Strategic Plan for Fiscal Years 2006 – 2011

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Secretary's Message — Elaine L. Chao, Secretary of Labor

The publication of the Department of Labor's Strategic Plan for Fiscal Years 2006 — 2011 is the culmination of the Department's efforts to build on our results and solidify the priorities and directions for the future. The Department's goals have been refined in order to meet the challenges of the 21st Century.

While the new goal structure is similar to the one that has served us well in the past, the revised four goals listed below address the core of what the Department is all about: preparing workers to succeed; developing a demand-driven workforce system to remain competitive in the worldwide economy; protecting safety, health, wages, and other working conditions on the job; and ensuring that worker benefits, such as unemployment insurance and pension and health benefits, are there when they are needed. These new goals are:

• A Prepared Workforce
• A Competitive Workforce
• Safe and Secure Workplaces
• Strengthened Economic Protections

The first goal, A Prepared Workforce, seeks to provide effective training and support services to new and incumbent workers and to supply high-quality information on the economy and labor market.

The second goal, A Competitive Workforce, aims to meet the 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 worldwide competition.

The third goal, Safe and Secure Workplaces, focuses on ensuring that workplaces are safe, healthful, and fair; providing workers with the wages due them; providing equal opportunity; and protecting veterans' employment and reemployment rights.

The fourth goal, Strengthened Economic Protections, commits the Department to protect and strengthen economic security through effective and efficient provision of unemployment insurance and workers' compensation; ensuring union transparency; and securing pension and health benefits.

This Strategic Plan lays the foundation for an even stronger, more effective Department of Labor. The dedication and professionalism of the Department's employees have helped the Department meet the high standards set out in President George W. Bush's Management Agenda and positioned the Department to help the American workforce prepare for the challenges ahead.

Sincerely,

Elaine L. Chao
Secretary of Labor

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About DOL

Mission

The Department of Labor fosters and promotes the welfare of the job seekers, wage earners, and retirees of the United States by improving their working conditions, advancing their opportunities for profitable employment, protecting their retirement and health care benefits, helping employers find workers, strengthening free collective bargaining, and tracking changes in employment, prices, and other national economic measurements.

Vision

We will promote the economic well-being of workers and their families; help them share in the American dream through rising wages, pensions, health benefits and expanded economic opportunities; and foster safe and healthful workplaces that are free from discrimination.

Organization

The Department of Labor accomplishes its mission through component agencies and offices that administer the various statutes and programs for which the Department is responsible. These programs are carried out through a network of regional offices and smaller field, district, and area offices, as well as through grantees and contractors. The largest program agencies, each headed by an Assistant Secretary, Commissioner, or Director, are the Employment and Training Administration (ETA), Employment Standards Administration (ESA), Occupational Safety and Health Administration (OSHA), Mine Safety and Health Administration (MSHA), Veterans' Employment and Training Service (VETS), Employee Benefits Security Administration (EBSA), Pension Benefit Guaranty Corporation (PBGC), and the Bureau of Labor Statistics (BLS). Legal services are provided to the program agencies by the Office of the Solicitor (SOL). The Department's organization chart is located in Appendix C.

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Introduction

Americans should not fear our economic future, because we intend to shape it….And to keep America competitive, one commitment is necessary above all: We must continue to lead the world in human talent and creativity. Our greatest advantage in the world has always been our educated, hardworking, ambitious people — and we’re going to keep that edge...

— President George W. Bush, January 31, 2006, State of the Union Address

Almost a century ago, Congress established the Department of Labor (DOL) with a mission to foster, promote, and develop the welfare of the wage earners of the United States, to improve their working conditions, and to advance their opportunities for profitable employment. Today, that mission continues in a vastly different, global context. While the interests of wage earners remain a core value for the Department, its policies and programs have evolved to address the emerging needs of workers and employers in a competitive 21st Century economy. The Department of Labor fulfills its leadership role in this dynamic environment through the careful management of four strategic goals outlined in this Strategic Plan.

The Government Performance and Results Act (GPRA) of 1993 requires the development of a six-year, Departmental strategic plan that is to be updated every three years. The Department’s previous plan was issued in September 2003 and covered Fiscal Years 2003–2008. This updated Strategic Plan covers Fiscal Years 2006–2011 and represents a collaborative effort to carry out the vision for the Department over the next several years. The Plan provides a framework for DOL’s budgeting and planning activities and serves as a road map for DOL agencies to measure performance, refine strategies, and define priorities. With these clearly articulated goals and a transparent course of action, the Department of Labor is positioned to achieve and demonstrate real results for the American public.

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Meeting Tomorrow's Challenges Today

In our economy, the most precious resource is the talent and ingenuity of the American people. And there’s no limit to what the American people can achieve when they have the skill sets to compete and the freedom to make a better life for themselves and their family... This country has a moral and an economic obligation — a moral and an economic interest in seeing that our people have the skills they need to succeed in a competitive world...

— President George W. Bush, January 6, 2006, Chicago, Illinois

Over the last two decades, seismic changes have transformed the workplaces and business practices in this country and around the world. Toward the end of the last century, the U.S. economy shifted from one based on production to one based on information and services. New technologies gave rise to new products and new industries and transformed the way firms in established industries were organized and work was accomplished.

Today’s economy includes more dual income families, a more robust service sector, dramatically changing technological advancements, and increasingly global markets. In the time since August 2003, our job market has continued to expand. By August 2006, we had experienced 36 straight months of job growth, with over 5.7 million new jobs created, and an unemployment rate of 4.7 percent that is the envy of the industrialized world. From 2001 through 2005, labor productivity grew at an annual rate of 3.3 percent in the non-farm business sector and by 4.8 percent in the manufacturing sector.

Despite our successes, we must always look ahead and ask how can we as a nation prepare to meet the challenges this century will bring?

What will the U.S. workforce look like in the years ahead?

The U.S. workforce continues to grow, but at a considerably slower rate than in the past. Its composition is shifting towards a more balanced distribution by age, sex, race and ethnicity. During the 1970s, the workforce grew by 2.6 percent annually, declining to a 1.1 percent growth rate two decades later. In the next several decades, workforce growth is expected to slow to under 0.6 percent per year.

Steady increases in female labor force participation rates in the latter decades of the last century have brought the labor force closer to gender parity, even as the participation rates for adult men and women have drifted downward in more recent years. A continuing inflow of immigrants has been largely responsible for increasing racial and ethnic diversity in the workforce, with Hispanics and Asians being the fastest-growing demographic groups. Greater participation in the workforce by older workers, women with children, persons with disabilities, and other groups with previously low labor force participation rates will cause the workforce to continue to grow, albeit more slowly than in past decades.

All of this is good news for the U.S. workforce, as many of our trading partners undergo slower workforce growth and dramatic aging of their populations, thus offering a new comparative advantage for the United States.

What does technology hold in store for our economy?

The pace of technological change — whether through advances in information technology, biotechnology or emerging fields such as nanotechnology — will accelerate in the coming decades. Synergies across technologies and disciplines are generating advances in research and development, production processes, and products and services themselves. Moreover, further technological advances continue to increase the demand for a highly skilled workforce to support faster productivity growth, thus adding new challenges to our continued progress in providing healthy and safe workplaces.

The U.S. is entering a new period of dramatic globalization that will affect all aspects of our economy, our workforce, and our workplaces.

The reach of economic globalization continues to expand, affecting industries and segments of the workforce previously insulated from global competition. The new era of globalization is partly the result of new, less expensive modes of communication and information transmission enabled by the information revolution. The nature of competition in the global marketplace is also changing, with workers, technology, capital and means of production more able to move easily among nations. Thus, new economic competitors are emerging creating an increased need to ensure a level playing field.

Rapid technological change and increased international competition enhance the need for a skilled and prepared workforce, particularly the ability to adapt to changing technologies and shifting market demand.

In the economy of the 21st Century, skills, training and workforce preparation are the key factors in the nation's ability to maintain its competitive edge. The transition to a knowledge-based economy continues to fuel demand for well-educated workers. Maintaining a highly skilled workforce will be a key component of U.S. comparative advantage in the world economy in the future.

