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You can select from the set of elements for Agency and Program / Service Area Strategic Plans.

"Unpublished" is the version of the plan that is being worked on by agency personell. The "Published" version is the last version of the plan that was last published by the agency.

Certain Programs and Service Areas are marked to participate in strategic planning. Some are not marked because they are not appropriate for strategic planning.

2022-24 Strategic Plan
Virginia Employment Commission [182]
Mission, Vision, Values
Mission

The Virginia Employment Commission provides workforce services to workers and businesses, including job placement, temporary income support, labor market information, and career transition services.


Vision

Virginia Employment Commission: Virginia’s First Choice for Workforce Services and make the Virginia Employment Commission work for all Virginians.


Values


  • People

  • Accuracy

  • Teamwork

  • Efficiency


 
Agency Background Statement

The following federal laws provide the basis for programs administered by the Virginia Employment Commission (VEC). All VEC programs are 100% funded through grants provided by the United States Department of Labor with the exception of SFY 22 when the agency received State general funds to support agency operations and unemployment benefits.


  • Wagner-Peyser Act of 1933 – Directs the establishment of a national network of public labor exchange offices operated by the states.

  • Virginia Unemployment Compensation Act – Provides economic stabilization by administering compensation to those who are unemployed through no fault of their own.

  • Migrant and Seasonal Agricultural Worker Protection Act – Establishes guidelines and regulations for processing agricultural and seasonal job orders, and for registering farm labor contractors and their employees.

  • Trade Act of 1974 – Establishes programs to assist individuals who have become unemployed as a result of increased imports from, or shifts in production to, foreign countries. Program currently under Sunset Provisions with the expectation for renewal in the months to come.

  • Jobs for Veterans Act – Federal legislation that provides guidance on regulations that require priority of service to military veterans by United States Department of Labor-funded workforce programs.

  • The Work Opportunity Tax Credit (WOTC) – Provides for a Federal tax credit, available to employers, for hiring individuals from target groups who have consistently faced significant barriers to employment. WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.

  • Section 306, Title III, Social Security Act (enacted by BBA of 2018) – Permanently authorized RESEA program to assist UI claimants deemed likely to exhaust and assist in detecting fraud.


 
Agency Status (General Information About Ongoing Status of the Agency)

Future Direction, Expectations, and Priorities

Increasing need for workforce system building and program consolidation and coordination, requires VEC to be responsive to these issues and directives.  The key principles in building the workforce system are: flexibility in responding to the labor market needs; streamlined services; empowering customers; universal access; stronger private sector role; and greater state and local accountability.

The primary goal of the VEC is to become the best in class employment commission in the country, which will be accomplished by successfully meeting all of its objectives and key results. At the start of the COVID-19 pandemic, staffing levels at VEC were at their lowest in 50 years and the agency was then faced with an unprecedented influx of unemployment insurance claims in a short period of time. To ensure the VEC is better prepared to help Virginians in future times of need, VEC will develop a comprehensive plan that ensures resiliency and responsiveness to economic conditions regardless of the nature and duration of such events. VEC will create a funding model to support agency operations in times when federal funding is not adequate.

Services must be streamlined by integrating multiple employment and training programs with partners at the state and local level.  VEC continues to work to maintain alignment between available funding and expenses.  This includes marketing of lower-cost methods of service delivery such as on-line and phone-based services.  The VEC also uses opportunities to improve service to customers by reviewing, improving and realigning business processes through a variety of means including technology initiatives to improve customer satisfaction and agency costs.

 


 
Information Technology

Factors Currently Impacting IT:


  • The agency is continually reviewing existing business processes to increase productivity, efficiency, and customer ease of use. The drivers for these initiatives come from our customers, the Governor's Office, other State Workforce Agencies around the country, and internal suggestions.

  • The short-term initiatives are adequately funded. However, the funding for sustaining all of the enhancements can be problematic based on how the agency is funded. State funds have been received to address several initiatives; however it is not clear how these solutions will be funded in the long term.

  • Customer "ease of use" is an effort where the agency is reviewing all customer-facing instructions and correspondence to ensure the language is understandable and uses "plain language" wherever possible. This will ultimately require VEC websites and outbound correspondence to be modified.

  • There are several other oversight group requirements identified where the agency is taking the appropriate actions to address. These are being funded through various sources.


  • VEC will continue to build an Information Technology system that is flexible and responsive to the demands of the Agency and its customers.




