In program year 2000, older workers received employment and training  services from various federal employment and training programs,  including the Senior Community Service Employment Program (SCSEP),  the Workforce Investment Act (WIA), and Trade Adjustment Assistance  (TAA) programs. For  the dislocated worker program, participants’ earnings after completing the  program are expressed as a percentage of their earnings before entering  the program. Older People Enrolled in Federal Programs Generally Receive Subsidized Community Service Jobs and Job Search Assistance

Approximately 12 percent of all older people who were not working and  wanted a job were enrolled in federal employment and training programs;  most of these individuals received subsidized community service jobs or  job search assistance, while a smaller number received training. Other older workers may receive job assistance services without  being enrolled in a federal employment and training program, but these  individuals are not counted in program statistics. 3). Within WIA, the adult program enrolled  less than 1 percent of all people aged 55 and older who would have been  eligible on the basis of age. For example, at least 14,000 older individuals— many of whom were also enrolled in the community service jobs  program—participated in SCSEP training programs between July 2000 and  June 2001 to prepare for private sector jobs. WIA Performance Measures May Affect Older Workers’ Access to Services

Employment and training providers report that, as a result of WIA’s  performance measures, they are less likely to enroll some older workers in  services such as training. Officials in  six of the ten local workforce areas that we visited consider performance  measures a barrier to enrolling older workers into WIA because their high  prior wages and/or their tendency to work part time negatively impact the  area’s performance. 6). Conclusions

According to some economists, the United States will face a significant  labor shortage by 2030. Research findings have been inconsistent as to whether older workers  need special services to help them find or retain employment and  employment and training providers have taken different approaches to  providing services to older workers. Consequently, some older workers, and any  other workers who share similar employment characteristics with older  workers, may not receive the more in-depth services that may be  necessary to help ensure that these workers are provided adequate  opportunities to fill the anticipated labor shortage and meet employer  needs. Recommendation for Executive Action

In light of concerns that older workers have unique employment  characteristics that could adversely affect certain program outcomes and  that older workers who need in-depth job search assistance and job  training to remain in, or re-enter, the workforce may not receive such  services, we recommend that the Secretary of Labor assess WIA  performance measures and make adjustments as necessary to eliminate  the disincentive to enrolling older workers in WIA. Copies will be made available to others upon request. Workforce Investment Act: Coordination of TANF through One-Stops Has  Increased Despite Challenges. Workforce Investment Act: New Requirements Create Need for More  Guidance.
Why GAO Did This Study

Some economists predict that by 2030, the United States could experience a labor shortage of 35 million workers. As the shortage approaches, one option available is to encourage people to work beyond traditional retirement ages, especially because people who are age 55 or older will constitute nearly a third of the poppulation. Accordingly, increasing demands will be made on the workforce development system to help ensure that older workers are provided opportunities to help address the anticipated labor shortage. Concerned that the existing workforce development system may not meet the needs of older workers, the Subcommittee's Ranking Minority Member asked GAO to determine the extent that older workers are enrolled in federal employment and training programs, what services are provided, and how performance measures affect such services.

What GAO Found

About 12 percent of the 1.3 million older people who were not working and wanted a job were enrolled in these programs between July 2000 and June 2001. Some older workers received services without being enrolled in a program but these people were not counted in program statistics. The majority of older people enrolled received subsidized jobs through the Senior Community Service Employment Program. About one-third participated in programs funded by the Workforce Investment Act and Trade Adjustment Assistance. Most of the older workers enrolled in these programs received job search assistance, such as help in preparing for interviews and writing resumes, but some also received job training. Research findings have been inconsistent as to whether older workers have distinct learning needs, but Workforce Investment Act program providers are less likely now than in the past to have separate programs for older workers. The Workforce Investment Act requires program providers to report certain information so that Labor can determine how well programs are performing. These performance measures include how many participants find jobs and how much their earnings have increased. Program providers report that some performance measures provide a disincentive to enrolling older workers into the program because of employment characteristics that may negatively affect program performance. For example, in 6 of 10 the local areas we visited, officials said they considered performance measures a barrier to enrolling older workers seeking part-time jobs because they would have lower earnings and therefore reduce program performance. Consequently, some older workers may only receive job search assistance and not have access to in-depth services, such as computer training.