In this new world economy, the workforce must constantly upgrade its skills and have the ability to adapt to changing technology and product demands through the development of a work culture that emphasizes lifelong learning. Education and training must become part of a process that continues well past initial entry into the labor market. This need for continuous training poses new challenges to organizations and workers. Employers and workers must adopt a more integrated approach to work and training and must change their expectations about lifetime earning patterns, tenures, and strategies for retirement security. New technology-assisted learning offers the potential to support lifelong learning both on the job and through traditional public and private education and training institutions.

Simultaneously, a number of forces are causing firms to organize themselves in ways that are more specialized and less centralized or vertically integrated. There continues to be a shift away from more permanent, lifetime jobs toward flexible employment relationships and work arrangements. These arrangements will be attractive to future workers who seek to balance work and family obligations and to disabled or older workers who seek more flexible arrangements.

The acceleration and interplay of these important trends presents important challenges for government.

The growth of the U.S. economy in large measure can be attributed to the introduction of new technology, free trade, and the ability of our industries and workforce to quickly adapt and capitalize on the opportunities these changes create. However, as these forces accelerate and compound, it is critical that policies are in place to ensure the economic flexibility necessary to accommodate further growth. Such flexibility in the way work is performed, the relationship between worker and employer, and an understanding of how these trends will affect our workforce, workplaces and markets are essential to our nation's economic success.

Our nation's ability to compete in this new, rapidly changing global marketplace is dependent on a highly skilled, adaptive workforce and on workplaces that provide for needed flexibility.

The Department of Labor is helping workers adapt through strong DOL-sponsored workforce investment programs, including those administered under the Workforce Investment Act and the Trade Act and through the Unemployment Insurance system. Through these programs, workers are provided with the resources and means to adapt and prepare for the dramatic changes in our economy. Through the President's High Growth Job Training Initiative, these tools are enhanced by targeting private and public resources and support to capitalize on industries and sectors experiencing economic growth and expansion. Through its regulatory programs and reforms, the Department is helping employers and workers comply with the laws safeguarding workers' health, safety and economic security. Balancing labor law enforcement and compliance assistance to employers will ensure improved effectiveness of the regulatory programs while finding new, flexible strategies that eliminate unnecessary compliance burdens and foster job growth within a safe environment. This will provide the American employer and worker with an economic and regulatory environment that will make possible quality and competitive workplaces.

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DOL Strategic Goals

Four strategic goals provide the framework for the Department of Labor Strategic Plan. Fiscal Years 2006 — 2011. These long-term, overarching goals define the purpose of the Department's core functions while reflecting the vision and priorities for the Department. They encompass the laws and regulations administered by DOL as well as the programs designed to promote the welfare of workers and improve the quality of workplaces. Each agency or program within the Department supports one or more of these strategic goals through its own mission-driven activities. The measure of each agency or program's success is determined by outcome-based performance goals that directly tie to these four strategic goals.

These four strategic goals provide the foundation for the Department's future planning, budgeting, and reporting. Performance goals flow directly from these strategic goals and represent the aims of the agencies at the program level. Performance goals articulate how DOL will carry out its mission in support of the strategic goals. Agencies partly determine their success in achieving these goals through performance indicators. A performance indicator defines a measurable outcome or output that can be expressed numerically. Agencies establish annual and long-term targets in order to gauge progress and to determine whether they achieved their intended results. Annual performance goals and indicators account for the span of time between intervention and results, although many outcomes occur beyond the year of effort.

This Plan includes the results from the prior year and long-term targets. In the interim years, results are reported annually in the President's Budget and the Annual Performance and Accountability Report, also mandated by GPRA. For reporting purposes, most agencies follow a fiscal year (FY) which starts on October 1st and ends on September 30th. Workforce development programs within ETA, VETS and Job Corps report data by program year (PY) which starts on July 1st and ends on June 30th.

Strategic and annual performance planning enables the Department to develop and refine strategies, allocate resources more effectively, and to improve management decision-making. Agencies monitor and report data throughout the year and may adjust their strategies and resources accordingly. The goals and measures themselves may be adjusted in order to reflect evolving program strategies better or to address emerging challenges. DOL has also identified key factors, or external challenges, that it has taken into account in the development of its strategies and expected levels of achievement.

The Department of Labor is continuously exploring ways to enhance performance reporting, budgeting, and planning through the use of tools and measures of increasing quality and transparency. For example, agencies have developed various tools and data collection systems to determine how changes in resources impact outcomes, track overall progress in achieving targets, and identify best practices. DOL relies on reporting at all levels to ensure transparency and accountability, and to stimulate innovation and information sharing across agencies and programs. The Program Assessment Rating Tool (PART) process, in which Federal agencies respond to a standardized form on their performance and management, further clarifies the relationship among performance goals and ensures targets are set at an ambitious level. The Office of Management and Budget (OMB) in the Executive Office of the President administers the PART and posts their assessments on http://www.expectmore.gov.

This Plan contains five major sections that highlight key goals, strategies, and initiatives for the Department. The first section provides an environmental scan of the key economic, social, and technological changes that will impact the workforce in the years to come. The strategic goals section follows, with each chapter providing an overview of the significant approaches and programs supporting that goal. Each performance goal is supported by strategies and measured by one or more performance indicators. Prior year results and FY 2011 targets are provided for each indicator. The remaining sections include Compliance Assistance, a key strategy for the Department's regulatory programs; and Management Initiatives, which describes the Department's plans for effective administration, management, and legal oversight. The final section provides an outline of program evaluations which play an important role in improving the effectiveness of programs throughout the Department. The Appendices contain additional resources and background information on the Department and the strategic planning process.

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Strategic Goal 1 — A Prepared Workforce

Develop a prepared workforce by providing effective training and support services to new and incumbent workers and supplying high-quality information on the economy and labor market.

The Department of Labor is meeting tomorrow's challenges today — through a prepared workforce. A strong national economy depends, in part, on preparing new and returning entrants to the workforce with the right skills for today's jobs. Many industries and sectors of the economy will be adding new jobs in the coming years or transforming their business processes, requiring new and different worker skills. Two-thirds of the estimated 18.9 million new jobs created in the next ten years are expected to be filled by workers with some post-secondary education — whether it is a four-year college degree, a two-year degree from a community college or specialized training like an apprenticeship program. Completing some form of post-secondary education is critical to building a solid, sustainable career path. Being prepared begins with a strong educational foundation that supports lifelong learning.

Total employment is projected to increase by 18.9 million jobs (13 percent) between 2004 and 2014, which represents about 2.6 million more jobs than were added over the previous 10-year period (1994-2004). Service-providing, rather than goods-producing, industries will account for 18.7 million of those new jobs. Employment in the largest two occupational groups, professional and related occupations and service occupations, is expected to increase the fastest and add the most jobs, accounting for 60 percent of the total job growth between 2004 and 2014. Growth in these groups means employment opportunities for individuals on opposite ends of the educational spectrum, with earnings on opposite ends as well. Those with bachelor's degrees are expected to fill 36 percent of the 18.9 million new jobs, while those with a high school education or less are expected to fill 37 percent of jobs. DOL focuses on both education and workforce skills, particularly in programs designed for youth.

One key predictor of economic success is education. As educational attainment levels increase, the unemployment rate decreases. For example, in 2005, the unemployment rate was 7.6 percent for individuals without a high school degree, 4.7 percent for high school graduates, and only 3.3 percent for individuals with an associate's degree. Higher levels of educational attainment are also associated with higher earnings. In 2005, while high school graduates earned a median of $583 per week, individuals with an associate's degree earned $699 per week, and those with a four-year degree or graduate level education earned $1,013 per week. Given this correlation, the Department makes a meaningful investment in at-risk teenagers and young adults to help them become productive and self-sufficient members of the nation's workforce.

Individuals entering the workforce need current and reliable information on occupations to identify growth industries, earnings potential, and skill requirements and will need access to educational opportunities to qualify for those jobs. Being prepared means public officials, business owners, and individuals need to be knowledgeable about trends in the global, national, and local economies. They need up-to-date, high-quality labor market information to formulate public policy, negotiate a purchasing agreement, or decide what field to pursue as a career. The Department plays a crucial role in public and private decision-making processes by producing statistics that are timely, accurate, and relevant. In addition, these labor statistics provide critical economic information that is used in the design and delivery of the Departmental programs.

