CNMI's lack of unemployment system slows disaster job aid rollout

The Commonwealth of the Northern Mariana Islands (CNMI) is facing an unusual challenge in rolling out federal disaster unemployment assistance after Super Typhoon Sinlaku because the US territory does not have its own unemployment insurance system.

A Federal Emergency Management Agency (FEMA) fact sheet says the CNMI Department of Labour lacks the equipment, software and administrative framework needed to process unemployment claims, forcing officials to build a system before benefits can be distributed.

Instead of using an existing unemployment insurance programme, the CNMI will install a new software platform tailored to federal Disaster Unemployment Assistance requirements.

Applications will be processed through staff-assisted interviews, with trained Department of Labour employees entering claimants' information directly into the system.

Disaster Unemployment Assistance provides temporary financial help to people whose employment or self-employment was lost or interrupted because of a federally declared disaster and who do not qualify for regular unemployment benefits. The programme is funded by FEMA and administered by the US Department of Labor.

The CNMI requested about US$10.1 million in disaster unemployment assistance on 8 June.

The US Department of Labour endorsed the request two days later and forwarded it to FEMA, which said it is expediting its review.

Because the grant exceeds US$1m, FEMA must notify the US Congress before the funds can be released.

Once that process is completed, the money will be transferred through the US Department of Labor to the CNMI Department of Labor to implement the programme.

Benefits may be available for up to 26 weeks and cannot cover unemployment before the major disaster declaration issued on 23 April or after the end of the disaster assistance period, which runs through 24 October 2027.