DOL Annual Report, Fiscal Year 2007
Performance and Accountability Report

Strategic Goal 1: A Prepared Workforce

Develop a prepared workforce by providing effective training and support services to new and incumbent workers and supplying high-quality information on the economy and labor market.

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 possess skills required by today's employers. The Department must ensure that every available labor pool is tapped, including job seekers with disabilities, veterans, and disadvantaged youth. DOL agencies and offices supporting this goal are:

• Bureau of Labor Statistics (BLS),
• Office of Job Corps (OJC),
• Employment and Training Administration (ETA),
• Veterans' Employment and Training Service (VETS),
• Women's Bureau, and
• Center for Faith-Based and Community Initiatives.

The Working Women in Transition (WWIT) program is a multi-regional Women’s Bureau demonstration project focusing on women who are making a significant transition in their work lives. Sites in ten states target incarcerated women, Hurricane Katrina survivors, women in rural areas, recipients of Temporary Assistance for Needy Families, women recovering from substance abuse, baby boomers changing careers, minority women desiring to start or grow their own businesses, and single mothers. WWIT equips women with the skills and confidence they need to pursue career goals. For example, WWIT works with Vermont Works for Women and the Southeast State Correctional Facility in Windsor, Vermont, to teach building trade skills to incarcerated women. In addition to the hands-on training, the WWIT program also provides tailored support systems that include online and face-to-face mentoring; extra skills training; and tracking mechanisms to ensure participant success. [Photo credit: Jon Olender]

A prepared workforce has the skills and the education that employers demand. Education — from literacy to vocational training — plays a fundamental role in preparing workers for life-long employment. In addition, DOL focuses on helping those who face exceptional barriers to successful employment. These individuals, such as low-income youth and homeless veterans, benefit from specialized training tailored to their unique situations. DOL provides comprehensive training programs that focus on specific, occupational skills while taking into account the trainees' special circumstances. In addition, DOL produces labor statistics that individuals and businesses can use to better understand the job market and the economy. Performance indicators for these programs measure the extent to which DOL has successfully placed these individuals in jobs. In FY 2007, DOL delivered timely and accurate labor statistics, improved literacy skills and increased educational attainment for youth, connected individuals with better jobs through Apprenticeship programs, and placed homeless veterans in jobs.

For Youth

• The Job Corps program improved basic reading and math skills for nearly 60 percent of its students.
• The job prospects for many low-income youth increased. Nearly 60 percent of low-income students entered employment, post-secondary education, or occupational skills training after exiting DOL funded training programs.

For Workers in the Trades

• Over 80 percent of workers in apprenticeship programs remained employed for nine months after entry. For individuals learning a trade, job experience leads to increasing skills and wages.
• Average hourly wages increased by $1.50.

For Veterans

• More veterans with disabilities found and kept their jobs.
• More homeless veterans found jobs.

These national results are realized by bringing together the right mix of services, education, and information to help each person fulfill his or her career goals. The vignettes throughout this section illustrate some of the stories behind Strategic Goal One. For more specific information, see the Performance Goal narratives.

The following table provides key information, goal statements, and achievement for DOL performance goals associated with this strategic goal. Those with labels that begin with "06" operate on a Program Year (PY) basis, and are reporting on the period from July 1, 2006 to June 30, 2007 due to the forward-funding authorized in the Workforce Investment Act of 1998 (WIA).

The net cost dedicated to Strategic Goal 1 in FY 2007 was $3.103 billion. The first chart below is based on total Departmental costs of $47.872 billion; the second is based on an adjusted net cost of $12.771 billion that excludes the major non-discretionary program costs associated with Strategic Goal 4. Net cost dedicated to Strategic Goal 1 in FY 2006 (restated to reflect current goal structure) was $3.360 billion.

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Timely, Accurate, and Relevant Economic Information

Performance Goal 07-1A (BLS) — FY 2007

Improve information available to decision-makers on labor market conditions, and price and productivity changes.

Program Perspective and Logic
BLS is the principal fact-finding agency in the Federal government in the broad field of labor economics. As an independent national statistical agency within the Department of Labor, BLS collects, processes, analyzes, and disseminates essential statistical data to the American public, the U.S. Congress, other Federal agencies, State and local governments, business, and labor. BLS provides information that supports the formulation of economic and social policy, and decisions that affect virtually all Americans.