 
Workforce Development

VEC’s employment level fluctuates based on workload and State unemployment levels. This helps to ensure staffing levels more appropriately align to available resources. Classified staff continue to be supplemented by wage employees and contractors. As the agency modernizes its systems, staff will be supported with advanced training, and efforts will be made to recruit and retain staff with the skills needed for the future. 


Staffing
Authorized Maximum Employment Level (MEL) 865.0  
Salaried Employees 865.0
Wage Employees 125.0
Contracted Employees 60.0
 
Physical Plant

VEC continues maintenance projects to properly maintain the four facilities it owns.  The agency will continue to provide services through the Virginia Career Works Centers.  Furthermore, the agency will continue to reduce temporary space that was secured during the pandemic.  

 





 


 
Key Risk Factors

VEC was notified by USDOL in spring 2022 that base funding for the administration of the Unemployment Insurance (UI) program would be reduced by ten percent for FFY 22. In addition, funding earned by VEC due to increased UI workloads was reduced by 45% for FFY 22. It is unknown if the reduction will also be applied for FFY 23. Funding for the Wagner-Peyser program has not kept pace with inflation for the last several years. Historically, funding to VEC has been able to support fluctuations in program workloads however, VEC anticipates these funds being exhausted in FFY 23 due to the pandemic workload.

The potential for a recession, although not imminent, does exist and will increase in likelihood over time. 

 


 
Finance
Financial Overview

The Virginia Employment Commission is funded by United States Department of Labor administrative and benefit grants. Unemployment Insurance benefits are paid from the Unemployment Insurance Trust Fund, which is funded through state tax paid by employers. Most non-general funds are appropriated for unemployment benefits.


Biennial Budget
  2023 General Fund 2023 Nongeneral Fund 2024 General Fund 2024 Nongeneral Fund
Initial Appropriation for the Biennium $0 $715,689,968 $0 $642,307,116
Changes to Appropriation $0 $0 $0 $0
Revenue Summary

VEC’s primary source of revenue collections is the State Unemployment Compensation Payroll Tax collected from Commonwealth of Virginia employers to cover state unemployment benefits.  The second primary source is the Unemployment Insurance funding provided by the United States Department of Labor to pay federal unemployment insurance benefits and to fund the administration of the Unemployment Insurance program.  The remaining revenue collections are provided by other federal funding to cover the administration of workforce development programs within the Commonwealth of Virginia.

VEC grants are capped and there are no additional funds to be secured from USDOL to offset operational increases.

 


 
Agency Statistics
Statistics Summary

VEC services continue to meet demand.  Key agency measurements are the total number of Unemployment Insurance claims processed, total number of individuals assisted in Career Works Centers, and total number of individuals assisted by call center representatives.


Statistics Table
Description Value
Total initial Unemployment Insurance claims processed 180,000
Total Job Services customers actively registered in Virginia Workforce Connection (online) 250,930
Total VEC customers assisted by Virginia Career Works Centers staff 40,019
Total calls answered by VEC Customer Contact Center representatives 875,000
 
Customers and Partners
Anticipated Changes to Customer Base

VEC anticipates changes to our customer volume to closely follow economic activity.  Over time, the agency expects a growing demand for workers with technical skills and that customers will expect services that are delivered through multiple channels for service delivery.


