Unemployment Insurance:

Administrative Funding Likely a Growing Problem

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

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

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state unemployment insurance trust funds have inadequate reserves; (4) the Department of Labor's allocation system used outdated information that did not accurately reflect states' administrative costs; and (5) serious disruptions in services and increases in claims processing errors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.

Oct 19, 2020

Jun 22, 2020

Apr 14, 2020

Feb 14, 2020

Feb 10, 2020

Sep 9, 2019

Apr 10, 2019

  • employment icon, source: GAO

    Priority Open Recommendations:

    Department of Labor
    GAO-19-395SP: Published: Apr 3, 2019. Publicly Released: Apr 10, 2019.

Apr 9, 2019

Apr 8, 2019

Mar 28, 2019

Looking for more? Browse all our products here