The American Recovery and Reinvestment Act: The Role of Workforce Programs

3 Workforce Investment Act (WIA) Adult and Dislocated Worker Programs

35 3 Workforce Investment Act (WIA) Adult and Dislocated Worker Programs John Trutko Capital Research Corporation Burt S. Barnow George Washington University The Adult and Dislocated Worker programs under Title I of the Workforce Investment Act of 1998 are designed to provide employment and training services to help eligible individuals find and qualify for meaningful employment, and to help employers find the skilled workers they need to compete and succeed in business (USDOL 2010). Among the key goals of the WIA program are the following: • To increase employment, as measured by entry into unsubsidized employment • To increase retention in unsubsidized employment • To increase earnings received in unsubsidized employment for dislocated workers Services under the WIA Adult and Dislocated Worker programs are usually provided through One-Stop Career Centers. There are three levels of service: 1) core services—which include outreach, job search and placement assistance, and labor market information, and are available to all job seekers; 2) intensive services—which include more comprehensive assessments, development of Individual Employment Plans (IEPs), and counseling and career planning; and 3) training services—where customers learn skills for job opportunities in their communities, through both occupational training and basic skills training. In most cases, customers are provided a voucher-like 36 Trutko and Barnow instrument called an Individual Training Account (ITA) to select an appropriate training program from a qualified training provider. Supportive services, such as transportation, child care, housing, and needsrelated payments, are provided under certain circumstances to allow an individual to participate in the program. “Rapid response” services at the employment site are also available, both for employers expected to close or have major layoffs and for workers who are expected to lose their jobs as a result of company closings and mass layoffs. States are responsible for program management and oversight, and operations are delivered through local workforce investment areas (LWIAs). Under the WIA Adult Program, all adults 18 years and older are eligible for core services. When funds are limited, priority for intensive and training services must be given to recipients of public assistance and other low-income individuals. In addition to unemployed adults, employed adults can also receive services to obtain or retain employment that will allow them to be self-sufficient. States and LWIAs are responsible for establishing procedures for applying the priority and self-sufficiency requirements. Under the WIA Dislocated Worker Program, a “dislocated worker” is an individual who meets the following criteria: • Has been terminated or laid off, or has received a notice of termination or layoff from employment • Is eligible for or has exhausted UI • Has demonstrated an appropriate attachment to the workforce, but is not eligible for UI and is unlikely to return to a previous industry or occupation • Has been terminated or laid off or received notification of termination or layoff from employment as a result of a permanent closure or substantial layoff • Is employed at a facility where the employer has made the general announcement that the facility will close within 180 days • Was self-employed (including employment as a farmer, a rancher, or a fisherman) but is unemployed as a result of general economic conditions in the community or because of a natural disaster WIAAdult and Dislocated Worker Programs 37 • Is a displaced homemaker who is no longer supported by another family member The Recovery Act supplied additional funding to support employment and training activities provided by states and LWIAs under WIA. The act included funding aimed at helping states and local areas respond to increased numbers of unemployed and underemployed customers entering the One-Stop system, as well as some specific provisions (discussed in greater detail later in this chapter) that were intended to enhance services provided under WIA. The sections below synthesize findings from an on-line NASWA survey conducted in all states in the summer and fall of 2009 and two rounds of site visits conducted in 20 states with respect to how key Recovery Act provisions have been implemented and have affected WIA Adult and Dislocated Worker program services and operations. The two rounds of site visits to the states, held at two local workforce areas in each state, were conducted approximately one year apart, with the earliest of the Round 1 visits being conducted in December 2009 and the last of the Round 2 visits being conducted in April 2012.1 The following eight areas under the Recovery Act provisions focusing on the WIA...