Programs Available to Unemployed Workers Through the American Job Center Network
Released: 2017-07-18T00:00:00

Background on the American Job Center System

Many federally funded programs to assist unemployed workers are coordinated through state- and locally run Ame rican Job Centers (AJCs; also known as One-Stop Career Centers). Programs available to jobseekers at AJCs include income support (typically unemployment insurance), as well as a variety of reemployment and training services. Services may be provided on-site at an AJC or by a partner entity at a different location.

AJCs are operated by state and local workforce development boards. Boards are made up of representatives from business, government, the workforce, and other stakeholders. The federal government delegates most employment and training service decisions to state and local boards under the premise that sub-federal boards are best suited to meet the needs of the local labor market. There are approximately 2,500 AJC locations nationwide.

The AJC/One-Stop system was created by the Workforce Investment Act of 1998 (WIA; P.L. 105-220 ). WIA established that a group of federal funding streams ("mandatory partner programs") would be coordinated through state and locally run centers. The Workforce Innovation and Opportunity Act of 2014 (WIOA; P.L. 113-128 ) amended and reauthorized many WIA programs and maintained the AJC/One-Stop system.

Report Structure and Programs Discussed

This report aims to offer a brief overview of the programs administered through the AJC system. It emphasizes eligibility requirements and the scope of benefits and services available to individuals. It does not emphasize the roles and responsibilities of institutional actors such as state agency grantees and local workforce boards. Readers seeking additional information on the programs discussed are encouraged to consult the CRS products and other resources referenced throughout this report.

This report divides AJC partner programs into several groups and subgroups.

Unemployment insurance provides weekly cash payments to workers who have involuntarily lost a job, have a demonstrated work history, and meet other requirements. G rant programs with national scope support employment and training services and have a presence in every state. Competitive grant programs provide employment and training services but tend to be narrower in scope and reach than formula grant programs. The funding from these programs does not necessarily reach every state. Other partner programs are mandatory AJC partners but may not typically provide benefits to individuals or may have a primary purpose other than placing individual jobseekers in employment.

This report focuses on mandatory partner programs in the AJC/One-Stop system with the primary purpose of providing workforce-related benefits to individuals. Some federally funded programs with employment and training components are not required partners with AJCs and therefore are not discussed in this report. As such, the group of programs included in this report may vary from other reviews of federal employment training programs and should not be considered exhaustive.

Unemployment Insurance5

Unemployment insurance (UI) provides a weekly cash payment to workers who involuntarily become unemployed after establishing a requisite work history. There are two programs currently authorized within the UI system:

Unemployment Compensation (UC) Extended Benefits (EB)

Federal laws and regulations provide broad guidelines on UC benefit coverage, eligibility, and benefit determination. The specifics of regular UC benefits are determined by each state. This results in essentially 53 different programs.

When eligible workers lose their jobs, the UC program may provide income support through the payment of UC benefits. Individuals who exhaust UC benefits may be eligible for additional weeks of UI benefits through the permanent EB program, depending on worker eligibility, state law, and economic conditions in the state. No EB benefits were available in FY2016; and, as of the week of July 9, 2017, no EB benefits have been available in any state in FY2017 thus far.

Table 1 provides data on recent outlays from the UC and EB programs.

Unemployment Compensation

The UC program pays benefits to covered workers who become involuntarily unemployed for economic reasons and meet state-established eligibility rules. The UC program generally does not provide UC benefits to the self-employed, those who are unable to work, or those who do not have a recent earnings history. States usually disqualify claimants who lost their jobs because of inability to work, unavailability for work, or a labor dispute. Workers are also typically ineligible if they voluntarily quit without good cause, were discharged for job-related misconduct, or refused suitable work without good cause. To receive UC benefits, claimants must have enough recent earnings to meet their state's earnings requirements.

UC is financed by federal taxes under the Federal Unemployment Tax Act (FUTA) and by state payroll taxes under the State Unemployment Tax Acts (SUTA). Maximum weekly benefit amounts in January 2017 ranged from $133 (Puerto Rico) to $742 (Massachusetts) and, in states that provide dependents' allowances, up to $1,103 (Massachusetts). In April 2017, the average weekly benefit was $348. In most states, regular UC benefits are available for up to 26 weeks.

