Iowa is shuttering its decades-old system for processing unemployment insurance claims, replacing it with a system that is expected to make it easier for Iowans to file for joblessness benefits and look for jobs.

Since the early 1970s, Iowa joblessness benefits have been processed by a state computer mainframe. Participation in reemployment activities such as searching for a job and enrolling in training programs have been located on different websites.

People seeking unemployment benefits filed claims on one website and kept track of job searches on a different site, Jeff Eckhoff, a spokesperson for Iowa Workforce Development, said. “We’re combining those two things into one. It should be a much smoother process.”

The state’s old system for filing unemployment claims was shut down on Tuesday. The new system will be launched on June 3.

The change to the new system is occurring in mid-spring because, traditionally, it is when the least number of unemployment claims are filed, Eckhoff said.

Throughout much of May, the state workforce agency provided claimants and employers information about the move to the new system. (Claimants who did not file prior to the shutdown will be able to file retroactive claims on the new system.)

The new system is designed by Geographic Solutions, which is headquartered in Palm Harbor, Fla. Established in 1992, the company develops state-of-the-art software systems that integrate unemployment insurance and job seeking operations into a single, online system.

The company’s systems are used in over 40 states and U.S. territories and by the federal government, according to its website. The company works with state level workforce development agencies as well as county-level agencies, colleges and prisons.

The state of Iowa has been planning the upgrade of its unemployment insurance claims processing system for more than five years, agency spokespeople said. Planning began in 2020 but was stalled by the pandemic.

A contract between the state of Iowa and Geographic Solutions was signed in April 2021, state records show. The initial cost to upgrade the state’s unemployment software filing system was $9.96 million. The state will pay Geographic Solutions over $3.1 million annually for at least seven years for licensing, maintenance and other related fees, according to the contract.

“For several years, IWD has been working hard to improve the unemployment process for Iowans and make navigating it as easy as possible so they can focus on what matters most – finding a promising career that matches their skills and goals,” Beth Townsend, the state agency’s executive director, said in a prepared statement. “Modernizing our unemployment system is the culmination of a lot of thoughtful work, and we’re excited to combine our systems in one central location on iowaworks.gov.

“Once live, this system will greatly enhance the experience for both individuals and employers and will help place them both in positions that will ultimately benefit our entire workforce.”

The new system not only is expected to improve the process of filing unemployment claims it also will improve the efficiency of Iowa Workforce Development’s staff by automating many processes currently performed manually, according to a news release.

Under the new system, employers will be notified more quickly when unemployment claims are filed, agency spokespeople said. Currently, employers are notified about unemployment claims through the mail. Employers who register on the new system will get email notifications soon after a former employee files a claim or appeals a claim that was denied.

The updated system will include enhanced security across all of the state’s workforce services, according to a news release. Currently, all Iowans receiving unemployment benefits use ID.me, an online identity network. Eventually, all of the site’s users – including those searching for jobs – will be required to verify their identity through ID.me.

For more information about the state’s new unemployment system, click here.