build a UI system that will serve the American people when it is most needed.”
- “The Department of Labor has developed a comprehensive plan to transform the UI system. First and foremost, the plan starts by calling for adequate funding for state programs with grants that match the actual cost of running the UI system today. It also details the policy and technological changes needed to ensure that states can respond to future economic crises and pay benefits accurately and timely to all eligible individuals who experience a loss of work.”
- “In its current form, unemployment insurance is unable to deliver the safety net that America needs. Too many workers continue to fall through the system’s cracks. Recent data reveals that fewer than 3 in 10 unemployed workers received benefits in 2023. Workers of color feel this most acutely, and study after study shows they are more likely to be out of work but less likely to receive benefits.”
- “In fact, it was these holes in the program that led Congress to enact the temporary pandemic programs. But as hard as the states worked to implement these new programs, building the plane while flying led to inevitable turbulence.”
- “If we’re able to truly transform and modernize the system, it would be a tremendous benefit to businesses, workers, and the entire economy. Congress cannot and should not squander this opportunity to safeguard our workers for the long term. Now is the time to invest in robust unemployment insurance reform.”
