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Why the Workforce Investment Act Matters — Part III

October 26, 2012

This is the third in a series on the Workforce Investment Act (WIA) and NLC’s belief that Congress must reauthorize and modernize the Act to ensure that it meets the needs of today’s workers and employers. In this third blog we will explore how these locally-based job training programs have translated into real world outcomes that have benefited unemployed, underemployed and economically disadvantaged adults and youth throughout the United States.

Why the Workforce Investment Act Matters — Part III

By Neil Bomberg

Having looked at the ways in which the Workforce Investment Act (WIA) is structured and operated, it is now worth asking how has the nation’s Workforce Investment Act system performed?

A review of national data suggests that it has performed very well. Overall outcomes are extremely good, especially when one considers that many WIA participants are among the most difficult to help find work.

According to the U.S. Department of Labor, 81 percent of all participants and 80 percent of all employers who participated in the WIA system said they were satisfied with the assistance they received.

Among low-income adults who participated in WIA programs:

• Fifty-five percent obtained employment. While this number is lower than it should be (the goal was 72 percent) it is significantly higher than the placement rate for non-WIA individuals, which is less than 25 percent.
• Eighty percent of those who obtained employment remained on the job after six months and 72 percent found a job which matched their skills levels.
• Seventy percent who received job training entered employment and 87 percent of those remained on the job more than six months.

Among dislocated workers who participated in WIA programs:

• Fifty-seven percent obtained employment as a result of their participation in WIA. Like the adult figure, this is lower than it should have been (the goal was 77 percent) but it more than twice the placement rate for non-WIA individuals which is 25 percent.
• Eighty-eight percent of those dislocated workers who obtained employment remained on the job after six months.
• Of those dislocated workers who received job training services 78 percent entered employment and 90 percent of those remained on the job after six months.

Among youth aged 19 to 24, 63 percent entered employment or returned to school, 57 percent obtained a degree or certificate, and 38 percent made measurable literacy and numeracy gains. Among youth aged 14 to 18, 87 reached their desired skills attainment levels and 67 percent obtained a diploma or its equivalent.

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