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In 1998 Congress passed the Workforce Investment Act (WIA), which represented the first major reform of the nation’s workforce investment system in over 15 years. WIA was designed to replace the patchwork federal system that developed over the last 60 years with a locally designed and driven system to improve the quality of the workforce, enhance the productivity and competitiveness of the nation and reduce welfare dependency. It also increased the opportunity for partnerships with faith-based and community organizations and their leaders.
WIA became fully effective on July 1, 2000. It passed by a wide bipartisan majority in part because it was designed to permit communities and states to build a workforce investment system that respects individual choices, reflects local conditions, and results in increased employment, retention, and earnings of participants, and increases occupational skills attained by participants.
WIA redesigned the nation’s workforce investment system to:
- Streamline multiple employment and training programs into an integrated One-Stop Career Center system, simplifying access to services for job seekers and employers.
- Empower individuals to get the services and skills they need to improve their employment opportunities through qualified training programs of their choosing.
- Increase accountability of states, localities and training providers for their performance based on job placement rates, earnings, retention in employment, skill gains, and credentials earned.
- Involve local elected officials and the private sector in business-led boards for the local areas focusing on strategic planning, policy development and local oversight.
- Allow state and local flexibility to implement innovative and comprehensive workforce investment systems to meet the needs of their communities.
- Improve youth programs by creating Youth Councils that are linked more closely to local labor market needs and the community.
New roles and flexibility
Partnerships at all levels of government — local, state and federal — and across the system are the hallmark of the new workforce investment system. All levels are required to coordinate and collaborate with agencies and entities that have not been a part of the traditional workforce development system. Accountability and responsibility for outcomes at all levels of the system now exists, with each level having unique and integral roles and responsibilities.
Local responsibilities
In the new system, the local level remains key for operational and administrative decisions. It is where customers access services and where the design for the new One-Stop Career Center system and the consumer-driven training system is implemented. Local Workforce Investment Boards have important roles in the new system.
The chief local elected officials have a central role in the administration of workforce investment activities. Specifically, the chief local elected official does the following:
- Appoints the members of the local board that establishes workforce investment policies in the local area;
- Develops, in collaboration with the local board, the local workforce investment plan, which specifies the types of services that are provided;
- Serves as the grant recipient for job training funds provided under the Act, and may designate a sub-recipient or fiscal agent;
- Works with the local board to:
- Conduct oversight of the One-Stop Career Center in the local area;
- Designate and/or certify One-Stop operators;
- Identify optional One-Stop partners from participating programs; and
- Works with the local board to negotiate with the governor the performance levels that apply to local areas and that could result in incentive funds or sanctions.
Additionally, representatives of chief elected officials are members of the state board that develops the state plan and carries out other statewide activities.
State responsibilities
The Act includes numerous features designed to provide states with increased flexibility in designing and implementing workforce investment systems. It also prescribes new roles for governors. For example, the WIA:
- Requires that each state establish a business-led state Workforce Investment Board, consisting of the governor and appointees of the governor representing business, education, labor, local elected officials and others.
- Requires states to develop a comprehensive 5-year strategic state plan for all workforce investment activities, and to monitor the operation of the workforce investment system.
- Significantly increases, the governor’s flexibility to finance activities that are state priorities by allowing the state to reserve fifteen percent of the funds for formula-funded youth, adult and dislocated worker programs to use for an array of workforce investment activities.
- Provides the governor with a significant role in developing performance measures and negotiating expected levels of performance used to evaluate the effectiveness of the workforce investment system in his/her state.
State Workforce Investment Boards also play an important role in the design and implementation of state systems. For example, boards assist the governor in developing a 5-year strategic plan, continuously improving the system, designating local workforce investment areas, developing state performance measures, and developing funding formulas.
Federal responsibilities
The federal role is also changed. The federal role is now primarily one of oversight that focuses on coordinating services with other federal agencies, and ensuring overall accountability for results. The federal role includes:
- Strategic planning and policy formulation.
- Performance accountability to ensure that states and localities meet program performance requirements and provide the highest level of service to customers.
- Providing research and evaluation findings to the workforce investment system.
- Providing expert assistance to state and local partners and other stakeholders.
- Administration and oversight to ensure financial accountability of programs and compliance with legal requirements.
One-Stop Career Centers
One-Stop Career Center is a site that organizes employment, education and training services into a single network of public and private resources at the local, state and national level. State and local communities began creating their own One-Stop Career Centers in the early 1990s. It was not until Congress passed the WIA that many of the barriers to creating effective One-Stop Career Centers were eliminated and the centers became required by law.
