www.dol.gov
|
October 19, 2008 DOL Home > About DOL > Annual Report 2005 > Strategic Goal 1 |
DOL Annual Report, Fiscal Year
2005 Strategic Goal 1: A Prepared Workforce Enhance Opportunities for America's Workforce America's engine of prosperity is its skilled workforce. The maintenance of our strong national economy depends, in part, on developing a steady stream of workers that are qualified job candidates possessing skills that are relevant to the needs of today's employers. The Department must ensure that every available labor pool is tapped, including job seekers with special needs such as the people with disabilities, veterans, disadvantaged youth, and those who have lost their jobs due to foreign competition. Addressing the job seekers' needs is further complicated by the changing workplace. New technologies, increased competition, and changing labor markets have prompted employers to downsize, change employment patterns, and seek alternative labor sources. Furthermore, the nature of work itself is changing, and the Department must support the need of our workforce for lifelong learning and skills upgrades. The Department has a leadership responsibility to support the needs of the changing workforce and position the U.S. for continued economic development and growth. This aspect of our mission is captured by the first strategic goal A Prepared Workforce. Agencies with programs supporting this goal are the Employment and Training Administration (ETA), Veterans' Employment and Training Service (VETS), the Bureau of Labor Statistics (BLS), and the Office of Disability Employment Policy (ODEP). The Department's performance in achieving this goal is determined by accomplishments organized at the outcome goal level and measured at the performance goal level. Three broad objectives Outcome Goals 1.1, 1.2 and 1.3 support Strategic Goal 1, and they contain nine performance goals (see table below). In FY 2005, the Department achieved or substantially achieved five of its goals for A Prepared Workforce a record that understates actual accomplishments, since most targets were reached even in goals falling into the not achieved category. Entered employment, retention, education and earnings change improved over prior year results in every instance, largely due to DOL's strategic integration of service delivery and targeting of services.
The following charts illustrate DOL's strategic goal net costs in FY 2005, with A Prepared Workforce shares set apart. The first allocates total Departmental costs of $49.912 billion; the second allocates an adjusted net cost of $12.222 billion that excludes major non-discretionary items associated with Strategic Goal 2.15 Net costs of this goal in FY 2004 were $8.654 billion.
The outcome goals and programs listed above, along with their results, costs, and future challenges are discussed in more detail on the following pages. 14These programs report
against goals that are included in the annual budget, but not the Performance
and Accountability Report. Outcome Goal 1.1 Increase Employment, Earnings, and Retention The Department assists workers and employers with valuable information and specific training to help them take full advantage of the constantly changing demands and resources in the labor market. Central to this effort is a nationwide network of approximately 2000 One-Stop Career Centers which assist communities to match adults to work and skill enhancement opportunities. This comprehensive workforce investment system also helps businesses meet their ongoing recruitment and human services needs. Through a national business services model, the Department helps national employers understand and use the full resources of the One-Stop system to better access trained workers. For individuals with disabilities, the One-Stop Centers have improved access to their facilities and services by installing assistive technologies. DOL is also making a special effort to help our nation's military service members adjust to and re-enter the civilian workforce by providing priority services at all One-Stop Centers pursuant to the Jobs for Veterans Act of 2002. The Employment and Training Administration (ETA), the Veterans' Employment and Training Service (VETS) and the Office of Disability Employment Policy (ODEP), with support from the Women's Bureau and the Center for Faith-Based and Community Initiatives, operate a number of programs and projects that provide information, assistance, skill-building opportunities, and effective strategies for providing the programs and services that lead to increased employment and earnings. In the first column of the table below are the numbers, agencies, reporting periods16, goal statements, achievement, and a summary of results at the performance indicator level for DOL performance goals associated with this outcome goal. Disappointing results were confined to efficiency measures (cost per participant), which were new this year. Targets that were established without reliable trend data proved overly ambitious. Performance for most of DOL's employment and training programs is measured by entered employment the percentage of participants who obtain jobs subsequent to receipt of services and by retention the percentage of those who obtained jobs who are still employed six months later. Earnings are important, too; no chart is provided because the two programs that have data used different indicators. This will be resolved over time as Federal job training program common measures are implemented. Baseline efficiency data exist for a few programs but offer little useful information at this point. These charts show, for each program in this outcome goal that tracks employment and retention rates, the result for the previous year, the target for the reporting period and the result. There are significant differences in entry and retention rates between programs; this can be explained by the types of services offered and the populations they serve. Increases across the board are partially attributable to improving overall economic growth and employment. Key DOL contributions were facilitating more integrated service delivery by State Workforce Agency partners and encouraging them to focus on high growth occupations and industries in placement and training services. The only surprise in employment and retention results was a pleasant one. Outcomes for job seekers using One-Stop employment services exceeded expectations for the second consecutive year. Accordingly, PY 2005 targets for employment and retention rates are being raised by several percentage points. DOL also played a crucial role in our Nation's response to Hurricane Katrina. Within days of Katrina's landfall, DOL awarded up to $191 million to affected States, including those States hosting evacuees. The funds, from the National Emergency Grant program, helped to create temporary jobs. These jobs put displaced people to work performing crucial jobs, such as providing shelter, food, and clothing, and performing clean-up and restoration work. These jobs also provide short-term training for vocational skills, which create new career pathways to help evacuees return to jobs in their community or where they choose to settle.