The Department is positioned to meet the employment needs of the workforce by aligning its programs with the emerging demands of industries. Strategies are implemented through innovative approaches to workforce development and the ongoing effort to cultivate strong partnerships between the workforce system, business and industry, and education and training programs. While employers and workers bear ultimate responsibility for adapting to the challenges of a global economy, the Department has a leadership responsibility to support their capacity to respond.

In addition to addressing the evolving employment demands of a worldwide economy, the Department of Labor recognizes that particular groups of returning and new entrants to the workforce face unique challenges. These groups include at-risk and out-of-school youth, veterans returning from service to their country, women making a significant work-life transition, people with disabilities, and ex-offenders re-entering the workforce. Through targeted training and outreach programs, partnerships (including those with faith-based and community organizations) and performance-based approaches, the Department provides comprehensive services that enable these groups to achieve their employment goals. For example, to better serve ex-offenders, the Department of Labor, working with the Department of Housing and Urban Development (HUD) and the Department of Justice, is focusing on addressing recidivism rates and the positive impact of gainful employment. The strategy is to strengthen urban communities while helping ex-offenders find and keep employment.

As workforce growth slows, every participant's contribution becomes vitally important for a healthy economy. Just as initial entry to the workforce requires education and training, re-entry may also require updating skills to match the needs of employers. The Department is working to prepare new and returning workers to take advantage of the growing job opportunities, which means making sure that no group is left behind.

To meet these challenges, the Department has developed several strategies to ensure services go to the neediest youth, with particular emphasis on out-of-school youth, and to develop demand-driven strategies that will cultivate a pipeline of young workers with skills for the 21st Century economy. The youth formula grant program provides comprehensive services through local workforce investment areas. Out-of-school youth receive services that provide them with the necessary skills to attain educational credentials, such as a high school diploma or General Equivalency Degree (GED), participate in vocational and post-secondary training opportunities, and transition into gainful employment or a career. Services to in-school youth are provided to help them remain in and complete secondary school, move into post-secondary education or advanced training, and ultimately transition into successful careers. Programs are increasing the use of alternative education methods and alternative pathways to graduation for out-of-school youth. DOL will coordinate better utilization of resources across Federal programs and within communities; increase the focus on program performance outcomes (e.g., achieving gains in literacy and math skills); and identify and determine how best to replicate employer-based models.

On September 22, 2006, the President signed into law the "YouthBuild Transfer Act," which transfers the YouthBuild Program from HUD to DOL. YouthBuild is a successful strategic approach to workforce investment that provides opportunities for at-risk youth to gain high school credentials and receive skill training that leads to employment. YouthBuild provides job training and educational opportunities for at-risk youth ages 16-24, while constructing or rehabilitating affordable housing for low-income or homeless families in their own neighborhoods.

DOL is committed to developing innovative strategies and programs for women, who often experience several transitions during the course of their careers, whether they are scaling back work hours for child rearing or looking for a better paying job. The Department is developing a multi-regional demonstration project that serves women who are making a significant transition in their work lives. The Working Women in Transition project builds on the best practices of previous demonstration projects by combining high-touch, or community-based services, and high-tech, or Web-based resources. Participants have access to face-to-face and online mentors (e-mentoring), online employment tools, and distance learning opportunities, while working with local service providers. The project serves different target populations of women in transition representing a spectrum of work-life needs, such as women recovering from substance abuse, baby boomers changing careers, Temporary Assistance for Needy Families recipients striving for self-sufficiency, and women who were impacted by Hurricane Katrina.

Key allies in preparing individuals for success in the workforce are America's faith-based and community organizations (FBCOs). Whether offering job readiness training, vocational skills, or supportive services like transportation or childcare, FBCOs can provide a tremendous complement to the workforce system, particularly in serving those facing the greatest barriers to employment. FBCOs often possess networks of dedicated volunteers, a thorough grasp of local needs and culture, and deep personal commitment to serving their neighbors — all of which can complement and strengthen traditional government programs. In partnership with the workforce system, FBCOs can help struggling individuals move from dependency to self-sufficiency, while also meeting businesses' needs for well-prepared workers. The Department's Center for Faith-Based and Community Initiatives (CFBCI) aggressively cultivates partnerships between FBCOs and the workforce system to boost the performance of both.

DOL Agencies supporting the strategic goal for a prepared workforce are ETA, BLS, Job Corps, VETS, CFBCI, and Women's Bureau. To be effective and thereby position the U.S. for continued economic development and growth, DOL will emphasize the following major strategies and performance goals in the years to come.

Performance Goal 1A. Improve information available to decision-makers on labor market conditions, and price and productivity changes.

BLS is an independent national statistical agency within the Department of Labor that collects, processes, analyzes, and disseminates essential statistical data to the American public, the U.S. Congress, other Federal Agencies, State and local governments, business, and labor. BLS provides statistical information that supports the formulation of economic and social policy, decisions in the business and labor communities, legislative and other programs affecting labor, and research on labor market issues. These important policies and decisions affect virtually all Americans.

The Department identified several strategies to support the goal of producing statistics that are relevant, timely, and accurate. The Department will better inform the public by increasing customer awareness and appropriate use of existing data products and will use feedback gathered from data users to determine how the data or dissemination media could be changed to better serve the American public. DOL will build value through innovation by analyzing and evaluating new economic survey methods, new technologies, and new survey design and collection approaches, and sponsoring research and evaluations by known experts to determine how best to improve BLS data. DOL will continually assess program priorities by undertaking systematic reviews of statistical programs to ensure that financial and human resources will be utilized efficiently. In order to reduce duplication of efforts, the Department will collaborate with other statistical agencies to perform work more efficiently by improving communication and coordinating processes and methodologies. DOL will continue to address respondents' concerns and burden by ensuring that there is no duplication of data collection efforts, respondents have a wide array of reporting mechanisms, and respondent trust is maintained by actively soliciting their feedback and addressing their concerns.

Performance Goal 1B. Improve educational achievements of Job Corps students, and increase participation of Job Corps graduates in employment and education.

Economically disadvantaged youth often face multiple barriers to gainful employment. Through 122 centers nationwide, each year the Job Corps Program provides intensive training to more than 60,000 youth ages 16 through 24. Students receive academic and vocational training as well as social education and other support services, such as housing, transportation and family support resources. By incorporating the best thinking, research, and practices of business, education, labor, and other partners, the program strives to be the nation's premier career-focused, alternative education pipeline for disadvantaged youth.

Key strategies to achieving this goal include implementing integrated competency-based career and academic training; implementing new data validation procedures; and reporting on common performance measures. As a campus-based residential program, the quality of the facilities directly affects every day programming. The Department will continue to examine its physical assets, including the residential training centers, to determine whether they are being fully utilized and supporting the programmatic mission. The program is improving outreach and recruitment services and will continue to examine ways to improve services overall. By adopting system-wide strategies and models, innovative curricula and applied academics, and prioritizing industry sectors (e.g., high-growth) to determine in-demand career skills, the program will more effectively train its students to contribute to a 21st Century economy.

Performance Goal 1C. Increase placements and educational attainments of youth served through the Workforce Investment Act Youth Program.

The Workforce Investment Act (WIA) Youth Program is an important component of an integrated workforce system. WIA authorizes services to low-income youth (ages 14-21) with barriers to employment. Eligible youth are deficient in basic skills or are homeless, runaways, pregnant or parenting, offenders, school dropouts, or foster children. The program serves both in- and out-of-school youth, including youth with disabilities and those who may require specialized assistance, to complete an educational program in order to find a job and stay employed. Service providers prepare youth for employment and post-secondary education by stressing linkages between academic and occupational learning. They provide tutoring, access to alternative schools, summer employment, occupational training, work experience, supportive services, leadership development, mentoring, counseling, and follow-up services.

The Department has outlined a new strategic vision for the delivery of youth services under WIA. This vision is that out-of-school youth and those most at risk of dropping out are an important part of the new workforce "supply pipeline" needed by businesses to fill job vacancies in the knowledge economy. WIA-funded youth programs serve as a catalyst connecting youth with quality secondary and post-secondary educational opportunities and high-growth and other employment opportunities. Efforts are now focused on four major areas: alternative education, demand-driven strategies that equip them with the skills businesses need, serving the neediest youth, and overall improved program performance.