BLS reports performance for this goal by producing timely and accurate data, as well as by improving its products and services. BLS evaluates new economic and statistical methodologies; technologies; and survey design, collection, and dissemination approaches. Keeping abreast of improvements and using them to deliver data in a more timely and useful manner, while still maintaining cost effectiveness, are essential ingredients to meeting DOL goals and providing the quality of service BLS customers expect. In 2007, BLS began publishing information on employee hours and earnings, which will enhance understanding of wage growth and provide improved input for other major economic indicators. BLS also developed new measures of labor productivity and unit labor costs for three additional service-producing industries. In addition, BLS added new Business Employment Dynamics data at the State level, which are particularly useful in highlighting the forces behind the net changes in employment.

Analysis and Future Plans
BLS reached the targets for all six of its indicators, achieving its goal. Performance indicators for this goal include quality indicators for four categories of statistical surveys, a customer satisfaction index, and an efficiency measure. Each of the four survey quality indicators — for prices and living condition surveys, productivity and technology surveys, labor force statistics, and compensation and working conditions surveys — consist of output, timeliness, accuracy, and long-term improvement targets. BLS measures its survey quality by percent of these targets achieved, and in FY 2007 results exceeded targeted levels for all four categories. Cost per transaction of the Internet Data Collection Facility, the agency's efficiency measure improved to $1.12 and also reached its target. The Occupational Outlook Handbook (OOH) is the Bureau's nationally recognized source of career information. Using the American Customer Satisfaction Index, the OOH Web site reached its target score of 79 percent. See the PART, Program Evaluations and Audits section on the next page for more information on the recommendations DOL will implement to improve customer satisfaction with the BLS Website.

The Department of Energy’s Office of Science operates 10 national laboratories (including Argonne, Fermi, and Oak Ridge) employing about 25,000 people. Since 2002, the Acting Director has set a priority on workplace safety. He stated, “To be world class in science, we must be best-in-class in our safety performance.” Using tabulations from the BLS Survey of Occupational Injuries and Illnesses, the office set ‘Best-in-Class’ safety goals for its laboratories. As a result, between 2002 and 2006, the Office of Science reduced its annual injury and illness cases from 593 to 283 – over 50 percent. During that same period, the days away from work, restricted activity, and transfer (DART) cases decreased 71 percent from 301 to 87. The Acting Director credits BLS data for “helping the Office of Science set safety goals and improve our laboratories.” Photo Credit: Fermilab (home to the world's highest-energy particle accelerator)

Under the labor force statistics indicator, BLS will improve its products by increasing the number of establishments surveyed by the Quarterly Census of Employment and Wages program, which is used to help guide the allocation of tens of billions of dollars in Federal assistance programs. As part of the prices and living conditions indicator, the Producer Prices and Price Indexes (PPI) program is continuing work to upgrade two of its systems. PPI releases the Finished Goods Price Index, one of the Nation's most closely watched indicators of economic health. PPI data are also used by the Bureau of Economic Analysis to calculate the gross domestic product (GDP) deflator. Within the compensation and working conditions indicator, BLS will publish data from a redesigned, more efficient Survey of Occupational Injuries and Illnesses sample. Under the productivity and technology indicator, the International Comparisons program will be enhanced. International Comparisons data are used to evaluate the competitive position of the U.S. in global markets.

In FY 2007, for the first time, BLS is reporting on its costs at the performance indicator level. BLS will report on cost trends in future performance reports. The cost increase for this performance goal between FY 2005 and FY 2006 was primarily due to budgeted increases in personnel compensation and benefits and other services and small differences in the timing of certain expenditures. Costs were virtually unchanged from FY 2006 to FY 2007.

PART, Program Evaluations and Audits
BLS programs and services underwent a Program Assessment Rating Tool (PART) review in 2003 and received a rating of Effective, the highest rating category. BLS completed the three original PART recommendations in 2005. In 2006, DOL started work on new recommendations that will ensure continuous improvement: BLS is conducting an independent evaluation of agency effectiveness, developing additional efficiency and cost-effectiveness measures, and establishing more ambitious targets. In addition, in 2007, BLS made upward revisions to its long-term performance indicator targets. BLS programs are evaluated both internally and externally to ensure that they provide taxpayer value. As required by OMB, the seven BLS statistical reports that are designated as Principal Federal Economic Indicators are evaluated on a three-year schedule. In FY 2007, BLS completed a performance evaluation for the Current Population Survey.

