Enhance Opportunities for America's Workforce
A strong
national economy depends, in part, on preparing workers to be qualified job
candidates possessing skills that are relevant to the needs of today's employers.
In addressing this challenge, the Department must work with a wide spectrum
of job seekers, including those with special needs such as the disadvantaged,
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 dynamics of the changing workplace. New technologies,
increased competition, and changing labor markets have prompted employers
to downsize, change employment patterns, and seek alternative labor sources
such as qualified foreign workers.
While employers and workers bear ultimate responsibility for adapting to
these challenges, 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 twelve performance
goals (see table below). In FY 2004, the Department made further progress
in positively impacting employment outcomes for Americans despite
the challenge of a persistently sluggish economy and its disproportionate
effect on DOL target populations. Although just half of the performance goals
were achieved, most targets were reached and all programs documented improved
results.
Outcome Goal 1.1 − Increase
Employment, Earnings, and Assistance
6 performance goals achieved & 2 not achieved
|
WIA Adult (1.1A) achieved |
Employment, retention, and earnings improved. |
Employment Service (1.1B) achieved |
All five targets were reached, including entry, retention, job listings
and job searches. |
Apprenticeship (1.1C) achieved |
Targets for new apprentices and new programs were both reached. |
Disability Employment Policy (1.1D) achieved |
People served and the entered employment rate exceeded targets;
baselines were established for retention rate and effective practices
identified. |
Veterans' public labor exchange (1.1E) achieved |
Both employment and retention rate targets were reached. |
Homeless veterans' program (1.1F) achieved |
The single indicator target (entered employment rate) was reached. |
Dislocated workers (1.1F) not achieved |
Employment and retention targets were both reached, but the earnings
replacement target was not. |
Trade Adjustment Assistance (1.1G) not achieved |
The retention target was reached. Entered employment and earnings
replacement targets were not reached. |
Outcome Goal 1.2 Increase
the Number of Youth Making A Successful Transition to Work
1
performance goal achieved & 2
not achieved
|
WIA Youth (1.2A) achieved |
Diploma attainment for younger youth and entry to employment and
retention for older youth all increased substantially. |
Job Corps (1.2B) not achieved |
Targets for diplomas and average hourly wages were reached, while
retention fell short. |
Youth Opportunity Grants (1.2C) not achieved |
Diploma attainment and entry to employment saw healthy gains despite
failing to reach targets but employment retention declined significantly. |
Outcome Goal
1.3 Improve
the Effectiveness of Information and Analysis On The U.S. Economy
1 performance goal not achieved
|
Bureau of Labor Statistics (1.3A) not achieved |
Targets were reached or substantially reached for seven of the eight
performance indicators. |
The following charts illustrate DOL's strategic goal net costs in
FY 2004, with A Prepared Workforce shares set apart. The first allocates
total Departmental costs of $56.676 billion; the second allocates an adjusted
net cost of $11.102 billion that excludes major non-discretionary items
associated with Strategic Goal 2.7 Net costs of this goal in FY 2003 were
$6.923 billion. The increase occurred in large part because of relocation
of the WIA Dislocated Worker and TAA programs to this goal from Goal 2; together,
these two programs cost approximately $2 billion annually.
The outcome goals and programs listed above, along with their results, costs,
and future challenges are discussed in more detail on the following pages.
7The excluded costs are referred to as Income Maintenance unemployment
benefit payments to individuals who are laid off or out of work and seeking
employment ($41.424 billion) plus disability benefit payments to individuals
who suffered injury or illness on the job ($4.150 billion).
America's engine of prosperity
is its skilled workforce. 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
2,000 DOL-funded One-Stop Career Centers which assist communities to match
adults to work and skill enhancement opportunities. This comprehensive
workforce development system also helps businesses meet their ongoing recruitment
and human services needs. For those 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,
largely by providing priority services at all One-Stop Centers pursuant
to the Jobs for Veterans Act of 2002.
The Employment and Training Administration (ETA) and the Veterans' Employment
and Training Service (VETS), with support from the Women's Bureau,
the Office of Faith-Based and Community Initiatives and the Office of Disability
Employment Policy (ODEP), operate a number of programs that provide the information,
assistance, and skill-building opportunities that lead to increased employment
and earnings. In the first column of the table below appear the numbers,
agencies, reporting periods8, goal statements, and achievement for DOL performance
goals associated with this outcome goal. The second column presents a summary
of targets reached, substantially reached, and not reached for the indicators
associated with each performance goal and the most significant result(s)
for this past year.
Goal (Agency) Period
Goal Statement [Achievement] |
Performance Summary |
1.1A (ETA) PY 2003
Increase the employment, retention, and earnings
of individuals registered under the Workforce Investment Act Adult program.
[Achieved] |
The WIA Adult program reached all three targets (employment, retention, and
earnings). Average earnings change improved 12% over PY 2002. |
1.1B (ETA) PY 2003
Improve the outcomes for job seekers and employers
who receive public labor exchange services.
[Achieved] |
All five targets were reached by the Employment Service. Job openings listed
rose by over two million (23%) from PY 2002. |
1.1C (ETA) FY 2004
Strengthen the registered apprenticeship system
to meet the training needs of business and workers in the 21st Century.
[Achieved] |
Both Apprenticeship program targets were reached; new programs in High Growth
Job Training Industries rose 32% to 526. |
1.1D (ODEP) FY 2004
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.
[Achieved] |
ODEP reached all four of its targets. The number of people served nearly
tripled (from 2391 to 6397) and the entered employment rate at pilot
sites rose to 19.2%. Baselines were established for the retention rate
and for effective practices identified. |
1.1E (VETS) PY 2003
Increase the employment and retention rate of
veteran job seekers registering for public labor exchange services.
[Achieved] |
Both targets (employment and retention rates for veterans receiving public
labor exchange services) were reached the latter by a margin
of seven percentage points. |
1.1F (VETS) PY 2003
Veterans enrolled in Homeless Veterans' Reintegration Program (HVRP)
enter employment.
[Achieved] |
The homeless veterans' program's single indicator target (entered employment
rate) was reached, exceeding 60% for the second year in a row. |
1.1F9 (ETA) PY
2003
Increase the employment, retention,
and earnings replacement of individuals registered under the WIA Dislocated
Worker program.
[Not Achieved]
|
Dislocated workers' employment and retention targets were both reached, but
the earnings replacement target was not. |
1.1G (ETA) FY 2004
Increase the employment,
retention, and earnings replacement of workers dislocated in important
part because of trade and who receive trade adjustment assistance benefits.
[Not
Achieved]
|
Trends in entry and retention are positive but earnings are not keeping up.
Only the retention target for Trade Adjustment Assistance was reached.
Entered employment and earnings replacement targets were not reached.
All three trends are still down, with entry and retention only slightly
so but earnings on a steady slide. |
8Those applying to a Program Year (PY) are
reporting on the period from July 1, 2003 to June 30, 2004 due to the
forward funding mechanism of the Workforce Investment Act (WIA) of 1998.
9Listed as Performance Goal 2.3A in DOL FY 2003 Annual Performance Plan
Net Cost of Programs
FY 2004 program costs of $5.4 billion
supported Employment and Training Administration programs to provide employment
and training for adults through formula grants to States, registered apprenticeship,
and employment services; programs for dislocated workers; Veterans' Employment
and Training Service assistance to veterans, including those who are homeless;
Office of Disability Employment Policy efforts to develop, evaluate, and
disseminate strategies to improve employment outcomes for job seekers with
disabilities; Office of Faith Based and Community Initiatives contracting
outreach; and Women's Bureau efforts to increase job opportunities for women.
The $2 billion increase in costs for Outcome Goal 1.1 resulted almost entirely
from moving the Dislocated Worker Program and Trade Adjustment Act performance
goals from Strategic Goal 2 (Outcome Goal 2.3 in the DOL FY 2003 Performance
and Accountability Report) and into Outcome Goal 1.1 in Strategic Goal 1.
Therefore, these costs do not represent an increase in DOL costs but a shift
of costs from one strategic goal to another.
Thanks to a Tennessee Customized
Employment Partnership (TCEP) program funded in part by DOL's
Office of Disability Employment Policy (ODEP), Brandi recently
started work with Community Kids Child Care. She really enjoys
interacting with the children and their families and appreciates
the respect they show her. She also appreciates her higher salary.
When she received her first paycheck, she tearfully told her
Career Specialist "WOW! I think I'll take
my mom out to dinner and give my tithes to my church." Brandi exited
high school at age 22 with a special education diploma and was referred
to TCEP two years later by a Vocational Rehab Counselor who worked
with students transitioning out of high school. At that time, Brandi
was working part-time but unhappy with her job because it featured
very little social interaction. Brandi participated in a self-determination
workshop series at a Career Center. Following the workshop, a Career
Specialist helped Brandi develop an employment plan. As part of
her plan, Brandi participated in National Disability Mentoring Day.
The Career Specialist knew that Brandi enjoyed children and discovered
the teacher's aide opportunity at Community Kids The Career Specialist
also helped her learn how to use mass transit (buses), including
transfers and various routes, to commute to and from work. |
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Photo credit: Valarie Bouchard |
Results Summary
Of the eight performance goals listed, DOL achieved six and did not achieve
two. Overall, these programs reached targets for placing participants in
the right jobs. However, due to continued challenging economic conditions,
improvement of earnings was once again elusive for many of our programs.
Performance for most 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 another important indicator but until very recently, such data were not
collected by all grantees, nor were the measures uniform. The charts below
plot, for each program that tracks employment and retention rates, the result
for the previous year (if available), the target for the reporting period
and its actual (or estimated) 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. But year-on-year entry rates did not change significantly;
in fact, they were unchanged for three of the five programs with data,
increased slightly for one and declined slightly for another. This lack
of progress was not entirely surprising; given the slow economic recovery,
several targets were below prior year actual levels. The trend in retention
rates is more positive. For the three programs with prior year data, one
held steady, another increased slightly and a third went up by several
percentage points. This, too, is consistent with what we know about the economic
environment. Workers tend to hold on to positions when growth is less
robust. Strategies that made positive contributions were: enhanced use of
technology to provide universal access and target job search and training;
further integration of the workforce development system via co-enrollment;
expanded outreach to businesses (especially in high growth industries); and
increased use of competitive grant processes.
Future Challenges
One lesson from the first four years of
WIA is that separate funding streams for services can have a negative impact
on program performance due to duplication of the services and additional
administrative support. The President proposed to consolidate funding streams
for adult, dislocated worker, labor exchange and youth services when WIA
is reauthorized. DOL will further implement its demand-driven strategy of
identifying employers' needs and using that information to identify skilled
workers and to develop suitable training programs. This includes expanded
outreach to employers through the Business Relations Group (BRG), which encourages
high-growth industries to list jobs with the one-stop delivery system. In
addition, the Department is attempting to leverage its resources wherever
possible by taking advantage of other workforce investment system services
and focusing DOL efforts on core employment and training services. Another
effort aims at providing an integrated service system for trade workers;
alignment of Federal and State processes will enhance program results.
