DOL Annual Report, Fiscal Year 2007
Performance and Accountability Report

Strategic Goal 2: A Competitive Workforce

Meet the competitive labor demands of the worldwide economy by enhancing the effectiveness and efficiency of the workforce development and regulatory systems that assist workers and employers in meeting the challenges of global competition.

The nation's future economic success will largely depend on a workforce that meets employers' needs for new and skilled workers. Through partnerships with State and local workforce agencies, business and industry, education and training providers, faith-based and community organizations, and economic development agencies, DOL makes strategic investments in job training and increase accessibility and quality of information that helps match workers with employers. The current competitive economic environment requires a regulatory structure in which benefits of regulations exceed their costs. DOL conducts reviews to determine if regulations have or will have a significant economic impact on a substantial number of small businesses. These reviews examine the regulations' compliance costs and whether the regulatory burdens of all employers, both large and small, are reduced. In today's global economy, the well-being of American workers is increasingly tied to international stability, which is in part a function of broad-based economic prosperity. DOL-supported international technical assistance programs focus on raising living standards through workplace-related interventions, supporting the expansion of free and fair trade, eliminating exploitive child labor, and promoting the basic rights of workers. DOL agencies and offices supporting this goal are:

• Employment and Training Administration (ETA),
• Office of Disability Employment Policy (ODEP),
• Office of the Assistant Secretary for Policy (OASP), and
• Bureau of International Labor Affairs (ILAB).

To support expansion of Whirlpool manufacturing operations in Ohio, the Governor’s office committed $1.2 million in customized workforce services as part of an incentive package connected with the company’s acquisition of Maytag. As operator of the local One-Stop Career Center, Marion Connections was charged with securing a workforce to support Whirlpool’s implementation of a weekend production operation which would create 500 jobs within 90 days. This challenge involved recruiting, application screening, testing, interviewing and referring for hire. Results met project goals and greatly exceeded Whirlpool’s expectations. Due to the success of this initial partnership, Whirlpool (the county’s largest employer) has designated Marion Connections as its exclusive portal to employment. To date, over 3,000 interviews have been conducted and over 1,500 job seekers have been hired. [Photo credit: DOL/ETA]

Fostering a competitive workforce means providing workers with training that meets the rapidly evolving workforce needs of employers. By connecting workers with those needs, DOL can more effectively place those workers in better paying, long-term jobs. DOL supports training efforts that tie directly into local economies — where jobs are located. To achieve this goal, DOL relies on a mix of programs that deliver training focused on the skills employers need to succeed. DOL tailors its programs to specific situations and workers whose skills are no longer in demand, individuals with disabilities, and veterans. DOL primarily measures its success by the numbers of individuals who find and remain in those jobs. In FY 2007, DOL helped more workers find jobs, improved foreign worker application processing for employers, and improved workers protections internationally.

For American Workers

• Greater percentages of older workers were still employed several months after completing training programs. In addition to finding a job, staying employed is an important measure of success.
• More policies and effective practices were developed to assist workers with disabilities.

For Employers

• Almost 100 percent of H-1B applications were processed within seven days of filing. Workers with H-1B visas help fill critical skill gaps.
• The timeliness of permanent labor certification applications increased.

For the International Community

• More children were removed or kept out of exploitive child labor worldwide.
• The number of countries better prepared to address child labor increased.

These national results are realized by meeting the needs of one worker and one employer at a time. Vignettes throughout this section provide stories about the individuals who benefit from programs in Strategic Goal Two. For more program-specific information, please see the Performance Goal narratives.

The following table provides key information, goal statements, and achievement for DOL performance goals associated with this strategic goal. Those with labels that begin with "06" operate on a Program Year (PY) basis, and are reporting on the period from July 1, 2006 to June 30, 2007 due to the forward-funding authorized in the Workforce Investment Act of 1998 (WIA). Results for Performance Goal 06-2D (Community Based Job Training Grants) are not reported because data are considered inadequate for the purpose of determining goal achievement.

Five of the ten performance goals in Strategic Goal 2 are for employment and training programs whose results are measured by entered employment rate (percent of participants who obtain jobs subsequent to receipt of services) and by employment retention rate (percent of those who obtained jobs who are still employed six months later). The charts below indicate these programs' current and previous year results. Earnings results are not included because the programs that measure earnings used different indicators prior to this year. Average earnings will be reported in FY 2008, when we expect to have comparable data for these programs. Significant differences in results between programs are generally explained by differences in types of services offered and populations served.

