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entitled 'Workforce Investment Act: Employers Are Aware of, Using, and 
Satisfied with One-Stop Services, but More Data Could Help Labor Better 
Address Employers' Needs' which was released on March 21, 2005. 

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Report to Congressional Requesters:

United States Government Accountability Office:

GAO:

February 2005:

Workforce Investment Act: 

Employers Are Aware of, Using, and Satisfied with One-Stop Services, 
but More Data Could Help Labor Better Address Employers' Needs:

GAO-05-259:

GAO Highlights:

Highlights of GAO-05-259, a report to congressional requesters: 

Why GAO Did This Study:

The economy of the United States is fueled by 8 million private sector 
businesses that employ 106 million of the nation’s 137 million workers. 
Employers are seeking better ways to meet their workforce needs as they 
compete in the global economy. This report examines (1) the extent to 
which employers, including small businesses, are aware of and using the 
one-stop system; (2) the degree to which employers who use one-stop 
services report satisfaction and what factors cause employers not to 
use them; and (3) what Labor has done to support employer awareness and 
use of the workforce system and how Labor measures its success in 
meeting the needs of employers.

What GAO Found:

While about half of all employers are aware of their local one-stops, 
awareness increases with employer size, with about half of small, two-
thirds of medium, and three-quarters of large employers knowing about 
their local one-stops. Similarly, of all employers aware of the one-
stops, about three-quarters of large employers are likely to use one-
stop services, while approximately one-half of medium and one-quarter 
of small employers are likely to do so. Employers of all sizes 
primarily use one-stop services to help fill job vacancies. 

Overall, about three-quarters of employers who use one-stop services 
are satisfied with the services they receive. These employers are most 
satisfied with one-stop efforts to provide timely services and respond 
to their needs. In addition, most employers who have used one-stop 
services would likely use them again, and about one-third of employers 
who are aware of one-stop services, but have not used them, would 
consider using them in the future. Among employers who are aware of one-
stop services, very few decline to use them because of concerns about 
the quality of services. Instead, many of these employers choose not to 
use one-stops because they rely on other resources to hire and train 
workers or do not have enough information about the services one-stops 
offer.

Labor has initiatives to support employer awareness and use of the one-
stop system but does not know the extent to which employers use the 
system. Labor has developed partnerships with businesses and industry 
to provide employers easier access to the resources of the one-stop 
system. To measure how the one-stop system is meeting the needs of 
employers, Labor requires states to collect information on employer 
satisfaction with the one-stop system, but not on employer use of the 
system. Labor’s employer satisfaction measure provides a high-level 
indicator of whether employers are satisfied with the one-stop services 
they receive; it does not, however, provide enough information on the 
services employers use to help Labor manage its resources. 

Percentage of Business Establishments Aware of, Using, and Satisfied 
With One-Stops: 

[See PDF for image]

[End of figure]

What GAO Recommends:

GAO recommends that the Secretary of Labor require states to collect 
and report on employer use of the workforce system. The Department of 
Labor agreed with our recommendation and said that it would be 
beneficial to understand the degree to which employers use the 
workforce system. 

www.gao.gov/cgi-bin/getrpt?GAO-05-259. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Sigurd Nilsen at (202) 
512-7215 or nilsens@gao.gov. 

[End of section]

Contents:

Letter:

Summary of Findings:

Large and Medium-Sized Employers Are More Likely than Small Employers 
to Know About and Use Their Local One-Stops and Other Resources of the 
Workforce System:

Most Employers Are Satisfied with One-Stop Services, and Few of Those 
Not Using Them Have Concerns about Service Quality:

Labor Has Taken Steps to Support Employer Awareness and Use of the One- 
Stop System but Lacks Data on Employer Usage:

Conclusions:

Recommendation for Executive Action:

Agency Comments:

Appendix I: Briefing Slides:

Appendix II: Objectives, Scope, and Methodology:

Appendix III: Additional Employer Survey Data:

Appendix IV: Comments from the Department of Labor:

Appendix V: GAO Contacts and Staff Acknowledgments:

GAO Contacts:

Staff Acknowledgments:

Related GAO Products:

Tables:

Table 1: Private Sector Business Establishments by Size:

Table 2: Two-Phase Business Establishment Sample by Size Category:

Table 3: States and Local Areas We Visited:

Table 4: Business Establishments Aware of One-Stops That Used Their 
Services:

Table 5: Primary Reason Business Establishments Aware of One-Stops Did 
Not Use Them:

Table 6: Hiring Resources Used by Business Establishments:

Figures:

Figure 1: Percentage of Business Establishments Aware of and Using One- 
Stops, by Employer Size:

Figure 2: Percentage of Business Establishments That Used One-Stop 
Service:

Abbreviations:

AAPOR: American Association for Public Opinion Research: 
ACSI: American Customer Satisfaction Index: 
AJB: America's Job Bank: 
BLS: Bureau of Labor Statistics: 
EMILEETA: Management Information and Longitudinal Evaluation: 
ETA: Employment and Training Administration: 
SIC: Standard Industrial Classification: 
WIA: Workforce Investment Act:

United States Government Accountability Office:

Washington, DC 20548:

February 18, 2005:

The Honorable Michael B. Enzi: 
Chairman: 
The Honorable Edward M. Kennedy: 
Ranking Minority Member: 
Committee on Health, Education, Labor, and Pensions: 
United States Senate:

The Honorable Patty Murray: 
Ranking Minority Member: 
Subcommittee on Employment and Workplace Safety: 
Committee on Health, Education, Labor, and Pensions: 
United States Senate:

The economy of the United States is fueled by 8 million private sector 
businesses that employ 106 million of the nation's 137 million workers. 
While most of these businesses employ fewer than 50 workers, the 
majority of workers are employed by larger businesses. Employers are 
seeking better ways to meet their workforce needs as they compete in 
the global economy. In 1998, the Workforce Investment Act (WIA) created 
a comprehensive workforce system, called the one-stop system, designed 
to help both job seekers and employers. WIA requires states and 
localities to bring together 17 federal programs and make their 
services available through about 1,900 one-stops nationwide. The total 
budget for these programs is about $15 billion in federal funding. The 
Department of Labor (Labor) is responsible for assessing the 
effectiveness of Labor-funded programs and providing guidance to states 
and localities on services delivered through the one-stops. WIA also 
requires that states report information to Labor on employer 
satisfaction with one-stop services. However, little is known about how 
well the services provided by the one-stops are helping employers find 
the workers they need. 

WIA increased the focus on the employer as a customer of the publicly 
funded workforce system and requires that employers constitute a 
majority of members on state and local workforce investment boards. 
These boards develop policy and provide oversight for the one-stops. 
The one-stops provide employers with services such as applicant 
screening, skill assessment, and training. The publicly funded 
workforce system also provides employers and job seekers with other 
resources, such as a national, online job openings database--called 
America's Job Bank--and labor market information such as current wage 
rates. 