The Department implemented a set of common performance measures in PY 2005 for the WIA Youth Program. This is the first year for States to report on the employment and retention common measures. As a result, the prior year results, PY 2004, are not comparable to the new indicators. In addition, the program will report on a new earnings measure in PY 2006. Targets for the earnings measure will be established once results have been reported.

LINKING EDUCATION AND ECONOMIC DEVELOPMENT (LEED): THE SACRAMENTO WORKFORCE DEVELOPMENT INITIATIVE

California’s LEED initiative is an excellent example of how States are using the workforce system to better serve business and industry while providing youth with skills that are in demand. In PY 2004-2005, California awarded $800,000 to LEED to implement a program designed to prepare youth and adults for high-wage, high-skill construction occupations, thus narrowing the workforce shortage gap and strengthening the economy as unemployed and low-income workers make significant income gains. LEED partnered with the Sacramento Employment and Training Agency and collaborated with Northern California Construction Training, Cosumnes River College, and the California Employer’s Association to carry out the Sacramento Construction Workforce Development Initiative. LEED brings together the construction employer community and regional training programs to address the shortage of skilled labor within the region and to develop a marketing campaign to recruit youth and adults for enrollment in training options that lead to high-wage careers in the construction trades.

Performance Goal 1D. Improve the registered apprenticeship system to meet the training needs of business and workers in the 21st Century.

The Department is redesigning the registered apprenticeship system to address employers' demand for efficiency, reliability, openness, and responsiveness. Established by the National Apprenticeship Act of 1937, the National Registered Apprenticeship System operates in cooperation with State agencies, businesses, program sponsors, industry leaders, employers, employer associations and educational institutions. As the nationally recognized credentialing system for skilled, craft, and technical trade training programs, the program's effectiveness is largely defined by its ability to prepare qualified workers to meet the needs of employers. To this end, the Department identified several strategies for improvement to promote a demand-driven system.

The Department will examine a restructuring of the functional role of the Federal government in apprenticeship. To strengthen program outcomes, DOL will increase the linkages of apprenticeship programs with other workforce development and educational systems and strengthen the demand-driven nature of apprenticeship through industry involvement. DOL will expand the credentialing process to include interim credentials through competency-based apprenticeships that will increase options for career development within an occupational or industry apprenticeship system. To accomplish this, the Department works with employers, industry leaders, State Apprenticeship Councils/Agencies and State Workforce Agencies. The voluntary nature of these relationships influences the program's ability to capture program information consistent with the set of common performance measures for Federal job training programs. To encourage States' cooperation and improve the quality of performance data, Apprenticeship has been expanding its Registered Apprenticeship Information System (RAIS) to include both electronic apprenticeship and program registration.

Performance Goal 1E. Improve the employment outcomes for veterans who receive One-Stop Career Center services and Homeless Veterans' Reintegration Program services.

The Department helps veterans find jobs by funding grants to State Workforce Agencies for the delivery of employment and workforce information services through One-Stop Career Centers in local communities. These grants support Disabled Veteran Outreach Program specialists dedicated to serving veterans who need special employment assistance due to disabilities or barriers to employment. These grants also support Local Veterans Employment Representative (LVER) staff members, who conduct outreach to area employers to identify their employment needs, thus developing employment opportunities for veterans. LVER staff members also provide transition employment assistance workshops to service members prior to their separation from the armed services. Veterans' employment and retention rates are expected to steadily increase, as illustrated in Chart 1.

The Department also serves targeted veterans such as homeless veterans, incarcerated veterans, and seriously injured veterans who need individualized employment assistance in order to reenter the workforce. The Homeless Veterans' Reintegration Program (HVRP) and the Veterans' Workforce Investment Program (VWIP) are funded through a competitive grant process. Funding is open to a wide range of program operators, including State and local governments, faith-based organizations, and other community-based organizations. These grants are closely linked with other service providers to optimize their effectiveness in delivering employment services. For example, HVRP grants are closely coordinated with grant programs administered by HUD and Veterans Affairs and other community resources that support related interventions, such as substance abuse treatment.

DOL continues to undertake specific program initiatives to meet the emerging needs of veterans and to assure continuous improvement in the services provided. DOL is developing and implementing State Workforce Agency performance standards to improve employment outcomes for veterans. DOL will continue to work to effectively address homelessness among veterans and problems faced by distinct veteran groups such as the disabled and aging. DOL is expanding the Recovery and Employment Assistance Lifelines Program and its crosscutting efforts with the Departments of Defense and Veterans Affairs to provide individualized job training, counseling and reemployment services to seriously injured or wounded veterans of Operation Iraqi Freedom, Operation Enduring Freedom, and other recent conflicts.

Meeting External Challenges

Economic Trends

The economy affects every aspect of employment and training programs. Downturns in the economy always mean fewer jobs are available and sometimes mean shifts in occupational demands once the economy rebounds. On the other hand, during times of high economic growth, fewer people may have time to devote to training, but the demand from business for new workers increases. While downturns in the economy affect many Americans, youth, especially those without a diploma or good job skills, are particularly vulnerable during periods of economic contraction. In addition, economic change translates directly into different, and sometimes new, demands for data as industrial sectors succeed others, and as consumer goods replace others. The Department will continue to develop and publish new surveys and products to meet the economic data needs of the American public.

Survey Burden

Increasing and competing demands for information from respondents may cause them to refuse to participate or affect the quality of their reporting. For many years, the Department has asked large numbers of firms and individuals to provide information closely related to their daily affairs and personal lives. The Department will strive to minimize the burden of its surveys on respondents by continuing to provide more reporting options, by expanding the use of electronic data collection methods, and by building upon a national training curriculum whereby all field data collectors are trained on the best techniques and methods to use in approaching respondent contacts.

Human Capital

The ability to recruit and retain qualified staff is a challenge. To ensure that the Department will have sufficient talent and expertise to meet the challenges of re-engineered work processes and rapidly changing technology, as well as produce and disseminate timely and accurate statistics, it competes with the private sector and other agencies in the public sector to fill its professional jobs. Recruitment, workforce planning, and workforce development programs are designed to ensure that the Department continually achieves a highly skilled and diversified workforce.

Performance Goals and Indicators

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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 world has become dramatically more interconnected and competitive. Advances in the fields of communication, technology and travel have effectively removed national borders as barriers to global commerce. Competition now comes from the company across the ocean as well as the company across the street. To compete successfully, we must have a workforce that creates new products, makes better products, and brings them to the market faster.

The country's economic development and competitive advantage depend on the competitiveness of the workforce. To succeed, policies must embrace the emerging changes in our economy — in how people work, where they work, what skills they need, and how they balance professional and family lives. The needs of the 21st Century economy are very different than those encountered in the past. Industries such as manufacturing and retail now need workers who understand computers, robotics and supply chain management. Fields such as health care and construction need more technical and skilled labor than ever before. Newer industries requiring even greater technical skills — such as biotechnology, geospatial technology, and nanotechnology — are following.

Many of the fastest growing jobs of the future will need to be filled by "knowledge workers," who have specialized skills and training. In fact, the demand for knowledge workers is already growing at an astonishing pace. Many of the fastest growing jobs, on average, require a post-secondary credential, such as a vocational certificate, other credential, and an associate or higher degree. These are the jobs that will drive innovation and determine which countries will lead the world economy.

At the same time, an increasingly competitive and worldwide economy will put pressure on the regulatory environment. Historically, the Department of Labor developed labor policies and programs under conditions of labor surpluses and based employment laws and regulations on traditional, full-time, long-term work arrangements. Over the next two decades, the relevance of these, and other assumptions will be challenged.

As the 21st Century unfolds, three powerful forces will transform the American workforce and the manner in which people work:

• An increasingly global economy.
• A sharp increase in the demand for knowledge workers.
• Greater use of alternate work arrangements that do not fit the "traditional" work model.

These forces have significant implications for our economy and the way DOL approaches its mission. The challenge is to anticipate these changes to ensure that DOL programs and regulatory processes address the contemporary work environment in a forward-looking way that contributes to economic growth and accommodations, changing technology, and the changing workplace.