Results Summary
Disappointing results were confined to efficiency measures (cost per participant), which were new this year. Targets that were established without reliable trend data proved overly ambitious. Performance for most of DOL's employment and training programs is measured by entered employment the percentage of participants who obtain jobs subsequent to receipt of services and by retention the percentage of those who obtained jobs who are still employed six months later. Earnings are important, too; no chart is provided because the two programs that have data used different indicators. This will be resolved over time as Federal job training program common measures are implemented. Baseline efficiency data exist for a few programs but offer little useful information at this point. These charts show, for each program in this outcome goal that tracks employment and retention rates, the result for the previous year, the target for the reporting period and the result. There are significant differences in entry and retention rates between programs; this can be explained by the types of services offered and the populations they serve. Increases across the board are partially attributable to improving overall economic growth and employment. Key DOL contributions were facilitating more integrated service delivery by State Workforce Agency partners and encouraging them to focus on high growth occupations and industries in placement and training services. The only surprise in employment and retention results was a pleasant one. Outcomes for job seekers using One-Stop employment services exceeded expectations for the second consecutive year. Accordingly, PY 2005 targets for employment and retention rates are being raised by several percentage points. DOL also played a crucial role in our Nation's response to Hurricane Katrina, Within days of Katrina's landfall, DOL awarded up to $191 million to affected States, including those States hosting evacuees. The funds, from theNational Emergency Grant program, helped to create temporary jobs. These jobs put displaced people to work performing crucial jobs, such as providing shelter, food, and clothing, and performing clean-up and restoration worThese jobs also provide short-term training for vocational skills, which create new career pathways to help evacuees return to jobs in their community or where they choose to settle.
16Those indicating a Program Year (PY) are reporting on the period from July 1, 2004 to June 30, 2005 due to the forward funding mechanism of the Workforce Investment Act (WIA) of 1998. Net Cost of Programs
Future Challenges The Government Accountability Office (GAO) completed a study in FY 2005 that found room for improvement in access to One-Stops for persons with disabilities. DOL, in collaboration with the Rehabilitative Services Administration and the Social Security Administration, is developing a strategic plan to address the matter. The voluntary nature of the Apprenticeship program's relationships with employers and State Workforce Agencies makes it difficult to capture information consistent with the Federal job training program common measures. To encourage States' cooperation, Apprenticeship has been expanding its Registered Apprenticeship Information System (RAIS) electronic registration project. Increase Employment, Retention, and Earnings for
Qualified Adults Increase the employment, retention, and earnings of individuals registered under the Workforce Investment Act Adult program.
Program Perspective The Department uses four indicators to evaluate the success and cost effectiveness of WIA employment and training services for adults: entered employment, retention, earnings change, and cost per participant. A high entered employment rate indicates that participants have improved financial security. A high retention rate indicates stability of participants' new positions. Higher earnings change reflects effective assistance, especially of training services. The cost per participant gauges program efficiency. Successful leveraging of non-Federal funds can lower the cost per participant by allowing the program to increase the number of people served. National labor market conditions strongly influence the WIA Adult program outcomes. In recent years, during recovery from the economic downturn of 2000 and 2001, the program outcomes continuously improved as the unemployment rate decreased. Throughout this period, DOL continued to improve its integrated One-Stop delivery system and raise its performance standards accordingly. Over the past four years, targets for entered employment and retention increased a total of six and seven percentage points respectively. DOL adjusted the earnings change target to more accurately reflect current economic conditions. Analysis and Future Plans The broad economic indicators were positive over the past twelve months and provided a boost to the performance outcomes for the Adult program. During this period, the economy added about 2.2 million jobs, unemployment fell from 5.4 percent to 4.9 percent; and interest rates remained low. Productivity was up and average weekly earnings increased by 2.7 percent as reported by the Bureau of Labor Statistics. To continuously improve outcomes for WIA participants, the Department is focusing on integrated service delivery and new approaches to workforce investment designed to ensure workers have the right skills to get and retain good jobs with good wages. Key strategies include: 1) Strengthening strategic partnerships with the business and education communities to develop workforce solutions that are responsive to State and local economies and that that relate specifically to high demand occupations and industries; 2) Assuring that every individual, including individuals with disabilities, veterans, new Americans, older workers and others have access to the full array of integrated services through the One-Stop delivery system; and 3) Leveraging a wide array of non-WIA resources to maximize the impact of WIA investments and to train more workers with the skills they need to be successful.
Management Issues Separate funding streams for the Wagner-Peyser Act funded employment services and the WIA Adult and Dislocated Worker programs continue to present challenges to program performance, as services are duplicated and additional funds are spent on administrative support. DOL took steps to consolidate the reporting on all programs and is conducting a feasibility study in several State agencies. With WIA Reauthorization, DOL proposes to combine these funding streams together with WIA Youth funding into one consolidated program. The Government Accountability Office (GAO) issued its report in December 2004, Labor Has Taken Several Actions to Facilitate Access to One-Stops for Persons with Disabilities, but These Efforts May Not Be Sufficient (Study 2 in Appendix 2). DOL instituted a workgroup including the Rehabilitative Services Administration and Social Security Administration, as well as DOL's Civil Rights Center, Office of Disability Employment Policy and Veterans' Employment and Training Service that has met consistently since January 2005. In collaboration with the workgroup, DOL has begun to develop a comprehensive, long-term strategic plan to address the One-Stop system's provision of services to people with disabilities. This workgroup's mission is to develop an inter-agency work plan that will promote service delivery excellence for people with disabilities in the One-Stop Career Center system. The approved policies and strategies will be translated into a work plan. The GAO issued its February 2005 report, Employers Are Aware of, Using, and Satisfied with One-Stop Services, but More Data Could Help Labor Better Address Employers' Needs (Study 3 in Appendix 2). Prior to the issuance of this report, DOL proposed a comprehensive, streamlined reporting system for 12 different programs EMILE (ETA Management Information and Longitudinal Evaluation), and is currently conducting a feasibility study. Also, DOL revised its planning guidance to require States to describe how they will actively engage businesses and inform demand-driven service delivery approaches for all customers. A GAO report issued in May 2005, Labor Should Consider Alternative Approaches to Implement New Performance and Reporting Requirements (Study 4 in Appendix 2), examined EMILE. Pending completion of the aforementioned study, DOL revised reporting requirements, effective July 1, 2005, to facilitate common performance measures reporting across DOL's employment and training programs. A June 2005 GAO report, Substantial Funds Are Used for Training, but Little Is Known Nationally about Training Outcomes (Study 1 in Appendix 2), raised concern about how WIA funds are being used and how much is being spent on training. In response, DOL is standardizing the definition of participant exit' for purposes of assessing program performance. States began implementing these changes on July 1, 2005. Through the newly revised Workforce Investment Act Standardized Record Data system, DOL will be able to capture information on all participants who receive training in each program year. Improve Employment for Public Labor Exchange
Users Improve outcomes for job seekers and employers who receive One-Stop employment and workforce information services.
