[Federal Register Volume 84, Number 103 (Wednesday, May 29, 2019)]
[Notices]
[Pages 24819-24822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11104]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice Requesting Public Comment on Three Proposed Reemployment-
Related Performance Measures Adopted by the Unemployment Insurance (UI) 
Program That Will Align With the Workforce Innovation and Opportunity 
Act (WIOA) Requirements

AGENCY: Office of Unemployment Insurance (OUI), Employment and Training 
Administration (ETA), Department of Labor (DOL).

ACTION: Request for public comment.

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SUMMARY: The Department of Labor (Department) is seeking public comment 
on the following proposed performance measures:
    [ssquf] Reemployment Rate for all UI Eligible Individuals after the 
2nd Quarter of Program Exit (a Core Measure);

[[Page 24820]]

    [ssquf] Reemployment Rate after the 2nd Quarter of Program Exit for 
Reemployment Service and Eligibility Assessment (RESEA) Program 
participants (a Program Performance Measure); and
    [ssquf] Median Wage in the 2nd Quarter after Program Exit for RESEA 
Program Participants (a Program Performance Measure).
    These measures are designed to align with the common performance 
measures for other workforce programs authorized by WIOA and will 
assist ETA in overseeing states' performance related to reemployment of 
UI claimants.
    This notice also informs states of the Department's discontinuance 
of the UI Facilitate Reemployment Core Measure.

DATES: Submit written comments to the office listed in the addresses 
section below on or before June 28, 2019.

ADDRESSES: Questions or comments in response to this notice can be 
submitted electronically to [email protected] or via postal mail, 
commercial delivery, or hand delivery.

FOR FURTHER INFORMATION CONTACT: Ms. Rhonda Cowie, Office of 
Unemployment Insurance, Room S-4524, Employment and Training 
Administration, U.S. Department of Labor, 200 Constitution Avenue NW, 
Washington, DC 20210 at 202 693-3821 (this is not a toll-free number), 
TTY 1-877-889-5627 (this is not a toll-free number). Due to security-
related concerns, there may be a significant delay in the receipt of 
submissions by United States mail. You must take this possible delay 
into consideration when preparing to meet the deadline for submitting 
comments. The Department will respond to comments directly as 
necessary. The Department recommends that comments not include personal 
information such as social security number, personal address, telephone 
number, email address, or confidential business information in the 
event comments are publically published. It is the responsibility of 
the commenter to determine what is personal or confidential business 
information.

SUPPLEMENTARY INFORMATION:

Background

    Historically, it has been a goal of the UI system, the Wagner-
Peyser Employment Service, and other workforce programs, to support 
reemployment of UI claimants as quickly as possible. Doing so helps the 
claimant quickly reestablish earning power and also saves state UI 
trust funds from paying more benefits than necessary. The relatively 
recent enactments of both the Workforce Innovation and Opportunity Act 
of 2014 (Pub. L. 113-128) and the Bi-Partisan Budget Act of 2018 (Pub. 
L. 115-123), which permanently authorized the RESEA program, reinforce 
this goal. In addition, WIOA provides for the common performance 
outcomes for public workforce programs broadly.
    The proposed performance measures for the overall UI program and 
for the RESEA program provide standardized metrics that align with the 
WIOA common performance measures and enable state workforce agencies to 
assess their efforts to secure positive employment outcomes for UI 
claimants.

I. WIOA and Reemployment of UI Claimants

    WIOA was signed into law on July 22, 2014, and is designed to help 
job seekers access employment, education, training, and support 
services to succeed in the labor market and match employers with the 
skilled workers they need to compete in the global economy. Section 116 
of WIOA requires states that operate core programs of the publicly-
funded workforce system to comply with common performance 
accountability requirements. The vision of WIOA is that all workforce 
programs will adopt these measures as appropriate. The UI program is a 
mandatory partner in the publicly-funded workforce system and, as such, 
it is logical and appropriate for both the regular UI program and the 
RESEA program to adopt and align performance measures related to 
reemployment of UI claimants with the WIOA measures.
    Under WIOA, states are required to submit common performance data 
to demonstrate that specified performance levels are achieved. States 
currently collect and report the data needed for calculating these 
proposed measures through the Workforce Integrated Performance System 
(WIPS). WIPS is an electronic performance reporting system for the 
Department's employment and training grants. Since September 30, 2016, 
states have been submitting individual record data through WIPS as part 
of the state quarterly and annual performance reporting process using 
the Participant Individual Record Layout (PIRL) (ETA 9172). The PIRL 
provides a standardized set of data elements, definitions, and 
reporting instructions used to describe the characteristics, 
activities, and outcomes of WIOA participants.
    The WIOA performance indicators (performance measures) incorporate 
a statistical adjustment model, developed by the Department to 
establish performance year targets. The model is based on the actual 
economic conditions and characteristics of WIOA participants and is 
updated and refined with ongoing use and application as WIOA outcome 
data become available. ETA intends to use this previously established 
statistical adjustment model to establish performance year targets for 
the proposed Core Measure.

