Extended Unemployment Insurance Reform Act of 1989

Extended Unemployment Insurance Reform Act of 1989 - Title I: Improved Program of Extended Unemployment Compensation - Amends the Federal-State Extended Unemployment Compensation Act of 1970 to limit the amount of extended compensation payable to an individual to the amount established in the individual's extended compensation account. Increases the limit on the amount established in such account. Sets forth the formula for determining the new limit.

Limits an individual's eligibility period for extended compensation to the number of weeks of the limit on the individual's compensation account. Requires the amount and duration of extended compensation payable under the interstate benefit payment plan to be the same as if the individual were filing the claim in the State establishing the account.

Requires that each unemployment benefit duration period be a three-month period beginning on the first Sunday of January of each year and the first Sunday of every third month thereafter. Sets forth formulas, based upon each State's insured unemployment rate, for determining whether a benefit duration period shall be an eight-percent, seven-percent, six-percent, five-percent, or four-percent period. Requires that a benefit duration period be a "low-unemployment period" if the State's adjusted insured unemployment rate for the first week of such period and the immediately preceding 12 weeks was less than four percent.

Sets forth an alternative method of determining a benefit duration period based upon the total rate of unemployment.

Requires that each State be paid an amount equal to the applicable percentage of the sum of the sharable extended compensation and the sharable regular compensation paid to individuals under State law.

Amends title IX (Employment Security) of the Social Security Act to authorize appropriations into the extended unemployment compensation account.

Title II: Demonstration Projects - Directs the Secretary of Labor (Secretary) to enter into a demonstration program agreement with at least five States whereby extended unemployment compensation would be available for certain substate areas with specified levels of unemployment.

Directs the Secretary to enter into a demonstration program agreement with at least five States for promotion of training programs for unemployment compensation recipients. Directs the Secretary to provide model criteria, technical assistance, and specified information for such State training programs. Directs State Governors to designate State agencies to approve training programs and participants. Directs the Secretary to: (1) collect data annually to evaluate such a demonstration program; and (2) transmit the first evaluation to the Congress by October 1, 1990. Provides, under the Social Security Act, for interest credits to a State's account in the Unemployment Trust Fund on the basis of State payments of unemployment compensation to individuals in approved training. Sets forth State reporting requirements. Requires the Secretary to report annually on the implementation of such training program provisions and on State regulations and procedures to comply with the Internal Revenue Code on unemployment compensation. Provides that the training program provisions under this title shall not be taken into consideration in determining whether there has been a net decrease in the solvency of any State unemployment compensation system.

Title III: Assessment - Authorizes appropriations from the Federal Unemployment Account for allotment to the States, in addition to funds annually allotted for the operation of State employment service agencies, for: (1) assessment, testing, and counseling services to identify the skills and aptitudes of unemployed persons unlikely to return to their former occupations, and to determine alternative occupations or training opportunities for which they may qualify; and (2) instruction in job search techniques.

Directs the States, in providing services under this title, to give priority to those most in need of assistance, including: (1) dislocated workers; (2) individuals who have been without jobs for at least 15 weeks and who want and are available for work; and (3) economically disadvantaged adults and youth.