Management challenges include fully implementing the Jobs for Veterans Act
of 2002, which calls for consideration and accommodation in integrating services
for veterans at the State and local levels. An older challenge is data availability
and timeliness, which received attention by the Government Accountability
Office (GAO) in its June 2004 report States and Local
Areas Have Developed Strategies to Assess Performance, but Labor Could Do
More to Help (see Study
9 in Appendix 2). Similarly, the Department's Office of Inspector General
has questioned whether data reported by States for WIA performance were accurate
and supportable. In response, DOL developed a data validation methodology,
and provided handbooks, user guides, and software for all State workforce
agencies. States were required to validate their PY 2003 WIA performance
data reports using this methodology.
The Trade Adjustment Assistance (TAA) program has struggled with performance
issues for several years, but is taking remedial action. In response to recommendations
from the Program Assessment Rating Tool (PART) reviews in recent years, new
agreements between the Secretary of Labor and the States' Governors
will include performance expectations to encourage better results. Additionally,
TAA will adopt the common measures for Federal employment and job training
programs, with implementation complete by late FY 2005 or early FY 2006.
Use of common measures will align Trade Act program measures with those for
the WIA Dislocated Worker program and promote the goals of co-enrollment
and coordination between the two programs. Also, DOL is conducting a five-year
impact evaluation of the TAA program (final report in FY 2010). Recommendations
will be used to improve performance, to assess implementation of the Trade
Reform Act and to inform the TAA reauthorization process.
Increase the employment,
retention, and earnings of individuals registered under the Workforce Investment
Act Adult program.
Craig has good
reason to be a big believer in the public workforce investment system.
In 2002, shortly after learning of his infant daughter's serious
illness, Craig received the difficult news that he would be losing
his job. The months ahead proved strenuous, as his family of four
fought to meet their most basic needs. After a futile job hunt,
Craig learned about Job Training for Beaver County, Inc. (JTBC)
at the Beaver County CareerLink of Pennsylvania. He was able to
take courses in A+ and Network+ Computer Training and received
a graduating certificate in August 2002. His case manager referred
him to the Job Search Training Program (JSTP) sponsored by JTBC.
JTBC staff helped build Craig's interviewing skills and gave
him the confidence to land a computer Network Administrator
job with Challenges: Options in Aging a
Catholic Charities program operated through the Diocese of Pittsburgh.
Currently, Craig is the troubleshooter for a six county area.
With the training he received from JTBC, he has been able to
go from a minimum wage job with no future to a job that gives
him a stable career ladder and yearly wage increases. Craig
and his family are grateful to the Job Training for Beaver County,
Inc. and now believe the sky is the limit!
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Photo credit: Jarod McDowell |
Indicators
71 percent will be employed in the first quarter after program
exit;
82 percent of those employed in the first quarter after program exit will
be employed in the third quarter after program exit; and
The average earnings change will be $3,100 for those who are employed in
the first quarter after program exit and are still employed in the third
quarter after program exit.
Program Perspective
The Workforce Investment Act (WIA) Adult program is designed to help adult
participants acquire the skills and jobs that they need to compete in a global
economy. Funds are provided by formula to states and local communities allowing
them to operate statewide networks of One-Stop Career Centers, which provide
core, intensive, training, and supportive services to workers and employers.
DOL uses three indicators to evaluate the success and effectiveness of WIA
employment and training services for adults: entered employment, retention
and earnings change. A high entered employment rate indicates that participants
have improved financial security. A high retention rate indicates stability
of participants' new positions. Higher earnings reflect effective assistance,
especially of training services.
National labor market conditions strongly influence the WIA Adult program
outcomes. In periods of economic expansion, as experienced in the late 1990s,
outcomes met or exceeded targets. In recent years, as the economy began to
recover from the recession of 2001, further improvement in employment and
retention rates and earnings change has been more difficult. Despite this
challenge, DOL continued to improve its integrated one-stop delivery system,
thereby allowing the program to raise standards for performance beyond FY
2000 baselines. Over the past four years, targets for entered employment
and retention increased a total of six and seven percentage points, respectively.
The earnings change target has been adjusted to more accurately reflect the
current economic operating context.
Results, Analysis and Future Plans
Performance Goal 1.1A (ETA) was achieved.
- 74 percent were employed in the
first quarter after program exit.
- 85 percent were employed in the third
quarter after program exit.
- $3,260 was the increased average earnings
for those employed in the third quarter after program exit.
The entered employment rate of 74 percent and the employment retention rate
of 85 percent exceeded the targets by three percentage points, respectively.
The earnings change of $3,260 exceeded the target by $160. As illustrated
in the charts, conditions are generally 80% improving. The entered employment
and retention outcomes have remained above the targets, while the outcomes
for earnings increase rose significantly from $2,900 in PY 2002 to
$3,260 in PY 2003.
The demand for goods and services over the past year, as indicated
by the major economic indicators, has a positive effect on the people
served by the Adult program. The drop in the unemployment rate from 6.3
percent last year (CY 2003) to 5.6 percent gave a boost to the program outcome
and partially accounts for the gains in earnings above the target.
To continuously
improve the outcomes of WIA Program Year participants, the Department
is producing new tools, creating incentives, and simplifying the coordinating
process. Key strategies include:
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Strengthening business relationships to assure demand-driven
services and to better identify and fill jobs in growth occupations. The intent is to
focus the workforce investment system on the President's High Growth Job
Training Initiative. The purpose of which is to serve America's growing
industries and to match workers with jobs in demand.
Assuring universal access to the
workforce Program Year investment system with emphasis on targeted outreach.
DOL continues to provide incentives for state and local program operators
to increase the number of qualified referrals to growth occupations from
traditionally underutilized labor pools.
Leveraging WIA resources to increase total resources
available to prepare the workforce. DOL will work with other Federal agencies to set optimum conditions
allowing for co-enrollment in programs without creating negative consequences
for performance levels.
Management Issues
In response to recent concerns raised by the Office
of Inspector General regarding whether data reported by States for WIA performance
were accurate and supportable, DOL developed a data validation methodology,
and provided handbooks, user guides, and software for all State workforce
agencies. States were required to validate their PY 2003 WIA performance
data using this methodology.
One lesson from the first four years of WIA is that separate funding streams
for services can have a negative impact on program performance because of
the duplication of the services and additional money spent on administrative
support. The Department proposes to address this barrier by consolidating
these funding streams when WIA is reauthorized.
The Government Accountability Office (GAO) released a report on WIA in June
2004: States and Local Areas Have Developed Strategies
to Assess Performance, but Labor Could Do More to Help (Study 9 in Appendix
2). The report examined
data availability and timeliness issues. ETA also contracted with an independent
research team to conduct an evaluation of the Workforce Investment Act of
1998. The study, The Workforce Investment Act in Eight
States: State Case Studies from a Field Network Evaluation (Study 21 in Appendix 2), examined
national goals and the roles of Federal, State, and local partners in implementing
the law in eight states. Another independent study, Creating
Partnerships for Workforce Investment: How Services are Provided Under WIA (Study 20 in
Appendix 2), presents findings from case studies of sixteen local boards
across eight states that may help other local boards in developing local
systems.
Improve the outcomes for job seekers
and employers who receive public labor exchange services.
Indicators
58 percent of job seekers who register with the public labor exchange
will enter employment with a new employer by the end of the second quarter
following registration;
72 percent of job seekers will continue to be employed two quarters after
initial entry to employment with a new employer;
The number of job openings listed with the public labor exchange (with State
workforce agencies and America's Job Bank (AJB) will increase 1% over
PY 2002, as adjusted for economic fluctuation. PY 2002 result was 10.2 million
(6.1 million listed with State workforce agencies and 4.1 million listed
with AJB);
The number of job searches conducted by job seekers from America's
Job Bank will be collected to determine a baseline for setting future performance
targets; and
The number of resume searches conducted by employers from America's
Job Bank will be collected to determine a baseline for setting future performance
targets.
Program Perspective
The purpose of the public labor exchange is to match
labor market demand with supply by providing businesses that have employment
openings with appropriate job seekers to fill their vacancies. As part of
this process, the public labor exchange system receives and publishes job
openings, either through businesses posting their openings with State workforce
agencies, or through America's Job Bank, a national Internet site that provides
another access point to the public labor exchange system.
The public labor exchange system's effectiveness is measured by the
success of job seeker customers in finding and retaining employment. The
performance of the public labor exchange is largely a function of the labor
market the number and quality of jobs and workers available. For
example, during Program Year 2003 (July 2003 to June 2004), the nation's
unemployment rate dropped from 6.2 percent to 5.6 percent. In this period,
ETA saw an increase in the number of job openings posted with State workforce
agencies and America's Job Bank, in particular in the information,
professional and transportation industries. Second, ETA encouraged States
to register job seekers that receive automated, self-directed and/or staff-assisted
services. Job seekers using self-service tools have been shown to have a
positive impact on the entered employment rate, since they are generally
more job ready than other (traditional) customers of the public labor exchange.
Electronic tools are changing the way the public workforce system does business
by making important employment services just a "click" away.
The Employ Kentucky Operating System (EKOS), a new electronic self-registration
system for employers and job seekers, is helping match qualified job seekers
to employers' needs. Employers can register jobs and search for qualified
applicants using the system's user-friendly features while job seekers
receive phone calls and e-mails alerting them to job openings that fit their
occupation criteria. Currently, there are over 500,000 job titles listed
in the system. Employers who place job orders in EKOS have exposure to over
200,000 registered applicants. The goal remains simple: Help American workers
with the right skills find the right jobs.
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Photo credit: Corlene Schnitzen and Darnell Nunnery |
Results, Analysis and Future Plans
Performance Goal 1.1B (ETA) was achieved;
all indicator targets were reached.
- 61
percent of job seekers registered with the public labor exchange entered
employment with a new employer by the end of the second quarter following
registration.
- 80 percent of the job seekers that entered employment
continued to be employed two quarters after initial entry to employment
with a new employer.
- 6.6 million job openings were listed with
the State workforce agencies and 5.9 million were listed with America's
Job Bank for a total of 12.5 million openings in PY 2003.
- A baseline
of 169 million job searches conducted by job seekers on America's Job
Bank was established in PY 2003 and will be used to set future performance
targets.
- A
baseline of 8 million resume searches conducted by employers on America's
Job Bank was established in PY 2003 and will be used to determine
a baseline for setting future performance targets.
The reports submitted by the States for the quarter ending June 30, 2004
served as the first set of reports reflecting a complete program year
(PY 2002) of entered employment outcome data on job seekers registered
with the public labor exchange. These reports also contained two quarters
of employment retention data on a subset of PY 2002 labor exchange registrants
for whom retention outcomes using wage record matches are available. The
number of job openings in PY 2003 represents a roughly 22.5 percent increase
over the PY 2002 level. The entered employment rate and the retention rate
together function as true indicators of the labor exchange's success. The
entered employment rate points to the ability of the workforce system to
meet the employment needs of workers, the majority of whom are unemployed,
in an efficient and cost effective manner. The retention rate outcome shows
registrants are being placed in jobs that match employers' needs and the
individuals' interests. Among strategies to continually improve performance,
DOL has aggressively expanded outreach efforts to employers through the
Business Relations Group (BRG) which has worked to partner high-growth industries
to list jobs with the one-stop delivery system. This dialogue is helping
to match willing jobseekers with willing employers.
