The monthly labor area summary reports are intended to provide statistical and other data needed for operating Federal area assistance programs and for classifying areas according to relative labor supply. This data, however, is not classified by demographic, social, and economic characteristics of the unemployed and is not available on a geographic basis consistent with that used for the EEA public employment programs. A Department of Labor task force established to examine the adequacy of local unemployment data for use in managing EEA programs concluded in February 1972 that improved local labor market information was needed. The task force report stated that the State employment security agencies should continue to be the main source of data but proposed a number of improvements for developing such data. The task force proposed that revised technical guidelines, setting forth uniform methods of developing data on the characteristics of the unemployed, be issued to program agents. The task force also made recommendations concerning (1) reporting by the State employment security agencies on unemployment estimates for areas served by program agents, (2) the methodology to be followed to insure uniform unemployment data for labor areas, (3) the development of data on the characteristics of the unemployed, and (4) other technical aspects of the program. The report set forth, for the use of State employment security agencies, sources of data for various characteristics of the unemployed in local areas. The principal sources are the 1970 census data and the information system used by the State employment security agencies. Implementation of the task force recommendations should provide program agents and managers with some data on the characteristics of the unemployed within specific labor areas. However, we believe several problems will still limit program agents' abilities to insure that significant segments of the unemployed are served in numbers proportionate to their incidence in the unemployed population. First, the census data which the Department plans to use was obtained in April 1970 and may not accurately present current unemployment conditions in a particular area. Second, although State unemployment security data is more current than census data, it relates only to persons applying to a State employment security agency for assistance and therefore may not provide accurate data on the unemployed population. Department officials advised us that, although the census data obviously is out of date, it will be updated by the State employment security agencies and that these agencies are beginning to develop the capability to provide some of the information needed for the EEA programs. Many of the manpower bills introduced in the Ninetysecond Congress to provide for comprehensive manpower programs or to amend EEA contain provisions for labor market data, in addition to the monthly national data now being provided. For example, one bill calls for gathering and publishing, on a regular basis, data on unemployment, underemployment, and job vacancies by State, labor market area, rural area, and city and poverty neighborhoods. More precise localized data on unemployment is needed if program managers are to properly carry out their responsibilities under employment programs designed to serve the needs of the significant segments of the unemployed equitably; however, obtaining more precise data will obviously cost the Department more than its present data accumulation. CHAPTER 4 SCOPE OF REVIEW Our review included an examination of (1) the legislative history relating to the act, (2) the procedures followed by program agents in selecting and enrolling program participants, and (3) the management information reports, periodically prepared by the Department, showing the progress of hiring and the types of persons hired under the act. To provide diverse coverage in our review, we visited 25 program agents representing seven States, 10 counties, and 10 cities. The selected agents represented (1) rural as well as urban areas and (2) areas with rates of unemployment ranging from 4 percent to 15 percent. Of the $959 million allocated by the Secretary to fund about 192,700 jobs under the act, about $228.7 million was allocated to the 25 program agents to fund about 46,205 jobs. (See app. I for a listing of the program agents, funds awarded, and jobs proposed.) |