Current Customer List
Predefined Group Userdefined Group Number Served Annually Potential Number of Annual Customers Projected Customer Trend
Employer/ Business Owner Employer Services Customers via Virginia Workforce Connection 167,303 167,303 Increase
Unemployed Job Seekers: Wagner-Peyser and Trade Act Participants 250,930 250,930 Stable
Unemployed Job Seekers: Trade Act Participants 749 749 Stable
Veteran Veteran Program Participants 2,810 2,810 Stable
Unemployed Unemployment Insurance Initial Claimants 609,772 180,000 Decrease
Employer/ Business Owner Unemployment Insurance Tax Customers 235,038 248,393 Increase
Partners
Name Description
U.S. Department of Labor USDOL provides funding and program guidance to VEC. VEC provides state and local labor market information to USDOL.
Virginia Workforce Development Board The VWDB oversees workforce development services in the Commonwealth.
One-Stop Career Works Centers One-Stop Centers offer training referrals, career counseling, job listings, and similar employment-related services.
Local Workforce Development Boards VEC and local WDBs work together to provide services to unemployed workers in specific areas.
Partners under the Workforce Innovation and Opportunities Act Workforce Innovation and Opportunities Act (WIOA) partners, which include, but are not limited to: Virginia Department of Rehabilitative Services, Virginia Department of Social Services, Virginia Community College System, Virginia Department of Corrections, Virginia Department of Medical Assistance Services
Virginia Community College System Virginia Community College System is a mandatory one-stop partner, and is the WIOA grant recipient for Virginia. VEC refers trade-impacted and other clients to VCCS training programs.
Migrant and Seasonal Farmworker Advisory Board VEC works with MSFW advisory boards to ensure that federal standards for safe working and housing conditions are met.
Executive Branch Governor, Secretary of Labor
Legislature VA General Assembly, Commission on Unemployment Compensation
State and Local Government Entities VEC supplies current labor market information, and assists in responding to mass layoffs and plant closings in local areas.
Internal Revenue Service VEC partners with IRS to recoup UI overpayments, and to administer programs that provide services to targeted groups of workers.
Business organizations, such as Chambers of Commerce. and others VEC supplies information about VEC programs and services to existing, new, and prospective employers.
Veterans Employment and Training Services for Virginia (VETS) VETS serve Virginia's veterans and separating service members by preparing them for meaningful careers, providing employment resources and expertise, and protecting their employment rights.
Voluntary local and state partners in workforce development. Examples of voluntary partners include, but are not limited to: Faith-based organizations, Economic development agencies and organizations, Veterans organizations, such as VFW, American Legion, DVA, and others
National Association of State Workforce Agencies VEC partners with National Association of State Workforce Agencies for Integrity Data Hub fraud analytics and for DOL program and operational-related training
 
Major Products and Services

The Virginia Employment Commission provides employers and job seekers with access to workforce services that assist in both securing and retaining employment, and finding qualified workers to fill jobs.

As a lead partner in the state workforce system, the VEC administers the following workforce programs:


  • Employment Services

  • Unemployment Insurance (UI) Services

  • Reemployment Services Orientation program and Reemployment Services and Eligibility Assessment (RESEA) program

  • Disabled Veterans Outreach Program and Local Veterans Employment Representative programs

  • Trade Adjustment Assistance program (currently under Sunset Provisions with the expectation for renewal in the months to come)

  • Work Opportunity Tax Credit (WOTC) program

  • Migrant and Seasonal Farm Workers and Foreign Labor Certification Program

The VEC provides job seekers with access to services designed to prepare them for job search, job advancement, and/or career change.  Veterans of military service who are seeking employment receive priority of services.

The VEC provides Trade Program (currently under Sunset Provisions with the expectation for renewal in the months to come) participants and veterans with career services and Unemployment Insurance services; and referrals to services of other partner agencies in the One Stop system. Eligible Trade Program participants may receive training to develop in-demand employment skills.

The VEC conducts outreach to veterans who could benefit from intensive job skills services and markets these services to potential clients.

The Virginia Workforce Connection (VWC) is VEC's online, customer portal. Through the VWC, job seekers and employers enjoy a modern, integrated and efficient experience. Employers have access to one of the state’s largest pools of qualified workers, job seekers and business-related services to support their workforce and economic development needs. Job seekers may register for job seeker services, take self-assessments, and use the virtual recruiter tool to assist them in finding employment opportunities.

For Job Seekers, VWC provides users with access to a comprehensive array of tools, including:


  • Targeted and user-specified search of the most current and comprehensive job listings and postings available.

  • Career qualification assessment tools and training referrals.

  • Automated, personalized notification of new employment opportunities in real time.

For Employers, VWC provides users with the ability to:


  • Post current job openings at their convenience, 24 hours a day, 365 days per year.

  • Search an expansive database of qualified candidates and review their active resumes.

  • Access the Daily Virtual Recruiter Candidate Resume Notification system, which allows an employer to be notified when new resumes have been created which meet their specific search criteria. 

The Virginia Workforce Connection is accessible at Virginia Career Works Centers and via the Internet.  All other VEC sponsored web accessible information systems are available on the VEC website.

The VWC also provides Labor Market Information (LMI) to a broad spectrum of users. The Virginia Employment Commission provides a number of strategic business services through LMI.  The VEC provides LMI as a product that is available to the general public, the Governor and other legislative customers, the Virginia Board of Workforce Development, Local Workforce Development Boards, State Agencies, the United States Department of Labor (USDOL), and other governmental entities.

