Workforce Investment Act
Employers Are Aware of, Using, and Satisfied with One-Stop Services, but More Data Could Help Labor Better Address Employers' Needs Gao ID: GAO-05-259 February 18, 2005The economy of the United States is fueled by 8 million private sector businesses that employ 106 million of the nation's 137 million workers. Employers are seeking better ways to meet their workforce needs as they compete in the global economy. This report examines (1) the extent to which employers, including small businesses, are aware of and using the one-stop system; (2) the degree to which employers who use one-stop services report satisfaction and what factors cause employers not to use them; and (3) what Labor has done to support employer awareness and use of the workforce system and how Labor measures its success in meeting the needs of employers.
While about half of all employers are aware of their local one-stops, awareness increases with employer size, with about half of small, two-thirds of medium, and three-quarters of large employers knowing about their local one-stops. Similarly, of all employers aware of the one-stops, about three-quarters of large employers are likely to use one-stop services, while approximately one-half of medium and one-quarter of small employers are likely to do so. Employers of all sizes primarily use one-stop services to help fill job vacancies. Overall, about three-quarters of employers who use one-stop services are satisfied with the services they receive. These employers are most satisfied with one-stop efforts to provide timely services and respond to their needs. In addition, most employers who have used one-stop services would likely use them again, and about one-third of employers who are aware of one-stop services, but have not used them, would consider using them in the future. Among employers who are aware of one-stop services, very few decline to use them because of concerns about the quality of services. Instead, many of these employers choose not to use one-stops because they rely on other resources to hire and train workers or do not have enough information about the services one-stops offer. Labor has initiatives to support employer awareness and use of the one-stop system but does not know the extent to which employers use the system. Labor has developed partnerships with businesses and industry to provide employers easier access to the resources of the one-stop system. To measure how the one-stop system is meeting the needs of employers, Labor requires states to collect information on employer satisfaction with the one-stop system, but not on employer use of the system. Labor's employer satisfaction measure provides a high-level indicator of whether employers are satisfied with the one-stop services they receive; it does not, however, provide enough information on the services employers use to help Labor manage its resources.
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Director: Team: Phone:GAO-05-259, Workforce Investment Act: Employers Are Aware of, Using, and Satisfied with One-Stop Services, but More Data Could Help Labor Better Address Employers' Needs
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Report to Congressional Requesters:
United States Government Accountability Office:
GAO:
February 2005:
Workforce Investment Act:
Employers Are Aware of, Using, and Satisfied with One-Stop Services,
but More Data Could Help Labor Better Address Employers' Needs:
GAO-05-259:
GAO Highlights:
Highlights of GAO-05-259, a report to congressional requesters:
Why GAO Did This Study:
The economy of the United States is fueled by 8 million private sector
businesses that employ 106 million of the nation‘s 137 million workers.
Employers are seeking better ways to meet their workforce needs as they
compete in the global economy. This report examines (1) the extent to
which employers, including small businesses, are aware of and using the
one-stop system; (2) the degree to which employers who use one-stop
services report satisfaction and what factors cause employers not to
use them; and (3) what Labor has done to support employer awareness and
use of the workforce system and how Labor measures its success in
meeting the needs of employers.
What GAO Found:
While about half of all employers are aware of their local one-stops,
awareness increases with employer size, with about half of small, two-
thirds of medium, and three-quarters of large employers knowing about
their local one-stops. Similarly, of all employers aware of the one-
stops, about three-quarters of large employers are likely to use one-
stop services, while approximately one-half of medium and one-quarter
of small employers are likely to do so. Employers of all sizes
primarily use one-stop services to help fill job vacancies.
Overall, about three-quarters of employers who use one-stop services
are satisfied with the services they receive. These employers are most
satisfied with one-stop efforts to provide timely services and respond
to their needs. In addition, most employers who have used one-stop
services would likely use them again, and about one-third of employers
who are aware of one-stop services, but have not used them, would
consider using them in the future. Among employers who are aware of one-
stop services, very few decline to use them because of concerns about
the quality of services. Instead, many of these employers choose not to
use one-stops because they rely on other resources to hire and train
workers or do not have enough information about the services one-stops
offer.
