About the Brief

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This brief presents findings from the exploratory study to examine the feasibility of implementing a Unemployment Insurance (UI) program in Guam. It identifies factors relevant to UI program implementation in Guam and describes five potential UI program design options, specifying how the factors would work for Guam depending on program design option.

The brief is accompanied by a technical appendix that describes the study in more depth, including the methodology and limitations, and presents the data analyzed that support the information provided in the brief.

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Key Takeaways

• The factors Guam will need to consider prior to implementation, regardless of UI program design, include the legal requirements, funding source for benefits, eligibility requirements of unemployed workers, benefit amounts, support and resources for the program, and program integrity.
• The study identified five potential design options for Guam to consider:
  1. The Federal-State Unemployment Compensation (UC) Program design option would implement the traditional UI design used by 53 jurisdictions in the United States. With this design, the federal government provides some funding for program administration, while Guam would administer and fund the program, which most jurisdictions do through employer taxes.
  2. The federal joint-state UI program design option would allow Guam to partner with a state or territory already operating a Federal-State UC Program to share administrative resources, expertise, and possibly even funding sources.
  3. The non-federal permanent UI program design option would allow Guam to create a program outside of the federal system, meaning it would be solely responsible for designing, supporting, and funding this program.
  4. The non-federal temporary UI program design option would allow Guam to develop a program that is responsive during periods of high unemployment and is triggered based on economic indicators identified by Guam (e.g., downturn in tourism from East Asia).
  5. The non-federal industry-specific UI program design option would allow Guam to provide coverage to workers in industries that are most vulnerable to economic volatility and layoffs.

Research Gaps

• This exploratory study provides a high-level assessment of the factors and options for Guam to consider for a potential UI program. Guam will need to perform more in-depth cost and legislative analyses, as well as perform outreach to community stakeholders, to further explore design options of interest prior to implementation.

Citation

Cunningham, S., & Crane, K. (2024). Summit Consulting. Exploring Unemployment Insurance (UI) Program Options for Guam: Options Brief. Chief Evaluation Office, U.S. Department of Labor.

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The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.