Program Perspective One-Stop employment services are provided universally to customers at no charge, with special emphasis on services for Unemployment Insurance (UI) claimants, migrant and seasonal farmworkers, veterans17, and businesses. Services include a wide array of workforce and labor market information, career guidance products and tools, assessments, job matching and referral, reemployment services for UI claimants, targeted services for veterans and more. DOL uses three key indicators to evaluate the success and effectiveness of One-Stop employment and workforce information services: entered employment, employment retention, and average cost per participant. A high entered employment rate indicates that participants have improved financial security. A high retention rate indicates stability of participants' new positions. With the implementation of common performance measures for Federal job trainings in PY 2005, DOL will add earnings change, which indicates the impact of services on post-program participation earnings potential. To stimulate full integration of workforce information services into planning, decision making, and service delivery programs for adults, including employment services, DOL is collecting and reporting data for PY 2005 on the impact of workforce information on participant employment outcomes. (See performance goal 04-4.1A Electronic Tools for further detail about the Workforce Information System.) Analysis and Future Plans In PY 2005, ETA will implement Federal job training program common measures. States will be required to report on One-Stop customers who receive workforce information services and their outcomes, and their two-year strategic plans will include a discussion of workforce information as a tool in serving job seekers and employers. To continually improve performance, DOL has aggressively expanded high growth industries and employers through its Business Relations Group (BRG). In partnership with States, the BRG has collaborated with large multi-state employers as well as industry associations to broker their connection to the one-stop delivery system. This partnership has helped match job seekers with employers. In addition to working toward integrating the Wagner-Peyser funded One-Stop employment services and WIA services, DOL has strengthened its focus on the role of workforce information in the design and delivery of core, intensive and training services.
Management Issues In PY 2004, ETA actively participated in a pilot study with VETS to research statistical models for goal setting purposes (Study 11 in Appendix 2). The efficiency component of the study has focused on how to determine unit costs for the general population of job seekers and veterans who receive One-Stop employment and workforce information services. The study pointed to several variables that will impact program cost per participant including the unemployment rate, cost of labor and facilities, population density, relative number of job seekers and veterans, and unexpected major corporate layoffs, among others. The earnings gain component of the study relied on a small sample of state data (three states) so the results may not be statistically relevant across all states. Nevertheless, average earnings gains among participating states equaled zero for all job seekers, and generally greater than zero for veterans. As part of an on-going response to concerns raised by the Office of Inspector General regarding the accuracy of data reported by States for performance, DOL developed and implemented a data validation methodology for WIA programs, including One-Stop employment services. State workforce agencies used handbooks, user guides, and software (developed by DOL) to validate outcomes reported in PY 2003 and PY 2004. In PY 2005, SWAs will implement common performance measures (for Federal job training programs). DOL will revise the data validation materials and software to support accurate and reliable data reporting. In 2004, One-Stop employment and workforce information services were assessed through the PART. The program was rated Adequate. The PART assessment found that accountability for performance results by grantees was insufficient given the delay in implementing long term performance measures. In response, DOL fully implemented the common measures for job training programs on July 1, 2005. ETA will collect baseline data on these measures during PY 2005 and grantees will negotiate levels of performance in PY 2006. 17For specific information about the outcomes achieved by veterans who receive One-Stop employment and workforce information services, please refer to Performance Goal 04-1.1D. Assist Dislocated Workers Increase the employment, retention, and earnings replacement of individuals registered under the Workforce Investment Act Dislocated Worker Program.
Program Perspective Four key indicators are used to assess the program's success. The entered employment rate indicates how quickly participants' incomes (hence family security) are restored and whether they maintain continuous attachment to the labor force with minimal disruption. The retention rate and earnings replacement indicators demonstrate the program's effectiveness at matching and/or enhancing participants' skills and abilities to maximize their opportunities. The average cost per participant measure gauges program efficiency. Successful leveraging of non-Federal funds lowers the unit cost by allowing the program to increase the number of people served. Analysis and Future Plans Broad economic indicators were positive over the past 12 months and provided a boost to outcomes. During this period, the economy added about 2.2 million jobs, unemployment fell from 5.4 percent to 4.9 percent, and interest rates remained low. Productivity was up and average weekly earnings increased by 2.7 percent as reported by the Bureau of Labor Statistics for the reporting period. In PY 2005, the Department continues implementing demand-driven workforce investment strategies that promote the successful transition of dislocated workers to good jobs and new careers. In addition, the Department is pro-actively developing transition strategies to position workers in declining industries (thus likely to be dislocated) to obtain the skills they need to transition more quickly.