II. Reemployment Service and Eligibility Assessment Program (RESEA)

    The RESEA program was permanently authorized by the Bipartisan 
Budget Act of 2018, adding a new Section 306 to the Social Security 
Act. One of the key goals of the RESEA program is to improve employment 
outcomes of individuals that receive unemployment compensation and to 
reduce average duration of receipt of such compensation through 
reemployment. A second key goal is to promote alignment with the WIOA 
vision of increased program integration and service delivery. Using the 
WIOA common measures to evaluate the states' RESEA program will 
effectively promote both of these goals.
    To promote greater integration of the RESEA program into the 
workforce system through the alignment with the WIOA common measures 
and to support calculation of the measures, ETA requires that RESEA 
participants be co-enrolled in Wagner-Peyser-funded Employment Services 
as part of the initial RESEA session. This co-enrollment requirement 
was implemented in Fiscal Year 2017. As part of this enrollment, RESEA 
participants must be appropriately documented in Wagner-Peyser case 
management and performance reporting systems. The co-enrollment 
requirement enables implementation of the proposed Program Performance 
Measures to be done without any new reporting burden for states.

III. Discontinuance of the UI Facilitate Reemployment Measure for All 
UI Claimants

    Effective October 1, 2019, ETA is discontinuing the UI Facilitate 
Reemployment Core Measure and the requirement that states quarterly 
submit to ETA the ETA 9047 (Reemployment of UI Benefits Recipients) 
report. The ETA 9047 report collects data based on the prior Workforce 
Innovation Act (WIA) requirement that reemployment be measured in the 
quarter after a claimant began receiving UI benefits. The sole 
explanatory variable used in the statistical adjustment model for this 
measure was the Total Unemployment Rate and, during a declining 
economy,

[[Page 24821]]

it was an effective indicator for reemployment. However, as the economy 
improved, this indicator became less effective leading to the measure 
failing to adequately capture state performance. Additionally, based on 
its WIA format, this measure was not aligned with WIOA standards. The 
proposed Reemployment Rate Core Measure for all UI eligible individuals 
and the proposed Reemployment Rate Program Performance Measure for 
RESEA program participants align with WIOA standards, and are more 
effective measures of UI claimants' reemployment. Implementation of 
these proposed measures will streamline state reporting since both the 
Workforce and UI programs will use the same data source and method of 
assessment.

IV. Proposed Core Measure and Program Performance Measures

    To support reemployment goals for UI claimants and the vision of 
WIOA for common performance measurement across workforce programs, ETA 
proposes the following measures to assess UI program performance in the 
reemployment of claimants:

A. Reemployment Rate for All UI Eligible Individuals After the 2nd 
Quarter of Program Exit

    This proposed Core Measure captures the percentage of UI eligible 
individuals who are in unsubsidized employment during the second 
quarter after this same group exits from the WIOA program.
    Methodology: This proposed Core Measure calculates the number of UI 
eligible individuals who exited during the reporting quarter who are 
found to be employed, either through direct UI wage record match, 
Federal or military employment records, or supplemental wage 
information, in the second quarter after the exit quarter DIVIDED by 
the total number of UI eligible participants who exited during the 
reporting period, and expressed as a percentage. This is reflected in 
the following equation:
[GRAPHIC] [TIFF OMITTED] TN29MY19.005

B. Reemployment Rate After the 2nd Quarter of Program Exit for RESEA 
Program Participants

    This proposed Program Performance Measure captures the percentage 
of RESEA participants (a sub-set of UI participants) who are in 
unsubsidized employment during the second quarter after this same group 
exits from the WIOA program.
    Methodology: This proposed measure calculates the number of RESEA 
participants who exited during the reporting quarter who are found to 
be employed, either through direct UI wage record match, Federal or 
military employment records, or supplemental wage information, in the 
second quarter after the exit quarter DIVIDED by the total number of 
RESEA participants who exited during the reporting period, and 
expressed as a percentage. This is reflected in the following equation:
[GRAPHIC] [TIFF OMITTED] TN29MY19.006

