The Michigan Works! Network can protect them, but only if we stay whole.
A proposed rule from the U.S. Employment and Training Administration would have a devastating impact on the structure and delivery of workforce services in Michigan, leaving job seekers and employers with a disjointed, less efficient structure and fewer staff to serve them.
The proposed changes impact Wagner-Peyser Act staffing, and recommend disrupting services to job seekers and employers by dismantling the successful “One-Stop Model” of workforce development and allowing only state merit staff to provide Michigan’s Employment Service support at locations convenient to state merit staff, not to job seekers.
We must maintain the Michigan Works! network’s demonstration status, allowing it to continue successful Employment Service delivery and support to Michigan’s job seekers and employers without disruption.
The Impacts of Proposed Staffing Rule Change
Moving Wagner-Peyser funding out of the Michigan Works! System would have the following impacts:
- Impacts on Michigan Residents
- 80% of MWAs would be forced to reduce services to Veterans without Wagner-Peyser funding.
- 62% of MWAs would be forced to eliminate Refugee and Immigrant Navigator Services, while another 18% would reduce them.
- 63% of MWAs would be forced to eliminate Clean Slate services, while another 31% would reduce them.
- In the past four years, more than 9,000 career awareness events have been held by MWAs. 86% of MWAs would be forced to reduce these services without Wagner-Peyser funding.
- MWAs provided 43,000 workshops for job seekers in the past four years. 81% of MWAs indicated that these workshops would be reduced, with a majority reducing them by at least 50%. With an average of 10 attendees per workshop, that is a potential of over 108,000 job seekers that will no longer receive this service.
- Impacts on Business
- Michigan Works! System has provided more than 141,000 services to businesses.
- 88% of MWAs state that the services provided to businesses will be reduced without this funding, while one said that they would be totally eliminated.
- In the past four years, more than 3,600 services have been provided by MWAs to Industry-Led Collaboratives. 87% of MWAs would be forced to reduce these services without Wagner-Peyser funding.
- In the past four years, more than 7,500 job fairs have been held by MWAs to support employers’ hiring activities. 100% of MWAs would be forced to reduce the number of job fairs they could provide. More than half of those MWAs would reduce job fairs by at least 50%.
- 88% of MWAs state that support for GoingPro Talent Fund provided to businesses will be reduced without this funding, while two said that they would be totally eliminated.
- Impacts on Customer Service
- 62% of MWAs report that the number of centers in their region may have to be reduced. It is estimated that at least 20 of the 99 American Job Center locations would close, primarily in rural areas.
- Almost half of the 99 American Job Center locations in Michigan would have to reduce the number of hours they can operate.
- Over 87% percent of MWAs will be forced to reduce their service center operations, while 12% report they will be forced to eliminate these essential services entirely. This includes:
- 100% of MWAs report that staffing and referrals to other programs would be impacted.
- 100% of MWAs report that virtual services would be impacted.
- 93% of MWAs report that greeting the public would be impacted.
- 87% of MWAs report that answering the phones would be impacted.
- 81% of MWAs report that computer availability and resource room resources would be impacted.