Because of your interest in how well the workforce system is meeting 
the workforce needs of all employers, both large and small, we examined 
(1) the extent to which employers, including small businesses, are 
aware of and using the one-stop system; (2) the degree to which 
employers who use one-stop services report satisfaction and what 
factors cause employers not to use them; and (3) what Labor has done to 
support employer awareness and use of the workforce system and how 
Labor measures its success in meeting the needs of employers. 

To address these issues, we surveyed a nationally representative sample 
of private sector employers, surveyed state and local workforce 
officials, and visited four states and a total of eight one-stops 
within those states. For the employer survey, we obtained a sample of 
3,232 small, medium, and large private sector employers from a 
nationwide database of businesses. We surveyed employers between June 
and October 2004, and report on their use of one-stop services during 
the 12 months prior to the period when we surveyed them. We achieved a 
54 percent response rate after adjusting for cases that were ineligible 
for our study or whose eligibility could not be determined. We 
interviewed some of those that did not respond to our survey and found 
that their views did not differ substantially from the views of those 
that responded to our survey. Therefore, we are generalizing our survey 
results to all private sector business establishments in the United 
States.[Footnote 1] For this report, we considered individual business 
establishments with two or more workers as single employers. A business 
establishment is the physical location of a certain economic activity, 
for example, a factory, mine, store, or office. We chose to survey 
personnel at business establishments rather than corporate headquarters 
because they are more likely to be responsible for local hiring and 
training practices, such as use of one-stops. We divided these business 
establishments into size categories based on their number of employees. 
(See table 1.)

Table 1: Private Sector Business Establishments by Size:

Employer size: Small; 
Total number of employees: 49 or fewer; 
Average number of employees: 6. 

Employer size: Medium; 
Total number of employees: 50 to 499; 
Average number of employees: 118. 

Employer size: Large; 
Total number of employees: 500 or more; 
Average number of employees: 1,176. 

Source: Quarterly Census of Employment and Wages, Bureau of Labor 
Statistics, March 2003. 

[End of table]

Survey results that represent all private sector employers in the 
United States are heavily influenced by the results for small 
businesses because over 95 percent of all business establishments are 
small. However, medium and large business establishments employ a 
majority of the workforce, so we generally report the survey results 
for each employer size category separately. To determine what 
information states and local areas collect on services to employers, we 
surveyed all 50 states and 568 local workforce investment areas, and we 
received responses from all 50 states and 463 local areas (81.5 
percent). We selected 4 states--Florida, Michigan, Oklahoma, and 
Wyoming--based on their geographic dispersion and the diversity of 
their employment growth rates. In each state we visited 2 local areas-
-1 urban and 1 rural--and interviewed workforce officials and local 
employers. We interviewed officials from the Department of Labor, 
employer associations such as the U.S. Chamber of Commerce, and others. 

On January 27, 2005, we briefed your staff on the results of our work. 
This report summarizes the information we shared with your staff and 
transmits slides we used to brief your staff that day. (App. I contains 
these slides.) We conducted our work between October 2003 and January 
2005 in accordance with generally accepted government auditing 
standards. Appendix II provides further details about our scope and 
methodology. 

Summary of Findings:

While about half of all employers are aware of their local one-stops, 
awareness increases with employer size, with about half of small, two- 
thirds of medium, and three-quarters of large employers knowing about 
their local one-stops. Similarly, of all employers aware of the one- 
stops, about three-quarters of large employers are likely to use one- 
stop services, while approximately one-half of medium and one-quarter 
of small employers are likely to do so. Employers of all sizes 
primarily use one-stop services to help fill job vacancies. About three-
quarters of employers that used one-stops said that they are satisfied 
with the services they received, and 83 percent would consider using 
them again in the future. Labor has taken steps to support employer 
awareness and use of the system. However, it lacks data on employer 
usage. Because Labor collects little information on employers' use of 
the one-stops, the extent to which these services help employers is 
unknown, as is how these services could be more effectively targeted to 
meet employers' workforce needs. 

In this report, we are making a recommendation to the Secretary of 
Labor to require states to collect and report on employer use of the 
workforce system. In its comments on a draft of this report, Labor 
agreed with our recommendation and provided technical comments, which 
we included as appropriate. 

Large and Medium-Sized Employers Are More Likely than Small Employers 
to Know About and Use Their Local One-Stops and Other Resources of the 
Workforce System:

While about half of all employers are aware of their local one-stops, 
awareness levels increase with employer size, with about half of small, 
two-thirds of medium, and three-quarters of large employers knowing 
about their local one-stops. (See fig. 1.) Regardless of size, most 
employers learn about one-stops through word of mouth in the private 
sector. Moreover, large and medium employers are more likely than small 
employers to learn about one-stops from a one-stop official or 
government representatives. This may be because larger employers are 
more likely to hire workers. 

Figure 1: Percentage of Business Establishments Aware of and Using One- 
Stops, by Employer Size:

Aware; 
Small (2-49 employees): 48%; 
Medium (50-499 employees): 63%; 
Large (500 or more employees): 79%. 

Used; 
Small (2-49 employees): 21%; 
Medium (50-499 employees): 53%; 
Large (500 or more employees): 71%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

[End of figure]

Large and medium employers who know about one-stops are more likely 
than small employers to use their services. Of all employers aware of 
the one-stops, approximately three-quarters of large employers are 
likely to use one-stop services, while about one-half of medium and one-
quarter of small employers are likely to do so. As shown in figure 2, 
employers of all sizes generally use one-stop services to help fill job 
vacancies through posting job announcements and screening job 
applicants, with large employers being three to four times more likely 
than small employers to use these services. (See app. III for more 
information.) Small employers' lower rate of usage could be associated 
with their lower likelihood of hiring. Small employers are less likely 
than large and medium employers to have hired an employee in the 
previous year. In addition, few employers of any size are likely to 
access training services through one-stops. This is consistent with 
what most employers we interviewed on our site visits told us--they 
said they did the majority of their training internally. 

Figure 2: Percentage of Business Establishments That Used One-Stop 
Service:

Post job openings; 
Small (2-49 employees): 19%; 
Medium (50-499 employees): 49%; 
Large (500 or more employees): 65%. 

Screen job applicants; 
Small (2-49 employees): 10%; 
Medium (50-499 employees): 26%; 
Large (500 or more employees): 37%. 