Extended Benefits

The EB program, established by P.L. 91-373 (26 U.S.C. 3304 note), may extend UC benefits at the state level if certain economic conditions exist within the state. The EB program is permanently authorized, and is triggered when a state's insured unemployment rate (IUR) or total unemployment rate (TUR) reaches certain levels. All states must pay up to 13 weeks of EB if the IUR for the previous 13 weeks is at least 5% and is 120% of the average of the rates for the same 13-week period in each of the two previous years. There are two other optional thresholds that states may choose. If the state has chosen a given option, they would provide the following:

Option 1: an additional 13 weeks of benefits if the state's IUR is at least 6%, regardless of previous years' averages. Option 2: an additional 13 weeks of benefits if the state's TUR is at least 6.5% and is at least 110% of the state's average TUR for the same 13-week period in either of the previous two years; an additional 20 weeks of benefits if the TUR is at least 8%.

In addition to all state requirements for regular UC eligibility, the EB program requires claimants to have at least 20 weeks of full-time insured employment or the equivalent in their base period, and to conduct a systematic and sustained work search. A current listing of states that have triggered on for EB can be found at https://ows.doleta.gov/unemploy/claims_arch.asp .

The EB benefit amount is equal to the eligible individual's weekly regular UC benefits. Under permanent law, the federal government finances 50% of the EB payments and 100% of EB administrative costs through FUTA taxes. States fund the other half (50%) of EB benefit costs through their SUTA taxes.

Employment and Training Programs

The AJC network co-locates and coordinates federally funded employment and training programs. Unlike UI, funding levels for employment and training programs are capped by statute or appropriation level. As such, it is possible that a jobseeker who is eligible for a program may not receive services. Table 3 at the end of this report provides brief descriptions of each AJC partner program and their FY2017 funding levels.

Grants with National Scope

The largest portion of AJC funding is from a group of grants that have a presence in all states. Most of these programs provide funding to state agencies via formula, though the specific funding processes and grant recipients vary by program. This report divides these partner programs with national scope into three groups:

Programs available to all jobseekers , which have no eligibility criteria; Programs targeted by circumstances of job loss , which provide services to workers whose job loss and work history meet certain conditions; and Programs targeted by jobseeker characteristics , which provide services to workers based on their personal characteristics (such as veteran status or disability) rather than their work history or reason for unemployment.

Table 2 at the end of this section summarizes the eligibility criteria for these primary partner programs.

Programs Available to All Jobseekers

The employment and training programs discussed in this section are funded by formula grants to states and do not have eligibility requirements. Funding levels are capped by annual appropriation levels. In times of high demand for services, jobseekers may receive less intensive services or be placed on waiting lists due to limited resources.

Adult Employment and Training Activities

This WIOA-authorized formula grant program provides funds to states for employment and training services for individuals ages 18 and older. It is a universal access system with no additional eligibility requirements other than age. Funds are allotted by formula grants to states (which in turn allocate funds to local entities) to provide training and related services to unemployed or underemployed individuals.

Services include job search assistance, skill assessment, career planning, case management, and training (including occupational skills training and on-the-job training). Training is conducted through a voucher system that allows individuals to attend training at eligible training providers (e.g., community colleges).

Employment Services under the Wagner-Peyser Act of 1933

The Wagner-Peyser Act established the Employment Service (ES) as a system jointly operated by DOL and the state employment security agencies. The central mission of the ES is to facilitate the match between individuals seeking employment and employers seeking workers. ES funds are allotted from DOL to the states through a formula grant. Typically, UI recipients must register with the ES. Jobseekers who are not eligible for UI may also register with the ES.

ES offers an array of services to job seekers and employers, including career counseling, job search workshops, labor market information, job listings, applicant screening, and referrals to job openings. States provide ES services through three tiers of service delivery: self-service, facilitated self-help, and staff-assisted. As the names of the tiers imply, progressively more active staff involvement is required as services range from Internet job postings to career counseling.

