WHY WE DO WHAT WE DO

1
WHY WE DO WHAT WE DO

• JIM LOTT
• WORKFORCE CONSULTANT
• tmijim_at_bellsouth.net
• 601-278-4378

2
THE BEGINNING

• Social Security Act of 1934 The Unemployment
  Insurance System
• Purpose was to keep a stable workforce near the
  great factories
• Provided temporary support until the individual
  was recalled or found another job
• Based on a payroll tax paid by employers

3
THE BEGINNING, PART II

• Wagner-Peyser Act of 1936
• Purpose was to help unemployed individuals find a
  job and to assist businesses in finding employees
• Labor Exchange System of job orders and referrals
• Your old unemployment office
• THIS SYSTEM WAS UNCHANGED FROM 1935 TO 1962

4
GENESIS OF THE MODERN WORKFORCE DEVELOPMENT
SYSTEM IN AMERICA

• Two components of the economic theory revolution
  in the 20th Century
• I Keynesian Theory prescribed a role for the
  government in the financial systems and money
  markets.
• II A corollary theory bloomed in the 1960s that
  there was a role for the government in the labor
  market.

5
GENESIS OF THE MODERN WORKFORCE DEVELOPMENT
SYSTEM IN AMERICA

• Computers were going to make the American worker
  obsolete) caused President Kennedy to appoint a
  blue ribbon panel of economists, business leaders
  and labor leaders to recommend new policies and
  approaches.

6
As a result, the Manpower Development and
Training Act of 1962 was passed.

• This was the first time that government became
  officially involved in training and placement
  programs.
• Direct Federal involvement with local labor
  market areas.
• The creation of Councils for Advisory Manpower
  Planning Services.
• Soon followed in 1968 by the Neighborhood Youth
  Corps

7
MODERN WORKFORCE PROGRAMS IN AMERICA

• CETA
• JTPA
• WIA

8
CETA

• The Comprehensive Employment and Training Act
  (CETA) of 1973 was the first multi-billion dollar
  federal investment in job training programs.

9
CETA - CHARACTERIZED BY

• Governance Structure
• Focus on groups with a competitive disadvantage
  in the labor market
• Emphasized planning and analysis of demographic
  and economic data to identify those most in
  need
• Federal Government directly funded Prime Sponsors
• Two roles for the Governor
• State Manpower Planning Boards
• The Balance of State

10
CETA

• In 1978, there were two additional developments
• The Growth of Public Service Employment (PSE)
• The Development of Private Industry Councils
  (PIC)

11
PSE PICS

• Public Service Employment grew from less than
  100,000 PSE slots in 1978 to nearly 1 million PSE
  slots by March, 1980.
• The Private Industry Council (Title VII of CETA)
  provided for a business leadership role for the
  first time. Every state and every Prime Sponsor
  had an Advisory Board and a PIC.

12

• The explosion of PSE led to fraud and abuse,
  resulting in intense media scrutiny. Republican
  Presidential Candidate Ronald Reagan campaigned
  against it. When he became President, PSE
  disappeared.
• Congress debated JTPA. Two years of hearings by
  Senators Kennedy and Quayle led to the
  replacement of CETA by JTPA.

13
JTPA

• The Job Training Partnership Act (JTPA) was
  passed in 1982 and enacted in 1983.

14
JTPA had significant differences from CETA

• Increased role of the Governor
• No direct contact between USDOL and local
  governments
• Virtual elimination of PSE
• One local board that was business dominated
• Elimination of Balance of States
• Increased emphasis on training

15

• In 1988, JTPA amendments tightened up on training
  requirements and corrected the methods of job
  placements. (No more fixed price contracts that
  encouraged reverse referrals).
• An increasing concern over duplication of effort
  and over the results of training led to the
  passage of WIA in 1998.

16
WIA

• The Workforce Investment Act (WIA) of 1998 was
  the biggest departure from the 35 years of
  federally funded workforce programs.

17
The Changes Included

• Federally prescribed service model The One-Stop
  Career Center
• Seven Performance Measures
• New Customer Service model that included Customer
  Satisfaction Surveys, informed Customer Choice of
  Training programs
• Individual Training Accounts No More Class-Size
  Training
• Eligible Training Provider List

18
Changes Contd.

• Required One-Stop Partners who would pay their
  fair share of infrastructure costs
• No more planning, no more focus on barriers to
  employment
• Pressure to serve all workers, all occupations,
  no more poor peoples programs
• Funnel of prescribed services Core, Intensive,
  Training

19
THANK YOU!

• QUESTIONS?

20
CONTACT INFO

• JIM LOTT
• WORKFORCE CONSULTANT
• tmijim_at_bellsouth.net
• 601-278-4378