Labor has initiatives to support employer awareness and use of the one-
stop system but does not know the extent to which employers use the
system. Labor has developed partnerships with businesses and industry
to provide employers easier access to the resources of the one-stop
system. To measure how the one-stop system is meeting the needs of
employers, Labor requires states to collect information on employer
satisfaction with the one-stop system, but not on employer use of the
system. Labor‘s employer satisfaction measure provides a high-level
indicator of whether employers are satisfied with the one-stop services
they receive; it does not, however, provide enough information on the
services employers use to help Labor manage its resources.
Percentage of Business Establishments Aware of, Using, and Satisfied
With One-Stops:
[See PDF for image]
[End of figure]
What GAO Recommends:
GAO recommends that the Secretary of Labor require states to collect
and report on employer use of the workforce system. The Department of
Labor agreed with our recommendation and said that it would be
beneficial to understand the degree to which employers use the
workforce system.
www.gao.gov/cgi-bin/getrpt?GAO-05-259.
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Sigurd Nilsen at (202)
512-7215 or nilsens@gao.gov.
[End of section]
Contents:
Letter:
Summary of Findings:
Large and Medium-Sized Employers Are More Likely than Small Employers
to Know About and Use Their Local One-Stops and Other Resources of the
Workforce System:
Most Employers Are Satisfied with One-Stop Services, and Few of Those
Not Using Them Have Concerns about Service Quality:
Labor Has Taken Steps to Support Employer Awareness and Use of the One-
Stop System but Lacks Data on Employer Usage:
Conclusions:
Recommendation for Executive Action:
Agency Comments:
Appendix I: Briefing Slides:
Appendix II: Objectives, Scope, and Methodology:
Appendix III: Additional Employer Survey Data:
Appendix IV: Comments from the Department of Labor:
Appendix V: GAO Contacts and Staff Acknowledgments:
GAO Contacts:
Staff Acknowledgments:
Related GAO Products:
Tables:
Table 1: Private Sector Business Establishments by Size:
Table 2: Two-Phase Business Establishment Sample by Size Category:
Table 3: States and Local Areas We Visited:
Table 4: Business Establishments Aware of One-Stops That Used Their
Services:
Table 5: Primary Reason Business Establishments Aware of One-Stops Did
Not Use Them:
Table 6: Hiring Resources Used by Business Establishments:
Figures:
Figure 1: Percentage of Business Establishments Aware of and Using One-
Stops, by Employer Size:
Figure 2: Percentage of Business Establishments That Used One-Stop
Service:
Abbreviations:
AAPOR: American Association for Public Opinion Research:
ACSI: American Customer Satisfaction Index:
AJB: America's Job Bank:
BLS: Bureau of Labor Statistics:
EMILEETA: Management Information and Longitudinal Evaluation:
ETA: Employment and Training Administration:
SIC: Standard Industrial Classification:
WIA: Workforce Investment Act:
United States Government Accountability Office:
Washington, DC 20548:
February 18, 2005:
The Honorable Michael B. Enzi:
Chairman:
The Honorable Edward M. Kennedy:
Ranking Minority Member:
Committee on Health, Education, Labor, and Pensions:
United States Senate:
The Honorable Patty Murray:
Ranking Minority Member:
Subcommittee on Employment and Workplace Safety:
Committee on Health, Education, Labor, and Pensions:
United States Senate:
The economy of the United States is fueled by 8 million private sector
businesses that employ 106 million of the nation's 137 million workers.
While most of these businesses employ fewer than 50 workers, the
majority of workers are employed by larger businesses. Employers are
seeking better ways to meet their workforce needs as they compete in
the global economy. In 1998, the Workforce Investment Act (WIA) created
a comprehensive workforce system, called the one-stop system, designed
to help both job seekers and employers. WIA requires states and
localities to bring together 17 federal programs and make their
services available through about 1,900 one-stops nationwide. The total
budget for these programs is about $15 billion in federal funding. The
Department of Labor (Labor) is responsible for assessing the
effectiveness of Labor-funded programs and providing guidance to states
and localities on services delivered through the one-stops. WIA also
requires that states report information to Labor on employer
satisfaction with one-stop services. However, little is known about how
well the services provided by the one-stops are helping employers find
the workers they need.
