WIA Fact of the Day, Employment & Training Administration (ETA)

February 10, 2005

Question:

How will the President's Job Training Reform Proposal make it easier for the public workforce investment system to serve incumbent workers?

Answer:

Under the Workforce Investment Act, there is limited authority to serve incumbent workers. This is unfortunate because workers often need to upgrade their skills in order to avoid layoffs. In addition, incumbent worker training is a valuable tool that assists low-income workers advance in employment. Businesses who are revamping their business models in order to remain competitive in the global economy utilize incumbent worker training to ensure workers have the appropriate skills.

The Administration's reform proposal allows ten percent of local formula funds to be used for incumbent worker training in addition to the use of state reserve funds. Both the House and Senate proposals to reauthorize the Workforce Investment Act (H.R. 27 and S. 9) include this provision, recognizing the need to expand opportunities for incumbent workers.

The proposed WIA Plus Consolidated State Grants provide even more flexibility to meet the training needs of incumbent workers by not applying Federal restrictions. This is an important improvement for the public workforce system.