United States Department of Labor

DOL Annual Report, Fiscal Year 2009
Performance and Accountability Report

Required Supplementary Stewardship Information

STEWARDSHIP INVESTMENTS IN HUMAN CAPITAL

Stewardship investments are made by DOL on behalf of the nation, providing long-term benefits that cannot be measured in traditional financial reports.  These investments are made for the general public, and are intended to maintain or increase national economic productive capacity.  DOL’s stewardship investments are in human capital, reported as employment and training expenses in DOL’s net cost of operations.  Within DOL, the Employment and Training Administration (ETA), the Office of Job Corps (OJC), and the Veterans’ Employment and Training Service (VETS) administer training programs that invest in human capital. 

Employment and Training Administration and the Office of Job Corps

In 2009, ETA incurred total net costs of $130.4 billion. The majority of ETA’s total net costs consisted of unemployment benefit payments, which increased by over $80 billion in 2009.  Also included in ETA’s total net costs were investments in human capital of $4.7 billion, which provided services to over 6.7 million participants in 2009.  These investments were made through job training programs authorized by the Workforce Investment Act of 1998 (WIA), Title V of the Older Americans Act, the Trade Act of 1974, as amended by the Trade Adjustment Assistance Reform Act of 2002, and the National Apprenticeship Act of 1937.  The Office of Job Corps also invests in human capital through WIA job training programs.  OJC’s investment in human capital in 2009 was $1.6 billion.  In February 2009, Congress enacted the American Recovery and Reinvestment Act (ARRA), which authorized additional funding for job training, to be distributed through these established training programs.  The ETA and OJC job training programs under WIA are discussed below.  

Workforce Investment Act Job Training Programs

• Adult employment and training programs — ETA awards grants to States and territories to design and operate training and employment assistance programs for disadvantaged adults, including public assistance recipients.  ETA’s 2009 investment in human capital through WIA adult programs was $878 million.
• Dislocated worker employment and training programs — ETA awards grants to States to provide reemployment services and retraining assistance to individuals dislocated from their employment. ETA awards non-competitive grants for unexpected economic impacts and emergency dislocations; and competitive grants from the national reserve account to build training capacity and to train workers through community and technical colleges. ETA’s 2009 investment in human capital through WIA dislocated worker programs was $1,440 million.
• Youth programs — ETA awards grants to states to support program activities and services to prepare low-income youth for academic and employment success, including summer jobs, by linking academic and occupational learning with youth development activities.  ETA’s 2009 investment in human capital through WIA  youth programs was $1,125 million.
• Job Corps program — OJC awards contracts to support a system of primarily residential centers offering basic education, training, work experience and other support, typically to economically disadvantaged youth.  Large and small corporations and non-profit organizations manage and operate 94 Job Corps centers under these contractual arrangements.  The remaining 28 centers are operated through interagency agreements between DOL and the U.S. Departments of Agriculture and Interior.  In addition, 20 operators are contracted to provide outreach and admissions (OA) and career transition services (CTS).  OJC’s 2009 investment in human capital through the WIA Job Corps program was $1,640 million.
• Reintegration of Ex-Offenders — ETA supports programs to help individuals exiting prison make a successful transition to community life and long-term employment through the provision of mentoring and job training programs to promote the successful return of adult and juvenile ex-offenders into mainstream society.  ETA’s 2009 investment in human capital through ex-offender programs was $58 million.
• National programs — ETA’s National programs provide employment and training services and support through WIA nationally administered activities, for segments of the population that have special disadvantages in the labor market, including grants to Indian tribes and other Native American governments or non-profit organizations, and to Migrant and Seasonal Farmworker service organizations, to provide training, work experience and employment-related services to eligible participants.  ETA’s 2009 investment in human capital through WIA National Programs was $206 million.

Title V of the Older Americans Act, as Amended

ETA also invests in human capital through its older worker program, authorized under Title V of the Older Americans Act, to benefit low income workers, age 55 and over.  The Older Americans Act Amendments of 2006, reauthorized and provided important reforms to Title V’s Community Service Employment for Older Americans Program, including an increase in the percentage of program funds available for skills training and related services. 