WIA increased the focus on the employer as a customer of the publicly
funded workforce system and requires that employers constitute a
majority of members on state and local workforce investment boards.
These boards develop policy and provide oversight for the one-stops.
The one-stops provide employers with services such as applicant
screening, skill assessment, and training. The publicly funded
workforce system also provides employers and job seekers with other
resources, such as a national, online job openings database--called
America's Job Bank--and labor market information such as current wage
rates.
Because of your interest in how well the workforce system is meeting
the workforce needs of all employers, both large and small, we examined
(1) the extent to which employers, including small businesses, are
aware of and using the one-stop system; (2) the degree to which
employers who use one-stop services report satisfaction and what
factors cause employers not to use them; and (3) what Labor has done to
support employer awareness and use of the workforce system and how
Labor measures its success in meeting the needs of employers.
To address these issues, we surveyed a nationally representative sample
of private sector employers, surveyed state and local workforce
officials, and visited four states and a total of eight one-stops
within those states. For the employer survey, we obtained a sample of
3,232 small, medium, and large private sector employers from a
nationwide database of businesses. We surveyed employers between June
and October 2004, and report on their use of one-stop services during
the 12 months prior to the period when we surveyed them. We achieved a
54 percent response rate after adjusting for cases that were ineligible
for our study or whose eligibility could not be determined. We
interviewed some of those that did not respond to our survey and found
that their views did not differ substantially from the views of those
that responded to our survey. Therefore, we are generalizing our survey
results to all private sector business establishments in the United
States.[Footnote 1] For this report, we considered individual business
establishments with two or more workers as single employers. A business
establishment is the physical location of a certain economic activity,
for example, a factory, mine, store, or office. We chose to survey
personnel at business establishments rather than corporate headquarters
because they are more likely to be responsible for local hiring and
training practices, such as use of one-stops. We divided these business
establishments into size categories based on their number of employees.
(See table 1.)
Table 1: Private Sector Business Establishments by Size:
Employer size: Small;
Total number of employees: 49 or fewer;
Average number of employees: 6.
Employer size: Medium;
Total number of employees: 50 to 499;
Average number of employees: 118.
Employer size: Large;
Total number of employees: 500 or more;
Average number of employees: 1,176.
Source: Quarterly Census of Employment and Wages, Bureau of Labor
Statistics, March 2003.
[End of table]
Survey results that represent all private sector employers in the
United States are heavily influenced by the results for small
businesses because over 95 percent of all business establishments are
small. However, medium and large business establishments employ a
majority of the workforce, so we generally report the survey results
for each employer size category separately. To determine what
information states and local areas collect on services to employers, we
surveyed all 50 states and 568 local workforce investment areas, and we
received responses from all 50 states and 463 local areas (81.5
percent). We selected 4 states--Florida, Michigan, Oklahoma, and
Wyoming--based on their geographic dispersion and the diversity of
their employment growth rates. In each state we visited 2 local areas-
-1 urban and 1 rural--and interviewed workforce officials and local
employers. We interviewed officials from the Department of Labor,
employer associations such as the U.S. Chamber of Commerce, and others.
On January 27, 2005, we briefed your staff on the results of our work.
This report summarizes the information we shared with your staff and
transmits slides we used to brief your staff that day. (App. I contains
these slides.) We conducted our work between October 2003 and January
2005 in accordance with generally accepted government auditing
standards. Appendix II provides further details about our scope and
methodology.
Summary of Findings:
While about half of all employers are aware of their local one-stops,
awareness increases with employer size, with about half of small, two-
thirds of medium, and three-quarters of large employers knowing about
their local one-stops. Similarly, of all employers aware of the one-
stops, about three-quarters of large employers are likely to use one-
stop services, while approximately one-half of medium and one-quarter
of small employers are likely to do so. Employers of all sizes
primarily use one-stop services to help fill job vacancies. About three-
quarters of employers that used one-stops said that they are satisfied
with the services they received, and 83 percent would consider using
them again in the future. Labor has taken steps to support employer
awareness and use of the system. However, it lacks data on employer
usage. Because Labor collects little information on employers' use of
the one-stops, the extent to which these services help employers is
unknown, as is how these services could be more effectively targeted to
meet employers' workforce needs.
