Maintain Competitiveness in the 21st Century Economy
The Department strives to keep our country's workforce competitive in a
global economy by helping workers acquire the skills they need for the new jobs
being created in high-growth industries and by reducing unnecessary burdens of
labor laws and regulations. To facilitate continued economic growth, DOL
promotes demand-driven workforce investment strategies at every level
local, State and Federal and to embrace new methods of engagement with
strategic partners, including employers, industry associations, community
colleges, and the public workforce system. Regulatory reviews consider whether
changes are needed in the structure or application of existing law, and
enforcement strategies emphasize compliance assistance, targeting the most
egregious problems and expanding use of electronic reporting.
Two outcome goals support A Competitive Workforce. Programs
administered by the Employment and Training Administration (ETA) support
Outcome Goal 4.1 by supplying timely and relevant workforce
information, helping employers fill gaps in the labor market with foreign
workers, providing reemployment assistance for workers displaced by shifts in
international trade and encouraging innovative strategies for making workforce
systems more demand-driven, i.e., focused on high-growth industries and
occupations. The Office of the Assistant Secretary for Policy (OASP) conducts
oversight of Department wide efforts to improve the cost-effectiveness of labor
market regulations in connection with the second outcome goal.
In FY 2005, Workforce Information outcomes generally met or exceeded
expectations. Foreign Labor Certification and Trade Adjustment Assistance
demonstrated improved results, despite missing some targets. DOL regulatory
programs made progress in conducting reviews of whether rules are current and
minimize burdens on compliant employers; significant revisions were proposed or
published in the areas of child labor and pension plans.
Outcome Goal 4.1 Build a
Demand-Driven Workforce System to Address Worker Shortages and Equip Workers to
Adapt to the Competitive Challenges of the 21st Century One
performance goal substantially achieved & two goals not achieved |
FY 05/PY 04 Costs (millions)
|
ETA Workforce Information (04-4.1A) |
Goal substantially achieved. Five targets reached, one not
reached. |
$106 |
ETA Foreign Labor Certification (05-4.1A) |
Goal not achieved. Three targets reached, one not reached.
|
60 |
ETA Trade Adjustment Assistance (05-4.1B) |
Goal not achieved. Two targets reached, two not reached. |
846 |
Other (Pilots,, Research and Evaluations, and H-1B Technical
Skills Training) |
151 |
Outcome Goal 4.2 Promote Workplace
Flexibility and Minimize Regulatory Burden One performance goal
achieved |
OASP Flexible Regulations and Workplaces (05-4.2A)31 |
Goal achieved. Four targets reached. |
|
The following charts illustrate DOL's strategic goal net costs in FY
2005, with A Competitive 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 2.32 Net
costs of this goal in FY 2004 were $6 million.
The outcome goals and programs listed above, along with their results,
costs, and future challenges are discussed in more detail on the following
pages.
31The costs of achieving
DOL's results in maximizing regulatory flexibility are distributed throughout
the department's regulatory agencies, as it is part of their costs of
operations. 32The excluded costs are referred to as Income
Maintenance unemployment benefit payments to individuals who are laid
off or out of work and seeking employment ($31.488 billion) plus disability
benefit payments to individuals who suffered injury or illness on the job
($5.936 billion).
To succeed in today's rapidly changing global economy, employers need
access to workers with the right skills at the right time, and workers need
access to flexible, efficient training that helps them upgrade existing skills
or attain those skills to obtain quality jobs. To support those needs, it is
imperative that the workforce investment system support activities that are
driven by local employer demand, and that it prepares workers to take advantage
of new and increasing job opportunities in high-growth/high-demand and
economically vital industries and sectors of the American economy.
This outcome goal includes three performance goals and other initiatives
administered by the Employment and Training Administration (ETA). Programs that
correspond to the performance goals listed in the table below disseminate
information to employers and job seekers on opportunities, expedite visa
applications for employers who need to hire foreign workers, and assist workers
who lose their jobs due to foreign competition. The President's High Growth Job
Training Initiative (HGJTI) uses partnerships with employers, public workforce
agencies, education and training providers, and economic development
organizations to model the demand-driven approach to workforce development via
demonstration of new and innovative workforce strategies. It has targeted
industries such as advanced manufacturing, automotive, biotechnology,
construction, energy, financial services, geospatial technology, health care,
hospitality, information technology, retail, and transportation. In addition,
the Career Voyages Web Site informs young adults, their families,
career advisors, and career changers about the in-demand occupations within
high growth, emerging and vital industries.