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The net cost dedicated to Strategic Goal 2 in FY 2007 was $5.027 billion. The first pie chart below is based on total Departmental costs of $47.872 billion; the second is based on an adjusted net cost of $12.771 billion that excludes the major non-discretionary program costs associated with Strategic Goal 4.² Net cost dedicated to Strategic Goal 2 in FY 2006 (restated to reflect current goal structure) was $5.064 billion.

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Samson thought he knew everything about cars since his father had opened an auto repair shop in his native Ethiopia. But when he entered the General Service Technician (GST) program at Shoreline Community College, Samson realized how challenging modern car repair had become. The program, funded through the President’s High Growth Job Training Initiative, provides industry-certified automotive technician training. In addition to learning about automotive repair, Samson also says he has become a better listener and communicator. He graduated from the program in 2006 and is now working full-time. Samson aspires to become a National Institute for Automotive Service Excellence-certified repairman. Samson believes, “My goal of having my own repair shop is in sight. The sacrifice has been worth it. I’m on my way to achieving my dream.” [Photo credit: Mark Cutshall]

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Increase Employment, Retention, and Earnings for Qualified Adults

Performance Goal 06-2A (ETA) — PY 2006

Increase the employment, retention, and earnings of individuals registered under the Workforce Investment Act Adult Program.

Program Perspective and Logic
The Workforce Investment Act (WIA) Adult Program helps adult workers (unemployed and employed) acquire the skills they need to compete in a global economy. Funds are provided by formula to States, which operate statewide networks of One-Stop Career Centers to provide comprehensive services to workers and employers. Services include assessments of skills needs, individual career planning, occupational skills training, on-the-job training, skills upgrading, entrepreneurial training, and adult literacy activities. States also use the WIA Adult Program to leverage additional, non-Federal resources to increase the quality and variety of assistance. Through collaboration with program partners, the WIA Adult Program seeks to assist individuals in their career goals, reduce welfare dependency, and improve the quality, productivity and competitiveness of the nation's workforce.

The Department evaluates this program's success using the Federal job training program common measures: entered employment and employment retention rates, and average earnings. A high entered employment rate indicates that participants have improved financial opportunity. A high retention rate indicates stability of participants' new positions. Increased average earnings indicate that participants are getting better jobs. Future performance targets will reflect performance information and data analysis.

Jamie, a single mother of a 22-month old girl, entered the Starke County WorkOne Office in February seeking help to attain marketable skills. Within three weeks of her initial appointment at WorkOne, Jamie was enrolled in high-growth occupational training to become a Certified Nurses Aide (CNA), her first step toward self-sufficiency. Using Workforce Investment Act funds to pay for her tuition and supportive services, Jamie was able to complete her CNA training and certification in April. She began working the next day at Wintersong Village, a local nursing facility in Knox, Indiana. With the assistance of a local faith-based organization, Jamie acquired her own home. Jamie is continuing her education at IVY Tech. [Photo Credit: Dean Corey]

Analysis and Future Plans
The performance goal for the WIA Adult Program was not achieved. However, DOL reached two of the program's three performance indicator targets. The exception was the entered employment rate of 69.7 percent, which fell six percentage points below the target. As the workforce investment system moves to an integrated service delivery model with broader reach through co-enrollment efforts involving those with lower statistical success such as traditional Wagner-Peyser Act employment services recipients, some drop-off in the entered employment rate was expected. Thus, program performance must be viewed in the context of strategic approaches such as program integration and co-enrollment. The employment retention rate of 82.2 percent reached the target; this means people who find a job are staying employed. Six month average earnings of $11,850 also reached the target. Continued progress in this indicator will help show the workforce investment system's effectiveness in preparing and placing workers in high growth, high wage industries.

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Key strategies to improve services to WIA participants include strengthening strategic partnerships (through strategic planning and grant application requirements) with business and industry, and the education community to develop workforce solutions in the context of State and regional economies. These partnerships promote the use of WIA resources to prepare workers for jobs with career pathways in high demand occupations and industries. Also, the Department expects its grantees to leverage a wide array of non-WIA resources to maximize the impact of WIA investments and prepare more workers with the skills they need to be successful in today's global economy. For example, many States and regions are align WIA funds with other economic development, education, and foundation dollars to transform their regions' talent development approach. The WIA Adult program plays a critical role in this process by preparing workers in new high-growth industries and occupations. Funds may also be dedicated to new talent development models. For example, many areas are placing additional emphasis on entrepreneurship training and lifelong learning.

