Congress Urged by Labor Department to Aid in Improving Unemployment Insurance Tech and Delivery
The US Labor Department has unveiled a transformation plan to strengthen the unemployment insurance (UI) system in the wake of the pandemic. It has called on Congress to revamp funding for the program, expand eligibility, and introduce measures to prevent fraud. The unprecedented unemployment crisis triggered by COVID-19 revealed several flaws within the system, including inadequate administrative resources and outdated IT systems. Despite these issues, the department facilitated benefits for over 53 million people during the pandemic, injecting an estimated $880 billion into the economy. However, the Labour Department warns that without congressional support, ARPA (American Rescue Plan Act) funds may run dry, leaving the system unable to cope with future downturns. The department is also calling for benefits to be extended to currently ineligible workers, such as independent contractors and others left out of current provisions. It also advocates for better enforcement options to ensure state agencies adhere to civil rights and access protections.
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