Data Quality and Major Management Challenges
BLS has instituted rigorous, systematic, and comprehensive controls to ensure that its data are of Excellent quality. For example, the BLS executive team meets with program management on a quarterly basis to discuss progress toward meeting performance indicators. BLS also conducts its own program reviews and contracts for external reviews, as necessary. These assessments ensure that survey data are accurate, reliable, and released in a timely fashion; systems and procedures are documented adequately; program performance meets or exceeds standards; and pre-release data are kept confidential.

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Increase Placements and Educational Attainments of Youth

Performance Goal 06-1B (OJC) — PY 2006

Improve educational achievements of Job Corps students and increase participation of Job Corps graduates in employment and education.

Program Perspective and Logic
Job Corps is an intensive educational and vocational training program (primarily residential) for economically disadvantaged youth ages 16 through 24 who often face multiple barriers to gainful employment. This program provides career counseling, technical skills and academic training, social education, and other support services, such as housing, transportation and family support resources to more than 60,000 individuals at 126 centers — including four satellite centers — nationwide. Job Corps centers, ranging in size from 200 to 2000 students, are located in both urban and rural communities. Job Corps centers provide individually tailored services to help students achieve the skills and credentials required to be successful, productive citizens and to obtain work opportunities that lead to long-term employment.

Job Corps' performance can be influenced 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.

Performance of the Job Corps program is assessed using the Federal job training program common measures for youth — placement in employment or education, attainment of a degree or certificate, and literacy or numeracy gains — as indicators of student achievement in improving their long-term employability.

Analysis and Future Plans
The Job Corps program did not achieve its goal for PY 2006; only one of its three indicator targets was reached. In PY 2006, Job Corps met its target for learning gains; literacy or numeracy skills increased by one Adult Basic Education (ABE) level for 58 percent of all students who were deficient in basic skills when they entered the program. Certificate attainment — students achieving a high school diploma (HSD), General Equivalency Diploma (GED) or vocational certificate while enrolled in Job Corps — fell for the second year in a row. In fact, the PY 2006 result of 57 percent was lower than PY 2005's result of 60 percent. After data integrity reviews revealed that in past years misreporting of certificate attainments may have occurred, DOL implemented more stringent documentation requirements. The Department believes the correction of data integrity deficiencies, rather than a decline in actual performance, contributed to the reported drop in HSD, GED and vocational certificate attainments.

From January 15 through February 22, 2007, more than 500 Job Corps students from 26 centers traveled to Lafayette, Louisiana, to participate in the Blitz Build project and build 11 Habitat for Humanity homes for victims of the 2005 hurricanes that devastated the Gulf Coast region. The Blitz Build project, a partnership of Habitat for Humanity, Major League Baseball and the Dallas Region of Job Corps, gave students a chance to demonstrate leadership skills and use their career technical training in a real-world setting. Students from a variety of construction trades, including plumbing, electricity, and building maintenance received valuable hands-on experience while logging more than 20,000 hours of community service. This project and its positive impact on victims’ lives serve as testimony to the character of our students. [Photo Credit: Meghan Umphres]

DOL also attributes the second consecutive decline in placement results to changes in data collection and reporting. The pool of students has grown over the past few years due to the addition of former enrollees (students who did not complete their programs but were enrolled in Job Corps for more than 60 days). PY 2004 was the first year that former enrollees were included, producing a modest impact on the results; by PY 2005, the full effect was apparent and the negative impact continued through PY 2006.

To improve performance, DOL is implementing an ambitious New Vision, which will include: strengthening placement services and post-center support; shifting to a standards-based approach centering on industry and occupational clustering; utilizing applied academics in career technical areas supported by career success standards; establishing a comprehensive admissions process that prepares students for life and ensures students are ready and committed; and increasing and strengthening industry, education and workforce partnerships to enhance and expand delivery of student services. While these changes will not happen all at once or improve results overnight, the cumulative effect is expected to improve program performance.