In this report, we are making a recommendation to the Secretary of
Labor to require states to collect and report on employer use of the
workforce system. In its comments on a draft of this report, Labor
agreed with our recommendation and provided technical comments, which
we included as appropriate.
Large and Medium-Sized Employers Are More Likely than Small Employers
to Know About and Use Their Local One-Stops and Other Resources of the
Workforce System:
While about half of all employers are aware of their local one-stops,
awareness levels increase with employer size, with about half of small,
two-thirds of medium, and three-quarters of large employers knowing
about their local one-stops. (See fig. 1.) Regardless of size, most
employers learn about one-stops through word of mouth in the private
sector. Moreover, large and medium employers are more likely than small
employers to learn about one-stops from a one-stop official or
government representatives. This may be because larger employers are
more likely to hire workers.
Figure 1: Percentage of Business Establishments Aware of and Using One-
Stops, by Employer Size:
Aware;
Small (2-49 employees): 48%;
Medium (50-499 employees): 63%;
Large (500 or more employees): 79%.
Used;
Small (2-49 employees): 21%;
Medium (50-499 employees): 53%;
Large (500 or more employees): 71%.
Source: GAO 2004 survey of private sector business establishments in
the United States.
[End of figure]
Large and medium employers who know about one-stops are more likely
than small employers to use their services. Of all employers aware of
the one-stops, approximately three-quarters of large employers are
likely to use one-stop services, while about one-half of medium and one-
quarter of small employers are likely to do so. As shown in figure 2,
employers of all sizes generally use one-stop services to help fill job
vacancies through posting job announcements and screening job
applicants, with large employers being three to four times more likely
than small employers to use these services. (See app. III for more
information.) Small employers' lower rate of usage could be associated
with their lower likelihood of hiring. Small employers are less likely
than large and medium employers to have hired an employee in the
previous year. In addition, few employers of any size are likely to
access training services through one-stops. This is consistent with
what most employers we interviewed on our site visits told us--they
said they did the majority of their training internally.
Figure 2: Percentage of Business Establishments That Used One-Stop
Service:
Post job openings;
Small (2-49 employees): 19%;
Medium (50-499 employees): 49%;
Large (500 or more employees): 65%.
Screen job applicants;
Small (2-49 employees): 10%;
Medium (50-499 employees): 26%;
Large (500 or more employees): 37%.
Training services;
Small (2-49 employees): 2%;
Medium (50-499 employees): 4%;
Large (500 or more employees): 14%.
Source: GAO 2004 survey of private sector business establishments in
the United States.
[End of figure]
Awareness and use of two other resources of the workforce system--
America's Job Bank and labor market information funded by Labor--also
vary by size of employer, with larger employers more likely than small
employers to use them.[Footnote 2] While 56 percent of large employers
are aware of the America's Job Bank Web site, 17 percent of small
employers are aware of this resource. Likewise, large employers are
about twice as likely as small employers to be aware of labor market
information funded by Labor (74 percent versus 40 percent). In
addition, large and medium employers are significantly more likely than
small employers to use both of these resources. According to Labor,
employers use the America's Job Bank Web site to find prospective
employees, and they use labor market information to learn about
employment trends and wages. Several employers we interviewed on our
site visits said they used labor market information on current wage
rates in order to comply with wage laws or to set compensation rates.
Most Employers Are Satisfied with One-Stop Services, and Few of Those
Not Using Them Have Concerns about Service Quality:
The vast majority of employers who use one-stop services are satisfied
with them; particularly, they express satisfaction with the timeliness
of services and the extent to which services address their needs. In
addition, most employers who use one-stop services would likely use
them again, and about one-third of employers who are aware of one-stop
services but do not use them would consider using them in the future.
Among employers who are aware of one-stop services, very few decline to
use them because of concerns about the quality of services. Instead,
many of these employers choose not to use one-stops because they rely
on other resources to hire and train workers or do not have enough
information about the services one-stops offer.