Management Issues Separate funding streams for the Wagner-Peyser Act funded employment services and the WIA Adult and Dislocated Worker programs continue to present challenges to program performance as services are duplicated and additional funds are spent on administrative support. DOL took steps to consolidate the reporting on all programs and is conducting a feasibility study in several State agencies. With WIA Reauthorization, DOL proposes to combine these funding streams into one consolidated program. The Government Accountability Office (GAO) issued its February 2005 report, Employers Are Aware of, Using, and Satisfied with One-Stop Services, but More Data Could Help Labor Better Address Employers' Needs (Study 3 in Appendix 2). Prior to the issuance of this report, DOL proposed a comprehensive, streamlined reporting system for 12 different programs EMILE (ETA Management Information and Longitudinal Evaluation), and is currently conducting a feasibility study. Also, DOL revised its planning guidance to require States to describe how they will actively engage businesses and inform demand-driven service delivery approaches for all customers. A GAO report issued in May 2005, Labor Should Consider Alternative Approaches to Implement New Performance and Reporting Requirements (Study 4 in Appendix 2), examined EMILE. Pending completion of the aforementioned study, DOL revised reporting requirements, effective July 1, 2005, to facilitate the reporting of common performance measures across DOL's employment and training programs. A June 2005 GAO report, Substantial Funds Are Used for Training, but Little Is Known Nationally about Training Outcomes (Study 1 in Appendix 2), raised concern about how WIA funds are being used and how much is being spent on training. In response, DOL is standardizing the definition of participant exit' for purposes of assessing program performance, and States began implementing these changes on July 1, 2005. Through the newly revised Workforce Investment Act Standardized Record Data, DOL will be able to capture information on all participants who receive training in each program year. The Department is currently conducting a study in which seven State workforce agencies are co-enrolling all of their Trade Adjustment Act (TAA) participants into the Dislocated Worker program to examine how co-enrollment affects the performance outcomes of both populations. Results are expected in 2008. In response to the PART review conducted in 2002 in which the program was rated Adequate, DOL implemented common performance measures for job training programs. DOL is also integrating its training programs to eliminate duplication of services and provide flexibility to States. Help Veterans Get and Keep Jobs Improve employment outcomes for veterans who receive One-Stop and homeless veterans services.
Program Perspective Through the Homeless Veterans Reintegration Program (HVRP), VETS delivers targeted employment services to homeless veterans by making competitive grant awards, predominantly to community and faith-based organizations. HVRP grantees provide services such as career counseling and job search assistance, and establish collaborative linkages with local rehabilitation agencies for substance abuse treatment. These services often are provided in concert with local service providers funded by the Departments of Housing and Urban Development, Health and Human Services, and Veterans Affairs. As a component of One-Stop employment and workforce information services, the DVOP/LVER program enables SWAs to deploy veterans' program specialists where the needs for intensive services to veterans and transitioning service members are greatest. A two-tiered approach to service delivery allows job-ready veterans to be served by other SWA staff, while veterans with employability barriers are served by DVOP/LVER staff. This strategy leverages resources so that a maximum number of veterans are served even as resources are concentrated on those veterans with the greatest needs. VETS regards entry to employment and retention in employment as the key outcomes of its programs and is implementing Federal job training program common measures. Since these measures substantially revise the definitions for employment and retention, VETS will establish new baseline values for these measures during PY 2005. Monitoring these outcomes will enhance the measurement of the program's impact and allow for comparisons across similar programs. The most recent special survey of the employment situation of veterans by the Bureau of Labor Statistics (July 2004) shows that veterans in general fare well compared to their non-veteran counterparts, with an average unemployment rate of 4.5 percent compared to 5.9 percent. However, major segments of the veteran labor force have decidedly higher unemployment rates than non-veterans, particularly young, recently separated veterans, older veterans (45 to 54), and disabled veterans.
Analysis and Future Plans Broad national economic indicators for unemployment, interest rates and productivity were positive over the past twelve months and provided a boost to the performance outcomes for the veterans program. Positive results are also attributed in part to continued efforts by VETS to facilitate communication between VETS State offices and State Workforce Agencies on strategies to maximize services to veterans. Several of these strategies are: 1) emphasis on DVOP and LVER staff serving as the critical link for services to veterans with employment barriers, as well as serving as a focal point for transition assistance and homeless veteran reintegration, while other SWA staff provide service to job-ready veterans; 2) SWAs' use of new flexibilities in the development of plans of service for veterans; 3) VETS guidance and technical assistance to SWAs on skill quality, credentials, job development, employer relations and intensive services as a means of ensuring retention and progress for veterans placed in jobs. For HVRP, sharing of best practices among grantees has paid dividends. While performance targets have been reached, other trends cause concern and require close monitoring by VETS and SWAs. Registrations of veterans seeking services have declined in the past year. The percentage of veterans receiving staff assisted services (an indicator of veterans with employment barriers) has also showed a recent trend downward. VETS will collaborate with its SWA partners in the analysis of this information in order to come to a clearer understanding of the factors responsible for these shifts in order to determine if new strategies need to be developed. Based on data for the first two quarters of the performance period, the retention rate for HVRP participants is 57 percent. These results reflect the outcomes experienced by about 62 percent of those enrolled during the four quarters of the performance period. This preliminary retention rate indicates that members of the homeless veteran target group continue to struggle somewhat in their efforts to maintain stable attachment to the workforce following receipt of HVRP services. VETS, with its grantee network, is actively examining approaches for improving grantee tracking procedures, grantee follow-up services, and homeless veteran retention rates. Management Issues The Government Accountability Office (GAO) report Preliminary Observations on Changes to Veterans' Employment Programs, issued in May 2005, found that more work needs to be done to implement a minimum standard for veterans entering employment that all States will be expected to meet (see Study 8 in Appendix 2). VETS will conduct a nationwide study of its DVOP/LVER programs to develop initiatives for better integration into one-stop career centers. GAO also issued Job Retention Goal Under Development for DOL's Homeless Veterans' Reintegration Program in May 2005 (see Study 9 in Appendix 2). The report recommended that DOL develop a realistic performance goal for employment retention of homeless veterans in order to better assess the success of HVRP. DOL is currently collecting retention data and will establish a baseline for setting and measuring performance targets. A third May 2005 GAO report, Enhanced Services Could Improve Transition Assistance for Reserves and National Guard, recommended that DOL and the Departments of Defense (DOD) and Veterans Affairs determine what demobilizing Reserve and National Guard members need to make a smooth transition and explore options on ways to enhance their participation (see Study 10 in Appendix 2). DOL is actively participating in a DOD led effort to determine needs, and the best ways to provide them. Feasibility Assessment of a Web-Based Career Guidance Tool for Transitioning Military Service Members, completed in June 2005, determined that no existing web-based tool meets the needs of transitioning service members and veterans (see Study 7 in Appendix 2). Contingent upon the availability of funding, DOL plans to develop with the DOD a customized tool that will include career tips, a search function and details on civilian occupations. Satisfy High-Growth Industry Labor Needs via
Apprenticeships Strengthen the registered apprenticeship system to meet the training needs of business and workers in the 21st Century.
