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Department of Labor: d04657

Department of Labor: d04657

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Published by: Department of Labor on Jan 27, 2008
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Report to Congressional Requesters
United States General Accounting Office
June 2004
WORKFORCEINVESTMENT ACTStates and Local AreasHave DevelopedStrategies to AssessPerformance, butLabor Could Do Moreto Help
www.gao.gov/cgi-bin/getrpt?GAO-04-657.  To view the full product, including the scopeand methodology, click on the link above.For more information, contact Dianne Blank at(202) 512-5654 or blankd@gao.gov.Highlights ofGAO-04-657,a report to
June 2004
States and Local Areas Have DevelopedStrategies to Assess Performance, butLabor Could Do More to Help
WIA performance data provide a long-term national picture of outcomes, butthese data offer little information about current performance and represent asmall portion of job seekers who received WIA services. UnemploymentInsurance wage records—the primary data source for tracking WIA performance—provide reliable outcome information over time. But theyhave shortcomings, such as not including some categories of workers, andconsiderable time lags before data are available. Many states rely onalternative data sources to fill gaps in the wage records. However, the timebetween when a participant receives services and when their outcomes arereported to Labor can range from about 1½ to 2½ years or longer. Inaddition, states’ annual reports reflect only a small portion of job seekerswho receive WIA services because of restrictions in the law and policies of Labor.With assistance from states, many local areas collect interim outcomeinformation from former participants or employers and use other interimindicators to track WIA performance levels long before wage record data areavailable. However, states and local areas would like more help from Laborin disseminating best practices on interim performance measures. Inaddition, these efforts tell them little about the performance of their overallone-stop systems. Many states and local areas rely on other indicators—jobseeker measures, employer measures, program partnership measures, andfamily and community indicators to assess their one-stops.Labor has taken steps to improve WIA’s performance system and assess one-stops, but could do more. Although Labor is studying adjustment methodsthat could better take into account local differences when negotiating performance levels, it has not committed to using such a method nationally.Labor also has efforts to improve the quality of WIA’s performance data andis developing a set of common measures for one-stop partner programs. Yetas part of the common measures, Labor plans to restrict the use of alternative data. Labor has also delayed plans to conduct an impactevaluation and will not meet its statutory requirement to do so by 2005.
Time Delay in Reporting Employment Outcomes is a Minimum of 17 Months
Source: U.S. Department of Labor TEGL 7-99 and TEGL 14-03.
Program year 2002(year being reported on)Program year2003
July- Sept. 02Oct.-Dec.02
Apr.-June03July-Sept.03Oct.-Dec. 03
Annual report due to Labor 12-1-03 Gets a  job Outcome data collected & compiled Participates in & exits WIA
17 months from participation untiloutcomes reported
With rising federal deficits andgreater competition for publicresources, it is increasinglyimportant for federal programs,such as the Workforce Investment Act (WIA) programs, to showresults. This report examines (1)how useful WIA performance dataare for gauging program performance; (2) what local areasare doing to manage their WIA performance and assess one-stopson a timely basis, and how statesassist these efforts; and (3) theextent to which the Department of Labor is trying to improve WIA’s performance measurement systemand assess one-stop success.GAO recommends that Laborcontinue to allow supplementaldata for reporting outcomes; assiststates and localities in sharing promising practices on interimindicators; develop a systematicmethod to account for different populations and economicconditions when negotiating performance levels; and expeditesteps to implement an impactevaluation of WIA services. GAOalso suggests that Congress maywish to consider requiring that allWIA participants be tracked forreporting purposes. Labor generallyagreed with our findings andrecommendations, but it did notagree with our recommendation toexpedite WIA’s impact evaluation.GAO believes that expediting thisevaluation is essential to help policymakers assess WIA’seffectiveness.
 Page i GAO-04-657 Workforce Investment Act
Results in Brief 3
Background 5
WIA Performance Data Provide a Long-Term National Picture of Outcomes, but Are Less Useful for Gauging CurrentPerformance and Represent a Small Portion of WIA Participants 11
States and Local Areas Manage WIA Performance and Assess One-Stops by Collecting Timely Data and Making Use of a Range of Performance Information 21
Labor Has Taken Actions to Improve WIA’s PerformanceMeasurement System and Assess One-Stops but Could Do More 32
Conclusions 39
Recommendations For Executive Action 41
Matter for Congressional Consideration 41
 Agency Comments 42
 Appendix I Objectives, Scope, And Methodology
 Appendix II States’ Use of UI Wage Records and Other DataSources for Reporting on Employment OutcomesUnder WIA
 Appendix III Comments from the Department of Labor
 Appendix IV GAO Contacts and Staff Acknowledgments
55GAO Contacts 55
Staff Acknowledgments 55
GAO Related Products
Table 1: Performance Measures and Allowable Data Sources forthe WIA-Funded Programs 8

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