Job Training Programs Need More Effective Management

HRD-78-96: Published: Jul 7, 1978. Publicly Released: Jul 7, 1978.

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Title I of the Comprehensive Employment and Training Act authorized the Department of Labor to fund and monitor locally administered programs to provide unemployed people with skills needed to find jobs. The act gave state and local authorities (prime sponsors) a large role in planning and managing employment and training programs. About $1.8 billion of title I funds was spent for classroom and on-the-job training programs during fiscal years (FY) 1975 to 1977.

Of a sample of over 2,000 classroom training participants who left training during FY 1976, 49 percent obtained jobs after completing training. About 32 percent of the sample retained their jobs for at least 6 months. Of a sample of 800 on-the-job training participants who left training during the same year, 58 percent were retained by their employers, and about 38 percent were with their training employer after 6 months. Classroom training costs ranged from about $2,000 to $15,100, and on-the-job training ranged from about $1,500 to $14,600 per placement. The success of training programs may be affected by factors beyond the sponsor's control such as the motivation and capabilities of individuals served and the economic conditions of the sponsor's area. The primary reasons, however, for wide variations in sponsors' performances were inadequacies in the training programs and related services. Participants left training or their jobs for such reasons as lack of motivation and transportation problems.

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