The nation's future success will largely depend on the ability to continue to meet the needs of employers for new and skilled workers. To this end, DOL is committed to ensuring that the workforce investment system is responsive to the changing needs of business and is focused on linking job seekers with opportunities in high-growth industries. DOL will strengthen its partnerships with the workforce investment system, business and industry, education and training providers, faith-based and community organizations, and economic development agencies. These partnerships are critical to understanding the skills demanded by the labor market and will enable the Department to make informed investments in job training. Furthermore, DOL will take the necessary steps to ensure that tools and information are available to help match workers with employers. Finally, the workforce investment system will reach out to every available worker, particularly those in special target populations, to ensure there are enough skilled workers and to help maintain the nation's competitiveness.

A Competitive Workforce emphasizes the workforce systems used to organize and link sets of strategies to address current and long-term workforce development needs to keep the U.S. workforce as the leader of global economic growth. Departmental programs supporting this goal focus on the continued refinement of a workforce investment system that is responsive to the demand for skills, particularly those resulting from technological advancements and global competition. Similarly, the Department's regulatory strategies and approaches have been retooled to promote the greater flexibility desired by workers and employers. Employment- related laws, regulations and regulatory practices have been reconsidered so that they do not impose unnecessary costs on employers without yielding corresponding benefits to the workforce and the economy.

Many employers, to compete more effectively in the highly competitive global economy, have restructured their companies, and increasingly relied on non-traditional employment practices that include part-time, temporary, and contractor-supplied workers. Experts expect these non-traditional work arrangements to increase substantially in coming decades. At the same time, many Americans have difficulty balancing work demands with their personal lives. Consequently, the need to balance work demands and home life will continue to be a growing concern.

The Department will promote the greater flexibility desired by workers and employers. This includes examining the regulatory environment — employment-related laws, regulations and regulatory practices — in light of non-traditional work arrangements and the need to reduce regulatory burdens. In particular, some regulations written decades ago may no longer be applicable or effective; they may impose costs on employers without yielding corresponding benefits to the workforce. The shift to knowledge work will also reinforce the ongoing trend of "non-traditional" work arrangements. The Department is building a workforce investment system that is more adaptable, demand-driven, less administratively costly, and able to educate and train greater numbers of individuals. To accomplish this significant undertaking, the Department will implement multiple, integrated approaches that examine key partnerships, educational models, service delivery, and ways to maximize resources. DOL is establishing strategic partnerships with education and business and prioritizing the use of system resources to respond to business' needs for labor and skills. To support this effort at the national level, the Department, through ETA, has established the Business Relations Group. The Business Relations Group serves as the Department's key linkage to industry, compiling current and reliable information on occupations in high-growth industries including the necessary skill requirements. The Department is increasing system focus on understanding, predicting, and populating the high-growth marketplace, using models and lessons developed by the President's High Growth Job Training Initiative and identifying competency models for new and incumbent workers, particularly in high-growth industries.

The capacity of today's workforce to meet the skill requirements of the high-growth marketplace is augmented each year by the transition of approximately 200,000 workers from military service to civilian careers. The Department's Transition Assistance Program (TAP) is strategically positioned to help transitioning service members to navigate this critical passage from life as a military service member to life as a civilian worker. TAP employment workshops emphasize enhancement of transitioning service members' job-seeking skills so that they can successfully contribute the occupational skills they gained in the military to help meet the demand for skilled civilian workers.

By intervening at the point of transition between military service and civilian careers, the Department leverages the enormous investment in skill development made by the military services, and facilitates application of that investment to meet civilian needs. Another benefit of this investment is that the skill profile of veterans has steadily converged toward the skill profile of knowledge workers. Further, today's veteran is familiar with advanced technologies and is accustomed to continued retooling and lifelong learning, based on the ongoing opportunities for training, education and work experience afforded by military service. Finally, veterans' reputation for maturity and reliability rounds out their attractiveness to employers in the high-growth marketplace. This helps to assure that their contributions as civilian workers, in addition to benefiting employers and themselves, also will benefit the national welfare they served to protect.

To maximize resources, workforce systems are introducing additional innovative, consumer-controlled, and less staff intensive methods of adult worker preparation. Enhancing the system's role as labor market and career advisor will help workers and businesses make self-directed, informed choices in preparing for their future. The Department is examining workforce education strategies and creating a regional, integrated approach to workforce development, economic development, and education. Integrating system services (such as the array of separately authorized programs for dislocated workers) and further using and expanding the existing public infrastructure (such as the nationwide network of community colleges, vocational and adult education programs, and apprenticeships) will maximize resources and minimize duplication of services. Providing States and local communities with the administrative flexibility necessary to target resources where they are most needed is expected to result in more effective services. The Department will work to increase the number of adults and dislocated workers being trained by the workforce investment system. These strategies impact the WIA programs for adults, youth and dislocated workers and Wagner-Peyser Act funded employment services programs. These programs represent the first three performance goals under this Strategic Goal. The WIA Youth Program supports A Prepared Workforce.

Developing Competitiveness through WIRED

A major component of President Bush's Competitiveness Agenda is the Workforce Innovation in Regional Economic Development (WIRED) initiative. WIRED focuses on the role of talent development in driving regional economic competitiveness, increased job growth and new opportunities for American workers. Through the WIRED initiative, the Department has invested $195 million in thirteen regional economies that have been affected by global trade, are dependent on a single industry or are recovering from natural disasters. The WIRED initiative will encourage regional communities to partner together and leverage their collective public and private sector assets and resources to develop a more highly skilled workforce that can act as the linchpin to attract new economic development and employers.

The Department has already proposed program reforms in order to maximize resources to reach and train more customers and improve the quality of workforce development services. Chief among these initiatives is the Career Advancement Accounts (CAA) proposal that would combine funding streams of the WIA programs and the employment service program. CAA is designed to provide workers with ownership over their own education and training pathways. The proposal is built on the foundation of Individual Training Accounts and would support the Administration's goal to increase enrollment in education and training. These single, self-managed accounts would enable account holders to purchase the longer-term education and training typically required for technically complex occupations. The accounts would reinforce the need for accurate and accessible labor market information, hold training institutions accountable for results, and acknowledge the need for incumbent worker training so that the current workforce can access skills upgrading and advance on the job.

To measure performance, the Department's employment and training programs use common performance measures, an integral part of the performance accountability system. They serve as a uniform management and oversight tool for the workforce investment system by describing the core purposes of programs through the use of a universal language. While workforce services vary from program to program, two core purposes are employment for adults and skill attainment for youth. Data collection focuses on how many people found jobs; whether they stay employed; and what they earned. Prior to the implementation of common measures, multiple sets of performance measures burdened States and grantees, as they were required to report performance outcomes based on varying definitions and methodologies. By minimizing the different reporting and performance requirements, common performance measures are facilitating the integration of service delivery, reducing barriers to cooperation among programs, and enhancing the Department's ability to assess the effectiveness and impact of the workforce investment system.

The Department, in its efforts to implement one set of common performance measures, using the same definitions for all programs, made changes to the definition for retention by increasing the measurement points. Therefore, previous results for this measure (ending in PY 2004) will be higher than current and future results. The Department also made changes to the definition for the earnings measure, which will be reported for the first time in PY 2006. Actual results will first become available in the FY 2009 Congressional Justification. This applies to the performance goals for the WIA Adult Program, the WIA Dislocated Worker Program, employment services, and the Trade Adjustment Assistance Program.

The Department, through work conducted by the Bureau of International Labor Affairs (ILAB), promotes internationally recognized workers' rights and labor standards, including those that relate to the elimination of exploitive child labor. Key strategies include research, monitoring and reporting on international labor developments, including the labor dimension of U.S. trade and investment agreements, the application of labor standards, and the newly mandated responsibilities of monitoring and combating forced labor, child labor, and human trafficking carried out in foreign countries. The Department also participates in policy development and representation in the negotiation of trade agreements and in international organizations such as the International Labor Organization, Organization for Economic Co-operation and Development, and other international forums where labor issues are addressed. The Department assists in the formulation of international economic and labor policies and programs that lead to open markets globally and benefit U.S. workers. DOL also advises and assists in the administration of the labor provisions of free trade agreements and provides support through international cooperation programs. These include international efforts aimed at eliminating the worst forms of child labor and providing technical assistance to countries to improve their enforcement and implementation of labor laws. New performance measurement indicators will be proposed to measure ILAB's newly mandated functions and its previously mandated core functions related to research and reporting as well as policy development and representation upon completion of its reorganization and assessment of these functions.

