Job Corps seeks to enroll the most severely disadvantaged youth who have multiple barriers to employment. However, the students who completed vocational training at these centers were 5 times more likely to obtain a training-related job at wages 25 percent higher than students who did not complete their training. 7). Employers Satisfied With Job Corps Students

On the basis of our survey of employers of a random sample of Job Corps students from the six centers, we found that employers were generally satisfied with the basic work habits and technical preparation of the Job Corps students they employed. Our work directed at this long-standing practice raises questions about whether the program and its students are benefiting from this arrangement. Its justification for making sole source awards, rather than using full and open competition, is based on three broad factors: (1) the contractor’s past relationship with Job Corps, that is, experience with Labor’s Employment and Training Administration in general and Job Corps specifically, and its thorough knowledge of Job Corps procedures and operation; (2) the contractor’s organizational structure, that is, a large nationwide membership related to a trade, and its strong relationship with national and local apprenticeship programs; and (3) the contractor’s instructional capability, that is, qualified and experienced instructors; ability to provide training specifically developed for the learning level of Job Corps students; and the ability to provide recognition of training as credit toward meeting the requirements of a journeyman. Using Labor’s national data, we found only moderate differences in the performance of the national contractors as compared with other Job Corps training providers. The national contractors account for about one-third of Job Corps’ vocational training expenditures and the training they provide is primarily in a declining occupational category—the construction trades—which represents about 4 percent of the job market. Scope and Methodology

We designed our study to collect information on the characteristics of Job Corps students, the services they were provided, and the outcomes they achieved, including employers’ satisfaction with the students hired. These characteristics included (1) being a school dropout, (2) having basic skills deficiencies (that is, reading or math skills below eighth grade), (3) receiving public assistance, and (4) having limited English proficiency.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on Job Corps program operations, focusing on: (1) who is being served and the services provided; (2) the outcomes that the program is achieving in relation to program cost and employers' satisfaction with Job Corps students they hire; and (3) whether the long-standing practice of awarding sole-source contracts for vocational training services is cost-effective.

What GAO Found

GAO found that: (1) Job Corps services severely disadvantaged youth and provides them with comprehensive services in a residential setting; (2) 68 percent of the students that left Job Corps in 1994 encountered several barriers to employment, such as not having a high school diploma, lacking basic skills, receiving public assistance, and having limited English proficiency; (3) 20 percent of Job Corps' funds were spent on basic education and vocational skills training in 1994; (4) Job Corps students that complete vocational training are five times more likely to get higher paying, training-related jobs; (5) most employers are generally satisfied with Job Corps students' basic work habits and the technical training provided by the Job Corps program; (6) only moderate differences exist between the job placement rates of national contractors and Job Corps training providers; and (7) the continued use of national contractors as training providers is not cost-effective because they account for nearly one-third of Job Corps' vocational training expenditures and the training they provide is primarily in a declining occupational category.