At these integrated local One-Stop Career Centers, individuals can access high quality local information on available jobs, skill requirements, and training provider performance. While the WIA establishes certain minimum requirements for the structure of the local system, it allows local communities significant flexibility in the design and implementation of their One-Stop Career Center systems.
The partners required by the law to be part of the One-Stop Career Centers are:
- WIA Adult, Dislocated Worker, and Youth Activities;
- Employment Service;
- Adult Education;
- Post-Secondary Vocational Education;
- Vocational Rehabilitation;
- Welfare-to-Work;
- Title V of the Older Americans Act;
- Job Corps;
- WIA Indian and Native American Programs;
- WIA National Farm Worker Jobs Program;
- Trade Adjustment Assistance;
- NAFTA Transitional Adjustment Assistance;
- Veterans Employment and Training Programs;
- Community Services Block Grant;
- Employment and training activities carried out by the U.S. Department of Housing and Urban Development; and
- Unemployment Insurance.
Each One-Stop Career Center partner is required to be represented on the local board and to enter into a Memorandum of Understanding (MOU) with the local board describing what services are to be provided at the One-Stop Career Center, how the costs of the services and the operating costs of the system will be funded, methods of referral of individuals between the One-Stop operator and the One-Stop partners, the duration of the MOU, and the procedures for amending the MOU.
A One-Stop operator is designated to manage the day-to-day functioning of the local One-Stop Career Center. Post-secondary educational institutions, local Employment Service offices, community and faith-based organizations, private for-profit entities, and government agencies are eligible to be One-Stop operators. A local board may be designated with the agreement of the chief local elected official and the governor.
Each local area must have at least one physical “full service” center where customers can access services from each of the One-Stop partners. Additional service structures may include other full service centers or a network of affiliated sites, or a network of One-Stop partners that can consist of physical sites or electronic access points. Regardless of the design, all One-Stop Career Centers must be based on a “no wrong door” approach that assures customers access to information on all of the core services.
A business-led State Workforce Investment Board is appointed by the governor to oversee each state’s One-Stop Career Center system and to develop a statewide five-year strategic plan. The governor also designates a state agency to oversee the eligible training provider identification process. In most cases, the governors have designated the state workforce agency that carries out the state’s labor exchange programs.
The federal role in the One-Stop Career Center system is generally to coordinate activities between federal agencies and to provide administration and oversight to ensure financial accountability of programs and compliance with legal requirements.
One-Stop Career Center Services
Each One-Stop Career Center offers services ranging from self-service activities to more concentrated staff-assisted services. The Workforce Investment Act provides for a continuum of three levels of services that individuals are to progress through: core services; intensive services; and training, with the more extensive levels of services being provided only after the individual is unable to obtain employment with basic services.
Core Services
The Core Services required at each One-Stop Career Center include:
- Outreach, intake (which may include worker profiling), and orientation to the One-Stop Career Center;
- Initial assessment;
- Job search and placement assistance, and career counseling;
- Provision of labor market information;
- Provision of information on:
- Eligible providers of training and other services,
- Local performance outcomes,
- Activities at the One-Stop Career Center,
- Filing claims for unemployment insurance, and
- Supportive services;
- Assistance in establishing eligibility for Welfare-to-Work and financial aid assistance;
- Follow-up services; and
- Intensive services.
Intensive services may be provided to adults and dislocated workers who are unemployed, have received at least one core service and are unable to obtain employment through core services, or who are employed and have received at least one core service if the One-Stop operator determines the individual is in need of more intensive services in order to obtain or retain employment that leads to self-sufficiency. Intensive Services include:
- Comprehensive and specialized assessments of skill levels (e.g., diagnostic testing);
- Development of an individual employment plan;
- Group counseling;
- Individual counseling and career planning;
- Case management;
- Short-term prevocational services; and
- Training services.
Individuals who have met the eligibility requirements for intensive services and are unable to obtain or retain employment through intensive services may receive training services. Through One-Stop Career Centers, these individuals will be evaluated to determine whether or not they are in need of training and if they possess the skills and qualifications needed to participate successfully in the training program in which they express an interest. Training services must be directly linked to occupations that are in demand in the local area, or in another area to which the individual receiving services is willing to relocate. As with intensive services, in areas where the local board and the governor have determined that adult funds are limited, those with the greatest need may receive priority in the use of funds for training services.