In PY 2004, the Employment Service will actively participate in DOL efforts
to research statistical models for goal setting purposes and implement a
pilot with the Veterans Employment and Training Service to move toward an
earnings gain measure for the public labor exchange.
Management Issues
The Employment Service (ES) is a participant in ETA's
data validation initiative which ensures the reliability of performance
data submitted to ETA from state partners. A significant number of states
are using the ES Report Validation Software and/or the Data Analysis and
Reporting Tool (DART) software, both of which have been validated as accurate
by ETA. In addition, a data warehousing project was recently completed
at the America's Job Bank Service Center against which queries can now
be run to provide more accurate counts of the number of job openings received
and job and resume searches conducted on America's Job Bank.
The primary management issue facing the Employment Service is accomplishing
closer integration of the program with the Workforce Investment Act (WIA)
Adult and Dislocated Worker programs, either through reauthorizing the WIA
and possibly consolidating all adult services into a single funding stream
or through policy guidance and administrative and/or regulatory action. The
implementation of the common measures initiative and its associated single
data collection and reporting system to capture outcomes will also be a major
activity for the Employment Service over the coming year.
Charles had his dreams of becoming a world-class athlete come to fruition
the day he was drafted by the Los Angeles Rams in 1993. Charles had graduated
with a Bachelor of Arts degree from the University of Wisconsin at Madison,
earlier that same year. He continued this dream until an injury ended his
professional football career in 1997. Unwilling to be discouraged, Charles
set out on a new path to further his skills and find new success. In 1999,
Charles registered as an Electrician Apprentice where he has worked his way
up to Journeyperson Electrician this past June 2004. He has had the opportunity
to work on high profile assignments such as the Center for the Arts Project
in Madison, Wisconsin. Though his salary is less than his football playing
days, his current yearly earning is a competitive $52,300. Charles credits
his apprenticeship experience with giving him the skills to remain self-sufficient
and the opportunity for new found job success. According to Charles, football
and apprenticeship are similar. In football, there is a start and finish
process (touchdown). In apprenticeship, you need to keep learning and honing
skills, troubleshoot, and train other apprentices as you pass on the skills.
He has his eyes set on a new prize, Master Electrician!
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Photo credit: Debra J. Schanke and Mary C. Harrington |
Strengthen the registered apprenticeship
system to meet the training needs of business and workers in the 21st Century.
Indicators
Increase the number of new programs registered by OATELS staff
in industries that comprise High Growth Job Training Industries from the
FY 2003 result of 359 to 366; and
Increase the number of new apprentices registered by OATELS staff over the
established baseline from 67,401 to 68,592.
Program Perspective
Registered Apprenticeship combines on-the-job learning
and related technical and theoretical instruction in a skilled occupation.
Industries develop Apprenticeship programs based on the skills and knowledge
that these industries require of their employees. Sponsors voluntarily operate
and cover costs of the programs that are registered with the DOL or a federally
approved State Apprenticeship Council (SAC) or Agency. Registered Apprenticeship
program provides positive returns on investment, as it requires a formal
employer-employee relationship, including provision of incremental wage gains
during the instruction period. At the successful completion of the instructional
training and on-the-job learning, apprentices receive Certificates of Completion
from DOL that are portable and recognized nationally.
The President's High Growth Job Training Initiative (HGJTI) identified
the following as growth industries: aerospace; automotive; biotechnology;
energy; geospatial; health care; high-technology manufacturing; hospitality;
information technology; retail trade; and transportation. DOL seeks to strengthen
the National Registered Apprenticeship System to provide more opportunities
for workers to find jobs requiring recognized credentials. It allows employees
to get the skilled workers that they need to stay competitive and keep the
economy growing.
Results, Analysis and Future Plans
Performance Goal 1.1C (ETA) was achieved.
The number of new apprenticeship programs in industries that comprise the
HGJTI was 526, exceeding the target of 366, and the number of new apprentices
registered by ETA's Office of Apprenticeship Training, Employer and Labor
Services (OATELS) staff was 69,597, compared to its target of 68,592 apprentices.
OATELS has promoted, marketed, and provided technical assistance to new
and existing sponsors to develop, register, and maintain apprenticeship programs
and apprentices, and provided technical assistance to SAC staff. Consultative
sales techniques have been instrumental in the program's success. Since
the initial Consultative/Solutions Sales Techniques training began in June
2003, the number of programs and apprentices in new and emerging High Growth
Jobs Training Initiative (HGJTI) industries has grown significantly. Activities
in HGJTI are thriving throughout the country. Employers in new and emerging
industries are becoming increasingly interested in using the apprenticeship
concept to develop professional workers.
DOL mounted several pilot programs to improve OATELS. President Bush showcased
the National Information Technology Apprenticeship System project at a community
college in Arizona. This pilot is designed to improve the productivity of
American information technology (IT) workers, lower the cost of hiring and
training for American employers and provide a structured approach to IT career
development throughout the national workforce investment system. Another
pilot, the National Institute for Metalworking Skills (NIMS), has designed
the National Competency Based Apprenticeship System. This new system of training
and credentialing fundamentally changes and dramatically improves the way
that skilled workers are trained in the American metalworking industry. Key
to the new system is the integration of standards-based credentialing assessments
linked with relevant on-the-job-training. This provides maximum flexibility
for apprentices and employers alike, increases precision and productivity
through the introduction of technology as part of the skill standards, and
opens career ladders through the metalworking industry.
Management Issues
During FY 2004, modifications to the Registered Apprenticeship
Information System (RAIS) were made. RAIS provides extensive data regarding
the Apprenticeship system itself, participants, programs, and demographics.
Some mandatory fields for reporting were instituted as well as restrictions
on reported values. These changes have made RAIS a more reliable database
that is easier to use for detailed analysis. As part of the OATELS performance
management process, each region was required to conduct an audit of 80 percent
of all existing Apprenticeship programs to insure that all data and fields
were complete and correct. Preliminary reports from the regions indicate
that over 70 percent of the RAIS data has been reviewed. While the Apprenticeship
program has made significant progress in improving data quality over the
past years, there is still a need to continue to improve data quality through
ongoing data validation. Efforts continue to obtain more participation by
SAC States to make RAIS a reliable database of the National Registered Apprenticeship
System.
Expansion of new Registered Apprenticeship programs is dependent upon economic
conditions. If certain industries are downsizing their workforce, they are
less likely to institute new Registered Apprentice programs. Conversely,
as success in the new and emerging high growth jobs and industries demonstrates,
there are opportunities to expand the Apprenticeship programs.
FY 2005 will be a transitional year for evaluating performance in the Apprenticeship
program. This will be the first year that the program will be using measures
of employment, retention, wage gain, and efficiency. However, due to data
limitations, the program will not be able to calculate outcomes based on
the Common Measures methodology. Rather, the program will have proxy measures
that resemble the Common Measures. This first step will allow the program
to collect valuable data that will help inform the establishment of baselines.
Actions to resolve data issues will continue to be pursued in FY 2006 to
enable ETA to use the Common Measures for the Apprenticeship program.
Nineteen year-old Martin came to the Tennessee Career Center to find a job.
After meeting with Martin and learning about his experience and interests,
a customized employment Career Specialist provided Martin with more intensive
assistance. Martin had no prior work experience, but he cared for a miniature
horse and pygmy goats at home and was very interested in working with animals.
Martin and the Career Specialist determined that Martin would benefit from
having an opportunity to observe work with animals. The Career Specialist
placed Martin at a local farm where he assisted with the care and training
of horses, but he soon discovered that he was better suited to working with
small animals. The Career Specialist identified the John Sevier Animal Clinic,
which hires kennel workers who aspire to become veterinary technicians, as
having a need for part-time assistance. The supervisor arranged an "observation
day" for Martin at the clinic. Martin greatly enjoyed his observation
and soon started work there. Martin is successfully completing his kennel
worker duties and performing some veterinary technician duties.
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Photo credit: Tennessee Customized Employment Partnership |
Keith, an amiable young man with Cerebral Palsy, was one of the first referrals
to ODEP's Customized Employment project in Hempstead, NY. The search
for competitive employment has been a long road. Keith is a wheelchair user,
has limited use of his hands, and his speech can be difficult to understand.
Through grant funding, we were able to assess his skills, interests and assistive
technology needs. Keith revealed during a planning meeting that he had very
limited work experience and was willing to explore any available opportunities.
With all this in mind, the Placement Specialist developed an individualized
employment plan and negotiated a clerical job tryout at a local church. DOL
staff had an idea of what he was capable of doing, however on the first day
he accomplished things we had not even considered. His job tasks include
photocopying documents and stuffing envelopes. With help from an Occupational
Therapist at Abilities' Kornreich Technology Center, Staff designed
a device to hold envelopes upright and to facilitate the insertion of papers
with greater ease. Keith is doing well with the job try-out, and the employer
has indicated that they may be interested in hiring him on a part-time basis.
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Photo credit: Abilities, Inc. |
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.
Indicators
Increase by 5% the number of people with disabilities served through
ODEP projects.
Increase by 5% the entered employment rate at pilot sites.
Increase by 10% the 3-month and 6-month retention rates for people with
disabilities served by the pilots; and
Increase by 10% effective practices identified through pilot projects and
other research-related initiatives.
Program Perspective
The Office of Disability Employment Policy (ODEP) provides
national leadership on disability employment policy to the Department of
Labor (DOL) and other Federal agencies. ODEP develops and influences disability
employment policy through reviewing legislation and policies; collaborating
on inter- and intra-agency Federal efforts; partnerships with State, local,
and non-governmental stakeholders; designing and conducting research studies
and pilot projects; and promoting policies, practices and initiatives that
increase the employment of people with disabilities. ODEP implements the
employment-related goals of President Bush's New Freedom Initiative. This
initiative expands research in and access to assistive and universally designed
technologies, further integrates Americans with disabilities into the workforce
and helps remove barriers to participation in community life.
According to the U.S. Census Bureau, among the non-institutionalized population
aged 16-64 in the United States, 33 million people have disabilities.
Of this group, 18.6 million people with disabilities, or 56 percent, are
employed. According to the Department of Labor's Bureau of Labor Statistics
(BLS), projections for employment between 2002 and 2012 show an increase
of 21.3 million jobs, about 600,000 more jobs than were added in the previous
decade. This presents a unique opportunity to promote disability employment
policies and practices that will most effectively reach into the untapped
pool of people with disabilities.
Results, Analysis and Future Plans
ODEP achieved its goal. In FY 2004 ODEP
adopted a new goal and four new indicators that measure increases in the
number served, employed, retained (at three and at six months), and in
the number of effective practices identified through ODEP pilot projects.
ODEP was able to use data from pilot projects implemented in FY 2003 to
compile results for indicators one and two (number served and number employed).
Based on available data through the end of the 3rd quarter, performance
has surpassed expectations. For indicators three and four, ODEP established
baselines.
In FY 2004, a total of more than 6,000 people were served through the various
pilot projects administered by ODEP. More than 900 participants (19.2 percent)
entered employment through the pilot sites. Retention baselines were established
at 12.3 percent at three months and 6.9 percent at six months. The baseline
for effective practices is ten. Based on results of rigorous evaluations
and periodic employment outcome analysis, ODEP will continue to refine, modify
and adjust the figures for these indicators
In FY 2005 the Department will continue evaluating workforce development
system practices through pilot and research projects and programs. These
activities develop effective practices and policies for dissemination to
the workforce development system and partners providing employment, training,
and employment support services to adults and youth with disabilities.
