Workforce Investment Act: Employers Found One-Stop Centers Useful
in Hiring Low-Skilled Workers; Performance Information Could Help
Gauge Employer Involvement (22-DEC-06, GAO-07-167).
The Workforce Investment Act of 1998 (WIA) required that many
federal workforce employment and training programs for low-income
individuals, the unemployed, and other job seekers provide their
services through a streamlined delivery system. WIA also promoted
greater employer engagement in this delivery system by, among
other things, calling for it to help meet employers' workforce
needs with services provided through one-stop centers. In 2005,
we found that about half of employers were aware of their local
one-stop centers. However, questions remained about how employers
use them. In this report, GAO addressed (1) the extent to which
employers, both large and small, hire their employees through
one-stops; (2) the extent to which these employers view one-stop
services as useful; and (3) factors that may affect one-stop
service to employers. To answer these questions we surveyed
employers who had used the one-stop system, visited eight
one-stops, and talked to one-stop and Labor officials.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-07-167
ACCNO: A64425
TITLE: Workforce Investment Act: Employers Found One-Stop
Centers Useful in Hiring Low-Skilled Workers; Performance
Information Could Help Gauge Employer Involvement
DATE: 12/22/2006
SUBJECT: Data collection
Employees
Employment assistance programs
Hiring policies
Performance measures
Personnel recruiting
Statistical data
Surveys
Program evaluation
Job placement
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-07-167
* [1]Results in Brief
* [2]Background
* [3]Employers Hired About 9 Percent of 2005 New Hires through On
* [4]Employers Mostly Used Job Posting Services and Generally Rep
* [5]Employers Often Used One-Stops' Job Posting Service, and Les
* [6]Employers Generally Reported That Using One-Stop Services Pr
* [7]Employers Who Used One-Stop Services Generally Reported Posi
* [8]For Services They Did Not Use, Employers Reported Either Not
* [9]One-Stop Service to Employers May be Affected by Limited Ski
* [10]Skills of the Labor Pool May Make It Difficult for One-Stops
* [11]A Limited Number of One-Stop Staff Are Available to Serve Em
* [12]The Lack of Employer-Related Performance Information That La
* [13]Most of the One-Stop Officials We Interviewed Reported That
* [14]Conclusions
* [15]Recommendations for Executive Action
* [16]Agency Comments
* [17]Survey of Employers
* [18]Site Visits
* [19]Interviews with Labor Officials and Others
* [20]GAO Contact
* [21]Staff Acknowledgments
* [22]GAO's Mission
* [23]Obtaining Copies of GAO Reports and Testimony
* [24]Order by Mail or Phone
* [25]To Report Fraud, Waste, and Abuse in Federal Programs
* [26]Congressional Relations
* [27]Public Affairs
United States Government Accountability Office
Report to Congressional Requesters
GAO
December 2006
WORKFORCE INVESTMENT ACT
Employers Found One-Stop Centers Useful in Hiring Low-Skilled Workers;
Performance Information Could Help Gauge Employer Involvement
GAO-07-167
Contents
Letter 1
Results in Brief 2
Background 4
Employers Hired About 9 Percent of 2005 New Hires through One-Stops,
Two-Thirds of Whom Were Low-Skilled 6
Employers Mostly Used Job Posting Services and Generally Reported That
Using Any Service Produced Positive Results 10
One-Stop Service to Employers May be Affected by Limited Skills in Their
Labor Pool, Limited Staffing, and the Lack of Employer-Related Performance
Information 15
Conclusions 18
Recommendations for Executive Action 19
Agency Comments 19
Appendix I Objectives, Scope, and Methodology 21
Appendix II Comments from the Department of Labor 25
Appendix III Contact and Staff Acknowledgments 27
GAO Related Products 28
Table
Table 1: One-Stop Centers We Visited 23
Figures
Figure 1: Employees Hired through One-Stops 7
Figure 2: Comparison of Actual Hiring through One-Stops with Employers'
Perceptions of the One-Stops' Labor Pool 8
Figure 3: Proportion of Skilled Workers Hired through One-Stops and
through Private Sector Recruiting Firms 9
Figure 4: Percentage of Employers That Used Each One-Stop Service in 2005
and How They Rated Its Usefulness 11
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
United States Government Accountability Office
Washington, DC 20548
December 22, 2006 December 22, 2006
The Honorable Michael B. Enzi Chairman The Honorable Edward M. Kennedy
Ranking Minority Member Committee on Health, Education, Labor, and
Pensions United States Senate The Honorable Michael B. Enzi Chairman The
Honorable Edward M. Kennedy Ranking Minority Member Committee on Health,
Education, Labor, and Pensions United States Senate
The Honorable Patty Murray Ranking Minority Member Subcommittee on
Employment and Workplace Safety Committee on Health, Education, Labor, and
Pensions United States Senate The Honorable Patty Murray Ranking Minority
Member Subcommittee on Employment and Workplace Safety Committee on
Health, Education, Labor, and Pensions United States Senate
In any given quarter, the U.S. economy creates and destroys about 8
million jobs. The resulting dynamic requires that workers find new jobs
and employers hire new workers. Those who are seeking jobs, particularly
the unemployed as well as low-income individuals, can access federal
workforce employment and training programs, many of which are overseen by
the Department of Labor (Labor) through a streamlined delivery system
required by the Workforce Investment Act of 1998 (WIA). This system
consists of about 1,900 career, or "one-stop," centers across the country
where programs can provide their services. WIA also promoted greater
employer engagement in this delivery system by requiring that employers
make up the majority of members and lead local and state workforce
investment boards that oversee the one-stop centers and by calling for
these boards to help meet employers' workforce needs with services
provided through one-stop centers. While the law does not require any one
particular service, the centers do offer services such as job postings,
access to training for existing employees, information about employee
resources like day care, or simply the use of a center's facilities for
conducting job fairs or interviews. Employers can also pay a fee for more
customized services, if they are offered. In addition, the local boards
can solicit funding from employers and others to pursue initiatives in job
development and training. In any given quarter, the U.S. economy creates
and destroys about 8 million jobs. The resulting dynamic requires that
workers find new jobs and employers hire new workers. Those who are
seeking jobs, particularly the unemployed as well as low-income
individuals, can access federal workforce employment and training
programs, many of which are overseen by the Department of Labor (Labor)
through a streamlined delivery system required by the Workforce Investment
Act of 1998 (WIA). This system consists of about 1,900 career, or
"one-stop," centers across the country where programs can provide their
services. WIA also promoted greater employer engagement in this delivery
system by requiring that employers make up the majority of members and
lead local and state workforce investment boards that oversee the one-stop
centers and by calling for these boards to help meet employers' workforce
needs with services provided through one-stop centers. While the law does
not require any one particular service, the centers do offer services such
as job postings, access to training for existing employees, information
about employee resources like day care, or simply the use of a center's
facilities for conducting job fairs or interviews. Employers can also pay
a fee for more customized services, if they are offered. In addition, the
local boards can solicit funding from employers and others to pursue
initiatives in job development and training.
