Exploring Unemployment Insurance Program Options for Guam
Challenge: The U.S. Department of Labor’s Chief Evaluation Office sought guidance on how to design and implement an unemployment insurance (UI) program for the territory of Guam. Guam, unlike states in the continental United States, does not currently have its own UI system, but the global COVID-19 pandemic underscored the importance of having safety net programs in place. The Department of Labor needed an in-depth analysis of various program structures, their potential costs, their benefits, and administrative challenges to decide the most suitable option for Guam.
Solution: Summit Consulting was engaged to conduct a comprehensive exploration of potential unemployment insurance program models tailored to the unique demographic, economic, and geographic characteristics of Guam. The Summit team conducted a detailed analysis of existing UI programs in other U.S. territories and states, performed cost-benefit modeling, and assessed the administrative feasibility of each option. By using data-driven forecasting and scenario-based analyses, Summit provided a set of actionable options for Guam’s leadership to consider in our final report and technical appendix.
Result: Thanks to the Summit team’s work, the Department of Labor gained a clearer understanding of the benefits and challenges of establishing a UI program in Guam. This exploratory study not only provided a thorough analysis of the costs associated with various program designs, it also outlined a road map for effective implementation and administration. As a result, Guam’s leaders are now better equipped to make informed decisions about future unemployment support structures that can safeguard its workforce in times of economic downturn while also aligning with federal guidelines.