Case Studies

The Challenge

State Workforce Agencies (SWAs) have been exploring new methods that unemployment insurance (UI) claimants can utilize to file claims for benefits. Until the 1990s, most states required UI claimants to file their claims in-person at local offices that provided both UI and reemployment services. In the early 1990s states began taking initial claims by telephone. More recently, states have implemented UI initial claims-taking over the Internet, which is less staff-intensive than traditional methods and more convenient for unemployed workers. The Department of Labor's Employment and Training Administration (DOL/ETA) has supported the use of remote access systems for UI services by awarding grants for developing and implementing telephone and Internet initial claims systems

DOL/ETA was interested in determining the effectiveness and impact of the Internet Initial Claims (IIC) initiative which involved the provision of Federal funds to SWAs for technology upgrades in the Unemployment Insurance Service. The IIC initiative to utilize the World Wide Web as an automated, real time option for unemployment insurance initial claimants and thus reduce labor and administrative costs. DOL/ETA required the services of a company that was not only familiar with the state unemployment insurance system and SWAs, but also had the expertise in program evaluation and IT security protocols to effectively measure the impact of this initiative.

The Strategy

HeiTech Services gathered together a team of experienced and seasoned researchers for this task. The team was led by a former DOL/ETA official who was familiar with the SWA system and the individuals at the state and Federal level. Additional staff included an IT security expert who was familiar with all of the issues surrounding a complex web-based user interface and database driven back end, and a subcontractor who had experience in analyzing telephone-based initial claims in an earlier study.

The project team identified a list of possible states to include in this pilot study based upon several factors including size of the state, geographic location, and the level of . The six study states - Colorado, Missouri, North Carolina, Pennsylvania, Utah, and Washington - were selected to accurately reflect variations in size and geography. In addition, aggregate data were collected from the states' claim records on all regular new initial claims filed during the first quarter of calendar year 2002. Data on characteristics of claims activity, as well as eight demographic variables - sex, race, education level, age, residence (urban or rural), base period earnings industries and occupations were analyzed. The specific areas that were determined to be evaluated were service delivery, security, fraud and abuse controls and cost effectiveness.

The Results

A final report was prepared and delivered to DOL/ETA that documented weaknesses and strengths of each state's implementation of IIC. A best practices area described how other states could easily replicate those successes experienced by the five states that were studied. The major findings of the evaluation were:

• Internet initial claims filing systems provide convenient access to UI claim services, and Internet initial claims filers are satisfied with the services.
• Claimants filing over the Internet are provided adequate information about their benefit rights and responsibilities.
• Internet filing does not appear to be linked to higher rates of erroneous payments.
• States' systems security measures appear to be adequate.
• Anecdotal information, and estimated data from some state managers, indicated that the administrative costs of Internet-filed claims was lower than the costs of in-person or telephone-based claims.
• Claims filed by Internet are paid as promptly as claims filed using other methods.
• UI claimants have a greater opportunity to connect with reemployment services through Internet filing.
• Internet filers tend to be younger, better educated, more affluent, more likely to classify themselves as white, and more likely to reside in an urban area.