In 2005, we found that about half of employers were aware of their local
one-stop centers.^1 However, questions remained about how employers were
using those one-stop centers. In view of the desire of policymakers to
engage and serve employers of all sizes in the workforce system, we looked
specifically at how some employers make use of the one-stop centers. We
have examined (1) the extent to which employers, both large and small,
hire their employees through one-stops; (2) the extent to which these
employers view one-stop services as useful; and (3) factors that may
affect one-stop service to employers.
To answer these questions, we conducted a Web-based survey of employers
from our 2005 report who told us they had previously used one-stops,
interviewed 17 one-stop officials from 10 one-stops in 5 states, and
interviewed Labor officials and officials from other organizations with
knowledge of workforce programs. We made an extra effort to contact small
employers but could not reach many of them because of business closure and
employee turnover. The results of our survey represent only those who
completed it and cannot be generalized to the universe of businesses that
have used one-stops. We obtained completed surveys from 113 businesses,
which we categorized in three groups by size: 14 small, 48 medium, and 51
large businesses. Geographically these businesses were located in 36
states and ranged from a large fast food franchise to a sheet metal
fabricator with only 10 employees. We visited 8 one-stop career centers
representing a mix of urban, suburban, and rural areas in California,
North Carolina, Wisconsin, and Wyoming, and conducted phone interviews
with officials in 2 one-stop centers in Pennsylvania. In some cases,
officials from Local Workforce Investment Boards participated in these
interviews. We selected 4 of these states because they had the most
employers that had used one-stop services in our national survey, and
Wyoming for a rural perspective. We performed our work in accordance with
generally accepted government auditing standards between December 2005 and
October 2006. See appendix I for details of our methodology.
Results in Brief
Regardless of size, employers completing our survey hired a small
percentage of their employees through one-stops, and two-thirds of those
they hired were low-skilled. About 80 of 113 employers--those who could
provide estimates--reported hiring about 9 percent of their new employees
through the one-stops in 2005. This amounted to roughly 1,300 of the
14,500 workers they hired in 2005. They also reported that about
two-thirds of those hired through the one-stops were low-skilled workers,
in part because they thought the labor available from the one-stops was
mostly low-skilled. Employers told us they would hire more job seekers
from the one-stop labor pools if they had the skills for which they were
looking.
^1 GAO, Workforce Investment Act: Employers Are Aware of, Using, and
Satisfied with One-Stop Services, but More Data Could Help Labor Better
Address Employers' Needs, [28]GAO-05-259 (Washington. D.C.: Feb. 18,
2005).
Employers primarily used only one of the seven services available though
the one-stop, but they generally viewed whatever services they did use as
helpful. Most employers used the centers' job posting service. Fewer made
use of the one-stops' physical space or job applicant screening services.
Still, when employers did take advantage of a service, they generally
reported that it was useful because it produced positive results. In the
case of posting job openings, employers reported that it resulted in more
applicants than would have applied otherwise. The few employers who used
one-stop facilities reported that doing so increased their visibility when
hiring. They also said that using one-stop services saved them time and
money. One employer, for example, noted that use of the one-stop allowed
his company to avoid renting hotel conference rooms for job interviews
when it was hiring. When employers did not use a particular one-stop
service, in most cases they said that they either were not aware that the
one-stop provided the service, said they obtained it elsewhere, or said
that they carried through on their own.
At least three factors may affect one-stops' service to employers. The
first of these is the skill set of the labor pool. Citing this factor as
one of their top challenges, one-stop officials said that their job
candidates generally had either low skills or lacked the specialized
skills needed by employers. They also said, however, that employers may
perceive the available pool as less skilled than it really is. One-stop
officials cited the limited number of staff available to serve employers
as a second factor affecting their service to employers. However, few of
the one-stops we visited reported having received private sector funds
that could be used to hire more staff, even though the law allows for
charging fees or soliciting money from employers, and we have identified
charging fees as a promising practice. The fact that Labor collects
limited information on employer engagement in the one-stop system is a
third factor that may affect the level of service to employers. One-stop
officials at several centers noted that performance information generally
focuses on services to job seekers and not employers. While Labor collects
information on employer satisfaction, this measure does not provide
information on how employers use the system. Labor has said its new data
collection system will include such information, but this remains to be
seen. Additionally, while Labor has launched initiatives designed, in
part, to help one-stop centers model approaches to serving employers, the
impact of these initiatives may be limited to those centers selected to
participate in the program or receive program grants. A majority of the
one-stop officials we spoke with reported they were not participants in
Labor's national initiatives such as the High-Growth Job Training
Initiative or the National Business Learning Partnership, and that these
had no impact on their capacity to serve employers.
In this report, we recommend that the Secretary of Labor follow through
with plans to collect information on employers' use of one-stop services
and develop a way to measure employer engagement in the workforce
investment system as part of the Department of Labor's performance
reporting system. In its comments on a draft of this report, Labor noted
its intent to collect such information.
Background
The Workforce Investment Act of 1998 sought to improve the quality of the
workforce by creating a streamlined delivery system for services offered
by 17 federal workforce development programs. Under WIA, each program is
required to make services available through the one-stop center system
established for each local area. The services available to job seekers at
one-stops include career counseling and referral to training programs.
Although not specified under WIA, the services available to employers at
one-stops include posting job openings, screening job applicants,
assisting with downsizing, accessing labor market information, providing
information on financial incentives and employee supports,^2 training
services, and making available one-stop facilities.
So that the private sector drives the employment and training activities
of the workforce investment system, WIA requires that business
representatives lead and constitute the majority of members on state and
local workforce investment boards. Each local board is responsible for
developing a comprehensive local plan that describes the one-stop delivery
system established in a particular local area. This plan must identify the
workforce investment needs of area businesses and describe how the board
will ensure that one-stop service providers meet these needs. Although
Labor oversees the system, states and local areas have flexibility to
design and operate their local systems as long as they are not
inconsistent with the requirements of WIA.
^2 This information includes financial incentives that encourage employers
to hire, such as the Work Opportunity Tax Credit and programs that support
employees such as child care and transportation assistance.