Management Issues
ODEP's pilot projects collect data to determine the effectiveness
of disability employment strategies evaluated in ODEP pilot projects for
dissemination throughout the workforce development system. Data are collected
and assessed internally and externally. ODEP requires quarterly project
reports, visits project sites, and holds regular conference calls with
project staff. ODEP also contracts with an external evaluator to independently
verify data collected in pilot project reports, review project documents
and activities, and visit project sites.
ODEP's multi-year external evaluation of pilot projects assess the
nature and extent of systems change to determine the effectiveness of strategies
employed for expanding and strengthening the capacity of the workforce development
system to respond to the needs of people with disabilities. Findings thus
far include: (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.
ODEP's multi-year case study examines strategies implemented to serve
the employment needs of persons with disabilities and the supports needed
to provide efficient and universal access to the services of the workforce
development system at 12 WIA-assisted locations (six adult and six youth).
Findings thus far include the needs: (1) to enhance physical accessibility
to service centers; (2) to increase staff familiarity with assistive technology;
(3) to integrate mandated and non-mandated disability partners into the
overall services of the One-Stop Centers such as Vocational Rehabilitation;
(4) to train and educate staff to work with individuals with a disability;
(5) to centralize data banks and standardize data collection techniques;
and (6) for cross-agency training.
10
Increase the employment and retention rate of veteran job seekers registering
for public labor exchange services
Indicators
58% of veteran job seekers will be employed in the first or second
quarter following registration; and
72% of veteran job seekers will continue to be employed two quarters after
initial entry into employment with a new employer.
Program Perspective
VETS delivers employment services to veterans through
grants to State Workforce Agencies (SWAs), so that unemployed and underemployed
veterans receive the assistance needed to obtain suitable employment. These
grants fund positions for Disabled Veterans' Outreach Program (DVOP) specialists
and Local Veterans' Employment Representatives (LVER), who are assigned to
public labor exchange offices nationwide. The DVOP and LVER staff cadre focuses
the resources of the public labor exchange on veterans' specific employment
needs.
VETS currently measures entry to employment and retention in employment
as fundamental outcomes of public labor exchange services. Because results
through June 30, 2004 represent the first year's outcomes under a new
reporting system, comparable historical results are not available. A key
strength of the new reporting system is that it links delivery of services
with the earnings of the veterans served, as documented in Unemployment Insurance
(UI) wage records.
Donald was wounded in combat during Operation Desert Shield in 1990. His
wounds resulted in the loss of an arm below the elbow and the loss of a leg
below the knee. Keeping a positive attitude throughout this ordeal, Donald
was determined that his disabilities would not keep him from leading a productive
life. In 1992, he was honorably discharged from the Army and received a 100%
service connected disability rating from the US Department of Veterans Affairs.
Donald started his own excavating and snow plowing business and wanted to
expand. He contacted the Erie CareerLink because his disability precluded
him from obtaining the commercial driver's license he needed to expand
his business. The veterans staff helped him with enrollment and funding assistance
for a training program that led to acquisition of the license. Because of
his persistence and dedication, the Erie CareerLink nominated Donald for
the Disabled Veteran of the Year award.
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Photo credit: VETS |
Results, Analysis and Future Plans
Performance Goal 1.1E (VETS) was achieved.
Targets for Entered Employment Rate and Employment Retention were reached,
as 58 percent of veteran job seekers were employed in the first or second
quarter following registration and 79 percent of veteran job seekers continue
to be employed two quarters after initial entry into employment with a new
employer.
The reports submitted for the quarter ending June 30, 2004 provide the first
entered employment outcomes for veteran job seekers reported over a full
Program Year (PY), based upon the new UI wage record reporting system. These
reports also provide the first employment retention outcomes for veterans
using the UI reporting system, including data from the first two quarters
of PY 2003. These first outcomes represent the fulfillment of a long-term
process of development, initial implementation, and transition of the new
reporting system. During that same time period, in partnership with ETA,
VETS has been developing and implementing new performance measures. VETS
conducted pilot data collection initiatives applying the new reporting procedures
to Program Years 1999, 2000, and 2001 in order to establish baseline measures
under the new system. For PY 2002-2003 VETS field staff and staff affiliated
with State Workforce Agencies in every State negotiated performance measures
for veterans served by the public labor exchange. Extensive coordination
with program stakeholders likely played a key role in the success of the
public labor exchange in reaching this first set of targeted outcomes for
veterans under the new reporting and measurement conditions.
Entry to employment for veterans served by the public labor exchange was
applied as an indicator under the prior system of measurement and reporting.
However, PY 2003 marked the first time retention in employment was applied.
The successful outcomes attained during this first year of experience with
this target provide a basis for VETS to adjust future performance targets.
For PY 2004, an Entered Employment Rate target for disabled veterans has
been added. In addition to these enhancements to VETS' performance
measurement systems, which are scheduled for implementation during PY 2004
and PY 2005, VETS and ETA will collaborate to establish baseline values for
measures of Earnings Gain and Efficiency, in accord with the Common Measures.
10This goal appeared in the DOL FY 2003 Annual Performance Plan
as a fiscal year goal. Due to the data system transition described in this
narrative, it was converted to a Program Year 2003 goal. Accordingly, results
presented are for the period July 1, 2003 to June 30, 2004.
Management Issues
Limitations of the new performance data reporting system
include: a) not all types of earnings are captured by UI wage records;
b) the types of earnings captured by UI wage records vary across States;
and, c) the linkage documented between the receipt of public labor exchange
services and the receipt of earnings captured by UI wage records cannot
be assumed to establish a causal connection between these two events.
Early in FY 2004, Battelle Memorial Institute completed a long-term policy
research project examining the needs of unemployed veterans, and the extent
to which those needs are met by the public labor exchange (Study 25 in Appendix
2). The study indicated that traditional labor exchange services, such as
job search and referral, were associated with the most favorable outcomes
for young, recently separated veterans. Case management, which is an intensive
service typically provided by VETS funded staff, was associated with the
most favorable outcomes for older, recently separated veterans. An implication
of these results is that further exploration is called for to identify a
service delivery approach that would improve outcomes for veterans who are
not recently separated.
With the advent of UI wage record based reporting, lag time in reporting
outcomes has become a major concern. A study conducted during FY 2004 by
Bradson Corporation identified two potential supplementary measurement strategies
(Study 26 in Appendix 2). The first involves an application of unemployment
data to identify those States in which veteran unemployment is high relative
to non-veteran unemployment. The second calls for enlisting selected States
to apply Report of Hires data to provide an early indication of expected
outcomes based on subsequent application of UI wage records. VETS is confirming
the technical feasibility of the first strategy, and the operational feasibility
of the second strategy.
The Jobs for Veterans Act, passed late in 2002, established a new statutory
requirement that veterans be accorded priority of service in all Department
of Labor training programs. The impact of this new provision falls primarily
upon workforce development programs funded by ETA. In response to the new
mandate, DOL funded a study, conducted by the Urban Institute, to identify
strategies that could be applied to implement this requirement (Study 27
in Appendix 2). The study examined procedures applied in One-Stop Career
Centers, as well as options offered by electronic resources, and recommended
a) establishment of performance goals for priority of service; b) refinements
in office operations; and c) enhancements to electronic resources.
An urgent financial management issue involving the DVOP/LVER grants VETS' contribution
to the public labor exchange has arisen in connection with recent
legislative changes that expanded permissible expenses. Open questions include
expense categories to be applied to direct and indirect charges and the acceptable
ratio of indirect to direct charges. VETS has launched an initiative to resolve
this issue in consultation with representatives of the SWAs.
11
Veterans enrolled in Homeless Veterans' Reintegration Program (HVRP)
enter employment
Indicator
At least 54.5 percent of veterans enrolled in Homeless Veteran
Reintegration Project grants enter employment.
Program Perspective
The Homeless Veterans' Reintegration Program focuses
on the provision of employment and training services to homeless veterans
to enable their successful reintegration into the workforce. This program
also funds provision of or referral to related support services such as medical
treatment, temporary and/or permanent housing, counseling, and transportation.
Organizations receiving grants under this program typically provide job search,
counseling, placement assistance, remedial education, classroom training,
on-the-job training, and supportive services such as transportation and transitional
housing. These services are often provided in concert with HUD, VA, HHS,
and other service providers. Grantees are also strongly encouraged to collaborate
with rehabilitation agencies for other services such as drug and alcohol
counseling.
Entry to employment has been emphasized as the most appropriate outcome
indicator, and for the last two years, the entry rate has averaged at or
above 60 percent. Recently, however, VETS has communicated clearly to all
HVRP grantees that retention in employment is the most significant outcome
indicator. We intend to continue this emphasis on retention for the foreseeable
future, since stabilizing the earning capacity is a prerequisite to stabilizing
the living situation of homeless veterans.
Results, Analysis and Future Plans
Performance Goal 1.1F (VETS) was achieved.
The target rate of 54.5 percent entry to employment was exceeded, as 61 percent
of veterans enrolled in Homeless Veterans' Reintegration Program grants entered
employment. In PY 2003, 13,094 homeless veterans enrolled as HVRP participants
and 8,027 of these participants entered employment.
The high rate of success achieved by HVRP grantees in serving this subset
of the veteran population, which typically is characterized as having multiple
barriers to employment, is attributable, in part, to the program design established
by VETS. That design calls for a network of community-based organizations,
including faith-based grantees, which focus their limited fiscal resources
on the delivery of customized employment services. These grantees are to
achieve integration of the required services by closely coordinating their
efforts with other local providers in order to provide participants with
a full range of specialized services.
HVRP grants are awarded on a competitive basis and are limited to a three-year
performance period. Award of annual funding increments for the second and
third (option) years within the three-year cycle is based upon satisfactory
achievement of the performance goals set forth in the grant application.
The combination of limited grant duration and ongoing competitive awards
lead to greater effectiveness.
For PY 2004, we will measure retention in employment, with a target of 55
percent of HVRP participants maintaining employment six months following
entry to employment. To maintain the entry to employment rate accomplishments
while improving employment retention rates, VETS will continue to provide
guidance to the HVRP grantee network, sharing best practice experiences.
11This
goal appeared in the DOL FY 2003 Annual Performance Plan as a fiscal
year goal. Later, it was converted to a Program Year 2003 goal to fund and
measure HVRP grantee performance on a schedule consistent with other DOL
employment and training programs. Accordingly, results presented are for
the period July 1, 2003 to June 30, 2004.
Management Issues
The HVRP grantee network consists predominantly of locally-based
organizations, widely dispersed across the nation, with limited management
resources. The network of VETS staff members who serve as Grant Officer's
Technical Representatives (GOTRs) mirrors this pattern. The HVRP GOTRs
typically are stationed at State Capitals and major cities across the nation.
VETS recently sponsored a conference attended by staff members from all
HVRP grantees, and by VETS staff members serving as GOTRs. It was the consensus
that improved integration of the technical, contractual, and financial
aspects of the management of HVRP grants is a clear need.
