The beginning of help for workers
The stock market crash of October 1929 and the turmoil of the Great Depression led Congress to pass the Social Security Act in 1935. This act included the beginning of the unemployment insurance program: providing money to eligible workers who are unemployed through no fault of their own.
Unemployment benefits were first issued in Washington state in 1939. Cash was in short supply. Unemployed workers lined up for money to support themselves while they looked for work. Benefits provided a way to buy food and pay the mortgage or rent. Keeping money circulating also helped maintain consumer spending and jobs as the economy struggled to rebound. The maximum weekly payment then was about $15, with an average of just under $12. The average wage for all workers in the state was about $27 per week at that time.
Although the word "insurance" often gets left off of the program's formal name — Unemployment Insurance — the program is an insurance program. Employers pay taxes, which fund the benefits. And benefits are paid weekly, after people submit weekly claims to show they are eligible.
Today, unemployed workers no longer wait in line for cash. Instead, they apply and file weekly claims online or by phone. And get their benefits not in cash, but on a debit card or through direct deposit into their bank account. But the concept of the program is the same: giving a safety net to unemployed workers while they look for another job, and keeping money circulating in the economy.
More employment services join the department
The federal government established a network of placement offices in 1907 to help immigrants find jobs. Staff became federal employees under the War Manpower Commission in 1942.
Four years later, the federal government returned the responsibility of employment services to the states. At the same time, the federal Bureau of Labor Statistics signed a cooperative agreement with us to prepare and publish current employment figures.
In response to the post-World War II economic slump and the need to help returning veterans, our agency grew. New staff included veterans' employment representatives, employment counselors and staff trained to help people with disabilities.
Partnerships, the business community and WorkSource
By the end of the 1960s, we administered programs under the Manpower Development and Training Act, the Civil Rights Act and several others. These programs later consolidated under the Comprehensive Employment and Training Act.
The U.S. Department of Labor established special programs for unemployed workers who were not eligible for regular benefits. These programs included extended unemployment compensation, Trade Readjustment Allowance and Disaster Unemployment Assistance.
In the 1970s, the Job Service Employer Committees recognized employers as customers. We acknowledged that the ability to serve workers is directly related to meeting employer needs. The federal Job Training Partnership Act emphasized the importance of business as a customer in the early 1980s. This act required business participation in advisory committees. Read more about our committees.
The focus on business rose even higher when WorkSource was created in 1999. WorkSource is a partnership of business, government agencies, colleges and nonprofits. It has become the cornerstone for employment and training services delivered via career one-stop centers around the state.
Launching new 21st century programs
In 2020, we launched the Paid Family & Medical Leave program. We're one of only a handful of states with their own Paid Leave program. Eligible people began applying for benefits starting January 2020. Read more about the program and its history on the Paid Leave website.
A few years later, we began our role in the WA Cares Fund: a first-in-the-nation public long-term care insurance program. Employment Security is one of several state agencies managing the program. We started processing exemption applications and collecting premiums in 2023. Read more about the program on the WA Cares Fund website.
Our scope is widened, but our priorities remain constant
Employment Security's responsibilities and operations have evolved dramatically since 1939. But the focus remains on helping workers and businesses succeed.