Labor has several initiatives that were designed, in part, to help
one-stop centers model approaches to serving employers. The President's
High-Growth Job Training Initiative targets worker training and career
development resources toward helping workers gain the skills they need to
build careers in fields like health care, information technology, and
advanced manufacturing jobs. According to Labor officials, more than 138
High-Growth Job Training Initiative grants have been awarded totaling
approximately $250 million, as of August 2006. The grants are awarded to
local workforce investment boards that oversee one-stop centers. The
National Business Learning Partnership program was designed to match
high-performing local workforce areas with local sites that wish to engage
businesses more successfully. As part of this program, a protege site is
matched with a mentor to provide one-on-one consultation, develop a work
plan, and support a transition to a demand-driven system. In order to
participate in the National Business Learning Partnership program, the
workforce investment board overseeing the local one-stop center must
submit an application for the low-performing one-stop to become a protege.
Not all who apply are accepted into the program.
While Labor assesses WIA programs through such measures as job seeker
employment rates, average earnings, and job retention, only one measure
for these programs relates directly to employer services: employer
satisfaction. In accordance with an Office of Management and Budget
initiative, Labor also assesses workforce programs with common measures,
which are similar to some of the WIA measures. However, none relate
directly to employer services. To improve the collection of performance
information, Labor is in the process of designing a new performance
reporting system: the Workforce Investment Streamlined Performance
Reporting System, slated for implementation in 2007.
In previous work on employers and one-stops, we found that as a company's
size increased, so did awareness and use of one-stop services. Employers
were more likely to use hiring services--posting job openings and
screening job applicants--than they were to use training services. In
general, employers were satisfied with the services they received.
Employers Hired About 9 Percent of 2005 New Hires through One-Stops, Two-Thirds
of Whom Were Low-Skilled
Employers responding to our survey hired a small percentage of their
workers through one-stops in 2005, about 9 percent.^3 This amounted to
roughly 1,300 of the 14,500 workers hired by the 80 employers we surveyed
who could provide this information. Although some employers had hired a
large percentage of their workers through the one-stops, most had hired
only a small percentage. In a typical case, a manufacturer hired only 1 of
its 21 new hires (5 percent) through one-stops. In a less typical case, a
manufacturer hired 250 of its 1,100 new hires (23 percent) by posting all
of its job openings with the local one-stop center. According to Labor
officials, the size and skills of the local labor pool overall (not just
at the one-stops), along with a wide array of other factors, may affect
the ability of an employer to hire a large percentage of workers from the
one-stops. There were no material differences in hiring patterns for
employers of different sizes.^4
About two-thirds of workers hired through one-stops were low-skilled,
according to the employers who provided us with an estimate.^5 Of the
approximately 1,300 workers employers hired in 2005, about 900 were low-
skilled.^6 (See fig. 1.) Employers said they relied on these workers to
fill their entry-level positions. Employers in the food service industry
hired low-skilled workers from one-stops to fill their cashier and wait
staff positions. Another employer, in the manufacturing industry, hired
low-skilled workers for entry-level positions on the production floor.
^3 The results of our survey cannot be generalized to the universe of
businesses that have used one-stops and only represent the views of those
who responded to the survey. Our survey respondents are a subset of
respondents to a survey we conducted in 2004. In that nationally
representative survey, 466 employers told us that they had used one-stop
services. We obtained valid e-mail addresses from 178 of these businesses.
In some cases employers were unwilling to provide their e-mail address and
in other cases the employers were no longer in business. We sent a
Web-based survey to these 178 businesses and later attempted to contact an
additional 25 small businesses. We received completed surveys from June
through September 2006 from a total of 113 businesses. Appendix 1 contains
additional information on the limitations of our survey methodology.
^4 We found no significant differences in hiring patterns between large
and medium businesses, and because of the limited number of small
businesses, we did not include them in the analysis.
^5 A low-skilled worker, for the purposes of our survey, is a worker with
a high-school education, its equivalent in training, or less.
^6 Across all sources, including one-stops, 54 percent of those hired were
low-skilled, 26 percent were mid-skilled, and 19 percent were
high-skilled.
Figure 1: Employees Hired through One-Stops
Note: This information cannot be generalized to all employers who use
one-stop services. The numbers used in this graphic are from those
employers who could provide us with estimates, 80 of the 113 employers who
completed our survey.
Some of the employers completing our survey reported that they had used
one-stops to hire mostly low-skilled employees, in part because they
thought it was mostly low-skilled workers who were available from the
centers. Based on their interactions with one-stops, employers
characterized the labor pool at one-stops as being, on average, 61 percent
low-skilled, 26 percent mid-skilled, and just 12 percent high-skilled.
With the exception of high-skilled workers, these percentages closely
mirror the proportion of workers at various skill levels that they
actually hired through the one-stops in 2005. (See fig. 2.) Although many
indicated a willingness to hire more job seekers from the one-stops, some
questioned whether such hires would be qualified. For example, an employer
in Green Bay, Wisconsin, told us that he had a difficult time filling his
open positions for welders and would be more than willing to hire from the
one-stop center if it had qualified job seekers.
Figure 2: Comparison of Actual Hiring through One-Stops with Employers'
Perceptions of the One-Stops' Labor Pool
Note: This information cannot be generalized to all employers who use
one-stop services. The numbers used in this graphic are from those
employers who could provide us with estimates, 80 of the 113 employers who
completed our survey. Because of rounding, percentages for employers'
perceptions do not sum to 100.
A greater proportion of the workers that employers hired through private
sector recruiting firms were high-skilled, in comparison to the proportion
they hired in the one-stop. Specifically, 51 percent of the workers they
hired through the private sector recruiting firms were high-skilled in
comparison to 5 percent of the workers they hired through one-stops. (See
fig. 3.) Employers told us they used private sector recruiting firms
either to find employees with specific expertise and experience or when
they had a difficult time finding employees. For example, a financial
services business used private sector recruiting firms to search for new
executives. Another said these firms were only used when it was not
possible to fill an open position after a reasonable period of time.
Figure 3: Proportion of Skilled Workers Hired through One-Stops and
through Private Sector Recruiting Firms
Note: This information cannot be generalized to all employers who use
one-stop services. The numbers used in this graphic are from those
employers who could provide us with estimates, 80 of the 113 employers who
completed our survey.
Despite their perceptions of skill levels available through the one-stops,
employers completing our survey seemed willing to recruit from any source
if there were qualified employees available. Many said they attempted to
recruit employees from a variety of sources, including one-stops, and
hired the best applicant from any of such sources. For example, one said
the firm had listed all of its job openings with the local one-stop, but
ended up finding most employees through employee referral and walk-ins.
