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TWC Employment Services 2002-2003 Exit Cohort The Texas Workforce Commission's (TWC) Employment Services (ES) is the State's largest employment program designed to help employers locate qualified workers. The state's 28 Local Workforce Development Areas (LWDAs), 286 local Texas Workforce Centers and satellite offices comprise Texas Workforce Solutions. The Texas Workforce Solutions network provides employers and job seekers access to local and statewide integrated services. is the latest tool available to employers and job-seekers for connecting electronically. is a free, Internet-based program where employers can post job openings and job seekers can post their resumes and view those openings. Job seekers are matched with employers' job postings based upon several factors such as occupation, experience, and pay rate. Any resulting positive matches generate a notification to the employer, if requested, and to the job seeker. Since its introduction in May 2004, has been instrumental in facilitating the connection between job seeker and employers in Texas. As of 2005, a total of 97,240 employer business units and 590,849 active job-seekers had used the system resulting officially in 198,712-recorded hires (Solutions, 2005). Employers and job-seekers may also view the system without officially registering. Countless other successful matches may have resulted from informal use. The success of was recently recognized by the Center for Digital Government. It awarded first place to in the government-to-business category of Digital Government Achievement Awards. This national research and advisory institute honors organizations that excel in developing creative, advanced government Web site applications. Winning first place was particularly rewarding for, since the Center received more than 300 combined entries for all the award categories. Seed Records ES seed records were extracted from The Workforce Information System of Texas (TWIST). There were 2,582,232 duplicated Social Security Numbers (SSN) in the ES seed record file. Of these, 697,953 were unique SSNs. This report includes ES participants who are veterans. For specific follow-up information on Veterans, please see the chapter on Veterans elsewhere in this report. The most common services provided to ES participants were Labor Market Information and Miscellaneous Services comprising almost 49 percent of all services rendered in PY2002. It is important to note that many participants received multiple services during their time in the ES program. Thus, there are more seed records than there are participants in the file that was analyzed for this report. In 2002-2003, the ES program provided 34 different services grouped into eight categories ( Job Seeker Services):

Automated Student and Adult Learner Follow-Up System Final Report 2004


Assessment/Case Management, Intake/Orientation Services, Job Search, Testing, Registration, Referral to Training, Contacts (referrals to job openings), and Other Services (Table 1). To assign each person receiving multiple services to a type of service, these participants will be counted separately in our analysis of service groups, but will only be counted once in computing quarterly earnings. Table 1. ES Seed Records by Type of Service (Duplicated) N Type of Service Assessment/Case Management Services

Job Readiness/Pre-Employment Skills Support Services Information (Internal) EDP/IEP/ISS Development Assigned Case Manager Vocational Guidance Services Received Case Management Services Other Post-Employment Service Counseling Subtotal

Type of Service Job Search


33,720 19,422 371,987 858,197 13,765 15,619 11,199 40,181 1,364,090 7,958 810 3,799 54 12,621 6,436 128,983 80,399 25,655 241,473 2,582,232

47,233Resume/Interview Preparation 346,758Job Search Assistance/Job Search 10,649Automated Labor Exchange 831Labor Market Information 19,355Job Development 10,454Job Search Workshop 33,095Contact Made to AJB Job 39,084Job Placement 507,459Subtotal

Intake/Orientation Services

WPRS Orientation WPRS Exemption Outreach/Intake/Orientation Other Orientation Subtotal

Other Services

303Other Activity Contact 4,807Bonding Assistance 43,089Tax Credit Eligibility N/ACall-In 48,202Subtotal


Referred to Federal Training Referred to State/Local Training Referred to WIA Referred to Job Corps Miscellaneous Services Referral to Educational Services Subtotal


2,366Job Browse Contact 1,747Job Seeker Match Contact 4,410Job Seeker Browse Contact 153Job Posting Match Contact 397,524Subtotal 2,187 408,387Total

Note: Cells that are based on fewer than 5 observations are assigned a value of "N/A" to protect the privacy of cohort members.

Automated Student and Adult Learner Follow-Up System Final Report 2004


The seed records were linked to multiple TWC Unemployment Insurance (UI) wage records based on the exit date of each participant to determine post-exit labor market outcomes. Participants who were found working and had earnings greater than or equal to $25,000 during the target quarter were excluded from the analysis to reduce the possibility of skewing the data. Linkages also were conducted with the Texas Department of Criminal Justice and Texas Bureau of Vital Statistics (TBVS). Those found incarcerated or deceased were excluded from further analysis resulting in 697,953 useable records. Please use the following in interpreting the results of this study: Q-1 Q+1 Q+2 Q+3 = Quarter prior to enrollment with the ES program. = 1st quarter post-exit. = 2nd quarter post-exit. = 3rd quarter post-exit.