Training services; 
Small (2-49 employees): 2%; 
Medium (50-499 employees): 4%; 
Large (500 or more employees): 14%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

[End of figure]

Awareness and use of two other resources of the workforce system-- 
America's Job Bank and labor market information funded by Labor--also 
vary by size of employer, with larger employers more likely than small 
employers to use them.[Footnote 2] While 56 percent of large employers 
are aware of the America's Job Bank Web site, 17 percent of small 
employers are aware of this resource. Likewise, large employers are 
about twice as likely as small employers to be aware of labor market 
information funded by Labor (74 percent versus 40 percent). In 
addition, large and medium employers are significantly more likely than 
small employers to use both of these resources. According to Labor, 
employers use the America's Job Bank Web site to find prospective 
employees, and they use labor market information to learn about 
employment trends and wages. Several employers we interviewed on our 
site visits said they used labor market information on current wage 
rates in order to comply with wage laws or to set compensation rates. 

Most Employers Are Satisfied with One-Stop Services, and Few of Those 
Not Using Them Have Concerns about Service Quality:

The vast majority of employers who use one-stop services are satisfied 
with them; particularly, they express satisfaction with the timeliness 
of services and the extent to which services address their needs. In 
addition, most employers who use one-stop services would likely use 
them again, and about one-third of employers who are aware of one-stop 
services but do not use them would consider using them in the future. 
Among employers who are aware of one-stop services, very few decline to 
use them because of concerns about the quality of services. Instead, 
many of these employers choose not to use one-stops because they rely 
on other resources to hire and train workers or do not have enough 
information about the services one-stops offer. 

Most Employers Are Satisfied with One-Stop Services:

Overall, about 78 percent of employers in the United States who have 
used one-stops are satisfied with the services they received. These 
employers are most satisfied with one-stop efforts to provide timely 
services and respond to their needs. Most employers we interviewed on 
our site visits also expressed satisfaction with one-stop services, and 
some pointed to cost and time savings as the primary benefit of using 
one-stops. For example, one employer said that because one-stop staff 
selected qualified applicants using the company's own screening 
criteria, the company saved a lot of time. Furthermore, our survey 
showed that the majority of employers who use one-stop services would 
consider using them in the future, and a majority would also recommend 
one-stop services to another businessperson. Eighty-three percent of 
employers who use one-stops said they are willing to consider using one-
stops in the future, and this proportion does not vary much by employer 
size. Similarly, about three-quarters of employers who use one-stops 
are willing to recommend one-stop services to other businesses. 
Furthermore, about one-third of employers who are aware of one-stop 
services but have not used them would consider using them in the 
future. 

Most Employers Not Using One-Stop Services Give Reasons Other than 
Concerns about Quality of Services:

Of those employers who are aware of but not using one-stop services, 
very few (3 percent), had concerns about service quality. The most 
common reason employers did not use one-stop services was that they 
primarily use other resources to hire and train workers--this was true 
for all employer size categories. About 21 percent of employers chose 
not to use one-stops because they lacked information about their 
services. In addition, several employers we interviewed on our site 
visits said that although they were aware of one-stops, they did not 
know about the breadth of services they offered. Nearly all employers 
we interviewed on our site visits thought that one-stops should try to 
increase general awareness of one-stops among employers. 

Labor Has Taken Steps to Support Employer Awareness and Use of the One- 
Stop System but Lacks Data on Employer Usage:

Labor has initiatives to support employer awareness and use of the one- 
stop system but does not know the extent to which employers use the 
system. Labor has developed partnerships with businesses and industry 
to provide employers easier access to the resources of the one-stop 
system. To measure how the one-stop system is meeting the needs of 
employers, Labor requires states to collect information on employer 
satisfaction with the one-stop system but not on employer use of the 
system. Labor's employer satisfaction measure provides a high-level 
indicator of whether employers are satisfied with the one-stop services 
they receive. It does not, however, provide enough information on the 
services employers use to help Labor manage its resources. 

Labor Has Initiatives to Support Employer Awareness and Use of the One- 
Stop System:

Labor has developed a number of initiatives to support employer 
awareness and use of the one-stop system but has limited information 
about the extent to which employers use the system. Labor established 
its Partnerships for Jobs Initiative with 23 large, multistate 
employers, including the Home Depot and Citigroup, to provide better 
access to the resources of the approximately 1,900 one-stops 
nationwide. This initiative helps employers learn about state and local 
workforce resources provided through the one-stop system. Through its 
ongoing High-Growth Training Initiative, Labor has also directed more 
than $92 million, as of June 2004, to public-private partnerships in 
which growing industries work with education and training providers to 
ensure that workers get the skills they need to compete in growing 
fields like biotechnology and high-tech manufacturing. In addition, 
Labor provided a $1.6 million grant to a seven-state consortium to 
develop model outreach strategies for marketing one-stop services to 
employers. 

Labor has identified various ways to measure the success of these 
initiatives, such as hiring rates and expansion of services. For 
example, through its Partnership for Jobs initiative, the 23 national 
employers have hired approximately 15,000 individuals through the one- 
stop system as of June 2004. Through its High-Growth Job Training 
Initiative, Labor has identified workforce solutions, such as expanding 
the pipeline of youth entering high-growth industries and enhancing the 
capacity of educational institutions to train students in industry- 
defined competencies. 

Labor Requires Collection of Information on Overall Employer 
Satisfaction but Not on Employer Use of One-Stop Services:

To measure the success of the one-stops in meeting employer workforce 
needs, Labor requires states to report on employers' overall 
satisfaction with one-stop services, but not on their use of these 
services. Labor requires that states conduct quarterly telephone 
surveys of employers to obtain information on their overall 
satisfaction with the services provided by the one-stops. Each state 
negotiates with Labor to set its own goal for employer customer 
satisfaction.[Footnote 3] Because of the general nature of the employer 
satisfaction measure, it has limited usefulness to Labor for management 
of its one-stop system resources. Moreover, usage information, such as 
the number of employers using one-stop services, is not available to 
Labor because it does not require that states collect information on 
employers' use of one-stop services. 

Labor recognizes that the satisfaction measure provides only general 
information and that there is a need for more information than the 
employer satisfaction measure provides. Labor's Employment and Training 
Administration (ETA) has proposed a new data collection and reporting 
system called the ETA Management Information and Longitudinal 
Evaluation (EMILE) to, among other things, obtain more detailed 
information about employers' use of one-stop services. Labor's proposed 
reporting system would require states to collect specific employer- 
related information, such as the characteristics of the employers and 
the services they use. However, Labor is in the process of responding 
to public comments on the proposal and has not yet finalized its 
implementation plans. 

Many Local Areas Collect Information on Employer Use of One-Stop 
Services, but Most States Do Not Track This Type of Information:

While many local areas track their own measures of how one-stops serve 
employers, this information is not reported to most states or Labor. At 
least half of the local areas track such measures as the number of 
employers that use one-stop services, the type of services that 
employers use, and the number of employers that hire one-stop job 
seekers. While this type of information allows local areas to better 
manage their resources to respond to the changing needs of their 
employer clients, information on employer usage is not communicated to 
most states or Labor. 