Costs associated with this performance goal have trended downward over the last two years because of changes in cost allocations to Job Corps.

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PART, Program Evaluations and Audits
The Job Corps program underwent a PART review in 2007 and received a rating of Adequate. This is a decline from the Moderately Effective rating Job Corps received in a 2004 PART review. This decline is primarily attributable to a reduced score in the Results and Accountability section of the Job Corps PART. In response to findings that suggest changes to Job Corps' financial management practices, DOL is adopting efficiency measures that are linked to performance outcomes, account for all costs, and facilitate comparisons across Department of Labor training and employment programs. DOL is also improving cost effectiveness by transitioning to a center career clustering approach, improving the tracking and reporting of real property, and using the real property data to make informed resource allocation decisions.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Very Good. The data are accurate, relevant, complete, reliable, timely, and valid. When the OIG cited insufficient management controls over performance data in 2004, DOL designed and implemented new data integrity procedures. These procedures required regional offices to utilize targeted samples (that highlight the most likely cases where error or manipulation has occurred) for audit reviews to be conducted in conjunction with on-site assessments. Regional offices were also required to develop procedures for identification and collection of liquidated damages, as necessary. Since that time, regional offices have recovered $315,739 in liquidated damages. Trends in performance data show that these audits, and resulting penalties, have affected performance reporting and results; the Office of Job Corps is confident that the new data integrity strategy is producing more reliable student outcome data from Job Corps centers and career transition service providers.

Ensuring the Effectiveness of the Job Corps Program is listed as a Departmental Major Management Challenge (see item II in the challenges table located in Management's Discussion and Analysis). To address this challenge, DOL is improving the way Regional Offices monitor the performance of contractors that operate 98 of its Job Corps centers. In FY 2007, a new process that included both a fiscal and a performance review was implemented. The Office of Job Corps conducted training for three of six Regional Offices on monitoring contractor performance of financial management and cost reporting, data integrity, and asset management. The staff at the three remaining Offices will be trained in October of 2007. The Departments of Interior and Agriculture operate 28 Job Corps centers via Interagency Agreements with DOL. DOL is negotiating revisions to the Interagency Agreements with these Departments to provide for more accountability on financial and property management by the agencies and greater oversight by the Office of Job Corps. Finalized agreements are expected to become effective in FY 2008.

Additionally, in FY 2008, the Office of Job Corps will be implementing rigorous safety and occupational health standards and requirements for all Job Corps centers, and will be completing training for Job Corps center staff to ensure that students with cognitive disabilities are identified and assessed. Also, Regional Disability Coordinators hired on a part-time basis in FY 2007 — to aid in minimizing or removing barriers to success for students with cognitive disabilities — will be converted to full-time staff in FY 2008. Assist Youth in Making a Successful Transition to Work

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Assist Youth in Making a Successful Transition to Work

Performance Goal 06-1C (ETA) — PY 2006

Increase placements and educational attainments for youth served through the WIA youth program.

Program Perspective and Logic
The Workforce Investment Act (WIA) authorizes services to low-income youth (age 14-21) with barriers to employment. The program serves both in- and out-of-school youth, including youth with disabilities and other youth who may require specialized assistance to complete an educational program or to secure and hold employment. Through this program, youth are prepared for employment and post-secondary education by stressing linkages between academic and occupational learning. Additional services available to youth include tutoring, alternative schools, summer employment, occupational training, work experience, supportive services, leadership development, mentoring, counseling, and follow-up services.

DOL collects data for three performance indicators, all common measures for youth and lifelong learning aspects of Federal employment and training programs. The first, percent of youth entering employment, advanced training or education after leaving the program, indicates whether DOL is transitioning youth into the workforce or post-secondary education — a key to successful careers. The second, percent of participants earning educational credentials, is a proxy for the preparedness of participants to compete in the 21st century knowledge-based economy. The third indicator measures literacy/numeracy gains by basic skills deficient out-of-school participants in the WIA Youth Program. Data on literacy/numeracy gains were collected but are insufficient to report at this time; DOL will establish a baseline in PY 2007 and then targets for PY 2008.