Seed records were linked to the Texas Higher Education Coordinating Board's (THECB) Fall 2003, public postsecondary master enrollment records to determine if the former participants are now enrolled in a public college or university in Texas. Due to restrictive interpretations of the Family Educational Rights and Privacy Act (FERPA), the THECB could not return participant level data to TWC. However, the following summary tables showing the results of the linkages were provided. The seed records also were linked to U.S. Department of Defense (DoD), U.S. Office of Personnel Management (OPM), and U.S. Postal Service (USPS) to determine federal employment during Q+2. Earnings data were obtained from DoD, OPM and USPS, however, the data were not compatible with quarterly earning reported in the UI wage records and were excluded in the computation of quarterly earnings shown in this report. The calculation of employment retention and earnings gains measure does not include federal employment in Q+3, because federal employment data for that period was not obtained. Finally, seed records were linked to TWC's Unemployment Insurance (UI) Benefits database to determine if the former participants were unemployed and receiving UI benefits. Data from the UI Benefits file are used for documentation purposes only and were not used in calculating any performance measures. Results Table 2 shows that results for more than 71 percent of the cohort were documented through electronic record linkages. Almost 61 percent were found working and/or pursuing postsecondary education. More than 8 percent were found receiving UI benefits and close to 29 percent were not located. Those not found may still be working. UI coverage does not extend to family farms and ranches, churches and nonprofit organizations, or to independent contractors or self-employed persons. It may also be possible that many of these individuals left Texas for jobs and/or pursuit of education.

Automated Student and Adult Learner Follow-Up System Final Report 2004


Table 2. Summary of Record Linkages Record Linkages

TWC UI wage records and/or Texas Higher Education Coordinating Board Master Enrollment File US Department of Defense US Office of Personnel Management US Postal Service Texas Department of Criminal Justice Texas Bureau of Vital Statistics TWC Unemployment Insurance Benefits Not Located Total


425,139 2,601 1,793 672 9,241 1,291 57,191 200,025 697,953

% of Cohort

60.9 0.4 0.3 0.1 1.3 0.2 8.2 28.7 100.0

Table 3 shows employment and earnings in Q+2 by Service Group for all working. Employment ranged from a high of almost 65 percent for those receiving Contacts services to a low of 54.1 percent for those who received Training. Participants in Intake/Orientation Services had the highest median quarterly earnings despite receiving services that are not specific to assisting them find employment. Additional study is required to determine the variables contributing to the success of these participants. Median earnings were used in calculating quarterly earnings because they are less affected by extreme values. Overall, more than 60 percent of the cohort was employed in Q+2 with median quarterly earnings of $3,616. Table 3. Employment and Earnings in Q+2 by Service Group Median Working % Qtr. in Q+2 Working Earnings

74,406 242,917 74,037 10,411 12,662 564 414,997 64.5 59.9 59.2 57.4 56.8 54.1 60.4 $3,307 $3,674 $3,700 $4,287 $3,597 $3,747 $3,616

Service Group

Contacts (Job Referrals) Job Search Other Services Intake/Orientation Services Assessment/Case Management Services Training Total


115,286 405,560 125,111 18,132 22,290 1,042 687,421

Table 4 shows employment and earnings by gender for all working. Median earnings of males ($4,319) in the target quarter were considerably larger than for females ($3,067). Overall employment rate for the cohort two quarters (Q+2) after exit was 56.6 percent with median earnings of $3,701.

Automated Student and Adult Learner Follow-Up System Final Report 2004


Table 4. Employment and Earnings of All Working at Q+2 by Gender Working inQ+2 % Working Median Qtr. Earnings



Male 382,117 231,450 60.6 $4,238 Female 305,301 183,545 60.1 $3,003 Unknown N/A N/A 66.7 $6,928 Total 687,421 414,997 60.4 $3,616 Note: Cells that are based on fewer than 5 observations are assigned a value of "N/A" to protect the privacy of cohort members.

