Federal Youth Employment and Job Training Programs

Federal Youth Employment and Job Training Programs

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August 31, 2020
Federal Youth Employment and Job Training Programs
Background and Context
community service activities. Further, the programs use the
Congress has had a long-standing interest in ensuring that
same measures to evaluate performance, known as the
young people successfully make the transition to adulthood
primary indicators of performance. These measures focus
as skilled workers and taxpayers. Since the 1930s, federal
on the share of current and former participants who are
employment and job training programs have been targeted
enrolled in education or training programs; the share of
to low-income and other youth with barriers to
current and former participants who obtain a postsecondary
employment. The earliest programs focused on employing
credential or high school diploma; the share of former
idle young men by engaging them in public infrastructure
participants in unsubsidized employment and their median
and related projects. More contemporary programs have
earnings; and program effectiveness in serving employers.
provided support to young people through job training,
Each program also uses additional measures to evaluate
educational services, and social services.
performance.
Poor labor market outcomes among youth, particularly
Table 1. Funding for Youth Job Training Programs:
those who are low income or have barriers to employment,
FY2015-FY2020 (dollars in thousands)
have not been fully explored in the research literature.
Some studies have found that, on average, early youth
Youth
Youth-
REO Youth
unemployment has serious negative effects on future
FY
Activities
Job Corps
Build
Component
income and types of jobs they could obtain but not as strong
of effects on future employment. Although the labor force
15
$831,842
$1,688,155
$79,689
$44,054
situation improved for youth ages 16 to 24 following the
16
873,416
1,656,825
84,534
39,520
2007-2009 Great Recession, their employment prospects
have diminished in the current recession brought on by the
17
873,416
1,704,155
84,534
48,092
COVID-19 pandemic.
18
903,416
1,718,655
89,534
45,000
Overview and Funding
Currently, there are four major federal youth employment
19
903,416
1,718,655
89,534
49,592
and job training programs: Youth Activities; Job Corps;
20
913,130
1,743,655
94,534
26,597
YouthBuild; and Reentry Employment Opportunities
(REO), which includes a youth component. Authorized
Source: CRS, based on enacted appropriations.
under the Workforce Innovation and Opportunity Act
WIOA Youth Activities
(WIOA, P.L. 113-128), the programs are administered by
the Department of Labor’s (DOL’s) Employment and
The Youth Activities program was originally established
Training Administration (ETA). These programs have
under the Workforce Investment Act (WIA, P.L. 105-220),
varying eligibility requirements and are carried out under
which was replaced by WIOA. The program seeks to
different funding arrangements. For example, DOL
provide eligible youth with assistance in achieving success
provides Youth Activities funding to state workforce
in school and the workplace through activities that improve
development boards (WDBs), which in turn provide the
educational and employment skills and foster youth
funding to local WDBs. These boards, made up primarily of
connections to employers.
representatives of businesses, coordinate employment and
In-school youth ages 14 to 21 and out-of-school youth ages
training activities for states and communities. Under the Job
16 to 24 are eligible for the program. In-school youth are
Corps program, DOL enters into contracts with nonprofit
those who are attending school; are low-income; and meet
and for-profit organizations and into an interagency
specified criteria, such as being deficient in basic skills,
agreement with the U.S. Department of Agriculture’s
pregnant or parenting, homeless, or currently or formerly in
(USDA’s) Forest Service. DOL competitively awards
foster care. Out-of-school youth are those who meet certain
YouthBuild and REO grants to nonprofit and other
criteria such as being a high school dropout or low-income.
organizations and local communities.
No less than 75% of funds must be used for out-of-school
youth. In calendar year 2019, nearly 161,000 youth
As shown in Table 1, funding for the four youth programs
participated in the program.
varies. WIOA provides funding authorization for them from
FY2016 through FY2020. The programs are discretionary
DOL allocates funds to state WDBs based on a formula that
and funded on an annual basis through the appropriations
accounts for a state’s relative share of unemployment and
process. Despite their differences, they generally have a
number of economically disadvantaged youth. In turn, state
common purpose—to provide low-income and other
boards reallocate funding to local WDBs using the same
vulnerable youth with educational and employment
formula by which funds are allocated to states. Each local
opportunities and access to leadership development and
WDB must offer 14 elements that include tutoring, study
skills training, and other academic activities; alternative
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Federal Youth Employment and Job Training Programs
secondary school services or dropout recovery services;
the homeless and improve the quality of nonprofit and
paid and unpaid work experiences (including summer
public facilities. Youth ages 16 through 24 are eligible for
employment opportunities, pre-apprenticeship programs,
YouthBuild if they have dropped out of school and are (1)
internships and job shadowing, and on-the-job training
members of low-income families, (2) in foster care, (3)
opportunities); supportive services; adult mentoring;
offenders, (4) disabled, (5) the children of incarcerated
follow-up services; and other specified activities. At least
parents, or (6) migrants. Up to 25% of youth in the program
