Each year, I eagerly participate in various conferences across the country to learn about the latest advancements in state workforce agencies’ administration of unemployment insurance programs. This year, I had the pleasure of attending the National Association of State Workforce Agencies (NASWA) annual summit in New Orleans, LA.
NASWA is a national organization representing all 50 state workforce agencies, the District of Columbia, and U.S. Territories. It provides policy expertise, shares promising state practices, and promotes state innovation and leadership in workforce development. The annual summit is a significant event where representatives from these agencies collaborate to share best practices and advise on federal legislation impacting states. Given NASWA’s broad representation, the gathering is quite large, enabling attendees to connect with colleagues they have only met virtually.
This year’s conference theme was “Celebrate, Innovate, Elevate,” fittingly held in New Orleans, known for its vibrant celebrations. The conference, from Monday, September 23rd to Thursday, September 26th, was packed with breakout sessions on various subjects. My primary interest being unemployment insurance, I focused on sessions specific to this topic.
Updates to SIDES at NASWA
A major component of NASWA’s collaboration with state workforce agencies for unemployment insurance is the State Information Data Exchange System (SIDES). SIDES is a web-based platform that facilitates the electronic transmission of unemployment insurance claim information between employers and unemployment insurance agencies. As a third-party agent representing employers nationwide, Experian Employer Services is highly engaged in SIDES. Currently, there are six “exchanges” available for states to engage in:
- Separation information
- Monetary & potential charging
- Additional fact-finding
- Determinations & decisions
- Earnings verification
- Benefit charges
A seventh exchange, for the administration of power of attorney documents, is in development with a target “go-live” date of November 19, 2024. During the conference, multiple states provided updates on their progress in implementing various exchanges. Training is available for employers interested in establishing themselves on SIDES.
Fraud Prevention
Fraud prevention is a significant concern for all states, especially since the COVID-19 pandemic has led to a surge in fraudulent claims. State leaders shared their strategies for combating fraud. Julia Dale, Michigan’s Director of the Unemployment Insurance Agency, discussed a solution that identifies fraudsters attempting to create new unemployment claims. The software pinpoints the caller’s location, service provider, and whether the call is from a cell phone, landline, or VOIP. It then color-codes calls by risk level, helping staff target higher risk calls.
Another state workforce agency reported an incident where their call center received a call generated by artificial intelligence (AI). Although the caller sounded human, the call center staff identified it as AI based on the responses to certain questions, successfully thwarting the fraud attempt. This incident highlights the increasing sophistication of fraud attempts.
From a budget perspective, two speakers provided insights into the current year’s federal budgets related to labor, under which unemployment typically falls. There was an unexpected 4.5% cut in the UI state operations budget. For fiscal year 2025, a 1% increase in the budget is proposed, but this remains uncertain until after the presidential election in November.
New Unemployment Claims Portals
Improving platforms was another key discussion topic. Nearly 20 states received $11 million each from the American Rescue Plan Act (ARPA) last year to create new platforms for administering their UI programs. Over the next few years, many states will launch new portals, benefiting both individuals filing unemployment claims and employers paying state taxes. Multi-factor authentication continues to be emphasized as a crucial element in developing these platforms to combat fraud.
AI was a recurring topic, with several workforce agencies exploring its potential. Some agencies already use AI in the form of chatbots, while others are considering additional applications to enhance efficiency in claim processing and fraud prevention. As AI becomes more integrated into these processes, we can expect to hear more about its impact.
While I attended other sessions at the summit, these were the most relevant to me as a TPA. I look forward to reporting on next year’s summit, which will take place in Dallas, Texas, in September 2025.