Data Suggest Need for Water Operators Resembles Workforce Needs across All Occupations, but Little Is Known about Effects of Any Unmet Needs on Compliance

Data available from BLS suggest that the workforce replacement needs  for water operators are similar to workforce replacement needs  nationwide across all occupations. BLS  intends its projections to capture the long-run trend, direction, and growth  of the labor force rather than to predict precise outcomes in specific  years. BLS projects that there will be an annual  average of 9,200 job openings for water operators between 2016 and  2026. Limited Information Is Available on Unmet Workforce Needs and Their Effects on Compliance, and EPA Has Not Prompted States to Collect Information on Future Needs

Little is known about whether unmet workforce needs are affecting water  utilities’ overall abilities to comply with the Safe Drinking Water Act and  Clean Water Act. At a national level, neither the water utilities’ industry  associations nor EPA has analyzed whether there is a relationship  between unmet workforce needs and compliance problems. EPA relies on states to inspect utilities and ensure compliance with  requirements under the Safe Drinking Water and Clean Water acts. EPA’s inspection guidance—for both drinking water sanitary surveys and  wastewater compliance inspections—advises states to examine the  adequacy of water utilities’ workforces—that is, the quality and quantity of  staff operating and maintaining drinking water and wastewater facilities. According to our December 2003 report, strategic workforce planning  focuses on developing of long-term strategies for acquiring, developing,  and retaining an organization’s total workforce to meet the needs of the  future. Selected Utilities Used a Mix of Approaches to Manage their Workforce Needs

The representatives from the selected utilities reported that by using  various approaches, they were generally able to hire water operators, but  they faced some challenges in doing so. These  approaches included recruiting from other states, working with local  workforce boards and American Job Centers, establishing formal  apprenticeships, reaching out to recruit veterans, and partnering with  local technical and postsecondary schools. Representatives of one of the large utilities said they  also had a partnership with a high school. Key Federal Programs Have Several Ways to Assist Utilities with Workforce Needs, and Selected Utilities Accessed Some of Those Programs

The five federal agencies we reviewed—EPA, USDA, Education, DOL,  and VA—have programs that can assist utilities with their workforce  needs in several ways, including through guidance, funding, and training. In addition to funding technical assistance, EPA has assisted in efforts to  attract new employees to the drinking water and wastewater industry. For example, in 2009, EPA worked  with DOL and industry groups to develop a competency model for the  water sector, which was updated in 2016. Programs for Rural Utilities (USDA)

Representatives from four of the selected small utilities we interviewed  said they use training programs offered by the National Rural Water  Association to train the water operators they hire. By  adding questions to its inspection guidance documents on strategic  workforce planning—such as the number of positions needed in the  future, skills needed in the future, and any potential gaps in water  operator positions—EPA could help ensure this information is available  for states to assess future workforce needs. Information on future  workforce needs could help states and utilities identity potential workforce  issues and take action as needed. Recommendation for Executive Action

The Assistant Administrator for Water should direct EPA’s Office of Water  to amend its Safe Drinking Water Act and Clean Water Act inspection  guidance documents to add questions on strategic workforce planning  topics—such as the number of positions needed in the future, skills  needed in the future, and any potential gaps in water operator positions. Appendix I: Objectives, Scope, and Methodology

This report examines (1) what is known about workforce needs at water  utilities compared with workforce needs nationwide and any effects of  potential unmet workforce needs on the utilities’ abilities to comply with  the Safe Drinking Water Act and the Clean Water Act; (2) what  approaches selected water utilities have used to manage their workforce  needs and challenges they have faced in managing those needs; and (3)  in what ways, if any, key federal programs can assist water utilities with  their workforce needs. To examine what is known about workforce needs at water utilities  compared with workforce needs nationwide, we assessed and  summarized data on workforce replacement rates provided by the  Department of Labor’s Bureau of Labor Statistics (BLS) and examined  projected retirement rates provided by industry studies.
Why GAO Did This Study

