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

   

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protection in the United States. It may be reproduced and distributed 
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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 [email protected]. 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: 

* Laborï¿½s actions to help one-stops link employers and older workers; 
and: 

* one-stopsï¿½ 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: Veteransï¿½ 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 agenciesï¿½ 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, Laborï¿½s 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 programï¿½s limited capacity for serving older 
workers. In 2006, SCSEP had 92,000 participantsï¿½less 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 statesï¿½ 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 participantsï¿½ 
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 
Laborï¿½s performance measures, which may serve as a disincentive to 
serving older workers. 

Based on our survey results of one-stopsï¿½ 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-stopsï¿½ 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 workersï¿½ 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: Workersï¿½ Skills and How They Match With Employersï¿½ 
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 personsï¿½ skills may match with employersï¿½ 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-stopsï¿½ 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 workersï¿½who are more likely to work part-time and have 
lower wagesï¿½could lower performance on the measure tracking 
participantsï¿½ 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 issueï¿½and Labor included it as 
an action step in its Protocolï¿½but 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 participantsï¿½ 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-stopï¿½s 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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