Organizational adaptation, task complexity, and effective administration of unemployment programs in the American states

IT modernization reforms seek to improve administrative performance by improving the delivery of program benefits. Performance benefits manifest in a reduction in agency‐induced administrative errors, and a reduction in performance gaps between high and low complexity task caseloads. These claims are evaluated by assessing the impact of IT modernization reforms instituted by state unemployment insurance payment (UIP) agencies from 2002 to 2022. The evidence reveals that these reforms have discernible, unconditional dynamic effects, lowering overall program error rates by 20.95% over 60 months, as well as reducing both absolute and relative reduction in benefit overpayment error rates relating to program efficiency. IT reforms close the performance gap for overall program error rates between high and low task complexity caseloads involving individuals seeking different occupations. This evidence corroborates existing claims that technological‐based administration is inherently non‐neutral since program efficiency gains are emphasized relative to program accessibility gains.