Goal (Agency) and Statement
|
Performance Summary |
FY 05/PY 04 Costs (millions)
|
04-4.1A (ETA)
Build a demand-driven workforce system by increasing access to
workforce information. |
Goal substantially achieved. Five targets reached, one not
reached. |
$106 |
05-4.1A (ETA)
Assist employers in meeting their workforce needs by providing
them with expeditious determinations on their applications to hire foreign
workers. |
Goal not achieved. Three targets reached, one not reached.
|
60 |
05-4.1B (ETA)
Increase the employment, retention and earnings replacement of
workers dislocated in important part because of trade who receive trade
adjustment assistance benefits. |
Goal not achieved. Two targets reached, two not reached. |
846 |
Other (Pilots, Demonstrations, Research and Evaluation, and H-1B
Technical Skills Training). |
151 |
Renee triumphed in setting her new career
through the TAA program. For 15 years, Renee worked in production before she
was laid off because her job was moved to Mexico. After she enrolled in the TAA
program, Renee entered the nursing program in June 2003. Despite the loss of
her two closest family members, and financial difficulty during school years,
Renee successfully completed her program with guidance and assistance by the
TAA program and its staff. When she graduated in May 2005 with her Registered
Nurse (RN) degree, Renee immediately started working as an RN at the hospital.
She is currently taking a telemetry class to expand her skill and knowledge
base. She is now earning $21.50 per hour compared to $14 at her production job!
Also, she feels great satisfaction from helping others. |
|
Photo credit: Artine Jones and Renee
Thompson |
Results Summary Although just one of three
performance goals was substantially achieved, significant progress was made in
this period, as evidenced by results at the indicator level (ten of 14 targets
reached). Workforce Information job listings, resume searches and O*NET
resource quality and traffic all posted impressive increases. O*NET is DOL's
Occupational Information Network. Job searches fell; this may be a desirable
outcome since it could be due to an improving economy. Foreign Labor
Certification (FLC) improved over FY 2004 on both of its processing indicators
but missed one of the targets due to an unanticipated increase in demand. Trade
Adjustment Assistance (TAA) continued to improve participants' employment,
retention and earnings, but two of these indicators fell short of targets. The
program exceeded its efficiency (cost per participant) target by a significant
margin, however.
A significant number of the projects funded under HGJTI are in their
first year of performance; hence DOL has limited outcome data at this time.
Grantees will be reporting on elements such as number of participants
successfully completing training, job placements, retention, wage increase and
earnings, and impact of capacity building activities (e.g., products developed
and individuals impacted). The Department plans to evaluate all HGJTI grants,
including those awarded in Program Year (PY) 2004.
The President's High Growth Job Training Initiative is playing a crucial
role in the Gulf region's response to Hurricane Katrina. In an immediate
response to the hurricane, DOL's Employment and Training Administration awarded
$12 million in grants under the President's HGJTI to Alabama, Louisiana,
Mississippi, and Texas. These grants will be used to train workers in
industries that are critical to the economic recovery of the Gulf region,
including construction, energy, health care, transportation and
safety-security. Additionally, DOL created a Katrina-specific job web site for
employers to post available jobs. Within days after the Hurricane struck,
http://www.jobsearch.org/katrinajobs listed over 95,000 jobs. DOL also worked
with private sector staffing companies and outplacement firms to identify
potential partnerships with the public workforce system in support of hurricane
recovery.
Net Cost of Programs Although only one of the
performance goals is new33, this is the first year
costs have been allocated to this outcome goal. Most of the net costs of $1.163
billion are associated with the Trade Adjustment Assistance program ($846
million).
Future Challenges In PY 2005, Workforce
Information efforts will focus on fully integrating services into State and
local planning, decision-making and service delivery to businesses and job
seekers in programs funded by the Workforce Investment Act and the
Wagner-Peyser/VETS-funded employment services. FLC continues implementation of
fraud detection/ prevention measures and development of new procedures to
eliminate backlogs. TAA, in order to improve data quality, will assist States
with use of the Wage Record Interchange System.
To ensure that all ETA programs are effectively equipping today's
workers to succeed in the 21st century, the Department is integrating its
demand-driven approach across many program areas through targeted competitive
grants. In PY 2005, DOL expects to report outcomes for the following
initiatives:
- Youth Offender Grants targeting solutions that prepare at-risk
youth for high-growth jobs;
- Community-Based Job Training Grants building the capacity of
our nation's community college system to provide training in locally identified
high growth/high demand industries; and
- Hispanic and Limited English Proficiency Grants providing
training in high growth occupations.