Most Employers Are Satisfied with One-Stop Services:
Overall, about 78 percent of employers in the United States who have
used one-stops are satisfied with the services they received. These
employers are most satisfied with one-stop efforts to provide timely
services and respond to their needs. Most employers we interviewed on
our site visits also expressed satisfaction with one-stop services, and
some pointed to cost and time savings as the primary benefit of using
one-stops. For example, one employer said that because one-stop staff
selected qualified applicants using the company's own screening
criteria, the company saved a lot of time. Furthermore, our survey
showed that the majority of employers who use one-stop services would
consider using them in the future, and a majority would also recommend
one-stop services to another businessperson. Eighty-three percent of
employers who use one-stops said they are willing to consider using one-
stops in the future, and this proportion does not vary much by employer
size. Similarly, about three-quarters of employers who use one-stops
are willing to recommend one-stop services to other businesses.
Furthermore, about one-third of employers who are aware of one-stop
services but have not used them would consider using them in the
future.
Most Employers Not Using One-Stop Services Give Reasons Other than
Concerns about Quality of Services:
Of those employers who are aware of but not using one-stop services,
very few (3 percent), had concerns about service quality. The most
common reason employers did not use one-stop services was that they
primarily use other resources to hire and train workers--this was true
for all employer size categories. About 21 percent of employers chose
not to use one-stops because they lacked information about their
services. In addition, several employers we interviewed on our site
visits said that although they were aware of one-stops, they did not
know about the breadth of services they offered. Nearly all employers
we interviewed on our site visits thought that one-stops should try to
increase general awareness of one-stops among employers.
Labor Has Taken Steps to Support Employer Awareness and Use of the One-
Stop System but Lacks Data on Employer Usage:
Labor has initiatives to support employer awareness and use of the one-
stop system but does not know the extent to which employers use the
system. Labor has developed partnerships with businesses and industry
to provide employers easier access to the resources of the one-stop
system. To measure how the one-stop system is meeting the needs of
employers, Labor requires states to collect information on employer
satisfaction with the one-stop system but not on employer use of the
system. Labor's employer satisfaction measure provides a high-level
indicator of whether employers are satisfied with the one-stop services
they receive. It does not, however, provide enough information on the
services employers use to help Labor manage its resources.
Labor Has Initiatives to Support Employer Awareness and Use of the One-
Stop System:
Labor has developed a number of initiatives to support employer
awareness and use of the one-stop system but has limited information
about the extent to which employers use the system. Labor established
its Partnerships for Jobs Initiative with 23 large, multistate
employers, including the Home Depot and Citigroup, to provide better
access to the resources of the approximately 1,900 one-stops
nationwide. This initiative helps employers learn about state and local
workforce resources provided through the one-stop system. Through its
ongoing High-Growth Training Initiative, Labor has also directed more
than $92 million, as of June 2004, to public-private partnerships in
which growing industries work with education and training providers to
ensure that workers get the skills they need to compete in growing
fields like biotechnology and high-tech manufacturing. In addition,
Labor provided a $1.6 million grant to a seven-state consortium to
develop model outreach strategies for marketing one-stop services to
employers.
Labor has identified various ways to measure the success of these
initiatives, such as hiring rates and expansion of services. For
example, through its Partnership for Jobs initiative, the 23 national
employers have hired approximately 15,000 individuals through the one-
stop system as of June 2004. Through its High-Growth Job Training
Initiative, Labor has identified workforce solutions, such as expanding
the pipeline of youth entering high-growth industries and enhancing the
capacity of educational institutions to train students in industry-
defined competencies.
Labor Requires Collection of Information on Overall Employer
Satisfaction but Not on Employer Use of One-Stop Services:
To measure the success of the one-stops in meeting employer workforce
needs, Labor requires states to report on employers' overall
satisfaction with one-stop services, but not on their use of these
services. Labor requires that states conduct quarterly telephone
surveys of employers to obtain information on their overall
satisfaction with the services provided by the one-stops. Each state
negotiates with Labor to set its own goal for employer customer
satisfaction.[Footnote 3] Because of the general nature of the employer
satisfaction measure, it has limited usefulness to Labor for management
of its one-stop system resources. Moreover, usage information, such as
the number of employers using one-stop services, is not available to
Labor because it does not require that states collect information on
employers' use of one-stop services.