20% of the funds allocated to the local area must be used to
are not required to meet the income or dropout criteria, so
provide youth (whether they are in school or not) with paid
long as they are basic skills deficient despite having earned
and unpaid work experiences that have academic and
a high school diploma, GED, or the equivalent; or have
occupational education as a component. Local WDBs
been referred by a high school for the purpose of obtaining
contract with local entities, such as nonprofit organizations
a high school diploma. About 6,000 youth participate in the
and community colleges, to provide services.
program annually.
Job Corps
DOL competitively awards YouthBuild grants to
community-based organizations, faith-based organizations,
Job Corps was originally established by the Economic
local WDBs and other entities carrying out activities under
Opportunity Act of 1964 (P.L. 88-452) and most recently
Title I of WIOA, community action agencies, state or local
amended by WIOA. A primary purpose of Job Corps is to
housing development agencies, tribal entities, youth service
assist eligible youth in connecting to the labor force by
or conservation corps, and other organizations that provide
providing them with “intensive social, academic, career and
education or employment training under a federal program
technical education, and service learning opportunities” in
other than YouthBuild. Participants must be engaged in
123 centers throughout the country. Most youth participants
certain work and skills development activities at least 40%
reside at these centers. While there, they receive targeted
of the time, and in education and related services and
academic instruction and career and technical training. The
activities designed to meet their educational needs at least
program offers training in more than 70 careers, with each
an additional 50% of the time. These activities focus on
center offering selected career paths. Youth work toward
preparing youth for the construction trades and (if approved
earning secondary school diplomas or recognized
by DOL) additional in-demand industry sectors or
postsecondary credentials, with the goal of transitioning to
occupations. A 2018 DOL-funded evaluation found that
careers within in-demand industries or the Armed Forces,
YouthBuild participants were more likely than their peers to
or enrolling in postsecondary education.
obtain a high school equivalency, enroll in college, and
Youth ages 16 through 24 are eligible for Job Corps if they
have increased earnings; the program had negligible effects
are low-income and (1) basic skills deficient; (2) a dropout;
on obtaining a college degree and participating in work.
(3) homeless, a runaway, or an individual in foster care or
Approximately 6,000 students participate in YouthBuild
who aged out of foster care; (4) a parent; (5) a victim of
annually.
trafficking; or (6) an individual who requires additional
Reentry Employment Opportunities
education and training to gain employment that leads to
DOL carries out the REO program under WIOA’s evaluation
economic self-sufficiency. A veteran is eligible if he or she
and research authority (§169). The program funds related
meets the eligibility criteria; however, the income
requirement does not apply if the veteran’s
initiatives that seek to assist youth offenders and youth at ris k
recent income
of dropping out of high school, and to provide supports for
earned in the military exceeds the income limit. In program
youth at risk of involvement with the justice system. DOL
year 2018, nearly 47,000 students participated in Job Corps.
competitively awards grants to various entities, which include
DOL may enter into agreements with multiple types of
community-based organizations, school districts, and state
entities to operate Job Corps centers: a federal, state, or local departments of corrections. Grantees have a range of activities
agency; an area career and technical education school or
and services, depending on the type of grant awarded,
residential career and technical education school; or a private including mentoring, housing, case management, employment
organization. Of the 123 centers, 23 are known as Civilian
services, and violence prevention strategies.
Conservation Centers (CCCs), which are operated by the
REO appropriations in recent years have supported Reentry
USDA Forest Service. DOL transfers funding for these
Projects grants, which focus on preventing and reducing crime
centers to USDA under an interagency agreement. The CCCs and enhancing reentry strategies for young adults ages 18 to 24
provide education and training that focuses on preserving
served in communities with elevated levels of poverty and
public natural resources. The other 100 centers are operated
crime. These projects are designed to assist young adults who
by private organizations, most of which are for-profit,
are reentering the community, with a focus on trying new
through contracts with DOL (which are governed by federal
approaches and addressing gaps in services. Funding is
procurement laws ). WIOA specifies the contract is for a two-
provided to intermediary organizations that have an affiliate
year period, with up to three optional one-year renewals.
network or offices in at least three communities and across at
YouthBuild
least two states, and to community-based organizations that
provide direct services. In FY2019, more than 10,000 youth
The Cranston-Gonzalez National Affordable Housing Act
participated in the program.
(P.L. 101-625) established the YouthBuild program, which
was most recently amended by WIOA. While the focus of
YouthBuild is to enable disadvantaged youth to obtain
Adrienne L. Fernandes -Alcantara, Specialist in Social
education, employment, and leadership skills, it also seeks
Policy
to expand the supply of permanent affordable housing for
IF11640
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Federal Youth Employment and Job Training Programs

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