    Employment and Training: Most One-Stop Career Centers Are Taking
    Multiple Actions to Link Employers and Older Workers (21-APR-08,
    GAO-08-548).

    The share of older persons in the U.S. population age 55 and
    older is projected to increase to 30 percent by 2025 and continue
    to grow through 2050. At the same time, more older persons are
    expected to continue working than in the past and, in doing so,
    may need employment and training services as they make
    transitions to different jobs and work arrangements. Several
    factors will contribute to this phenomenon. The number of older
    Americans and their proportion of the total population are
    increasing and are expected to continue to increase. Fewer of
    these older Americans are expected to have the traditional
    retirements of previous generations and many will continue
    working for financial or other reasons. At the same time, labor
    force growth is expected to slow and employers will be faced with
    a relatively smaller and younger available workforce. As a
    result, some businesses will need to retain existing older
    workers or attract additional older workers to meet their
    workforce needs. The Department of Labor (Labor) has identified
    one-stop career centers (one-stops) as a means to link older
    workers with employers through employment and training services.
    To address the role of one-stops in serving older workers, we
    examined: (1) Labor's actions to help one-stops link employers
    and older workers and (2) one-stops' actions to help employers
    hire and retain older workers.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-08-548
        ACCNO:   A81800
      TITLE:     Employment and Training: Most One-Stop Career Centers Are
    Taking Multiple Actions to Link Employers and Older Workers
         DATE:   04/21/2008
      SUBJECT:   Career planning
    	     Employee development
    	     Employee retention
    	     Employee training
    	     Employees
    	     Employment
    	     Employment agencies
    	     Employment assistance programs
    	     Human capital management
    	     Human capital planning
    	     Labor force
    	     Labor shortages
    	     Older workers
    	     Performance appraisal
    	     Performance measures
    	     Program evaluation
    	     Reemployment
    	     Retirement
    	     Skilled labor
    	     Surveys
    	     Training utilization
    	     ETA Senior Community Service Employment
    	     Program

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    GAO-08-548

    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. Because this work
    may contain copyrighted images or other material, permission from the
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    material separately.

    Report to the Committee on Health, Education, Labor, and Pensions, U.S.
    Senate:

    United States Government Accountability Office:

    GAO:

    April 2008:

    Employment And Training:

    Most One-Stop Career Centers Are Taking Multiple Actions to Link
    Employers and Older Workers:

    GAO-08-548:

    Contents:

    Letter:

    Appendix I: Briefing Slides:

    Appendix II: Comments from the Department of Labor:

    Abbreviations:

    SCSEP: Senior Community Service Employment Program:

    WIA: Workforce Investment Act:

    WIB: Workforce Investment Board:

    United States Government Accountability Office:

    Washington, DC 20548:

    April 21, 2008:

    The Honorable Edward M. Kennedy:
    Chairman:
    The Honorable Michael B. Enzi:
    Ranking Member:
    Committee on Health, Education, Labor, and Pensions:
    United States Senate:

    The Honorable Patty Murray:
    Chair:
    Subcommittee on Employment and Workplace Safety:
    Committee on Health, Education, Labor, and Pensions:
    United States Senate:

    The share of older persons in the U.S. population age 55 and older is
    projected to increase to 30 percent by 2025 and continue to grow
    through 2050. At the same time, more older persons are expected to
    continue working than in the past and, in doing so, may need employment
    and training services as they make transitions to different jobs and
    work arrangements. Several factors will contribute to this phenomenon.
    The number of older Americans and their proportion of the total
    population are increasing and are expected to continue to increase.
    Fewer of these older Americans are expected to have the traditional
    retirements of previous generations and many will continue working for
    financial or other reasons. At the same time, labor force growth is
    expected to slow and employers will be faced with a relatively smaller
    and younger available workforce. As a result, some businesses will need
    to retain existing older workers or attract additional older workers to
    meet their workforce needs. The Department of Labor (Labor) has
    identified one-stop career centers (one-stops) as a means to link older
    workers with employers through employment and training services. To
    address the role of one-stops in serving older workers, we examined:
    (1) Labor's actions to help one-stops link employers and older workers
    and (2) one-stops' actions to help employers hire and retain older
    workers.

