
Brookings Metropolitan Policy Program Page 2
I
n spring 2020, as the COVID-19 public health
lockdowns unfolded, an unprecedented wave of
displaced workers applied for unemployment
insurance (UI). But in many cases, getting UI to these
millions of workers was a fraught process.
“I don’t have home Internet, because I had gotten rid of
it a few years ago to save money,” a Washington, D.C.-
based barista who wanted to remain anonymous told
us in June 2020. “I had to le for unemployment on the
phone, and I called every day for about a week-and-a-
half before I got through. And when I got through, I had
been on hold for about six-and-a-half hours. It was 12
weeks before I received unemployment.”
Unfortunately, stories like this were the norm, rather
than the exception. States were hard pressed to
process claims accurately and quickly, because UI
application processes rely heavily on a staff member
making decisions about claims, even for applications
led online. Hiring new staff and contractors was
a necessary rst step, but it often added friction
since it can take years for staff to fully onboard. (In
California, the training manual is 800 pages long and
UI call center staff training typically takes at least
six months.
1
) And even though Congress passed
unusually generous expansions to UI in March 2020’s
CARES Act, that relief didn’t get out quickly enough
to end users like the barista above. These systems
failures imposed deeper costs by further eroding trust
in government.
These high-prole UI breakdowns were rooted in
more than 30 years of declining funding in broader
labor market programs, including cuts to the
technology, staff capacity, and data infrastructure
that support them.
2
Since the 1980s, policymakers
have intentionally cut these programs and services,
tightened eligibility requirements, and decentralized
program administration and governance.
Decentralization gave states and local areas more
control, but with fewer resources; it also produced a
landscape in which the resulting 53 systems across
U.S. states and territories became more divergent
from each other over time, with different benet levels,
processes, and more customized data systems.
This nationally uneven and under-resourced setup has
negative consequences beyond access to UI benets.
Variation across systems makes it hard for federal
policymakers to boost national capacity in a crisis or
update security measures quickly and cost-effectively.
And it is time-consuming and challenging for state
and local programs to securely share data across
programs.
INTRODUCTION
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