PEER. Discussion of 2009 PEER Report: A Review of Mississippi s Implementation of the Workforce Investment Act
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1 Discussion of 2009 PEER Report: A Review of Mississippi s Implementation of the Workforce Investment Act 1
2 Briefing Outline Background: Description of Workforce Investment Act (WIA) of 1998 [P.L ] Mississippi s Implementation of the Act Holding the Act Accountable for Results 2
3 Background: Description of WIA 3
4 Purpose of WIA (global) To provide workforce development services to employers and workers resulting in: reduced dependency on public assistance; improved quality of the workforce; and, enhanced productivity and competitiveness of the U.S. 4
5 Purpose of WIA (individual) To increase participants occupational skills, resulting in increased: employment; employment retention; and, earnings 5
6 Major Components of WIA 3 program areas: Adults (age 18 and older); Dislocated workers (laid off and unlikely to return to previous employment); and Youth (age 14-18) 6
7 Major Components of WIA, cont. Provides broader range of services than Job Training Partnership Act: Core service requirements (e.g., outreach, assessment of skills and needs, job search, placement assistance) Intensive services requirements (e.g., comprehensive assessments, development of individual employment plans, occupational skills training, on-the-job training, supportive services such as child care) One-stop-shop: customers must be able to access services at a single location in their neighborhoods Shift in program responsibility from state to locals 7
8 Major Components of WIA, cont. Creation of state workforce investment boards (SWIBs) must develop 5 year strategic plans must designate LWIB areas Creation of local workforce investment boards (LWIBs) required business majority and business chair (over 12,000 employers serve on SWIBs and over 550 LWIBs nationwide) businesses help to ensure that the system prepares people for current and future jobs by training the workforce to meet their skill needs conduct local labor market analyses to understand demand and trends in the market 8
9 WIA: Pennsylvania Example Sectoral approach used to target WIA resources: identify industries with strongest upcoming need for skilled workers and potential for growth train workforce to meet their demands 9
10 WIA: Pennsylvania Example, cont. Industry Need: Manufacturers in Berks County region losing skilled industrial maintenance workers to retirement; Inadequate pipeline of new entrants; Shifting job requirements: need for cross-trained technicians with more advanced technical skills 10
11 WIA: Pennsylvania Example, cont. Training Solution: Employers partnered with community colleges, secondary career and technology centers, and LWIBs to address need for workers skilled in mechatronics (combines mechanical, electrical and controls engineering with computer science); Developed an advanced manufacturing integrated systems technician certification program; over 400 workers earned certification Later added associate and baccalaureate degree programs 11
12 Implementation of WIA in Mississippi 12
13 State WIA Administrator Governor designated Mississippi s Department of Employment Security as the state WIA Administrator MDES establishes statewide WIA policies MDES monitors the performance of the workforce areas and submits quarterly and annual progress reports to U.S. Dept. of Labor (DOL) MDES receives federal WIA allocations from DOL and allocates the funds to the state s four LWIBs 13
14 Mississippi WIA Funding Allocations 14
15 Mississippi WIA Funding Allocations, cont. 15
16 Mississippi s WIA Service System In 2008: 53 Workforce Investment Network (WIN) Job Centers; 14 E-WIN access points at public libraries; access to Mississippi Online Job Opportunities (MOJO) from any location with internet access MDES functions as the one-stop operator of the majority of centers One-stop partners include: Department of Education, Department of Rehabilitation Services, and State Board for Community and Junior Colleges 16
17 Holding WIA Accountable for Results 17
18 WIA Performance Accountability System WIA establishes common measures for the 3 programs (adults, dislocated workers, and youth) Data collected from Unemployment Insurance (UI) wage records In setting performance goals (negotiated with DOL), the act directs the state and local areas to take into account factors affecting performance such as differences in economic conditions, characteristics of participants, and services to be provided DOL considers a state in compliance if it meets at least 80% of the negotiated performance goal 18
19 Common Measures for Adults and Dislocated Workers Entered employment rate: of unemployed participants: # employed in 1st quarter after exit quarter Employment retention rate: of those participants employed in 1st quarter after exit quarter: # employed in both 2 nd and 3 rd quarters after exit quarter Average earnings: of participants employed in 1 st, 2 nd, and 3 rd quarters after exit quarter: total earnings in 2 nd plus 3 rd quarters after the exit quarter Divided by # participants who exit during quarter 19
20 Mississippi s Performance on the Common Measures: Adults Program Year Entered Employment Rate Employment Retention Rate Average Earnings* , , , , , , ,818 * Changed from increase in average earnings to average earnings in
21 Mississippi s Performance on the Common Measures: Dislocated Workers Program Year Entered Employment Rate Employment Retention Rate Average Earnings* % % % % $ $10, $11,148 * Changed from increase in average earnings to average earnings in
22 WIA Performance Accountability System: Common Measures for Youth Placement in employment or education Of those not in post-secondary education or employment at date of participation: # of participants employed, enrolled in post-secondary education or advanced training/occupational skills training in 1 st quarter after exit quarter Attainment of a degree or certificate Of those enrolled in education: # participants who attain a diploma, GED, or certificate by end of 3 rd quarter after exit quarter Divided by # of participants who exit during quarter 22
23 Common Measures for Youth, cont. Literacy or numeracy gains Of out-of-school youth deficient in basic skills: # of participants who increase one or more functioning levels/ # of participants who have completed a year in the program plus the # of participants who exit before completing a year in the program 23
24 Mississippi s Performance on the Common Measures: Youth Program Year Placement (in employment or education) Attainment (of a degree or certificate) Literacy or Numeracy Gains
25 Increase in Number of WIA Participants who Entered Employment During period of PY PY 2007: 153,783 WIA participants entered employment Adults: 78,180 Dislocated Workers: 69,728 Youth: 5,875 The number of WIA participants who became employed increased from 872 in PY 2001 to 49,174 in PY
26 Performance Accountability System: Customer Satisfaction Surveys conducted after conclusion of participation in workforce investment activities MDES also hired mystery shoppers to evaluate customer service at the WIN centers, based on: Job seeker visits (finding: centers hard to find due to lack of signage) Job seeker calls (majority of centers scored 8 or above) Employer calls (majority of centers scored 7 or above) 26
27 Limitations to WIA Performance Monitoring Data reported to DOL s national participant database, the Workforce Investment Act Standardized Records Data (WIASARD) GAO and DOL expressed concerns about completeness and accuracy of data in WIASARD 27
28 Limitations to WIA Performance Monitoring, cont. Data source (UI) is not available on all workers GAO found that states are selecting which participants they include in their reporting Data does not differentiate between effectiveness of the different services that participants receive Common measures do not reflect on the more global objectives; e.g., improved quality of workforce, effectiveness of WIA programs in reducing un/underemployment 28
29 Mississippi Employment and Unemployment Data (7/90-7/11) 29
30 Mississippi Unemployment Rates (7/90-7/11) 30
31 WIA Participants who Entered Employment in Comparison to # Unemployed Program Year Total WIA Participants who Entered Employment Total Unemployed Persons Percentage of Unemployed Served , % ,710 85, % ,171 89, % ,670 82, % ,055 95, % ,131 84, % ,174 81, % Total 153, , % 31
32 PEER Efficiency Review PEER concluded that through more efficient use of technology (e.g., establishment of call centers, automated services) MDES has become more efficient in its delivery of employment services From 2000 through 2008, there were: 21 fewer service delivery sites; 15% fewer MDES employees (539 in 2000 vs. 460 in 2008) providing employment services to significantly more program participants 32
33 PEER Efficiency Review 33
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