In addition to LMI, the Economic Information & Analytics (EIA) Division of the VEC provides a number of products and services such as:


  • Local Area Unemployment Statistics

  • Quarterly Census of Employment and Wages

  • Current Employment Statistics

  • Occupational Employment Statistics

 


 
Performance Highlights

VEC provides services in four service areas:


  • Job Placement Services

  • Unemployment Insurance Services

  • Workforce Development Services

  • Economic Information Services

Performance in the four service areas supports the agency’s strategic plan goals:


  • Become the best in class employment commission in the country

  • Meet or exceed United States Department of Labor performance measure targets for agency programs

  • Be a leader in the development and implementation of the state workforce system under the U.S. Workforce Innovation and Opportunity Act (WIOA)


Selected Measures
Name MeasureID Estimated Trend
Percentage rate of job seekers who enter employment after receiving services from the agency. 18247001.001.001 Maintaining
Percent of first-time Unemployment Insurance (UI) payments made on time 18247002.001.001 Improving
 
Agency Goals
Become the Best in Class Employment Commission in the Country
Summary and Alignment

VEC is committed to performance at every level of our operation. Performance means delivering accurate, timely and efficient services that put the customer first, prioritize innovation, foster continuous improvement; and employ exemplary stewardship of public resources.

VEC is committed to continually communicating and implementing state and federal policies and procedures to safeguard sensitive information; protecting it against unauthorized use, inspection or disclosure.

Objectives
»Eliminate All Backlogs
Description

The agency will work to eliminate remaining pandemic related backlogs to all Unemployment Insurance workstreams. These include claims processing, adjudication, fraud investigations, and appeals.

Strategies

• The agency will conduct regular operations meetings and reporting to provide insights and actionable measures to reduce the backlog.

• The agency will conduct training for staff to leverage their ability to more quickly and more accurately complete work.


• The agency will implement various technology enhancements to improve the function and capabilities of the Unemployment Insurance system.

Measures
No measures linked to this objective
»Becoming Best in Class
Description

The agency will develop and execute a plan that will result in Virginia being ranked as a top performer among other states for Unemployment Insurance, Workforce, and Bureau of Labor Statistics programs.

Strategies

• Conduct an agency assessment to determine capacity and identify key strategies to produce best in class performance results.

• Complete recommendations from 2021 JLARC report on the Virginia Employment Commission and monitor to ensure compliance on an ongoing basis.

• Develop reporting tools through Power BI to give managers and leaders insights into performance.

• Recruit, retain, and assign qualified staff to deliver quality customer services based on defined performance standards.

Measures
No measures linked to this objective
»Become resilient and responsive to the economy and the needs of workers in Virginia
Description

Resiliency built into business processes as VEC moves into post-transformation phase and has become best in class.

Strategies

• Develop a Resiliency Plan that enables the agency to respond to economic events that require increased capacity and capability to support Virginians in their time of need.

• Build an Information Technology system that is flexible and responsive to the demands of the agency and its customers.

• Create a funding model that enables the agency to respond to needs in a timely and responsive manner.

Measures
No measures linked to this objective
Meet or exceed United States Department of Labor performance measure targets for agency programs.
Summary and Alignment

Meeting United States Department of Labor performance measure targets is a key component in delivering timely and accurate service to our customers. The VEC strives to exceed all performance benchmarks and to be recognized as a national leader in workforce development.

Objectives
»Provide employers and job seekers with workforce development solutions, based on sector demand, that contribute to the growth of Virginia's economy.
Description

Measure and report the number of unemployed job seekers who successfully obtain and retain new employment after receiving Wagner-Peyser job placement services. This objective demonstrates the effectiveness of VEC efforts to match qualified job seekers with Virginia's employers.

Strategies

• Provide continuous professional development for VEC Workforce Services Division staff. Continually seek to improve the effectiveness of VEC workforce services. Continually strive to better understand the business needs of the Virginia employer community, and to meet those needs through innovative approaches to the realities of workforce service.

• Promote workforce and economic development collaboration to develop and identify job placement and job referral opportunities for job seekers and employers.

• Establish system strategies for better resource usage.

Measures
No measures linked to this objective
Be a leader in the development and implementation of the state workforce system under the U.S. Workforce Innovation and Opportunity Act (WIOA).
Summary and Alignment

A well-prepared, skilled, and available workforce is among the most vital factors in economic growth. By developing a seamless and integrated workforce development system, the VEC will use and leverage its resources to provide a single point of entry for employers, workers and job seekers. The workforce development system will eliminate duplication of services, enhance participation, accommodate the demand needs of employers and improve customer satisfaction.