Upon the establishment of the Unemployment Compensation (UC) program in 1935, ES offices also began to administer the UC "work test" requirements. These offices monitor UC claimants to ensure that they are able to work, available for work, and actively seeking work. For the recently unemployed, the ES processes UC income support claims while helping the individual find new employment.

Adult Education15

Education activities under the Adult Education and Family Literacy Act (AEFLA) are a mandatory AJC partner. AEFLA provides formula grants to states to fund basic educational services at the high school level and below, as well as English language courses. States typically subgrant federal funds to local providers (such as school districts or community colleges) that provide the actual classes.

Programs Targeted by Circumstances of Job Loss

The programs discussed in this section are available to workers who are involuntarily separated from their jobs and meet other criteria. In some cases, workers who have been notified of a layoff but have not yet been separated from their jobs may also be eligible for these programs.

Dislocated Worker Employment and Training Activities

This program provides formula grants to states for services to dislocated workers. To qualify as a dislocated worker, an individual must have been laid off from employment, sufficiently attached to the workforce (e.g., eligible for unemployment benefits), and unlikely to return to the occupation or industry from which the worker was laid off. Services available under the Dislocated Worker program include job search assistance, skill assessment, career planning, case management, and training (including occupational skills training and on-the-job training).

Approximately 80% of Dislocated Worker funds are allotted by formula grants to states (which in turn allocate funds to local entities) to provide training and related services to qualified unemployed individuals. The remainder of the appropriation is reserved by DOL for National Dislocated Worker Grants, which, in part, provide funds to states or entities that are affected by major economic dislocations, such as plant closures or mass layoffs.

Trade Adjustment Assistance (TAA) Program for Workers Adversely Affected by Foreign Trade17

Workers whose job loss is attributable to outsourcing or increased imports may be eligible for the TAA program. To be eligible for TAA benefits, a group of workers must petition DOL to certify that foreign trade "contributed importantly" to their job loss. Once a group is certified, individual workers may receive benefits through the AJC system. TAA provides reemployment services, training subsidies, and income support while in training. TAA-certified workers age 50 and over who pursue reemployment at a lower wage may participate in a wage insurance program.

Programs Targeted by Jobseeker Characteristics

The programs discussed in this section determine eligibility by workers' personal characteristics. These eligibility requirements may or may not include economic characteristics such as individual or household income.

Vocational Rehabilitation (VR) for Workers with Disabilities18

State VR agencies provide employment-related services to individuals with disabilities. These agencies are funded by a combination of federal formula grants and state funds. To be eligible for VR services, an applicant must establish that (1) he or she has a physical or mental impairment that results in a barrier to employment and (2) that the applicant would benefit from VR services. VR services are customized to each client and may vary. Services include (but are not limited to) counseling, job search assistance, training, and support services in the workplace.

Job Corps20

This primarily residential job training program provides a range of services to low-income individuals between the ages of 16 and 24. The purpose of the Job Corps program is to provide disadvantaged youth with the skills needed to obtain and hold a job, enter the Armed Forces, or enroll in advanced training or higher education. In addition to receiving academic and employment training, youth also engage in social and other services to promote their overall well-being. Services include educational support, work-based learning, counseling, and other support services.

Youth Activities

This WIOA-authorized state formula grant program provides funding for training and related services to certain youth who are in school or out of school. A youth is eligible for services funded by this program if the individual is between the ages of 14 and 21 (or 24 for out-of-school youth) and meets other statutory criteria regarding income (primarily for in-school youth only) and/or barriers to employment.

Eligible participants in a program funded by these grants receive services that provide assistance in achieving academic and employment success through activities that improve educational and skill competencies and foster effective connections to employers. Such services include those involving educational achievement, employment services, linkages between educational achievement and employment, and additional support services.

