EMBARGOED FOR RELEASE UNTIL: 7 A.M. EDT
Friday, July 7, 1995
Contact: ACF Press Office (202) 401-9215
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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Note: All HHS press releases, fact sheets and other press materials
are available at http://www.hhs.gov/news.
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