Employment and Training
Most One-Stop Career Centers Are Taking Multiple Actions to Link Employers and Older Workers
Gao ID: GAO-08-548 April 21, 2008
The share of older persons in the U.S. population age 55 and older is projected to increase to 30 percent by 2025 and continue to grow through 2050. At the same time, more older persons are expected to continue working than in the past and, in doing so, may need employment and training services as they make transitions to different jobs and work arrangements. Several factors will contribute to this phenomenon. The number of older Americans and their proportion of the total population are increasing and are expected to continue to increase. Fewer of these older Americans are expected to have the traditional retirements of previous generations and many will continue working for financial or other reasons. At the same time, labor force growth is expected to slow and employers will be faced with a relatively smaller and younger available workforce. As a result, some businesses will need to retain existing older workers or attract additional older workers to meet their workforce needs. The Department of Labor (Labor) has identified one-stop career centers (one-stops) as a means to link older workers with employers through employment and training services. To address the role of one-stops in serving older workers, we examined: (1) Labor's actions to help one-stops link employers and older workers and (2) one-stops' actions to help employers hire and retain older workers.
Labor has proposed action steps that one-stops may take to link employers and older workers and has ongoing efforts to promote employment for older workers to a wider audience. While Labor knows little about the results of these efforts, planned evaluations may provide some information on the impact of Workforce Investment Act(WIA) services on older workers. Based on our survey results, we estimate that most one-stops took multiple actions to link employers and older workers. One-stop officials identified some actions as most effective, such as training staff to assist older workers, and often used multifaceted approaches. Several factors--for example, the local economy and how workers' skills match with employers needs--might affect what actions one-stops take to serve older workers. One factor, the performance measure tracking participants' earnings, may create disincentives for serving older workers who are more likely to work part-time, which provides lower wages. We have previously recommended that Labor assess the potential for such disincentives, and we continue to believe that doing so would be worthwhile.
GAO-08-548, Employment and Training: Most One-Stop Career Centers Are Taking Multiple Actions to Link Employers and Older Workers
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Report to the Committee on Health, Education, Labor, and Pensions, U.S.
Senate:
United States Government Accountability Office:
GAO:
April 2008:
Employment And Training:
Most One-Stop Career Centers Are Taking Multiple Actions to Link
Employers and Older Workers:
GAO-08-548:
Contents:
Letter:
Appendix I: Briefing Slides:
Appendix II: Comments from the Department of Labor:
Abbreviations:
SCSEP: Senior Community Service Employment Program:
WIA: Workforce Investment Act:
WIB: Workforce Investment Board:
United States Government Accountability Office:
Washington, DC 20548:
April 21, 2008:
The Honorable Edward M. Kennedy:
Chairman:
The Honorable Michael B. Enzi:
Ranking Member:
Committee on Health, Education, Labor, and Pensions:
United States Senate:
The Honorable Patty Murray:
Chair:
Subcommittee on Employment and Workplace Safety:
Committee on Health, Education, Labor, and Pensions:
United States Senate:
The share of older persons in the U.S. population age 55 and older is
projected to increase to 30 percent by 2025 and continue to grow
through 2050. At the same time, more older persons are expected to
continue working than in the past and, in doing so, may need employment
and training services as they make transitions to different jobs and
work arrangements. Several factors will contribute to this phenomenon.
The number of older Americans and their proportion of the total
population are increasing and are expected to continue to increase.
Fewer of these older Americans are expected to have the traditional
retirements of previous generations and many will continue working for
financial or other reasons. At the same time, labor force growth is
expected to slow and employers will be faced with a relatively smaller
and younger available workforce. As a result, some businesses will need
to retain existing older workers or attract additional older workers to
meet their workforce needs. The Department of Labor (Labor) has
identified one-stop career centers (one-stops) as a means to link older
workers with employers through employment and training services. To
address the role of one-stops in serving older workers, we examined:
(1) Labor's actions to help one-stops link employers and older workers
and (2) one-stops' actions to help employers hire and retain older
workers.
On January 22, 2008, we briefed interested staff on the results of our
analysis. This report formally conveys information provided during that
briefing. In summary, we reported the following findings:
* Labor has proposed action steps that one-stops may take to link
employers and older workers and has ongoing efforts to promote
employment for older workers to a wider audience. While Labor knows
little about the results of these efforts, planned evaluations may
provide some information on the impact of WIA services on older
workers.