The distribution of management responsibility for this program is consistent
with the need expressed by grantee staff and GOTRs. VETS plays a lead role
regarding the Special Provisions; the DOL procurement unit plays a lead role
regarding the General Provisions; and the Department of Health and Human
Services (HHS) plays a lead role regarding financial operations (because
of the program's reliance upon the Payment Management System administered
by HHS. To improve the integration of the requirements and procedures in
this shared management arrangement, VETS intends to apply contractor support
during FY 2005 to prepare two management manuals. One version of the manual
will be oriented to grantee staff and the other version will be oriented
to VETS staff serving as GOTRs. In addition to improving integration, it
is hoped that this initiative also will promote improved consistency in program
operations and closer headquarters-field coordination.
12
Increase the employment, retention, and earnings replacement of individuals
registered under the Workforce Investment Act Dislocated Worker Program.
Indicators
78 percent will be employed in the first quarter after program
exit;
88 percent of those employed in the first quarter after program exit will
be employed in the third quarter after program exit; and
Those who are employed in the first quarter after program exit and are still
employed in the third quarter after program exit will have 93 percent of
their pre-dislocation earnings.
Program Perspective
The Dislocated Worker program aims to quickly reemploy
laid off workers and preferably to enhance their employability and earnings
by increasing occupational skills. The Department allocates 80 percent of
the funds by formula to the States. The Secretary may use the remaining 20
percent for discretionary activities specified in the Workforce Investment
Act (WIA), including assistance to localities that suffer plant closings,
mass layoffs or job losses due to natural disasters. State dislocated worker
funds support One-Stop Career Center Services (as described under Performance
Goal 1.1A) and "Rapid Response" assistance to plan services for employers
and workers who are expecting mass layoffs.
Three 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. Retention rate and
earnings replacement indicators demonstrate the program's effectiveness
at matching and/or enhancing participants' skills and abilities to
maximize their opportunities.
Labor market conditions have a major influence on the Dislocated Worker
program outcomes. During the last few years beginning with the recession
of 2001, improving performance has proven more difficult than in times of
economic boom. Despite external economic forces, DOL has consistently looked
for ways to increase targets while improving program management.
12This
goal appeared in the Department's FY 2003 Annual Performance Plan as
Performance Goal 2.3A. It has been renamed to be consistent with the FY 2004
plan, which moved this program to Outcome Goal 1.1.
Results, Analysis and Future Plans
Performance Goal 1.1F (ETA) was not achieved.
Of those registered under the WIA Dislocated Worker program:
- 82 percent of individuals registered who were
not employed at registration were employed in the first quarter after program
exit.
- 90 percent of those employed in the first quarter after
program exit were employed in the second and in the third quarters after
program exit.
- Of those participants employed in the first quarter after program
exit, average earnings in the third quarter after program exit were 91
percent of pre-dislocation earnings.
The importance of advancing occupational skills in an ever changing economy
is something that Fritz, a former dislocated worker, can attest to. After
graduating with a bachelor's degree in Computer Information Systems, Fritz
thought his career was set in stone until the local economy took a downturn
and he became an out-of-work Information Technology (IT) professional.
Not to be deterred, he visited his local One Stop Career Center at Richard
J. Daley College in Chicago, Illinois and enrolled into the new a 10-week
Advanced Manufacturing/Integrated Systems Technology (AM/IST). Adding
to his technology skill base, Fritz hit the ground running as he was quickly
hired as a Mechanical Technician at Corn Products International, Inc.,
one of the world's largest corn refiners. Making a higher wage than he
originally earned as an IT professional, Fritz concluded that "there are a lot of opportunities out there for someone
with Integrated Systems Technology skills. This is a new type of training
and not many people know about it, but the skills learned during the training
are definitely in high demand." As a lesson learned, Fritz's has decided
to take advantage of his company's tuition reimbursement program as he
continues to exemplify the goal of being equipped with the skills of the
21st century workplace!
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Photo credit: Jim Wenzelman |
Although the indicators for entered employment rate and retention rate exceeded
performance targets by four and
two percentage points, respectively, the earnings replacement rate was two percentage
points below the target.
Even with successes in employment and retention, the continuing decrease
in post-dislocation earnings measure may reflect the broader economic conditions.
First, employers have a more qualified worker pool from which to select,
as there has been an increase in the number of Americans obtaining high
school diplomas Program Year and bachelor's degrees over the past year. Second,
there was an increase in the supply of labor relative to the demand, putting
downward pressure on wages. Third, displaced workers who experience lengthy
periods of unemployment typically become increasingly willing to take jobs
paying less than their previous jobs. In sum, while employment and retention
rates remain fairly steady as dislocated workers more readily accept lower-paying
jobs and stay with them until periods of growth, their post-dislocation
earnings have continued to decline.
During Program Year 2003, DOL held six regional forums focused on providing
an integrated service system for dislocated workers. This is part of the
Department's effort to improve the alignment of federal and state processes
and response times, and to maximize funding allocations to reach more
customers and enhance program results.
To continuously improve the outcomes of dislocated workers, the Department
is producing new tools, creating incentives, and simplifying the coordinating
process. Key strategies include: 1) Strengthening business relationships to
assure demand-driven services and to better identify and fill jobs in
growth occupations; 2) Assuring universal access to the workforce investment
system with emphasis on targeted outreach; and 3) Using non-WIA resources
wherever possible, thereby leveraging WIA resources committed to core
functions necessary to prepare the workforce.
With implementation of the common measures for
employment and training programs and with reauthorized WIA, the workforce
investment system can better integrate the Adult and Dislocated Worker
formula programs and the labor exchange functions under the Wagner-Peyser
Act. Combined with enhanced use of technology that will inform adult customers
about the labor market, job opportunities, and services, this integrated
workforce system will increase efficiencies and performance.
Management Issues
In response to recent concerns raised by the Office of
Inspector General regarding whether data reported by States for WIA performance
were accurate and supportable, DOL developed a validation methodology,
and provided handbooks, user guides, and software for all State workforce
agencies. States were required to validate their PY 2003 WIA performance
data reports using this methodology.
One lesson from the first four years of WIA is that separate funding streams
for services can have a negative impact on program performance because of
duplication of services and redundant administrative cost. The Department
proposes to address this barrier by consolidating these funding streams when
WIA is reauthorized.
The Government Accountability Office (GAO) released a report on WIA in June
2004: States and Local Areas Have Developed Strategies
to Assess Performance, but Labor Could Do More to Help (Study 9 in Appendix
2). The report examined
data availability and timeliness issues. ETA also contracted with an independent
research team to conduct an evaluation of the Workforce Investment Act of
1998. The study, The Workforce Investment Act in Eight
States: State Case Studies from a Field Network Evaluation (Study 21 in Appendix
2), examined
national goals and the roles of Federal, State, and local partners in implementing
the law in eight states. Another independent study, Creating
Partnerships for Workforce Investment: How Services are Provided Under WIA (Study 20 in
Appendix 2), presents findings from case studies of sixteen local boards
across eight states that may help other local boards in developing local
systems.
Increase the employment, retention, and earnings replacement of workers
dislocated in important part because of trade and who receive trade adjustment
assistance benefits.
Indicators
70% of individuals registered who are not employed at registration
will be employed in the first quarter after program exit;
88% of those employed in the first quarter after program exit will be employed
in the second and third quarters after program exit; and
Those who are employed in the third quarter after program exit will earn,
on average, 90% of their pre-separation earnings.
Program Perspective
DOL's Trade Adjustment Assistance (TAA) program provides
reemployment services to workers who lose their jobs due to increased imports
or due to shifts of production to foreign countries. TAA's goal is to return
workers to suitable employment as quickly as possible. The readjustment
services and benefits offered by the program include occupational, on-the-job
and remedial training, job search and relocation assistance, and income support
for eligible workers in training. TAA's success is measured by the
extent to which it serves the individuals to achieve economic self-sufficiency
by quickly securing and maintaining employment with wages that are close
to those earned prior to lay-off. As such, employment, employment retention,
and earnings replacement are appropriate indicators. Targets were selected
by first assessing prior experience, and then projecting reasonable performance
under anticipated labor market conditions. In this way, allowance is made
for the effect of economic forces external to the program.
Results, Analysis and Future Plans
Data for the first three quarters of FY
2004 (ending June 30, 2004) indicate that two of the three indicators were
not reached.13 Thus, the goal was not achieved:
- 63 percent employed in the first quarter after exit;
- 89
percent of those still employed in the third quarter after exit; and
- 72 percent wage replacement for the third quarter after exit.
Performance for the above measures is for individuals served under the trade
program prior to the Trade Act of 2002 amendments. Performance outcomes
for individuals served under the Trade Act of 2002 will not begin to be
reported until the fourth quarter of 2004. Reported outcomes will not
substantially reflect individuals served under these amendments until FY
2006.
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13Performance results for this goal are estimated. The estimating
methodology has been reviewed by the Department of Labor's Office of Inspector
General. The actual performance results for this goal will be published in
the FY 2006 Budget.
The Department is concerned that the
63 percent reported as employed in the first quarter after exit may
not reflect actual outcomes for three reasons:
- States may not be fully utilizing the Wage Record Interchange
System (WRIS), which is used to capture employment information across
state borders;
- States may be capturing entered employment data for the
first quarter after individuals complete training but before they
finish receiving reemployment services under the Workforce Investment
Act (WIA), and therefore, have not yet entered employment;
- States are
not required to use supplemental data to capture individuals who have
entered employment but do not show up in the wage records. Preliminary
results in one state from a related program indicate that the use of
supplemental data resulted in an increase in the entered employment
level by 18 percentage points. The state intends to replicate the supplemental
data process with trade participants.
The Department is issuing a directive to States that will provide guidance
on these issues and Retention has begun preliminary discussions with the
National Dislocated Worker workgroup on methods to follow up with individuals
who are 100% not reported as entering employment.
John had worked at the Segri Great Lakes
Carbon plant in Charlotte, North Carolina until he was laid off on November
16, 2001. His job as steel furnace electrodes inspector, which earned
John $15.03 per hour, was nonexistent anywhere else in the area. "On the day I
was laid off, one door shut and another one opened. The one that was opened
was our petition for Trade Act opportunity." With help from the Trade Act
program, John began training in Medical Lab Technology in May 2002. He was
always prompt with his appointments and worked hard to keep his grades up.
He got a job on May 4, 2004 at Broughton Hospital as a Medical Lab Technician,
earning $16.75 per hour. On May 12, John graduated from a local community
college with a degree in Medical Lab Technology.
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Photo credit: John Lundlam |
The continuing decreased post-dislocation 70% earnings measure may reflect
broader 60% economic conditions. First, employers have a 2001 2002 2003
2004 to Q3 larger qualified worker pool from which to Fiscal Year select,
as there has been an increase in the number of Americans obtaining high
school diplomas and bachelor's degrees over the past Earnings Replacement
year. Second, there was an increase in the supply of labor relative to
the demand, putting downward pressure on wages. Third, displaced workers
who experience lengthy 90% periods of unemployment typically become increasingly
willing to settle for jobs paying 80% less than their previous jobs. In
sum, while employment and retention rates remain fairly steady, dislocated
workers have been more ready to accept lower-paying jobs and stay Fiscal
Year with them until their prospects improve; this has contributed to the
decline in the wage replacement performance measure.
