Reemployment Services: DOL Could Better Support States in Targeting Unemployment Insurance Claimants for Services
Highlights
What GAO Found
Nationwide, four key federally funded workforce programs helped states provide reemployment services, such as career counseling and job search assistance, to millions of unemployment insurance (UI) claimants, according to data from July 2015 through June 2016, the most recent period available (see table). The six selected states GAO reviewed in-depth reported using these key programs to support their efforts to help claimants return to work. Selected state officials described skills assessments, job search assistance, and interview and resume workshops as the types of services they use to connect UI claimants to jobs quickly. Officials also described varying service delivery approaches, with some of the selected states emphasizing the use of online services, while others relied to a greater extent on in-person services.
Key Federally Funded Workforce Programs Helping States Provide Reemployment Services to Unemployment Insurance (UI) Claimants, July 2015 through June 2016
|
Program |
Services provided |
UI claimants served |
|
Wagner-Peyser Employment Service |
Non-training services, including career counseling, job listings, job search assistance, and referrals to employers |
5 million participated |
|
Reemployment Services and Eligibility Assessment (RESEA) |
Services including assessment of claimant's continued eligibility for UI and development of individual reemployment plan |
1.1 million scheduled to receive services |
|
WIOAa Dislocated Worker |
Training, such as occupational skills training, and services, including career counseling and job search assistance |
311,000 finished participating |
|
WIOAa Adult |
299,000 finished participating |
Source: GAO analysis of Department of Labor (DOL) data. I GAO-18-633.
aWorkforce Innovation and Opportunity Act (WIOA).
According to a 2014 national questionnaire to states, most states used a statistical system to identify UI claimants who are most likely to exhaust their benefits and need assistance returning to work (known as profiling). Six of the nine states GAO reviewed used statistical systems and three used non-statistical approaches. GAO identified several concerns with the Department of Labor's (DOL) oversight and support of state UI profiling systems:
Although a 2007 DOL-commissioned study found that some statistical systems may not perform well, DOL has not collected the information needed to identify states at risk of poor profiling system performance.
Some selected states have faced technical challenges in implementing and updating their statistical systems. However, DOL does not have a process for identifying and providing technical assistance to states at risk of poor system performance or those facing technical challenges. Instead, it only provides assistance to those states that request it.
While states have latitude to choose their preferred profiling approach, DOL's 1994 guidance encourages all states to use statistical systems. Because DOL has not updated this guidance to ensure that it clearly communicates all available profiling system options, some states may not be aware that they have greater flexibility in choosing an option that best suits their needs.
Why GAO Did This Study
In 2017, the UI program provided about $30 billion in temporary income support to 5.7 million claimants who became unemployed through no fault of their own. The federal government provides various resources states can use to help UI claimants achieve reemployment. GAO was asked to review how states identify and serve claimants who need such assistance.
This report examines, among other things, (1) what key federal programs and approaches states used to help UI claimants return to work, and (2) how states used profiling systems to identify claimants who are most likely to exhaust their benefits and need assistance returning to work. GAO reviewed relevant federal laws and guidance; analyzed the most recent available national data on UI claimant participation in key workforce programs, from July 2015 through June 2016; interviewed officials from DOL, six states with key reemployment practices, and three additional states with a variety of profiling practices; and reviewed national studies examining state profiling systems.
Recommendations
GAO recommends that DOL (1) systematically collect sufficient information to identify states at risk of poor profiling system performance, (2) develop a process for providing risk-based technical assistance to such states, and (3) update guidance to clarify state profiling options. DOL agreed with these recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | The Secretary of Labor should systematically collect sufficient information on state profiling systems, possibly through DOL's new UI state self-assessment process, to identify states at risk of poor profiling system performance. For instance, DOL could collect information on challenges states have experienced using and maintaining their profiling systems, planned changes to the systems, or state processes for assessing the systems' performance. (Recommendation 1) |
The Department of Labor (DOL) agreed with this recommendation and took action to address it. As of June 2022, DOL has a new profiling model monitoring tool that enables it to collect more detailed information about states' profiling systems for monitoring purposes. The tool asks questions about the type of model used, when it was implemented and last updated, the model's components and update schedule, and how staff view the model's in identifying appropriate UI claimants for services, among other things. DOL officials reported that this tool had been used in monitoring activities in four states as of October 2022. By collecting this more detailed profiling system information, DOL should have enhanced capacity to identify states at risk of poor profiling system performance, as recommended by GAO.
|
| Department of Labor | The Secretary of Labor should develop a process to use information on state risks of poor profiling system performance to provide technical assistance to states that need to improve their systems. DOL may also wish to tailor its technical assistance based on state service delivery goals and technical capacity. (Recommendation 2) |
: The Department of Labor (DOL) agreed with this recommendation and took action to address it. DOL created a new profiling model monitoring tool that enables it to collect more detailed information about states' profiling systems for monitoring purposes. As of October 2022, officials stated that they had monitored five states using this tool, and had scheduled a technical assistance call with one state based on information collected through the tool. Officials stated that tools for the other four states were being reviewed for any technical assistance needs. By using this new profiling model monitoring tool to identify needs and provide appropriate technical assistance, DOL is better able to support states that need to improve their systems, as recommended by GAO.
|
| Department of Labor | The Secretary of Labor should update agency guidance to ensure that it clearly informs states about the range of allowable profiling approaches. (Recommendation 3) |
DOL agreed with this recommendation and committed to publishing an Unemployment Insurance Program Letter (UIPL) regarding the implementation and maintenance of acceptable state profiling systems. In June 2022, DOL reported that efforts to issue guidance in CY2022 on profiling approaches had been delayed due to efforts to implement the new UI programs under the CARES Act and subsequent extensions. In addition, DOL has developed and is finalizing a collection of white papers, along with supporting technical resources. These resources provide a detailed overview of the entire model development process, including a comparison of potential model types. DOL plans to announce these resources through a Training and Employment Notice (TEN) that will address various model types and clarify language on potential options for state use. As of September 2024, the agency continues to work on these efforts and we will monitor their progress.
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