* Based on our survey results, we estimate that most one-stops took
multiple actions to link employers and older workers. One-stop
officials identified some actions as most effective, such as training
staff to assist older workers, and often used multifaceted approaches.
Several factors--for example, the local economy and how workers' skills
match with employers needs--might affect what actions one-stops take to
serve older workers. One factor, the performance measure tracking
participants' earnings, may create disincentives for serving older
workers who are more likely to work part-time, which provides lower
wages. We have previously recommended that Labor assess the potential
for such disincentives, and we continue to believe that doing so would
be worthwhile.
To examine these issues, we conducted Web-based surveys of one-stops
and their local Workforce Investment Boards (WIB), which allowed us to
make estimates to the entire population of one-stops.[Footnote 1] We
also interviewed one-stop and WIB officials, Labor officials, and
persons from other organizations knowledgeable about older workers and
workforce programs. When using the term "older workers," we are
generally referring to persons age 55 and older who were employed or
seeking employment. In our review we considered how all older workers
are served, but in reporting survey results we did not include the
Senior Community Service Employment Program (SCSEP) when we could
distinguish it from other programs. Although SCSEP's efforts are
directed exclusively toward older persons, because of stringent income
requirements and other requirements, the program serves a very small
percentage of older workers.[Footnote 2] We conducted this performance
audit from May 2007 to January 2008, in accordance with generally
accepted government auditing standards. Those standards require that we
plan and perform the audit to obtain sufficient, appropriate evidence
to provide a reasonable basis for our findings and conclusions based on
our audit objectives. We believe that the evidence obtained provides a
reasonable basis for our findings and conclusions based on our audit
objectives.
We provided a draft of this report to Labor for review and comment.
Labor indicated that the report was positive about actions one-stops
are taking to serve and train older workers and Labor stated it found
the information we collected to be helpful. Regarding the average
earnings performance measure, Labor noted that its initial analysis
shows that older workers have higher earnings than other workers. We
clarified our statements in the report regarding older workers and
average earnings to indicate that older workers are more likely to work
part-time and that wages from part-time work are lower than wages from
full-time work. Labor indicated that it intends to continue to explore
issues surrounding performance. Labor's entire comments are reproduced
in appendix II.
We are sending copies of this report to relevant congressional
committees and other interested parties and will make copies available
to others upon request. In addition, this report will be available at
no charge on GAO's Web site at [hyperlink, http://www.gao.gov].
If you or your staff have any questions about this report, please
contact me at (202) 512-7215 or ScottG@gao.gov. Contact points for our
Offices of Congressional Relations and Public Affairs may be found on
the last page of this report. Patrick di Battista (Assistant Director),
Daniel S. Meyer (Analyst-in-Charge), Jessica A. Botsford, Susannah L.
Compton, Catherine V. Croake, Sharon L. Hermes, Gloria
Hernandezsaunders, Kevin L. Jackson, Stuart M. Kaufman, Kevin M.
Kumanga, Lisa B. Mirel, and Rachael C. Valliere also made significant
contributions to this report.
Signed by:
George A. Scott:
Director, Education, Workforce, and Income Security Issues:
[End of section]
Appendix I: Briefing Slides:
Employment and Training: Most One-Stop Career Centers Are Taking
Multiple Actions to Link Employers and Older Workers:
Briefing to Congressional Staff:
January 2008:
Overview:
Introduction:
Research Questions:
Scope and Methodology:
Summary of Key Findings:
Background:
Findings:
Concluding Observations:
Introduction:
The share of older persons in the U.S. population is projected to
increase to 19.6 percent by 2030 and continue to grow through 2050. At
the same time, more older Americans are expected to continue working
and many will likely make transitions to different jobs and work
arrangements, increasing their need for employment and training
services.
* Older Americans may need to continue to work beyond when they
otherwise might have retired, in order to ensure a more secure
financial future.
* Employers, facing slower growth in the available workforce, may need
to retain or attract older workers. Older workers are generally defined
as those persons age 55 and older who are employed or seeking
employment.
* The U.S. Department of Labor (Labor) has identified one-stop career
centers, required by the Workforce Investment Act (WIA), as a means to
link older workers with employers through employment and training
services.
Research Objectives:
To address the role of one-stops in serving older workers, we examined:
* Labor‘s actions to help one-stops link employers and older workers;
and:
* one-stops‘ actions to help employers hire and retain older workers.