    On January 22, 2008, we briefed interested staff on the results of our
    analysis. This report formally conveys information provided during that
    briefing. In summary, we reported the following findings:

    * Labor has proposed action steps that one-stops may take to link
    employers and older workers and has ongoing efforts to promote
    employment for older workers to a wider audience. While Labor knows
    little about the results of these efforts, planned evaluations may
    provide some information on the impact of WIA services on older
    workers.

    * Based on our survey results, we estimate that most one-stops took
    multiple actions to link employers and older workers. One-stop
    officials identified some actions as most effective, such as training
    staff to assist older workers, and often used multifaceted approaches.
    Several factors--for example, the local economy and how workers' skills
    match with employers needs--might affect what actions one-stops take to
    serve older workers. One factor, the performance measure tracking
    participants' earnings, may create disincentives for serving older
    workers who are more likely to work part-time, which provides lower
    wages. We have previously recommended that Labor assess the potential

    for such disincentives, and we continue to believe that doing so would
    be worthwhile.

    To examine these issues, we conducted Web-based surveys of one-stops
    and their local Workforce Investment Boards (WIB), which allowed us to
    make estimates to the entire population of one-stops.[Footnote 1] We
    also interviewed one-stop and WIB officials, Labor officials, and
    persons from other organizations knowledgeable about older workers and
    workforce programs. When using the term "older workers," we are
    generally referring to persons age 55 and older who were employed or
    seeking employment. In our review we considered how all older workers
    are served, but in reporting survey results we did not include the
    Senior Community Service Employment Program (SCSEP) when we could
    distinguish it from other programs. Although SCSEP's efforts are
    directed exclusively toward older persons, because of stringent income
    requirements and other requirements, the program serves a very small
    percentage of older workers.[Footnote 2] We conducted this performance
    audit from May 2007 to January 2008, in accordance with generally
    accepted government auditing standards. Those standards require that we
    plan and perform the audit to obtain sufficient, appropriate evidence
    to provide a reasonable basis for our findings and conclusions based on
    our audit objectives. We believe that the evidence obtained provides a
    reasonable basis for our findings and conclusions based on our audit
    objectives.

    We provided a draft of this report to Labor for review and comment.
    Labor indicated that the report was positive about actions one-stops
    are taking to serve and train older workers and Labor stated it found
    the information we collected to be helpful. Regarding the average
    earnings performance measure, Labor noted that its initial analysis
    shows that older workers have higher earnings than other workers. We
    clarified our statements in the report regarding older workers and
    average earnings to indicate that older workers are more likely to work
    part-time and that wages from part-time work are lower than wages from
    full-time work. Labor indicated that it intends to continue to explore
    issues surrounding performance. Labor's entire comments are reproduced
    in appendix II.

    We are sending copies of this report to relevant congressional
    committees and other interested parties and will make copies available
    to others upon request. In addition, this report will be available at
    no charge on GAO's Web site at [hyperlink, http://www.gao.gov].

    If you or your staff have any questions about this report, please
    contact me at (202) 512-7215 or ScottG@gao.gov. Contact points for our
    Offices of Congressional Relations and Public Affairs may be found on
    the last page of this report. Patrick di Battista (Assistant Director),
    Daniel S. Meyer (Analyst-in-Charge), Jessica A. Botsford, Susannah L.
    Compton, Catherine V. Croake, Sharon L. Hermes, Gloria
    Hernandezsaunders, Kevin L. Jackson, Stuart M. Kaufman, Kevin M.
    Kumanga, Lisa B. Mirel, and Rachael C. Valliere also made significant
    contributions to this report.

