Economic Stimulus Learning Center

State Unemployment Insurance Programs

State and Local Government

A total of $400 million was included in the stimulus measure for state unemployment insurance operations under the Wagner-Peyser Act to help them manage claims from the growing ranks of the unemployed.

Some $150 million is being distributed to the states through formulas to help provide services in One-Stop Career Centers. Among the services that can be supported are “a computerized career information system including access to State Job Bank resources and institutions and organizations that provide training.”

Another $250 million of that is available for variety of reemployment services. In a guidance document, the Labor Department said “states should also evaluate potential technological changes and updates that would improve their capacity to serve growing numbers of UI [Unemployment Insurance] claimants, as Recovery Act funds may be used for information technology required to identify and serve the needs of UI claimants.”

The additional funds are being sent to the states based on three factors — the number of workers in the labor force, the state’s unemployment rate and its relative share of long-term unemployed individuals.

For more information, click here.

For the Labor Department’s detailed guidance on these programs please click here.