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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Session Topics:Session Topics:
Workforce Development Policy Drivers Workforce Development Policy Drivers
Unemployment Insurance and Unemployment Insurance and
Change...Change...Program ImpactProgram ImpactServices ImpactServices Impact
What’s New Around the Country?What’s New Around the Country?
International Association of Workforce Professionals2010 Conference
Presented by Melanie Arthur, Greg Newton Associates
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© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Six Seismic System Shifts!Six Seismic System Shifts!
Envision a “Good Jobs for All” Workforce System
Redefine Unemployment Insurance As a Time to Skill-Up,
Not Just for Work Search
Increase the Number of Center Customers Converting to
Training Services
Invigorate Workforce and Education Partnerships for Ever-
Upward Career Pathways
Redesign and Repurpose Business, Employer Services
Prepare to Meet New Performance Expectations
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Envision a “Good Jobs for All” Workforce System
1990’s: 2010’s:
“All Jobs Are Good Jobs” “Good Jobs for All”
“Work First” Paradigm Help individuals train for good jobs with middle-class, family-supporting wages
Seismic System Shift One:Seismic System Shift One:
Strategic Implications
All workforce development staff must value both training and jobs and be organized to help customers easily access and achieve both
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© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Seismic System Shift Two:Seismic System Shift Two:
Redefine Unemployment Insurance As a Time to Skill-Up, Not Just for Work Search
“Reemployment Insurance”: Income,
Training, and Jobs
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© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
President Obama says the goal is to “…change President Obama says the goal is to “…change unemployment from ‘wait and see’ to a chance for unemployment from ‘wait and see’ to a chance for our workers to train and seek the next our workers to train and seek the next opportunity…”opportunity…”
“The idea here is to fundamentally change our approach to
unemployment in this country, so that it's no longer just a time
to look for a new job, but is also a time to prepare yourself for a
better job. That's what our unemployment system should be --
not just a safety net, but a stepping stone to a new future. It
should offer folks educational opportunities they wouldn't
otherwise have, giving them the measurable and differentiated
skills they need just -- not just to get through hard times, but to
get ahead when the economy comes back.”
Source: THE WHITE HOUSE, Office of the Press Secretary May 8, 2009
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© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
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Outreach to UI claimants with services and Outreach to UI claimants with services and information including training resources information including training resources such as the Pell Grant and WIAsuch as the Pell Grant and WIA
Ensure staff are aware of “approved Ensure staff are aware of “approved training” policies and procedures in relation training” policies and procedures in relation to continued receipt of UI benefitsto continued receipt of UI benefits
Provide training and resources so that all Provide training and resources so that all Center and UI staff can help claimants Center and UI staff can help claimants apply for financial aid and training apply for financial aid and training programsprograms
Partner with financial aid officers at Partner with financial aid officers at postsecondary institutionspostsecondary institutions
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Environmental Scan...Environmental Scan...
• Dismal Ratio:6.3 Job Seekers/1 New Job Opening
• “Jobloss” Recession:2019 Before Pre-Recession Levels?
• Recession is Different:National, All Industries, After Over
• Longer Time to Find New Job:Even if “Actively Seek, Available”
• Increased Duration:Trust Fund Pressure
• Multiple Benefit Extensions:99 Weeks in Some States
• Jobs and Training:Train in What?
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Seismic System Shift Three:Seismic System Shift Three:
Training: a “preferred” Center customer path
WIA reauthorization: minimum % on training
ARRA reporting: numbers in training, not just expenditures
Increase the Number of Center Customers Converting to Training Services
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1990’s legacy “sequence of service” strategy eliminated
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Worker Profiling (WPRS), RES and REAWorker Profiling (WPRS), RES and REA
Self-Employment OptionSelf-Employment Option
Personal Reemployment AccountsPersonal Reemployment Accounts
UI Performance and QualityUI Performance and Quality
Private Unemployment InsurancePrivate Unemployment Insurance
Unemployment Insurance…and Change Unemployment Insurance…and Change Program ImpactsProgram Impacts
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Significant ARRA investment including
$500 million in UI Administration; ES,
and RES funding for: technology, job
matching and capacity building.