In order to address employees' need to work and upgrade skills simultaneously, DOL encourages States to implement educational strategies for adult learners that are flexible and offer multiple entry and exit points. As part of the State planning process for PY 2007, many States emphasized their efforts to transform WIA and Wagner-Peyser Act formula funds to provide increased support for postsecondary education and lifelong learning opportunities that are aligned with State and regional talent development strategies.

Costs associated with this goal decreased five percent from PY 2005 to PY 2006. This partly reflects normal spending fluctuations since States have three years to expend obligated funds. Costs are allocated to the performance goal rather than at the indicator level, as funding supports all the outcomes for the Adult program.

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PART, Program Evaluations and Audits
The WIA Adult program underwent a PART review in 2005 and received a rating of Adequate. As required in the PART improvement plan, DOL is working with Congress to reform the WIA and consolidate funding for related programs to reduce administrative overhead and increase States' flexibility to tailor services. Common performance measures, allowing for comparison between various job training programs, have already been instituted. In addition, DOL is contracting an independent study of program effectiveness — using administrative data — to be completed in 2008. Also in 2008, a more rigorous, seven-year evaluation will begin to determine WIA services' impact on employment and earnings outcomes for participants. In the FY 2008 Budget, the Department is proposing to implement Career Advancement Accounts (CAAs). These personal $3,000 accounts are designed to help workers more efficiently access education and training options, and successfully transition to the global market place.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Very Good. Strengths of the data include its validity, accuracy and completeness. While verification remains an area for improvement, extensive effort has been directed at improving data quality through the use of ETA's data validation system and monitoring at both the national and regional levels (see item IX, Improving Performance Accountability of Grants in the Major Management Challenges section of Management's Discussion and Analysis). ETA drafted a revised Monitoring Guide for data validation in PY 2006 and is working to implement a streamlined performance reporting system in 2008.

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Assist Dislocated Workers

Performance Goal 06-2B (ETA) — PY 2006

Increase the employment, retention, and earnings of individuals registered under the Workforce Investment Act Dislocated Worker Program.

Program Perspective and Logic
The Workforce Investment Act (WIA) Dislocated Worker Program aims to quickly reemploy laid-off workers and to enhance their employability and earnings by increasing occupational skills. The Department allocates 80 percent of funds by formula to the States. The Secretary of Labor may use the remaining 20 percent for discretionary activities specified under WIA, including assistance to localities that suffer plant closings, mass layoffs or job losses due to natural disasters, and military base realignment and closures. The types of training services available to dislocated workers are occupational skills training, on-the-job training, skills upgrading, entrepreneurial training, job readiness training, adult literacy activities, and customized training for employers who commit to hiring. The Federal job training common measures assess this program's success. The entered employment rate measures the success of participants returning to work. The retention rate demonstrates if a participant has employment stability. Average earnings is a measure of salary after program intervention.

Analysis and Future Plans
The performance goal for the WIA Dislocated Worker Program was not achieved. The entered employment rate indicator result of 77.3 percent missed the target by seven percentage points. The Department is investigating the impacts of co-enrollment strategies (simultaneous participation in multiple employment and training programs) on performance. Lower outcomes for entered employment is likely a consequence of the broader reach of the program through co-enrollment efforts that include new customers such as trade impacted workers, whose entered employment rates have historically been lower than other dislocated workers. Thus, program performance must be viewed in the context of this strategic approach. The employment retention rate for dislocated workers nearly equaled last year's result, but missed the target by two percentage points. This may be due to residual impacts of the co-enrolled participant pool. In the first year of recording results for the average earnings measure, the program posted a result of $14,212, reaching the target. Continued experience with this indicator will help show the workforce investment system's effectiveness in preparing and placing people in high growth, high wage industries.

