Department of Labor estimates billions in unemployment insurance paid out improperly

The Labor Department inspector general estimates about 10 percent of unemployment insurance payments are not processed correctly. If that holds true after a huge influx of funds from coronavirus relief packages, some $36 billion could have been paid improperly, the office said.

What does that mean? The office stepped up investigations into unemployment insurance payouts after Congress’ spring coronavirus relief bill, the CARES Act, allotted $360 billion to the program. Investigators blamed a significant amount of improper payments on fraud, including identity theft and organized crime.

Dig deeper: Read Harvest Prude’s report in The Stew about the barriers to compromise on government funding and economic relief.