Relatively few states require local workforce areas to report on 
employer measures, such as the number of employers they serve and the 
number that hire one-stop job seekers. For example, about one-third of 
all states require local areas to report on the number of employers 
that use their services, while 11 states track the type of one-stop 
services that employers use. Because states are currently not required 
by Labor to collect this type of information, it is unavailable at the 
state and federal level to help them manage federal workforce 
resources. 

Conclusions:

The federal government currently invests in a workforce system with 
multiple programs to help workers find jobs, and to help employers find 
the workers they need. We found that large numbers of employers know 
about, use, and are satisfied with their local one-stops. While Labor 
has taken steps to support employer awareness and use of the system, it 
collects little information on employers' use of the workforce system. 
Although many local areas and some states collect information on 
employer use of the one-stop system to manage their resources, this 
information is not reported to Labor. Collecting employer information 
involves additional effort for states and local areas but enhances 
their ability to manage their resources. Without this information on 
employer use of the one-stop system, Labor cannot identify whether or 
not state and local programs are responding to the needs of employers 
and what types of services best meet employers' workforce needs. As a 
result, Labor does not have the information necessary to identify areas 
where additional employer assistance may be needed or to design a 
strategy for effectively targeting limited workforce funds. 

Recommendation for Executive Action:

To ensure that Labor has a better understanding of the degree to which 
the publicly funded workforce system meets employers' needs, we 
recommend that the Secretary of Labor require states to collect and 
report on employer use of the one-stop system in addition to continuing 
to collect general employer satisfaction information. 

Agency Comments:

We provided officials at the Department of Labor an opportunity to 
comment on a draft of this report. Formal comments appear in appendix 
IV. 

Labor agreed with our findings and recommendation that the Secretary of 
Labor require states to collect and report on employer use of the one- 
stop system to better understand the degree to which the system is 
meeting the needs of employers. Labor stated that one component of its 
proposed revised reporting system would collect information on 
employers' use of one-stop services. However, the agency continues to 
reconcile comments on its proposed reporting system and to determine 
its feasibility. 

As agreed with your offices, unless you publicly announce its contents 
earlier, we plan no further distribution of this report until 30 days 
from its date. At that time, we will send copies of this report to the 
Secretary of Labor, appropriate congressional committees, and other 
interested parties. In addition, the report will be available at no 
charge on GAO's Web site at http://www.gao.gov. 

A list of related GAO products is included at the end of this report. 
If you or your staff have any questions about this report, please 
contact me at (202) 512-7215 or Joan Mahagan, Assistant Director, at 
(617) 788-0521. You may also reach us by e-mail at nilsens@gao.gov or 
mahaganj@gao.gov. Other contacts and staff acknowledgments are listed 
in appendix V. 

Signed by: 

Sigurd R. Nilsen: 
Director, Education, Workforce, and Income Security Issues:

[End of section]

Appendix I: Briefing Slides:

Employer Awareness, Use, and Satisfaction with the Workforce System:

Briefing to Congressional Requesters: 

January 27, 2005:

Objectives:

* To what extent are employers, including small businesses, aware of 
and using the one-stop system?

* To what degree do employers who use one-stop services report 
satisfaction, and what factors cause employers not to use them?

* What has the Department of Labor (Labor) done to support employer 
awareness and use of the workforce system and how does Labor measure 
its success in meeting the needs of employers?

Methodology--Definitions:

* Employers are private sector business establishments with at least 
two employees. 

* A business establishment is the physical location of a certain 
economic activity, such as a factory, mine, store, or office. For 
example, the Home Depot is a large national business with multiple 
store locations nationwide. For our study, each store counted 
separately as an employer. 

* We chose to survey personnel at individual business establishments 
rather than corporate headquarters because these employers are more 
likely than headquarters staff to be responsible for local hiring and 
training practices, such as use of one-stops. 

* We defined the size of employers by their number of employees: small: 
2-49, medium: 50-499, and large: 500 or more. 

We focused on:

* one-stop centers: all services provided to employers through one-stop 
career centers, including services such as applicant screening, skills 
assessment, and training;

* America's Job Bank (AJB): an employment Web site; and:

* labor market information funded by Labor, such as current wage rates. 

Methodology--Surveys:

For our employer survey, we obtained a sample of 3,232 small, medium, 
and large private sector employers from a nationwide database of 
businesses and generalized our survey results to all private sector 
business establishments in the United States. 

* We achieved a 54 percent response rate after adjusting for cases that 
were ineligible for our study or whose eligibility could not be 
determined. 

* We interviewed some of those that did not respond to our survey and 
found that their views did not differ substantially from the views of 
those that responded to our survey. 

* We surveyed employers between June and October 2004. We report on 
their use of one-stop services during the 12 months prior to the period 
when we surveyed them. 

* For more details about our survey methods and the limitations to the 
survey, see appendix II. 

Note: Sampling errors for estimates presented in this report do not 
exceed 9 percentage points unless related to employer satisfaction or 
reasons for not using one-stop services, in which case, they do not 
exceed 15 percentage points. Specific sampling errors are noted on 
pages 22-29. 

* We surveyed states and local workforce investment areas about their 
collection of information on services to employers. 

* We received responses from all 50 states and 463 of the 568 local 
workforce investment areas (81.5 percent). 

Methodology--Site Visits:

* We visited four states, based on diverse geography and varying 
employment growth rates: Florida, Michigan, Oklahoma, and Wyoming. 

* In each state, we visited urban and rural areas and interviewed 
workforce officials and employers of various size that had either used 
or not used their local one-stops. 

* We interviewed Labor officials about their efforts to support 
employer awareness and use of the workforce system and reviewed related 
documentation. 

* We interviewed representatives from employer associations, such as 
the U.S. Chamber of Commerce and others. 

Summary of Findings:

* While about half of all employers are aware of their local one-stops, 
awareness and use increases with employer size. Of all employers aware 
of the one-stops, about one-quarter of small employers are likely to 
use one-stop services, while approximately one-half of medium and three-
quarters of large employers are likely to do so. 

* About three-quarters of employers that used one-stops said that they 
are satisfied with the services they received, and 83 percent would 
consider using them again in the future. 

* Labor has taken steps to support employer awareness and use of the 
system. However, it lacks data on employer usage. Because Labor 
collects little information on employers' use of the one-stops, the 
extent to which these services help employers is unknown. 

Background:

* The Workforce Investment Act (WIA) of 1998 led to the creation of a 
more streamlined publicly funded workforce system and increased the 
focus on the employer as a customer. 

* WIA requires states and localities to bring together 17 federal 
programs and make their services available through about 1,900 one-
stops nationwide. 