Objectives
»Provide employers and job seekers with workforce development solutions, based on sector demand, that contribute to the growth of Virginia's economy.
Description

Measure and report the number of unemployed job seekers who successfully obtain and retain new employment after receiving Wagner-Peyser job placement services. This objective demonstrates the effectiveness of VEC efforts to match qualified job seekers with Virginia's employers.

Strategies

• Provide continuous professional development for VEC Workforce Services Division staff. Continually seek to improve the effectiveness of VEC workforce services. Continually strive to better understand the business needs of the Virginia employer community, and to meet those needs through innovative approaches to the realities of workforce service.

• Promote workforce and economic development collaboration to develop and identify job placement and job referral opportunities for job seekers and employers.

• Establish system strategies for better resource usage.

Measures
No measures linked to this objective
 
Supporting Documents
None
 
Program and Service Area Plans
Service Area 47001: Job Placement Services
 
Description

Service Area Description

The Workforce Services Division implements programs and processes that provide assistance to employers who are seeking to hire qualified workers, and to workers who are seeking employment.


  • Employment Services (or Job Services), established by the Wagner-Peyser Act, makes available job search assistance to individuals, and recruiting and referral services to employers. Services to employers include screening and referring applicants for job vacancies, and providing vital labor market information for business and economic planning. Employers may participate in local Employer Advisory Committees in order to become aligned closer with VEC and give feedback on the delivery of services.

  • Services to workers include job referral and placement, referral to training, and job search skills-building activities. Services are available to anyone eligible to work in the United States.


  • VEC leverages resources to administer special programs and services for job seekers and employers that provide job placement services for special groups, including: 


    • Veterans Programs. Through the Local Veterans Employment Representative (LVER) Program and Disabled Veterans Outreach Program (DVOP), VEC provides case management, placement assistance, and transition services for veterans of military service. Veterans of the U.S. military receive priority of service, in accordance with Federal law and regulations, in all of the job placement services.

    • Trade Adjustment Assistance (TAA) Program. TAA provides assistance to workers and businesses who are impacted by U.S. import/export policies that result in downsizing a workforce or going out of business, including: case management, placement assistance, training, and income support (currently under Sunset Provisions with the expectation for renewal in the months to come).

    • Foreign Labor Certification Program provides services to employers and to agricultural and non-agricultural foreign workers seeking temporary or permanent employment.

    • Work Opportunity Tax Credit Program provides services to employers who hire employees and veterans from various target groups with significant barriers to employment.

    • Reemployment Services and Eligibility Assessment (RESEA) provides individualized career services to UI claimants who are deemed likely to exhaust their benefits. This program is funded by UI grants but administered by Workforce Services.

    • Provision of services to migrant and seasonal farm workers. 



Also included are the administrative and staff resources necessary to support the functions of this service.


Mission Alignment and Authority

The federal Workforce Innovation and Opportunity Act (Public Law 113-128), the Wagner-Peyser Act (29 U.S.C. 49) and Section 60.2 - 113 of the Code of Virginia authorize the establishment of and requirements for VEC Job Placement Services. Workforce Services directly aligns with the VEC’s mission of promoting economic growth and stability in the Commonwealth by providing job placement assistance and services. To accomplish the mission, staff is empowered and given opportunities to develop and enhance their skills, and innovative ways to use technology to enhance the delivery of services to employers and job seekers will be explored.


Products and Services
Description of Major Products and Services

The Virginia Employment Commission provides employers and job seekers with access to workforce services that assist in both securing and retaining employment, and finding qualified workers to fill jobs.

The VEC provides job seekers with access to services designed to prepare them for job search, job advancement, and/or career change.  Veterans of military service who are seeking employment receive priority of services.

The VEC provides Trade Program (currently under Sunset Provisions with the expectation for renewal in the months to come) participants and veterans with career services and Unemployment Insurance services; and referrals to services of other partner agencies in the One Stop system. Eligible Trade Program participants may receive training to develop in-demand employment skills.

The VEC conducts outreach to veterans for the purpose of locating candidates who could benefit from intensive services and markets these services to potential clients.

The Virginia Workforce Connection (VWC) is VEC's online customer portal. Through the VWC, job seekers and employers enjoy a modern, integrated and efficient experience. Employers have access to the state’s largest pool of qualified workers, job seekers and business-related services to support their workforce and economic development needs. Job seekers may simultaneously apply for Unemployment Insurance benefits and register for jobseeker services, take self-assessments, and utilize the virtual recruiter tool to assist in finding employment opportunities.

