Government Programs and Resources

UNITED STATES DEPARTMENT OF LABOR

The Department provides two types of services to states, workers and employers: direct assistance programs and data collection and analysis. Direct assistance funds available under programs such as the Workforce Investment Act (WIA) finance workforce development efforts for individuals, training providers and firms at the state and local levels. Data services support planning and analysis for a wide variety of users. This section of the Tool Kit provides some basic information on these programs and resources, as they may be valuable in addressing workforce development needs in advanced manufacturing.

WORKFORCE INVESTMENT ACT (WIA) BASICS

The public workforce development system operates under a federal statute called the Workforce Investment Act, or WIA. Here are definitions of key terms and features of the public workforce system to help better understand WIA:

WIA, WIBs and Funding

Workforce Investment Act (WIA). Created by Congress in 1998, this program provides federal funding for workforce development nationwide. Major funding streams provide services for adults, dislocated workers and youth. Services are available to individuals and to employers.

Workforce Investment Boards (WIBs). These Boardsoversee the use of WIA funds and have broad leeway in determining local workforce development policies. While the Boards have a business majority, at least two labor representatives, nominated by state and local labor federations, sit on each board.

WIA’s Funding Formula allocates funds for adult, dislocated worker and youth services among the states and local areas. Governors retain up to 15% of state WIA allocations of all three funding streams and can use these funds for any allowed statewide activity. In many states, the Governor’s 15% fund is the only source of WIA money for incumbent worker training. Local boards are able to directly support training only for employed workers earning wages below the local self-sufficiency standard. (See box on Setting Realistic Self-Sufficiency Standards)

Basic Services Under WIA

Core Services refer to a universally available set of services for jobseekers – regardless of their earnings history – that must be provided at all One Stop Career Centers. Examples of these services include helping prepare resumes and reviewing local job announcements.

Intensive Services are available to adults and dislocated workers who need additional assistance to gain employment. Examples include personalized skills analysis and career counseling. In some areas, English as a Second Language (ESL) may be considered an intensive service if it prepares a person to enter an occupational training program.

Training Services can be made available to unemployed and employed adults whose income falls below the self-sufficiency standard (See box on Setting Realistic Self-Sufficiency Standards). These services are primarily funded through individual training accounts, or ITAs (see definition below). Setting a realistic local self-sufficiency standard is therefore critical to the eligibility of incumbent workers who wish to upgrade their training.

Ways of Delivering Training

Customized Training pays up to 50% of costs of training for workers whose employers agree to employ or continue to employ them once they complete their training. The use of customized training under WIA varies widely from one workforce area to another.

Individual Training Accounts (ITAs) are publicly funded training vouchers that adults may use to purchase training from a list of eligible training providers. The self-sufficiency standard set by the WIB determines eligibility for these vouchers for employed adults. The amount, duration and rules for the use of ITAs are set locally.

On the Job Training offers participants the opportunity to be paid while learning the skills they need to do a job. These programs, which have fixed time limits, can use WIA funds to reimburse employers for up to 50% of a participant’s wage rate.

Local WIBs set the policies for each of these approaches and those policies may determine the best approach for an industry partnership seeking funding from the WIA system.

Other Key Terms

Eligible Training Provider is an organization that has been certified by a state or local WIB to provide publicly funded training under WIA.

One Stop Career Centers are local facilities established by each WIB to provide individuals and employers with employment related services. The One Stops establish an individual’s eligibility for training and other services needed to find and prepare for a job. They meet the needs of employers by assisting with recruitment, training and retention of skilled workers.

Job-seekers and employers may locate their nearest One Stop Career Center by calling 1-877-US2-JOBS or 1-877-889-5627 (TTY) or by visiting America’s Service Locator at www.servicelocator.org

OTHER DEPARTMENT OF LABOR TRAINING RESOURCES

The Trade Adjustment Assistance (TAA) Program

The Trade Adjustment Assistance (TAA) program for workers (there’s also a TAA for businesses, see description below under Economic Development Administration) is also a valuable resource for the training of manufacturing workers. TAA’s purpose is to assist workers who lose their jobs due to increased imports, or shifts in production to foreign countries. In 2002, Congress enacted a major overhaul and expansion of TAA, including the addition of a health-care tax credit (HCTC). Congress also expanded eligibility beyond manufacturing to agricultural workers, workers displaced by a shift of production overseas, and “secondary workers,” i.e., those displaced because their employers supply plants have been negatively affected by trade¹.