Scope and Methodology:
We interviewed Labor officials and reviewed Labor documents related to
one-stops and older workers.
We conducted two Web-based surveys using a stratified random
probability sample of 334 one-stops of more than 1,600 one-stops and
311 of their corresponding local Workforce Investment Boards
(WIBs).[Footnote 3] We received survey responses for 245 (73 percent)
of the one-stop centers, and 256 (82 percent) of the WIBs. All
percentage estimates presented from the surveys have margins of error
within plus or minus 8 percentage points, unless otherwise noted.
We used Census data to estimate the number of older workers residing in
the areas served by the one-stops.
We interviewed officials from 11 one-stops. We selected these one-stops
based on our review of survey responses regarding the most effective
practice they used in serving older workers. These one-stops were
located in the following states: California, Colorado, Illinois,
Michigan, Minnesota, New York, South Carolina, Tennessee, Texas, and
West Virginia.
Summary of Key Findings:
Labor has proposed action steps that one-stops may take to link
employers and older workers and has ongoing efforts to promote
employment for older workers to a wider audience. While Labor knows
little about the results of these efforts, planned evaluations may
provide some information about the impact of WIA services on older
workers.
Based on our survey results, we estimate that most one-stops took
multiple actions to link employers and older workers. One-stop
officials identified some actions as most effective, such as training
staff to assist older workers, and often used multifaceted approaches.
Several factors, for example, the local economy, might affect what
actions one-stops take to serve older workers. One factor, performance
measures, may create disincentives for serving older workers.
Background:
One-Stops and One-Stop Programs:
WIA requires states and localities to provide the employment and
training services of 16 federally funded programs through the one-stop
career center system.
Table: One Stop Programs:
Descriptions of selected programs and listing of other programs.
Program: Senior Community Service Employment Program (SCSEP);
Description: Eligibility is restricted to persons age 55 or older who
are low-income and have poor employment prospects; provides them
subsidized, part-time, community service work-based training.
Program: WIA Adult Program;
Description: All persons aged 18 or older are eligible to receive
services; priority for intensive services and training given to
recipients of public assistance or low-income individuals when funds
are limited.
Program: WIA Dislocated Worker Program;
Description: Serves individuals who have been laid off or received
notification of layoff, and are unlikely to return to their previous
employment.
Program: Wagner-Peyser;
Description: Provides services to help job seekers find employment and
help businesses find qualified workers.
Program: Trade Adjustment Assistance;
Description: Assists workers in the manufacturing sector who lose their
jobs as a result of trade.
Program: Other One-Stop Programs;
Description: Veterans‘ Employment and Training programs, Unemployment
Insurance, Job Corps, Employment and Training for Migrant and Seasonal
Farm Workers, Employment and Training for Native Americans, Vocational
Rehabilitation Program, Adult Education and Literacy, Vocational
Education (Perkins Act), Community Services Block Grant, WIA Youth, HUD-
administered employment and training.
[End of table]
Proportion of Older Persons Throughout the United States:
Figure: Proportion of Older Perdons of All Persons Near Their Closest
One-Stop:
This figure is a map of the United States with shading showing the
proportion of older persons near their closest one-stop. The colors
represent 17.7 percent or less, 17.8 to 19 percent, 19.1 to 20.5
percent, and more than 20.5 percent.
Source: 2000 Census data. The analysis uses the category 50 to 69 years
of age for older persons.
[End of figure]
Finding One: Actions Labor Has Taken:
Labor Has Advised One-Stops on Linking Employers and Older Workers, but
Knows Little About the Results of Its Efforts:
Overview:
Labor proposed action steps for one-stops to improve services for older
workers in addition to its other efforts to promote employment for this
population.
However, Labor knows little about whether one-stops have implemented
its proposed action steps or the results of its efforts.
Labor Has Proposed Action Steps for One-Stops to Improve Services for
Older Workers:
Protocol for Serving Older Workers (January 2005):
Although WIA does not require one-stops to target older workers or
provide specific services, Labor issued the Protocol to provide a set
of action steps that one-stops may take to connect employers and older
workers. For example, Labor encouraged one-stops to:
* Work with employers to refer older workers to appropriate job
openings;
* Educate businesses about alternative work arrangements that may
appeal to older workers;
* Provide personalized post-placement services to ensure older workers
retain and advance in their jobs.
