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ETA News Release: [09/30/2005]
Contact Name: David James or Mike Volpe
Phone Number: 202-693-4676 or 202-693-3984
Release Number: 05-1857-NAT

U.S. Department of Labor Announces $63 Million to Strengthen State Unemployment Compensation Systems

WASHINGTON - The U.S. Department of Labor today announced grants totaling $63 million to strengthen state unemployment compensation systems. Strong economic performance and lower-than- expected unemployment insurance (UI) claims have made funds available for grants to further improve the integrity of state UI systems.

"Unemployment insurance is a critical program to help people through a difficult time in their lives," said Secretary of Labor Elaine L. Chao. "This $63 million grant will help states ensure that their unemployment insurance system serves people in need as quickly and effectively as possible."

These grants will support states in prevention, detection and recovery of improper benefit payments through: using the National Directory of New Hires to block individuals from claiming benefits after they return to work; using automated systems to detect and recover improper payments, and matching claims data with other government databases to detect fraudulent claims.

The funds also will promote quick reemployment through enhanced use of automated systems to assess beneficiaries' needs and connect them to reemployment services. Finally, these grants will strengthen data integrity and security by augmenting current security measures to protect data from unauthorized access.

"These grants will enable states to raise the performance of their unemployment compensation systems and continue to provide necessary services to assist workers' return to employment," said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco.

For information on unemployment insurance, please visit: http://www.dol.gov/dol/topic/unemployment-insurance/index.htm; for more information on the Department of Labor's employment and training programs, please visit www.doleta.gov.

NOTE: A list of grant recipients is attached.