Program Perspective As the Department continues to support the President's High Growth Job Training Initiative (HGJTI), the Apprenticeship System strives to expand its system by targeting the identified high-growth industries: health care, information technology, biotechnology, geospatial technology, automotive, retail, advanced manufacturing (including aerospace), transportation, hospitality, financial services, and energy. The Apprenticeship System plays a vital role in the HGJTI by providing apprentices with industry-recognized credentials that are sanctioned by DOL, thereby helping to supply U.S. employers with the skilled workers they need to stay competitive and keep the economy growing. During FY 2005, there were 541 programs and 8130 apprentices registered with more than 6100 active programs and more than 24,300 active apprentices in high-growth industries.
Analysis and Future Plans The established baseline results of the common measures show that during the first quarter of FY 2005, 78 percent of over 18,000 newly registered apprentices were still employed nine months after the month of registration, and their average hourly wage gain was $1.26 (from $11.92 to $13.18). An important strategy of the apprenticeship program is targeting high-growth industry demand-driven career training. Apprentices are compensated for improved skills through wage increases that also lead to a higher employment retention rate. During FY 2005, the average cost per registered apprentice was $109, efficient for Federal employment programs. By leveraging large investment from the private sector, Apprenticeship demonstrates a low cost, market driven approach to training America's workers. The apprenticeship model functions as a self-sustaining system, with employers covering most training expenses such as wages, classroom training, supervision, and mentoring for the duration of the program, which can be several years. The apprenticeship system graduated 119,363 apprentices in the last four years, all of whom were employed, earned credentials verifying technical competencies, and increased their earnings in the process. Management Issues Apprenticeship has been expanding its electronic registration project in RAIS. It allows program sponsors to register apprentices electronically, provides the source data for documenting pay rates, general employer workforce and demographics information, and completion credentials. Moreover, RAIS has reduced the application processing time, made the system more cost-effective, and improved the program's ability to track data. In August 2005, the Government Accountability Office (GAO) issued a report, Registered Apprenticeship Programs: Labor Can Better Use Data to Target Oversight, that identified several areas for improvement (Study 5 in Appendix 2). DOL will follow up on GAO's recommendations by better utilizing information in the existing data sources and data mining tool; encouraging State Apprenticeship Agency (SAA) States to participate in RAIS; and providing technical assistance on issues identified in final reports of the 14 SAA reviews conducted in FY 2005. 18Twenty-three States are federally-registered apprenticeship programs and enter data on individuals into the Registered Apprenticeship Information System (RAIS). A group of tracked entrants is defined as the cohort of apprentices registered and entered into RAIS during a given reporting period. Increase Employment Opportunities for Youth and
Adults with Disabilities Provide national leadership to increase access and employment opportunities for youth and adults with disabilities receiving employment, training, and employment support services by developing, testing, and disseminating effective practices.