* Labor is responsible for assessing the effectiveness of Labor-funded 
programs and providing guidance to states and localities on services 
delivered through the one-stops. 

* WIA requires that states collect data on 17 performance measures. 
Only one measure deals with employers; it gauges their overall 
satisfaction with one-stop services. 

Background (cont.): 

The vast majority of business establishments are small businesses, but 
large and medium employers have a majority of workers. 

Private sector business establishments in the United States by size:

Business establishment size: Small (49 or fewer employees); 
Percentage of private sector business establishments (8 million): 95%; 
Percentage of private sector employment (106 million): 43%; 
Average number of employees per business establishment: 6. 

Business establishment size: Medium (50-499 employees); 
Percentage of private sector business establishments (8 million): 4%; 
Percentage of private sector employment (106 million): 39%; 
Average number of employees per business establishment: 118. 

Business establishment size: Large (500 or more employees); 
Percentage of private sector business establishments (8 million): <1%; 
Percentage of private sector employment (106 million): 18%; 
Average number of employees per business establishment: 1,176. 

Source: Quarterly Census of Employment and Wages, Bureau of Labor 
Statistics, March 2003. 

Note: These data cover about 97 percent of jobs on nonfarm payrolls. 
Jobs not covered by unemployment insurance are not included, e.g., some 
agricultural employees and self-employed workers. 

[End of table]

Large and medium employers are more likely than small employers to be 
aware of and using one-stops. 

Percentage of business establishments aware of and using one-stops: 

Aware; 
Small (2-49 employees): 48%; 
Medium (50-499 employees): 63%; 
Large (500 or more employees): 79%. 

Used; 
Small (2-49 employees): 21%; 
Medium (50-499 employees): 53%; 
Large (500 or more employees): 71%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Sampling errors for estimates presented on this page do not 
exceed 6 percentage points. 

[End of figure]

Employers mostly use one-stops for hiring services rather than 
training, and large and medium employers are more likely to use hiring 
services. 

Percentage of business establishments that used one-stop service 
(employers aware of one-stops):

Post job openings; 
Small (2-49 employees): 19%; 
Medium (50-499 employees): 49%; 
Large (500 or more employees): 65%. 

Screen job applicants; 
Small (2-49 employees): 10%; 
Medium (50-499 employees): 26%; 
Large (500 or more employees): 37%. 

Training services; 
Small (2-49 employees): 2%; 
Medium (50-499 employees): 4%; 
Large (500 or more employees): 14%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Notes: Percentages may total to more than 100 because employers may 
have used more than one service. Sampling errors for estimates 
presented on this page do not exceed 6 percentage points. 

[End of figure]

Large and medium employers are more likely than small employers to know 
about and use America's Job Bank. 

Percentage of business establishments aware of and using America's Job 
Bank Web site: 

Aware; 
Small (2-49 employees): 17%; 
Medium (50-499 employees): 26%; 
Large (500 or more employees): 56%. 

Used; 
Small (2-49 employees): 9%; 
Medium (50-499 employees): 46%; 
Large (500 or more employees): 51%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Sampling errors for estimates presented on this page do not 
exceed 9 percentage points. 

[End of figure]

Large employers are more likely than small employers to know about and 
use labor market information. 

Percentage of business establishments aware of and using labor market 
information:

Aware; 
Small (2-49 employees): 40%; 
Medium (50-499 employees): 53%; 
Large (500 or more employees): 74%. 

Used; 
Small (2-49 employees): 45%; 
Medium (50-499 employees): 64%; 
Large (500 or more employees): 71%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Sampling errors for estimates presented on this page do not 
exceed 8 percentage points. 

[End of figure]

The vast majority of employers using one-stop services, regardless of 
size, are satisfied with them. 

Percentage of business establishments satisfied with one-stop services:

Small (2-49 employees): 78%; 
Medium (50-499 employees): 75%; 
Large (500 or more employees): 79%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Sampling errors for estimates presented on this page do not 
exceed 12 percentage points. 

[End of figure]

Employers are most satisfied with one-stops' timeliness and 
responsiveness to their needs. 

Percentage of business establishments satisfied with three aspects of 
one-stop service delivery:

Timely service; 
Small (2-49 employees): 70%; 
Medium (50-499 employees): 76%; 
Large (500 or more employees): 84%. 

Response to needs; 
Small (2-49 employees): 76%; 
Medium (50-499 employees): 73%; 
Large (500 or more employees): 78%. 

Referral of qualified applicants; 
Small (2-49 employees): 47%; 
Medium (50-499 employees): 57%; 
Large (500 or more employees): 64%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Notes: These percentages are for those who have used one-stop services. 
Sampling errors for estimates presented on this page do not exceed 15 
percentage points. 

[End of figure]

Most employers who have used one-stop services would consider using 
them again. 

Percentage of business establishments that would consider using one-
stop services in the future or recommend them to another businessperson 
(employers who used one-stop services):

Would consider using one-stops in the future; 
Small (2-49 employees): 83%; 
Medium (50-499 employees): 88%; 
Large (500 or more employees): 84%. 

Would recommend one-stop to another businessperson; 
Small (2-49 employees): 77%; 
Medium (50-499 employees): 78%; 
Large (500 or more employees): 76%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Sampling errors for estimates presented on this page do not 
exceed 12 percentage points. 

[End of figure]

Most employers not using one-stop services use other resources or do 
not know enough about services; few are concerned about quality of 
services. 

Primary reason business establishments aware of one-stops did not use 
them (in percentages):

Reason: Used other resources; 
Small: 48; 
Medium: 69%; 
Large: 52%; 
All establishments: 49%. 

Reason: Did not know enough about services; 
Small: 22%; 
Medium: 12%; 
Large: 23%; 
All establishments: 21%. 

Reason: Did not hire or train any employees in thelast 12 months; 
Small: 15%; 
Medium: 7%; 
Large: 6%; 
All establishments: 15%. 

Reason: Had concerns about quality of services; 
Small: 3%; 
Medium: 5%; 
Large: 6%; 
All establishments: 3%. 

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Notes: These data do not add up to 100 percent because we excluded 
responses in which employers selected "don't know" or "other" when 
asked why they do not use one-stops. Sampling errors for estimates 
presented on this page do not exceed 10 percentage points. 

[End of table]

Labor has taken steps to support employer awareness and use of the 
system, but lacks data on employer usage. 

* Labor has initiatives to support employer awareness and use of the 
one-stop system. 

* Labor requires states to collect information on overall employer 
satisfaction with one-stop services, but not on employer use of one-
stop services. 

* Many local areas collect information on employer use of one-stop 
services, but most states do not track this type of information. 

Labor has initiatives to support employer awareness and use of the one-
stop system. 

* Labor has established its Partnerships for Jobs Initiative with 23 
nationwide employers-including the Home Depot and Citigroup-to provide 
these employers better access to the one-stop system. 

