Unemployment Insurance:

Administrative Funding Likely a Growing Problem

T-HRD-89-21: Published: May 24, 1989. Publicly Released: May 24, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed federal allocations to states for unemployment insurance program administration. GAO noted that: (1) although employer-paid federal taxes initially completely funded states' administration of unemployment insurance, budgetary and appropriation cutbacks have decreased federal funding of states' administrative costs; (2) states have increasingly used their own funds to help cover administrative costs and have made managerial adjustments involving increased automation and reduced staffing to contain costs and maintain service; (3) most state unemployment insurance trust funds have inadequate reserves; (4) the Department of Labor's allocation system used outdated information that did not accurately reflect states' administrative costs; and (5) serious disruptions in services and increases in claims processing errors could occur if unemployment rates rise suddenly.

Sep 15, 2016

Sep 7, 2016

Jul 8, 2016

Mar 14, 2016

Mar 10, 2016

Feb 23, 2016

Nov 9, 2015

Sep 16, 2015

Jun 15, 2015

Jun 3, 2015

Looking for more? Browse all our products here