Program Perspective
ODEP's response to low employment rates among people with disabilities is comprehensive and aggressive, and includes securing the active involvement and cooperation among a number of Federal, State, and local agencies as well as private sector organizations. ODEP strategically invests in policy development and research activities that identify policy options and validate evidence-based practices. The results of these activities are reflected in the indicators and targets used to measure ODEP's performance. Major external factors that influence performance outcomes include several workforce trends. These trends include projected workforce shortages, turn-over and retirement, and the trend of working beyond the traditional retirement age. Many of these workers may experience disabling conditions, increasing pressure on the employer to keep workers on the job and to have employees who are temporarily disabled return to work quickly. Finally, small businesses will continue to be the backbone of the U.S. economy. They employ half of all private sector employees and have generated 60 to 80 percent of new jobs annually over the last decade. Small employers face unique challenges in hiring and retaining disabled workers. ODEP develops policies and practices that empower employers to rethink their strategies for employee recruitment, development and transition with the goal of retaining long-term, high-quality, high-contributing employees. Additionally, ODEP develops policies and practices that enhance coordination of the support needed to keep workers on the job and return employees to work quickly following an injury or illness. This support includes access to healthcare, housing, and reliable transportation. Analysis and Future Plans In FY 2006, ODEP will continue its performance improvement efforts by aligning its strategies and activities to reflect a stronger reliance on its own internal staff to concentrate on policy development, analysis and applied research initiatives as opposed to using externally-funded public and private organizations. Activities will focus on ODEP's core mission to develop and influence the implementation of policies and practices that will increase employment opportunities, recruitment, retention, and promotion of adults and youth with disabilities. Accordingly, in FY 2006, ODEP's Performance Goal will be modified to ensure its activities are measured in terms of their impact on the workforce development system and its partners. Management Issues ODEP's multi-year external evaluation of pilot projects assesses the nature and extent of systems change to determine the effectiveness of strategies employed for increasing the capacity of the workforce development system to respond to the needs of people with disabilities. Findings continue to demonstrate: 1) the capacity of the workforce development system has expanded and is strengthened to better serve people with disabilities; 2) people with disabilities are moving from low-skill, minimum wage work to higher-paid jobs in technical or other new career fields; 3) attitudes at One-Stop Centers regarding the provision of services to people with disabilities are changing; and 4) governmental agencies are now working together to share information and leverage resources to better serve people with disabilities. DOL is conducting a follow-up case study of 12 Workforce Investment Act (WIA)-assisted sites to provide information that will enable practice to inform policy and improve performance results of WIA-assisted programs that serve people with disabilities (see Case Study Research: How People with Disabilities are Served through the Workforce Development System Study 6 in Appendix 2). Since States' initial implementation of WIA, One-Stop Career Centers and youth services have been addressing the challenges of serving all customers, including those with disabilities. The case study focuses on assessing impact and customer satisfaction. Outcome Goal 1.2 Increase Opportunities for Youth Employment Even though the median age of the workforce is rising, the percentage of workers between the ages of 16 and 24 is expected to grow more rapidly than the overall labor force for the first time in 25 years. The majority of jobs will continue to require workers who have acquired knowledge and skills via two-year colleges, vocational training, moderate to long-term on-the-job training and real work experience. High school drop-outs are three to four times more likely to be unemployed than college graduates. These statistics help to explain why an important part of DOL's mission is to help disadvantaged youth prepare for competition in a 21st century work environment. DOL administers two programs designed specifically to serve youth: the WIA Youth formula grant program, which provides comprehensive services through local workforce investment areas, and Job Corps, an intensive, largely residential academic and employment training program. Services to in-school youth help them remain in and complete secondary school, move into post-secondary education or advanced training, and ultimately transition into successful careers. Out-of-school youth receive services that provide them with the necessary skills to attain educational credentials (i.e., high school diploma or general equivalency diploma), participate in vocational and post-secondary training opportunities, and transition into gainful employment or a career. Through these programs, our Nation makes the type of meaningful investment in at-risk teenagers and young adults that is necessary to help them become productive and self-sufficient members of the nation's workforce. Two performance goals measure DOL's progress in helping youth prepare for entry to the workforce. Both are administered by the Employment and Training Administration (ETA) under the Workforce Investment Act of 1998 (WIA). Funding and reporting for both programs are for Program Year (PY) 2004 (July 2004 - June 2005).
*For WIA Youth, 19-21 year olds only; for Job Corps, measure includes enrollment in education or training.
Results Summary Although national economic conditions improved in this reporting period versus preceding recovery years, the boost this provided to performance was offset by increasing the WIA Youth program's focus on out-of-school youth. Out-of-school youth are traditionally harder to serve. Continued improvement in overall performance was achieved by providing State Workforce Agencies with technical assistance, especially on collaboration with other social service organizations, and by strategic use of incentives for targeting at-risk youth and promising occupations. Job Corps' education efforts (diploma and literacy/numeracy) appear to be paying off. This is encouraging because academic and career success are highly correlated and expected to become even more so as the knowledge economy further evolves. Net Cost of Programs
Future Challenges Job Corps' large operation, though fundamentally sound, poses many management challenges. In fact, Job Corps controls roughly 95 percent of the DOL real property portfolio that is not leased through GSA. To that end, in keeping with the principles of Executive Order 13327, Federal Real Property Asset Management, which President Bush issued in February 2004 to promote the efficient and economical use of America's real property assets ", Deputy Secretary Steven J. Law established a Departmental workgroup designed to address the management challenges related to real property while working to more fully implement this key President's Management Agenda initiative. In addition, the Inspector General's Top Management Challenges addressed in this report also highlights the need to improve management of real property assets. In the near future, the Job Corps program is implementing new data validation procedures and is continuing to look closely at whether its physical assets (the residential training centers) are being utilized as efficiently as possible. Assist Youth in Making a Successful Transition to
Work Increase placements and educational attainments for youth.
Program Perspective In July of 2004, DOL published guidance outlining its new strategic vision for the delivery of youth services under WIA. This vision emphasizes that "out-of-school youth and those most at risk of dropping out are an important part of the new workforce 'supply pipeline' needed by businesses to fill job vacancies in the knowledge economy. WIA-funded youth programs will provide leadership by serving as a catalyst to connect these youth with quality secondary and post-secondary educational opportunities and high-growth and other employment opportunities. Efforts are now focused on four major areas: alternative education, demand-driven strategies for providing youth with the skills businesses need, serving the neediest youth, and improving performance.
PY 2004, progress was tracked against four performance indicators. For the older youth population, entrance into and retention in employment are the most appropriate indicators of success because the program's services are focused on preparation for and success in the workforce. For the younger youth population, where services are geared toward academic achievement as a means of career preparation, achievement of a diploma or its equivalent is the most meaningful indicator of future success in the workforce. The cost per participant measure gauges the efficient use of Federal dollars. In recent years, the program has made steady progress by all measures (see chart). Cost for participants, a new indicator as of PY 2004, is expected to increase, at least in the short term, due to targeting a harder to serve out-of-school youth population as well as general increases observed for the cost of education and training programs nationwide.
