Much has changed since the unemployment insurance program was started during the Great Depression. The current trend toward "down-sizing" by large companies means more people are out of work longer and have a more difficult time finding jobs comparable to those they lost.
The program was set up to help people get by during temporary job losses. States tax employer payrolls, deposit the money in a federal trust fund and withdraw the funds as needed to cover jobless benefits.The program desperately needs ravamping. It is an anachronism that does not do enough to help the jobless in today's market.
Current regulations mean minimum- and low-wage workers are often denied coverage along with those who have permanently lost jobs and are involved in retraining programs.
The present program - a joint effort between states and the federal government - sparks competition among states to keep taxes and benefits down. None of this makes sense.
A new report outlining possible changes in the way the insurance fund is handled provides some suggestions that could make the program more fair and efficient.
The changes proposed by a federal advisory panel after a three-year study would make the insurance fund more helpful to those who are hurt most by the evolving job market.
The report suggests that the federal government eliminate its requirement that anyone on extended benefits beyond the standard 26 weeks must take a minimum-wage job if offered or be cut off. Instead, states should be allowed the flexibility to set time limits and provide benefits during retraining.
It would make it easier for states to extend benefits during times of high unemployment and would encourage them to build up a cushion in funds during good times.
It's time to make the changes and bring the unemployment insurance program into the '90s - and the next century.