The TAA program seeks to help trade-affected workers return to suitable employment as soon as possible. Services available to workers certified by TAA, include income support, relocation allowances, job search allowances, and the HCTC. An associated program, Alternative Trade Adjustment Assistance (ATAA), provides older workers an alternative to the regular TAA benefits. It allows older workers, for whom retraining may not be useful, to accept reemployment at a lower wage and receive a wage subsidy.

To obtain TAA or ATAA services and benefits, a group of workers must file a petition with the Department of Labor’s Division of Trade Adjustment Assistance, requesting certification as workers hurt by foreign trade. If certified, each worker in the group may then apply separately for individual services and benefits through their local One-Stop Career Center. Certified workers age 50 or older can apply for both TAA and ATAA. Others must choose whether to participate in TAA or in ATAA, but not in both.

Information on applying for TAA/ATAA, filing a petition (including downloadable petition forms), and petition determinations can be found on the TAA website. www.doleta.gov/tradeact

OFFICE OF APPRENTICESHIP

The Office of Apprenticeship (OA) is responsible for developing materials and conducting a program of public awareness to secure the adoption of training in skilled occupations and related training policies and practices. It develops policies and plans to enhance opportunities for minority and female participation in skilled training.

Finally, the agency coordinates the effective use of resources to create a clear training-to-employment corridor for customers of the workforce development system.

OA directly governs many states' apprenticeship programs; in other states it delegates the direct authority for apprenticeship program oversight to state agencies.

http://www.doleta.gov/OA/

DATA COLLECTION AND ANALYSIS: BUREAU OF LABOR STATISTICS

An agency of the U.S. Department of Labor, the Bureau of Labor Statistics (BLS) is the principal fact-finding agency for the Federal Government in the broad area of labor economics and statistics. BLS collects, analyses, and disseminates essential statistical data to the American public, the U.S. Congress, other federal agencies, state and local governments, businesses and labor. BLS bills itself as an independent national statistical agency dedicated to producing impartial, timely, and accurate data relevant to its users.

BLS Statistical Data and Programs

BLS makes a range of statistics available, including data on employment and unemployment, productivity (labor and multifactor), wages, earnings and benefits, prices (e.g., consumer and producer price indexes), safety and health (injuries and fatalities), occupations, business costs, and labor force demographics. For each statistical category, BLS provides data at the national, state and local (county, cities and metropolitan statistical areas) levels, as relevant. Aside from U.S. labor statistics, the BLS also has a significant foreign labor statistics program, which includes comparative information by country for most of the major data categories.

All data can be found on the BLS website: www.bls.gov.

Industrial Statistics and NAICS

BLS also provides classification for much of its statistical data according to industry sectors. For presenting industry data, BLS uses the North American Industry Classification System (NAICS), which replaces the older Standard Industrial Classification system (SIC) used since the 1930s. The SIC system had been revised and updated periodically to reflect changes in the U.S. economy. In 1997, the Office of Management and Budget (OMB) announced the adoption of NAICS, and in 2001, BLS began converting its industrial statistics from the SIC system to NAICS.

The conversion to NAICS came about because the older SIC system, which primarily focuses on manufacturing, did not provide sufficient detail for the now dominant service sector. Moreover, the SIC did not adequately represent emergent industries, such as information services, health care delivery, and even high-tech manufacturing, none of which were separately identified in the SIC system. NAICS uses a unified concept to define industries, while the SIC system uses multiple ways to categorize economic activity. NAICS classifies industries on the basis of their production or supply function –establishments using similar raw material inputs, capital equipment, and labor are classified in the same industry. Thus, NAICS categories are more homogeneous and better suited for economic analysis. Finally, NAICS has been adopted by the United States, Canada and Mexico, allowing greater consistency in measuring and comparing the economies of the three partners in the North American Free Trade Agreement (NAFTA).

NAICS uses six digit-codes to designate industry sub-sectors at the lowest level of aggregation. At the highest level, it uses the first two digits, with 20 such two-digit industry sectors or supersectors. The manufacturing (31-33) supersector includes more than one 2-digit identifier. The third digit of a NAICS code represents the subsector.