33Workforce
Information was previously part of the One-Stop system employment services
performance goal in Outcome Goal 1.1. Foreign Labor Certification has been
added to the list of goals reported on in this report due to its strategic
significance. Trade Adjustment Assistance was in Outcome Goal 1.1 in FY 2004.
Build a demand-driven workforce investment system by increasing
accessibility to workforce information
Indicators, Targets and Results |
PY 2003 Result |
PY 2004 Target |
PY 2004 Result |
Target Reached* |
The number of job openings listed with the public labor exchange
(with State Workforce Agencies and America's Job Bank) |
12.8 million |
12.994 million |
14.675 million |
Y |
The number of job searches conducted by job seekers in America's
Job Bank |
169 million |
170.788 million |
138.567 million |
N |
The number of resume searches conducted by employers in America's
Job Bank |
8 million |
8.090 million |
9.249 million |
Y |
Percent of new requirements ratings for O*NET-SOC occupations
|
15% |
15% |
22% |
Y |
Percent of O*NET-SOC occupations for which updated data are
released |
15% |
15% |
22% |
Y |
Web site visits to O*NET |
2.7 million |
2.77 million |
3.91 million |
Y |
PY 2004 Costs |
$106 Million |
*Indicator target reached (Y), substantially reached (S) or not
reached (N) |
Goal Substantially Achieved
|
Program Perspective The State and National
workforce information system supports the goal of a demand-driven workforce by
facilitating efficient and effective functioning of labor markets in a
competitive economy. DOL contributes by creating and broadly disseminating
current, local information on high growth industries and occupations. This
information is critical for planning and delivering demand-driven workforce
services. Customers include employers, job seekers, and State and Local
Workforce Investment Boards (WIBs), who find this service useful for business,
education, economic development and individual career decisions. The workforce
information system consists of :
- Occupational Information Network (O*NET) a database of
competency requirements, work roles, and occupations (tasks, knowledge, skills,
abilities and other characteristics);
- State workforce agency core products and services State and
local labor market dynamics, e.g., employment, wages, and skills in demand by
industry and occupation;
- CareerOneStop (COS) national electronic tools allow universal
distribution and self-service access to workforce information, including data
on wages, occupations in demand, skills held and needed, and growth industries;
and
- America's Job Bank (AJB) an Internet job market, with services
provided through State workforce agencies' One-Stop Career Centers.
Resources supporting this goal are used for technical assistance and
emerging occupation research, to operate the web sites and to keep the
databases current. The AJB utilization indicators show how well it is operating
as a forum for connecting labor demand with supply. O*NET performance
indicators gauge effectiveness in keeping the database of occupational
competency ratings current with dynamic occupations and industries.
The state of the economy and national labor market conditions the
number of jobs and workers available strongly influence performance
levels for the AJB indicators. For example, during PY 2003, the job openings
indicator exceeded its target significantly as the economic expansion picked up
steam and the nation's unemployment rate dropped from 6.2 percent to 5.6
percent, whereas the same target was missed in PY 2002, when the economic
expansion was just beginning. External factors that could affect O*NET
performance are changes in public demand for O*NET information or in public
participation in the data collection effort.
Analysis and Future Plans The Department
substantially achieved its performance goal for the workforce information
system. Results for each of the indicators under this goal reached or exceeded
the targets, with the exception of the America's Job Bank job searches
indicator. The job and resume search indicators and baselines were established
in PY 2003. With the benefit of another year's data, these indicators appear to
be more strongly influenced by economic conditions than originally believed. It
now appears that an artificially high baseline was set for the job searches
indicator, as the unemployment rate and hence the job search activity was
higher during that period. This is supported by the fact that the lowest
monthly count for job searches in the baseline year (PY 2003) is still higher
than the count for any month in PY 2004. As the economic climate improved
throughout PY 2004, it is logical to expect a decline in the number of
individuals searching for work. There also appears to be an inverse
relationship between the job search and resume search indicators; as the number
of job searches declined, the number of resume searches increased, with the
resume search target being exceeded by 1.2 million. This is also consistent
with a relatively stronger economy, as businesses become more proactive in
searching for individuals as the labor market tightens.