Analysis and Future Plans
The goal for the WIA youth program was substantially achieved. In PY 2006, the program reached its target for attainment of a degree or certificate. Results for placement in employment or education fell slightly below the target; however, the result is an improvement over the PY 2005 result. DOL is in the process of collecting data to establish a baseline for literacy/numeracy gains. Increased emphasis on serving out-of-school and the neediest youth likely impacted the program's ability to meet the target for the entered employment or education indicator. These populations are the most difficult to serve, and they historically have lower performance outcomes. Results should improve as WIA-funded youth programs become more effective in serving out-of-school youth and continue to increase coordination with other youth-serving agencies and systems such as juvenile justice and education.

Suzzie is a teen parent attending the Carver-Scott Educational Cooperative (CSEC) in Shakopee, Minnesota. She took the Medical Careers class which allows students to explore the health field. Park Nicollet Clinic, CSEC and Scott County developed a 10-week work experience program with academic credits. Suzzie was one of three parenting/pregnant teens enrolled in job shadowing a variety of high growth medical occupations at the clinic. Suzzie felt that the WIA youth program helped her with teamwork, communication and mathematics. She enjoys math now and understands how important it is in a medical profession. With this inspiration, Suzzie achieved straight A’s and is now attending Crown College as a Post Secondary Education Option student, taking classes that are applicable for her enrollment next year in their two-year nursing program. Suzzie is the first in her family to go to college and she hopes to inspire others to follow. [Photo Credit: Kay Tracy]

Collection of baseline data on literacy/numeracy gains will continue in PY 2007 to enable the program to set a valid target for PY 2008. The Department will continue strategies that recognize out-of-school and at-risk youth as an important part of the new workforce "supply pipeline" needed by businesses to fill job vacancies in the knowledge economy. WIA-funded youth programs connect these youth with quality secondary and post-secondary educational opportunities, and high-growth and other employment opportunities. To support these strategies, DOL formed a Shared Youth Vision (SYV) Federal partnership with the Departments of Health and Human Services, Education, Justice, Housing and Urban Development and Transportation, and the Social Security Administration and the Corporation for National and Community Service. The focus of the Federal partnership is to assist States in coordinating resources and program delivery strategies to achieve positive outcomes for the neediest youth. In conjunction with the SYV Federal partnership, DOL awarded grants to 16 States for the development and implementation of pilot projects to provide integrated services to a specific population of the neediest youth.

Costs associated with this performance goal rose by seven percent between PY 2004 and PY 2005 and then fell eleven percent between PY 2005 and PY 2006, reflecting fluctuation in the timing of expenditures; States have three years to expend obligated funds. The decrease in costs for PY 2006 is also attributable to a twelve percent decline in the number of participants served. The number of participants served fluctuates from year to year. Costs are not allocated at the indicator level since funds provided to the States support all the measured outcomes — entering employment or education, attaining a degree or certificate, and demonstrating gains in literacy or numeracy — and many of the youth who exit the program experience all three.

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PART, Program Evaluations and Audits
The program underwent a PART review in 2003 and received a rating of Ineffective. After the review, DOL implemented the improvement plan recommendations: In PY 2006, the Department began collecting data from WIA grantees on all three common performance measures for Federal job training programs. DOL is also contracting an independent study of program effectiveness — using administrative data — to be completed in 2008. Also in 2008, a more rigorous, seven-year evaluation will begin to determine WIA services' impact on employment and earnings outcomes for participants. The Government Accountability Office conducted an evaluation titled, "Workforce Investment Act: Additional Actions Would Further Improve the Workforce System." To view a summary of the findings, recommendations, and a link to the study, please see Performance Goal 06-2A.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Very Good. Strengths of the data included its relevance, reliability, and routine verification. While verification remains an area for improvement, extensive effort has been directed toward improving data quality through the use of DOL’s data validation system and monitoring at both the national and regional levels (see item IX, Improving Performance Accountability of Grants in the Major Management Challenges section of Management’s Discussion and Analysis). In particular, ETA drafted a revised Monitoring Guide for data validation in PY 2006 and will implement a streamlined performance reporting system in 2008. To support the new reporting system, benchmarks for data validation results will be established once baseline studies are completed.

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Satisfy High-Growth Industry Labor Needs via Apprenticeships

Performance Goal 07-1D (ETA) — FY 2007

Improve the registered apprenticeship system to meet the training needs of business and workers in the 21st Century.