    Signed by:

    George A. Scott:
    Director, Education, Workforce, and Income Security Issues:

    [End of section]

    Appendix I: Briefing Slides:

    Employment and Training: Most One-Stop Career Centers Are Taking
    Multiple Actions to Link Employers and Older Workers:

    Briefing to Congressional Staff:

    January 2008:

    Overview:

    Introduction:

    Research Questions:
    Scope and Methodology:
    Summary of Key Findings:
    Background:
    Findings:
    Concluding Observations:

    Introduction:

    The share of older persons in the U.S. population is projected to
    increase to 19.6 percent by 2030 and continue to grow through 2050. At
    the same time, more older Americans are expected to continue working
    and many will likely make transitions to different jobs and work
    arrangements, increasing their need for employment and training
    services.

    * Older Americans may need to continue to work beyond when they
    otherwise might have retired, in order to ensure a more secure
    financial future.

    * Employers, facing slower growth in the available workforce, may need
    to retain or attract older workers. Older workers are generally defined
    as those persons age 55 and older who are employed or seeking
    employment.

    * The U.S. Department of Labor (Labor) has identified one-stop career
    centers, required by the Workforce Investment Act (WIA), as a means to
    link older workers with employers through employment and training
    services.

    Research Objectives:

    To address the role of one-stops in serving older workers, we examined:

    * Labor�s actions to help one-stops link employers and older workers;
    and:

    * one-stops� actions to help employers hire and retain older workers.

    Scope and Methodology:

    We interviewed Labor officials and reviewed Labor documents related to
    one-stops and older workers.

    We conducted two Web-based surveys using a stratified random
    probability sample of 334 one-stops of more than 1,600 one-stops and
    311 of their corresponding local Workforce Investment Boards
    (WIBs).[Footnote 3] We received survey responses for 245 (73 percent)
    of the one-stop centers, and 256 (82 percent) of the WIBs. All
    percentage estimates presented from the surveys have margins of error
    within plus or minus 8 percentage points, unless otherwise noted.

    We used Census data to estimate the number of older workers residing in
    the areas served by the one-stops.

    We interviewed officials from 11 one-stops. We selected these one-stops
    based on our review of survey responses regarding the most effective
    practice they used in serving older workers. These one-stops were
    located in the following states: California, Colorado, Illinois,
    Michigan, Minnesota, New York, South Carolina, Tennessee, Texas, and
    West Virginia.

    Summary of Key Findings:

    Labor has proposed action steps that one-stops may take to link
    employers and older workers and has ongoing efforts to promote
    employment for older workers to a wider audience. While Labor knows
    little about the results of these efforts, planned evaluations may
    provide some information about the impact of WIA services on older
    workers.

    Based on our survey results, we estimate that most one-stops took
    multiple actions to link employers and older workers. One-stop
    officials identified some actions as most effective, such as training
    staff to assist older workers, and often used multifaceted approaches.
    Several factors, for example, the local economy, might affect what
    actions one-stops take to serve older workers. One factor, performance
    measures, may create disincentives for serving older workers.

    Background:

    One-Stops and One-Stop Programs:

    WIA requires states and localities to provide the employment and
    training services of 16 federally funded programs through the one-stop
    career center system.

    Table: One Stop Programs:

    Descriptions of selected programs and listing of other programs.

    Program: Senior Community Service Employment Program (SCSEP);
    Description: Eligibility is restricted to persons age 55 or older who
    are low-income and have poor employment prospects; provides them
    subsidized, part-time, community service work-based training.

    Program: WIA Adult Program;
    Description: All persons aged 18 or older are eligible to receive
    services; priority for intensive services and training given to
    recipients of public assistance or low-income individuals when funds
    are limited.

    Program: WIA Dislocated Worker Program;
    Description: Serves individuals who have been laid off or received
    notification of layoff, and are unlikely to return to their previous
    employment.

    Program: Wagner-Peyser;
    Description: Provides services to help job seekers find employment and
    help businesses find qualified workers.

    Program: Trade Adjustment Assistance;
    Description: Assists workers in the manufacturing sector who lose their
    jobs as a result of trade.

