Workforce Development

Outcomes and Strategies

Despite the drawbacks pointed out by critics, the workforce system continues to play a critical role in helping workers garner skills to move into jobs or create entrepreneurial opportunities that may lead to economic security. Research has documented improved financial outcomes for WIA recipients. For example, a Department of Labor (DOL) analysis that followed participants who completed WIA programs remained positive over a two-year span. Specifically, the research found that as a result of WIA services, employment rates increased by about 10 percentage points and quarterly earnings by $800. In another example, Jobs for the Future research found that WIA employment and training programs generated higher earnings and employment rates reaching up to 15 percent annually while also providing a return of $1.50 for every dollar invested.

Funding from the WIA has helped employers promote and retain employees. In a case study conducted on customized training grants in New Jersey, the DOL found that training provided either would not have occurred or would have been far less comprehensive without the grant funds. The training grant assisted organizations in obtaining the resources and capacity necessary to provide training to employees. Finally, a report by the Center for Law and Social Policy cited a 2011 evaluation of Washington State workforce programs that revealed that adults and youth receiving WIA services had higher employment rates and higher earnings than nonparticipants.

One strategy on the rise in the workforce development system is sector partnerships. Sector partnerships are being used to address needs of businesses while bringing together other [Page 1003]stakeholders to develop skilled workers in targeted industries. More than conventional workforce development programs, sector partnerships utilize workforce intermediaries, organizations that have a deep understanding of worker and employer issues in an industry. Sector approaches can capitalize on strong regional and community partnerships, importantly bringing together colleges, universities, unions, public agencies, community-based organizations, and businesses to combine resources and address local workforce needs. A survey of graduates of six sector-initiative programs by Lily Zandnipour and Maureen Conway found that working participants' earnings rose an average of $8,580 during the program, $14,040 the year following, and $17,752 in the second year after completion.

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