Labor Also Has Broader Efforts to Promote Employment for Older Workers:
Interagency Taskforce on the Aging of the American Workforce:
Labor and other relevant federal agencies published recommendations in
February 2008, some related to one-stop services, to address key issues
facing older workers. For example:
* Coordinate federal agencies‘ research on older workers, including
exploring the most effective strategies for serving this population,
* Create a tool to enable one-stop staff to determine the number and
characteristics of older workers in their area, and:
* Raise public awareness of one-stops as a place for older jobseekers
and employers to connect.
Labor officials highlighted other efforts relevant to older workers:
* Two webinars since 2005, such as one featuring community college
programs for older workers;
* Conference sessions, including one in 2007 profiling a senior-focused
one-stop.
* Annual National Employ Older Workers Week, including activities like
award ceremonies and job fairs.
* Business Relations Group, which has sponsored a forum exploring
challenges to and solutions for attracting and retaining older workers
While these efforts may reach a wider audience, Labor‘s efforts
primarily focus on a program targeted to low-income older workers:
* The SCSEP is restricted to low-income older adults and places
participants in community service positions where the federal
government subsidizes their salary through grants to states and
national organizations.[Footnote 4]
* Labor has noted the program‘s limited capacity for serving older
workers. In 2006, SCSEP had 92,000 participants”less than 1 percent of
the 9.4 million people in the U.S. 55 and older meeting income
requirements.[Footnotes 5]
Labor Knows Little About How Its Actions Have Influenced Services to
Older Workers:
Labor does not know how one-stops are using the Protocol:
* Labor officials told us they have not sought any feedback on the
Protocol from states or local areas, because they focus their oversight
efforts on states‘ compliance with laws and regulations.
None of the one-stops we interviewed reported using the Protocol:
* Labor did not require one-stops to take any actions as a result of
the Protocol and none of the one-stops we interviewed reported using
it.
* Just 5 of the 11 one-stop officials we interviewed were familiar or
vaguely familiar with it.
Planned WIA Evaluations May Provide Some Information on Impact of
Services on Older Workers:
Labor recently began a short-term evaluation of the impact of receiving
certain WIA services on employment, earnings, and job
retention.[Footnote 6]
Labor is also planning a random assignment evaluation examining the
cost effectiveness of WIA programs and their impact on participants‘
post-program employment and earnings.[Footnote 7] Labor estimates the
study will take 7 years to complete.
Both evaluations will look at older workers as a subgroup of WIA
participants.[Footnote 8]
Finding Two: Actions One-Stops Have Taken:
Most One-Stops Took Multiple Actions to Link Older Workers and
Employers:
Overview:
Most one-stops took multiple actions outside of SCSEP to link older
workers and employers.
Several factors may independently affect these actions, including
Labor‘s performance measures, which may serve as a disincentive to
serving older workers.
Based on our survey results of one-stops‘ actions we estimate* that:
71 percent of one-stops took more than one action to link older workers
and employers outside of SCSEP.
The most prevalent actions one-stops took outside of SCSEP can be
categorized as follows:
Figure: Percentage of one-stops takin specific actions:
This figure is a vertical bar graph showing percentage of one-stops
taking specific actions.
Preparing older workers;
Provided job search assistance: 52.
Preparing older workers;
Assisted in resume and interview skills: 52.
Preparing older workers;
Provided self-paces training courses: 46.
Preparing older workers;
Provided targeted counseling: 40.
Marketing to older workers and businesses;
Marketed to organizations representing older workers: 35.
Marketing to older workers and businesses;
Marketed to specific employers: 35.
Training one-stop staff;
Trained one-stop staff on serving older workers: 44.
[See PDF for image]
Source: GAO analysis of survey results.
* All estimates have a margin of error with =/- 8 percentage points.
[End of figure]
Based on our survey results, we estimate* that the percentage of one-
stops that took other actions outside of SCSEP to specifically link
older workers and employers are as follows:
Figure: Percentage of one-stops taking specific actions:
This figure is a vertical bar graph showing percentage of one-stops
taking specific actions.
Provided skills training for groups of older workers: 28.
Coordinated with local community college to provide training: 28.
Educated employers on offering flexible work arrangements: 27.
Conducted mass marketing directly to older workers: 22.