Analysis and Future Plans Average cost per participant was slightly higher than expected $2822 vs. a target of $2663. However, consistent with ETA's vision for youth services, the program has served a higher proportion of out-of-school youth. Out-of-school youth are a more expensive population to serve, with a cost of $3724 per participant, therefore the overall cost per participant increased over prior years. At the time the cost per participant target was estimated, DOL did not anticipate the full extent of increased expenditures on out-of-school youth. During PY 2004, DOL held a series of Regional Forums that convened State education agencies along with workforce development, juvenile justice and child welfare agencies from 45 States to identify opportunities for improving programs across agency lines. DOL has provided States with a Federal/State benchmarking tool to provide States with broad principles to assist them in gauging the effectiveness of their collaborative efforts. In the fall of 2004, DOL awarded Foster Youth Demonstration grants to five States aimed at assisting foster youth who have or will be transitioning out of foster care to access employment and training opportunities. In the summer of 2005, DOL awarded 16 demonstration grants to State and local agencies and community-based organizations to help prepare youth offenders to enter high growth and high demand industries. For PY 2005, targets will increase to 69 percent for the entered employment rate, 80 percent for the employment retention rate and remain at 53 percent for the diploma attainment rate. The target is not increasing for the diploma attainment rate due to an increased emphasis on services to the neediest youth, especially out-of-school youth, who traditionally have low rates of diploma attainment. Management Issues GAO issued a report in May 2005 entitled Labor Should Consider Alternative Approaches to New Performance and Reporting Requirements (Study 4 in Appendix 2). The report recommended that DOL consider alternative approaches to implementing its new reporting system, including ongoing consultation with stakeholders, phased implementation, and pilot testing. DOL will continue to consult with representatives of the State and local workforce system. In addition, DOL is conducting a feasibility study in three States and two local areas to examine the changes needed at the State and local levels to meet the proposed data collection requirements as originally proposed in the July 2004 Federal Register. The WIA Youth program received a rating of Ineffective in the PART review conducted in FY 2002. Since that time the program has made significant progress in addressing recommendations to adopt common performance measures for Federal job training programs and conduct an impact evaluation of the WIA Youth program. States will begin reporting on the new measures in their first quarterly report due in November 2005. The impact evaluation will be commissioned upon WIA reauthorization, as knowledge of the program's new direction will be critical to the design of any meaningful study. Increase Placements and Educational Attainments
of Youth Improve educational achievements of Job Corps students and increase participation of Job Corps graduates in employment and education.
Program Perspective
Job Corps centers provide services tailored to each student's needs to help them achieve the skills and credentials required to be successful, productive citizens and to obtain work opportunities that lead to long-term employment. In PY 2004, DOL began reporting Job Corps performance according to the job training common measures for youth programs: placement in employment or education, attainment of a degree or certificate, literacy and numeracy gains, and average cost per participant. The first three measures are indicators of student achievement in terms of placement in employment and in enhancing their employability; the efficiency measure assists program management in controlling costs. As with other employment and training programs, Job Corps' performance can be impacted by external factors such as local labor market conditions and national economic trends. In recent years, an increasingly knowledge-based labor market has challenged Job Corps to redirect both academic and technical career training approaches. In addition, adjustment to federally standardized job training program common measures has provided program management challenges. Analysis and Future Plans The entered employment/education measure, which until this year included program graduates only, now includes former enrollees and will ultimately include all students. While placement of graduates increased from 90 percent to 91 percent, former enrollees' results had more impact than expected; the overall rate just missed the target of 85 percent. This does indicate that the target was ambitious, and Job Corps will focus on reaching that placement rate in PY 2005 by encouraging Career Transition Services (CTS) providers to focus their energies and services on recent graduates. Job Corps utilizes performance-based contracting for center operators and CTS providers; center operators' and contractors' revenues are linked to performance on specific measures of student success. Such provisions, particularly incentive fees for contractors, have led to improved student outcomes. Regional offices conduct assessments and annual contract reviews of outreach and admissions contractors, center operators and CTS providers that include compliance measures for operations and performance measures related to student outcomes. In addition to improving student outcomes, Job Corps maintains safe and healthy environments at all Job Corps centers by cooperatively working with other DOL agencies to conduct safety and health inspections annually. Management Issues Job Corps controls roughly 95 percent of the DOL real property portfolio that is not leased through the General Services Administration. In keeping with the principles of Executive Order 13327, Federal Real Property Asset Management, which President Bush issued in February 2004 to promote the efficient and economical use of America's real property assets," Deputy Secretary Law established a Departmental workgroup designed to address the management challenges related to real property while working to more fully implement this key President's Management Agenda initiative. In addition, the Inspector General's Top Management Challenges addressed in this report also highlights the need to improve management of real property assets. Job Corps is investigating whether its physical assets (the residential training centers) are being utilized as efficiently as possible. In 2004, the Job Corps program was assessed through the PART, and was rated as Moderately Effective. In response to findings identified in the PART, DOL has:
Outcome Goal 1.3 Improve the Effectiveness of Information and Analysis On The U.S. Economy Maintaining competitiveness in the 21st Century requires Americans to be knowledgeable about trends in the global, national, and local economies. Private citizens, business owners, and public officials need to have access to up-to-date, high-quality information and statistics to assist them in making better informed decisions. The Department's Bureau of Labor Statistics (BLS), which produces some of the Nation's most sensitive and important economic indicators, looks for opportunities for innovation to improve the usefulness of its products and services to our customers. For example, in FY 2005, the Quarterly Census of Employment and Wages (QCEW) program released a new on-line tool for labor market analysis. The Location Quotient Calculator is designed to aid economic development professionals in accurately identifying industries that attract jobs and income, and sell goods and services outside their community. This innovative use of the QCEW data allows the customer to conduct a focused, detailed industry study at the desired geographic level.
