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Status of Unemployment Insurance Related Projects and Reports

1) The National Directory of New Hires

In 2005, the Chief Financial Officer (CFO) and the Employment & Training Administration (ETA) initiated a pilot to determine the benefit of State Workforce Agency (SWA) data cross matching with the National Directory of New Hires (NDNH). The primary purpose of the NDNH is child support enforcement. However, recent legislation allows SWAs to access the NDNH for the purpose of administration of Unemployment Insurance programs.

One of the greatest reasons for erroneous UI benefit payments is due to UI beneficiaries failing to report earned income correctly. Cross matching with the NDNH will assist SWAs in detecting more of those types of overpayments. The CFO's report (link provided below) provides an analysis of the cross match pilot.

In 2005 and 2006 ETA provided approximately $6.8 million to 43 states, through SBRs, for this project. Currently 48 states are accessing the NDNH and the remainder of the states are in some process of planning to access. States are starting to use the NDNH for reemployment measures and 43 states have their BAM investigators matching their cases against it. States are now required to match BAM cases against the NDNH beginning with the first batch in January 2008.

For more information on this project contact Susan Hilliard (202) 693-3608.

Unemployment Insurance National Directory of New Hires Pilot Report

2) Development of a SUTA Dumping Detection System

SUTA dumping is a term that describes the abusive activity where employers attempt to avoid higher earned rates for state unemployment insurance taxes by artificially “dumping” their benefit charges. On August 9, 2004, President George W. Bush signed into law the SUTA Dumping Prevention Act of 2004, part of which required the states to implement systems to identify these abusive practices.

The US Department of Labor (DOL) funded a cooperative agreement with the North Carolina Employment Security Agency to develop an automated SUTA Dumping Detection System (SDDS). Forty-three states chose the SDDS option to detect SUTA dumpers. By 2007, nearly every one of these states had implemented the SDDS software and initiated active SUTA dumping detection measures. The remaining states chose to implement other systems or augment existing systems to satisfy the requirements of the Act.

DOL contracted with Coffey Communications to gather data for the report to Congress. Coffey conducted on-site visits in six states. Additionally, Coffey surveyed to every state in the spring of 2007 to collect additional SUTA dumping detection activity information. The full text of the report along with a summary produced by ETA can be found here:

The responsibility for supporting the USDOL / North Carolina SDDS transitioned to the Information Technology Support Center (ITSC) during the summer of 2007. ITSC is now responsible for help desk support, software updates and system upgrades.

For more information on this project, contact Tom Crowley at (202) 693-3203.

3) Evaluation of the Unemployment Insurance Benefits Program

This study is intended to provide detailed, empirical information on the effectiveness and impact of receiving Unemployment Insurance benefits. The study will identify: changes in the labor market, population and economy pertinent to the UI program, detailed characteristics of who receives and does not receive UI benefits; micro-economic impacts of the program; and an analysis of the new Reemployment and Eligibility Assessment Initiative (REA). Overall, the study will provide fresh data and data analyses that can be used in developing policy and in planning future research, including demonstration projects.

Currently the contractor for this study, IMPAQ International, has completed a report on the REA initiative that contains a two state impact analysis (using FY2005 data), and a four state operational case study. The full text of the report along with a summary produced by ETA can be found here:

The contractor has also begun work on three other projects all of which will be completed by March, 2009. These papers include:

  • An Analysis of UI Non-Filers – (using the 2005 CPS Supplement Survey Data).
  • Trends in the Structure of the Labor Market and Unemployment: Implications for the UI Program.
  • UI as an Automatic Stabilizer for the National Economy

The entire study is being conducted over a five year period, which began in July 2004. For more information on this project contact Wayne Gordon at (202) 693-3179 or at

4) Study to Improve Worker Profiling Models

The goal of this study was to describe the current state worker profiling models and assess their effectiveness. The project was completed in May, 2007 and a final report has been produced. The report discusses several approaches for evaluating the accuracy of worker profiling models, applies the approaches to current state models and shows the results. The report additionally suggests some best practices in operating and maintaining worker profiling models based on the results that the investigators found. For more information on this project contact Scott Gibbons at gibbons.scott@dol.govor (202) 693-3008.

The full text of the report along with a summary produced by ETA can be found here: fuseaction=dsp_resultDetails&pub_id=2346&mp=y

5) Reed Act Distribution Implementation Study

The Center for Employment Security Education and Research (CESER) has conducted a process evaluation of the uses of Reed Act distributions by states. The study reviewed states' implementation, policies, institutional outcomes, and individual state outcomes, and policy consequences. CESER provided a final report to ETA and it is currently under review by ETA officials. For more information on this project contact: Wayne Gordon at (202) 693-3179 or

6) Strengthening the Connection between UI Remote Services and One-Stop Center Services Demonstration Project

A demonstration grant was provided to the State of Wisconsin to test new methods of service delivery to enhance the connection between UI Call Centers and One-Stop services. The project was implemented in the Oshkosh One-Stop center in July 2004 and in two One-Stop centers in Milwaukee in September 2004. Berkeley Policy Associates conducted a companion evaluation of the demonstration project using a comparison group methodology. An interim brief was issued in July 2005 showing reductions in UI claimant durations in the demonstration sites. A final report was completed, and is currently under ETA review. For more information on the project contact: Wayne Gordon at (202) 693-3179 or at


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Created: March 29, 2004

Updated: July 29, 2008