Many paper mills in Maine are closing due to foreign competition. Many of these displaced workers have specialized job skills that are not transferable to other industries. However, with the assistance of the WIA Dislocated Worker Program, Brian was able to receive the training to successfully compete in a changing economic environment. Brian was selected for the Radiological Technologist program, graduated with honors and was hired by the office where he completed his practicum. Today, Brian is a Certified Medical Assistant at the Family Medicine Institute. As a testament to his success, Brian states, “I love my job, and I work with great people.” Brian will attend Kennebec Valley Community College to complete that degree and his employer will pay for tuition. Great work Brian! [Photo Credit: Edward Upham]

DOL encourages and supports States and local areas to eliminate duplicative systems, to develop integrated service delivery strategies for dislocated workers, and to focus education and training investments on skills and occupations in demand. The Department is also developing strategies for a regional approach to workforce and economic development, and education. In instances of worker dislocations in PY 2007, DOL expects States and regions to provide increased support for postsecondary education and lifelong learning opportunities, and place additional emphasis on connecting dislocated worker populations to high growth occupations consistent with the region's talent development plans.

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Costs associated with this goal dropped six percent from PY 2005 to PY 2006, likely due to normal spending fluctuations since States have three years to expend obligated funds. Costs are allocated to the performance goal rather than at the indicator level, as funding supports all the outcomes for dislocated workers.

PART, Program Evaluations and Audits
The Dislocated Worker Program underwent a PART review in 2002 and received a rating of Adequate. The program has generally met its goals for increasing participants' reemployment and earnings after getting a new job, and program accountability has improved with the adoption of the new common measures (a PART recommendation), allowing for comparisons between various job training programs. However, the review found that States and local communities have insufficient flexibility to help dislocated workers. DOL has been working with Congress to reform the Workforce Investment Act to further consolidate funding for related programs to reduce administrative overhead and increase States' flexibility to tailor services. In addition, DOL is contracting an independent study of program effectiveness — using administrative data — to be completed in 2008. Also in 2008, DOL will sponsor a more rigorous, seven-year evaluation that will begin to determine WIA services' impact on employment and earnings outcomes for participants.

The Government Accountability Office conducted an evaluation titled, "Workforce Investment Act: Additional Actions Would Further Improve the Workforce System." To view a summary of findings, recommendations, and a link to the study, please refer to Performance Goal 06-2A.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Very Good. Strengths of the data include its validity, accuracy and completeness. While verification remains an area for improvement, extensive effort has been directed toward improving data quality through the use of DOL's data validation system and monitoring at both the national and regional levels (see item IX, Improving Performance Accountability of Grants in the Major Management Challenges section of Management's Discussion and Analysis). DOL drafted a revised Monitoring Guide for data validation in PY 2006 and is working to implement a streamlined performance reporting system in 2008.

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Improve Employment Outcomes for One-Stop System Users

Performance Goal 06-2C (ETA) — PY 2006

Improve outcomes for job seekers and employers who receive One-Stop employment and workforce information services.

Program Perspective and Logic
A fundamental underpinning of the nation's One-Stop Career Centers is the delivery of core employment and workforce information services to both businesses and job seekers. Core services include job matching, referral, assessments, and a wide array of workforce and labor market information, career guidance products and tools. Funded principally through the Wagner-Peyser Act, as amended by the Workforce Investment Act (WIA) of 1998, these services are designed to help both employed and unemployed workers obtain jobs and give employers access to skilled workers who will help them compete in the global economy. In addition to core services, the One-Stop Career Centers provide customized services to clients with special needs such as Unemployment Insurance claimants, veterans, and migrant and seasonal farm workers.

Providing employment and workforce information services that account for the uniqueness of local/regional labor market conditions and the needs of workers is the key to achieving successful outcomes for job seekers and employers. Services are provided in collaboration with a wide array of One-Stop partners and are coordinated with other services available through One-Stop Career Centers, such as training, child care, and transportation.

The Department uses the common measures for Federal employment and job training programs to evaluate its core employment and workforce information services: the entered employment rate, the employment retention rate, and average earnings. A high entered employment rate indicates that participants have improved financial opportunity. A high retention rate indicates stability of participants' new positions. Increased average earnings indicate that participants are getting better jobs.

