	Background

Although training for employed workers is largely the responsibility of  employers and individuals, publicly funded training seeks to fill potential  gaps in workers’ skills. Prior to WIA, welfare reform legislation created  the TANF block grant, which provided flexibility to states to focus on  helping needy adults with children find and retain employment. Two-thirds of the workforce boards responding to our  survey provided assistance to train employed workers in a variety of ways,  and nearly 40 percent of the workforce boards specifically targeted funds  on training for these workers. Most Local Workforce Boards Supported Training for Employed Workers

Two-thirds of the local workforce boards reported performing tasks that  facilitated the provision of employed worker training, such as partnering  with employers to develop training proposals and providing individual  services to employed workers. The number of  boards that reported budgeting or spending funds on such training in  program years 2000 or 2001 varied by state. Most states had at  least one workforce board that targeted funds for such training. Employed Worker Training Focused on Occupational and Basic Skills Training Provided by Community and Other Colleges

Although states reported funding many types of training for employed  workers, occupational skills training and basic skills training were the  most prevalent. Fifteen of the 16 states we contacted funded  occupational skills training—such as learning new computer  applications—for employed workers. 6.) In Targeting Training to Low-Wage Workers, Officials Addressed Several Challenges, though WIA Performance Measures Were an Issue

In targeting training to low-wage workers, state and local officials  addressed several challenges that hindered individuals’ and employers’  participation in training. Workforce officials developed ways to address  the personal challenges low-wage workers faced that made participating in  training difficult. Despite  attempts to address these issues, however, challenges to implementing  successful training still exist. Officials Identified Ways to Gain Employer Support for Low-Wage Worker Training

State and local officials developed a number of ways to address the  concerns of employers who were reluctant to participate in low-wage  worker training. State and local officials reported that the WIA performance measure that  tracks the change in adult earnings after six months could limit training  opportunities for employed workers, including low-wage workers. Appendix I: Objectives, Scope, and Methodology

To provide the Congress with a better understanding of how states and  local areas were training employed workers, including low-wage workers,  we were asked to determine (1) the extent to which local areas and states  provide assistance to train employed workers, including funding training;  (2) the focus of such training efforts and the kind of training provided; and  (3) when targeting training to low-wage workers, the approaches state and  local officials identified to address the challenges in training this  population. Workforce Investment Act: States and Localities Increasingly Coordinate  Services for TANF Clients, but Better Information Needed on Effective  Approaches.
Why GAO Did This Study

Although training for employed workers is largely the responsibility of employers and individuals, the Workforce Investment Act (WIA) allowed state and local entities to use federal funds for training employed workers. Similarly, welfare reform legislation created Temporary Assistance for Needy Families (TANF) block grants and gave states greater flexibility to design training services for TANF clients to help them obtain and retain jobs. To better understand how the training needs of employed workers, including low-wage workers, is publicly supported, GAO was asked to determine (1) the extent to which local areas and states provide assistance to train employed workers, including funding training; (2) the focus of such training efforts and the kind of training provided; and (3) when targeting training to low-wage workers, the approaches state and local officials identified to address challenges in training this population.

What GAO Found

Nationwide, two-thirds of the 470 local workforce boards responding to our survey provided assistance to train employed workers, such as partnering with employers to develop training proposals or funding training. Nearly 40 percent specifically budgeted or spent funds on training these workers. The number of boards that reported funding training for employed workers varied by state, but most states had at least one workforce board that targeted funds on such training. At the state level, all 16 states that GAO contacted also funded training for employed workers. These states and local workforce boards reported funding training that addressed specific business and economic needs. Although many types of training for employed workers were funded, most often occupational training to upgrade skills, such as learning new computer applications, and basic skills training, such as in English and math, were emphasized and community or technical colleges were most frequently used to provide these services. In targeting training specifically for low-wage workers, state and local officials identified approaches to challenges that hindered individuals' and employers' participation in training. Officials developed approaches to address some of the personal issues that low-wage workers face that made participating in training difficult. They also developed ways to gain support from employers who were reluctant to participate in low-wage worker training, such as by partnering with employers to develop career paths that help retain employees within companies. However, officials reported that challenges to implementing successful training still exist. For example, they explained that the WIA performance measure that tracks the change in adult earnings after 6 months could limit training opportunities for employed workers, including low-wage workers. The wage gain for employed workers would not likely be as great as that for unemployed job seekers, and this might provide a disincentive to enrolling employed workers into training because their wage gain may negatively affect program performance.