    Program: Other One-Stop Programs;
    Description: Veterans� Employment and Training programs, Unemployment
    Insurance, Job Corps, Employment and Training for Migrant and Seasonal
    Farm Workers, Employment and Training for Native Americans, Vocational
    Rehabilitation Program, Adult Education and Literacy, Vocational
    Education (Perkins Act), Community Services Block Grant, WIA Youth, HUD-
    administered employment and training.

    [End of table]

    Proportion of Older Persons Throughout the United States:

    Figure: Proportion of Older Perdons of All Persons Near Their Closest
    One-Stop:

    This figure is a map of the United States with shading showing the
    proportion of older persons near their closest one-stop. The colors
    represent 17.7 percent or less, 17.8 to 19 percent, 19.1 to 20.5
    percent, and more than 20.5 percent.

    Source: 2000 Census data. The analysis uses the category 50 to 69 years
    of age for older persons.

    [End of figure]

    Finding One: Actions Labor Has Taken:

    Labor Has Advised One-Stops on Linking Employers and Older Workers, but
    Knows Little About the Results of Its Efforts:

    Overview:

    Labor proposed action steps for one-stops to improve services for older
    workers in addition to its other efforts to promote employment for this
    population.

    However, Labor knows little about whether one-stops have implemented
    its proposed action steps or the results of its efforts.

    Labor Has Proposed Action Steps for One-Stops to Improve Services for
    Older Workers:

    Protocol for Serving Older Workers (January 2005):

    Although WIA does not require one-stops to target older workers or
    provide specific services, Labor issued the Protocol to provide a set
    of action steps that one-stops may take to connect employers and older
    workers. For example, Labor encouraged one-stops to:

    * Work with employers to refer older workers to appropriate job
    openings;

    * Educate businesses about alternative work arrangements that may
    appeal to older workers;

    * Provide personalized post-placement services to ensure older workers
    retain and advance in their jobs.

    Labor Also Has Broader Efforts to Promote Employment for Older Workers:

    Interagency Taskforce on the Aging of the American Workforce:

    Labor and other relevant federal agencies published recommendations in
    February 2008, some related to one-stop services, to address key issues
    facing older workers. For example:

    * Coordinate federal agencies� research on older workers, including
    exploring the most effective strategies for serving this population,

    * Create a tool to enable one-stop staff to determine the number and
    characteristics of older workers in their area, and:

    * Raise public awareness of one-stops as a place for older jobseekers
    and employers to connect.

    Labor officials highlighted other efforts relevant to older workers:

    * Two webinars since 2005, such as one featuring community college
    programs for older workers;

    * Conference sessions, including one in 2007 profiling a senior-focused
    one-stop.

    * Annual National Employ Older Workers Week, including activities like
    award ceremonies and job fairs.

    * Business Relations Group, which has sponsored a forum exploring
    challenges to and solutions for attracting and retaining older workers

    While these efforts may reach a wider audience, Labor�s efforts
    primarily focus on a program targeted to low-income older workers:

    * The SCSEP is restricted to low-income older adults and places
    participants in community service positions where the federal
    government subsidizes their salary through grants to states and
    national organizations.[Footnote 4]

    * Labor has noted the program�s limited capacity for serving older
    workers. In 2006, SCSEP had 92,000 participants�less than 1 percent of
    the 9.4 million people in the U.S. 55 and older meeting income
    requirements.[Footnotes 5]

    Labor Knows Little About How Its Actions Have Influenced Services to
    Older Workers:

    Labor does not know how one-stops are using the Protocol:

    * Labor officials told us they have not sought any feedback on the
    Protocol from states or local areas, because they focus their oversight
    efforts on states� compliance with laws and regulations.

    None of the one-stops we interviewed reported using the Protocol:

    * Labor did not require one-stops to take any actions as a result of
    the Protocol and none of the one-stops we interviewed reported using
    it.

    * Just 5 of the 11 one-stop officials we interviewed were familiar or
    vaguely familiar with it.