* Through its High-Growth Job Training Initiative, Labor has directed 
more than $92 million to public-private partnerships in which growing 
industries work with education and training providers to ensure that 
workers get the skills they need to compete in emerging fields like 
biotechnology and high-tech manufacturing. 

* Labor has provided a $1.6 million grant to a seven-state consortium 
to develop model strategies for marketing one-stop services to 
employers. 

Labor does not require states to report on employer use of the 
workforce system. 

* Labor requires states to report on employer satisfaction with one-
stop services, but not on their use of these services. 

* The general employer satisfaction measure has limited usefulness as a 
management tool because it lacks detailed information about employers 
and the services they use. 

* Labor has proposed a new data collection and reporting system, called 
the ETA Management Information and Longitudinal Evaluation (EMILE), 
which would, among other things, provide more detailed information 
about employers' use of one-stop services. 

* Implementation of the EMILE system has been delayed as Labor responds 
to public comments on its proposal. 

Many local areas collect information on employer use of one-stop 
services, but most states do not track this type of information. 

* At least half of all local areas track some information on employers, 
such as the number of employers that use one-stop services, the number 
that hire one-stop jobseekers, and the types of one-stop services they 
use. 

* Currently, about one-third of states require local workforce areas to 
report on the number of employers that use their services, while 11 
states track the type of services that employers use. 

* At least half of all local workforce areas track employer 
information. 

* Local workforce areas' tracking of employer information on use of one-
stops:

Employer information tracked by local areas: Number of employers that 
use one-stop services; 
Percentage of all areas: 61%. 

Employer information tracked by local areas: Number of employers that 
hire one-stop job seekers; 
Percentage of all areas: 50%. 

Employer information tracked by local areas: Type of one-stop services 
that employers use; 
Percentage of all areas: 50%. 

Employer information tracked by local areas: Number of employers that 
repeatedly use one-stop services; 
Percentage of all areas: 42%. 

Employer information tracked by local areas: Characteristics of 
employers (size, industry sector, etc.); 
Percentage of all areas: 31%. 

Source: GAO survey of local areas. 

[End of table]

Conclusions:

* The federal government currently invests in a workforce system with 
multiple programs to help workers find jobs, and to help employers find 
the workers they need. 

* We found that about half of all employers are aware of their local 
one-stops, and large and medium-sized employers are more likely than 
small employers to use one-stop services. 

* The vast majority of employers that use the one-stops report 
satisfaction with the services they receive, and the most common 
reasons employers aware of one-stops do not use them is because they 
use other resources to hire workers or do not know enough about one-
stop services. 

* Although most local areas collect information on employer use of the 
one-stop system to manage their resources, this information is not 
reported to Labor. 

* Without this information on employer use of the one-stop system, 
Labor cannot identify whether or not state and local programs are 
responding to the needs of employers and what types of services best 
meet employers' workforce needs. 

* As a result, Labor does not have the information necessary to 
identify areas where additional employer assistance may be needed or to 
design a strategy for effectively targeting limited workforce funds. 

Recommendation:

To ensure that Labor has a better understanding of the degree to which 
the publicly funded workforce system meets employers' needs, we 
recommend that the Secretary of Labor require states to collect and 
report on employer use of the workforce system in addition to 
continuing to collect general employer satisfaction information. 

[End of slide presentation] 

[End of section]

Appendix II: Objectives, Scope, and Methodology:

We examined (1) the extent to which employers, including small 
businesses, are aware of and using the one-stop system; (2) the degree 
to which employers who use one-stop services report satisfaction and 
what factors cause employers not to use them; and (3) what Labor has 
done to support employer awareness and use of the workforce system and 
how Labor measures its success in meeting the needs of employers. To 
address these questions, we surveyed a nationally representative sample 
of private sector employers, surveyed states and local areas, 
interviewed officials from the Department of Labor and employer 
associations, reviewed relevant studies, and visited four states and 
two local areas within each state. 

Employer Survey:

To determine the extent to which employers are aware of and using the 
workforce system and their satisfaction with the one-stop services they 
received, we surveyed a nationally representative sample of employers. 
We developed a questionnaire and contracted with Opinion Research 
Corporation, a national public opinion research firm, to conduct a 
telephone survey of a stratified random sample of all sizes of private 
sector business establishments in the United States. We divided these 
business establishments into groups depending on their number of 
employees (small: 2-49 employees, medium: 50-499 employees, and large: 
500 or more employees). Before calling began, an independent reviewer 
within GAO reviewed the questionnaire, and we pretested the survey with 
two businesses. 

Opinion Research Corporation attempted to contact 3,232 business 
establishments between July and October 2004 and completed 1,356 
interviews.[Footnote 4] The overall response rate to the survey was 54 
percent after taking into account out-of-scope cases and cases whose 
eligibility could not be determined. The response rate for each 
employer size category is as follows: small and unknowns, 50 percent; 
medium, 53 percent; and large, 60 percent. Response rates were 
calculated using the American Association for Public Opinion Research 
(AAPOR) response rate three method of calculation. Although we do not 
know the views of all the remaining business establishments that did 
not respond to our survey, we did some limited interviewing and found 
that their views did not differ substantially from the views of those 
that responded to our survey. We attempted to contact 183 of these 
nonrespondents and completed a short interview with 27 of them. 

We purchased the sample from infoUSA, a national provider of business 
addresses and phone numbers. InfoUSA's database contained approximately 
11.3 million relevant business establishments. We conducted routine 
steps, such as document review and interviews with officials, to 
examine the reliability of the infoUSA data for our purposes. To 
provide us with the sample, infoUSA conducted a stratified random 
sample selection process that we specified. InfoUSA completed this 
process in two phases. This process allowed for a sample of all sizes 
of private sector business establishments in the United States. We 
forwarded contact information for 3,232 of these sampled business 
establishments to Opinion Research Corporation for the survey. (See 
table 2.)

Table 2: Two-Phase Business Establishment Sample by Size Category:

May 2004; 
Small (2-49 employees): 850; 
Medium (50-499 employees): 850; 
Large (500 or more employees): 850; 
Unknown number of employees: 100; 
Total: 2,650. 

July 2004; 
Small (2-49 employees): 74; 
Medium (50-499 employees): 94; 
Large (500 or more employees): 94; 
Unknown number of employees: 320; 
Total: 582. 

Total; 
Small (2-49 employees): 924; 
Medium (50-499 employees): 944; 
Large (500 or more employees): 944; 
Unknown number of employees: 420; 
Total: 3,232. 

Source: GAO. 