Labor recognizes that the satisfaction measure provides only general
information and that there is a need for more information than the
employer satisfaction measure provides. Labor's Employment and Training
Administration (ETA) has proposed a new data collection and reporting
system called the ETA Management Information and Longitudinal
Evaluation (EMILE) to, among other things, obtain more detailed
information about employers' use of one-stop services. Labor's proposed
reporting system would require states to collect specific employer-
related information, such as the characteristics of the employers and
the services they use. However, Labor is in the process of responding
to public comments on the proposal and has not yet finalized its
implementation plans.
Many Local Areas Collect Information on Employer Use of One-Stop
Services, but Most States Do Not Track This Type of Information:
While many local areas track their own measures of how one-stops serve
employers, this information is not reported to most states or Labor. At
least half of the local areas track such measures as the number of
employers that use one-stop services, the type of services that
employers use, and the number of employers that hire one-stop job
seekers. While this type of information allows local areas to better
manage their resources to respond to the changing needs of their
employer clients, information on employer usage is not communicated to
most states or Labor.
Relatively few states require local workforce areas to report on
employer measures, such as the number of employers they serve and the
number that hire one-stop job seekers. For example, about one-third of
all states require local areas to report on the number of employers
that use their services, while 11 states track the type of one-stop
services that employers use. Because states are currently not required
by Labor to collect this type of information, it is unavailable at the
state and federal level to help them manage federal workforce
resources.
Conclusions:
The federal government currently invests in a workforce system with
multiple programs to help workers find jobs, and to help employers find
the workers they need. We found that large numbers of employers know
about, use, and are satisfied with their local one-stops. While Labor
has taken steps to support employer awareness and use of the system, it
collects little information on employers' use of the workforce system.
Although many local areas and some states collect information on
employer use of the one-stop system to manage their resources, this
information is not reported to Labor. Collecting employer information
involves additional effort for states and local areas but enhances
their ability to manage their resources. Without this information on
employer use of the one-stop system, Labor cannot identify whether or
not state and local programs are responding to the needs of employers
and what types of services best meet employers' workforce needs. As a
result, Labor does not have the information necessary to identify areas
where additional employer assistance may be needed or to design a
strategy for effectively targeting limited workforce funds.
Recommendation for Executive Action:
To ensure that Labor has a better understanding of the degree to which
the publicly funded workforce system meets employers' needs, we
recommend that the Secretary of Labor require states to collect and
report on employer use of the one-stop system in addition to continuing
to collect general employer satisfaction information.
Agency Comments:
We provided officials at the Department of Labor an opportunity to
comment on a draft of this report. Formal comments appear in appendix
IV.
Labor agreed with our findings and recommendation that the Secretary of
Labor require states to collect and report on employer use of the one-
stop system to better understand the degree to which the system is
meeting the needs of employers. Labor stated that one component of its
proposed revised reporting system would collect information on
employers' use of one-stop services. However, the agency continues to
reconcile comments on its proposed reporting system and to determine
its feasibility.
As agreed with your offices, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 30 days
from its date. At that time, we will send copies of this report to the
Secretary of Labor, appropriate congressional committees, and other
interested parties. In addition, the report will be available at no
charge on GAO's Web site at http://www.gao.gov.
A list of related GAO products is included at the end of this report.
If you or your staff have any questions about this report, please
contact me at (202) 512-7215 or Joan Mahagan, Assistant Director, at
(617) 788-0521. You may also reach us by e-mail at nilsens@gao.gov or
mahaganj@gao.gov. Other contacts and staff acknowledgments are listed
in appendix V.
Signed by:
Sigurd R. Nilsen:
Director, Education, Workforce, and Income Security Issues:
[End of section]
Appendix I: Briefing Slides:
Employer Awareness, Use, and Satisfaction with the Workforce System:
Briefing to Congressional Requesters:
January 27, 2005:
Objectives:
* To what extent are employers, including small businesses, aware of
and using the one-stop system?
* To what degree do employers who use one-stop services report
satisfaction, and what factors cause employers not to use them?