During Program Year 2003, DOL held six regional forums focused on providing
an integrated service system for trade workers. This is part of the Department's
effort to improve the alignment of Federal and State processes and response
times, and to maximize funding allocations to reach more customers and enhance
program results. Currently, DOL is reengineering the process of integrating
three programs- National Emergency Grant (NEG), Trade, and Dislocated Worker-
to ensure more effective and efficient operations and higher performance
outcomes.
Management Issues
The Government Accountability Office (GAO) released a
report on TAA in September 2004: Reforms Have Accelerated
Training Enrollment, but Implementation Challenges Remain (Study 11 in Appendix
2). The GAO raised
two concerns: first, that the deadlines for enrollment in training may not
leave enough time to assess a TAA worker's needs, especially if there is
a large layoff or higher demand for TAA training; and second, the wage insurance
provision that requires the program to serve workers who lack easily transferable
skills yet expects them to find employment within 26 weeks of layoff. ETA
shares GAO's concerns and intends to work closely with states in the coming
months to assess the need for legislative remedies.
The Department continues to improve the accuracy, timeliness, and reliability
of TAA data. In an effort to obtain more current data about the effect of
the program on trade affected workers, DOL has initiated a five-year study
designed to fully evaluate the implementation of the new provisions of the
Trade Reform Act of 2002, as well as the overall effectiveness of the Trade
program using the independent services of Social Policy Research. ETA will
also consider whether concerns in the GAO report can be examined in this
TAA evaluation study. A final study report is expected to be available in
FY 2010. DOL will use recommendations of this five-year study to improve
future performance and to assess success in implementing the provisions of
the Trade Reform Act. The results of this study will also inform the TAA
reauthorization process.
In response to recommendations from the Program Assessment Rating Tool (PART)
review conducted for the FY 2004 budget and updated for the FY 2005 budget,
the TAA program will include performance expectations in the agreements between
the Secretary of Labor and the States' Governors to encourage better
results. Additionally, TAA will adopt the common measures for Federal employment
and job training programs, with implementation complete by late FY 2005 or
early FY 2006. Use of common measures will align Trade Act program measures
with those for the WIA Dislocated Worker program and promote the goals of
co-enrollment and coordination between the two programs.
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 three programs designed specifically to serve youth: the
WIA Youth formula grant program, which provides comprehensive services through
local workforce investment areas; Job Corps, an intensive residential training
and support program; and the Youth Opportunity Grant demonstration program,
which focuses on out-of-school youth in high-poverty communities. 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 GED), 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.
Three performance goals measure DOL's progress in helping youth prepare
for entry to the workforce. All three are administered by the Employment
and Training Administration (ETA) under the Workforce Investment Act of 1998
(WIA). Funding and reporting are on a Program Year basis, e.g., PY 2003 is
July 2003-June 2004.
Performance Summary |
|
Diploma attainment* |
Entry to employment |
Employment retention |
Average hourly wage** |
Retention at 6 months |
WIA Youth (1.2A) PY 2003
Increase entrance and retention of youth
registered under the WIA youth program in education or employment.
[Achieved] |
Result |
63% |
71% |
81% |
NA |
NA |
Target |
52% |
65% |
78% |
NA |
NA |
PY 2002 |
55% |
67% |
80% |
NA |
NA |
Job Corps (1.2B) PY 2003
Increase participation, retention, and
earnings of Job Corps graduates in employment and education.
[Not
Achieved] |
Result |
8003 |
NA |
NA |
$8.95 |
63% |
Target |
7658 |
NA |
NA |
$8.20 |
65% |
PY 2002 |
6381 |
NA |
NA |
$8.03 |
63% |
Youth Opportunity Grants (1.2C)14
Increase
retention of Youth Opportunity Grant participants in education
or employment.
[Not Achieved] |
Result |
51% |
60% |
73% |
NA |
NA |
Target |
52% |
65% |
78% |
NA |
NA |
PY 2002 |
46% |
50% |
78% |
NA |
NA |
*For Job Corps, # students
**In PY 2002, earnings were measured at placement;
in PY 2003, they were measured six months later.
Phyllis is a Clinical Instructor and Director of the School Nurse Program
at the University of Illinois at Chicago (UIC) College of Nursing who volunteered
her time and expertise to educate high school students on public health care
concepts. She spoke at a Women's Bureau Group E-Mentoring in Nursing
(GEM-Nursing) event promoting nursing careers. Co-sponsored by the UIC College
of Nursing, this event is part of a larger web-based project connecting young
adults with mentors who are professionals in the nursing field. Phyllis' lesson
on the "Web of Causation," aided by her web model (pictured),
outlined the complex relationships among environmental, economic, and social
causes contributing to public health. Her high school students developed
a greater appreciation for how nurses contribute to the health of the community.
The GEM-Nursing project includes over 500 registered students and over 150
mentors from 16 different fields.
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Photo credit: UIC Photographer Mark Mershon |
14Due to limited access to State Unemployment Insurance (UI) wage records,
data for the older youth entered employment rate and older youth employment
retention rate could only be obtained from approximately half of the Youth
Opportunity Grantees. The diploma attainment rate, however, includes data
from all grantees.
Net Cost of Programs
FY 2004 program costs of $2.7 billion supported ETA
programs providing employment and training assistance to youth through formula
grants to States, and Job Corps. After three years of costs that trended
upward, FY 2004 saw a $254 million (approximately 10 percent) decline from
FY 2003. Decreased costs in this area resulted largely from the phase-out
of the Youth Opportunity Grant Program (FY 2002: $225 million v. FY 2004:
$0) and reduced funding for WIA Youth Activities (FY 2002: $1.13 billion
v. FY 2004: $995 million).
Text only
Results Summary
One of the three goals was achieved. As indicated in the
table, WIA Youth program participants enjoyed healthy increases in all three
indicators diploma
attainment for younger youth, entry to employment, and retention for older
youth. Job Corps reached its targets for diplomas and average hourly wages
while falling short of its retention target. In its final year, the Youth
Opportunity Grant demonstration project failed to reach any of its three
targets; diploma attainment and entry to employment saw healthy gains
over PY 2002 despite failing to reach targets but employment retention declined
significantly.
Overall, actual PY 2003 performance was better than the goal achievement
count alone would indicate. Results in seven of the nine indicators increased most
of them substantially. The WIA Youth program's success in raising all
three indicator levels is attributed to extensive technical assistance targeting
local performance management issues. Job Corps' diploma attainment
rate increase resulted in part from a renewed focus on academic achievement
and aggressive new strategies. Hourly wage performance may have been aided
by a change in the basis for calculation of wages from initial placement
to six months after placement. Youth Opportunity Grant performance was improved
by numerous technical assistance strategies that focused on improving long-term
employment and education placements.
Future Challenges
The delay of reauthorization of the Workforce Investment
Act poses management challenges for the WIA Youth program. The Department
of Labor's proposed legislation places emphasis on serving out-of-school
youth, and DOL has begun developing strategies to do so. However, the law
currently requires grantees to spend only 30 percent of funds on out-of-school
youth. Because this group is more difficult and expensive to serve, few
elect to allocate more than the statutory minimum especially given
greater pressure to meet employment, retention, earnings and efficiency
targets.
The Government Accountability Office (GAO) conducted a study entitled Labor
Actions Can Help States Improve Quality of Performance Outcome Data and
Delivery of Youth Services (Study 10 in Appendix
2). The report recommended that DOL
and the US Department of Education coordinate efforts to connect school dropouts
to local WIA youth programs and to establish standard monitoring procedures
to improve the quality of data reported by states. DOL is implementing these
recommendations.
The Program Assessment Rating Tool (PART) review of the WIA Youth program,
conducted for the FY 2004 budget, recommended an impact evaluation of the
WIA Youth program. ETA will commission such a study upon reauthorization,
as knowledge of the program's new direction will be critical to the
design of any meaningful study. DOL is conducting an impact evaluation of
the Youth Opportunity Grant program that is scheduled for completion in 2005.
Increase entrance and retention of youth registered under the WIA youth
program in education or employment.
Indicators
52 percent of the 14-18 year-old youth who enter the program without
a diploma or equivalent will attain a secondary school diploma or equivalent
by the first quarter after exit;
65 percent of the 19-21 year-old youth will be employed in the first quarter
after program exit; and
78 percent of the 19-21 year-old youth employed in the first quarter after
exit will be employed in the third quarter after program exit.
Program Perspective
The Workforce Investment Act authorizes services to low-income
youth (age 14-21) who have barriers to employment. Eligible youth are deficient
in basic skills or are homeless, are a runaway, are pregnant or parenting,
are offenders, school drop-outs, or foster children. The program also serves
youth with disabilities and other youth who may require additional assistance
to complete an educational program or to secure and hold employment. Programs
and services are offered to both in and out-of-school youth. Service providers
prepare youth for post-secondary education by stressing strong linkages between
academic and occupational learning, and preparing youth for employment. Local
communities create opportunities for youth by providing required program
elements, including tutoring, alternative schools, summer employment, occupational
training, work experience, supportive services, leadership development, mentoring,
counseling, and follow-up services.
The three performance indicators were selected from seven WIA youth measures
as most appropriate for both in-school and out-of-school youth. For the older
youth population, entrance into and retention in employment are the most
appropriate indicators of success because 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. External factors outside of the workforce
system, such as secondary school quality and the advent of state standards
of learning, have the potential to impact the diploma attainment rate. However,
a two year trend shows that the program is making steady progress against
its indicators. Strategies and partnerships are continually reviewed to ensure
the best service delivery is provided.
Robert embodies all the qualities that make an individual an achiever. At
birth, he was diagnosed with Cerebral Palsy, which hindered his educational
progress and his social and psychological development. When he was referred
to the WIA-funded Goodwill Workforce Development Center in Virginia as a
high school senior, he felt he had a new chance at a life of independence.
He credits Goodwill Industries of the Valleys, part of a world-wide network
of 207 community-based organizations, for providing him with the skills to
become a disc jockey (DJ). Working with Goodwill's staff, a local radio
station made accommodations to enable Robert to participate in a work experience.
Benefiting from a tutor and job coach assigned by Goodwill, Robert learned
the skills needed in his chosen career and improved his math and reading.
Working as a DJ, Robert became a celebrity and the station gave him his own
Saturday program. Robert was selected by Goodwill Industries as the 2003 "Achiever
of the Year" and credits the assistance he received for the direction
his life has taken. Robert wrote: "In addition to furnishing me with
financial support, Goodwill's Workforce Development was very timely
in providing me with guidance and advice on coping with the everyday workforce." Robert
now attends the American Broadcasting School in Oklahoma City and will return
home to pursue his disc jockey career.
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Photo credit: Robert Martin |
Results, Analysis and Future Plans
The goal was achieved.
- 63 percent
of the 14-18 year-old youth who entered the program without a diploma
or equivalent attained a secondary school diploma or equivalent by the
first quarter after exit.
- 71
percent of the 19-21 year-old youth were employed in the first quarter
after program exit.
- 81 percent of the 19-21 year-old youth employed
in the first quarter after exit were employed in the third quarter after
program exit.
