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GAO-25-108003 1 (May 7, 2025)

handle is hein.gao/ptyonrced0001 and id is 1 raw text is: c rAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Comptroller General Washington, DC 20548 of the United States May 7, 2025 The Honorable Lori Chavez-DeRemer Secretary of Labor U.S. Department of Labor 200 Constitution Avenue, NW Washington, D.C. 20210 Priority Open Recommendations: Department of Labor Dear Secretary Chavez-DeRemer: Congratulations on your appointment. The purpose of this letter is to call your personal attention to two areas based on GAO's past work and 12 open priority recommendations, which are enclosed.1 Additionally, there are 98 other GAO open recommendations that we will continue to work with your staff to address. We are highlighting the following areas that warrant your timely and focused attention. Specifically: Enhancing unemployment insurance. The Department of Labor (DOL) needs to address persistent unemployment insurance (UI) system issues that were exacerbated in the pandemic. These issues pose significant risks to service delivery and expose the system to significant financial losses through fraud and improper payments. We added this area to the High-Risk List in 2022, noting that the UI system faced challenges meeting the needs of unemployed workers and maintaining program integrity. In 2024, in response to the high-risk designation and recommendation, DOL released a comprehensive transformation plan for the UI program. This plan includes strategies to bolster state UI programs against fraud, build resilient and responsive state IT systems, and deliver high-quality customer service. DOL officials reported that 47 of the 53 strategies in the plan were completed or in progress as of December 2024. To fully implement this recommendation, DOL should execute this plan by working with states to complete actions that are currently in progress or planned, and assist Congress as needed to further pursue efforts to transform the UI system. Further efforts and sustained action to address recurring issues would help to stabilize the UI system and prevent future disruptions to UI administration during economic downturns. We also recommended that DOL measure states' UI IT performance, such as determining whether states were using cloud computing infrastructures to support their UI systems. DOL published UI customer experience standards and metrics that are intended to help states 1GAO considers a recommendation to be a priority if when implemented, it may significantly improve government operations, for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse; or making progress toward addressing a high-risk or duplication issue. GAO-25-108003 DOL Priority Recommendations Page 1

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