Program Perspective and Logic
The National Registered Apprenticeship System is a partnership of the Department of Labor, State agencies, sponsors, industry leaders, employers, employer associations, labor and management organizations, and educational institutions. It was established in 1937 to provide opportunities for jobseekers to find jobs with career paths, earn competitive wages, and obtain nationally-recognized industry credentials. The system promotes and registers programs and apprentices, certifies standards, safeguards the welfare of the apprentices, and provides a nationally recognized system for skilled and technical occupational training programs throughout the U.S.

The CVS Career Prescriptions for Success (CAPS) program addresses projected shortfalls of Pharmacy Technicians and Pharmacists through a multifaceted career path strategy, which includes building community interest in pharmaceutical jobs, targeting recruitment in high unemployment neighborhoods in Detroit, providing apprenticeships, and assisting current workers with career advancement through academic and training programs. As a result of this program, several successful apprentices have emerged, including Teresa. Teresa learned of the CVS CAPS program through Goodwill Industries, a faith-based and community partner. The mother of two young sons, Teresa was looking for a challenging job in a new field with advancement opportunities. She joined CVS in August 2006. Since then, she has excelled as a Pharmacy Service Associate and is now training to become an Assistant Manager. [Photo Credit: Darnell Jones]

The Department promotes the apprenticeship training system to potential sponsors and participants and registers and monitors these partners' apprenticeship programs, in some cases via State Apprenticeship Council/Agencies (SAA). Registration and oversight officials certify that standards are met for quality, fairness, and opportunity, and that apprenticeship programs incorporate appropriately supervised on-the-job learning and occupation-related technical instruction.

The apprenticeship model has demonstrated success in providing employers in numerous industries with resources to develop new occupations and train a skilled workforce to remain globally competitive. As a system based on voluntary industry participation, apprenticeship program performance is directly impacted by external factors such as wage rates determined by local apprenticeship sponsors and by the demand for skilled and technical labor in local markets.

Analysis and Future Plans
Apprenticeship continues to demonstrate positive results as it reached FY 2007 targets for both indicators; therefore, the Department achieved its performance goal. In fact, the target for the employment retention of registered apprentices was exceeded by four percentage points. Nationally, there was modest wage gain reported from all apprenticeship programs. However, due to an unusually high demand for skilled workers in southern Nevada, there was a substantial increase in wages in that area that affected the national average for the wage gain indicator. The average cost per registered apprentice was $74, or $23 less than the FY 2006 result of $97, because the number of registered apprentices increased from 220,000 in FY 2006 to 304,500 in FY 2007. This 38 percent increase was likely due to a large, one-time influx of registered apprentices from California into the Department's Registered Apprenticeship database.³ In summary, the program's continued positive results demonstrate that Apprenticeship is an efficient and effective approach to training America's workers.

The Office of Apprenticeship is working with YouthBuild programs at various sites in Massachusetts to link with construction trades apprenticeship programs throughout the Commonwealth. The academic and hands-on training in construction safety and building techniques that participants receive is a natural lead into apprenticeship for program graduates interested in pursuing construction careers. YWCA YouthBuild Springfield is noteworthy because it graduated one of the first two Youth Development Practitioner journey workers in Massachusetts. [Photo Credit: DOL/ETA] YWCA YouthBuild participant Mercedes adjusts her hard hat before beginning work on new housing.

The Department continues to re-engineer its database for registered apprenticeship programs. The new system coming online in FY 2008, to be renamed Registered Apprenticeship Partnership Information Data System (RAPIDS), will improve program quality and efficiency by using electronic processes to manage program data. The system's new and enhanced reporting capabilities will also reduce staff time necessary to generate management reports, which will improve program efficiency. Additionally, a survey of employer sponsors conducted in the spring of 2007 portrays their views on apprenticeship and integration with the workforce investment system. Findings from the survey will be published in FY 2008 and will help shape future improvements to the National Apprenticeship System.

Costs associated with this performance goal remained fairly constant between FY 2005 and FY 2007. Costs are not allocated to the performance indicator level since funding supports both measured outcomes for apprentices served by the federally administered programs.

