Labor’s workforce development responsibilities are housed in the Employment and Training Administration (ETA) and the Veterans’ Employment and Training Service. Together, they have a fiscal year 1997 budget of about $6.5 billion and 1,595 FTEs. Workforce Development Mission Is Challenged by Multiple Programs

uncertain how this fragmented system will be able to meet the employment demands of those affected by the recent welfare reform legislation. Multiple Employment Programs With Limited Information

A major challenge for Labor is to facilitate workforce development within the context of a conglomeration of programs operated by Labor and 14 other federal departments and agencies. Welfare Act Work Requirements Pose Challenges for Workforce Development Programs

The passage of the recent welfare reform legislation is likely to have an impact on the structure and delivery of employment training programs at the state and local levels. Opportunities Exist to Improve Labor’s Worker Protection Efforts

When we testified before this Subcommittee almost 2 years ago about the overall federal role in worker protection, we stressed the need for Labor to change its approach to one that was more service oriented and made more efficient use of agency resources. But this change has not been without controversy, and further opportunities exist to develop alternative regulatory approaches. In addition to the overall need to consider alternatives to current regulatory approaches, Labor faces regulatory challenges in two specific areas: (1) redesigning the wage determination process under the Davis-Bacon Act and (2) as a result of recent legislative action, developing and enforcing regulations regarding portability of employer-provided health insurance. Changes in OSHA’s regulatory approach illustrate Labor’s action in this direction. Over the next few months, Labor officials will continue discussions with OMB as well as consultations with the Congress and the stakeholders. It has developed a draft strategic plan that identifies its performance goals and measures, and it has been working to develop a comprehensive performance measurement system that will focus on outcomes to measure its own effectiveness. By meeting these requirements, Labor has been instilling accountability and oversight into its financial activities. Labor has made some efforts to improve its information management systems; for example, it has appointed a chief information officer. Labor’s mission is an urgent one. We are hopeful that the changes Labor is making in its approach to management will help it better address the two challenges we have identified: developing employment skills through programs that meet the needs of a diverse workforce in the most cost-effective way and effectively ensuring the well-being of the nations’ workers while reducing the burden of providing that protection.
Why GAO Did This Study

GAO discussed the major challenges Department of Labor faces in achieving its mission, focusing on: (1) Labor's efforts to provide effective employment and training programs that meet the diverse needs of its target populations in a cost-efficient manner; (2) Labor's efforts to ensure worker protection within a flexible regulatory structure; and (3) how Labor's ability to meet these challenges would be enhanced by the improved management envisioned by recent legislation.

What GAO Found

GAO noted that: (1) although Labor has historically been the focal point for workforce development activities, it faces the challenge of meeting those goals within the context of an uncoordinated system of multiple employment and training programs operated by numerous departments and agencies; (2) in fiscal year 1995, 163 federal employment training programs were spread across 15 departments and agencies (37 programs were in Labor), with a total budget of over $20.4 billion; (3) although GAO has not recounted the programs and appropriations, GAO is confident that the same problem exists; (4) rather than a coherent workforce development system, there is a patchwork of federal programs with similar goals, conflicting requirements, overlapping target populations, and questionable outcomes; (5) comprehensive legislation that would have addressed this fragmentation was considered but not passed by the 104th Congress; (6) in the absence of consolidation legislation, Labor has gone ahead with some reforms, such as planning grants for one-stop career centers, but the actions it has taken have not been enough to fix the problems; (7) passage of the recent welfare reform puts even greater demands on an employment training system that appears unprepared to respond; (8) a second major challenge for Labor is to develop regulatory strategies that ensure the well-being of the nations' workers in a less burdensome, more effective manner; (9) Labor has made some changes since GAO last testified, which are perhaps best illustrated by actions at the Occupational Safety and Health Administration (OSHA), such as its partnership initiatives with companies, but OSHA's actions have not been without controversy, and substantial challenges remain there and at other Labor components with worker protection responsibilities; (10) congressional action poses new challenges in the worker protection area as well; (11) Labor has committed to redesigning its Davis-Bacon wage determination process with additional funds appropriated by the Congress; (12) Labor also must issue and enforce regulations to implement the new health care portability law; and (13) in meeting these mission challenges, Labor will need to become more effective at managing its organization.