Analysis and Future Plans
The performance goal for the Wagner-Peyser Act funded Employment Service system was not achieved. The entered employment rate of 61.0 percent and employment retention rate of 78.0 percent were both three percentage points below targets and two percentage points below PY 2005 performance. These measures gauge the workforce system's ability to bring together individuals who are seeking employment and employers who are seeking workers. The Employment Service system registers roughly 13 million participants a year, far more than other employment and training programs. Therefore, the lower results are driven, in part, by the system's universal approach for jobseekers and workers with a diverse range of skills and employment needs.

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This year marks the first time six months average earnings data was collected. The program posted a result of $11,576, which is lower than WIA Adult and Dislocated Worker Program results. Unlike the WIA programs, the Employment Service system does not provide training services and instead delivers core and intensive services to meet the needs of the customers. If additional services are required, these participants are referred to and co-enrolled in WIA programs.

Nicole came to the MontgomeryWorks One-Stop Career Center looking for a job. She had a limited work history and low self-esteem; her goal was to be able to “look someone in the eye.” Nicole had four children under the age of 5 and was receiving food stamps/housing from a program for battered women. Her school Individual Education Plan diagnosed her with learning disabilities. With services coordinated by the Disability Program Navigator (DPN), Nicole enrolled in the WIA Adult program and received occupational training related to computers and customer service, both high growth industries. Upon completion, Nicole’s skills were a match for a recipe consultant. In less than a year, she was promoted to a management position. The One-Stop DPN helped Nicole receive assistance with child care, transportation, occupational skills training and employment. Today, in her new career, Nicole can confidently look people in the eye! [Photo credit: Maggie Leedy]

To continually improve performance, DOL has aggressively expanded its work with employers in high growth, high demand industries through its Business Relations Group (BRG). In partnership with States, the BRG has collaborated with large multi-State employers as well as industry associations to broker their connection to the One-Stop delivery system. This partnership has helped identify the workforce needs of high growth industries and provides a forum for improved communication between industry and the workforce investment system.

In addition to working toward integrating the Wagner-Peyser Act funded employment services and WIA services, DOL strengthened its focus on the role of workforce information in the design and delivery of core, intensive and training services in the One-Stop delivery system. The Department will continue to provide direction and technical assistance in order to achieve a fully integrated workforce investment system focused on building the critical talent pool required for the 21st Century. The Department continues to work with States, regions and local areas to eliminate duplication of services provided through the One-Stop delivery system, and to focus on training investments on skills in demand to facilitate access to successful career pathways to individuals utilizing the services.

Costs associated with this goal decreased eight percent from PY 2005 to PY 2006. This reflects normal spending fluctuations since States have three years to expend obligated funds. Costs are allocated to the performance goal rather than at the indicator level, as funding supports all measured outcomes for participants.

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PART, Program Evaluations and Audits
The Employment Service underwent a PART review in 2004 and received a rating of Adequate. The review found that grantees' accountability for performance results was insufficient, and that the program duplicates some services offered by the WIA Adult and Dislocated Worker programs. To address the first finding, DOL accelerated implementation of the common measures for Federal job training and employment programs. As a step toward reducing unnecessary duplication of services, the Department will integrate reporting for the training programs and the provision of core services it oversees through the new Workforce Investment Streamlined Performance Reporting System (WISPR). Finally, DOL's proposed legislation to reauthorize the WIA combines the Wagner-Peyser Act funding for core services with those of WIA Adult, Dislocated Worker and Youth programs to minimize duplication of services and administration costs.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Very Good. Strengths of the data include completeness and validity. While verification remains an area for improvement, extensive effort has been directed towards improving data quality through the use of DOL's data validation system and monitoring at both the national and regional levels (see item IX, Improving Performance Accountability of Grants in the Major Management Challenges section of Management's Discussion and Analysis). ETA drafted a revised Monitoring Guide for data validation in PY 2006 and is working to implement a streamlined performance reporting system in 2008.

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Better Decision-making through Workforce Information

Performance Goal 06-2E (ETA) — PY 2006

Increase accessibility of workforce information through the National Electronic Tools.

Program Perspective and Logic
The State and national workforce information system supports the goal of increased accessibility of workforce information through the National Electronic Tools by integrating and broadly disseminating current, local information on high growth industries and occupations that is critical for planning and delivering demand-driven workforce services. Customers include employers, State and local partner organizations, and job seekers who find these information services useful for business and economic development, education, and individual career decision-making. The workforce information system consists of:

• Occupational Information Network (O*NET) — a database of occupational competency requirements (tasks, knowledge, skills, abilities, work activities, and other characteristics);
• Core products and services that describe State and local labor market dynamics, e.g., employment, wages, and skills in demand by industry and occupation;
• CareerOneStop national electronic tools that allow universal access to workforce information, including data on wages, occupations in demand, skills held and needed, and growth industries; and
• Workforce information services provided through the nationwide network of over 3100 comprehensive and affiliate One-Stop Career Centers.