Figure 1 shows that ES participants earned more than enough ($3,616) two quarters after exit to surpass the FY 2003 quarterly federal poverty threshold for a family of two ($3,030). The quarterly federal poverty threshold was computed by dividing the annual poverty guideline for a family of two of $12,120 by 4. The federal poverty guidelines can be found at

Figure 1. Median Qtr. Earnings in Q+2

4000 $3,616

$3,030 3000

2000 ES Fed Pov Threshold

Table 5 shows employment and earnings for all working in Q+2 by Local Workforce Development Area (LWDA). South Plains LWDA had the highest re-employment rate at 68.1 percent followed closely by the Panhandle LWDA at 67.3 percent and North Texas LWDA at 66.8 percent. Excluding participants whose locations were "Unknown", participants from Dallas LWDA had the highest median earnings at $4,233 followed by Rural Capital LWDA at $4,144 and North Central LWDA at $4,116. We suspect the differences in employment and earnings between regions are more a function of the robust urban economies rather than policy differences between workforce boards; however, more study would be necessary to confirm this.

Automated Student and Adult Learner Follow-Up System Final Report 2004


Table 5. Employment and Earnings of All Working in Q+2 by LWDA % Working in Q+2 Working

8,758 9,303 3,362 9,117 11,589 4,078 6,280 3,176 28,410 9,872 3,830 2,575 11,229 20,371 22,058 4,034 13,545 11,686 86,950 22,802 8,923 9,419 12,509 17,433 2,193 60,333 6,007 4,793 362 414,997 68.1 67.3 66.8 65.9 64.8 64.3 64.2 63.9 63.9 63.6 63.4 62.9 62.4 62.0 61.7 61.5 60.7 60.6 59.8 59.0 58.4 58.2 58.1 57.7 57.5 56.7 56.3 55.7 26.5 60.4


South Plains Panhandle North Texas Permian Basin Coastal Bend Golden Crescent West Central Concho Valley Alamo Central Texas South Texas Brazos Valley Southeast Texas East Texas Tarrant County Heart of Texas Capital Area Rural Capital Gulf Coast North Central Deep East Texas Cameron County Upper Rio Grande Lower Rio Grande Valley Texoma Dallas North East Texas Middle Rio Grande Unknown Total


12,854 13,818 5,031 13,837 17,898 6,341 9,788 4,968 44,481 15,529 6,041 4,093 17,997 32,833 35,733 6,558 22,326 19,294 145,340 38,626 15,276 16,193 21,536 30,238 3,813 106,327 10,675 8,610 1,367 687,421

Median Qtr. Earnings

$3,078 $3,508 $3,587 $3,416 $3,640 $3,390 $3,070 $2,830 $3,657 $3,317 $2,912 $3,521 $3,319 $3,398 $3,986 $3,344 $4,099 $4,144 $4,093 $4,116 $3,114 $2,678 $2,860 $2,664 $3,751 $4,233 $3,033 $2,502 $4,675 $3,616

Table 6 shows that Hispanics had the highest re-employment rate in Q+2 at 62.8 percent followed closely by Hawaiian Natives or Pacific Islanders at 61.4 percent. Asians had the lowest re-employment rate but the highest median quarterly earning at $4,590. Care should be taken in comparing these results because of the small numbers in some categories.

Automated Student and Adult Learner Follow-Up System Final Report 2004


Table 6. Employment and Earnings in Q+2 by Ethnicity Median % Working in Qtr. Q+2 Working Earnings

141,090 602 98,795 150,534 1,898 5,311 16,767 414,997 62.8 61.4 60.0 59.2 54.0 51.3 58.3 60.4 $3,371 $3,998 $3,149 $4,196 $3,783 $4,590 $3,976 $3,616 980 164,784 254,184 3,514 10,348 28,753 687,421


Hispanic Hawaiian Native or Pacific Islander Black White Native American Asian Unknown Total



Employment and earnings in Q+2 varied by the level of education of ES participants. As shown in Table 7, the higher the education level, the higher the re-employment rate and the higher the median quarterly earnings post-exit. ES participants whose level of education was beyond high school had significantly higher median earnings ($4,747) than those with less than high school ($2,674). Table 7. Employment and Earnings in Q+2 by Level of Education Median Qtr. Earnings

$3,499 $4,747 $2,674 $3,694 $3,616

Level of Education

High School Beyond HS Less than HS Unknown Total


337,394 197,133 145,797 7,097 687,421

Working in Q+2

211,304 122,682 77,184 3,827 414,997

% Working

62.6 62.2 52.9 53.9 60.4

Table 8 shows that employment retention for the cohort from Q+2 to Q+3 was over 85 percent with earnings gains of $425. Exiters receiving Intake/Orientation Services demonstrated the highest employment retention rate at almost 89 percent and highest earnings gains of $663. Exiters under this category are probably older with longer labor market histories and more extensive knowledge, skills, and abilities (KSA). Additional study is required to determine the characteristics of this group that may have contributed to their greater success. Care must be exercised in generalizing from these results because of the small number of observations in some categories.