    Planned WIA Evaluations May Provide Some Information on Impact of
    Services on Older Workers:

    Labor recently began a short-term evaluation of the impact of receiving
    certain WIA services on employment, earnings, and job
    retention.[Footnote 6]

    Labor is also planning a random assignment evaluation examining the
    cost effectiveness of WIA programs and their impact on participants�
    post-program employment and earnings.[Footnote 7] Labor estimates the
    study will take 7 years to complete.

    Both evaluations will look at older workers as a subgroup of WIA
    participants.[Footnote 8]

    Finding Two: Actions One-Stops Have Taken:

    Most One-Stops Took Multiple Actions to Link Older Workers and
    Employers:

    Overview:

    Most one-stops took multiple actions outside of SCSEP to link older
    workers and employers.

    Several factors may independently affect these actions, including
    Labor�s performance measures, which may serve as a disincentive to
    serving older workers.

    Based on our survey results of one-stops� actions we estimate* that:

    71 percent of one-stops took more than one action to link older workers
    and employers outside of SCSEP.

    The most prevalent actions one-stops took outside of SCSEP can be
    categorized as follows:

    Figure: Percentage of one-stops takin specific actions:

    This figure is a vertical bar graph showing percentage of one-stops
    taking specific actions.

    Preparing older workers;
    Provided job search assistance: 52.

    Preparing older workers;
    Assisted in resume and interview skills: 52.

    Preparing older workers;
    Provided self-paces training courses: 46.

    Preparing older workers;
    Provided targeted counseling: 40.

    Marketing to older workers and businesses;
    Marketed to organizations representing older workers: 35.

    Marketing to older workers and businesses;
    Marketed to specific employers: 35.

    Training one-stop staff;
    Trained one-stop staff on serving older workers: 44.

    [See PDF for image]

    Source: GAO analysis of survey results.

    * All estimates have a margin of error with =/- 8 percentage points.

    [End of figure]

    Based on our survey results, we estimate* that the percentage of one-
    stops that took other actions outside of SCSEP to specifically link
    older workers and employers are as follows:

    Figure: Percentage of one-stops taking specific actions:

    This figure is a vertical bar graph showing percentage of one-stops
    taking specific actions.

    Provided skills training for groups of older workers: 28.

    Coordinated with local community college to provide training: 28.

    Educated employers on offering flexible work arrangements: 27.

    Conducted mass marketing directly to older workers: 22.

    Conducted mass marketing to employers: 22.

    Held job fair for older workers: 16.

    Provided on-site recruiting to individual employees: 15.

    Source: GAO analysis of survey results.

    * All estimates have a margin of error within +/- 8 percentage points.

    [End of figure]

    Most One-Stops Took Actions to Help Employers Retain Older Workers:

    Based on survey results of one-stops� actions we estimate* that:

    * 60 percent of one-stops provided employers with information/education
    about ways to retain older workers, which could include offering
    flexible and reduced work schedules.

    * All estimates have a margin of error within +/- 8 percentage points.

    One-Stop Officials Identified Some Actions as Most Effective, and Often
    Used Multi-faceted Approaches:

    Based on our survey results, the actions outside of SCSEP that were
    identified as most effective by largest number of one-stops included:

    * resume writing,

    * interviewing skills,

    * job searches, as well as:

    * training of one-stop staff on how to assist workers.[Footnote 9]

    One-stop officials we interviewed noted that while the first three
    services were available to all job seekers, these services were
    particularly helpful to some older workers who, by virtue of their long
    work histories with few employers, may have less experience in these
    areas.

    One-Stop Officials Described Multi-faceted Approaches to Linking Older
    Workers and Employers:

    Example 1: The one-stop provided older workers laid off from a food
    processing plant with language instruction, construction and
    maintenance skills, and basic skills courses. The One-Stop provided
    assistance on how to complete a job application and how to interview,
    which many of the workers had never done before. Through job search
    assistance, the one-stop placed some of the workers in new jobs and
    assisted others in self-employment.