[End of table]

We chose to survey business establishments (as opposed to corporate 
headquarters) because personnel at the establishments are more likely 
than headquarters staff to be responsible for their business' local 
hiring and training practices, such as use of one-stops. We used the 
Bureau of Labor Statistics (BLS) definition of business establishment: 
the physical location of a certain economic activity, for example, a 
factory, mine, store, or office. To qualify for inclusion in our 
sample, the establishment must have had at least two or more employees 
and must also have been engaged in a commercial enterprise. Using four- 
digit Standard Industrial Classification (SIC) code designations, we 
excluded religious, governmental, and academic institutions from the 
sample because they are not primarily engaged in commercial 
enterprise.[Footnote 5] We noted that religious organizations that have 
a primary business as a nonprofit enterprise (such as a social service 
provider) would be identified as such on the basis of the SIC code 
associated with the listing. We noted that the schools and universities 
were classified as public sector for some of Labor's BLS employment 
reports and decided to use this approach for our employer sample. We 
excluded single-employee businesses, assuming they have not hired 
additional employees. 

In addition to survey nonresponse, the practical difficulties of 
conducting any survey may introduce other types of errors, commonly 
referred to as nonsampling errors. For example, differences in how a 
particular question is interpreted, the sources of information 
available to respondents in answering a question, or the types of 
people who do not respond can introduce unwanted bias into the survey 
results. We included steps in the development of the survey, the 
collection of data, and the editing and analysis of data for the 
purpose of minimizing such nonsampling error. For example, in cases 
where an employer gave an answer other than the choices provided, we 
reviewed, verified, and then categorized each answer. Another type of 
nonsampling error that exists in this survey is coverage error. The 
infoUSA listing was used as a proxy listing for private sector business 
establishments. We are aware that coverage error exists in this 
database but we cannot quantify the amount of this error. 

State and Local Area Surveys:

To determine what information states and local areas collect on 
services to employers, we surveyed all 50 states and all 568 local 
workforce investment areas. We conducted both surveys using the 
Internet. We received responses from all 50 states and 463 local areas 
(81.5 percent). Because these were not sample surveys, there are no 
sampling errors. However, the practical difficulties of conducting any 
survey may introduce nonsampling errors. We took steps in the 
development of the questionnaires, the data collection, and data 
analysis to minimize these nonsampling errors. For example, we 
pretested the questionnaires to ensure that questions were clear and 
understandable. In that these were Web-based surveys whereby 
respondents entered their responses directly into our database, there 
was little possibility of data entry error. In addition, we verified 
that the computer programs used to analyze the data were written 
correctly. 

Site Visits:

We selected four states--Florida, Michigan, Oklahoma, and Wyoming--and 
traveled to at least two local areas in each of these states. We 
selected these states based on their geographic dispersion and the 
diversity of their employment growth rates. We chose two states that 
had relatively high employment growth rates (Florida and Wyoming) and 
two states that had relatively high employment loss rates (Oklahoma and 
Michigan). In each state we visited two local areas, one urban and one 
rural, and interviewed workforce officials and local employers. We 
interviewed local employers of various sizes based on their number of 
employees: small (2-49), medium (50-499), and large (500 or more). See 
table 3 for a list of the states and local areas in our study. 

Table 3: States and Local Areas We Visited:

State: Florida; 
Local boards: Citrus Levy Marion Regional Workforce Development Board, 
Inc. (Ocala); 
One-stop center: One Stop Workforce Connection (Crystal River). 

State: Florida; 
Local boards: Workforce Central Florida (Lake Mary); 
One-stop center: Orange County One-Stop Career Center (Orlando). 

State: Michigan; 
Local boards: Area Community Services Employment and Training Council 
(Grand Rapids); 
One-stop center: Michigan Works! Service Center--Leonard (Grand 
Rapids). 

State: Michigan; 
Local boards: Kalamazoo/St. Joseph Workforce Development Board 
(Kalamazoo); 
One-stop center: Michigan Works! Service Center--Employment and 
Training Connections (Three Rivers). 

State: Oklahoma; 
Local boards: Eastern Workforce Investment Board, Inc. (Muskogee); 
One-stop center: Workforce Oklahoma--Tahlequah Center (Tahlequah). 

State: Oklahoma; 
Local boards: Tulsa Area Workforce Investment Board, Inc. (Tulsa); 
One-stop center: Workforce Oklahoma--Downtown Tulsa Career Center 
(Tulsa). 

State: Wyoming; 
Local boards: None. [Note: Wyoming has one state workforce board that 
oversees all one-stops]; 
One-stop center: Cheyenne Workforce Center (Cheyenne) Torrington 
Workforce Center (Torrington). 

Source: GAO. 

[End of table]

Information that we gathered on our site visits represents only the 
conditions present in the local areas at the time of our site visits, 
from May 2004 through August 2004. Furthermore, our fieldwork focused 
on in-depth analysis of only a few selected states and local areas or 
sites. On the basis of our site visit information, we cannot generalize 
our findings beyond the local areas we visited. 

[End of section]

Appendix III: Additional Employer Survey Data:

Table 4: Business Establishments Aware of One-Stops That Used Their 
Services:

In percentages. 

Service category: Post job openings; 
Small: 19%; 
Medium: 49%; 
Large: 65%; 
All employers: 21%. 

Service category: Screen job applicants; 
Small: 10%; 
Medium: 26%; 
Large: 37%; 
All employers: 11%. 

Service category: Obtain information on employee supports (e.g., child 
care or transportation); 
Small: 3%; 
Medium: 4%; 
Large: 8%; 
All employers: 3%. 

Service category: Obtain financial information (e.g., loans, grants, or 
tax benefits); 
Small: 2%; 
Medium: 8%; 
Large: 21%; 
All employers: 3%. 

Service category: Training; 
Small: 2%; 
Medium: 4%; 
Large: 14%; 
All employers: 2%. 

Service category: Assistance with business' downsizing; 
Small: 1%; 
Medium: 4%; 
Large: 12%; 
All employers: 1%. 

[End of table]

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Percentages may total to more than 100 because employers may have 
used more than one service. 

Table 5: Primary Reason Business Establishments Aware of One-Stops Did 
Not Use Them):

In percentages. 

Reason: Used other resources; 
Small: 48%; 
Medium: 69%; 
Large: 52%; 
All employers: 49%. 

Reason: Did not know enough about services; 
Small: 22%; 
Medium: 12%; 
Large: 23%; 
All employers: 21%. 

Reason: Did not hire or train any employees in the last 12 months; 
Small: 15%; 
Medium: 7%; 
Large: 6%; 
All employers: 15%. 

Reason: Had concerns about quality of services; 
Small: 3%; 
Medium: 5%; 
Large: 6%; 
All employers: 3%. 

Reason: Location is not convenient; 
Small: 3%; 
Medium: 2%; 
Large: <1%; 
All employers: 3%. 

