Employment Service: More Jobseekers Should Be Referred to Private Employment Agencies
HRD-86-61
Published: Mar 31, 1986. Publicly Released: Mar 31, 1986.
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Highlights
Pursuant to a congressional request, GAO reviewed the implementation of the Employment Service Act to determine whether additional actions might be taken to better ensure that private employment agency resources are appropriately utilized to reduce unemployment.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may want to amend the Employment Service Act to specifically require that state employment services solicit private employment agency job openings and refer jobseekers to them so long as the jobseekers are not charged fees. Pending consideration of the amendments to the Employment Service Act, Congress may also want to consider, as an interim measure, the language in Labor's annual appropriations act providing that grants to state employment services are conditional on their soliciting and making such referrals to private agency job openings. |
Closed – Not Implemented
|
Congress does not plan to address this matter again on an individual basis, but will do so only in the context of legislation dealing with broader reform issues related to the Employment Service's role, structure, and effectiveness. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | The Secretary of Labor should develop regulations and guidelines that require state employment services to solicit job openings from private employment agencies and refer jobseekers to them so long as the jobseekers are not charged fees. |
Closed – Implemented
Labor did not concur that regulations mandating state action are appropriate. Labor issued a field memorandum encouraging, rather than requiring, solicitation and referral of jobseekers to private employment agencies. The report recommended that, if Labor did not develop regulations, Congress should consider legislation, which it will not do other than in the context of broader reform.
|
| Department of Labor | The Secretary of Labor should evaluate, in consultation with affected parties, additional approaches for increasing the use of private employment agency resources to place employment service jobseekers. |
Closed – Implemented
Labor convened a series of public meetings to solicit recommendations for the Secretary on this subject and analyzed those recommendations. Based on this review, Labor proposed legislation for desolving the entire Employment Service program to the states. It thus believes that no further federal action on this matter is appropriate.
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Topics
Employment agenciesEmployment assistance programsEmployment opportunitiesStaff utilizationState-administered programsUnemployment ratesEmployment serviceEmployment servicesTaxesAppropriations