Report prepared by the subcommittee staff to the select subcommittee on labor of the committee on education and labor of the house of representatives of the USA on the role and mission of the federal-state employment service in the American economy.

Annotation The proper matching of workers with job openings is essential for a well-functioning market economy. In recent years, more than 10 percent of the U.S. workforce search for jobs at any one time. The federal and state governments have long recognized the importance of assisting in the job search process. In 1933, the Wagner-Peyser Act was established to provide federal funding to states to operate a nationwide network of public employment offices. Since enactment, labor exchange (e.g., job finding and placement) services under the Wagner-Peyser Act have been available universally to employers and job seekers without charges or conditions. Today, this network includes more than 1,800 local offices of State Employment Security Agencies that are affiliated with the U.S. Employment Service (ES). The Workforce Investment Act (WIA) of 1998 amended the Wagner-Peyser Act to be part of the one-stop delivery system, which provides universal access to core (i.e., labor exchange) services and Title I adult and dislocated worker programs. The one-stop centers provide services to both job seekers and employers. For the job seeker, services include assessment, counseling and testing, job search workshops, and job placement. For employers, services include job order taking, recruitment, screening, and referral of job seekers.