State Employment Security Services Act of 1989

State Employment Security Services Act of 1989 - Amends the Social Security Act to revise provisions relating to State unemployment insurance accounts.

Provides that, of amounts appropriated for credit to the Employment Security Administration Account (ESAA) for specified fiscal years, at least 90 percent shall be paid to States, two-thirds of which shall be for unemployment compensation law administration and one-third for public employment offices. Provides that not more than ten percent of such amounts may be used by the Department of Labor for its functions under specified laws relating to unemployment taxes and compensation and the U.S. Employment Service.

Revises formulas for transfers of funds to the extended unemployment compensation account.

Guarantees each State a minimum of the higher of 80 percent of Federal Unemployment Tax Act (FUTA) contributions by the State's employers to the ESAA or the State's 1986 allocation compounded for increases in the total funds in the ESAA.

Revises eligibility criteria to require the State Governor to develop a comprehensive annual employment security plan describing the delivery of unemployment insurance and employment services, including coordination of specified programs and collection and dissemination of labor market information.

Amends the Wagner-Peyser Act to add to the duties of the U.S. Employment Service: (1) developing and disseminating information about assessment and testing tools; and (2) serving as a central repository for research and a clearinghouse on State program activities. Revises provisions relating to allotments to States, authorized uses of such funds, and State plan requirements.

Establishes a demonstration project under which the Secretary of Labor shall permit an eligible State to impose its own unemployment administrative taxes and provide for increased FUTA offset credits for employers in the State as a means of obtaining funding for the administration of its unemployment compensation laws and the establishment and maintenance of public employment offices in the State. Directs the Secretary, within one year after enactment of this Act, to select three to five States to participate in such project. Sets forth selection criteria and application requirements.