Community Service Employment for Older Americans (CSEOA) Program21

CSEOA (Title V of the Older Americans Act) is a formula grant program, also known as the Senior Community Service Employment Program (SCSEP), which provides funding to promote part-time employment opportunities for unemployed low-income individuals who are age 55 or older. In addition to the age and income requirements to participate, individuals must generally have limited prospects of securing unsubsidized employment. The CSEOA provides funding to states and national sponsor organizations for subsidized employment in a variety of community-service activities, such as working at community centers, libraries, or schools. Participants in the program may receive training, counseling, transportation, and placement assistance into unsubsidized employment.

Jobs for Veterans State Grants (JVSG) Program22

JVSG provides grants to states to fund state personnel positions that provide employment services to and on behalf of veterans. JVSG-funded personnel are divided into Disabled Veteran Outreach Program (DVOP) personnel and Local Veterans' Employment Representative (LVER) personnel. DVOP personnel provide direct employment services to disabled and other high-need veterans. LVER personnel perform outreach to local employers, conduct employment workshops for veterans, and work with other AJC personnel to provide employment-related services to veterans.

JVSG does not provide funding for training, though DVOP and LVER personnel may refer veteran jobseekers to programs administered by the Department of Veterans Affairs that provide funding for education and training. Veterans also receive priority of service in all DOL-administered employment and training programs for which they qualify.

Competitive Grant Programs

Several competitive grant programs are mandatory AJC partners. Unlike the programs discussed in the prior section, these funding streams may not have a presence in every state.

YouthBuild Program24

Authorized by Section 171 of WIOA, this competitive grant program funds projects that provide education and construction skills training for disadvantaged youth. Participating youth gain work experience, job training, education (a GED or preparation for secondary education), and leadership development by working to rehabilitate and construct housing for homeless and low-income families.

Native American Program

Authorized by Section 166 of WIOA, this competitive grant program provides training and related services to low-income Indians, Alaska Natives, and Native Hawaiians through grants to Indian tribes and reservations and other Native American groups.

Migrant and Seasonal Farmworker Programs

Authorized by Section 167 of WIOA, this competitive grant program provides training and related services, including technical assistance, to disadvantaged migrant and seasonal farmworkers and their dependents through discretionary grants awarded to public, private, and nonprofit organizations.

Reintegration of Ex-Offenders

Authorized by Section 212 of the Second Chance Act of 2007, this competitive grant program supports employment and training services for persons who have been incarcerated or are preparing for reentry.

Other Mandatory Partner Programs

In addition to the previously discussed grant programs, several other federally funded programs are required AJC partners under Section 121 of WIOA. While these programs can support employment and training activities, they may also support activities with other purposes and may have accountability measures that are related to non-employment outcomes. This report does not include funding figures for these programs since only a portion of funding for these programs support employment and training activities.

Community Services Block Grant (CSBG)25

The CSBG provides federal funds to states, territories, and tribes for distribution to local agencies to support a wide range of community-based activities to reduce poverty. In some cases, CSBG funds may support employment and training activities. WIOA specifies that employment and training activities carried out with CSBG funds must partner with AJCs. CSBG is administered by the Department of Health and Human Services.

Perkins Act Postsecondary Activities26

The Carl D. Perkins Career and Technical Education Act provides funds to states to support vocational and technical career programs at secondary and postsecondary institutions. Postsecondary providers that receive Perkins funds can include (but are not limited to) community and technical colleges, vocational schools, adult workforce education centers, and correctional facilities. Perkins Act programs are administered by the Department of Education.

Postsecondary activities supported under this act are a mandatory AJC partner. Unlike some other grant programs that are AJC partners, Perkins funds support institutions and do not provide direct funding to individual students.

Temporary Assistance to Needy Families (TANF)27

TANF block grants are federal grants to states to provide benefits and services to low-income families. The TANF block grant's overall purpose is to "increase the flexibility of states to meet four statutory goals: (1) provide assistance to needy families so that children may remain in their homes; (2) reduce dependency of needy parents on government benefits through work, job preparation, and marriage; (3) reduce out-of-wedlock pregnancies; and (4) promote the formation and maintenance of two-parent families." States may use these funds for a variety of activities to meet these goals. TANF programs are administered by the Department of Health and Human Services.