Those who have followed the "progress" of
federal job training programs will not be surprised to learn that,
as Congress considers whether to re-authorize the Workforce
Investment Act, debate is focusing on the administrative structure
of WIA's various programs.
That's a mistake. We've tinkered around the edges of these programs
for decades, but we've never enacted effective reforms. And it
could be that this is because there are no reforms that will make
federal job training better.
You have to hand it to Congress for trying, though.
The Manpower Development and Training Act (MDTA) sought to fix the
mistakes of New Deal-era programs, such as the Works Progress
Administration and the Civilian Conservation Corps. The Economic
Opportunity Act of 1964 brought Job Corps and other measures
designed to improve on the MDTA. In 1973, the Comprehensive
Employment and Training Act (CETA) superseded all MDTA programs. In
1982, the Job Training Partnership Act (JTPA) changed the structure
of CETA to make it more flexible. By 1998, the need for another
administrative fix again had appeared, and Congress responded with
the WIA.
Unfortunately, none of the fixes and almost none of the programs
have done anything to significantly improve the lives of American
workers. That's because job training works best when individuals
pursue their own interests and when employers tailor their own
training programs to the needs of their companies. Employers say
they rarely reject applicants because of shortcomings in their
vocational training but regularly turn them away because they lack
basic reading, writing or math knowledge or "employability skills,"
such as reliable attendance and punctuality.
The data on job-training programs is famously unreliable. Much of
the research is fatally flawed by improper comparisons or
incomplete information. But even the studies that have been done
show that federal job-training programs add only a few hundred
dollars per year or less to the paychecks of the workers who
participate. That sounds good only to those who don't realize that
the per-participant cost of training through WIA programs can reach
$5,000 per participant per year. Job Corps, also up for
re-authorization under WIA, can top $21,000 per year.
In recent years, Congress has enacted various "reforms" designed to
increase the flexibility of these programs on the theory that local
people know the most about local needs. The WIA made two notable
"improvements" over the JTPA -- it allowed the use of vouchers to
create competition among employment and training service providers;
and they created one-stop-shops where applicants can find job
training, counseling and other services, including some not
administered by the Labor Department. There is no research to show
that WIA programs have had any impact. Participants receive the
same job search assistance, classroom training, on-the-job training
and other services as they did under JTPA.
WIA also required states and local governments to collect
performance data to demonstrate whether their approaches worked. By
collecting this data, Congress hoped the Labor Department would
hold the states responsible for their use of WIA funds -- those
that failed to meet expectations would lose funding, and those that
exceeded them would receive more. To this end, in 1998, Congress
required a full report from the Labor Department on WIA's three
block grant programs -- WIA Dislocated Workers, WIA Adults and WIA
Youth -- by September 2005.
Work on this report has not begun. However, another study, by the
Government Accountability Office, revealed that the job training
apparatus is up to many of its most infamous tricks. For instance,
in 2003, the local workforce boards set up to administer WIA
programs received $2.4 billion for adult and dislocated workers.
The GAO found that only $929 million of that -- about 40 percent --
went to training workers. The rest went to administrative
activities and other programs. Those activities and other programs
did not include tracking the progress of participants in the
various programs. The GAO says that 416,000 people received
training that year, but it admits this is only a guess. Some
workers may have been counted twice if they were enrolled in more
than one program, participant tracking is "incomplete and
unverified," and "little is known on a national level about the
outcomes of those being trained."
The Bush administration has proposed further reforms -- for
instance, it seeks to consolidate the adult training and
displaced-worker programs into a unified effort for adult workers.
But the administration signed off on more than $5 billion in
spending on WIA programs next year, despite having no evidence
these programs help anyone.
It's time to think beyond tinkering with the administration or
structure of these programs. We need to take an honest look at them
-- one bolstered by the research the Labor Department is required
by law to provide. And that research -- if competently and
truthfully done -- will lead, I believe, to one conclusion: that
the federal role in job training should be eliminated. If states
want to keep going, let them. But the feds have tried, and failed,
enough.
David
Muhlhausen is a senior research analyst in the
Center for Data Analysis at The Heritage
Foundation.
Distributed nationally on the Knight-Ridder Tribune wire