For Job Seekers, VWC provides users with access to a comprehensive array of tools, including:


  • Targeted and user-specified search of the most current and comprehensive job listings and postings available

  • Career qualification assessment tools and training referrals

  • Automated, personalized notification of new employment opportunities in real time

For Employers, VWC provides users with: 


  • The ability to post current job openings at their convenience, 24 hours a day, 365 days per year.

  • The ability to search an expansive database of qualified candidates and review their active resumes.

  • The ability to access the Daily Virtual Recruiter Candidate Resume Notification system, which allows an employer to be notified when new resumes have been created which meet their specific search criteria. 

The Virginia Workforce Connection is accessible at Virginia Career Works Centers and via the Internet.  All other VEC sponsored web accessible information systems are available on the VEC website.

The VWC also provides Labor Market Information (LMI) to a broad spectrum of users. The Virginia Employment Commission provides a number of strategic business services through LMI.  The VEC provides LMI as a product that is available to the general public, the Governor and other legislative customers, the Virginia Board of Workforce Development, Local Workforce Development Boards, state agencies, the United States Department of Labor (USDOL), and other governmental entities.

The VEC also provides Rapid Response services that promote economic recovery and vitality by developing an ongoing, comprehensive approach to identifying, planning for, responding to layoffs and dislocations, and preventing or minimizing their impacts on workers, businesses, and communities.


Product / Service Statutory Authority Regulatory Authority Required or Discretionary GF NGF
Employment Services Wagner-Peyser Act of 1933 (29 U.S.C. 49) Required $0 $15,417,551
Jobs of Veterans State Grant (Disabled Veterans' Outreach Program/Local Employment Representatives (38 U.S.C. §4102A(b)5) Required $0 $5,794,207
Trade Act program Trade Act of 1974 (PL 107-210) Required $0 $7,889,717
Migrant and Seasonal Farm Workers program Migrant and Seasonal Agricultural Worker Protection Act (PL 97-470) Required $0 $577,792
Work Opportunity Tax Credit program The Taxpayer Relief Act of 1997 (PL 105-34) Required $0 $435,789
Rapid Response Title 20, Chapter V, Part 682 Required $0 $1,286,208
Financial Overview

The Virginia Employment Commission is funded by United States Department of Labor administrative and benefit grants, and by the Unemployment Trust Fund. Most non-general funds are appropriated for unemployment benefits.

VEC was notified by USDOL in spring 2022 that base funding for the administration of the Unemployment Insurance (UI) program would be reduced by ten percent for FFY 22. In addition, funding earned by VEC due to increased UI workloads was reduced by 45% for FFY 22. It is unknown if the reduction will also be applied for FFY 23. Historically funding to VEC has been able to support fluctuations in program workloads however, VEC anticipates these funds being exhausted in FFY 23 due to the pandemic workload.


Biennial Budget
  2023 General Fund 2023 Nongeneral Fund 2024 General Fund 2024 Nongeneral Fund
Initial Appropriation for the Biennium $0 $47,856,967 $0 $47,928,392
Changes to Initial Appropriation $0 $0 $0 $0
 
Supporting Documents
None
Service Area 47002: Unemployment Insurance Services
 
Description

Service Area Description

 

The Unemployment Insurance Services Division administers programs and processes that provide temporary income assistance to qualified individuals who become unemployed or are faced with reduced employment. The main objectives for this Service Area are to alleviate hardship for the unemployed, prevent unemployment, promote reemployment, and provide stability to the economy.

The Unemployment Insurance System was created by the Social Security Act of 1935 in response to chaotic economic conditions created by the Great Depression. The program was established and continues today as a joint partnership between the states and the federal government. It is administered by states with oversight by the U.S. Department of Labor.

 Unemployment Insurance Services is organized administratively into three components:


  • Tax – Establishes employer liability for state UI taxes used to fund the benefits paid to eligible claimants, collects UI taxes when due, monitors employer accounts for compliance through a program of audits, and follows up on delinquent accounts for collection.

  • Benefits – Determines eligibility for unemployment insurance benefits when claims are filed, adjudicates eligibility issues, and pays benefits when due.

  • Appeals – Handles resolution of disputed UI claims through a two-tiered appeals process (First Level Appeals and Commission Appeals). The Office of Commission Appeals is the final administrative adjudicative authority within the VEC in disputed benefit and tax liability cases.