C. Median Earnings in 2nd Quarter After Exit Quarter for RESEA 
Participants

    This proposed Program Performance Measure captures the wage amount 
that is at the midpoint of all the wages (PIRL element 1704) between 
the highest and lowest wage earned in the second quarter after exit for 
all RESEA participants who exited a core program. Wages are currently 
reported as a data element in the PIRL.
    Methodology: To determine the midpoint, the 2nd quarter after exit 
wages recorded in PIRL element 1704 are sorted from lowest to highest. 
If an odd number of unique records have been reported, the mid-point 
value is defined as the value of the (n+1)/2 record where n is the 
total unique records with 2nd quarter after exit wages. Thus if 99 wage 
records are reported in the 2nd quarter after exit, the midpoint is the 
50th record in the array [(99 + 1) / 2 = 50]. If an even number of 
unique records has been reported, then the mid-point is the arithmetic 
mean of the two midmost wage values. Therefore, if 100 wage records are 
in the 2nd quarter after exit, the mid-point is (100 + 1)/2 = 50.5 and 
the median is the mean of the two midmost values is defined as the 
value of the sum of the 50th and 51st record divided by 2.
    These proposed measures support the role of the UI program, 
including RESEA, as a one-stop partner in American Job Centers by 
recognizing and measuring the UI programs' effectiveness in 
contributing to the reemployment of UI claimants;

[[Page 24822]]

promoting greater program integration through common metrics across 
programs; and increasing alignment with the broader vision of WIOA.

V. Application of the WIOA Statistical Adjustment Model To Establish 
Targets

    Targets for the proposed Reemployment Rate for All Eligible 
Individuals after the 2nd Quarter of Program Exit Core Measure will be 
based on the performance targets established for Wagner-Peyser program 
participants in the WIOA Performance Negotiation Tool. This tool is 
intended to facilitate the process for setting performance targets, 
which are based on the Statistical Adjustment Model. The Statistical 
Adjustment Model is required by Sec. 116(b)(3)(viii), of WIOA, and 
established by the Department as an objective statistical regression 
model to be used to make adjustments to the state negotiated levels of 
performance for actual economic conditions and the characteristics of 
participants served at the end of the program year. It also is a key 
factor to be used in arriving at mutual agreement on state negotiated 
levels of performance. State-level actual performance outcomes are a 
function of (a) the characteristics of the participants being served, 
and (b) the labor market conditions in which those participants are 
being served. WIOA specifically requires that both of these factors be 
accounted for, and the use of a statistical model enables accounting 
for variations as a result of both factors when negotiating performance 
targets.
    More detailed information is available for both the WIOA 
Performance Negotiation Tool and the Statistical Adjustment Model at 
the Department website: https://www.doleta.gov/performance/guidance/negotiating.cfm.

    Note: No performance targets will be set for the first 
performance period following implementation of the proposed 
Reemployment Rate for all UI eligible individuals after the 2nd 
Quarter of Program Exit Core Measure. State baseline data collected 
in the first performance period will inform performance targets in 
subsequent performance periods based on the Wagner-Peyser targets as 
established in the WIOA Performance Negotiation Tool. The 
Statistical Adjustment Model does not apply to the Reemployment Rate 
after the 2nd Quarter of Program Exit for RESEA Program Participants 
and Median Wage in the 2nd Quarter after Program Exit for RESEA 
Program Participants Program Performance Measures, and no 
performance targets will be established for these two measures.

VI. Data Source

    As noted above, the data to support the proposed performance 
measures will come from the PIRL (ETA 9172). The PIRL framework allows 
states to organize data in a standardized format within WIPS using the 
various elements or data points. The following PIRL elements are used 
in the calculation of the measures described in Section IV above:
    [ssquf] Date of Program Exit--The quarter in which 90 days has 
passed and a WIOA participant has not received staff assisted services 
and is exited from the program (Data Element 901).
    [ssquf] UI Eligible Status--A WIOA participant who meets 
Unemployment Compensation (UC) Eligible Status Criteria by receiving or 
exhausting UI benefits (also called a UI Eligible Participant) (Data 
Element 401).
    [ssquf] RESEA Participants--Meets UC Eligible Status Criteria (Data 
Element 401=1, RESEA).
    [ssquf] Employed In 2nd Quarter after Exit Quarter (Data Element 
1602).
    [ssquf] Other Reasons for Exit Criteria (Data Element 923).
    [ssquf] Wages in 2nd Quarter After the WIOA program Exit Quarter 
(Data Element 1704).
    Additional information on the above PIRL elements can be found at 
the link below: https://www.doleta.gov/performance/pfdocs/ETA_9172_DOL_PIRL_062816.pdf.
    There is no additional reporting burden to states as a result of 
implementing these measures since ETA will use data that is currently 
collected and reported via the PIRL (ETA 9172).

VII. Performance Period

    The performance period for these measures is the one-year period 
ending March 31 of the performance year.

VIII. Data Collection Costs

    Because these proposed measures use data currently collected 
through the ETA 9172 report (OMB Control #1205-0521--Workforce 
Innovation and Opportunity Act Performance Accountability, Information, 
and Reporting System), there will be no data collection start-up costs 
or any costs in addition to the current reporting requirements 
associated with the ETA 9172 report.

    Signed in Washington, DC.
Molly Conway,
Deputy Assistant Secretary for Employment and Training.
[FR Doc. 2019-11104 Filed 5-28-19; 8:45 am]
BILLING CODE 4510-FW-P