HHS News Release

HHS Secretary Donna E. Shalala today joined the National Governors Association (NGA) in releasing a report providing recommendations and models to help states design welfare-to-work programs to emphasize jobs for welfare recipients that will last and pay more.

The report, "Working Out of Poverty: Employment Retention and Career Advancement for Welfare Recipients," prepared by the NGA Center for Best Practices with funding from HHS, examines some of the lessons learned from research and identifies promising state welfare-to-work strategies. For successful programs, the report concludes, states need to assess where jobs are available, work with employers on their needs for reliable workers, enhance job retention by securing support services for the new workers, and explore careers that offer wage advancement.

"The Clinton administration is committed to making welfare reform a success. We measure that success in large part by parents on welfare getting, keeping and earning more in jobs," said Secretary Shalala. "This report, prepared by the NGA at the request of HHS, offers strong principles and innovative programs that states are doing effectively now."

As many welfare recipients leave the rolls, a key challenge for states is ensuring that they have stable employment so they won't come back. States are likely to be most successful at promoting job retention and career advancement if they respond to both the needs of recipients and employers, the report concludes. The report also outlines several approaches for states to consider to promote job retention among newly hired welfare recipients including: ongoing case management to help participants navigate the workplace, household problems, and the social service network; effective mentoring programs; supportive short-term payments or loans for 'emergency' situations that might otherwise lead to job loss and reliance on welfare; improved access to support services, such as child care, transportation, health care, and housing; and expanded use of federal and state earned income tax credits to make work pay. It also urges states to promote career advancement among welfare recipients by changing the design of government-sponsored job skill development programs to reflect a strong "Work First" orientation, improve the access to education and training outside of work, promote learning at the workplace, and help workers access career ladders.

"We know from HHS and NGA reports that states have started to make the investment in the critical supports for welfare reform to succeed, such as child care, transportation and on-the-job training, and build partnerships with private employers, but more needs to be done," said Olivia A. Golden, HHS assistant secretary for children and families. "The greatest challenge for states is to help those parents with the hardest obstacles for employment to have the opportunity for self-sufficiency by using all available resources, such as the Department of Labor's Welfare to Work grants, Access to Jobs Initiative and state funds."

"This report offers creative strategies and promising programs that can help states compete for the new High Performance Bonus. This bonus to states that move more recipients into jobs, retain jobs and earn more will be awarded to the states for the first time this fall," added Golden.

In its new technical assistance role, HHS plans to provide more support to states with reports, conferences and other collaborative efforts to promote creative strategies and promising welfare-to-work programs. The report is available on the ACF web site: www.acf.dhhs.gov.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Michael Kharfen, (202) 401-9215