Unemployment Insurance Services operates several programs to maximize integrity, detect fraud, and determine over/under payments. Included are the following:


  • State and Federal Treasury Offset Program

  • Benefit Payment Control Program

  • Eligibility Review Program

  • Benefit Accuracy Measure Program

  • Tax Performance System Program

  • Integrity Data HUB (IDH) in partnership with the National Association of State Workforce Agencies (NASWA)

In addition to the traditional state Unemployment Insurance Program this Service Area administers the following unique unemployment assistance programs:


  • UCFE – Unemployment Compensation for Former Federal Employees

  • UCX – Unemployment Compensation for Ex-Military Personnel

  • DUA – Disaster Unemployment Assistance

  • EUC – Emergency Unemployment Compensation

  • TRA/TAA – Unemployment Assistance to workers impacted by U.S. import/export policies that result in downsizing and business closures

  • Federal Extended Benefits – Federally legislated programs that provide additional income assistance to individuals unemployed for long periods, due to severe economic conditions

The administrative and support services necessary to support the functions of this service area are also provided.


Mission Alignment and Authority

Title III and Title IX of the Social Security Act of 1935, together with the Unemployment Tax Act (29 U.S.C. 23) and Section 60.2 of the Code of Virginia authorize the establishment of and the requirements for the VEC Unemployment Insurance program. This Service Area aligns with the VEC’s mission by providing temporary income support to qualified individuals as they seek to become suitably reemployed.


Products and Services
Description of Major Products and Services

Unemployment Insurance Benefits: The VEC is responsible for paying unemployment benefits to individuals who become unemployed through no fault of their own. This area administers the process to file claims, adjudicate issues associated with claims, and employ techniques to ensure the integrity of the UI program.

The unemployment insurance claims process uses convenient, user-friendly methods to access services. This includes the ability to file initial claims via the Claimant Self Service portal (VEC's flagship online customer portal) or by calling the Customer Contact Center.  Once a claim is established, weekly continuing claims are processed online through the Claimant Self Service portal and through the telephonic Interactive Voice Response System.

Fact-finding reviews are conducted in order to resolve disputed claims.  Determinations to qualify or to deny benefits are rendered and include appeal rights.  Benefits that are paid or denied are subject to a system of checks and balances that ensures the quality and fairness of the process.

Unemployment Insurance Tax: The VEC is responsible for the accurate assessment and collection of unemployment insurance taxes from employers.  The Agency uses a network of Tax Representatives throughout the state.  These representatives provide employers with the information they need to ensure they are in compliance with both state and federal law.

Employers submit forms electronically. The convenient on-line system to register and file quarterly reports is available at https://www.vec.virginia.gov/employers/account-number.


Product / Service Statutory Authority Regulatory Authority Required or Discretionary GF NGF
Unemployment Insurance Benefits Virginia Unemployment Compensation Act, Chapter 6 Required $0 $583,494,598
Unemployment Insurance Tax Virginia Unemployment Compensation Act, Chapter 5 Required $0 $49,802,834
Financial Overview

The Virginia Employment Commission is funded by United States Department of Labor administrative and benefit grants, and by the Unemployment Trust Fund. The Trust Fund is a non-general fund, maintained from the collection of Unemployment Insurance taxes paid by employers. The Trust Fund is appropriated exclusively for the payment unemployment benefits.


Biennial Budget
  2023 General Fund 2023 Nongeneral Fund 2024 General Fund 2024 Nongeneral Fund
Initial Appropriation for the Biennium $0 $663,622,004 $0 $590,182,648
Changes to Initial Appropriation $0 $0 $0 $0
 
Supporting Documents
None
Service Area 47003: Workforce Development Services
 
Description

This funding supports the administration of the Workforce Innovation and Opportunities Act (WIOA) services that are provided by the VEC on behalf of Local Workforce Development Boards.


Mission Alignment and Authority

This service area aligns with VEC's mission to support the development of a highly trained and well-equipped workforce to meet the needs of a changing economy. The federal Workforce Innovation and Opportunity Act (Public Law 113-128), the Wagner-Peyser Act (29 U.S.C. 49) and Section 60.2 - 113 of the Code of Virginia authorize the establishment of and requirements for VEC Workforce Development Services. Workforce Development Services directly aligns with the VEC’s mission of promoting economic growth and stability in the Commonwealth by providing job placement assistance and services.


Products and Services
Description of Major Products and Services

The funding for this program supports the VEC's role as one of the managing partners of the Virginia Career Works Centers. As the managing partner, the VEC provides a meaningful role on Local Workforce Development Boards and assist with the management of workforce services operations, in conjunction with the Virginia Community College System (VCCS) who oversee One Stop Operators.