Safe operation of the nation's water utilities depends on access to a qualified workforce, particularly certified water operators. Industry reports have cited high rates of retirement eligibility and raised concerns about the water industry's ability to fill job openings.
GAO was asked to review workforce needs within the drinking water and wastewater industry. This report describes (1) what is known about workforce needs at water utilities compared with workforce needs nationwide and effects of potential unmet workforce needs on the utilities' compliance with the Safe Drinking Water Act and Clean Water Act; (2) approaches used by selected utilities to manage their workforce needs and challenges they have faced in managing those needs; and (3) ways in which federal programs can assist water utilities with workforce needs.
GAO reviewed workforce projections, relevant laws and regulations, agency documents, and industry studies and interviewed federal, local, and industry officials. GAO also conducted semi-structured interviews with a nongeneralizable sample of 11 water utilities, selected by size, location, and indications of workforce needs.

What GAO Found

Projections from the Department of Labor's Bureau of Labor Statistics (BLS) suggest that workforce replacement needs for water operators are roughly similar to workforce needs nationwide across all occupations; however, little is known about the effects of any unmet needs on compliance with the Safe Drinking Water Act and the Clean Water Act. BLS has projected that 8.2 percent of existing water operators will need to be replaced annually between 2016 and 2026. Although BLS projections are intended to capture long-run trends, rather than to forecast precise outcomes in specific years, this predicted replacement rate is roughly similar to the predicted rate of 10.9 percent for all workers across the U.S. economy. Limited information is available to determine whether retirements, or other workforce needs, are affecting drinking water and wastewater utilities' ability to comply with the Safe Drinking Water and Clean Water acts. At a national level, neither the water utilities' industry associations nor the Environmental Protection Agency (EPA) has analyzed whether there is a relationship between unmet workforce needs and compliance problems. EPA relies on states to inspect utilities to ensure compliance with the acts. EPA's inspection guidance documents, for both drinking water and wastewater, advise states to examine the quality and quantity of staff operating and maintaining water utilities. However, the guidance does not advise states to examine future workforce needs. GAO has found that future workforce needs can be identified through strategic workforce planning, which involves developing long-term strategies for acquiring, developing, and retaining staff to achieve program goals. By adding questions to EPA's inspection guidance on strategic workforce planning, such as the number of positions needed in the future, EPA could help make this information available for states to assess future workforce needs. Information on future workforce needs could help states and utilities identity potential workforce issues and take action as needed.
Representatives from 11 selected water utilities reported that by using various approaches, they were generally able to meet their current workforce needs but faced some challenges in doing so. Representatives from the selected utilities said that they recruit operators using word of mouth, websites, newspapers, and partnering with local technical schools. However, representatives from small utilities said that even with these approaches, they had difficulty hiring certified operators and instead hired and trained entry-level employees. Additionally, representatives from large utilities said they face difficulties in recruiting skilled workers, such as electricians and mechanics, part of a larger national pattern.
Five federal agencies that GAO reviewed—EPA and the Departments of Agriculture (USDA), Labor (DOL), Education, and Veterans Affairs (VA)—have programs or activities that can assist utilities with their workforce needs in several ways, including through guidance, funding, and training. EPA has worked with DOL and industry groups to develop a water-sector competency model to support industry training and with VA to help place disabled veterans in water industry jobs. In addition, USDA funds personnel who travel to rural utilities to provide hands-on assistance through its Circuit Rider program. Four of five small utilities GAO interviewed said they used this program and other USDA technical assistance for training operators.

What GAO Recommends

GAO recommends that EPA add strategic workforce planning questions, such as the positions and skills needed in the future, to its inspection guidance documents. EPA generally agreed with GAO's recommendation as it related to drinking water, but neither agreed nor disagreed regarding wastewater. GAO believes the entire recommendation should be implemented.