ETA News Release: [October 26, 2006]
Contact Name: David James or Mike Volpe
Phone Number: (202) 693-4676 (202) 693-3984
U.S. Labor Department Launches Self-Directed
Career Advancement Accounts
Eight State Demo, Five States to Focus on Auto Industry Workers
WASHINGTON—U.S. Secretary of Labor Elaine L. Chao announced today that eight states have volunteered to test $3,000 personal accounts that workers can use to get needed education and training. These Career Advancement Accounts (CAAs) can be used by displaced or current workers to pay for expenses directly related to improving their job skills, such as tuition, books and fees.
“Career Advancement Accounts empower workers to access the education and skills training they need to take advantage of new career opportunities in high growth sectors of America's 21st century economy,” said Secretary Chao.
Under the Career Advancement Account demonstration project, three states (Indiana, Pennsylvania and Wyoming) will conduct pilot tests for statewide use. Another five states (Georgia, Michigan, Minnesota, Missouri and Ohio) will use CAAs to help workers impacted by layoffs in the automobile industry. In addition, a competition will be held shortly to conduct a random assignment study of CAAs.
Career Advancement Accounts were first announced as an element of President Bush’s American Competitiveness Initiative and are part of a broader effort to reform the workforce investment system and the billions of dollars spent on worker training. It is estimated that nationwide implementation of CAAs would more than triple the number of American workers who could access post-secondary education and training.
Under this demonstration, individual workers will be eligible for accounts worth $3,000, renewable for one year, for a total of $6,000. Between 2,500 and 4,000 automotive workers could potentially take advantage of CAAs. States will be eligible for grants of $1.5 million from the U.S. Department of Labor, provided they come up with $1.5 million in matching funds.
“Education is America’s great equalizer, and Career Advancement Accounts are like Pell Grants for workers – opening opportunities to increase their skills and equipping them for the competitive global economy,” said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco.
For more information on Career Advancement Accounts, please visit www.doleta.gov/.
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