Results Summary DOL reports performance for this goal using such indicators as timeliness, accuracy, relevancy, efficiency, and customer satisfaction with statistical products and services because these represent critical aspects of a statistical program's performance. The results presented here reflect continuous efforts to improve statistical products and services available to decision makers. Some FY 2005 achievements include:
Net Cost of Programs
Future Challenges To respond to the changing economy: In FY 2006, BLS will begin publishing a new data series that will allow workers and employers to compare wages and salaries among metropolitan areas. In an increasingly mobile society, workers need data to help them evaluate job offers from firms located in a variety of locations, and employers need data to compare labor costs when deciding where to establish or expand operations. Produced by the National Compensation Survey, the inter-area pay relatives will present this information in an easy-to-use format free from the effect of differences in survey timing, occupational staffing patterns, and industry mix. To maintain a high level of response for its voluntary surveys: In FY 2005, BLS started a multi-year effort to improve informational materials included in data collection efforts. BLS systematically collected information on how respondents view BLS and its programs from interviewers who regularly interact with respondents. Based on the information learned, in FY 2006, BLS plans to conduct a test of the impact of including an informational brochure in the survey packages of the Occupational Employment Statistics program. To meet the challenges of evolving technology: In FY 2006, BLS will improve users' ability to find information through the release of a new search engine for the Web site. This technology will improve the search engine results to coincide with user expectations, identify common misspellings and provide alternative choices, and display links to related materials. Timely, Accurate, and Relevant Economic
Information Improve information available to decision-makers on labor market conditions, and price and productivity changes.
Program Perspective To continue improving its products and services, BLS analyzes and evaluates new economic and statistical methodologies, new technologies, and new survey design, collection, and dissemination approaches. Keeping abreast of improvements and using these improvements to deliver data in a more timely and useful manner, while still maintaining cost effectiveness, are essential ingredients to meeting our goals and providing the quality of service our customers expect. For example, after a multi-year improvement project, the Local Area Unemployment Statistics program began using in FY 2005 redesigned estimating models for States. Focusing resources on improving these estimates, which are a key component of labor market analysis, will lead to an improvement in local area information available to decision-makers, a reduction in the annual revision in monthly State estimates by approximately 20 percent, and the achievement of the BLS data accuracy target. Analysis and Future Plans
BLS reached its target for converting one data series from the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS) in FY 2005. The Survey of Occupational Injuries and Illnesses data were converted to NAICS in December 2004 as planned. Targets were exceeded for improving data coverage in the PPI and in labor productivity measures as BLS continued to improve the accuracy of its data. While the PPI measures average changes in selling prices received by domestic producers for their output, labor productivity is the ratio of the output of goods and services to the labor hours devoted to the production of that output. BLS improved data coverage for calculating the PPI by increasing the percent of service industries from 38.8 percent (1997 baseline) to 76.3 percent in FY 2005. BLS increased data coverage in labor productivity measures to 59.2 percent, up from 58 percent in FY 2004 (baseline). BLS did not reach its target, 40 percent, for completing components of the new PPI repricing system as only 37 percent of the components were completed. As part of the continuing effort to modernize the computing system for monthly processing of the PPI, this new system will be based on a more secure, stable, and expandable computing platform. The BLS Occupational Outlook Handbook (OOH) Web site is the Bureau's nationally recognized source of career information. Using the American Customer Satisfaction Index survey, the OOH Web site substantially reached its target, a score of 75, in the third quarter of 2005. The BLS score was 74; the aggregated Federal government score for this time period was 73.5. BLS exceeded its target for decreasing the cost per transaction of its Internet Data Collection Facility, which is used by survey respondents to report data. Providing a single, manageable, and secure architecture for Bureau surveys to use in collecting information over the Internet, the cost per transaction in FY 2005 was $2.44. The cost per transaction decreased significantly from $6.13 in FY 2004, and surpassed the stretch target of $3.32. The 2005 result will be lower than outyear targets because, due to periodic replacement cycles, fewer costs were incurred. BLS met the timeliness indicator for all of its 108 scheduled releases. Additionally, BLS met the established accuracy target for all 17 of its statistical program measures. To further integrate budget and performance, one of the President Management Agenda priorities, BLS will revise its FY 2006 performance goal framework to more closely link costs and results at the performance indicator level. Management Issues During FY 2005, BLS responded to the Office of Inspector General (OIG) Federal Information Security Management Act Audit of the Consumer Price Index (CPI) System. Of the 18 security control areas evaluated, 17 areas were adequately established, implemented, and operating effectively in compliance with FISMA. The one area needing improvement was related to the CPI contingency planning control area, where BLS has since made progress by purchasing and placing the necessary equipment to support the plan in the recovery facility. Also, the CPI Continuity of Operation Plan testing under their current technical testing plan has been completed. The review is described in an OIG's report, Federal Information Security Management Act Audit of the Consumer Price Index System (Study 14 in Appendix 2). Additionally, the OIG is conducting a review of the Employment Cost Index, which will be completed in FY 2006. The OIG also plans to start a review of the Producer Price Indexes in FY 2006. Using the Program Assessment Rating Tool in FY 2005, OMB rated BLS as Effective, the highest rating category. In its findings, OMB recommended that BLS maintain program-monitoring and operational successes; complete efforts to show aspects of program performance more clearly to the general user; and complete efficiency measures to cover more of the Bureau's programs. In response, BLS has improved the precision of some of our performance targets and revised measures to focus more on outcome. In FY 2006, BLS will continue to work collaboratively with the Department to explore ways to increase transparency of its performance goals and indicators. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|