Conducted mass marketing to employers: 22.
Held job fair for older workers: 16.
Provided on-site recruiting to individual employees: 15.
Source: GAO analysis of survey results.
* All estimates have a margin of error within +/- 8 percentage points.
[End of figure]
Most One-Stops Took Actions to Help Employers Retain Older Workers:
Based on survey results of one-stops‘ actions we estimate* that:
* 60 percent of one-stops provided employers with information/education
about ways to retain older workers, which could include offering
flexible and reduced work schedules.
* All estimates have a margin of error within +/- 8 percentage points.
One-Stop Officials Identified Some Actions as Most Effective, and Often
Used Multi-faceted Approaches:
Based on our survey results, the actions outside of SCSEP that were
identified as most effective by largest number of one-stops included:
* resume writing,
* interviewing skills,
* job searches, as well as:
* training of one-stop staff on how to assist workers.[Footnote 9]
One-stop officials we interviewed noted that while the first three
services were available to all job seekers, these services were
particularly helpful to some older workers who, by virtue of their long
work histories with few employers, may have less experience in these
areas.
One-Stop Officials Described Multi-faceted Approaches to Linking Older
Workers and Employers:
Example 1: The one-stop provided older workers laid off from a food
processing plant with language instruction, construction and
maintenance skills, and basic skills courses. The One-Stop provided
assistance on how to complete a job application and how to interview,
which many of the workers had never done before. Through job search
assistance, the one-stop placed some of the workers in new jobs and
assisted others in self-employment.
Example 2: The one-stop provided weekly classes on resume writing and
interviewing skills, noting some older workers‘ lack of experience in
this area. The one-stop also encouraged older workers to take computer
classes. Additionally, the one-stop used an assessment profile to match
job applicants with available positions.
Example 3: The one-stop provided older workers with one- on-one
counseling and career assessment. In addition, the one-stop held a
special workshop once a month specifically for older workers. The
workshop covered how to use the internet, e-mail, and how to look for
jobs.
Example 4: The one-stop held an annual job fair specifically for older
workers. The one-stop registered job fair participants and followed up
with them. A portion of the workforce center space, including computers
and other resources, is set aside specifically for older workers.
Several Factors Might Independently Affect What Actions One-Stops Take:
Employment Status and Full-or Part-time Work Preference:
Based on the results of our survey, we estimate that one-stops were
about equally split between whether most of the older workers they
served had been laid off or were returning to work after having been
out of the workforce. This could affect actions one-stops take, such as
in marketing their services to older workers and employers and the
counseling services they provide to older workers.
Table:
Estimated percentage of one-stops: 46;
Most of the older workers they serviced were: Laid off and looking for
full-time work (displaced workers).
Estimated percentage of one-stops: 47;
Most of the older workers they serviced were: Returning to work and
looking for full-time or part-time work.
Estimated percentage of one-stops: 8;
Most of the older workers they serviced were: Seeking to go from full-
time to part-time employment.
* All estimates have a margin of error within +/- 8 percentage points.
Based on our survey results we estimate that 99 percent of one-stops
post information on part-time or seasonal jobs through one or more
programs.
[End of table]
Independent Factors: Workers‘ Skills and How They Match With Employers‘
Needs:
Based on our survey we estimate:
Older persons served at one-stops have a variety of skill levels. For
example, the percentage of older workers who were primarily low-skilled
and served through the WIA adult program was higher than the percentage
of those workers served through the more restrictive WIA dislocated
worker program.
Older persons‘ skills may match with employers‘ needs differently. The
percentage of older workers whose skills were minimally well-matched
was higher for the WIA adult program than for the WIA dislocated worker
program.
Some one-stop officials we interviewed told us that when there are
mismatches between worker skills and employer needs, they emphasize
improving workers', skills or outreach to employers that have needs
that match the workers' current skills.
Independent Factors: Proportion of Older Persons Did not Affect
Outreach to Employers:
The proportion of older workers located in one-stops‘ geographic areas
did not affect whether the one-stops were more or less likely to reach
out to employers, according to our review of our survey data and Census
data.[Footnote 10]
Independent Factors: Economic Conditions:
Some one-stop officials said that local economies present different
employment opportunities and challenges for serving older workers that
might affect actions they take.