    Example 2: The one-stop provided weekly classes on resume writing and
    interviewing skills, noting some older workers� lack of experience in
    this area. The one-stop also encouraged older workers to take computer
    classes. Additionally, the one-stop used an assessment profile to match
    job applicants with available positions.

    Example 3: The one-stop provided older workers with one- on-one
    counseling and career assessment. In addition, the one-stop held a
    special workshop once a month specifically for older workers. The
    workshop covered how to use the internet, e-mail, and how to look for
    jobs.

    Example 4: The one-stop held an annual job fair specifically for older
    workers. The one-stop registered job fair participants and followed up
    with them. A portion of the workforce center space, including computers
    and other resources, is set aside specifically for older workers.

    Several Factors Might Independently Affect What Actions One-Stops Take:
    Employment Status and Full-or Part-time Work Preference:

    Based on the results of our survey, we estimate that one-stops were
    about equally split between whether most of the older workers they
    served had been laid off or were returning to work after having been
    out of the workforce. This could affect actions one-stops take, such as
    in marketing their services to older workers and employers and the
    counseling services they provide to older workers.

    Table:

    Estimated percentage of one-stops: 46;
    Most of the older workers they serviced were: Laid off and looking for
    full-time work (displaced workers).

    Estimated percentage of one-stops: 47;
    Most of the older workers they serviced were: Returning to work and
    looking for full-time or part-time work.

    Estimated percentage of one-stops: 8;
    Most of the older workers they serviced were: Seeking to go from full-
    time to part-time employment.

    * All estimates have a margin of error within +/- 8 percentage points.

    Based on our survey results we estimate that 99 percent of one-stops
    post information on part-time or seasonal jobs through one or more
    programs.

    [End of table]

    Independent Factors: Workers� Skills and How They Match With Employers�
    Needs:

    Based on our survey we estimate:

    Older persons served at one-stops have a variety of skill levels. For
    example, the percentage of older workers who were primarily low-skilled
    and served through the WIA adult program was higher than the percentage
    of those workers served through the more restrictive WIA dislocated
    worker program.

    Older persons� skills may match with employers� needs differently. The
    percentage of older workers whose skills were minimally well-matched
    was higher for the WIA adult program than for the WIA dislocated worker
    program.

    Some one-stop officials we interviewed told us that when there are
    mismatches between worker skills and employer needs, they emphasize
    improving workers', skills or outreach to employers that have needs
    that match the workers' current skills.

    Independent Factors: Proportion of Older Persons Did not Affect
    Outreach to Employers:

    The proportion of older workers located in one-stops� geographic areas
    did not affect whether the one-stops were more or less likely to reach
    out to employers, according to our review of our survey data and Census
    data.[Footnote 10]

    Independent Factors: Economic Conditions:

    Some one-stop officials said that local economies present different
    employment opportunities and challenges for serving older workers that
    might affect actions they take.

    Low unemployment, growth in retail, service, and other business: One-
    stop officials in these areas described high levels of employer
    interest in hiring older workers and found direct contacts with
    employers and job fairs helpful. The officials also described a variety
    of flexible and part-time employment opportunities for older workers.

    High unemployment, declines in major industries, such as automotive and
    steel industries: One-stop officials identified the need to provide
    older workers with training and they noted difficulty in finding these
    workers jobs that provide similar wages to their former jobs.

    Independent Factors: Performance Measures

    WIA earnings measure may discourage some one-stops from serving older
    workers:

    * Serving older workers�who are more likely to work part-time and have
    lower wages�could lower performance on the measure tracking
    participants� average earnings.

    * Half of the one-stops we interviewed said performance measures
    created a disincentive to serve older workers, but only a few reported
    the measures actually influenced how they served older workers.

    * We have recommended Labor examine this issue�and Labor included it as
    an action step in its Protocol�but little action has been taken to
    date.[Footnote 11]

    Concluding Observations:

    We have previously recommended that Labor assess the impact of WIA
    programs. Labor officials told us that they have initiated this
    process, and it will be important that they follow through in a timely
    manner. The data Labor plans to collect on older workers may provide
    insights into how older workers are faring and ways the workforce
    system can better serve them.