One-Stop Career Centers provide access to consumer information about training providers that can assist individuals in gaining relevant skills, including information on the performance of such providers in placing graduates in employment. Through local boards, each state maintains a list of eligible training providers that meet performance levels set by the governor. The performance levels may be adjusted upward, as appropriate, by local boards. Individuals may choose any provider from the list of approved providers, whether or not the provider is located in the local area where the individual resides.
With limited exceptions, training services are provided through the use of Individual Training Accounts (ITAs). States and local boards determine the structure of the ITA system in their local areas that may take a variety of forms including vouchers, credit cards or debit cards.
Career OneStop Website (www.careeronestop.org)
Career OneStop is a portal website that connects users to relevant links, resources, and community services offered over the Internet. It also directs them to the information and services provided through these core products:
America’s Job Bank (www.ajb.org)
America’s Job Bank is the biggest and busiest job market in cyberspace, with over a million jobs nationwide and 400,000 résumés online. New jobs are added daily. It’s simple to use. Employers can post job listings and search résumés nationwide. Job seekers can post résumés electronically and reach employers all across the country.
America’s Career InfoNet (www.acinet.org)
America’s Career InfoNet is a source of information to help individuals make career decisions. It is an electronic storehouse of national, state and local labor market data with employment trends, wages and more. It also lists millions of employers by industry, occupation, and name.
America’s Service Locator (www.servicelocator.org)
America’s Service Locator helps individuals locate public service offices with information on finding a job, planning a career, locating training, dealing with job loss and recruiting employees. Visitors to the site can get a map and driving directions to the nearest location providing the desired services.
Workforce Tools of the Trade (www.workforcetools.org)
Workforce Tools of the Trade is designed to help workforce development professionals gain the knowledge and skills they need to excel at their jobs. It contains real life examples of what’s happening in the field, an extensive database of training resources and providers and links to workforce websites across the nation. It also is a reference tool with access to extensive information on publications.
O*NET OnLine (online.onetcenter.org)
The Occupational Information Network is an integral component of Career OneStop. The O*NET database is a comprehensive source of descriptions and skill sets for specific occupations. O*NET OnLine allows both the public and private sector to directly access key data for identifying and developing the skills of the American workforce.
Youth programs
The Workforce Investment Act reforms the youth training system and the Job Corps program, creating a system that is closely linked to the labor market. It also gives local areas greater discretion in determining how to allocate resources and provide services to youth within a comprehensive statewide system.
The new youth program is based on integrating academic and vocational education, integrating work-based and classroom-based instruction, creating connections with employers and private sector involvement.
The Act required the creation of a Youth Council under each local board. The Youth Councils include representatives of youth service agencies, parents, public housing authorities, Job Corps, former youth program participants, and other appropriate individuals.
The Youth Council may serve various roles, such as developing portions of the local plan relating to youth, recommending the providers of youth activities to be awarded grants by the local board, conducting oversight of these providers, and coordinating youth activities in the local area.
Youth services are delivered by entities that are competitively awarded a grant or contract by the local board. Such entities may or may not be the same as those providing other WIA services under the One-Stop Career Center system in the local area. Each local area can determine the extent to which they want to integrate youth services with the adult and dislocated worker delivery system in the One-Stop Career Center.
In order to be eligible for youth services, a youth must be 14-21, low income, and meet at least one of six specified barriers to employment including:
- Basic skills deficiency;
- A school dropout;
- Homeless, a runaway, or a foster child;
- Pregnant or a parent;
- An offender; or
- Require additional assistance to complete an educational program, or secure and hold employment.
Five percent of the youth served in a local area may be non-low-income if they experience one or more specified barriers to graduation or employment. In addition, in an attempt to focus resources on those most in need, thirty percent of funds in each local area must be expended on out-of-school youth. Youth who do not meet the eligibility requirements must be referred to the One-Stop Career Center or another appropriate program for further assessment in order to meet the basic skills and training needs of the individual.
WIA requires an individual assessment of skill levels and service needs and the development of a service strategy for each youth participant. The Act also outlines ten required elements of the youth program, including:
- Tutoring and study skills training and instruction,
- Alternative secondary school services,
- Summer employment opportunities,
- Paid and unpaid work experiences,
- Occupational skill training,
- Leadership development activities,
- Supportive services,
- Adult mentoring,
- Comprehensive guidance and counseling, and
- Follow-up services
WIA emphasizes longer-term service by providing such things as adult mentoring both during and after participation, for at least one year, and follow-up services for at least one year.
WIA also strengthens the Job Corps program and ensures that it functions as an integral part of the workforce investment system.