The Employment Service-Unemployment Insurance Partnership: Origin, Evolution, and Revitalization

This study traces the origin and evolution of the partnership between the employment service and unemployment insurance programs in the United States. We examine objectives of the framers of the Wagner-Peyser and Social Security Acts that established these programs. Using primary sources, we then analyze early actions of the architects of social insurance to facilitate cooperation between the two programs to meet economic exigencies, grapple with political cronyism, and surmount legal barriers. We also discuss factors that caused changes in the employment service–unemployment insurance partnership over time. We identify reasons for the erosion in cooperation starting in the 1980s, and explain why ever since there has been a continuous decline in service availability. Reviewing evidence on the effectiveness of in-person employment services for unemployment insurance beneficiaries, we suggest ways to revitalize the employment service–unemployment insurance partnership. We explore the source of Wagner-Peyser Act funding, how it was formalized, then eroded, and how it can be renewed

Unemployment Insurance: Fix It and Fund It

During the 2020–2021 pandemic, the federal-state unemployment insurance (UI) system in the United States nearly reached the breaking point. The surge in joblessness was matched in history only by the Great Depression of the 1930s. Congress hurriedly crafted temporary pandemic benefit assistance programs to fill benefit and eligibility gaps in state-run UI programs, handing them off to capacity-starved state UI agencies that fitfully served millions of workers and employers. After years of policy neglect and contraction, state UI programs have low benefit recipiency, meager earnings replacement rates, and inadequate benefit financing. It is time for comprehensive federal UI reform legislation, which should require state lawmakers to improve program access, benefit adequacy, financing, and reemployment services to meet the challenges of the new labor market. In this paper, the authors offer essential elements for practical UI program reform that includes explicit sharing of program costs between business and labor

Introduction [to Solving the Reemployment Puzzle]

Wandner examines the research and evaluation of U.S. employment and training programs over the past 25 years. He also discusses the impact such research can have and how misuse of research findings can hamper program effectiveness.https://research.upjohn.org/up_press/1221/thumbnail.jp