Low unemployment, growth in retail, service, and other business: One-
stop officials in these areas described high levels of employer
interest in hiring older workers and found direct contacts with
employers and job fairs helpful. The officials also described a variety
of flexible and part-time employment opportunities for older workers.
High unemployment, declines in major industries, such as automotive and
steel industries: One-stop officials identified the need to provide
older workers with training and they noted difficulty in finding these
workers jobs that provide similar wages to their former jobs.
Independent Factors: Performance Measures
WIA earnings measure may discourage some one-stops from serving older
workers:
* Serving older workers”who are more likely to work part-time and have
lower wages”could lower performance on the measure tracking
participants‘ average earnings.
* Half of the one-stops we interviewed said performance measures
created a disincentive to serve older workers, but only a few reported
the measures actually influenced how they served older workers.
* We have recommended Labor examine this issue”and Labor included it as
an action step in its Protocol”but little action has been taken to
date.[Footnote 11]
Concluding Observations:
We have previously recommended that Labor assess the impact of WIA
programs. Labor officials told us that they have initiated this
process, and it will be important that they follow through in a timely
manner. The data Labor plans to collect on older workers may provide
insights into how older workers are faring and ways the workforce
system can better serve them.
While one-stops are actively engaging older workers and employers, the
average earnings performance measure could still be discouraging some
one-stops from investing significant staff time and resources into
serving older workers whose training and employment needs, such as the
desire to work part-time, may not be well-matched with this performance
measure. We have previously recommended that Labor assess the potential
for such disincentives, and we continue to believe that doing so would
be worthwhile.
Related GAO Products:
Older Workers: Some Best Practices and Strategies for Engaging and
Retaining Older Workers. GAO-07-433T. Washington, D.C.: February, 28,
2007.
Highlights of a GAO Forum: Engaging and Retaining Older Workers. GAO-07-
438SP. Washington, D.C.: February 28, 2007
Older Workers: Labor Can Help Employers and Employees Plan Better for
the Future. GAO-06-80. Washington, D.C.: December 5, 2005.
Older Workers: Employment Assistance Focuses on Subsidized Jobs and Job
Search, but Revised Performance Measures Could Improve Access to Other
Services. GAO-03-350. Washington, D.C.: January 24, 2003.
Older Workers: Demographic Trends Pose Challenges for Employers and
Workers. GAO-02-85. Washington, D.C.: November 16, 2001
[End of section]
Appendix II: Comments from the Department of Labor:
U.S. Department of Labor:
Employment and Training Administration:
200 Constitution Avenue, N.W.:
Washington. D.C. 20210:
April 7, 2008:
Mr. George A. Scott:
Director:
Education, Workforce and Income Security Issues:
U.S. Government Accountability Office:
441 G Street, NW:
Washington, D.C. 20548:
Dear Mr. Scott:
This letter is the Department of Labor's response to the Government
Accountability Office (GAO) Draft Report No. 08-548 entitled, "Most One-
Stop Career Centers are Taking Multiple Actions to Link Employers and
Older Workers." We appreciate the opportunity to comment on the draft.
In general, the draft report is quite positive about the actions One-
Stop Career Centers are taking to serve and train older workers. The
information GAO has collected on the activities for older workers in a
number of One-Stops is also very helpful. The Employment and Training
Administration (ETA) has attempted to take the lead in looking at the
broader impacts of the aging workforce. This is evidenced by ETA's
leadership of the Taskforce on the Aging of the American Workforce. As
noted in the GAO report, the Taskforce released its report and
recommendations in February 2008. Subsequently, the Taskforce held a
meeting on implementing strategies identified in the report. ETA and
the Taskforce will continue to pursue strategies that support full
engagement of older workers in the workforce.
With reference to planned evaluations mentioned in the report, ETA has
begun the Workforce Investment Act (WIA) Quick Net Impact evaluation,
which is examining the impacts of WIA Adult and Dislocated Worker
programs. Within these programs, this quasi-experimental evaluation
will examine net impacts by subgroups. At a minimum, subgroups will
include age groups (including those 50 and over), race/ethnicity,
gender and veteran status. We anticipate the results from this
evaluation by December 2008. In addition, we plan to begin the WIA Gold
Standard Evaluation, which will utilize random assignment methodology
to provide net-impacts on employment, retention and earnings, and
benefit-cost analyses of WIA overall.
