WIA Performance Data Provide a Long- Term National Picture of Outcomes, but Are Less Useful for Gauging Current Performance and Represent a Small Portion of WIA Participants

WIA performance data are useful for providing a long-term national  picture of program outcomes; however, these data are less useful for  providing information about current performance, and represent only a  small portion of job seekers that received WIA services. UI wage  recordsthe primary data source for tracking WIA performance—provide  a fairly consistent national view of WIA performance and allow for  tracking outcomes over time. In addition, the states’ annual reports reflect only a small portion of job  seekers who receive WIA services because, under the law and Labor’s  guidance, not all job seekers who utilize one-stop services are required to  be included in the performance reports. The amount of time between when  participants receive services and when their outcomes are reported to  Labor varies, but it is about 1½ years at a minimum. Despite the progress states and local areas have made in developing and  using interim outcome information, nearly all states and local areas  reported they would like more help from Labor in collecting and  disseminating promising practices on interim indicators to assess WIA  performance. Nonetheless, most states and local  areas have developed ways to assess the performance of their one-stops,  using four basic types of indicatorsjob seeker measures, employer  measures, program partnership measures, and family and community  indicators. Labor Has Taken Actions to Improve WIA’s Performance Measurement System and Assess One-Stops but Could Do More

Although Labor has taken steps to improve WIA’s performance  measurement system and assess one-stops, some of its efforts do not go  far enough. Labor has commissioned a study of adjustment methods that  would better take into account economic and demographic differences  when negotiating performance levels. While Labor has plans to conduct impact studies,  the department will not meet WIA’s requirement to conduct an impact  study by 2005, and without such a study, little will be known about WIA’s  effectiveness. While most of Labor’s policies for the common measures can advance  measurement across one-stop partners, Labor plans to rely almost entirely  on the UI wage records and discontinue the use of supplemental data for  filling gaps in UI wage records. But  in order to meet their performance levels, some states must continue to  rely on other data sources to fill gaps. Appendix I: Objectives, Scope, And Methodology

We examined (1) how useful WIA performance data are in gauging  program performance, (2) what local areas are doing to manage their WIA  performance and assess one-stop success on a timely basis and how states  are assisting these efforts, and (3) to what extent Labor is trying to  improve WIA’s performance measurement system and assess one-stop  success.
Why GAO Did This Study

With rising federal deficits and greater competition for public resources, it is increasingly important for federal programs, such as the Workforce Investment Act (WIA) programs, to show results. This report examines (1) how useful WIA performance data are for gauging program performance; (2) what local areas are doing to manage their WIA performance and assess one-stops on a timely basis, and how states assist these efforts; and (3) the extent to which the Department of Labor is trying to improve WIA's performance measurement system and assess one-stop success.

What GAO Found

WIA performance data provide a long-term national picture of outcomes, but these data offer little information about current performance and represent a small portion of job seekers who received WIA services. Unemployment Insurance wage records--the primary data source for tracking WIA performance--provide reliable outcome information over time. But they have shortcomings, such as not including some categories of workers, and considerable time lags before data are available. Many states rely on alternative data sources to fill gaps in the wage records. However, the time between when a participant receives services and when their outcomes are reported to Labor can range from about 1 1/2 to 2 1/2 years or longer. In addition, states' annual reports reflect only a small portion of job seekers who receive WIA services because of restrictions in the law and policies of Labor. With assistance from states, many local areas collect interim outcome information from former participants or employers and use other interim indicators to track WIA performance levels long before wage record data are available. However, states and local areas would like more help from Labor in disseminating best practices on interim performance measures. In addition, these efforts tell them little about the performance of their overall one-stop systems. Many states and local areas rely on other indicators--job seeker measures, employer measures, program partnership measures, and family and community indicators to assess their one-stops. Labor has taken steps to improve WIA's performance system and assess onestops, but could do more. Although Labor is studying adjustment methods that could better take into account local differences when negotiating performance levels, it has not committed to using such a method nationally. Labor also has efforts to improve the quality of WIA's performance data and is developing a set of common measures for one-stop partner programs. Yet as part of the common measures, Labor plans to restrict the use of alternative data. Labor has also delayed plans to conduct an impact evaluation and will not meet its statutory requirement to do so by 2005.