CareerPoint, the One-Stop Career Center
in Holyoke, MA, delivers outstanding services to job seekers with significant
barriers, particularly those with disabilities. At the center, Paul and Sarah
explore Americas Job Bank at the adjustable-height workstation equipped
with large screen monitor, trackball mouse and assistive software. Paul has
also met with the benefits specialist and job developer, and has attended the
Job Club for Persons with Disabilities, which was offered by the center. In
addition to standard job seeker services and assistive technology, members of
CareerPoints Disability Team are currently developing a model for serving
persons with severe disabilities. |
|
Photo credit: Sarah Etelman, Paul Acosta,
Leslie Dehey |
In response to these findings, the target for the job searches indicator
will be adjusted for PY 2005, to a 1 percent increase over the PY 2004 result.
The target for the O*NET site visits indicator adjusted upwards to 3.87 million
because demand for this information has exceeded initial estimates. While the
targets for updating and releasing new O*NET data were both exceeded this year,
these rates will not be adjusted as data collection nears completion and more
rare or hard-to-locate occupations make up a larger share of the remaining
sample. Adjustments to targets are expected to make improved performance
challenging, but achievable, while further discussion is held on whether or not
these are the appropriate indicators of performance for this activity in
future.
In PY 2006, DOL's challenge will be fully integrating workforce
information services into State and local planning, decision-making and service
delivery to businesses and job seekers in programs funded by the Workforce
Investment Act (WIA) and the Wagner-Peyser/VETS-funded employment services. To
further this integration, ETA will begin collecting and reporting data on the
impact of workforce information on participant employment outcomes.
Management Issues Performance data for these
indicators are considered complete and reliable. Data for the O*NET indicators
are gathered and validated by internal management information systems and a
data warehousing project was completed last program year at the America's Job
Bank Service Center against which queries are now run to provide accurate
counts of the number of job openings received and job and resume searches
conducted on America's Job Bank.
The Government Accountability Office (GAO) released a report on the WIA
in February 2005: 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). The report examined employers' awareness
and use of One-Stop services, including AJB. While AJB was discussed in the
report, the GAO did not make any recommendations that addressed AJB.
The workforce information system was included in the FY 2004 PART
assessment of the Wagner-Peyser employment services, and was rated Adequate.
None of the PART findings and recommendations addressed workforce information,
the COS or O*NET.
Assist employers in meeting their workforce needs by providing them
with expeditious determinations on their applications to hire foreign workers.
Indicators, Targets and Results |
FY 2004 Result |
FY 2005 Target |
FY 2005 Result
|
Target Reached* |
Percent of H-1B applications processed within seven days of the
filing date for which no prevailing wage issues are identified |
99% |
100% |
100% |
Y |
Percent of employer applications for labor certification under the
streamlined system that are resolved within six months of filing |
N/A |
baseline |
57% |
Y |
The average cost for processing a new PERM application |
N/A |
baseline |
$523 |
Y |
Percent of the H-2B applications processed within 60 days of
receipt |
70% |
90% |
85%** |
N |
FY 2005 Costs |
$60 Million |
*Indicator target reached (Y), substantially reached (S) or not
reached (N)
**Estimated based on three quarters of data
|
Goal Not Achieved |
Program Perspective The Department's Foreign Labor
Certification programs permit U.S. employers to hire foreign workers on a
temporary or permanent basis when no American workers are available, able,
willing or qualified. Employers file applications with the Department on behalf
of workers they seek to employ on a temporary basis through the H-1B, H-1B1,
E-3, H-2B, H-2A and D-1 programs. In addition, through the Permanent Employment
Certification (PERM) program, employers can secure permanent residence in the
U.S. for a foreign worker based on the employer's permanent need for specific
job skills. Employers are increasingly using visa programs to meet their needs.
Recently, demand has exceeded capacity to properly certify applications.
Consequently, DOL has made it a priority to improve efficiency while
maintaining a high standard of program integrity. Thus, H-1B, H-2B and PERM
application processing indicators measure improvement in timeliness and
cost-effectiveness.
Analysis and Future Plans As indicated in the table
above, the goal was not achieved, but three of the four targets were reached.
The H-1B Specialty (Professional) Workers Program's application process was
automated in Fiscal Year (FY) 2002 as part of an ongoing effort to streamline
foreign labor programs. Automated application has significantly improved the
H-1B Program's overall performance application processing increased from
a low of 56 percent of applications being processed within seven days of
receipt in FY 2001 to 100 percent of applications in FY 2005 (see chart to the
right). The program is now in compliance with the statutorily required
seven-day timeframe, and meets employer expectations for timely processing of
H-1B applications. Furthermore, virtually all Labor Condition Applications
(LCAs) filed using the Department's web-based online system are processed
within a few hours of their receipt, and the average processing time for LCAs
filed using the H-1B fax system is 23 hours.
