Employment and Training Administration
Washington, D. C. 20210


Labor Exchange Performance
Measurement System




March 9, 2001





FROM :   Wendy L. McConnell for
Deputy Assistant Secretary
SUBJECT : Consultation Paper on Labor Exchange Performance Measurement System


  1. Purpose. To notify all appropriate workforce development system agencies of the labor exchange performance measurement system that the Employment and Training Administration (ETA), U.S. Department of Labor (DOL) proposes to implement for the public labor exchange during program year (PY) 2001. This system will consist of three components: (1) a set of labor exchange performance measures, (2) reporting requirements for labor exchange services and performance outcomes, and (3) procedures for establishing performance goals that State agencies and ETA can use in assuring the delivery of high quality labor exchange services. This notice conveys ETA's current position on the framework for the labor exchange performance measurement system in order to facilitate planning for implementation beginning July 1, 2001.

  2. Background. Under sections 3(a), 3(c)(2), 7(b), 10(c), 13(a), and 15(e)(2)(l) of the Wagner-Peyser Act (29 U.S.C. 49), ETA initiated the development of a performance measurement system for the public labor exchange in early 2000. ETA formed workgroup in collaboration with the Interstate Conference of Employment Security Agencies (ICESA) - now the National Association of State Workforce Agencies (NASWA) - consisting of representatives from fifteen State agencies, ICESA, the Veterans' Employment and Training Service (VETS), and the ETA Regional and National Offices. The workgroup met three times during 2000 to develop recommendations for a labor exchange performance measurement system.

    Based on recommendations the workgroup developed during its first two meetings, ETA published a set of five labor exchange performance measures in the Federal Register at 65 FR 49708-14, (August 14, 2000). These measures were: employer customer satisfaction; job seeker customer satisfaction; employment rate; entered employment rate; and employment retention rate at six months. ETA also published a framework for establishing expected levels of performance for each of these measures./P>

    During its third meeting, the workgroup reviewed and analyzed all comments received on the Federal Register notice. The review and analysis led to the proposed final set of performance measures presented in this document. The workgroup also provided substantial input that will lead to revised ETA 9002 Reports as well as a revised ETA Handbook No. 406 . Finally, the workgroup recommended that the procedures for establishing expected levels of performance be revised, based on the comments received.

  3. Description. Based on consideration of the comments received on the proposed labor exchange performance measurement system published in the Federal Register on August 14, 2000, and the recommendations of the labor exchange performance measurement system workgroup, ETA proposes to establish a labor exchange performance measurement system for implementation beginning July 1, 2001. This TEIN conveys the major concepts of the new performance measurement system and provides an overview of the proposed final performance measures.

    The labor exchange performance measurement system will apply to public labor exchange services provided as part of the One-Stop delivery systems of the States. This includes labor exchange services provided to job seekers and employers under the Wagner-Peyser Act, and to veterans by Disabled Veterans' Outreach Program (DVOP) and Local Veterans' Employment Representative (LVER) staff under VETS programs, as specified in Title 38, U.S.C. Other publicly-funded labor exchange services may be included in the labor exchange performance measurement system at the discretion of individual States.

    The labor exchange performance measurement system will apply to job seekers who are registered applicants with the public labor exchange and to employers who receive substantial service involving personal contact with One-Stop staff. Registered applicants will be defined as all job-seeking customers who complete registration with the labor exchange. Required elements of registration will include: name, contact information, Social Security Number, demographic information, employment status, and date of registration. Applicants may be registered upon contacting the labor exchange through the One-Stop delivery system or as required by State law or policy; however, applicants receiving staff-assisted services funded under the Wagner-Peyser Act must be registered. Job seekers who seek self-services or facilitated self-help services also may be registered. A job-seeking customer will be counted as a registered applicant only once during a registration year, defined as the calendar quarter during which registration occurs (registration quarter) and the subsequent three quarters. Registered applicants who receive services during the fourth quarter after the registration quarter should be re-registered. Such applicants would then begin a new registration year.

  4. Implementation. Following the dissemination of this TEIN, ETA will be publishing the proposed final labor exchange performance measures as a notice in the Federal Register. Also, ETA will be publishing the proposed ETA 9002/VETS 200 Reports and the proposed ETA Handbook No. 406 in the Federal Register for comment. Details on the transition to, and implementation of, the new system, including the use of NAICS and O*NET - SOC codes, will be published in a separate notice.

    ETA intends to provide State agencies with technical assistance and training on a variety of areas associated with implementation of the new labor exchange performance measurement system.

  5. Action Required. State agencies are requested to distribute copies of this TEIN to all relevant workforce development partners including Employment Service directors and Information Technology directors.

  6. Inquiries. Questions and comments concerning this TEIN should be directed to the appropriate Regional Office.