Another employer that hired through employee referrals provided a bonus to
workers who referred new employees to the company. In addition to having
workers approach them, some employers also recruited workers directly from
colleges and universities. Another said it used newspapers and the
one-stop center and found employees from both. According to Labor
officials, generally the most effective recruitment strategy is
word-of-mouth through friends and relatives.
Employers Mostly Used Job Posting Services and Generally Reported That Using Any
Service Produced Positive Results
Employers completing our survey primarily used only one of the seven
services generally available though the one-stop, the job posting service.
However, when employers did take advantage of a service, in general they
reported that it was useful because it produced positive results, such as
a pool of applicants larger than would have been available otherwise.
Employers also reported positive experiences in terms of interacting with
one-stop staff, as well as savings in time and money. Employers who did
not use a particular one-stop service reported that they were either not
aware that it was offered, obtained the service elsewhere, or had carried
through on their own.
Employers Often Used One-Stops' Job Posting Service, and Less Frequently Used
Other Available Services
Of all services offered by one-stops, the one most often used by employers
we surveyed was posting jobs.^7 Other services, such as screening
applicants, using one-stop facilities, and using labor market information,
were used less. A small fraction of employers we surveyed used information
about financial incentives, assistance with downsizing and averting
layoffs, or training services.^8 (See fig. 4.)
^7 Because the number of employers who used a service was often small, we
could not determine if there were material differences in the type of
one-stop service used by employer size.
^8 As would be expected, some services, such as assistance with averting
layoffs or downsizing, are not very often needed by employers.
Figure 4: Percentage of Employers That Used Each One-Stop Service in 2005
and How They Rated Its Usefulness
Note: This information cannot be generalized to all employers who use
one-stop services. To calculate the percentage of employers that used each
one-stop service, we divided the number of employers who reported using
each service by the number of employers who reported using any service in
2005, 81 of the 113 employers who completed our survey.
Employers Generally Reported That Using One-Stop Services Produced Positive
Results, with the Exception of Posting Job Openings, where Results Were Mixed
Most employers who posted jobs with the one-stop said the service was
useful. However, others found that it did not produce the candidates they
needed. Most of those who used the job posting service said that it was
useful or very useful because it increased the size of the audience they
were able to reach and resulted in a greater number of job applicants. A
company official at one mid-sized medical laboratory characterized
one-stops as a place where "almost anyone would go to find a job," and
said posting jobs with the one-stop enabled the lab to reach a large and
diverse audience. For one small business manager, posting jobs with the
one-stop produced about 900 applications. For some employers, however, a
greater number of applicants, in and of itself, was not productive. About
one-third of employers posting jobs with the one-stop did not find it to
be useful. The owner of a mid-sized manufacturing company in Wisconsin
echoed the experiences of others in telling us that when he posted a job
opening with the one-stop it did not generate the applicants who had the
qualifications he needed.
Although fewer in number, employers who screened applicants or accessed
labor market information through the one-stop or who used one-stop
facilities said these services were useful. Of those who found screening
services useful, most said that it increased the number of job seekers
with the skills they needed. One large retail company was able to hire
over 500 new employees as a result of prescreening interviews and
background checks performed by the one-stop. In another case, a mid-sized
manufacturing company said the one-stop's screening service saved the
company time by reducing the applicant traffic in the office. Of those who
found it beneficial to use the one-stop centers' facilities, most said it
provided a convenient location for recruiting. One mid-sized manufacturing
firm told us that the one-stop facilities provided a central location
where the employer could accept applications, conduct testing sessions,
and make photocopies of relevant documents. Another employer told us that
using the one-stop's facilities enabled the company to continue recruiting
employees while the business's building was under construction. Most of
those who found labor market information useful said it helped the firm
set wage rates and comply with prevailing wage requirements.
Although used by few, training services and information about financial
incentives and employee supports were also useful to the employers we
surveyed. Employers that found training services to be useful said it was
because they improved their employee skills.^9 For example, 40 entry-level
employees at a large manufacturing firm learned to read blueprints and
acquired other skills highly valuable to the company through training
arranged by the one-stop. According to the human resources manager, these
employees were better positioned for advancement in their careers as a
result. Of those who said information about financial incentives and
employee supports was useful, most pointed to the fact that it was
appropriate to the needs of their establishment or employees. One small
business employer said that his local one-stop coordinated potential
candidates for tax credits and made his employees aware of programs that
could help the company. He cited these services as one of the reasons his
business would be looking to expand in the area served by this one-stop
center.
^9 Training services can be provided at the one-stop center or through
some other entity, such as a community college.
While few of those we surveyed had used a one-stop's help in downsizing or
averting layoffs, those that did said that they found this service useful
or very useful. Specifically, almost all said the one-stop's assistance
helped them comply with federal laws regarding downsizing and resulted in
more employees finding new employment after downsizing than would have
otherwise occurred. In one case in 2005, one-stop officials met with a
group of about 50 workers laid off by a large manufacturing firm in
Indiana and told the workers about how to access the one-stop's search
assistance and training opportunities. According to the human resource
manager, the one-stop's help spared him from fielding multiple queries
about job search services. In addition, he said the one-stop staff gave
the laid-off employees direction and encouragement toward new employment
opportunities.
Employers Who Used One-Stop Services Generally Reported Positive Experiences in
Terms of Effort, Staff Interaction, Time, and Savings
Many employers who responded to our survey said that the amount of effort
required to work with the one-stops was reasonable. Most of those we
surveyed said it was easy or very easy to use one-stop services. Few
complained about excessive paperwork or other administrative requirements
associated with one-stop services. Some employers we interviewed recalled
doing very little paperwork.
Employers were also generally positive about their interactions with
one-stop staff. Among those who answered our survey question on staff
interaction, about 70 percent rated staff highly on their professionalism.
The employers we interviewed on our site visits said that being familiar
with one-stop staff was valuable to them and added that their one-stop
contact was professional and responsive. Several said they felt very
comfortable asking their one-stop staff member for any assistance.
Employers also said that one-stop services had saved them time and money.
Using one-stop facility and screening services allowed employers to
recruit new workers more quickly and efficiently, thereby saving time.
Many employers noted that one-stop services, which generally are free of
charge, had saved them money. One employer said the one-stop's meeting
rooms, high-speed Internet access, photocopying assistance, and other
services helped him save his company almost $2,000. He contrasted his
experience with that of other company franchises that had paid hotels or
others for such services.