 2002 U.S. NAICS Codes for Manufacturing Sectors

Location Quotient Calculator

The Location Quotient Calculator is a new labor market analysis tool the BLS recently added to its web services. The calculator generates location quotients, a measure that enables regional labor economists to compare employment levels among different regions of the nation. Location quotients are ratios that compare the concentration of employment in a defined area to that of a larger area or base. They can be used to compare local or regional employment by industry sector to that of the nation. Or they can compare employment in a city, county, metropolitan statistical area (MSA), or other sub-area to that in the state. The location quotient calculator uses data from the BLS’s Quarterly Census of Employment and Wages (QCEW), a timely data source especially rich in comprehensive industry and area detail. On the BLS website, the location quotient calculator’s URL is http://data.bls.gov/LOCATION_QUOTIENT/servlet/lqc.ControllerServlet.

OTHER FEDERAL AGENCY RESOURCES

DEPARTMENT OF COMMERCE

The Economic Development Administration (EDA)

EDA oversees multiple programs offering development assistance to targeted communities that meet criteria for “economic distress.” Through its regional economic development officials, EDA responds to applications from local partnerships, usually led by a local or state government.

EDA provides grants and loans to support economic development in communities with high unemployment, low per-capita income levels, or specific problems, such as economic dislocation due to increasing trade, natural disasters, out-migration, etc. The grants generally require a 20-50% match by the state and/or local government.

To qualify for funding, grants are required to advance productivity and innovation, demonstrate commitment from the partners and local government, maintain strong leadership, and focus on results.

www.eda.gov

Manufacturing Extension Partnership (MEP)

The MEP, part of the National Institute of Standards and Technology (NIST) is a nationwide network of resources transforming manufacturers to compete globally, supporting greater supply chain integration, and providing access to technology for improved productivity.

MEP leverages over $100 million dollars of federal investment into a nearly $300 million dollar program by teaming with industry as well as state and local organizations. MEP provides access to a range of resources meeting the critical and often unique needs of America's manufacturers with over 350 manufacturing extension offices located in all 50 states and Puerto Rico. The Wisconsin MEP program was a key partner in the Wisconsin Regional Training Partnership case study, delivering training in the three featured firms.

www.mep.nist.gov

The Bureau of Economic Analysis (BEA)

BEA is a major federal source of economic statistics. Its stated mission is to promote “a better understanding of the U.S. economy by providing the most timely, relevant, and accurate economic accounts data in an objective and cost-effective manner.” An agency of the U.S. Department of Commerce, BEA, collects source data, conducts research and analysis, develops and implements estimation methods, and disseminates statistics to the public.

BEA prepares national, regional, industry, and international accounts that present valuable information on issues such as economic growth, regional economic development, inter-industry relationships, and international transactions. www.bea.gov

• National Accounts—this program provides quantitative data on U.S. domestic production, consumption and investment, exports and imports, and national and domestic income and savings. This includes estimates of the GDP, personal income and outlays, the nation’s stock of fixed assets and consumer durable goods.
• Regional Accounts—provides detailed economic data by region, state, metropolitan area, and county. This includes estimates of state and local personal income, and gross State product (GSP) by industry. Some information is made available for public use on a quarterly basis, while others are produced annually.
• Industry Accounts—produces input-output tables, which show how industries interact to provide input to, and take output, from each other. It also produces the annual GSP by industry, which measures the contribution of each private industry and government to the GDP.
• International Accounts—produces quarterly balance of payments accounts and monthly services estimates, which provide a detailed view of transactions between the United States and other nations. It also produces direct investment estimates, based on annual and quarterly surveys of US direct investment abroad, foreign direct investment in the United States, income flows associated with those investments, and other economic activities of multinational enterprises.

US Census Bureau

The Census Bureau is the leading source of data about the nation’s people and economy, along with BEA and STAT-USA (www.stat-usa.gov). The Economics and Statistics Administration within the U.S. Department of Commerce houses the Census Bureau. The agency takes the census of population every 10 years, conducts censuses of economic activity and state and local governments every five years, and every year conducts more than 100 other surveys. The purpose of the censuses and surveys is to collect general statistics information from individuals and establishments in order to compile statistics.

