Navigating Public Job Training (Research Report from Harvard Project on Workforce)

Last Updated: 03/09/2024

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Overview

In March 2023, the Harvard Project on Workforce issued the Navigating Public Job Training Report. The report describes and analyzes the more than 75,000 Eligible Training Provider (ETP) programs in the United States.

ETP programs are job training programs eligible for funding under the federal workforce development law, the Workforce Innovation and Opportunity Act (WIOA).  WIOA funds vouchers for unemployed or underemployed workers to enroll in job training services. The vouchers are typically used to support enrollment in short-term, non-four-year-degree programs that connect to "in-demand employment” opportunities in a regional economy. Under the law, each state and territory must maintain a list of pre-approved programs that eligible individuals may select from. The programs on these lists are known as ETPLs or eligible training provider lists. 

More than 75,000 ETPs comprise the study’s primary unit of analysis—an analysis of federal and state data sources to better understand the publicly-funded job training landscape. The approach combines training provider and program data from the U.S. Department of Labor (DOL) with individual performance records and occupational datasets to study the types of providers receiving WIOA funding and the kinds of jobs for which they are training.

The study also looked at state websites for all 50 U.S. states to understand how program information is made available to potential enrollees. The analysis answered three primary research questions:

  • What are the most common characteristics of WIOA-eligible training providers and programs?
  • Which fields of study and occupations are most commonly supported by federal funding?
  • Is federal funding for workforce training directed towards good-paying and in-demand occupations?

The report’s contents include:

Findings

  • The landscape of federally funded job training is highly fragmented. Nationally, the average ETP program enrolled just three WIOA-funded learners per year, which would correspond with around $6,000 total in annual training revenue for the provider. This implies that WIOA is not a sustainable or scalable source of funding for most providers, as they must draw from other sources to fund most of their learners.
  • This fragmentation is linked to overall low levels of funding. WIOA vouchers provide under $500 million annually for job training for approximately 220,000 participants. In comparison, Pell grants provide approximately $25 billion for six million traditional higher education learners each year. Most WIOA funds go towards career services, not training.
  • Job quality remains a challenge for WIOA-eligible job training providers. Many of the most common programs of study lead to low-wage jobs. Federally-funded job training programs may contribute to occupational segregation—women and participants of color are more likely to enroll in ETP programs linked to low wages.
  • WIOA programs perform better on labor market demand metrics. Most eligible programs train for growing occupations, but only two out of the ten most common programs map to highest-growing occupations nationally.
  • Public-facing information about ETP programs is often inaccessible, and performance indicators are frequently missing or hard to digest. This poses challenges to the consumer choice architecture WIOA is designed around.

Recommendations

  • Prioritize areas for long-term public investment, including improved front-end technology, data infrastructure, and human support for career navigation, and for policy innovation, including rethinking provider eligibility criteria and other ways to invest in proven, quality programs.
  • Quick wins that the U.S. Department of Labor and state partners could implement in the short-run to improve accessibility and efficacy in the current system.

Authors

David Deming, Alexis GableRachel Lipson, Arkādijs Zvaigzne

Resources

Navigating Public Job Training Report

 

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