For Services They Did Not Use, Employers Reported Either Not Knowing about Them,
Finding Them Elsewhere, or Providing Them on Their Own
Many of the survey respondents who did not use one-stop services said it
was because they did not know the one-stop offered these services. On
average, about one-quarter of employers who did not use a particular
one-stop service said it was because they did not know it was available.
Employers cited training services and information about financial
incentives and employee supports as the two services they were least aware
of and thus among those used the least.
Some employers looked elsewhere for services that were also available at
one-stop centers. For example, many employers accessed labor market
information from sources other than the one-stops, such as information
available from educational organizations or professional associations.
Also, 35 percent of employers who did not post jobs with the one-stop
reported posting jobs through other outlets, such as through private
sector recruiting firms, newspapers, the Internet, and using word-of-mouth
(other employees). In our discussions with employers, some said they need
to tap all resources available to find qualified employees.
It was also the case that employers did not use some services that involve
activities they generally do on their own. With regard to training, for
example, one employer said that making musical instruments requires
training by a seasoned instrument maker. While about one-third of
employers used screening services, over 70 percent of those who did not
said it was because they do their own screening internally.
One-Stop Service to Employers May be Affected by Limited Skills in Their Labor
Pool, Limited Staffing, and the Lack of Employer-Related Performance Information
At least three factors may affect one-stops' service to employers. The
first of these is the skill set of the labor pool, which some officials
characterized as low or lacking the specialization some employers
requested. Part of the challenge, according to others, is that employers
may perceive the skill level as lower than it actually is. One-stop
officials cited the limited number of staff as a second factor that
affects their service to employers. The fact that Labor collects limited
information on employer engagement in the one-stop system is a third
factor that may also affect one-stops' service to employers. While Labor
has launched initiatives to better meet employers' needs for workers, such
as the High-Growth Job Training Initiative, the one-stops we visited were
not significantly affected by them.
Skills of the Labor Pool May Make It Difficult for One-Stops to Meet Demand for
Skilled Workers
The one-stop officials we interviewed cited the skills of the labor pool
available through the one-stop as one of their top challenges in providing
employers with qualified applicants. Whether the problem is that the labor
pool is low-skilled, lacks the specific skills, or is misperceived by
employers is difficult to determine. Some officials cited the low skill
level or lack of education in their labor pool, while others cited the
lack of specialized skills needed by employers. On average, officials
estimated that about one-third of their labor pool was low-skilled, with
these estimates ranging from 8 percent to 85 percent. A one-stop official
noted that it was difficult to provide employers with applicants that met
employers' minimal requirements for having at least a high school or
general equivalency diploma. Other officials told us they do not have
enough skilled workers to supply the needs of the businesses in their
areas. For example, a one-stop official explained the difficulty in
filling an employer's need for workers experienced in mixing batches of
cosmetics.
When told that employers in our survey used the one-stop to hire mostly
low-skilled workers, some of the one-stop officials we interviewed said
that to some degree employers can misperceive the skills of the one-stop
labor pool. They noted that employers may not see skills as transferable
to their particular needs. For example, a one-stop official told us that
when skilled workers were recently laid off at a tubing manufacturing
company, other local employers viewed them as low-skilled because the
applicability of their skills to other jobs in the labor market was not
readily apparent. Other one-stop officials stated that employers may
characterize the one-stops' labor pool as low-skilled because high-skilled
or professional job seekers do not necessarily tell employers that they
have used the local one-stop center. According to a one-stop official,
high-skilled job seekers are more likely to say that they found the job
posting on the Internet because they want to convey the impression that
they did not need assistance. In addition, one-stop staff suggested that
some employers may perceive the labor pool as low-skilled because of a
lack of applicant screening by the one-stop. One-stops provide screening
services in varying degrees. In cases where the one-stop did not screen,
employers seeking high-skilled workers may be overwhelmed by the number of
low-skilled job seekers applying for open positions.
A Limited Number of One-Stop Staff Are Available to Serve Employers, but
One-Stops We Visited Generally Did Not Leverage Additional Private Sector
Funding to Increase Staff or Resources
According to most of the one-stop officials we interviewed, another
challenge they faced was the lack of staff available to serve employers.
Staff at one-stops must serve both employers and job seekers with the
staff time and funding available to them. While some officials told us
that services to employers and job seekers complement each other, others
said that their staff primarily serve job seekers and serve businesses as
a collateral duty. In fact, half of the one-stop centers we interviewed
had no staff dedicated exclusively to serving employers. One official told
us that in addition to serving job seekers, he went door to door to local
businesses in the area to promote one-stop employer services because he
had no staff dedicated to doing so. The other half of the one-stop centers
we visited dedicated at least one person to serving employers full-time.
The fact that employers expressed satisfaction with one-stop staff would
suggest that at least for them levels of staff weren't an issue.
Nonetheless, all of the one-stop officials we spoke with agreed that if
they were provided with more funding, they would expand services to
employers. Some either said they would use funding to hire additional
staff devoted to employer services or they would increase one-stop service
offerings to employers like training for their incumbent workers.
Although a practice we identified as promising--leveraging private sector
funding--could be used by one-stops to hire more staff, most officials we
interviewed stated that they had not done so.^10 Six of the 10 one-stops
we visited did not receive any funding of this type. The 4 one-stops that
did receive private sector funding charged a fee for services or to use
the facility. Each received less than $10,000 per year, an amount
described by some of these officials as minimal. When asked why they had
not received private sector funding, one-stop officials we interviewed
stated several reasons, including hesitancy to solicit funds in addition
to tax dollars already paid by businesses as well as lack of expertise and
knowledge regarding how to solicit private sector donations.
^10 WIA authorizes local boards that manage one-stops to solicit funds
from employers and/or have one-stops offer services for a fee to
employers. We identified this as a promising practice in the following
report: GAO, Workforce Investment Act: One-Stop Centers Implemented
Strategies to Strengthen Services and Partnerships, but More Research and
Information Sharing Is Needed, [29]GAO-03-725 (Washington. D.C.: June 18,
2003).
The Lack of Employer-Related Performance Information That Labor Collects May
Affect How One-Stops Serve Employers
Labor has limited information about employer engagement in the one-stop
system. Although Labor measures employers' satisfaction, this measure does
not provide information on how employers use the system. Labor officials
told us that they do not rely on this information for any purpose, and as
we previously reported, the information is too general for states and
local areas to use. We recommended, at that time, that Labor require
states to collect and report on employer use of the workforce system.^11
Labor was developing a new data collection and reporting system that it
has since discontinued and replaced with a new system still under
development. Labor officials told us that their latest data collection
system will generate information on employers' use of one-stop services,
and will be implemented in program year 2007. However, this remains to be
seen. Moreover, it is not clear that Labor will use this information to
measure employer engagement.