Text only
These results for Program Year 2003 (ending June WIA Youth 30, 2004) continue
an upward trend that began with WIA implementation in 1998, and are
significant. Most important is the continued increase in high school diploma
attainment, given 80% the strong statistical correlation between educational
attainment and success in the labor 60% 40% market.
During PY 2003, DOL provided extensive technical assistance to those states
struggling to meet performance goals. This strategy has resulted in improved
performance and has yielded valuable information on the specific challenges
with which local areas continue to struggle. One example of technical
assistance is the Performance Enhancement Project (PEP), which offers
a mechanism to identify and address local performance management issues.
DOL has also continued to emphasize performance and accountability, including
extensive work developing the Common Performance Measures and collaboration
with the US Department of Education and with State and local practitioners
in developing guidance for their implementation. DOL continues its program
of conducting on-site assessments of State and local workforce investment
areas to determine the effectiveness of local youth programs and to help
regional offices develop strategies to improve program outcomes.
DOL will continue its performance improvement efforts by working with its
partners to increase emphasis on alternative education, business demands
(especially in high-growth industries and occupations), and at-risk youth,
including those in foster care, those attached to the juvenile justice system,
and migrant youth.
Management Issues
The reliability of administrative data for non-employment
measures, such as diploma attainment, has been questioned in the past by
the Office of Inspector General (OIG). In response, DOL implemented a data
validation initiative during PY 2002. Data quality and reliability has
improved as a result of this initiative. States will continue to conduct
both report validation and data element validation for the current year's
data, thereby ensuring the completeness and reliability of performance
data.
The delay of reauthorization of the Workforce Investment Act poses management
challenges for the WIA Youth program. The Department of Labor's proposed
legislation places emphasis on serving out-of-school youth, and DOL has begun
developing strategies to do so. However, because the law currently requires
spending just 30 percent of funds on these traditionally expensive to serve
out-of-school youth, it will be difficult to implement the new strategies
absent reauthorization.
The Government Accountability Office (GAO) conducted a study entitled Labor
Actions Can Help States Improve Quality of Performance Outcome Data and
Delivery of Youth Services (Study 10 in Appendix
2). The report recommended that DOL
and the US Department of Education coordinate efforts to connect school dropouts
to local WIA Youth programs and to establish standard monitoring procedures
to improve the quality of data reported by states. DOL is implementing these
recommendations.
The Program Assessment Rating Tool (PART) review of the WIA Youth program,
conducted for the FY 2004 budget, recommended adoption of common performance
measures for Federal job training programs and recommended an impact evaluation
of the WIA Youth program. In response, ETA has adopted the four youth common
measures in subsequent Performance Budgets and issued guidance to grantees
to manage to these goals and measures. States will begin reporting on common
measures in November 2005. The impact evaluation will be commissioned upon
reauthorization, as knowledge of the program's new direction will be
critical to the design of any meaningful study.
Improve participation, retention and earnings of Job Corps graduates in
employment and education
Indicators
The number of students who attain high school diplomas while enrolled
in Job Corps will increase by 20% from Program Year 2002;
65% of graduates will continue to be employed or enrolled in education six
months after their initial placement date; and
Graduates with jobs at six months after initial placement will earn average
hourly wages of $8.20.
Program Perspective
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 occupational skills, academic training, social education,
and other support services such as housing, transportation, and family support
resources to more than 60,000 individuals at 122 centers nationwide. Job
Corps centers, ranging in size from 200 to 2,000 students, are located in
both urban and rural communities and are operated by large and small companies
under performance-based contracts.
Evelyn saw a better future unfold after catching a television ad for Job
Corps. Evelyn grew up in a very poor area of Milwaukee, Wisconsin. Faced
with limited employment opportunities because she dropped out of high school
in the 11th grade to help support her family, she knew that education would
free her from poverty. In July 2001, at age 18, she enrolled at the Hubert
H. Humphrey Job Corps Center in St. Paul, MN. Evelyn completed the Business
Technologies and Health Occupations career training programs and obtained
her GED. Soon afterward, she got a job as Student Intake Coordinator at Alternative
Learning Center High School. Evelyn is a full-time student and through a
partnership with the Humphrey Job Corps Center has entered the Advanced Career
Training program in Child Development at St. Paul Technical College. She
will graduate in December 2004. She also works part-time at the University
of Minnesota College of Agriculture, Food and Environmental Sciences where
she received an outstanding employee award. Evelyn plans to attend Metropolitan
State University to pursue a Bachelor's Degree in social work or child
psychology.
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Photo credit: Katherine Limon, Renee Peek, Melanie Leary |
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. DOL uses three performance indicators for this program: earning
a diploma or its equivalent is the most meaningful indicator of preparedness,
while entry to employment and employment retention are appropriate indicators
of success in the workforce. Targets are selected by assessing prior experience,
and then projecting reasonable performance under anticipated labor market
conditions.
Results, Analysis and Future Plans
The goal was not achieved. Two of three
indicator targets were reached. In PY 2003, participants earned 8003 high
school diplomas vs. a target of 7,658 a 25 percent increase over PY
2002. The target average hourly wage rate of $8.20 at six months after employment
was reached, with an actual rate of $8.95. The six-month retention rate was
63 percent, nearly reaching the 65 percent target. From PY 2001-2003, the
retention rate remained level. However, the average hourly wage at six months
and diploma attainment rate increased during that period.
Job Corps' high school diploma attainment rate increased by 25 percent
in PY 2003. This HS Diploma Attainment outcome is attributed to a renewed
focus on academic achievement and new strategies designed to facilitate
students' successful completion of diploma requirements. In PY 2003,
while the average hourly wage goal of $8.20 per hour for Job Corps remained
the same as PY 4000 2002, the basis for calculation of wages changed 2000
from initial placement to six months later. As in 0 past years, the average
hourly wage for Job Corps PY 2002 PY 2003 graduates continues to increase.
Average hourly wages at six months for Job Corps graduates were solid,
given economic conditions. Moreover, 63 percent were still employed or
enrolled in advanced education programs six months later.
Job Corps' success
in meeting its diploma target is due in large part to numerous partnerships
with other youth and adult serving programs: the Department of Education's
High School initiative, the former School-to-Work initiative, AmeriCorps,
Head Start, Youth Challenge, Youth Build, America's Promise, the Center
for Workforce Preparation, and the military. A significant number of the
Job Corps centers have also entered into partnerships with local school districts
to enable students to earn diplomas. To assist career transition, Job
Corps centers are represented on local workforce investment boards and youth
councils.
Regional assessments and annual contract reviews of center operators and
career transition service contractors include compliance measures for operations
and performance measures related to student outcomes. Performance based
contracting for center operators and career transition service contractors
links performance on specific measures of student success to center operators'
and contractors' revenues. Implementation of PY 2000 PY 2001 PY 2002 PY
2003 such provisions, for example incentive fees for contractors, has
led to improved student outcomes. In addition to improving student outcomes,
Job Corps continues to focus on customer needs by maintaining safe and
healthy environments at all Job Corps centers by working with other DOL agencies
to conduct safety and health inspections.
Management Issues
Job Corps uses comprehensive data to measure program
performance results. To maintain data integrity, independent data analysts
scrutinize performance details. Job Corps also utilizes feedback from annual
independent audits of system security and business policies and procedures
to improve oversight and management of its performance data systems.
Increase retention of Youth Opportunity Grant participants in education
or employment.
Indicators
52 percent of the 14-18 year-old youth who enter the program without
a diploma or equivalent will attain a secondary school diploma or equivalent
by the first quarter after exit;
65 percent of the 19-21 year-old youth will be employed in the first quarter
after program exit; and
78 percent of the 19-21 year-old youth employed in the first quarter after
exit will be employed in the third quarter after program exit.
Seaman Felisicia, a member of the Albany Youth Opportunity Center, recently
graduated with honors from basic training at the Naval Training Center in
Great Lakes, Illinois. She used her exceptional physical fitness to distinguish
herself from the other recruits during the nine weeks of strenuous basic
naval training. Her athletic performance, which earned her selection as an
honor graduate, also earned her the treasured assignment to the Naval Base
in Sasebo, Japan, where she will serve a three-year tour as a fireman. Before
she graduated from Westover High School in 2003, Felisicia served as a member
of the marching band, toured with the chorus and served as a state delegate
for the 4-H program. While she was in the Youth Opportunity program, Felisicia
participated actively at Boys and Girls Club, Inc., where she received the
Outstanding Achievement award. She also was an active member at Unity Church
of Albany's youth program. Furthermore, she worked with the Albany
Police Department as a part of the Communities in School Summer Youth Job
Program and volunteered in several other community service projects. Her
earlier experiences serving her community continue to motivate her to serve
the nation.
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photo credit: Felisicia Flood |
Program Perspective
Youth Opportunity Grants (YOGs), a demonstration program
which began operation in 2000 and ends with Program Year 2004, has aimed
to increase the long-term employment of youth who live in Empowerment Zones,
Native American reservations, Enterprise Communities, and other high-poverty
areas. Although the focus has been to increase youth employment, especially
for out-of-school youth, YOGs also aimed to reduce dropout rates and teen
pregnancy, increase enrollment in post-secondary education, decrease crime,
and improve existing systems in poor communities for serving at-risk youth.
For the older youth population, services have focused on preparation for
and success in the workforce. For the younger youth population, services
were geared toward academic achievement as a means of career preparation.
Factors such as secondary school quality and the advent of state standards
of learning can impact the diploma attainment rate. Many enrollees are high
school drop-outs with limited prospects for attaining a high school diploma
or long term employment. Another challenge was the program design; YOG was
an open enrollment program that accepted any youth willing to enroll. This
helped target youth most in need of services, which may have affected completion
rates, though results did show improvement from last year.
Results, Analysis and Future Plans
Performance Goal 1.2C (ETA) was not achieved.
- 51 percent of the 14-18 year-old
youth who entered the program without a diploma or equivalent attained
a secondary school diploma or equivalent by the first quarter after
exit;
- 60
percent of the 19-21 year-old youth were employed in the first quarter
after program exit; and
- 73 percent of the 19-21 year-old youth employed
in the first quarter after exit were employed in the third quarter after
program exit.
Data from State Unemployment Insurance (UI) wage records for the older youth
entered employment rate and older youth employment retention rate could only
be obtained from approximately half of the Youth Opportunity Grantees. The
diploma attainment rate, however, includes data from all grantees.
Although the diploma attainment rate and entered employment rate improved
markedly from the prior year, all three performance indicators fell short
of their targets. Performance targets were set using baseline data from the
WIA Youth formula-funded program and goals were identical to that program
despite this program's focus on the harder to serve out-of-school youth
population. YOGs were able to significantly improve results in diploma attainment
and entered employment from the prior year. The diploma attainment improvement
is significant given that academic advancement is strongly linked to improved
employment opportunities and outcomes, both key long term goals of DOL youth
programs. The improvement in placing out of school youth in jobs is also
a significant achievement in that youth tend to be harder to employ as the
economy begins to recover. Although the employment retention rate decreased
from the prior year, performance was slightly below target.
During Program year 2003, DOL focused efforts on a Youth Opportunity Grants
number of technical assistance strategies. DOL conducted training sessions
on literacy, job development, and homeless and runaway youth. DOL-sponsored
Youth Development Practitioner's Institute trained hundreds of front-line
YOG staff in areas such as bi-level case management and data management.
