Rhode Island will receive $17 million in federal funds aimed at strengthening the state's unemployment insurance system, according to a Sept. 27 announcement from Rhode Island Democrats Sen. Jack Reed, Sen. Sheldon Whitehouse, Rep. Jim Langevin and Rep. David Cicilline, as well as Independent Gov. Lincoln Chafee '75 P'14 P'16.
About $10 million of this funding will be spent to "improve service levels and modernize state UI systems," the joint announcement stated. An additional $537,000 will rehire 15 full-time Rhode Island Department of Labor and Training employees who were laid off earlier this year. Remaining funds will be spent to eliminate fraud in the unemployment insurance program and personalize the system by providing individual assessments to people experiencing financial hardship, the announcement said.
This federal aid comes at a crucial time - Rhode Island's unemployment rate is one of the highest in the nation. According to the August report from the Bureau of Labor Statistics, Rhode Island has the second-highest rate in the United States at 10.7 percent, with only Nevada ranking ahead. This statistic puts Rhode Island well above September's national unemployment rate of 7.8 percent.
Jonathon Dworkin, Langevin's spokesman, attributed Rhode Island's high unemployment partly to its "skills gap" in areas like health care and information technology. The workers' skills do not match the skills that employers need, Dworkin said. Langevin and his fellow Rhode Island congressmen aim to use this federal funding to provide the training necessary for workers to close the skills gap and find jobs.
This news also comes as incumbents Whitehouse, Langevin and Cicilline are facing reelection campaigns. Each has made jobs and the economy a major plank in his campaign platform, but the impact of this funding on the politicians' reelection chances remains to be seen.
Though the economy and job creation are his top priorities, Whitehouse said he is skeptical the funds will give his campaign a boost. "I don't think it will help particularly," he told The Herald, "except ... as it reflects we are a hardworking delegation that tries very hard to deliver for Rhode Island."
-With contributing reporting by Shefali Luthra