Some one-stop officials we spoke with acknowledged that there is a need
for performance measures related to employer services. Officials at
several one-stop centers we visited also recognized that performance
information Labor collects focuses on services to job seekers and not
employers. Several one-stop officials stated that some basic measures are
necessary to tie one-stop staff effort to employer outcomes and that if
Labor were to collect such information, doing so might influence how they
serve employers.
Although Labor does not require that one-stops collect performance
information related to employer services, officials at many of the
one-stops we visited, recognizing its importance, collected such
information. Eight out of the 10 one-stops collected some type of
performance data on their services to employers in order to assess how
well they were serving employers in their local area. This included the
number of new employers using the one-stop services, number of hires,
repeat usage rate, self-service versus staff-assisted services, and number
of on-site recruitments. Officials said they use this information to plan
outreach and to assess progress toward achieving performance goals. For
example, a one-stop official said, "We use the data to see who is using us
and who is not and try to figure out the reason," which suggests the value
of this information for getting more employers to use the one-stops.
^11 See [30]GAO-05-259 .
Most of the One-Stop Officials We Interviewed Reported That Labor Initiatives on
Employer Services Had No Impact on Their Capacity to Serve Employers
Labor initiatives intended to increase one-stop capacity to serve
employers may have limited reach, at least until greater dissemination
occurs. Two of the 10 local workforce investment boards we visited
received High Growth Job Training Initiative grants, and none participated
in the National Business Learning Partnership program. According to the
officials whose boards received grants, the funding was helpful because it
increased the resources available to help address the needs of employers.
One-stop centers whose local boards did not receive any program grants
told us that the initiatives, which are intended to disseminate
information in general, have not helped them build their capacity to serve
employers. In those cases where a board did not seek a grant or
participate in the programs, any potential impact may depend on the
efforts of local officials to seek out program information. Labor has
taken steps to disseminate findings gained from the National Business
Learning Partnership by publishing case studies that exemplify various
best practices approaches to serving employers. Officials from Labor also
stated that they educate one-stop officials and others about their
initiatives through a Web site.
Conclusions
WIA promoted greater employer engagement, in part, by calling on the
one-stop center system to help meet employers' workforce needs. While
neither the act nor Labor regulations specify their level or range,
employer services are clearly part of this equation. While there are many
ways that employers might be engaged, our findings raise questions about
the extent to which it is occurring via service to employers. Although
employers we contacted found one-stop services useful, a lack of qualified
applicants, and misperceptions about applicants' skill levels and a lack
of awareness of some services had the potential to negatively affect their
engagement with the system. This is all the more important because they
represent a subset of all employers--those that actually used the
one-stops. The fact that employers hired such a small percentage of their
hires through the one-stop, coupled with the finding from our previous
work that small employers are less likely to be aware of the one-stop
services available to them, could mean that small employers in relation to
large employers are even less engaged in the system.
Beyond this, there is another and greater indication that employers are
not central to the system, in that Labor has not attempted to measure
their engagement. Labor officials acknowledge that they do not use their
single measure related to employers--satisfaction--but also acknowledge
the importance of having information about employers' engagement in the
system. Without such information, it is not possible to understand the
extent to which employer involvement is helpful to job seekers or to
employers, to know what role employers can play in achieving success for
the one-stop delivery system, or to determine what, if anything, should be
done to improve employer engagement. While Labor has said that its new
data collection system will collect information on employer use of
services, it is not clear if Labor will use this information to measure
employer engagement in the one-stop system.
Recommendations for Executive Action
To ensure that Labor has a better understanding of the extent that
employers are engaged in the workforce system, we recommend that the
Secretary of Labor follow through with plans to collect information on
employers' use of one-stop services and develop a way to measure employer
engagement in the workforce investment system as part of the department's
performance reporting system.
Agency Comments
We provided a draft of this report to Labor for review and comment. In its
comments, Labor acknowledged the limited data available on employers' use
of one-stop services and noted its intent to collect additional employer
data through a new performance reporting system beginning July 1, 2007.
While Labor noted that our sample did not allow for generalizations, it
said our report highlighted issues that the Employment and Training
Administration has been engaged in tackling for the past few years. A copy
of Labor's response is in appendix II.
Labor also provided technical comments on the draft report, which we have
incorporated where appropriate.
We will send copies of this report to the Secretary of Labor, appropriate
congressional committees, and other interested parties. In addition, the
report will be available at no charge on GAO's Web site at
http://www.gao.gov.
A list of related GAO products is included at the end of the report. If
you or your staff have any questions about this report, please contact me
at (202) 512-7215. You may also reach me by e-mail at nilsens@gao.gov. Key
contributors to this report are listed in appendix III.
Sigurd R. Nilsen
Director, Education, Workforce, and Income Security Issues
Appendix I: Objectives, Scope, and Methodology
Our objectives were to determine (1) the extent to which employers, both
large and small, hire their employees through one-stops; (2) the extent to
which these employers view one-stop services as useful; and (3) factors
that may affect one-stop service to employers. To answer these questions,
we conducted a Web-based survey of employers, visited one-stop career
centers, and interviewed Labor officials and officials from other
organizations with knowledge of workforce programs. See below for more
detailed information on each of these aspects of our research. We
performed our work from December 2005 through October 2006 in accordance
with generally accepted government auditing standards.
Survey of Employers
In order to obtain a list of employers who had used one-stop services, we
built upon a previous survey effort. This previous survey of employers was
conducted in July through October of 2004. During this previous effort,
1,356 respondents completed surveys. The overall response rate to this
previous survey was 54 percent. On the basis of an analysis of
characteristics of responding and nonresponding employers, we concluded
that the results of the respondents could be considered as being
nationally representative of all employers with regard to issues such as
whether or not they knew about one-stops, knew about the one-stops in
their area, and knew about the services available at one-stops. In this
earlier effort, 466 of the 1,356 business establishments that were
surveyed indicated that they were users of one-stop services.
For this study, a contractor attempted to contact each of these 466
employers and obtain their e-mail addresses for the Web-based survey. Of
the 466 employers contacted, the contractor obtained e-mail addresses from
178. In some cases employers were unwilling to provide their e-mail
address and in other cases the employers were no longer in business. We
sent a Web-based survey to these 178 businesses and later attempted to
contact an additional 25 small businesses. We received completed surveys
from June through September 2006 from a total of 113 businesses in three
size categories: 14 small, 48 medium, and 51 large.