• Community Service Employment for Older Americans program (CSEOA) — An employment and training program that provides part-time training through work experience in community service activities for low-income persons age 55 and older, who wish to remain in or re-enter the workforce, with the ultimate goal of moving the participants into unsubsidized employment.  ETA’s 2009 investment in human capital through the CSEOA program was $543 million.

Trade Act of 1974, as Amended

ETA makes investments in human capital through training programs authorized by the Trade Act of 1974, as amended by the Trade Adjustment Assistance Reform Act of 2002, which consolidated the Trade Adjustment Assistance (TAA) and the NAFTA Trade Adjustment Assistance programs into a single, enhanced TAA program.

• Trade Adjustment Assistance programs — TAA programs provide training, income support and related assistance to workers who have been adversely affected by foreign trade agreements.  TAA benefit payments are classified as income maintenance program costs and are not included as investments in human capital.  ETA’s 2009 investment in trade adjustment assistance training programs was $286 million.

The National Apprenticeship Act

• The National Apprenticeship Act of 1937 established the foundation for development of the nation’s skilled workforce through apprenticeship programs, which combine on-the-job learning with related technical instruction to teach workers the theoretical aspects of skilled occupations.  Funding provides a national system for skilled and technical occupational training, which promotes apprentices, registers apprenticeship programs, certifies apprenticeship standards, and safeguards the welfare of apprentices.  ETA’s 2009 investment in apprenticeship programs was $25 million.

Program Costs and Outputs

The cost of ETA and OJC investments in human capital, and the participants served by each, are shown in the chart below, for the five year period 2005 through 2009.

ETA And OJC Investments In Human Capital
Program Costs (in Millions and Participants Served (in Thousands)*
For The Five Year Period 2005 Through 2009

  *     Certain program costs were reclassified, beginning in 2005, due to changes in allocation methodologies adopted in 2009.
(1)   Adult program increases in participants served, beginning in 2006, can be attributed to state reports that include self-service only participants and/or co-enrolled Wagner-Peyser participants.
(2)   Dislocated Worker programs include Community Based Job Training Grant and National Emergency Grant costs and participants served.  These programs account for the 2009 increases in participants served.
(3)   Youth program participants served in 2009 include youth reported in Recovery Act monthly reports.
(4)   Ex-Offender programs include the Prisoner Re-entry and Youthful Offender programs.
(5)   National Programs include the Native American and Migrant and Seasonal Farmworker programs.
(6)   Other includes training programs for highly skilled occupations funded through H1-B fees, and costs for lapsed programs. 

Program Outcomes

The overall performance of ETA programs towards the achievement of DOL’s strategic goals is discussed in the Performance Section of this report.  Outcomes for training programs comprising ETA’s investment in human capital are shown below for the most current year measured.

Strategic Goal 1 — A Prepared Workforce

• Performance Goal 08.1B (Job Corps) — PY 2008

Improve educational achievements of Job Corps students and increase participation of Job Corps graduates in employment and education.

This goal was not achieved.  Job Corps did not reach the target for one of its three performance indicators.

• Performance Goal 08.1C (WIA Youth) — PY 2008

Increase placements and educational attainments for youth served through the WIA Youth Program.

This goal was achieved; ETA reached targets for all three performance indicators. 

• Performance Goal 09.1D (Apprenticeship) — FY 2009

Improve the registered apprenticeship system to meet the prospective training needs of business and workers.

This goal was not achieved. ETA failed to reach the target for two performance indicators.

Strategic Goal 2 — A Competitive Workforce

• Performance Goal 08.2A (WIA Adult) — PY 2008

Increase the employment, retention and earnings of individuals under the WIA Adult Program.

This goal was achieved. ETA reached targets for all three performance indicators.

• Performance Goal 08.2B (WIA Dislocated Workers) — PY 2008

Increase the employment, retention and earnings of individuals under the WIA Dislocated Worker Program.

This goal was not achieved. ETA failed to reach the target for one of three performance indicators.

