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Is a National Unemployment Insurance System Feasible?

With surging inflation and COVID-19 (and its continued effect on the global supply chain), it hasn't been the easiest few years for the labor and unemployment industry (UI). Time and again, agencies were put into complex and challenging positions where they needed to meet the needs of claimants today while keeping an eye on planning for tomorrow. Legacy unemployment insurance systems have been tested and stressed to the breaking point, and a debate over a national unemployment insurance system has been renewed.

The best way forward is murky. Proponents of a system champion the efficiency and support that this would provide. But its detractors counter by saying state differences and sovereignty concerns will never let this happen. As this issue continues to be debated, there are three likely outcomes:

  • The implementation and success of a national UI system.
  • The implementation but the failure of a national UI system
  • Increased budget requests by states to modernize current systems.

For more information about these different options or better understand the debate, download our free whitepaper at the link below.

Download Our National Unemployment Insurance Debate White Paper

Against the backdrop of this debate, all SWAs still want to administer quality benefits in the most efficient way possible. Choosing the right software solution then becomes a critical decision. Features like configurability, scalability, and continuous upgrades will play a vital role for agencies. This is because they enable them to meet their state's regulatory requirements, handle demand on a level seen during the COVID-19 pandemic and provide more value and ease of use to an agency in the long term.


How configurable a system's base code is, ultimately determines the system's value. Sagitec's Neosurance™ can help agencies meet over 70% of any state business requirement out of the box. Further, it is designed to be easily customized without complex software programming.


While we never hope to see an event like the COVID-19 pandemic again, it's essential to be prepared to handle any event. These past years have taught us that peak demand could exceed our expectations. Some unemployment insurance agencies received more claims in the beginning months of the pandemic than they did all in some years. During these times, agencies cannot afford to spend weeks or months buying, installing, and training staff on new software solutions. The best time is now to adapt to the cloud and scale for the future.

Continuous Upgrades

The inability of unemployment insurance systems to stay current and upgrade over time exacerbated the problems of the past few years. Many key features of existing legacy systems for fact-finding, adjudication, or claimant portals were not included for all agencies or built as an add-on component, increasing complexity and risk of potential failures. As technology continues to innovate, choosing a system that can keep up will help to provide more value to claimants and agencies.

As we all look toward the future of the UI industry, it's clear that there's no easy way forward. As proponents and detractors continue to spar over implementing a national UI solution, many state agencies are looking for solutions to meet their needs today and tomorrow. The key to achieving this is choosing the right software.

Topics: Unemployment Insurance