Atlanta

Department of Labor spending $46 million to modernize unemployment insurance system

Georgia Department of Labor One Clayton County woman says someone opened a claim in her name, and now she’s out more than $17,000. (WSBTV.com News Staff)

ATLANTA — The Georgia Labor Department is embarking on a $46 million modernization effort to overhaul its unemployment insurance system, with plans to launch a new cloud-based platform by Fall 2026.

The initiative, led by the new Labor Commissioner Barbara Rivera Holmes, aims to address the significant challenges the department faced during the COVID-19 pandemic, when it struggled to process an unprecedented number of unemployment claims.

“What I really, really want to emphasize is that this really is a new era for the Georgia Department of Labor,” Rivera Holmes said, who took office in April following the passing of Bruce Thompson.

During the pandemic, the Georgia Labor Department was overwhelmed by the volume of unemployment insurance claims, leading to delays, errors, and fraud.

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The existing system, created in the 1980s, was not equipped to handle the demands of modern claim processing.

Rivera Holmes is spearheading the largest unemployment insurance modernization effort in Georgia’s history.

She emphasized that replacing the outdated system with a secure cloud-based platform is a key priority.

This new system is expected to be more user-friendly, less susceptible to fraud, and capable of processing claims more efficiently.

The modernization project is being funded through a combination of state and federal resources, and Rivera Holmes is hopeful that Georgia lawmakers will continue to support the initiative during budget discussions at the General Assembly.

In addition to upgrading the unemployment insurance system, Rivera Holmes is committed to enhancing the department’s ability to connect job seekers with employers, thereby benefiting both the workforce and the state’s economy.

“This is really an exciting time, and as you’ve seen in our new strategic plan, it is bold,” Rivera Holmes said.

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