PART, Program Evaluations and Audits
The program underwent a PART review in 2005 and received a rating of Results Not Demonstrated — reflecting lack of data on the common measures at that time. The resulting improvements DOL implemented include adopting the common measures for retention and earnings, and redesigning the Registered Apprenticeship Information System (RAIS) to capture post-training outcomes. Additionally, the Department continued efforts to expand the numbers of women in apprenticeship by awarding three Women in Apprenticeship and Nontraditional Occupations (WANTO) grants to a consortium of apprenticeship sponsors, and community- and faith-based organizations to recruit, train, employ and retain women in apprenticeship and nontraditional occupations.

Data Quality and Major Management Challenges
Data quality for this performance indicator was rated Fair. Strengths of the data include its accuracy, but room for improvement remains in verifiability, completeness, timeliness, and validity. The primary data source is RAIS, an automated system that operates independently from State workforce information systems. For the 25 States in which SAAs register apprentices, participation in RAIS is voluntary; therefore, complete nationwide data are not available and the collection of retention and earnings data remains challenging. Recent implementation of the common measures will affect the ability to compare performance trends in the short term. As indicated in the footnote on the first page of this narrative, wage gain data are limited to Federal efforts. RAPIDS (which will replace RAIS) includes trend analysis capability and offers features to encourage SAAs to utilize this data collection system. The system also has greater quality controls to ensure the accuracy of data collected from the federally administered programs. Efforts continue to determine how Unemployment Insurance wage record information may be accessed to verify employment outcomes of registered apprentices. It is anticipated that RAPIDS will considerably reduce the estimated staff hours needed to report the earnings indicator.

Implementation of RAPIDS will address a Major Management Challenge (MMC), Improve Apprenticeship Data Quality — included in item IX of the MMC table in Management's Discussion and Analysis — by making better use of performance data for program oversight and developing a cost-effective strategy for collecting data from SAAs. Expansion of the Apprentice Electronic Registration (AER) project in RAIS reduces application processing time, improves data quality, increases cost-effectiveness, and improves the program's ability to track data. AER's utilization rate increased from nine percent of participating States in FY 2005 to 50 percent in FY 2007.

The Department continues efforts that began in FY 2005 to review apprenticeship activities in SAA States. All 25 SAA States are complying with the Department's SAA review recommendations. DOL anticipates that the SAA States will continue to correct any deficiencies identified during the review process.

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Help Veterans Get and Keep Jobs

Performance Goal 06-1E (VETS) — PY 2006

Improve employment outcomes for veterans who receive One-Stop Career Center services and Homeless Veterans' Reintegration Program services.

Program Perspective and Logic
Jobs for Veterans State grants support the delivery of employment services needed by veterans and transitioning service members to promote their success in the civilian workforce. These grants support over 2,100 disabled veterans' outreach specialists and local employment representatives stationed at the nationwide network of over 3,100 comprehensive and affiliate One-Stop Career Centers. These staff serve as experts on workforce resources available for veterans. The local representatives emphasize the provision of services for recently separated veterans and handle outreach to employers, while the outreach specialists focus their efforts on intensive services for disabled veterans and other veterans with significant barriers to employment. The Homeless Veterans' Reintegration Program (HVRP) is a competitive grant program emphasizing stable employment as the critical factor in mitigating homelessness among veterans. Program participants are served by community-based grantees that provide pre-employment services, establish linkages with service providers funded by other Federal agencies, and rely on the specialists to assist them in finding employment once they are job-ready.

One-Stop Career Centers serve younger, recently separated veterans who have limited civilian work experience and older veterans with civilian experience who have become unemployed. HVRP grantees serve homeless veterans who have minimal attachment to the workforce. DOL applies the Federal job training common measure definitions of entry to employment and retention in employment as the critical indicators of successful outcomes for all veterans and all disabled veterans who receive One-Stop services. For HVRP, DOL has used similar indicators; common measure definitions will be fully implemented in PY 2007. In setting performance targets, VETS seeks to improve service to veterans at a rate that is ambitious yet attainable.

Analysis and Future Plans
The goal was not achieved; only three of the six targets were reached. For all veterans served by One-Stop Career Centers, entered employment and employment retention rates declined by two percentage points from PY 2005. The employment rate target was reached while the retention rate target was not reached. For disabled veterans, the employment and retention rates also declined by two percentage points from PY 2005; as for all veterans, the employment rate target was reached while the retention rate target was not reached. The employment rate target for HVRP participants was not reached, and an estimate of the final retention result indicates it will exceed the target. Results in the charts below are for the first two indicators, which include disabled veterans but not HVRP participants.

