Reforming Unemployment Insurance to Better Address Structural Problems

Reforming Unemployment Insurance to Better Address Structural Problems

            The United States needs to a have a philosophical approach to unemployment services with a primary focus on mitigating recidivism rates amount individuals who routinely seek unemployment.  Instead of a system that seeks to merely find suitable employment without consideration beyond the short term, the United States should create a system that seeks to find employment that will be sustainable for the long term with each unemployed individual.  Seeking long term employment solutions for unemployed individuals will address the problem of structural unemployment in the United States.  Given the size and complexity of the United States, policies targeting unemployment are best administered at the state and local levels of government.  

           
One proposed way to act on this new philosophical approach would be for states to create and adequately fund career information centers appropriately distributed across the state with respect to human demography.  Each career center would offer a wide variety of services for all citizens of that state with priority access and scheduling given to those currently unemployed.  These career centers could be central hubs providing multitudes of beneficial services to the unemployed; such as resume and cover letter services, interview counseling and prep, career planning and counseling services, scholarship information and application resources, and job search services and job database as well as other services.  Career counselors will be utilized to create a career plan for each individual based on that individual’s skills and interests, with the end result that the unemployed individual can obtain a job that allows them to provide for their needs and which they also enjoy.  Given that the high cost of computers provides a barrier to entry for many unemployed person, each career center will also provide computer workstations which individuals may use for education and employment tasks.  In addition to computer workstations, each career center will also provide work/study space for individuals.  Providing work/study space is critical given that most individuals are more likely to finish their work if they begin working on it immediately after seeing a career counselor and information is still fresh in the minds, as opposed to doing their work at home perhaps days later.  In addition to a system of career centers, each state should create a searchable job database where applicants can search and apply for jobs, possibly in partnership with a private firm such as LinkedIn.  Companies can be encourage or required to list available jobs on this state job database.  This state job database can be a resource not only for the unemployed, but also for recent college graduates or any person who is interested in changing their current jobs.    

            Each career resource center will be a one stop shop where unemployed individuals can meet with a career counselor to create an individualized career plan and have the resources to pursue and accomplish their individualized career plan.  By centralizing unemployment resources combined with creating personalized career plans, the state will drastically simplify and increase the chances of the unemployed finding a job that they will not be able to be employed in for the long-term, but also enjoy.

            The construction and costs of a state providing a network of career resource centers will be an extra expense for each state.  As the recidivism rate decreases, fewer individuals will claim unemployment benefits, but even with a reduced recidivism rate, the cost to the state’s taxpayers will increase.  Given the expenses the state’s taxpayers will endure, it is a reasonable to tie the reception of unemployment benefits to completing goals and checks at the career centers.  After all, the money being spent on the unemployed is money that state is not spending on schools, infrastructure, and creating a better business environment.  A person receiving unemployment insurance from the state will have to meet certain career center checks to prove they are making progress on obtaining a job; such as meeting with a career counselor, writing and getting a resume approved, attending an interview prep session, and so on.  If an individual fails to meet these check, they will lose their unemployment benefits.  The state will provide resources to those in need, but only those in need who work to better their situation. 

            Creating a statewide system of career resources centers will reduce the rate of recidivism among the unemployed.  While the primary focus of these center will be the unemployed, each career center’s resources can be used by employed citizens as well, perhaps those seeking to update their resumes or receive counseling for a career plan.  The more resources available to citizens, the better chance states have of mitigating structural unemployment creating greater labor market flexibility.