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Pilot Initiative Will Test Federal Tech Upgrade for Jobless Aid

June 2, 2021, 6:01 PM

A U.S. Labor Department official disclosed in a new watchdog report that the agency is developing a pilot initiative with states to modernize the information technology system for unemployment insurance.

The federal-state jobless aid program’s struggle to deliver timely benefits payments under the strain of pandemic-induced layoffs highlights the need for the Labor Department to overhaul the federal government’s technological capabilities, the DOL Inspector General recommended in its report.

In a response included in the report Wednesday, the agency’s top official overseeing unemployment benefits agreed with that advice.

The department’s Employment and Training Administration “will work collaboratively with states ...