Workforce Development and the Disadvantaged

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Abstract

The Workforce Investment Act (WIA) officially expired in 2003 but has not yet been reauthorized. With a new administration and Congress due in 2009, what should they consider regarding workforce development and the disadvantaged population? This brief reviews the arguments for a workforce development system, examining both the strengths and weaknesses of the current WIA program. Among the proposals are expanded funding, and planning grants which states could use to target industries and sectors with unmet demands for skilled workers. They would then identify potential "pathways" for different groups of disadvantaged workers to meet those demands.

Introduction

The Workforce Investment Act (WIA) was passed by Congress and signed into law by President Clinton in 1998, replacing the Job Training Partnership Act (JTPA). It remains the primary vehicle through which the U.S. Department of Labor funds a range of labor-market services, including job training, for workers. The services provided include some that are universally available, while others are more targeted to particular groups, including the disadvantaged. The legislation formally expired in 2003 and has not been reauthorized since then, but it continues to operate (albeit at reduced levels of funding almost every year).

With a new administration and Congress due in place at the beginning of 2009, this year is a critical time to rethink the nature and extent of services funded under WIA, and especially how they serve disadvantaged workers—both adults and youth. What are the primary limitations of the current approach? Are funding levels adequate for the required goals of the system? How might the many other federal, state, and local sources of funding for workforce development be used more effectively? In a tight budgetary environment, what can be realistically expected?

This brief addresses these questions. It begins with a brief overview of the need for a public workforce system, followed by some discussion of how well WIA meets these needs. Then it outlines what a new system might look like, and what changes in WIA are needed to get there.

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