• Performance Goal 08.2D (CSEOA) — PY 2008

Assist older workers enter growth industries through the Senior Community Service Employment Program.

This goal was not achieved. ETA failed to reach targets in one of three performance indicators.

• Performance Goal 09.2E (TAA) — FY 2009

Increase the employment, retention and earnings replacement of workers dislocated in important part because of trade and who receive trade adjustment assistance benefits.

This goal was achieved.

Veterans Employment and Training Service

The mission of the Veterans Employment and Training Service (VETS) is to provide veterans and transitioning service members with the resources and services to succeed in the 21st century workforce, maximizing employment opportunities, protecting employment rights, and meeting labor market demands with qualified veterans. 

Program Activities

Jobs for Veterans State Grants

The Jobs for Veterans Act (JVA) of 2002, which allocates resources to the States through the Jobs for Veterans State grants program, supports the majority of VETS activities through three major VETS programs, as discussed below: 

• Disabled Veterans Outreach Program (DVOP) Specialist — The DVOP, (38 U.S.C. 4103A), awards formula grants to State Workforce Agencies (SWAs) to support DVOP specialists providing intensive services to meet the employment needs of veterans, including counseling, assessment, lifelong learning skills and referral to training, particularly veterans with disabilities or those who recently separated from the military.
• Local Veterans Employment Representative (LVER) — The LVER, (38 U.S.C. 4104), provides grants to State Workforce Agencies (SWAs) for the appointment of LVER staff positions identified in Job Service local offices and One-Stop Career Centers, to enhance veterans’ services and help them into productive employment.
• Transition Assistance Program (TAP) — TAP, (38 U.S.C. 4215 and 10 U.S.C. 1144), operates as a partnership between the Departments of Labor, Defense and Veterans Affairs.  The program provides separating service members and their spouses or individuals retiring from military service with career counseling and training.  TAP workshops are provided throughout the United States and overseas.

Federal Management

VETS Federal management activities provide programs and policies to meet the employment and training needs of veterans.  The majority of resources are devoted to Uniformed Services Employment and Reemployment Rights and Veterans Preference Rights (USERRA) compliance and outreach. Activities, as discussed below:

• Uniformed Services Employment and Reemployment Rights and Veterans Preference Rights — The Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 (38 U.S.C. Chapter 43) protects civilian job rights and benefits for veterans, members of the National Guard and Reserves.  Veterans Preference for Federal Employment (38 U.S.C. 2021) promotes education of employers and employees on the employment rights of the individual veterans.

Homeless Veterans and Veterans’ Workforce Investment Programs

• Homeless Veterans Reintegration Project (HVRP) — The HVRP (38 U.S.C. 2021) provides employment assistance to homeless veterans through competitive grants to States or other entities in both urban and rural areas to operate employment programs to reach out to homeless veterans and help them become employed.
• Veterans’ Workforce Investment Program (VWIP) - The VWIP (38 U.S.C. 2913) provides competitive grants for training and retraining of veterans to create highly skilled employment opportunities for targeted veterans.

Program Costs and Outputs

The full cost of VETS programs is presented in the Statement of Net Costs.  The costs of VETS investments in human capital, and the participants served by this investment, are presented below, by major program.

VETS Investments In Human Capital
Program Costs and Participants Served (in Thousands)
For The Five Year Period 2005 Through 2009

(1)   DVOP and LVER participants served in 2008 were restated, based on final reports for the period.

Program Outcomes

The performance of VETS programs towards the achievement of DOL’s strategic goals is discussed in the Performance Section of this report.  Outcomes for 2009 are summarized below:

Strategic Goal 1 — A Prepared Workforce

• Performance Goal 08.1E (VETS) — PY 2008

Improve employment outcomes for veterans receiving One-Stop Career Center and veterans’ program services.

This goal was not achieved.  VETS did not meet targets for all four performance indicators.

Strategic Goal 3 — Safe and Secure Workplaces

• Performance Goal 09.3E (VETS) — FY 2009

Reduce employer-employee employment issues originating from service members’ military obligations conflicting with their civilian employment.

This goal was not achieved.  VETS fell short of their target for the performance indicator.