    While one-stops are actively engaging older workers and employers, the
    average earnings performance measure could still be discouraging some
    one-stops from investing significant staff time and resources into
    serving older workers whose training and employment needs, such as the
    desire to work part-time, may not be well-matched with this performance
    measure. We have previously recommended that Labor assess the potential
    for such disincentives, and we continue to believe that doing so would
    be worthwhile.

    Related GAO Products:

    Older Workers: Some Best Practices and Strategies for Engaging and
    Retaining Older Workers. GAO-07-433T. Washington, D.C.: February, 28,
    2007.

    Highlights of a GAO Forum: Engaging and Retaining Older Workers. GAO-07-
    438SP. Washington, D.C.: February 28, 2007

    Older Workers: Labor Can Help Employers and Employees Plan Better for
    the Future. GAO-06-80. Washington, D.C.: December 5, 2005.

    Older Workers: Employment Assistance Focuses on Subsidized Jobs and Job
    Search, but Revised Performance Measures Could Improve Access to Other
    Services. GAO-03-350. Washington, D.C.: January 24, 2003.

    Older Workers: Demographic Trends Pose Challenges for Employers and
    Workers. GAO-02-85. Washington, D.C.: November 16, 2001

    [End of section]

    Appendix II: Comments from the Department of Labor:

    U.S. Department of Labor:
    Employment and Training Administration:
    200 Constitution Avenue, N.W.:
    Washington. D.C. 20210:

    April 7, 2008:

    Mr. George A. Scott:
    Director:
    Education, Workforce and Income Security Issues:
    U.S. Government Accountability Office:
    441 G Street, NW:
    Washington, D.C. 20548:

    Dear Mr. Scott:

    This letter is the Department of Labor's response to the Government
    Accountability Office (GAO) Draft Report No. 08-548 entitled, "Most One-
    Stop Career Centers are Taking Multiple Actions to Link Employers and
    Older Workers." We appreciate the opportunity to comment on the draft.

    In general, the draft report is quite positive about the actions One-
    Stop Career Centers are taking to serve and train older workers. The
    information GAO has collected on the activities for older workers in a
    number of One-Stops is also very helpful. The Employment and Training
    Administration (ETA) has attempted to take the lead in looking at the
    broader impacts of the aging workforce. This is evidenced by ETA's
    leadership of the Taskforce on the Aging of the American Workforce. As
    noted in the GAO report, the Taskforce released its report and
    recommendations in February 2008. Subsequently, the Taskforce held a
    meeting on implementing strategies identified in the report. ETA and
    the Taskforce will continue to pursue strategies that support full
    engagement of older workers in the workforce.

    With reference to planned evaluations mentioned in the report, ETA has
    begun the Workforce Investment Act (WIA) Quick Net Impact evaluation,
    which is examining the impacts of WIA Adult and Dislocated Worker
    programs. Within these programs, this quasi-experimental evaluation
    will examine net impacts by subgroups. At a minimum, subgroups will
    include age groups (including those 50 and over), race/ethnicity,
    gender and veteran status. We anticipate the results from this
    evaluation by December 2008. In addition, we plan to begin the WIA Gold
    Standard Evaluation, which will utilize random assignment methodology
    to provide net-impacts on employment, retention and earnings, and
    benefit-cost analyses of WIA overall.

    ETA is aware of the perception that the Federal performance measures
    can create a disincentive to serving "special" or "hard-to-serve"
    populations. The average earnings measure was specifically cited as
    creating a disincentive to serving older workers. GAO notes that older
    workers are more likely to work part time and have lower wages, but ETA
    has not found that older individuals participating in WIA have lower
    earning levels. Initial analysis of the outcomes for individuals who
    completed participation in the WIA Adult and Dislocated Worker programs
    during the two most recent Program Years showed that the average
    earnings for those 55 years and older were actually higher than those
    workers under 55 years old.