 


Product / Service Statutory Authority Regulatory Authority Required or Discretionary GF NGF
VEC Workforce Development Services The Workforce Innovation and Opportunity Act (Public Law 113-128) • Wagner-Peyser Act (29 U.S.C. 49) Code of Virginia Section 60.2 - 113 Required $0 $304,683
Financial Overview
nothing entered
Biennial Budget
  2023 General Fund 2023 Nongeneral Fund 2024 General Fund 2024 Nongeneral Fund
Initial Appropriation for the Biennium $0 $947,748 $0 $943,097
Changes to Initial Appropriation $0 $0 $0 $0
 
Supporting Documents
None
Service Area 53402: Economic Information Services
 
Description

Economic Information & Analytics (EIA) is responsible for the collection, analysis, and dissemination of data relating to all aspects of the Commonwealth’s labor market. Units within the division provide administrative reporting services, research and analysis services, and management services to the agency and to the public.

The EIA Division is the official source of labor market information, census data, and economic information in Virginia.  By providing comprehensive information and related analysis, we serve as a unique and valuable resource to employers, job seekers, economic developers, planners, consultants, economists, and government officials.


Mission Alignment and Authority

The Bureau of Labor Statistics is authorized to collect labor market information pursuant to 29 USC 1, an Act to Establish the Bureau of Labor.  Section 14 of the Wagner-Peyser Act (29 USC 49L-1) authorizes the Secretary of Labor to reimburse the states to provide data for national statistical programs. Section 60.2 - 113 of the Code of Virginia provides the state level authorization for the establishment of and the requirements for VEC Economic Information & Analytics. This service area directly aligns with the VEC’s mission to promote economic growth and stability by providing workforce information.


Products and Services
Description of Major Products and Services

The Current Employment and Wages Statistics (CES) program surveys approximately 9,000 nonagricultural employers each month, collecting data on employment, hours, and earnings. This series offers a current estimate of employment by industry. The CES data series is widely used by businesses, government agencies, universities, trade associations, economists, and researchers to study economic conditions and to develop plans for the future. Researchers use the trends in the CES statistics as economic indicators.

The Local Area Unemployment Statistics (LAUS) programs produces estimates of labor force components for Virginia’s cities and counties and combinations, such as labor market areas and metropolitan areas. These estimates are produced monthly by place of residence and provide a snapshot of the total civilian labor force, the number employed, the number unemployed, and the unemployment rate. These estimates are a key indicator of local economic conditions and are used to determine the eligibility of an area of an area for benefits in various federal programs.

The Occupational Employment and Wages Statistics (OEWS) program collects staffing pattern data and wage information by occupation from private and public business establishments. The main purpose of the OES program is to produce employment and wage data for approximately 750 occupations in each of the eleven metropolitan statistical areas and four balance-of-state regions. Another important use of the staffing pattern data produced by the OES program is in the occupational employment projections.

The Quarterly Census of Employment and Wages (QCEW) program is a comprehensive and accurate source of employment and wage data by industry at the state and city/ county levels. It provides a virtual census of nonagricultural employees and their wages. The data is taken directly from the quarterly unemployment tax reports filed by Virginia employers. The QCEW data series has broad economic significance in evaluating labor trends and major industries developments.

The Research and Analysis (R&A) unit conducts economic research, makes analyses, and develops publications, special studies, and press releases, on a variety of economic issues and topics. The unit also provides staff support to executive and legislative commissions, task forces, and study groups.

Virginia participates in the State Data Center (SDC) program, which is a federal-state cooperative initiative, designed to make economic and demographic information from the U.S. Bureau of Census more readily available.

EIA also assists with the Rapid Reemployment program, in conjunction with the Workforce Services Division and WIOA Rapid Response. The program focuses on quicker reemployment of laid off workers by identifying staffing patterns within and across industries to match affected workers with similar companies.

 


Product / Service Statutory Authority Regulatory Authority Required or Discretionary GF NGF
Labor Market Information Bureau of Labor Act (23 Stat. 60) Required $0 $1,635,305
Financial Overview

This service area is primarily funded by federal grants and the agency’s Special Unemployment Compensation Administration fund.


Biennial Budget
  2023 General Fund 2023 Nongeneral Fund 2024 General Fund 2024 Nongeneral Fund
Initial Appropriation for the Biennium $0 $3,263,249 $0 $3,252,979
Changes to Initial Appropriation $0 $0 $0 $0
 
Supporting Documents
None
sp101 Strategic Plan - 07-07-2025 01:33:32