In March of 2005, the Permanent Labor
Certification Program successfully launched its new system, known as the
Program Electronic Review Management System (PERM). Employers are no longer
filing the applications in a paper format or waiting for a long period to hear
the result of their applications. This new system provides an online
application which is accessible at any time and anywhere. Processing time has
been significantly reduced by eliminating the State role in processing
applications. To ease the transition period, help desk support for the PERM
system is also available. |
|
Photo credit: Courtney Chung and Steve
Beeson |
The Department continues to make improving the overall performance of
the PERM program a major priority. A key accomplishment during FY 2005 was
launching the online PERM system. This new system, which reduces application
processing times by automation, went into effect in March 2005. The results of
two indicators related to the new PERM system the percentage of
applications resolved and an average cost per processing a new PERM application
will serve as baselines and determine targets for FY 2006. The online
PERM system is dramatically transforming the program from a labor intensive
application processing approach, relying on State and Federal staff; to a
streamlined processing model that utilizes electronic filing technology. DOL
established two national processing centers in FY 2005 to provide the
infrastructure needed to improve overall application processing efficiency.
Although the processing times for temporary non-agricultural H-2B
applications have significantly decreased at both the State and Federal levels,
they have not kept pace with employer demand for H-2B workers. As a result, a
few employers seeking to hire H-2B foreign workers continue to experience
delays. To address this concern in FY 2005 the Department of Labor deployed a
new Oracle-based H-2B tracking system and consolidated the Federal processing
role at our two centralized national processing centers located in Atlanta and
Chicago. These changes should streamline and improve overall DOL administration
and accountability of the H-2B program.
Management Issues In its FY 2004 report, the
Office of Inspector General (OIG) listed integrity of the Foreign Labor
Certification programs among DOL's top management challenges. Fraud prevention
continued to be top ETA priorities in FY 2005. Fraud cases involve applications
filed on behalf of fictitious companies, the fraudulent use of legitimate
companies without their knowledge, and the collection of fees from fraudulent
applications filed on behalf of foreign workers. As in previous years, DOL
continuously takes steps to improve overall program integrity and employer
compliance by developing a fraud detection/prevention system that uses a
database of public records to validate applicant information and identify signs
of risk or fraud. DOL is also considering the use of other safeguards to
authenticate the identity of an employer and to maintain the integrity of the
application process.
In 2004, the H-1B and Permanent programs were assessed under the
PART. The Permanent program was rated Adequate and the H-1B program was
rated Moderately Effective. For the H-1B program, the assessment
recommended that DOL strengthen the Labor Condition Applications process with
anti-fraud protections and implement new security standards, as appropriate.
The Department is collaborating with the Departments of Homeland Security and
State in a multi-agency data sharing effort to identify, address and deter
H-1B and other visa fraud. The key findings and recommendations for the
PERM program PART included developing new procedures to eliminate the
application backlog, streamlining the certification process, detecting and
preventing fraud, developing appropriate performance measures, and redirecting
funds. To eliminate a backlog of more than 340,000 permanent applications, DOL
developed a new data entry and application processing system and dedicated two
new facilities to this task as mentioned in the Analysis and Future Plans
section above.
Increase the employment, retention, and earnings replacement of
workers dislocated in important part because of trade and who receive trade
adjustment assistance benefits.
Indicators, Targets and Results |
FY 2004 Result |
FY 2005 Target |
FY 2005 Result |
Target Reached* |
Percent of participants employed in first quarter after program
exit |
63% |
70% |
65%** |
N |
Percent of participants employed in first quarter after exit who
are still employed in the third quarter after exit |
89% |
89% |
91%** |
Y |
Average percent of pre-separation earnings for those employed in
the third quarter after program exit |
74% |
80% |
75%** |
N |
The average cost per training participant in FY 2005 (including
training services, job search and relocation allowances, and income support)
|
N/A |
$16,000 |
$13,358** |
Y |
FY 2005 Costs |
$846 Million |
*Indicator target reached (Y), substantially reached (S) or not
reached (N)
**Estimated |
Goal Not Achieved |
Program Perspective DOL's Trade Adjustment
Assistance (TAA) program provides reemployment services to workers who lose
their jobs due to increased imports or shifts in production to foreign
countries. TAA's goal is to return workers to suitable employment as quickly as
possible. The TAA program's success is measured by the extent to which it helps
individuals to regain economic self-sufficiency by quickly securing and
maintaining employment.
