Billions in Unemployment Benefits Paid in Error

September 15, 2011


  • September 14, 2011, 7:27 PM ET

Nearly $19 billion in state unemployment benefits were paid in error during the three years that ended in June, new Labor Department data show.

Source: Labor Department
Click image for a full-size interactive map

The amount represents more than 10% of the $180 billion in jobless benefits paid nationwide during the period. (See a sortable chart of each states’ overpayments) The tally covers state programs, which offer benefits for up to 26 weeks, from July 2008 to June 2011. Layers of federal programs that help provide benefits for up to 99 weeks weren’t included.

The Labor Department launched a plan to crack down on the improper payments, targeting Virginia, Indiana, Colorado, Washington, Louisiana and Arizona in particular for their high error rates. Those states will undergo additional monitoring and technical assistance until their error rates dip below 10% and remain there for at least six months, according to the Labor Department.

“The Unemployment Insurance system is a unique partnership between the federal government and the states. States bear the responsibility of operating an efficient and effective benefits program, but as partners the federal government must be able to hold them accountable for doing so,” Labor Secretary Hilda Solis said in a release.

Indiana had the highest error rate, with improper payments accounting for more than 43% of the total amount paid. But Mark Everson, commissioner of the Indiana Department of Workforce Development, said the differences in error rates stem from variations in state programs.

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http://blogs.wsj.com/economics/2011/09/14/billions-in-unemployment-benefits-paid-in-error/tab/print/

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