The CareerOneStop electronic tools, Career Voyages, and the O*NET OnLine Web sites are designed to improve self-service options for customers of the public workforce investment system. Resources supporting these systems are used for technical assistance and emerging occupation research, to operate the Web sites, and to keep the databases current. Performance indicators gauge usefulness of the occupational information to the wide-ranging user community — business, educators, students, parents, and job seekers. Goal attainment over the last two years indicates more customers are using the self-service options to assist them in finding employment. Performance targets are based on past results and other external factors, such as changes in public demand for workforce information or in public participation in the data collection efforts.

The Key to Career Success campaign connects veterans and separating military service members to assistance and resources of One-Stop Career Centers nationwide. In November 2006, a Military Transition Portal was launched at www.careeronestop.org/militarytransition. The portal provides career information and links to services that help veterans and military service members successfully transition to civilian careers in high growth industries, including the wealth of resources available on CareerOneStop Web sites. [Photo Credit: DOL/ETA]

Analysis and Future Plans
The performance goal was achieved. Results for increased dissemination of O*NET data as measured by site visits reached the target, and future targets have been adjusted upward accordingly. Career Voyages and America's Career InfoNet reached targets for number of page views, reflecting increased public use of workforce information through the National Electronic Tools. These results indicate that workforce system partners, employers, career counselors, and the public recognize the usefulness and accessibility of the national electronic tools.

It has not yet been determined whether these are sufficient indicators to measure the performance of this activity in PY 2007 and beyond. Since the goal is to increase accessibility of workforce information, increasing usage of the information sites is one measure of performance indicating that there is demand for the data and information provided. To better gauge usability, the Career InfoNet Web site now includes a "Rate this Page" link in the header on all pages. This link provides users visiting the site an opportunity to give feedback on the usefulness of the information.

A significant component of the National Electronic Tools, America's Job Bank (AJB), was discontinued on June 30, 2007 because it duplicated services provided by private sector firms. Due to the uncertainty inherent in attempting to predict the impact of this closure on usage, a baseline for the efficiency measure (cost per page view) and a new baseline for America's Career InfoNet will be developed based on PY 2007 data.

Costs are allocated to the overall performance goal rather than at the indicator level, as funding supports all the outcomes for usage of Career InfoNet, O*Net, and Career Voyages. Although performance is no longer reported for AJB, the site was in operation for the full program year. The decline in costs due to actual cessation of AJB activities should be reflected in PY 2007.

PART, Program Evaluations and Audits
The workforce information system was included in the 2004 PART review of the Wagner-Peyser Act funded Employment Service grants, which received a rating of Adequate. None of the PART findings and recommendations addressed electronic tools specifically.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Very Good. Strengths of the data include completeness, accuracy, and reliability. Data for the O*NET, Career InfoNet, and Career Voyages indicators are gathered and validated by internal management information systems, which comply with industry standards and norms. However, the validity of Web site hits as a measure of impact is limited. While the usability of the Web sites may be inferred from increasing use, the data do not sufficiently link the use of the tools to employment outcomes. As discussed before, the Career InfoNet Web site now includes a "Rate this Page" link on all pages to provide users visiting the site an opportunity to give feedback on the usefulness of the information.

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Provide Older Americans Service and Employment Opportunities

Performance Goal 06-2F (ETA) — PY 2006

Assist older workers to participate in a demand-driven economy through the Senior Community Service Employment Program.

Program Perspective and Logic
The aging of the baby boomer generation presents both challenges and opportunities to the workplace. The Senior Community Service Employment Program (SCSEP) serves low income workers age 55 and older through formula grants to States and competitively awarded grants to public and private non-profit organizations. These funds provide part-time, minimum wage employment and job training services. The goal of the program is to promote self-sufficiency for older persons by placing them in unsubsidized employment. SCSEP grantees and their affiliates coordinate delivery of placement and training services through 3,100 comprehensive and affiliate One-Stop Career Centers nationwide. The program has served over 100,000 individuals each year for the last four years.