The Census data most useful for regional economic and workforce development planners and practitioners are business statistics and the economic census, but the Census Bureau also provides numerous series of population and housing statistics, and international statistics.

Longitudinal Employer-Household Dynamics and Local Employment Dynamics
Longitudinal Employer-Household Dynamics (LEHD) is an innovative program within the Census Bureau. The tool uses modern statistical and computing techniques to combine federal and state administrative data on employers and employees with core Census Bureau surveys.

In partnership with participating state labor market information agencies, the Census Bureau has developed a valuable on-line tool for strategic workforce planning: the Local Employment Dynamics resource. Local Employment Dynamics (LED) is the cornerstone of a program designed to develop new information about local labor market conditions at low cost, with the same confidentiality afforded by census and survey data. The LED/state partnership works to fill critical data gaps and provide indicators needed by state and local authorities. This partnership between state labor market information agencies and the Census Bureau supplies new measures – the Quarterly Workforce Indicators - on labor markets that:

• Are Local, at the state, county and sub-county level.
• Supply statistics on employment, job creation, turnover, and earnings by industry, age and sex.
• Provide dynamic information on the rapidly changing economy.

This valuable website can be found at www.lehd.dsd.census.gov.

The Census Bureau produces a range of statistics covering busness and government economic activities at the national, state, metropolitan area, and county levels.

• Economic Census— profiles American industry every 5 years, producing detailed reports on a large number of selected industry sectors and geographical areas.
• Statistics of U.S. Businesses (SUSB)—tabulates key economic data on companies, establishments, employment, annual payroll, and receipts, using data files created from the annual County Business Patterns (CBP) files.
• County Business Patterns—provides annual sub-national economic data by industry, covering most of the nation’s economic activity. The series is useful for studying small areas; analyzing economic changes over time; and as a benchmark for statistical series, surveys and databases between economic censuses.
• Annual Survey of Manufacturers (ASM)— provides sample estimates of statistics for all manufacturing establishments with one or more paid employees. Census conducts the ASM in each of the 4 years between the economic census.

THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

The Community Development Block Grant (CDBG) is one of the Nation’s oldest economic development and housing assistance programs. It distributes funds in two main categories: entitlement communities and small cities. In 2004, HUD distributed nearly $30 million in training grants, in addition to its other economic development programs.

THE DEPARTMENT OF EDUCATION

Through its programs for Adult Basic Education and Family Literacy, Vocational Education, Vocational Rehabilitation, and other initiatives, the Department plays a major role in workforce and economic development. In general, the Department passes funds for these programs to the states and, in turn, to localities. These funds can be important components of a coordinated package of economic development strategies that include customized workforce training. Many states have become adept at moving the funds into their business recruitment and retention efforts. The Gulf Coast Shipbuilding Partnership Transitions Program, featured in a case study above, takes advantage of workforce development assistance through the Projects With Industry (PWI) program at Education

Student aid programs, such as Pell Grants and Perkins student loans, can also help individuals to finance their education and training.

THE DEPARTMENT OF HEALTH AND HUMAN SERVICES

For programs aimed at low-income recruits, the Temporary Assistance for Needy Families (TANF) program may also be a resource. Administered by the states, TANF includes training and work requirements for adults receiving public assistance for their families, and states are able to use a portion of their federal TANF funds on education and training programs. The Social Services Block Grant, also administered by the states, may be an additional resource for low-income individuals. Funds provided from this source – most often covering childcare needs – are more likely to be available to the individual and not the training program itself.

INDEPENDENT AGENCIES

Independent agencies within the Federal government can be important resources for information about manufacturing and for support labor-management manufacturing projects, including those that address workforce challenges. Some of those agencies and resources include:

National Science Foundation (NSF)

The NSF is an independent federal agency created by Congress in 1950 to promote the advancement of science. It is the only federal agency whose mission includes support for all fields of science and engineering, except for medical science. With an annual budget of $5.5 billion, NSF plays a critical role in supporting fundamental research, education and infrastructure at colleges, universities, and other institutions throughout the country.  NSF is also the principal federal agency responsible for promoting science and engineering education at all levels, and serves as the central clearinghouse for the collection and analysis of data on scientific resources.