DOL also convened a
strategic planning session and several director meetings that focused on
improving areas of performance, especially long-term employment and education
placements. Such efforts coupled with on-site PY 2002 PY 2003 support,
regional calls, and other technical assistance have served to both
inform and focus providers on developing effective alternative education
and literacy teaching strategies and programs. Through DOL's assistance,
YOG-funded programs focused on key progress measures including youth participation,
successful completion of goals, and placements in employment and post-secondary
education.
Management Issues
Approximately half of the grantees were unable to report
on the older youth employment indicators due to limited access to State
Unemployment Insurance (UI) wage records, the data source necessary to
calculate the measures. Delinquent grantees continue to work with their
respective States and ETA anticipates late receipt of some data. ETA is
confident the data that has been submitted is reliable and accurate. Though
this is the last year of YOGs, ETA is addressing this issue for future
discretionary grant programs by ensuring better access to data. Fortunately,
these problems have been limited to the employment indicators; additional
measures, such as participation and completion rates, have been timely
and invaluable for management purposes. DOL is currently conducting an
impact evaluation of the YOG program, and will complete it in 2005.
America's changing 21st Century workforce needs to know what employment
opportunities are emerging to make better informed decisions for their future.
This critical information, as well as other information pertaining to the
broad field of labor economics and statistics, is available from the Department
of Labor's Bureau of Labor Statistics (BLS). BLS provides private citizens,
business owners, and public officials with timely and accurate information
that assists in making decisions on careers, staffing, and public policy.
For example, in FY 2004, BLS released projections to 2012 on future job growth
by industry and occupation and on the likely composition of the workforce
pursuing those jobs. BLS produces some of the Nation's most sensitive
and important economic indicators to serve the needs of the 21st Century
workforce.
Goal Number (Agency) Period
Goal Statement [Achievement]
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|
1.3A (BLS) FY 2004
Improve information available to decision-makers on labor market conditions,
and price and productivity changes.
[Not Achieved]
|
BLS reached targets for customer satisfaction measurement, PPI
and productivity coverage increases, ECI response rate, and the
conversion of four data series to NAICS. Due to the delayed conversion
of the PPI to NAICS, BLS missed several targets for PPI data release
dates and for a PPI system modernization project. BLS also missed
several ambitious survey response rate targets. |
Software publishers top the list of the ten fastest growing detailed-level
industries in the U.S., all of which are in the service-providing sector.
Health and computer occupations account for nine of the ten fastest growing
occupations, according to the 2002-12 Employment Projections data produced
by DOL's Bureau of Labor Statistics. Private citizens, businesses,
and public policy officials require information on high-growth industries
and high-demand occupations to make career and staffing decisions and to
plan programs on education and training. Michael Horrigan, BLS Assistant
Commissioner for the Office of Occupational Statistics and Employment Projections,
presented projections information at the 20th annual BLS Labor Market Information
Conference in Omaha, Nebraska. The conference provided the opportunity for
BLS, its State partners, and its customer community to share views on data
usage and future information needs. Employment projections information can
be found on the BLS website at http://www.bls.gov/emp.
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Photo credit: Scott Hunzeker, Nebraska Workforce Development Department
of Labor |
Net Cost of Programs
FY 2004 program costs of $539 million support BLS programs
to produce and disseminate timely, accurate, and relevant information on
the economy. The Bureau's budget and costs grew incrementally from 1999 to
2004. This trend is attributed primarily to mandatory cost increases; the
creation of new programs, such as the American Time Use Survey; and important
improvements to the Consumer Price Index (CPI), Producer Price Index (PPI),
and Employment Cost Index (ECI).
Future Challenges
Substantial challenges face BLS, including the changing
economy, maintaining sufficient response levels, and evolving technology.
BLS uses various strategies to address these challenges, which include
the following:
To respond to the changing economy:
- BLS continued to provide information that informs the public of
our changing economy. BLS published the first annual estimates from
the American Time Use Survey, providing a wealth of information on the
way Americans spend their time, such as paid work, childcare, volunteering,
commuting, and socializing.
- BLS released official estimates of the Job
Openings and Labor Turnover Survey (JOLTS) which includes the number
and rate of job openings, hires, and separations, which yields better
information on the nature and function of the job market. Previously,
JOLTS data were released as a developmental series.
- As the last phase
of a comprehensive overhaul of its compensation surveys, BLS published
new data on the incidence and characteristics of employee benefit
plans. The new publications initiate a regular program of reports that
will be issued much more quickly than in the past. They will include
new data breakouts by employee and establishment characteristics, and
allow for the simultaneous analysis of wages, employee benefit plan
costs, and employee benefit plan details together for the first time.
To maintain a high level of response for its voluntary surveys:
- BLS continued to develop strategies that address the causes of
nonresponse. During FY 2004, BLS distributed to respondents 14 program-related
brochures that provide visual step-by-step guidance on developing customized
data tables from the BLS website. Respondents use the tool to extract
information that meets their unique needs. Thus, respondents better understand
the importance of the data that they provide to BLS and the importance of
their continued voluntary response.
To meet the challenges of evolving technology:
- BLS continued to expand the
use of Internet data collection in order to provide respondents with
quick and easy-to-use data reporting options. In FY 2004, over 29,000 respondents
to the Survey of Occupational Injuries and Illnesses selected the BLS
Internet data collection option to report their information, accounting for
approximately 14.5 percent of the total respondents pool. Additionally, the
U.S. Import and Export Price Indexes initiated Internet data collection for
their respondents; other BLS programs are analyzing opportunities to provide
the option.
Improve information available to decision-makers on labor market conditions,
and price and productivity changes.
Indicators
Improve relevancy
Improve data relevance by reflecting changes in the economy, as
measured by the number of series (e.g., Current Employment Statistics, Employment
Cost Index, etc.) converted to the North American Industry Classification
System (12 series in total);
Improve accuracy (Coverage)
Improve coverage by increasing the percent of
domestic output of in-scope services included in the Producer Price Index;
Improve
coverage by increasing the percent of in-scope industries in the labor
productivity measures;
Improve accuracy (Response)
Improve the response to the Employment Cost Index;
Enhance information technology
Lessen the likelihood of major systems failures
that could affect the PPI's ability to release data on time, as measured
by the percent of the components of the new repricing system completed;
Other measures
Raise customer satisfaction with BLS products and services
(e.g. the American Customer Satisfaction Index);
Deliver economic data on
time (Percent of scheduled releases issued on time); and
Percent of accuracy
measures met (e.g., revision, response rates, etc.).
Program Perspective
BLS reports performance for this goal by producing timely
and accurate data that meet customer needs. Improvements to the data are
measured through increases in the relevancy, coverage, and response of the
statistics. BLS revised its FY 2004 performance goal to focus more on outcomes
and be more transparent to the general user. This new framework and the indicators
presented here represent the various dimensions of BLS products and services
that are important to our customers. The targets chosen balance respondent
burden and data user needs, while supporting continuous improvement of our
programs and products. BLS continuously improves its statistical processes
and products to ensure that decision-makers have available information that
is useful and relevant.
How can a business maximize its competitive advantage with manufacturing
productivity gains averaging 9.2 percent in the U.S. (2002) versus 2.7 percent
in France and Japan (2002)? What is the impact of an hourly employer labor
cost per manufacturing worker of $21.33 in the U.S. (2002) versus $2.38 in
Mexico (2002)? At Stanford Graduate School of Business, Professor Robert
Flanagan cites these and other BLS statistics on comparative manufacturing
productivity and labor costs, as well as employment and unemployment statistics,
challenging his students to consider how their own work would change in different
economic environments. Professor Flanagan, the Konosuke Matsushita Professor
of International Labor Economics and Policy Analysis at Stanford, teaches
economics in the Executive Education and MBA programs. His classes use BLS
data to examine recent economic trends and to discuss broad differences in
economic outcomes among countries. International comparison data can be found
at http://www.bls.gov/fls/home.htm.
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Photo Credit: Visual Arts Services |
Results, Analysis and Future Plans
The goal was not achieved. However, targets
were exceeded, reached, or substantially reached for seven of the eight performance
indicators.
BLS reached its target for converting four data series from the SIC system
to the North American Industry Classification System (NAICS) in FY 2004;
however, the release of the PPI using the NAICS was delayed. The release
of January data, planned for February, took place in March. The Occupational
Employment Statistics Survey, Industry Productivity statistics, and the Census
of Fatal Occupational Injuries data were converted to NAICS.
Targets were reached 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 covered in the PPI from 38.8 percent (1997
baseline) to 59.2 percent in FY 2004. BLS reached the target, 58 percent,
for improving data coverage in labor productivity measures.
Additionally, BLS reached the target, 78 percent, for improving response
of the ECI initiation indicator. The ECI represents employers' costs
for employee compensation, including wages, fringe benefits, and bonuses
for U.S. employees in all industries. The NAICS conversion effort of the PPI required a temporary diversion of
resources from a systems modernization project, causing BLS to miss its target
for completing components of the new repricing system. Seventeen percent
of the components were completed as compared to a target of 33 percent. A
replanning effort is currently under way to identify and implement strategies
to minimize the disruptions.
The BLS website receives an average of about 2.5 million user sessions each
month, with over half of those sessions directed to the BLS Occupational
Outlook Handbook (OOH) website. The OOH is the Bureau's nationally
recognized source of career information. Using the American Customer Satisfaction
Index (ACSI) survey, the OOH website received a score of 82 in the third
quarter of 2004, placing the website in the top 10 percent of government
agencies. The aggregated Federal government score for this time period was
71.2.
BLS met the timeliness indicator for 104 out of 108 (96 percent) scheduled
releases. The four untimely releases were in the PPI program and were caused
by above mentioned difficulties with the NAICS conversion.
Additionally, BLS met the established accuracy target for 35 out of 42 (83
percent) measures. Targeted response rates were missed for the American Time
Use Survey, Current Population Survey, Job Openings and Labor Turnover Survey,
U.S. Import and Export Price Indexes (two separate rates), ECI (repricing),
and the Employee Benefits Survey. BLS uses various strategies to maintain
a high level of cooperation for its voluntary surveys and continues to conduct
research studies to better understand the causes of nonresponse.
Management Issues
BLS is confident that the performance data collected and
reported are complete, accurate, and reliable. BLS programs are evaluated
both internally and externally to ensure that they provide taxpayer value.
As required by OMB Statistical Policy Directive #3, the seven statistical
series designated as Principal Federal Economic Indicators are evaluated
on a three-year schedule. In FY 2004, BLS completed the performance evaluation
for the Current Population Survey.
In response to the Program Assessment Rating Tool (PART) findings, BLS developed
an efficiency measure and revised its performance goals to focus more clearly
on outcomes and increase transparency. The BLS PART score improved to 88,
receiving an effective rating, the highest rating category.
During FY 2004, BLS responded to the Office of the Inspector General (OIG)
Government Information Security Reform Act (GISRA) Review of the Current
Population Survey (CPS). Findings were related to the CPS Continuity of Operations
Plan, CPS System Security Plan, security controls of the CPS, and a Bureau-wide
Uninterruptible Power Supply system. The review is described in Appendix
2 of this report (Study 1).
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