For technology:
• Update the state’s UI profiling model• Improve data sharing & transfer between
UI, ES & WIA • Upgrade hardware and software in local One-Stops for staff
and customers• Upgrade websites and labor exchange sites• Invest in social media capabilities
Major ARRA achievements : •RES program of improved UI/Workforce partnership (46%)
ES Recovery Funds:•RES to UI claimants (83% of states)•Integration of ES and UI info. technology to better serve UI claimants (40%)
Worker Profiling, Reemployment ServicesWorker Profiling, Reemployment Services
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
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Source: NASWA States’ Survey,
Early ARRA Implementation, May 2010
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
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• Integrating UI & ES technology
• Up # of claimants recv’ing on-site help
• Improve UI exhaustion models
• Enhanced work test oversight
Source: NASWA States’ Survey,
Early ARRA Implementation, May 2010
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
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Source: NASWA States’ Survey,
Early ARRA Implementation, May 2010
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Worker ProfilingWorker ProfilingSome 33% of states’ profiling model has been or will be modified with ARRA•“Grant used to improve the applicant identification
by upgrading the variables.” – West Virginia•“Updated the model coefficients based on more current employment data available.” – Washington•“An unemployment profiler model is being developed by LMI. The modification provides us the ability to pull out and provide reemployment services to UC claimant subgroups based on requirements set forth in [federal guidance].” – Florida•“Profile parameters have been expanded to increase the number of claimants in the pool.” – Idaho•“New model will make services available to all UI claimants.” -- Alaska
UI/One-stop PartnershipsUI/One-stop Partnerships36% of states say partnership has improved some, and 36% say great improvement.•“ARRA is being used to develop an automatic link
to our job bank with UI and send emails to UI
claimants to register with our job bank. Also sends
messages about all one-stop services.” –
Minnesota•“Integrated components of UI and One Stop system to identify UI claimants and provide information back to UI on participation and work search activities.” – Florida•“The UI claims system/virtual one stop system interface is currently being developed. This will greatly improve the links between UI and One Stop services.” – New Mexico•“We improved the information technology interfaces between UI and ES to increase efficiency and improve communication.” – Wisconsin
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Self-Employment OptionSelf-Employment Option
Two demonstrations test viability of self-employment during early 90s: SEED, WA; Enterprise Project, MA
Two key components: 1) Financial assistance (lump sums in WA, bi-weekly in MA)
2) Micro-enterprise development services (entrepreneurial
training, business counseling, and technical assistance)
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WA $ source: research funds; MA $ source: UI Trust Fund; sums equal to UI benefits entitlement…”self-employment allowances in lieu of unemployment benefits
Business starts: primarily services in MA; services and retail in WA with some micro-manufacturing and construction
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Self-Employment OptionSelf-Employment Option
Demonstration projects prove “self-employment” as a beneficial option – creating “jobs” for participants: increased likelihood of employment and accelerated timing of entry into employment
Earnings from self-employment: no significant effect in MA; treatment group earned more WA
Total earnings impact: MA had positive impact; WA demonstration had no impact
Unemployment spell reduced in both demonstrations; both reduced UI benefits receipt (however, WA model included a lump sum payments that increased total payments)
Services increased duration of self-employment Many interested and eligible claimants, with relatively few pursuing
the opportunity: WA – 37% of participants from profession, technical and managerial occupations; 45% from same in MA
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Self-Employment OptionSelf-Employment Option
Direct result of demonstrations led to Congress enacting authorizing legislation to allow states to establish self-employment assistance programs for unemployed workers as part of their UI programs.
Additional states: New York, Oregon, Maine, Delaware, New Jersey, California, Maryland, Pennsylvania
Ongoing findings:• High rates of self-employment are achieved• Participants are likely to have higher levels of education; higher pre-
unemployment wages; a previous professional, technical, or managerial occupation; and to have been male in comparison to non-participants
• Participants are 4 times more likely to have obtained employment (of any kind – either self-employment or wage/salary)
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Personal Reemployment Accounts (PRAs)Personal Reemployment Accounts (PRAs)Strategy intended to help unemployed workers build job skills and find work through a self-managed account.