The TAA program is one component of seamlessly-integrated products and
services, including those funded under the WIA Adult and Dislocated Worker
programs and the Wagner-Peyser Act. The comprehensive readjustment services and
benefits offered by the TAA program include job search and relocation
allowances, occupational, on-the-job, and customized training, and remedial
education, income support, and the Health Coverage Tax Credit, as well as wage
insurance for qualifying workers under Alternative Trade Adjustment Assistance.
The One-Stop system provides employment counseling, assessment, and placement
services to TAA participants.
The four key indicators used to measure the TAA program's success are
the common performance measures for job training programs. The entered
employment indicator tracks the program's progress in quickly returning
participants to employment. The retention measure indicates whether
participants who quickly obtain jobs are able to sustain employment. The
earnings replacement indicator tracks the program's success at returning
participants to employment at wages close to those earned prior to layoff. The
average cost per training participant helps the program manage towards lower
cost levels while continuing to achieve results. Successful integration lowers
this cost and increases the number of people served.
Analysis and Future Plans In FY 2005, the TAA
program achieved modest improvements in all three outcomes measured, exceeding
the target for employment retention but falling short of targets for entered
employment and earnings replacement. The average cost target was also reached.
Improved results reflect the Department's efforts to integrate services to meet
the needs of all trade-affected dislocated workers, ensure that they have
access to the full range of reemployment services offered through the One-Stop
system, and manage funds to reach more customers. Improvements may also have
been discovered via efforts to more accurately capture program outcomes (see
discussion of data in the Management Issues section below).
During FY 2006, the Department will continue to implement common
performance measures for all job training programs. The common performance
measures will eliminate barriers to seamless integration caused by separate
reporting definitions and measures under different programs. New reporting
instructions and additional training on the new reporting system will provide
another opportunity for the Department to emphasize the importance of reliable
performance data. In addition, the Department has undertaken a multi-state
study on co-enrollment to more accurately inform the system of the effects of
co-enrollment on performance.
Management Issues Although performance data being
reported are the best available and comparable to prior years, the Department
continues to find evidence that all States are not fully cooperating with our
efforts to collect quality data. This has the effect of understating outcomes,
particularly for entered employment. DOL has taken several actions to further
improve the quality of performance reporting. In May 2005, DOL established ten
TAA performance principles designed to raise awareness of the importance of
performance in the TAA program, and to help States focus on an integrated
service strategy that will lead to strong performance achievement. The
Department also issued an advisory to States that provided guidance on using
the Wage Record Interchange System, capturing employment data through
supplemental data sources, and using the correct exit date for TAA
participants. This guidance is expected to lead to improvements in the accuracy
and reliability of reported outcomes in FY 2006. In addition, implementing the
common performance measures for job training programs will reduce the reporting
confusion caused by definitions that differ between programs, and thereby
increase the accuracy and reliability of TAA data.
The Government Accountability Office (GAO) report Reforms Have
Accelerated Training Enrollment, but Implementation Challenges Remain,
issued in September 2004, recommended that DOL monitor the implementation of
certain provisions of the TAA Reform Act and propose legislative changes if
necessary (Study 35 in Appendix 2). DOL has taken steps to assess the challenge
of implementing the new legislation and to formulate new strategies.
The Office of Inspector General (OIG) recently conducted a data
validation review of TAA program data (Study 36 in Appendix 2). The OIG found
that the date of exit for the TAA program could not be substantiated with
source documentation, and recommended that ETA take steps to ensure accurate
recording of exit dates. ETA has clarified definitions and added requirements
consistent with the new common measures, and has conducted three national
training sessions on these issues.
In 2004, DOL contracted for a five-year net-impact study of the TAA
program in order to obtain a more comprehensive understanding of the effects of
the TAA program on trade-affected workers' employment outcomes.
During 2003, the TAA program was assessed under the PART, and was rated
Ineffective. In response to the review's PART recommendations, the Department
drafted the revised TAA regulations; conducted six leadership forums on the
integration of assistance for dislocated workers between the TAA program and
the WIA Dislocated Worker program; and developed and implemented a new funding
formula to improve financial management practices with respect to TAA training
expenditures.