Automated Student and Adult Learner Follow-Up System Final Report 2004


Table 8. Employment Retention and Earnings Gains for All Working from Q+2 to Q+3 by Service Group Working in Q+2 and Working in Q+2 Q+3 Median Median Qtr. % Qtr. Earnings n % n Earnings Working Earning Gains/ (a) Working (c) Q+2 (c/a)*100 Q+3 <Losses> (d-b) (b) (d)

57.4 59.9 64.5 59.2 54.1 $4,287 9,251 $3,674 208,277 $3,307 63,313 $3,700 62,835 $3,747 472 88.9 85.7 85.1 84.9 83.7 $4,950 $4,107 $3,653 $4,125 $4,091 $663 $433 $346 $425 $344

Service Group


Intake/Orientation 18,132 10,411 Services Job Search 405,560 242,917 Contacts 115,286 74,406 Other Services 125,111 74,037 Training 1,042 564 Assessment/Case Management Services 22,290 12,662 Total 687,421 414,997

56.8 60.4

$3,597 10,446 $3,616 354,594

82.5 85.4

$4,079 $4,041

$482 $425

Many of the workforce development system customers who receive basic services will find jobs on their own, without regard for state-level or board-level targets. Thus, for those receiving basic services, there is no real expectation about the industry distribution of their employment. However, among those receiving more services (especially vocational training and job-search assistance), a significant portion should be employed in targeted sectors as an indicator of better alignment between a board's strategic plan and intensive case management. As greater emphasis is placed on the integration of workforce and economic development, boards should strive to align regionally targeted industries with the Governor's list or regionally identified industry sectors. Table 9 shows that two (Business Support Services, and Nonresidential Building Construction) of the top 10 industries of employment for the 2002-2003 ES exit cohort fell into the core, ancillary or support NAICS industries for any of the key clusters identified by the Governor's office. Since alignment with the Governor's clusters was not expected in 2002-2003, we did not analyze the data at the board level. However, in future years, we most likely will provide a breakout of the data by board, differentiating those who received basic services from those receiving intensive case management. At least for those customers in the latter, there will likely be a growing expectation of placements better aligned with the key sectors. Employment Services was the largest industry of employment in Q+2. Employment Services include Temporary Employment Agencies which many employers use to find skilled worker to try out first before hiring permanently. Employers also use Temporary Employment Agencies to augment staff during peak demand seasons without being saddled with paying benefits for permanent staff. Limited-Service Eating Places and

Automated Student and Adult Learner Follow-Up System Final Report 2004


Elementary and Secondary Schools rounded out the top three (Table 9). These industries are represented by the 4-digit North American Industry Classification System (NAICS). Table 9. Top 10 Industries of Employment in Q+2 by 4-Digit NAICS % of All Working

11.6 4.2 3.6 2.9 2.6 2.3 Advance Technology and Manufacturing (Support ) 2.3 2.1 1.9 1.7 Energy (Support)

Industry Sector

Employment Services Limited-Service Eating Places Elementary and Secondary Schools Other General Merchandise Stores Full-Service Restaurants Nonresidential Building Construction Home Health Care Services Business Support Services Building Equipment Contractors Grocery Stores


47,354 16,973 14,728 11,809 10,508 9,417 9,204 8,343 7,882 7,035

Governor's Cluster

References Texas Workforce Solutions, Vol. 2, No. 4, June 2005.

Automated Student and Adult Learner Follow-Up System Final Report 2004


Report Card on Employment Services (ES) 2002 - 2003 Exit Cohort

Working Ethnicity N 141,407 92,252 132,813 1,780 4,872 563 15,421 389,108 % 55.6 56.0 59.1 50.7 47.1 57.5 53.6 56.6 Median Qtr. Earnings $4,314 $3,209 $3,425 $3,851 $4,746 $4,035 $4,125 $3,701 Working & Persuing High Ed. Median Qtr. Earnings $2,569 $2,369 $2,520 $2,644 $3,065 $2,712 $2,546 $2,516 Subtotal for All Working Median Qtr. Earnings $4,196 $3,149 $3,371 $3,783 $4,590 $3,998 $3,976 $3,616 Pursuing Higher Education Only Not Verified Total Usable Records