DOL uses the Federal job training program common measures — entered employment rate, employment retention rate and average earnings — to evaluate the success of SCSEP. These indicators measure participants' improved financial opportunity, stability of their new positions in unsubsidized employment, and effectiveness of training services, respectively. Targets for these measures are negotiated with each grantee based on past and projected outcomes, improvements in program design, and external economic factors.

Analysis and Future Plans
The performance goal for SCSEP was not achieved. The entered employment rate was six percentage points below the target and five percentage points below the PY2005 result. However, the employment retention rate was significantly higher than both the PY 2005 result and PY 2006 target. Targeting difficulties are largely due to incremental implementation of common measures among grantees. As indicated in more detailed discussion below, a new data collection and validation system is expected to resolve this issue. The new six month average earnings measure shows a result of $6,704.

To continually improve performance, the SCSEP program, through its partnership with the One-Stop delivery system, continues to identify occupational skills that are most in demand and aggressively expand its linkages to high growth industries and employers, in order to place its participants in unsubsidized jobs.

Connie was a SCSEP participant prior to being hired in March 2007 by the Northwest Regional Workforce Investment Board (NRWIB) to be the Payroll Clerk for MaturityWorks. NRWIB is a partner of The WorkPlace Inc. in MaturityWorks’ western Connecticut SCSEP program. Connie is responsible for making sure participants’ timesheets are accurate and submitted timely. Connie also tracks program performance data. NRWIB management stated, “We were more than willing to hire Connie when she came to us after the transition. She is an excellent asset to the organization, early to work and late to leave. Every pay period her payroll is on the money.” Connie celebrated her 90th birthday on June 2. [Photo Credit: Janiese Void]

Beginning July 1, 2004, SCSEP implemented a uniform database reporting system using client-based individual electronic records. While this has created complex operational requirements, it has also allowed the program to make strides in reporting timely, accurate, and reliable data. As more outcome data are received through the new reporting system, DOL will continue analyzing available data to negotiate ambitious and achievable targets for this population pool with the State and national agencies administering the program.

In addition to implementing the common measures for Federal employment and training programs, the SCSEP program has a set of statutorily defined indicators. These additional indicators measure the program's service level and service to those most-in-need; and the customer satisfaction of participants, host agencies, and employers. SCSEP achieved an exceptional response rate and very high scores on the American Customer Satisfaction Index (ACSI) for its customer satisfaction indicator.

Costs are allocated to the performance goal rather than at the indicator level, as funding supports all the measured outcomes for older workers. Costs associated with this goal rose primarily due to the transfer of $7.5 million of PY 2004 recaptured funds into PY 2006, to help grantees with transition expenses resulting from a new grant competition.

PART, Program Evaluations and Audits
The SCSEP underwent a PART review in 2005 and received a rating of Ineffective. In response to the PART, SCSEP launched the Performance and Results Quarterly (SPARQ) performance reporting system software in May 2006, which allows reporting of individual outcomes and integration of grantee reporting systems. The Department continues to work with Congress to update and strengthen the competitive grant process. For example, DOL increased the number of grantees and consolidated service delivery areas. DOL continues to implement the common measures for Federal employment and job training programs and adjust future performance targets to be ambitious but also more realistic. Common measures have replaced the former SCSEP placement and retention measures for PY 2007 and beyond.

Data Quality and Major Management Challenges
The data quality for this performance goal was rated Data Quality Not Determined, which represents a downgrade from the baseline rating of Good in FY 2006. Data are linked to program purpose and collected quarterly; however, they are not yet available from all grantees⁴ and there are unresolved issues with verification. In PY 2006, SCSEP implemented an Internet-based version of the SPARQ data collection system and in early PY 2007 the program began to implement a new data validation system. These efforts are expected to improve data reporting and overall quality.

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Help Trade-Affected Workers Find New Jobs

Performance Goal 07-2G (ETA) — FY 2007

Assist workers impacted by international trade to better compete in the global economy through the Trade Adjustment Assistance Program.