Performance goals and major initiatives that support A Competitive Workforce are managed by six DOL agencies — ETA, VETS, Office of the Assistant Secretary for Policy (OASP), Women's Bureau, Office of Disability Employment Policy (ODEP), and ILAB.

Performance Goal 2A. Increase the employment, retention, and earnings of individuals registered under the Workforce Investment Act Adult Program.

The WIA Adult Program is designed to help adult workers (employed and unemployed) acquire the skills and jobs they need to compete in a global economy. WIA Adult Program funds are provided by formula to States and local communities, which operate Statewide networks of One-Stop Career Centers. The Centers provide a continuum of seamlessly integrated services (including services under the Wagner-Peyser Act and the WIA Dislocated Worker Program) which reflect comprehensive assistance to workers and employers. States also use the WIA Adult Program to leverage additional, non-Federal resources in order to increase the quality and variety of assistance they are able to offer.

As skill demands for high-growth and technologically advanced occupations increase, the WIA Adult Program plays an ever more important role in providing workers and job seekers with comprehensive career guidance and access to innovative education and training opportunities. States and local communities are aligning their workforce development resources with their regional strategies for economic development to ensure a steady supply of highly-skilled current and future workers. Similarly, WIA Adult programs are partnering in new ways with a broad continuum of education providers to develop alternate models for workforce education that meet employers' skill needs while simultaneously meeting workers' needs for flexible training and career advancement approaches. The WIA Adult Program will continue to improve employment, retention, and earnings outcomes for its participants leveraging workforce development and education strategies and investments to support talent development and ensure economic competitiveness.

Performance Goal 2B. Increase the employment, retention, and earnings of individuals registered under the Workforce Investment Act Dislocated Worker Program.

The WIA Dislocated Worker Program aims to quickly reemploy laid off workers with a goal of also enhancing their employability and earnings by increasing occupational skills. The Department allocates 80 percent of the WIA Dislocated Worker funds by formula to the States. The Secretary may use the remaining 20 percent for discretionary activities specified in the Workforce Investment Act, including assistance to localities that suffer plant closings, mass layoffs or job losses due to natural disasters and military base realignment and closures. The Dislocated Worker Program, like the WIA Adult Program, is often part of a continuum of seamlessly integrated services which reflect comprehensive assistance to workers and employers. States may also use the program to leverage additional, non-Federal resources in order to enhance services.

In the current economic climate, in which rapid evolution, advancement, and transition are the norm, the WIA Dislocated Worker Program is playing a key role not only in responding to layoffs and other job losses, but also in intervening proactively with employers and workers prior to dislocation events. States and local areas are increasingly collaborating with employers and education and economic development partners to develop and implement strategic responses to economic transitions that move beyond the traditional reemployment model. These strategies include "re-skilling" and "up-skilling" for workers who have not yet been laid off, so that they may transition into jobs in growing industries and sectors immediately following layoff. Additionally, the WIA Dislocated Worker Program provides increasingly proactive services to its employer customers, offering workforce transition support and solutions before, during, and after dislocation events and other economic shifts. By increasing its focus upon the broad continuum of services that support both workers and employers throughout the course of economic transitions, the WIA Dislocated Worker Program is ensuring improved employment, retention, and earnings replacement outcomes for its participants.

Performance Goal 2C. Improve outcomes for job seekers and employers who receive One-Stop employment and workforce information services.

A fundamental underpinning of the nation's One-Stop Career Centers is the delivery of core employment and workforce information services to a universal population of both businesses and job seekers. Funded principally through WIA, the Wagner-Peyser Act, and the Title 38 programs administered by VETS, employment and workforce information services are designed to help workers (employed and unemployed) obtain jobs and give employers access to skilled workers to compete in the global economy. Providing effective employment and workforce information services that recognize the uniqueness of local/regional labor market conditions and the needs of workers is key to achieving successful outcomes for both workers and employers. Such services are provided in collaboration with a wide array of One-Stop partners and are fully integrated for seamless service delivery to customers. Core employment and workforce information services are part of a continuum of core, intensive, and training services available through One-Stop Centers. Employment services are provided universally to customers at no charge, with special emphasis on services for Unemployment Insurance (UI) claimants, migrant and seasonal farm workers, veterans, and businesses. Services include a wide array of workforce and labor market information, career guidance products and tools, assessments, job matching and referral, reemployment services for UI claimants, targeted services for veterans, and more.

Performance Goal 2D. Increase the employment, retention, and earnings of individuals served through Community-Based Job Training Grants.

The public workforce investment system provides employers with trained workers and helps individuals, both employed and unemployed, develop the skills they need to compete in a global economy. The Department is working to educate and train more individuals by enhancing the capacity of community colleges to provide workers with the skills required to succeed in high-growth, high-demand industries. Community and technical colleges are important partners in offering industry-designed curricula. Students and job-seekers are assured that they are learning the skills needed for their desired occupation. Partnerships with local industry and the workforce investment system are essential for developing effective workforce development strategies. The roles of partners include offering career and skill information to young people charting their education and career courses, providing jobs, training workers, and building the capacity of educational institutions to train workers. Industry representatives play an important role in defining workforce challenges.

Performance Goal 2E. Build a demand-driven workforce system by increasing the accessibility of workforce information through the National Electronic Tools.

Current, comprehensive, relevant, accessible information on occupations and labor markets is critical for planning and delivering demand-driven workforce services. The Department contributes to the State and national workforce information system by creating and broadly disseminating such information, particularly on high-growth industries and occupations, via several types of products collectively referred to as National Electronic Tools. Customers include employers, job seekers, educators, economic developers, State and local Workforce Investment Boards, and participants in the One-Stop delivery system who find this service useful for business, education, economic development and individual career decisions. Specifically, these National Electronic Tools, which include America's Career Information Network, America's Service Locator, Career Voyages, and O*NET OnLine, deliver strong workforce and economic information and career guidance resources and models for two main purposes: 1) to support individuals in making education and training decisions and investments, and 2) to support business and community needs for a prepared and globally competitive workforce.

This suite of Internet tools helps individuals develop career pathways and make decisions about sound investments in education and lifelong learning that will lead to good jobs. The sites also help businesses by providing information on emerging skill requirements in their industry. For the workforce investment system, current, comprehensive, relevant, and immediately accessible information on occupations, workforce characteristics, labor markets and regional economies is critical for planning and delivering demand-driven workforce services. Enhancing the system's career guidance capacity as labor market, career, and economic development advisors will help workers and businesses make self-directed, informed choices in preparing for their future.

The Department will continue to collect and report data on the impact of workforce information on participant employment outcomes. Additional strategies include improving the provision of career information and guidance; continuing collaboration with business, industry, education, and economic development; enhancing resources that connect customers to the workforce investment system; maintaining investments in critical infrastructure; and continuing important system-building strategies.

National Electronic Tools

America’s Career Information Network
http://www.acinet.org

America’s Service Locator
http://www.servicelocator.org

Career Voyages
http://www.careervoyages.gov

O*Net Online
http://online.onetcenter.org

Performance Goal 2F. Assist older workers to participate in a demand-driven economy through the Senior Community Service Employment Program.

The Senior Community Service Employment Program (SCSEP) assists low-income persons age 55 or older by providing opportunities to remain in or re-enter the workforce. Enhancements to the SCSEP that will be pursued in the context of reauthorization of the Older Americans Act include strengthening the efforts of the workforce investment system to integrate the full spectrum of services available to older workers and increasing the range of training services that can be offered for older workers. The reauthorized program should more effectively target those most in need, institute a two-year maximum on program participation, and provide flexibility to grantees to use other training options in addition to community service employment. The improved program would be streamlined to achieve more efficient administration and better labor market outcomes for older workers including placement in private-sector employment with earnings growth potential.

Performance Goal 2G. Assist workers impacted by international trade to better compete in the global economy through the Trade Adjustment Assistance Program.