www.nsf.gov

Federal Mediation and Conciliation Service

The Federal Mediation and Conciliation Service (FMCS), created in 1947, is an independent agency whose mission is to preserve and promote labor-management peace and cooperation. Headquartered in Washington, DC, with two regional offices and more than 70 field offices, the agency provides mediation and conflict resolution services to industry, government agencies and communities. Through its grants awards, FMCS seeks to support and encourage workers and employers to explore ways of improving labor-management relationships, job security and organizational effectiveness. The grant program has funded a broad range of projects including outreach, communications, strategic planning, minority recruitment and process development. Grant awards are capped at $125,000.

In the Wisconsin Regional Training Partnership case study, one of the companies – Milwaukee Cylinder – used a $44,000 FMCS grant to fund a move into a High Performance Work Organization.

www.fmcs.gov

Small Business Administration (SBA)

Since its creation in 1953, the Small Business Administration’s mission has been to aid, assist and protect small businesses and to help families and businesses recover from national disasters. SBA programs include technical and financial assistance, investment, advocacy, export assistance, and coordination of federal small business technology programs. With a business loan portfolio of roughly 219,000 loans worth more than $45 billion, SBA is the largest single financial backer of U.S. businesses in the nation

• Technical Assistance and Business Development Programs— provide training, and resources to help small business start, grow and compete in global markets. In addition, SBA’s network of Small Business Development Centers (SBDC) offers one-stop assistance to individuals and small businesses. It also sponsors business development programs for special groups, including minorities, Native Americans, women, young entrepreneurs and veterans.
• Financial Assistance Programs—Support small businesses through loan guarantees, long-term financing for expansion or modernization, and microloans, and a variety of special loans programs.
• Small Business Investment Companies (SBICs)— provide venture capital and start-up financing to small businesses.
• U.S. Export Assistance Centers—located throughout the U.S., are one-stop shops that provide small- or medium-sized business with local export assistance to compete in international markets.
• Technology, SBIR and STTR—supports the competitiveness of small high tech research and development businesses.

A variety of SBA programs provide small businesses with assistance in the field of technology by supporting development, training, information exchange, research and partnerships. Specific programs also support technology transfer. Additional information about all of these programs is available at www.sba.gov

www.sba.gov/sbir/indexsbir-sttr.html

The Federal Reserve Board

Congress created the Federal Reserve Board in 1913, to foster a sound banking system and a healthy economy. It consists of twelve separate Federal Reserve Banks that serve a specific region of the country, and a Board of Governors in Washington, DC, which oversees the broader system, known as The Fed. Aside from its larger purposes of conducting monetary policy and regulating the banking system, it also has been charged with implementing the laws that protect consumers in credit and other financial transactions and directing a community affairs program. It is also a source of economic information for regional, state and local policy makers and economic development planners.

Community Development:

The Federal Reserve encourages banks to work with community organizations to promote local economic development, in accordance with the Community Reinvestment Act of 1977 (CRA). In the examination of a bank’s compliance with the CRA, the Federal Reserve reviews a bank’s efforts to meet the credit needs of its entire community, including low- and moderate-income neighborhoods,. Each Reserve Bank has on staff a community affairs officer familiar with the credit needs in the communities served by the institutions in the Bank’s District.

Economic & Research Data:

The Federal Reserve Board makes economic and financial information publicly available, including statistics and historical data – released on a daily, monthly, quarterly, and annual basis. The Federal Reserve Bulletin, produced quarterly, includes reports and analysis of economic developments, regulatory issues and other new data.

The reports and data produced by the 12 regionally-based Federal Reserve Banks are valuable sources of regional and local economic information. For example, the Federal Reserve Bank of Chicago produces a quarterly journal, Economic Perspectives that includes in-depth articles reporting on the Bank's economic research.

• The Beige Book—a summary of current economic conditions by Federal Reserve District, produced by the Fed eight times per year. Each Federal Research Bank gathers anecdotal information on current economic conditions in its District. The Beige Book summarizes this information by District and industry sector.
• Consumer & Economic Development & Research Information Center (CEDRIC)—a center coordinated by the Chicago Fed to foster research related to consumer and economic development issues.

www.federalreserve.gov