* What has the Department of Labor (Labor) done to support employer
awareness and use of the workforce system and how does Labor measure
its success in meeting the needs of employers?
Methodology--Definitions:
* Employers are private sector business establishments with at least
two employees.
* A business establishment is the physical location of a certain
economic activity, such as a factory, mine, store, or office. For
example, the Home Depot is a large national business with multiple
store locations nationwide. For our study, each store counted
separately as an employer.
* We chose to survey personnel at individual business establishments
rather than corporate headquarters because these employers are more
likely than headquarters staff to be responsible for local hiring and
training practices, such as use of one-stops.
* We defined the size of employers by their number of employees: small:
2-49, medium: 50-499, and large: 500 or more.
We focused on:
* one-stop centers: all services provided to employers through one-stop
career centers, including services such as applicant screening, skills
assessment, and training;
* America's Job Bank (AJB): an employment Web site; and:
* labor market information funded by Labor, such as current wage rates.
Methodology--Surveys:
For our employer survey, we obtained a sample of 3,232 small, medium,
and large private sector employers from a nationwide database of
businesses and generalized our survey results to all private sector
business establishments in the United States.
* We achieved a 54 percent response rate after adjusting for cases that
were ineligible for our study or whose eligibility could not be
determined.
* We interviewed some of those that did not respond to our survey and
found that their views did not differ substantially from the views of
those that responded to our survey.
* We surveyed employers between June and October 2004. We report on
their use of one-stop services during the 12 months prior to the period
when we surveyed them.
* For more details about our survey methods and the limitations to the
survey, see appendix II.
Note: Sampling errors for estimates presented in this report do not
exceed 9 percentage points unless related to employer satisfaction or
reasons for not using one-stop services, in which case, they do not
exceed 15 percentage points. Specific sampling errors are noted on
pages 22-29.
* We surveyed states and local workforce investment areas about their
collection of information on services to employers.
* We received responses from all 50 states and 463 of the 568 local
workforce investment areas (81.5 percent).
Methodology--Site Visits:
* We visited four states, based on diverse geography and varying
employment growth rates: Florida, Michigan, Oklahoma, and Wyoming.
* In each state, we visited urban and rural areas and interviewed
workforce officials and employers of various size that had either used
or not used their local one-stops.
* We interviewed Labor officials about their efforts to support
employer awareness and use of the workforce system and reviewed related
documentation.
* We interviewed representatives from employer associations, such as
the U.S. Chamber of Commerce and others.
Summary of Findings:
* While about half of all employers are aware of their local one-stops,
awareness and use increases with employer size. Of all employers aware
of the one-stops, about one-quarter of small employers are likely to
use one-stop services, while approximately one-half of medium and three-
quarters of large employers are likely to do so.
* About three-quarters of employers that used one-stops said that they
are satisfied with the services they received, and 83 percent would
consider using them again in the future.
* Labor has taken steps to support employer awareness and use of the
system. However, it lacks data on employer usage. Because Labor
collects little information on employers' use of the one-stops, the
extent to which these services help employers is unknown.
Background:
* The Workforce Investment Act (WIA) of 1998 led to the creation of a
more streamlined publicly funded workforce system and increased the
focus on the employer as a customer.
* WIA requires states and localities to bring together 17 federal
programs and make their services available through about 1,900 one-
stops nationwide.
* Labor is responsible for assessing the effectiveness of Labor-funded
programs and providing guidance to states and localities on services
delivered through the one-stops.
* WIA requires that states collect data on 17 performance measures.
Only one measure deals with employers; it gauges their overall
satisfaction with one-stop services.
Background (cont.):
The vast majority of business establishments are small businesses, but
large and medium employers have a majority of workers.
Private sector business establishments in the United States by size:
Business establishment size: Small (49 or fewer employees);
Percentage of private sector business establishments (8 million): 95%;
Percentage of private sector employment (106 million): 43%;
Average number of employees per business establishment: 6.
Business establishment size: Medium (50-499 employees);
Percentage of private sector business establishments (8 million): 4%;
Percentage of private sector employment (106 million): 39%;
Average number of employees per business establishment: 118.
Business establishment size: Large (500 or more employees);
Percentage of private sector business establishments (8 million):
