Study of Jobs Program Shows Largest Savings in Welfare Costs
HHS Secretary Donna E. Shalala today released preliminary results from a study of the Job Opportunities and Basic Skills Training (JOBS) program in Georgia, Michigan and California. The study, by the Manpower Demonstration Research Corporation, shows that the three work-oriented programs produced the largest welfare savings measured to date and resulted in large increases in the number of people working.
"This is the strongest evidence to date that well-designed and well-implemented welfare-to-work efforts can reduce welfare costs and move welfare recipients into the workforce," said Secretary Shalala. "This study proves that a dedicated investment in moving welfare recipients to work is effective and can reduce the burden of welfare costs for the American people. Our challenge now is to enact real, meaningful welfare reform legislation that can help more single parents achieve self-sufficiency."
The study of JOBS programs participants in Atlanta, Ga., Grand Rapids, Mich., and Riverside, Calif., reports that, two years after entry into the program, participants were receiving 22 percent less Aid to Families with Dependent Children benefits and were 24 percent more likely to be employed. Participants also received 14 percent less food stamp benefits and had 26 percent higher earnings. These results were obtained for JOBS programs that placed a strong emphasis on immediate employment. The three sites differ widely in grant levels, economic conditions and welfare caseloads, showing that JOBS can be a highly effective program in many different environments.
"These results reinforce the President's plan, and the approach of focusing on work while giving states the resources to get the job done," said Mary Jo Bane, HHS assistant secretary for children and families. "States need resources for employment services and child care in order to help families achieve independence. Without this investment, states will have less support to help families succeed."
The results for work-oriented programs were more impressive than a second group which stressed adult basic education. This approach produced a smaller reduction in welfare savings, although longer follow-up may be necessary to reveal more significant effects.
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