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During the past year, continued improvement in broad national economic indicators for unemployment, interest rates and productivity had a positive impact on VETS program performance. The decline between PY 2005 and PY 2006 of two percentage points across the results of all four indicators for veterans served by One-Stop Career Centers is attributable, at least in part, to a temporary disruption in interstate sharing of data on employment outcomes. That situation is expected to improve during PY 2007. While the employment rate attained by HVRP for PY 2006 was the second highest in the program's history, an increase in the proportion of new grantees may have contributed to the failure to reach the ambitious target. In response to these results, DOL intends to redouble its efforts to facilitate coordination among the VETS State offices, State Workforce Agencies and community based grantees, such as those responsible for implementing HVRP.

To improve employment outcomes for veterans, DOL is developing and implementing State Workforce Agency performance standards. Within the HVRP, VETS is implementing common measure reporting procedures to facilitate comparison of results across agency programs. Additionally, VETS will place increasing emphasis on serving those homeless veterans with significant barriers to employment or chronically homeless veterans by extending the period grantees actively support and monitor employment retention. VETS also is expanding the Recovery and Employment Assistance Lifelines program by assigning additional program outreach staff at the major medical installations throughout the country. This program, which is complemented by efforts of the Departments of Defense and Veterans Affairs, provides individualized job training, counseling and re-employment services to seriously injured or wounded veterans of Operation Iraqi Freedom, Operation Enduring Freedom and other recent conflicts. In addition, VETS plans to enhance states' flexibility with the Jobs for Veterans Act of 2002 (JVA) Grant program by helping states to more effectively integrate DVOP specialists and LVER staff into the One-Stop Career Center System.

Net costs for this performance goal remained fairly constant between PY 2004 and PY 2006.

PART, Program Evaluations and Audits
The 2005 PART review of the Jobs for Veterans State Grants Program rated the program Moderately Effective and noted that it serves a large number of veterans, while focusing on those veterans requiring more intensive services by leveraging other resources within the workforce investment system. The improvement plan included setting more ambitious performance targets and conducting an independent evaluation to assess the effects of recent program changes on employment outcomes. VETS established ambitious targets in the DOL FY 2006-2011 Strategic Plan and completed the first phase of a two-year evaluation (see summary of SRA International study in table below).

HVRP was rated Moderately Effective in its 2006 PART review, which noted that it provides competitive grants to community-based organizations that coordinate the wide range of local services required to enable homeless veterans to achieve self-sufficiency. The improvement plan included conducting a rigorous evaluation, continuing to improve cost-effectiveness, and strengthening accountability. VETS has taken significant action on these items by conducting competitions for PY 2007 grants, fully implementing common measures for PY 2007, and launching an independent evaluation in September 2007.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Good. Strengths of the data include relevance, timeliness, and completeness. The four indicators addressing the outcomes of veterans and disabled veterans served by One-Stop Career Centers rely upon the reporting system for One-Stop Career Centers (Performance Goal 06-2C). Therefore, in general, the data quality assessment for that goal also applies to these indicators. The two indicators addressing outcomes for homeless veterans served by HVRP rely upon the Veterans' Employment and Training Operations and Program Activity Report (VOPAR). VOPAR areas for improvement are reliability and verifiability. During 2007, DOL enhanced the system to accommodate common measures and added internal consistency checks. During 2008, DOL plans additional system upgrades and focused oversight of implementation and verification processes. Routine quality control measures include trouble-shooting by expert VETS field staff and workshops on reporting at the annual conference attended by all grantees' representatives. VETS has no DOL major management challenges.

¹Net cost as defined in a footnote to the Cost of Results discussion in Management's Discussion and Analysis.
²The excluded costs are referred to as Income Maintenance — unemployment benefit payments to individuals who are laid off or out of work and seeking employment ($32.051 billion) plus disability benefit payments to individuals who suffered injury or illness on the job ($3.050 billion).
³SAA programs are not required to submit performance data. The Department's assumption of registration duties in California in FY 2007 had a dramatic impact on the size of the national database.