ETA is aware of the perception that the Federal performance measures
can create a disincentive to serving "special" or "hard-to-serve"
populations. The average earnings measure was specifically cited as
creating a disincentive to serving older workers. GAO notes that older
workers are more likely to work part time and have lower wages, but ETA
has not found that older individuals participating in WIA have lower
earning levels. Initial analysis of the outcomes for individuals who
completed participation in the WIA Adult and Dislocated Worker programs
during the two most recent Program Years showed that the average
earnings for those 55 years and older were actually higher than those
workers under 55 years old.
The performance negotiations process that already exists can help
minimize any disincentive to serving older workers, if used properly
and translated to the negotiations process states engage in with their
local areas. The most recent guidance on performance negotiations
issued by ETA to the workforce investment system, Training and
Employment Guidance Letter (TEGL) 19-06, Negotiating Performance Goals
for the Workforce Investment Act Title 1B Programs and Wagner-Peyser
Act Program for Program Years 2007 and 2008, explicitly states, "[w]hen
negotiating goals for the Adult program, states proposing new efforts
to increase access to services for special populations that may face
significant barriers (such as older workers, individuals with
disabilities, migrant or seasonal farmworkers, Indian and Native
American, or Temporary Assistance for Needy Families (TANF)
recipients), should provide data to show how WIA Adult, WIA Dislocated
Worker and Wagner-Peyser Act outcomes will be impacted." This guidance,
along with Attachment VII of the TEGL, which shows the historical
impact of specific customer characteristics on outcomes, should enable
the states to negotiate performance levels and expectations consistent
with the demographics and population they plan on serving, including an
increasing percentage of "older worker" clientele.
In addition, ETA intends to continue to explore the issues surrounding
performance. To that end, a cross-functional performance team has
recently been convened that will be examining how the performance
accountability system can be made flexible enough to avoid a
disincentive to strategic initiatives, such as expanding access to
untapped labor pools, as well as appropriate methodologies to set
performance targets.
Finally, the GAO may wish to consider adding the Alternative Trade
Adjustment Assistance program to the table of One-Stop programs on page
11 of the report. The program allows older workers, for whom retraining
may not be appropriate, to accept reemployment at a lower wage and
receive a wage subsidy.
The Department of Labor looks forward to working with the public
workforce investment system to promote opportunities for participation
of older workers in the labor force. In addition, enhanced training
opportunities provided through the Senior Community Service Employment
Program will increase the talent pool of older workers thus expanding
linkages between employers and older workers.
Sincerely,
Signed by:
Douglas F. Small:
Deputy Assistant Secretary:
[End of section]
Footnotes:
[1] We conducted a stratified random probability sample of 334
comprehensive one-stops of 1,684 one-stops, and 311 of their
corresponding WIBs. We received 245 (73 percent) one-stop survey
responses and 256 (82 percent) corresponding WIB survey responses.
[2] For further information on SCSEP, see the testimony: GAO, Senior
Community Service Employment Program: Labor Has Made Progress
Implementing Older Americans Act Amendments of 2000, but Challenges
Remain, GAO-06-549T (Washington, D.C.: Apr. 6, 2006).
[3] Some local WIBs oversee multiple one-stops.
[4] Participants must be 55 or older and have a family income of no
more than 125 percent of the federal poverty level. See GAO-03-350 for
more information on the Senior Community Service Employment Program.
[5] About 14 percent of Americans 55 and older (or 9.5 million) were
living below 125 percent of the poverty level in 2006. U.S. Census
Bureau, Current Population Survey, Annual Social and Economic
Supplement, 2007.
[6] The evaluation will assess the impact of core and intensive
services on participants‘ earnings, employment, and job retention.
[7] WIA Adult, Dislocated Workers and Youth Programs.
[8] According to Labor, the random assignment impact evaluation will
include participants 55 and older and the short-term evaluation will
include workers 50 and older, among other age groups.
[9] The survey asked the respondent to identify the one-stop‘s three
most effective actions.
[10] The Census data used excludes the Virgin Islands.
[11] To reduce the incentive to serve only those who will help meet
performance levels, we recommended in 2004 that Labor systematically
adjust expected performance levels to account for different populations
and local economic conditions, while still allowing states to negotiate
their own goals with Labor. See GAO, Workforce Investment Act: States
and Local Areas Have Developed Strategies to Assess Performance, but
Labor Could Do More to Help, GAO-04-657, (Washington, D.C.: June 1,
2004).
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