The results of this survey are not nationally representative and cannot be
generalized to the universe of U.S. private sector businesses that have
used one-stops because of the small size of our survey population and
possible response bias. While the 1,356 responding businesses in the
earlier effort were considered representative for the purposes of our
earlier survey, the 466 responding businesses that used one-stops may or
may not have been representative of such businesses nationally. Businesses
that had used the services of one-stops and that had favorable experiences
might have been more familiar and more likely to be willing to take time
and report on their experiences. Conversely, businesses that had
unfavorable experiences might also be more likely to report on their
experiences to make them known. Therefore, the 113 businesses we contacted
in this effort may reflect a group of respondents whose aggregate views
may not accurately reflect all businesses' experiences with one-stops in
the country.
For the small businesses we attempted to survey, we could not reach many
of them because of business closure and employee turnover. We attempted to
survey 42 small businesses that had used one-stop services in the past,
but only received completed surveys from 14. In addition to contacting
these employers by phone to encourage their participation in our survey,
we also mailed letters and e-mailed messages in cases where we obtained
their e-mail addresses. We were able to identify 10 small businesses in
our sample that were out of business, had sold the business to new owners,
or had new employees that do not currently use the one-stop centers.
The 80 employers included in our analysis of hiring patterns are those
whose reported total hires in 2005 were within plus or minus 10 percent of
the sum of their hires through one-stops, the private sector, and other
sources. For some of these employers, the number of workers they reported
hiring at three skill levels did not match the number of workers they
hired from each source. For these employers, we compared results excluding
them with results leaving them in. The results were roughly the same. The
comparisons of hiring patterns for large and medium businesses were
assessed by comparing the median values of the proportion (employees hired
through one stop over total hires) using the nonparametric Wilcoxon Rank
sums test.
In addition to survey nonresponse, the practical difficulties of
conducting any survey may introduce other types of errors, commonly
referred to as nonsampling errors. For example, differences in how a
particular question is interpreted, the sources of information available
to respondents in answering a question, or the types of people who do not
respond can introduce unwanted bias into the survey results. We included
steps in the development of the survey, the collection of data, and the
editing and analysis of data for the purpose of minimizing such
nonsampling error. For example, in cases where an employer gave an answer
other than the choices provided, we reviewed, verified, and then
categorized each answer.
Site Visits
We also visited eight one-stop career centers in four states: California,
North Carolina, Wisconsin, and Wyoming, and by phone interviewed officials
in two one-stop centers in Pennsylvania. We selected Wyoming for a rural
perspective and the 4 other states because they had the most employers
that had used one-stop services in a national survey we conducted in 2004.
In each state we visited two one-stop centers selected to provide a mix of
urban, suburban, and rural areas. At each one-stop center we visited, we
spoke with relevant one-stop center officials and at least one employer
that used the one-stop's services. In preparation for each site visit, we
sent officials in each one-stop center a list of structured questions that
they answered in advance of our meeting with them. We then used these
questions and responses to guide our discussions with and gain further
clarification from one-stop officials during our site visits. In some
cases, officials from the Local Workforce Investment Boards also
participated.
Table 1: One-Stop Centers We Visited
State City Local board One-stop center
California El Centro Workforce Investment Board Imperial County
of Imperial County One-stop
Business and
Employment
Services
California San Diego San Diego Workforce Metro Region
Partnership, Inc Career Center
North Carolina Charlotte Charlotte-Mecklenburg Charlotte
Consortium JobLinks
North Carolina Lincolnton Centralina Workforce Lincoln County
Development Board, Inc. JobLink Career
Center
Pennsylvania Norristown Montgomery County PA CareerLink
Workforce Investment Board Montgomery
County-
Norristown
Pennsylvania Philadelphia Philadelphia Workforce PA CareerLink
Investment Board Philadelphia
North
Wisconsin Green Bay Bay Area Workforce Brown County Job
Development Board, Inc. Center
Wisconsin Walworth County Southeastern Wisconsin Walworth County
Workforce Development Job Center
Board
Wyoming Jackson [Note: Wyoming has one Jackson
state workforce board that Workforce Center
oversees all one-stops]
Wyoming Riverton [Note: Wyoming has one Riverton
state workforce board that Workforce Center
oversees all one-stops]
Source: GAO.
Interviews with Labor Officials and Others
We interviewed Department of Labor officials who are responsible for
overseeing the operation of the one-stop system. In addition, we
interviewed employer groups and workforce organizations to determine
perspectives on how the workforce system serves employers. We interviewed
representatives from the following organizations:
o U.S. Chamber of Commerce's Center for Workforce Preparation,
o National Association of Manufacturers' Center for Workforce
Success,
o Jobs for the Future, and
o National Association of State Workforce Agencies.
Appendix II: Comments from the Department of Labor
Appendix III: Contact and Staff Acknowledgments
GAO Contact
Sigurd Nilsen, (202) 512-7215 or nilsens@gao.gov
Staff Acknowledgments
Patrick di Battista, Assistant Director, and Paul Schearf,
Analyst-in-Charge, managed this assignment. Tina Paek and Rosemary Torres
Lerma made significant contributions throughout the assignment. Walter
Vance provided methodological assistance. Susan Baker, Stefanie Bzdusek,
and Cathy Hurley contributed to the administration and analysis of our
employer survey. Susan Bernstein and Susannah Compton helped develop the
report's message. Jessica Botsford and Richard Burkard provided legal
support.
GAO Related Products
Trade Adjustment Assistance: Most Workers in Five Layoffs Received
Services, but Better Outreach Needed on New Benefits. [31]GAO-06-43 .
Washington, D.C.: January 31, 2006.
Workforce Investment Act: Labor and States Have Taken Actions to Improve
Data Quality, but Additional Steps Are Needed. [32]GAO-06-82 . Washington,
D.C.: November 14, 2005.
Workforce Investment Act: Substantial Funds Are Used for Training, but
Little Is Known Nationally about Training Outcomes. [33]GAO-05-650 .
Washington, D.C.: June 29, 2005.
Workforce Investment Act: Labor Should Consider Alternative Approaches to
Implement New Performance and Reporting Requirements. [34]GAO-05-539 .
Washington, D.C.: May 27, 2005.
Workforce Investment Act: Employers Are Aware of, Using, and Satisfied
with One-Stop Services, but More Data Could Help Labor Better Address
Employers' Needs. [35]GAO-05-259 . Washington, D.C.: February 18, 2005.
