Acting Secretary of Labor Julie Su has called on Congress to modernize the nation’s unemployment insurance system in an opinion piece published online by The American Prospect. In her article, Su highlights the success of the Biden-Harris administration in promoting a strong job market but emphasizes the need for federal legislators to take action to modernize the unemployment insurance system before the next crisis hits.
Su compares the unemployment system to a house with a leaky roof, noting that while the system may be able to handle low levels of unemployment, it is glaringly inadequate during times of economic crisis. She stresses the importance of making necessary repairs to the system before the next storm hits, in order to ensure that it can effectively serve the American people when they need it most.
Under President Biden’s leadership, the United States has added nearly 16 million jobs, and average unemployment has been lower than during any administration in 50 years. Su argues that now is the time to make the necessary repairs to the unemployment insurance system to ensure that it can provide a safety net for unemployed workers in times of need.
The Department of Labor has developed a comprehensive plan to transform the UI system, which includes calling for adequate funding for state programs with grants that match the actual cost of running the system today. The plan also outlines the policy and technological changes needed to ensure that states can respond to future economic crises and pay benefits accurately and timely to all eligible individuals who experience a loss of work.
Despite the temporary pandemic programs put in place by Congress to address the shortcomings of the unemployment insurance system, Su notes that there are still too many workers falling through the cracks. Recent data shows that fewer than 3 in 10 unemployed workers received benefits in 2023, with workers of color being disproportionately affected.
Su emphasizes that transforming and modernizing the unemployment insurance system would benefit not only workers but also businesses and the entire economy. She urges Congress not to squander the opportunity to safeguard workers for the long term and calls for robust unemployment insurance reform.
In conclusion, Acting Secretary of Labor Julie Su’s article highlights the urgent need for Congress to modernize the nation’s unemployment insurance system. By making the necessary repairs and investments now, the system can be better equipped to provide a safety net for unemployed workers in times of crisis, ultimately benefiting businesses, workers, and the economy as a whole.