TEGL 05-25: The Department of Labor is encouraging states and local workforce boards to explore new ways to innovate and modernize workforce services. By using existing WIOA flexibilities and waiver authority, workforce leaders can create more responsive, effective, and industry-aligned programs. Here’s what workforce professionals need to know:
1. Focus on Industry-Driven Strategies
Workforce programs should be guided by the skills and hiring needs of local employers. This means:
- Expanding Registered Apprenticeships and other work-based learning opportunities.
- Aligning training programs with regional career pathways.
- Targeting resources toward employer-led upskilling initiatives in priority industries.
2. Empower Worker Mobility
Individuals should be able to see a clear path to better-paying jobs and economic independence. Workforce boards can:
- Use AI and labor market data to guide participants’ career decisions.
- Identify valued credentials to support informed choices.
- Integrate competency-based assessments and digital tools to help workers advance based on skills, not just experience.
3. Build Integrated Systems
Workforce systems should be user-friendly and connected. That means:
- Aligning funding streams and standardizing service delivery.
- Streamlining intake processes and digital tools for frontline staff.
- Offering seamless services for employers seeking talent across the state or region.
4. Promote Accountability and Results
Publicly funded programs must deliver measurable outcomes:
- Remove ineffective training providers and redirect funding to high-performing programs.
- Use pay-for-performance contracts to tie resources to results, including employment, earnings, and credential attainment.
- Strengthen data linkages to evaluate the ROI of workforce investments.
5. Encourage Flexibility and Innovation
The workforce system must be adaptive and forward-looking, particularly as AI and other technologies reshape labor markets. Boards can:
- Pilot new programs using Governor’s Reserve and Rapid Response funds.
- Implement Workflex plans to approve local area waivers quickly.
- Invest in mobile AJCs, virtual services, and digital career tools to reach workers wherever they are.
- Test new models of training and reskilling that respond to economic shifts in real time.
6. Maximize Waiver Opportunities
States are encouraged to request waivers for WIOA statutory or regulatory requirements to:
- Streamline board governance and operations.
- Expand services for in-school youth through Individual Training Accounts and work experiences.
- Allow local areas to focus on the services that best meet community needs rather than providing all 14 youth program elements.
- Increase pay-for-performance funding caps and provide supportive services post-exit to ensure employment retention.
7. Funding Flexibility and Braiding
WIOA provides multiple avenues to stretch resources:
- Transfer funds between Adult and Dislocated Worker programs to meet shifting needs.
- Braid funds from WIOA, TANF, and CTE programs to provide integrated, cost-effective services.
- Use statewide reserves and rapid response funds for pilot programs, work-based learning, and regional initiatives.
Bottom Line for Workforce Professionals
This TEGL is a call to action: rethink what’s possible, take advantage of WIOA flexibilities, and modernize the workforce system. By prioritizing industry alignment, worker mobility, integrated systems, accountability, and innovation, workforce professionals can create smarter, more effective services that meet both participant and employer needs while preparing for the future economy.