Program Perspective and Logic
DOL's Trade Adjustment Assistance (TAA) Program provides training, income support, and related assistance to workers who lose their jobs due to increased imports or shifts in production to foreign countries. TAA's goal is to return workers to suitable employment. The TAA Program is one component of integrated products and services available through the nationwide network of One-Stop Career Centers, including those funded under the WIA Adult and Dislocated Worker Programs and the Wagner-Peyser Act. The comprehensive readjustment services and benefits offered by the TAA Program include job search and relocation assistance; training that can include occupational, on-the-job and remedial training; income support, and access to Health Coverage Tax Credit benefits. The One-Stop system provides counseling, assessment, and placement services for TAA participants.

The TAA Program's success in an expanding, global economy is measured by the extent to which it helps individuals regain economic self-sufficiency by quickly securing and maintaining employment. Economic factors such as available labor and the ability to adapt that human capital to new uses appear to contribute importantly to reemployment; therefore, the TAA program is pursuing a regional workforce investment strategy designed to reach more workers and improve their access to training. Performance indicators are the Federal job training program common measures. The entered employment indicator tracks the program's progress in quickly returning participants to employment. The retention rate indicates whether participants who quickly obtain jobs are able to sustain employment, and average earnings serves as a measure of job quality.

Ryan and his fellow Alaskan fishermen suffered economic hardship when imported and farmed salmon began taking a heavy toll on the market. Because of the excellent partnerships available in Alaska, the training plan developed for Ryan was supported by multiple resources, including funds from the Trade Adjustment Assistance (TAA), National Emergency Grants for displaced salmon fishermen, and Dislocated Worker Program. TAA funded Ryan’s training at Kenai Peninsula College, where he earned his degree in Instrumentation and Process Technology. Today, Ryan is an Oilfield Operations Specialist; he has advanced quickly in his new career, increasing his income to about four times what he earned as a fisherman – more than $100,000 annually. Another successful story thanks to the Trade Act! [Photo Credit: Thomas Nelson, Alaska Department of Labor and Workforce Development]

Analysis and Future Plans
As indicated in the table and charts, the TAA Program reached targets for both of its indicators in FY 2007, achieving its goal. Results for the entered employment and the employment retention rates decreased following the 2001 — 2002 recession, then turned upward with the economic recovery. However, FY 2007 results for both indicators were below FY 2006 results. For average earnings, a baseline was established.

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DOL has made great strides in improving administrative efficiency as measured by average days to process petitions for determination of eligibility for TAA benefits. Average processing time has been reduced from 96 days to 31 days between FY 2003-2007. In FY 2003, the program completed just 60 percent of determinations within the 40 day statutory limit; in FY 2006, the TAA program completed over 78 percent of determinations within the limit — a 30 percent increase in efficiency.

Costs associated with this performance goal decreased by 19 percent between FY 2005-06 due primarily to a reduction in demand for Trade Readjustment Allowances (TRA) — which are the weekly cash benefits payable to allow trade-displaced workers to enroll in long-term TAA training. Participation, reflected by the number of individuals who received additional TRA benefits (which can be paid only when the individual is actually receiving training), decreased by almost one-third in FY 2006. This change appears to be an anomaly, and access to income support for training has returned to previous levels for FY 2007.

PART, Program Evaluations and Audits
The TAA Program underwent a PART review in 2007 and received a rating of Ineffective. Areas in need of improvement include reemployment assistance and procedures to measure and improve efficiency. The TAA Program is expected to be reauthorized by Congress; any adjustments in administration of the program will reflect the requirements of the reauthorized statute. ETA is studying how best to implement an efficiency measure tied to performance outcomes for all ETA programs.

In 2007, GAO completed studies on TAA funding allocation and eligibility requirements, industry wide certification, and program administration in preparation for Congressional hearings on reauthorization of the program, as described in the table below. As recommended, DOL is reviewing the training fund allocation methodology for opportunities to improve program effectiveness.

Data Quality and Major Management Challenges
Data quality for this performance goal was rated Fair. Strengths of the data are its accuracy and relevance; however, TAA can further improve timeliness, completeness, validity, reliability, and verifiability. An improvement plan includes 1) updating guidance to regional office staff on monitoring TAA data collection, quality control and reporting methods, and 2) implementing the new Workforce Investment Streamlined Performance Reporting System (WISPR), providing standards for all ETA-administered training and employment service programs.

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Address Worker Shortages

Performance Goal 07-2H (ETA) — FY 2007

Address worker shortages through Foreign Labor Certification Programs.