Demonstration Objectives: (1) Give job seekers choice in and control over the type andtiming of services they received(2) Encourage and support rapid return to the labor market --shortening the unemployment spell(3) Promote job retention.
Most likely to exhaust UI benefits $3,000 to choose how and when to spend funds from account Purchase reemployment services, supportive services and training May also elect to receive funds as cash reemployment bonuses for
reentering the workforce (60% of PRA balance if employed within 13 weeks) and keeping a job (for 6 months -- 40% of balance )
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Personal Reemployment Accounts (PRAs)Personal Reemployment Accounts (PRAs)
Seven states volunteer: Florida, Idaho, Minnesota, Mississippi, Montana, Texas, and West Virginia, Hawaii joins
4,480 unemployed workers; in six of the seven original states, the majority of individuals offered a PRA accepted
Employment entry bonus among all recipients was 31% Majority of PRA recipients in ID, MN, MT and TX used the PRA to
purchase supportive services; (3 to 4%) did so in MS and WV
12% purchased training; averaging more than $1,000 each in MS, TX, and WV, and between $500 - $1,000 in the other states
No intensive services purchased in ID, MS or MT; 2% or less in MN, TX and WV; in Florida -- 16%
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Personal Reemployment Accounts (PRAs)Personal Reemployment Accounts (PRAs) Average rate of benefit exhaustion at 40% (although “profiled” to be at
52%); collect an average of 17 weeks—about one month shorter than full period of eligibility
Average rate of benefit exhaustion at 40%; collect an average of 17 weeks—about one month shorter than full period of eligibility
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Half of recipients were employed in the quarter following PRA entry; 59 percent who earn the first employment bonus also earn the job retention bonus; just over 20 percent of PRA recipients earned the retention bonus
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Internet
Call Centers
Virtual Services
Debit Cards
UI and One-stop
Connections
UI and Training
Unemployment Insurance…and Change Unemployment Insurance…and Change Service Delivery ImpactsService Delivery Impacts
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© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Position unemployment insurance as "reemployment
insurance" Improve the "rapid response" meeting, presentations,
processes and documents Turn "claimants" into job seekers or training
participants ASAP Design and (re)launch services for the professionals,
along with improved reemployment services for entry-
level workers
Unemployment Insurance…and Change Unemployment Insurance…and Change Service Delivery ImpactsService Delivery Impacts
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Strategically redesign worker profiling processes,
requirements and services to target reduction in weeks
claimed, not just reduction in exhaustees Use "high volume" traffic in centers to once and for all
move beyond (just) the "unemployment office" to
recognition as a true Career Center Position with employers: this economy means you alone
have an "unequaled talent bank" since UI is the "first to
know when quality workers lose their jobs"
Unemployment Insurance…and Change Unemployment Insurance…and Change Service Delivery Impacts…cont.Service Delivery Impacts…cont.
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
Overhaul bureaucratic UI "notices" to promote reemployment services, while not diminishing communication of required information
Process improvement strategies between and among customers, one-stop centers and UI call centers or Internet sites
Making sure the unemployed who are denied unemployment benefits know you can help with employment and training services
And more!
Unemployment Insurance…and Change Unemployment Insurance…and Change Service Delivery Impacts…cont.Service Delivery Impacts…cont.
© 2010 Melanie Arthur GregNewtonAssociates.com [email protected] 617.834.6696
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Unemployment Insurance InnovationsUnemployment Insurance Innovations
References and everything you ever wanted to know about unemployment insurance…
www.ows.doleta.gov
reemploymentworks.workforce3one.org:
TEN 11 -09: Supporting Claimant Needs in the One-Stop Centers
TEGL 2-09: State Approved Training
TEGL 2-08: Pell Grant Info
www.workforceatm.org; for NASWA survey on ARRA activities, RES learnings webinar
Your seminar leader...Your seminar leader...
Along with her colleagues at Greg Newton Associates, Melanie Arthur is helping states and communities across the country operate successful workforce investment centers.