Welfare to Work

Concerns have arisen that Job Opportunities and Basic Skills Training Program (JOBS)-participation-rate requirements may be discouraging states from serving the least job-ready welfare recipients, including educating and training them. GAO discovered, however, that these concerns are unsupported by data that states reported to the Department of Health and Human Services during fiscal year 1991. All but one state met the seven percent participation rate for fiscal year 1991, and all spent at least 55 percent of their JOBS budgets on target group members. Of those welfare recipients serviced by states participating in JOBS during this period, 62 percent were target group members. These target group members were most often placed in education and training activities, with no more than 12 percent placed in job search activities. In addition, one in three target placements, compared with one in four nontarget placements, was in secondary and remedial educational activities.

GAO found that: (1) there was no evidence that JOBS participation-rate requirements discouraged states from serving the least job-ready recipients; (2) only one state failed to meet the 7-percent participation rate for fiscal year 1991, and all states spent at least 55 percent of JOBS funds on target groups; (3) 62 percent of Aid to Families with Dependent Children recipients enrolled in JOBS were target group members; (4) 73 percent of target group members were placed in education and training activities, while 19 percent of target group members were placed in job search activities; and (5) one in three target placements were in secondary and remedial educational activities.