    The performance negotiations process that already exists can help
    minimize any disincentive to serving older workers, if used properly
    and translated to the negotiations process states engage in with their
    local areas. The most recent guidance on performance negotiations
    issued by ETA to the workforce investment system, Training and
    Employment Guidance Letter (TEGL) 19-06, Negotiating Performance Goals
    for the Workforce Investment Act Title 1B Programs and Wagner-Peyser
    Act Program for Program Years 2007 and 2008, explicitly states, "[w]hen
    negotiating goals for the Adult program, states proposing new efforts
    to increase access to services for special populations that may face
    significant barriers (such as older workers, individuals with
    disabilities, migrant or seasonal farmworkers, Indian and Native
    American, or Temporary Assistance for Needy Families (TANF)
    recipients), should provide data to show how WIA Adult, WIA Dislocated
    Worker and Wagner-Peyser Act outcomes will be impacted." This guidance,
    along with Attachment VII of the TEGL, which shows the historical
    impact of specific customer characteristics on outcomes, should enable
    the states to negotiate performance levels and expectations consistent
    with the demographics and population they plan on serving, including an
    increasing percentage of "older worker" clientele.

    In addition, ETA intends to continue to explore the issues surrounding
    performance. To that end, a cross-functional performance team has
    recently been convened that will be examining how the performance
    accountability system can be made flexible enough to avoid a
    disincentive to strategic initiatives, such as expanding access to
    untapped labor pools, as well as appropriate methodologies to set
    performance targets.

    Finally, the GAO may wish to consider adding the Alternative Trade
    Adjustment Assistance program to the table of One-Stop programs on page
    11 of the report. The program allows older workers, for whom retraining
    may not be appropriate, to accept reemployment at a lower wage and
    receive a wage subsidy.

    The Department of Labor looks forward to working with the public
    workforce investment system to promote opportunities for participation
    of older workers in the labor force. In addition, enhanced training
    opportunities provided through the Senior Community Service Employment
    Program will increase the talent pool of older workers thus expanding
    linkages between employers and older workers.

    Sincerely,

    Signed by:

    Douglas F. Small:
    Deputy Assistant Secretary:

    [End of section]

    Footnotes:

    [1] We conducted a stratified random probability sample of 334
    comprehensive one-stops of 1,684 one-stops, and 311 of their
    corresponding WIBs. We received 245 (73 percent) one-stop survey
    responses and 256 (82 percent) corresponding WIB survey responses.

    [2] For further information on SCSEP, see the testimony: GAO, Senior
    Community Service Employment Program: Labor Has Made Progress
    Implementing Older Americans Act Amendments of 2000, but Challenges
    Remain, GAO-06-549T (Washington, D.C.: Apr. 6, 2006).

    [3] Some local WIBs oversee multiple one-stops.

    [4] Participants must be 55 or older and have a family income of no
    more than 125 percent of the federal poverty level. See GAO-03-350 for
    more information on the Senior Community Service Employment Program.

    [5] About 14 percent of Americans 55 and older (or 9.5 million) were
    living below 125 percent of the poverty level in 2006. U.S. Census
    Bureau, Current Population Survey, Annual Social and Economic
    Supplement, 2007.

    [6] The evaluation will assess the impact of core and intensive
    services on participants� earnings, employment, and job retention.

    [7] WIA Adult, Dislocated Workers and Youth Programs.

    [8] According to Labor, the random assignment impact evaluation will
    include participants 55 and older and the short-term evaluation will
    include workers 50 and older, among other age groups.

    [9] The survey asked the respondent to identify the one-stop�s three
    most effective actions.

    [10] The Census data used excludes the Virgin Islands.

    [11] To reduce the incentive to serve only those who will help meet
    performance levels, we recommended in 2004 that Labor systematically
    adjust expected performance levels to account for different populations
    and local economic conditions, while still allowing states to negotiate
    their own goals with Labor. See GAO, Workforce Investment Act: States
    and Local Areas Have Developed Strategies to Assess Performance, but
    Labor Could Do More to Help, GAO-04-657, (Washington, D.C.: June 1,
    2004).

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