Turning the Unemployment Program into a Reemployment Program – Official Press Release by DOL
Two months ago, the President signed the Middle Class Tax Relief and Job Creation Act of 2012. That legislation extended the vital payroll tax cut and federal unemployment insurance programs that have been so crucial for American families and to the continued and sustained economic recovery. But it also included several important reforms to the Unemployment Insurance system that didn’t grab the headlines the day it passed.
The Obama Administration is committed to finding new and innovative ways to turn the unemployment system into a reemployment system. States, as laboratories of democracy, can play a crucial role in developing creative strategies that help us accomplish this goal in ways that may inform the policies of other states and the federal government in the future.
Today, I had the privilege to announce guidance to states interested in developing demonstration projects to help their unemployed obtain jobs faster and more efficiently. These demonstrations are a key component in the first major overhaul of the Unemployment Insurance system in decades.
Through this initiative, 10 states will have the opportunity to develop new and creative ways to help recipients of UI funds get back to work faster. These states will design programs that help the unemployed get back to work, while lowering costs and ensuring that all participants receive the same worker protections. This will create a level playing field for employers who follow the rules and have their employees’ welfare in mind.
The Labor Department is preparing to announce more guidance in the coming months that further improve the functionality of the UI system. These reforms will provide states with more flexibility to respond to changes in the economy, provide employers tools to avoid layoffs, help the unemployed get back into the workforce faster and even expand opportunities for the unemployed to start their own businesses.
States asked to apply for unemployment test plan
The Obama administration is looking for states that will experiment with unemployment insurance programs by letting people test a job while still receiving benefits.
The plan is a key feature of a payroll tax cut package that President Barack Obama negotiated with congressional Republicans in February.
The Labor Department will open the application process Thursday for 10 model projects across the country. Any state can apply for the “Bridge to Work” program.
The plan is modeled after a Georgia program called “Georgia Works.” Under the plan, workers who have lost jobs can be placed in other temporary jobs as trainees for short periods to retain their skills or gain new ones while receiving jobless assistance. About a third of the time, those workers wind up getting hired full-time.
A number of states are combining unemployment benefits with on-the-job training, including North Carolina, New Hampshire, Utah and Missouri…
- Active Labour Market Policy | Profiling potential long-term unemployment at the individual level (jobmarketmonitor.com)
- Monetary and fiscal policies will never suffice to reduce long term unemployment (jobmarketmonitor.com)
- What Employers Want from the Long-Term Unemployed – Brent Rasmussen – Harvard Business Review (jobmarketmonitor.com)
- REVIEWING DEVELOPMENT OF ACTIVE LABOUR MARKET POLICIES AND THE EVALUATION TECHNIQUES (jobmarketmonitor.com)