Workforce Investment Act: Labor Has Taken Several Actions to Facilitate
Access to One-Stops for Persons with Disabilities, but These Efforts May
Not Be Sufficient. [36]GAO-05-54 . Washington, D.C.: December 14, 2004.
Workforce Investment Act: States and Local Areas Have Developed Strategies
to Assess Performance, but Labor Could Do More to Help. [37]GAO-04-657 .
Washington, D.C.: June 1, 2004.
Workforce Investment Act: Labor Actions Can Help States Improve Quality of
Performance Outcome Data and Delivery of Youth Services. [38]GAO-04-308 .
Washington, D.C.: February 23, 2004.
Workforce Investment Act: One-Stop Centers Implemented Strategies to
Strengthen Services and Partnerships, but More Research and Information
Sharing Is Needed. [39]GAO-03-725 and related testimony [40]GAO-03-884T .
Washington, D.C.: June 18, 2003.
(130536)
GAO's Mission
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting its
constitutional responsibilities and to help improve the performance and
accountability of the federal government for the American people. GAO
examines the use of public funds; evaluates federal programs and policies;
and provides analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony
The fastest and easiest way to obtain copies of GAO documents at no cost
is through GAO's Web site ( www.gao.gov ). Each weekday, GAO posts
newly released reports, testimony, and correspondence on its Web site. To
have GAO e-mail you a list of newly posted products every afternoon, go to
www.gao.gov and select "Subscribe to Updates."
Order by Mail or Phone
The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
copies mailed to a single address are discounted 25 percent. Orders should
be sent to:
U.S. Government Accountability Office 441 G Street NW, Room LM Washington,
D.C. 20548
To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202)
512-6061
To Report Fraud, Waste, and Abuse in Federal Programs
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail:
fraudnet@gao.gov Automated answering system: (800) 424-5454 or (202)
512-7470
Congressional Relations
Gloria Jarmon, Managing Director, JarmonG@gao.gov (202) 512-4400 U.S.
Government Accountability Office, 441 G Street NW, Room 7125 Washington,
D.C. 20548
Public Affairs
Paul Anderson, Managing Director, AndersonP1@gao.gov (202) 512-4800
U.S. Government Accountability Office, 441 G Street NW, Room 7149
Washington, D.C. 20548
www.gao.gov/cgi-bin/getrpt?GAO-07-167 .
To view the full product, including the scope
and methodology, click on the link above.
For more information, contact Sigurd Nilsen at (202) 512-7215 or
nilsens@gao.gov.
Highlights of [48]GAO-07-167 , a report to congressional requesters
December2006
WORKFORCE INVESTMENT ACT
Employers Found One-Stop Centers Useful in Hiring Low-Skilled Workers;
Performance Information Could Help Gauge Employer Involvement
The Workforce Investment Act of 1998 (WIA) required that many federal
workforce employment and training programs for low-income individuals, the
unemployed, and other job seekers provide their services through a
streamlined delivery system. WIA also promoted greater employer engagement
in this delivery system by, among other things, calling for it to help
meet employers' workforce needs with services provided through one-stop
centers. In 2005, we found that about half of employers were aware of
their local one-stop centers. However, questions remained about how
employers use them. In this report, GAO addressed (1) the extent to which
employers, both large and small, hire their employees through one-stops;
(2) the extent to which these employers view one-stop services as useful;
and (3) factors that may affect one-stop service to employers. To answer
these questions we surveyed employers who had used the one-stop system,
visited eight one-stops, and talked to one-stop and Labor officials.
[49]What GAO Recommends
GAO recommends that the Secretary of Labor follow through with plans to
collect information on employers' use of one-stop services and develop a
way to measure employer engagement in the workforce investment system as
part of the department's performance reporting system. Labor noted its
intent to collect such information.
Regardless of size, employers completing our survey hired a small
percentage of their employees through one-stops, and two-thirds of those
they hired were low-skilled. About 80 employers who could provide
estimates reported hiring about 9 percent of their new employees through
the one-stops, roughly 1,300 of their 14,500 hires in 2005. They also
reported that about two-thirds of those hired were low-skilled workers, in
part because they thought the labor available from the one-stop centers
was mostly low-skilled. Employers told us they would hire more job seekers
from the one-stop labor pools if they had the skills for which they were
looking.
Employers primarily used only one of the seven services generally
available through the one-stop, but they generally viewed whatever
services they did use as helpful. Most employers used the centers'
job-posting service. Fewer made use of the one-stops' physical space or
job applicant screening services. Still, when employers did take advantage
of a service, they generally reported that it was useful because it
produced positive results, such as reaching more job applicants than would
have applied otherwise. When employers reported that they did not use a
particular one-stop service, in most cases they either were not aware that
the one-stop provided the service, obtained it elsewhere, or carried
through on their own.
At least three factors may affect one-stops' service to employers. The
first of these is the skill set of the labor pool. One-stop officials said
that their job candidates generally had either low skills or lacked the
specialized skills needed by employers. The second factor cited by
one-stop officials is the limited number of staff available to serve
employers. Staff at one-stops must serve both employers and job seekers
with the staff and funding available to them. The fact that the Department
of Labor collects limited information on employer engagement in the
one-stop system is a third factor that may affect the level of service to
employers. While Labor collects information on employer satisfaction, this
measure does not provide information on how employers use the system.
Labor has said its new data collection system will include such
information, but this remains to be seen.
Employees Hired through One-Stops
References
Visible links
28. http://www.gao.gov/cgi-bin/getrpt?GAO-05-259
29. http://www.gao.gov/cgi-bin/getrpt?GAO-03-725
30. http://www.gao.gov/cgi-bin/getrpt?GAO-05-259
31. http://www.gao.gov/cgi-bin/getrpt?GAO-06-43
32. http://www.gao.gov/cgi-bin/getrpt?GAO-06-82
33. http://www.gao.gov/cgi-bin/getrpt?GAO-05-650
34. http://www.gao.gov/cgi-bin/getrpt?GAO-05-539
35. http://www.gao.gov/cgi-bin/getrpt?GAO-05-259
36. http://www.gao.gov/cgi-bin/getrpt?GAO-05-54
37. http://www.gao.gov/cgi-bin/getrpt?GAO-04-657
38. http://www.gao.gov/cgi-bin/getrpt?GAO-04-308
39. http://www.gao.gov/cgi-bin/getrpt?GAO-03-725
40. http://www.gao.gov/cgi-bin/getrpt?GAO-03-884T
48. http://www.gao.gov/cgi-bin/getrpt?GAO-07-167
*** End of document. ***