Legislation Would Help Businesses and Job Seekers Through
Highly Successful Workforce Development Programs
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Thad Cochran (R-MS) today introduced bipartisan legislation that would help Americans find new jobs and update their skills through on-the-job training (OJT) programs. The On-the-Job Training Act of 2015 authorizes the Department of Labor to award competitive grants to establish and support local OJT programs, which have been demonstrated to be the most effective training model to help people gain the skills they need to get and keep jobs.
“This legislation is about getting Americans back to work with the skills they need in today’s economy,” said Shaheen. “On-the-job training programs are a highly effective way to boost local economies and help the long-term unemployed get their careers back on-track. These programs have been a success in New Hampshire and across the country and this legislation would expand them to keep America’s workforce competitive.”
“In times of economic uncertainty, we should focus on programs with a proven track record of helping businesses and creating jobs. On-the-job training programs work. They connect employers with future employees and ensure that they have the skills needed for career advancement in many fields,” Cochran said. “I’m pleased to join with Senator Shaheen to promote this important, bipartisan legislation.”
In on-the-job training programs, participating employers sign a contract with a local workforce board agreeing to hire workers that need training. In exchange, the employers are reimbursed for a percentage of the wages they pay the employees undergoing training, until the workers gain the skills they need for the new occupation. The participating businesses are expected to keep the newly trained employees on after their on-the-job training has completed.
Last year, Senator Shaheen secured passage of two on-the-job training provisions as part of the Workforce Innovation and Opportunity Act that became law. The first increased the amount that businesses participating in on-the-job training can be reimbursed for wages they pay employees hired under the program and the second would enable more young people to participate in on-the-job training programs.
On-the-Job Training has the best results of all training programs that are part of the Workforce Innovation and Opportunity Act. In 2013, 88 percent of OJT participants were still employed at their training sites or in other jobs three months after having finished the program, and 79 percent were still employed one year later.
On-the-job training programs have already demonstrated success helping the unemployed launch into new careers in New Hampshire, as demonstrated in this video made by New Hampshire Works featuring employers and employees who have used the program.
The bill text can be found here.