The Trade Adjustment Assistance (TAA) program provides training, income support, and other services to workers who lose their jobs due to increased imports or shifts in production to foreign countries. The Department has employed several strategies to better integrate TAA with the public workforce investment system, which entails contributing to shared competitive workforce goals and strategies. Program design strategies include integrating the program with other dislocated worker programs, proposing new regulations, and implementing a re-engineering of the petition review process that establishes eligibility for the program. To support outreach and education efforts, DOL is increasing awareness of the Alternative Trade Adjustment Assistance Program for older workers, expanding co-enrollment in assistance programs, and providing compliance assistance. The Department will continue to strengthen outcomes, as demonstrated in Chart 2, through comprehensive assessments of trade-affected workers, by incorporating performance accomplishments into the funding formula for State TAA training funds, and by processing results from the independent five-year net impact evaluation.

Performance Goal 2H. Address worker shortages through the Foreign Labor Certification Program.

Foreign workers may be legally hired on a temporary or permanent basis when no American workers are available, able, willing and qualified, provided their employers file applications with the Department to adequately document the need.

These conditions do not apply to foreign workers admitted on E-3 and H-1B1 visas. An E-3 or H-1B1 worker may be hired even when a qualified U.S. worker wants the job, and a U.S. worker can be displaced from the job in favor of the foreign worker. These conditions do not apply to foreign workers admitted on H-1B visas, except with respect to job opportunities with H-1B dependent employers. H-1B nondependent employers are not subject to the conditions, and their H-1B workers may be hired even when a qualified U.S. worker wants the job, and a U.S. worker can be displaced from the job in favor of the foreign worker. Additionally, the importation of the foreign worker will not adversely affect the wages and working conditions of U.S. workers.

The Department is implementing numerous re-engineering initiatives to improve processing efficiency while maintaining program integrity and deterring fraud. Technology is playing a strong role in improving processes. Effective March 28, 2005, the Department eliminated the duplicative, staff-intensive State role in the Permanent Labor Certification Program, implemented electronic filing of applications via a new Program Electronic Review Management (PERM) system, and streamlined the process by providing for pre-filing recruitment and employer attestations (rather than lengthy post-filing recruitment supervised by State agencies). The Department will continue to evaluate the PERM Program and increase outreach efforts to encourage employers to file petitions electronically.

Other strategies to improve the labor certification programs overall include continuing efforts to eliminate the Permanent Program backlog (applications filed and being processed under the regulation in effect prior to March 28, 2005) and to reengineer the H-2B temporary program. DOL will continue to seek legislative approval to fund application processing activities for the permanent labor certification program through an employer-paid application fee. The Department will focus on improving overall program integrity by emphasizing fraud detection and prevention and by providing employer compliance assistance.

Performance Goal 2I. Build knowledge and advance disability employment policy that affects and promotes systems change.

For the past twenty years, the employment rate for people with disabilities has not increased significantly. The Department recognizes that the traditional methods for addressing the employment of people with disabilities combined with an insufficient understanding of employer perspectives have contributed to this outcome. To address these issues, DOL implemented an approach that looks at disability and employment comprehensively, within the Department and across the Federal government, in order to develop innovative policies and strategies for the workforce investment system and employers. The Department will continue to develop national disability employment policy; foster implementation of effective policies and practices within State and local workforce development systems and with employers; conduct research that validates effective strategies for providing disability-employment related services and supports; and provide technical assistance on implementing effective systems-change strategies to both the demand and supply side of the labor market. These strategies aim to increase the capacity of the workforce investment system to serve people with disabilities; to increase planning and coordination within service delivery systems; and to increase employer access to supports and services for recruiting, retaining and promoting people with disabilities. The Department will annually measure success toward achieving this outcome by counting the results of activities undertaken — the number of policy-related documents, formal agreements, and effective practices.

Performance Goal 2J. Maximize regulatory flexibility and benefits and promote flexible workplace programs.

OASP provides policy guidance and direction in the development of the Department's regulatory agendas and regulatory strategies. Many employment laws and regulations were written decades ago and were based on, among other things, traditional on-site, full-time, long-term employment relationships between workers and employers. Over the next several years, OASP and the Department's regulatory agencies, such as ESA and EBSA, will continue to conduct comprehensive reviews of key laws and regulations to determine their effectiveness and applicability to the new workplace.

The Department's regulatory mission needs to fully achieve its objectives of protecting worker rights, benefits, and safety while minimizing regulatory burdens that can impede the productivity and competitiveness of the nation's economy. Over the past several years, the Department has made strides, including targeting enforcement efforts to address the most egregious problems. The Department has also expanded electronic options for employers to meet their reporting obligations. Over the next several years, DOL will continue to analyze the effectiveness of this strategy, seek ways to build upon the successes, exploit technology to improve effectiveness and reduce regulatory burden, and take other steps necessary to ensure that the DOL regulatory infrastructure is consistent with the 21st Century work environment.

Workplace flexibility is an employee benefit that aids employers in recruiting and retaining a talented workforce. The Department's Flex-Options for Women project helps business owners develop workplace flexibility policies and programs for their employees. The project brings together corporate executives and entrepreneurs who volunteer to mentor business owners interested in developing flexible workplace policies and programs. By encouraging entrepreneurs to focus on work redesign and implementing flexible work options, employees will improve their ability to manage work and life responsibilities while business owners realize positive bottom line impacts.

These children are in a transitional educational center supported by the DOL-funded INDUS project in Aurangabad, India. Through the project, children are being withdrawn from hazardous labor and provided with quality education, school supplies, nutritious meals, and other services. The INDUS program, which is funded by DOL in partnership with the Indian government, has reached more than 50,000 children to date and is expected to assist over 100,000 children and their families by the end of 2007.

Meeting External Challenges

Globalization and Technology

The world is now witnessing one of the greatest economic transformations in history. The twin revolutions of technology and information have ushered in the era known as globalization. Tremendous advances in communications, travel, and trade allowing individuals instant access to commerce from almost anywhere in the world mark this era. Although global competition is typically seen as a national challenge, the front lines of the battlefield are regional — where companies, workers, researchers, entrepreneurs, and governments come together to create a competitive advantage in the global economy. That advantage stems from the prosperity-creating power of innovation — the ability to transform new ideas and the new knowledge into advanced, high- quality products or services. Many regions have made considerable progress in integrating talent and skills development into their larger economic strategies and in transforming their workforce, economic development, and education systems into one comprehensive system that is both flexible and responsive to the needs of businesses and workers. However, DOL recognizes the ongoing importance of supporting regions that need additional technical and financial assistance to achieve these goals.

Performance Goals and Indicators

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Strategic Goal 3 — Safe and Secure Workplaces

Promote workplaces that are safe, healthful, and fair; guarantee workers receive the wages due them; foster equal opportunity in employment; and protect veterans' employment and reemployment rights.

The Department promotes and enforces some of the most widely recognized legal standards for gainful employment and quality workplaces. Many of these laws, programs, and regulations support the strategic goal for safe and secure workplaces. The Department is developing new and innovative approaches to implementing the laws and programs that protect the safety, health, and rights of workers. While the Department demonstrates continued success in protecting workplaces, one of the Department's key challenges is developing strategies suited for the changing 21st Century workplace.

The Department protects the rights of workers covered under the Occupational Health and Safety Act of 1970 by responding promptly to imminent danger situations; investigating fatalities, catastrophes and worker complaints; enforcing whistle blower rights under 14 statutes; and inspecting Federal agencies to protect Federal workers. In the past thirty years, occupational injury and illness rates have declined 56 percent, yet the Department continues to confront a variety of challenges. Since 1970, the number of workers DOL is responsible for protecting has expanded dramatically from 58 million workers at 3.5 million work sites to 111 million workers at 7.25 million establishments. To effectively respond to this increased demand, the Department uses a targeted approach by directing inspections and outreach to work sites and industries with the highest injury and illness rates. In addition to workplace inspections, the Department employs a variety of compliance assistance and educational and outreach programs to improve employer health and safety management systems. By focusing on emergency preparedness, DOL is also helping employers be ready to respond to workplace emergencies such as natural disasters or terrorist attacks.