N 9,127 6,543 8,277 118 439 39 1,346 25,889

% 3.6 4.0 3.7 3.4 4.2 4.0 4.7 3.8

White Black Hispanic Native American Asian Pacific Islander Unknown Total ES Population

N 150,534 98,795 141,090 1,898 5,311 602 16,767 414,997

% 59.2 60.0 62.8 54.0 51.3 61.4 58.3 60.4

N 5,590 3,722 4,572 81 374 26 843 15,208

% 2.2 2.3 2.0 2.3 3.6 2.7 2.9 2.2

N 98,060 62,267 79,196 1,535 4,663 352 11,143 257,216

% 38.6 37.8 35.2 43.7 45.1 35.9 1.6 37.4

N 254,184 164,784 224,858 3,514 10,348 980 28,753 687,421

% 37.0 24.0 32.7 0.5 1.5 0.1 4.1 100.0

Points of reference: In target quarter, federal definition of poverty for an individual supporting two family members = $3,030/qtr. (US Department of Health and Human Services, 2003 statistics). Full-time, full-quarter employment at minimum wage = $2,678 ($5.15 x 40 hrs/wk x 13 wks/qtr). Persons identified as incarcerated through linkages with Texas Department of Criminal Justice (TDCJ) records (N=9,241) were excluded from these data. Persons identified as deceased through the TX Bureau of Vital Statistics (TBVS) (N=1,291) were excluded from these data. Persons going to school may not be able to work full-time. Therefore, the numbers, percentages, and median earnings of those working only were displayed separately in the shaded boxes from those working and going to school at the same time. Subgroups are combined respectively in the unshaded cells to the immediate right and are not double counted in totals in right-most column. 57,191 students/participants were found receiving Unemployment Insurance Benefits at Q+2. Working = if located in Texas UI wage record for target quarter (Q+2, earnings > $0), or located through linkages to military (DoD), federal civil service (OPM), or Postal Service (USPS) records. Quarterly earnings are available for those located through Texas UI wage record linkages only. Quarterly earnings for USPS, DOD, OPM were not provided and therefore not included. Not verified means the former students/participants were not found in TWC's UI wage database or in DoD, OPM, USPS, TDCJ, TBVS, or THECB master enrollment file. LMCI did not have access to Texas Youth Commission records to determine if former students/participants were incarcerated in TYC facilities. n/a is used to protect confidentiality in case of small cell size (less than 5).

414,997 persons were found to be working. This is 60.4% of the exit cohort. Of those found to be working, were located through linkages with: N % 409,931 2,601 1,793 672 414,997 98.8 TWC UI Wage records 0.6 Department of Defense records 0.4 OPM (civil service) records 0.2 Postal Service records 100.0 Total Found Working Median Qtr. Earnings $2,655 $1,606 $2,996 $3,075 $1,936 $6,775 $1,521 $2,932

According to record linkages with the Texas Higher Education Coordinating Board's master enrollment file, 41,097 persons were found to be enrolled in a public postsecondary institution in Texas. This is 5.97% of this exit cohort. Of those found to be enrolled in Texas postsecondary institutions % in Fall 2003, were found enrolled in: N 29,501 11,484 112 41,097 71.8 Community and/or Technical Colleges 27.9 Universities 0.3 Health Science Centers 100.0 Total Found Enrolled in a Public Postsecondary Institution in Texas

Industry of Employment Employment Services Limited Service Eating Places Elementary and Secondary Schools Other General Merchandis Stores Full Service Restaurants Nonresidential Building Construction Home Health Care Services Business Support Services

N 47,354 16,973 14,728 11,809 10,508 9,417 9,204 8,343

% of All Employed 11.6 4.2 3.6 2.9 2.6 2.3 2.4 2.3

Public Postsecondary Institution Houston Community College Austin Community College South Texas College El Paso Community College Dist Texas Southern University San Antonio College Central Texas College University Of Houston

N 1,637 1,203 1,157 1,122 897 850 791 746

% of All Enrolled

Program of Study (Major)

N 5,944 3,208 3,170 2,274 1,453 1,186 1,036 808

% of All Enrolled 14.5 7.8 7.7 5.5 3.5 2.9 2.5 2.0

4.0 Undeclared 2.9 Liberal Arts and Sciences Studies 2.8 General Studies Registered Nurse Training (RN 2.7 Business Administration and 2.2 Management, General 2.1 Business/Commerce, General 1.9 Multi-/Interdisciplinary Studies 1.8 Licensed Voc. Nurse Training


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