Federal Government Seeks Broader Role in Unemployment Claims, DOL Calling Back Workers

The U.S. Department of Labor (DOL) plans to launch a pilot program that would give the federal government a more active role in processing unemployment claims. It’s also weighing the creation of a national database for unemployment claims. 

According to an internal email obtained by NextGov/FCW, DOL plans to test a new department-hosted platform, unemployment.gov, with a handful of states by the end of the year. The site would handle initial unemployment claims and include tools for identity verification and work authorization.

The move follows a March executive order from President Trump directing agencies to more broadly share data. 

While the administration insists an unemployment database is necessary to cut down on waste, fraud, and abuse, privacy and civil liberty advocates are worried about expanded government surveillance, particularly on immigration status. 

“Given what has happened at other agencies, would the Trump administration share this with ICE or use it to otherwise surveil Americans applying for UI?” said one unemployment expert to NextGov/FCW, who requested anonymity out of fear of retaliation. 

Other experts note that DOL may face challenges given that unemployment programs and eligibility standards vary across states. That issue also hampered pilot programs under the Biden Administration. 

Workers Recalled

Meanwhile, DOL is recalling employees who were furloughed during the government shutdown to prepare the release of the Consumer Price Index (CPI) for September. 

The report, which measures inflation in the U.S., is now scheduled to be released on October 24, nine days after the original release date. 

The report needs to be compiled by the Bureau of Labor Statistics (BLS) so that the Social Security Administration (SSA) can calculate the annual cost of living adjustment. That adjustment needs to be published by November 1.