Reason: Had concerns about one-stop organizational structure or 
administrative processes; 
Small: < 1%; 
Medium: 2%; 
Large: 2; 
All employers: < 1%. 

[End of table]

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: These data do not add up to 100 percent because we excluded 
responses in which employers selected "don't know" or "other" when 
asked why they do not use one-stops. 

Table 6: Hiring Resources Used by Business Establishments:

In percentages. 

Sources to hire employees: Referrals; 
Small: 84%; 
Medium: 93%; 
Large: 94%; 
All employers: 85%. 

Sources to hire employees: Television, radio, or newspaper 
advertisements; 
Small: 42%; 
Medium: 67%; 
Large: 82%; 
All employers: 44%. 

Sources to hire employees: Educational institutions; 
Small: 28%; 
Medium: 45%; 
Large: 74%; 
All employers: 30%. 

Sources to hire employees: Recruiting firms or temporary agencies; 
Small: 20%; 
Medium: 41%; 
Large: 73%; 
All employers: 22%. 

Sources to hire employees: Private Internet services; 
Small: 15%; 
Medium: 35%; 
Large: 69%; 
All employers: 16%. 

Sources to hire employees: Public Internet services; 
Small: 11%; 
Medium: 25%; 
Large: 46%; 
All employers: 12%. 

Sources to hire employees: One-stop services; 
Small: 10%; 
Medium: 28%; 
Large: 47%; 
All employers: 12%. 

Sources to hire employees: Job fairs; 
Small: 10%; 
Medium: 31%; 
Large: 62%; 
All employers: 11%. 

Sources to hire employees: Walk-ins; 
Small: 5%; 
Medium: 7%; 
Large: 3%; 
All employers: 5%. 

Sources to hire employees: Internal postings and company Web site; 
Small: 1%; 
Medium: 2%; 
Large: 7%; 
All employers: 1%. 

[End of table]

Source: GAO 2004 survey of private sector business establishments in 
the United States. 

Note: Percentages may total to more than 100 because employers may have 
used more than one resource. 

[End of section]

Appendix IV: Comments from the Department of Labor:

U.S. Department of Labor: 
Assistant Secretary for Employment and Training: 
Washington, D.C. 20210:

FEB 8 2005:

Mr. Sigurd R. Nilsen: 
Director:
Education, Workforce, and Income Security Issues: 
U.S. Government Accountability Office:
441 G. Street, N.W.: 
Washington, D.C. 20548:

Dear Mr. Nilsen:

The Employment and Training Administration (ETA) is in receipt of the 
draft Government Accountability Office (GAO) report entitled, 
"Workforce Investment Act: Employers Are Aware of, Using, and Satisfied 
with One-Stop Services, but More Data Could Help Labor Better Address 
Employers' Needs (GAO-05-259).

While we feel we have made great progress in adapting the direction of 
the public workforce system to become more demand-driven and responsive 
to employer needs, we also agree with your recommendation that it would 
be beneficial to understand the degree to which employers use our 
workforce investment system.

Last year, ETA proposed a comprehensive, streamlined reporting system 
for 12 different programs. One component of this revised system was an 
employer record that proposed collection of information on workforce 
services accessed by employers. ETA continues to reconcile comments on 
the proposal and to determine its feasibility.

If you would like additional information, please do not hesitate to 
call me at (202) 693-2700.

Sincerely, 

Signed by: 

Emily Stover DeRocco: 

[End of section]

Appendix V: GAO Contacts and Staff Acknowledgments:

GAO Contacts:

Joan Mahagan (617) 788-0521:

Anna Kelley (617) 788-0551:

Staff Acknowledgments:

Susan Pachikara and Paul Schearf made significant contributions to this 
report in all aspects of the work, and Chris Moriarity and Walter Vance 
provided methodological assistance throughout the assignment. In 
addition, Stefanie Bzdusek, Cathy Hurley, and Art James contributed to 
the administration of our employer survey, and Nitin Rao and Blake 
Walters assisted in the data collection and analysis phase of this 
assignment. Jessica Botsford and Richard Burkard provided legal 
support. 

[End of section]

Related GAO Products:

Workforce Investment Act: Labor Has Taken Several Actions to Facilitate 
Access to One-Stops for Persons with Disabilities, but These Efforts 
May Not Be Sufficient. GAO-05-54. Washington, D.C.: December 14, 2004:

Public Community Colleges and Technical Schools: Most Schools Use Both 
Credit and Noncredit Programs for Workforce Development. GAO-05-4. 
Washington, D.C.: October 18, 2004:

Workforce Investment Act: States and Local Areas Have Developed 
Strategies to Assess Performance, but Labor Could Do More to Help. GAO- 
04-657. Washington, D.C.: June 1, 2004. 

Workforce Investment Act: One-Stop Centers Implemented Strategies to 
Strengthen Services and Partnerships, but More Research and Information 
Sharing Is Needed. GAO-03-725 and related testimony GAO-03-884T. 
Washington, D.C.: June 18, 2003. 

Workforce Training: Employed Worker Programs Focus on Business Needs, 
but Revised Performance Measures Could Improve Access for Some Workers. 
GAO-03-353. Washington, D.C.: February 14, 2003. 

Older Workers: Employment Assistance Focuses on Subsidized Jobs and Job 
Search, but Revised Performance Measures Could Improve Access to Other 
Services. GAO-03-350. Washington, D.C.: January 24, 2003. 

Workforce Investment Act: States and Localities Increasingly Coordinate 
Services for TANF Clients, but Better Information Needed on Effective 
Approaches. GAO-02-696. Washington, D.C.: July 3, 2002:

Workforce Investment Act: Improvements Needed in Performance Measures 
to Provide a More Accurate Picture of WIA's Effectiveness. GAO-02-275. 
Washington, D.C.: February 1, 2002. 

Workforce Investment Act: Better Guidance Needed to Address Concerns 
over New Requirements. GAO-02-72 and related testimony GAO-02-94T. 
Washington, D.C.: October 4, 2001. 

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FOOTNOTES

[1] Sampling errors for estimates presented in this report do not 
exceed 9 percentage points, unless related to employer satisfaction or 
reasons for not using one-stop services, in which case, they do not 
exceed 15 percentage points. Specific sampling errors are noted where 
appropriate in appendix I. 

[2] America's Job Bank and labor market information are accessible 
through one-stops and through the Internet. 

[3] Labor's employer satisfaction measure is based on the American 
Customer Satisfaction Index (ACSI). The index is a uniform and 
independent measure that tracks trends in customer satisfaction and 
provides benchmarks of the consumer economy for industry and government 
agencies. 

[4] For questions on employer use of services, we asked employers about 
their use within the 12 months prior to the time of the interview. 

[5] Although private schools are engaged in commercial enterprise, we 
excluded this group from our sample because it was in a mixed code 
category with public sector schools. 

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