A competitive economic environment features a regulatory structure with
benefits that exceed their costs. Many employment laws and regulations were
written long ago; the applicable context for them has changed considerably, yet
the rules themselves have not. DOL is systematically reviewing the regulations
it is responsible for enforcing, to ensure they do not unnecessarily pose
barriers. In addition, DOL is conducting reviews pursuant to the Regulatory
Flexibility Act of 1980 to determine if regulations have or will have a
significant economic impact on a substantial number of small entities. These
reviews also examine the effect on employers' compliance costs and whether the
regulatory burdens of all employers, both large and small, are reduced.
Outcome Goal 4.2 indicators measure DOL's success in creating a more
competitive economic environment through promotion and development of a
regulatory structure that is congruent with the modern workplace. Comprehensive
reviews are under way or planned for key laws and regulations governing labor
standards, pensions, health care, and worker safety to determine their
appropriateness. Wherever possible, DOL will follow up with changes to reduce
regulatory burden to improve productivity and competitiveness, while
simultaneously protecting worker rights, benefits, and safety. DOL has already
made strides in modernizing its regulatory approach by 1) reinvigorating and
emphasizing compliance assistance through outreach, education, and innovative
programs designed to prevent violations; 2) targeting our enforcement efforts
to address the most egregious problems; and 3) expanding electronic options for
employers to meet their reporting obligations.
Goal (Agency) and Statement
|
Performance Summary |
FY 2005 Costs (millions) |
054.2A (OASP)
Maximize regulatory flexibility and benefits and promote flexible
workplace programs |
Goal achieved. Four targets reached. |
See Net Cost of Programs below |
Results Summary In FY 2005, DOL reached targets
associated with regulatory flexibility, flexible workplaces and cost-effective
practices. DOL did not have an opportunity to pursue its goal of increasing
access to health care benefit plans.
DOL published milestones for 19 regulatory initiatives that address Goal
4.2 purposes during FY 2005. Highlights include:
- ESA's Wage and Hour Division published a final rule to clarify and
update child labor regulations and reflect changes in the workplace and recent
amendments to the law which will eliminate confusion for employers, youths and
their parents;
- ESA's Office of Federal Contract Compliance published final rules
that eliminate requirements to visit employers when conducting compliance
checks;
- ETA proposed changes to regulations that will greatly streamline
procedures for applying for H-1B Visas in Specialty Occupations; and
- OSHA is currently conducting reviews on standards regulating
excavations, methylene chloride, and occupational exposure to lead in the
construction industry.
OASP developed a plan that will be used to identify DOL regulatory
practices that are not cost effective and establish a baseline unit cost
measure for DOL program agencies. The first part of this plan is a literature
review of external studies of the cost of DOL regulatory programs. An initial
assessment of several of these studies has been made.
Net Cost of Programs The costs of achieving DOL's
results in maximizing regulatory flexibility are distributed throughout the
department's regulatory agencies, as it is part of their costs of operations.
Performance Goal 05-4.2A (ASP) FY 2005
Maximize regulatory flexibility and benefits and promote flexible
workplace programs
Indicators, Targets and Results |
FY 2004 Result |
FY 2005 Target |
FY 2005 Result
|
Target Reached* |
Develop plan to review significant regulations for maximum
flexibility |
N |
Develop plan |
Y |
Y |
Establish criteria and timeline for regulatory reviews |
N/A |
Establish criteria and timeline |
Y |
Y |
Baseline unit cost. Develop plan to identify practices that are
not cost-effective |
N/A |
Develop plan |
Y |
Y |
Identify and publicize best practices for, and models of, flexible
workplace practices |
N/A |
Develop Studies |
Y |
Y |
Increase the percent of small employers with access to health care
benefit plans34 |
N/A |
N/A |
N/A |
N/A |
FY 2005 Costs35 |
|
*Indicator target reached (Y), substantially reached (S) or not
reached (N) |
Goal Achieved |
Program Perspective The Office of the Assistant
Secretary for Policy (OASP) coordinates and tracks DOL's achievement of this
goal in part through its role in directing the compilation and publication of
the Department's Annual Regulatory Plan and Semi-Annual Regulatory Agenda. With
OASP's assistance, DOL regulatory agencies have established plans and
procedures they use to prioritize their regulatory initiatives to ensure they
support this strategic goal. It is important to note, however, that most of the
items on the Agenda are either not discretionary (i.e., they are required to
implement new statutory requirements or court decisions) or implement policy
and program priorities related to the Department's other strategic goals.
During the reporting period, the Department had 22 items on its regulatory
agenda that were relevant for goal 4.2 purposes and took action on 19 of them.