Under the provisions of the Federal Mine Safety and Health Act (Mine Act) of 1977 and the Mine Improvement and New Emergency Response Act of 2006 (MINER Act), the Department protects the health and safety of workers in the mining industry. More than 300,000 people work directly in the mining sector which provides essential raw materials for the nation's transportation infrastructure, construction and housing, communications, medicine, the arts, manufacturing, consumer goods, and agricultural industries. Just as mining is vital to the American economy, a safe and healthy mining workforce is critical to the continued successful operation of the mining industry. From FY 2000 to FY 2005, fatalities in the mining industry and the fatal injury rate both declined by 35 percent, the lowest levels since 1910 when statistics were first recorded. While these are outstanding achievements, the Department remains short of its goal of zero fatalities.

The Department recognizes that the mining environment is an inherently hazardous workplace. Current economic and demographic issues facing the mining industry add to this challenge. With the increasing demand for natural resources and commodities produced from mined materials, dangers to workers that had been decreasing over the past decades have reemerged. Unseen geologic instabilities, constantly changing terrain, the prevalence of large and complex haulage and mining equipment, and rapid industry growth are only a few of the factors that make maintaining and improving mine safety and health a continuing challenge. Critical to the Department's success is an effective blend of enforcement, technical support, and education and training, with compliance assistance as a fundamental ingredient of each.

The Department remains committed to promoting compliance with labor standards to better protect all workers, especially those most economically disadvantaged and vulnerable. Through proper administration and enforcement of laws, the Department ensures that low-wage workers receive the wages due them. These laws include the Fair Labor Standards Act (FLSA), which establishes minimum wage, overtime pay, record keeping, and child labor standards affecting full-time and part-time workers, and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), which regulates the hiring and employment activities of agricultural employers, farm labor contractors, and associations using migrant and seasonal agricultural workers.

The number of workers receiving back wages, which is the difference between what the employee was paid and the amount he or she should have been paid, has increased by 11 percent since FY 2001. This increase includes $166 million in back wages for over 241,000 employees in FY 2005, yet the Department faces a number of enforcement and monitoring challenges. The continued growth in Internet use and increased networking capabilities have encouraged American businesses to shift from traditional "brick and mortar" organizational structures to business operations with lines of authority stretching across the globe. Traditional methods of tracking, analyzing, and reporting on employer personnel practices often do not align with current business models. In addition, the nation increasingly relies on foreign workers to fill employers' needs in low-wage, labor-intensive industries such as agriculture, garment, health care, guard and janitorial services, restaurants, hotel/motels and day labor¹.

¹ Day labor refers to workers who assemble at a pick-up point to be hired for work and are returned to a drop-off point that same day.

The Department is responsible for the administration of anti-discrimination and equal employment opportunity regulations for Federal contractors and subcontractors employing more than 20 percent of the labor force in America, or approximately 26 million workers. Many Federal contractors have demonstrated their commitment to equal opportunity and have adopted inclusive human resource policies and procedures at all levels. Notwithstanding this success, discrimination still exists in the workplace and the Department is committed to ensuring full compliance with these laws. Strong enforcement focuses on worst offenders with increased consequences for violations. In FY 2005, the Department recovered a record $45,156,462 for 14,761 American workers who had been subjected to unlawful employment discrimination. Of that record recovery, 97 percent was collected in cases of systemic discrimination, those involving a significant number of workers or applicants subjected to discrimination because of an unlawful employment practice or policy. The Department also helps to protect employment retention rights for veterans and members of the National Guard and Reserve. The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides that returning service-members are reemployed in the job that they would have attained had they not been absent for military service. The law applies to virtually all public and private employers, regardless of size. The Department administers USERRA, investigates complaints, and performs educational outreach, all significant activities serving the men and women called to active duty over the course of the war on terror.

Agencies supporting this strategic goal include OSHA, MSHA, VETS, ESA's Wage and Hour Division (WHD) and the Office of Federal Contract Compliance Programs (OFCCP). To fulfill the Department's commitment to strong and effective enforcement of existing laws for safe and secure workplaces, DOL will emphasize the following strategies.

Performance Goal 3A. Improve workplace safety and health through compliance assistance and enforcement of occupational safety and health regulations and standards.

The Department's efforts to protect workers' safety and health are built on the foundation of a strong, fair, and effective enforcement program and outreach, education, compliance assistance and voluntary cooperative programs. Although the Department seeks to assist the large majority of employers who want to meet their obligations under its worker protection laws, it will direct its enforcement resources to those who expose employees to serious hazards. DOL will conduct its inspection programs to ensure that they identify the most hazardous workplaces and make the best use of inspection resources. DOL will also continue to make available effective compliance assistance programs and tools and offer employers and employees opportunities to participate in a variety of voluntary cooperative programs. Through these efforts DOL strives to improve workplace safety and health protections and prevent occupational injuries, illnesses and fatalities.

The Department will continue to use a balanced approach to protect the safety and health of America's workers. The Department's OSHA regulations and standards will continue to be developed or revised under the agency's focused regulatory agenda. DOL will continue to direct inspections and outreach at establishments and industries with the highest injury, illness, and fatality rates and will respond to complaints of serious workplace hazards. As part of the Department's outreach effort, selected sites with high injury and illness rates will be notified in writing of available services for addressing workplace hazards. Small business employers who receive notification will be provided an opportunity to seek assistance through the free, DOL-funded State Consultation Program. These efforts will be supplemented by National and Local Emphasis Programs designed to target unsafe conditions or high hazard industries. To complement its enforcement and standard-setting activities, the Department will provide compliance assistance, outreach, and training for employers and employees. DOL also offers a variety of cooperative programs including the Voluntary Protection Programs (VPP), the Alliance Program, the Strategic Partnership Program, the Consultation Program and its Safety and Health Achievement Recognition Program (SHARP), under which employers, employees, and other stakeholders work with the Department to improve workplace safety and health.

Experience demonstrates that the implementation of VPP principles results in a significant reduction in injury and illness rates. Overall, VPP participants experience an average of 50 percent fewer injuries and illnesses than non-VPP sites within their respective industries, and continued participation in VPP maintains these results. Both a 2005 Gallup study and OSHA's experiences in the Challenge Pilot support these findings.

Performance Goal 3B. Reduce work-related fatalities, injuries, and illnesses in mines.

A safe and healthy mining workforce is critical to the continued successful operation of the mining industry. From FY 2000 to 2005 the fatal injury rate in the mining industry declined by 35 percent. In that same period, the all-injury incident rate dropped by 23 percent. These are outstanding achievements; however, DOL remains clearly short of its goal of zero fatalities, zero injuries, and an end to occupational illness in the mining industry. As the nation witnessed the tragedies at the Sago Mine and Alma Mine No. 1 in West Virginia and the Darby Mine No. 1 in Kentucky — incidents which claimed the lives of 19 miners, mining — remains a dangerous occupation. It is DOL's responsibility, through MSHA, to conduct thorough investigations and identify the root causes to prevent similar occurrences. To that end, the Department is implementing the most significant mine safety legislation in nearly 30 years, the MINER Act of 2006.

The MINER Act represents the first revisions to Federal mine safety laws since the Federal Mine Safety and Health Act became law in 1977. It builds upon the efforts of MSHA to improve mine safety nationwide and calls for the modernization of safety practices and development of enhanced communication technology. The provisions include requiring each underground coal mine to develop and continuously update a written emergency response plan; make available two experienced rescue teams capable of a one-hour response time; and equip mines with wireless two-way communications and electronic tracking systems within three years. The Act also provides MSHA the authority to request an injunction to shut down a mine in cases where the mine operator has refused to pay a final MSHA penalty — raising the criminal penalty cap to $250,000 for first offenses and $500,000 for second offenses, as well as establishing a maximum civil penalty of $220,000 for flagrant violations. It also creates a scholarship program to mitigate an anticipated shortage of trained and experienced miners and MSHA enforcement personnel, and establishes the Brookwood-Sago Mine Safety Grants program to better identify, avoid and prevent unsafe working conditions in and around mines.

DOL will continue expanding its active partnerships with industry, labor, and equipment manufacturers in order to identify and evaluate new technologies for their potential to strengthen miners' heal