Actions included publishing notices of proposed rulemaking, final rules,
interim final rules, etc. In each case, DOL agencies ensured that these actions
maximized net benefits, promoted regulatory flexibility, and replaced obsolete
provisions with ones that reflect current technology and market conditions and
address current business practices.
Each indicator for this performance goal measures DOL's progress in
promoting flexibility in ways that are crucial to a competitive workforce:
regulatory flexibility and workplace flexibility. The regulatory flexibility
indicators ensure that DOL's regulation review plan emphasizes flexibility, is
based on meaningful criteria that, where feasible, reflect public input, and
corrects current regulatory practices that are duplicative, obsolete or not
cost-effective. The workplace flexibility indicators ensure that DOL highlights
and publicizes best practices of flexible workplaces and model flexibility
practices and that an increasing number of small employers are able to provide
their employees with access to health care benefits plans. Regulatory
flexibility indicators are not typically impacted by external factors.
Performance of the workplace flexibility indicator of small employer access to
affordable health care plans is dependent upon passage of Association Health
Plan legislation.
Analysis and Future Plans DOL agencies continue to
apply their regulatory review methodologies to make progress on their
regulatory Agendas. Their review processes allow opportunities for public
input, where appropriate, on both the selection of regulations for review and
the outcomes of reviews. In the course of promulgating revised regulations,
agencies conduct cost benefit analyses to help assure that the regulations
maximize net benefits. DOL published milestones for 19 regulatory initiatives
during the fiscal year that address Goal 4.2 purposes. What follows are four
examples of these regulatory projects. OSHA is continuing its long-term effort
to update standards that either reference or include language from outdated
standards developed by industry or professional consensus groups. By
eliminating this outdated language, DOL clarifies employer obligations and
reduces administrative burdens for both employers and OSHA. EBSA is engaged in
reviews of the relative benefits and burdens of existing regulations that
govern application and evaluation procedures associated with its granting of
prohibited transaction exemptions. Also, EBSA issued a proposed rule that would
establish a procedure to allow financial institutions to distribute the assets
of abandoned individual account plans to participants and beneficiaries. ESA's
WHD published final rules that implement an interactive web based system for
disseminating wage rates applicable for work done on contracts covered by the
Service Contract and Davis-Bacon Acts.
In the fourth quarter, OASP initiated a regulatory review and clean-up
project that will update references in the Code of Federal Regulations. Also in
the fourth quarter, OASP began reviewing external studies of the cost of DOL
regulations in order to help its analysts develop a baseline unit cost measure
for DOL regulatory agencies. An initial review has focused on studies done
between 1978 and 2005 that examine the cost of OSHA regulations in particular.
Analysts are examining the methodology used in the studies to facilitate OASP's
development of a methodology that can be applied to all DOL agencies. Plans are
to develop a prototype methodology by the second quarter of FY 2006.
The Women's Bureau's (WB) Flex-Options for Women demonstration project
is designed for the WB to partner with employers, including corporate
executives, and business owners to mentor other employers in the development of
flexible workplace practices. At the conclusion of FY 2005, this project had
met 100 percent of its intermediate and outcome measures.
Management Issues The data used for this
performance goal are qualitative. These data are accurate and reliable and are
collected as part of OASP's regular management processes. In accordance with
the FY 2000 Treasury and General Government Appropriations Act, the Office of
Management and Budget (OMB) publishes an annual Report to Congress on the Costs
and Benefits of Federal Regulations. For the last several years, the reports
have included lists of regulations nominated by the public for reform. DOL
obtained public input on how to prioritize its regulatory initiatives in
response to OMB's solicitation for nominations for regulatory reform. DOL has
considered the public's nominations and has identified those items upon which
it will act. Examples of nominated regulations in the 2005 report on the
manufacturing sector include ESA's Family and Medical Leave Act regulations and
OSHA's Flammable Liquids standard. DOL has completed action on one nomination
(Permanent Labor Certification) and has established plans and schedules for
taking action on the remaining nominations. The OMB report includes each
agency's response to the nominations and the Assistant Secretary for Policy
testified before House subcommittees twice during FY 2005 on the Department's
progress in responding to the nominations and action plans.
34This target did
not come into play, as its measurement was contingent upon passage of
Association Health Plan legislation, which did not occur. 35The
costs of achieving DOL's results in maximizing regulatory flexibility are
distributed throughout the department's regulatory agencies, as it is part of
their costs of operations.
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