State's workforce centers need to do a better job helping jobless, a new audit concludes

At a time when 217,000 Minnesotans are looking for work, the state needs to do a better job integrating the assistance it provides to job-seekers.

That's the conclusion of a report released Wednesday by the state's Legislative Auditor, which was directed by the Legislature last year to study Minnesota's so-called workforce programs.

The state's unemployment rate stands at 7.4 percent and economists expect it to reach 8 percent at some point this year.

The state, which operates 49 workforce centers across Minnesota, hasn't fully integrated the centers with unemployment insurance, education a d training, which means some clients haven't gotten as much help as they needed, the audit concluded.

Authority over the centers and their funding is fragmented and some workforce center clients told the auditors they haven't gotten enough assistance in connecting with potential employers.

The auditors reported that 86 percent of workforce program clients were generally satisfied with the services they received.

Fewer than half of clients interviewed by auditors reported that they were satisfied with the services they received, but the report found that they were more successful finding jobs than people who didn't use the workforce centers.

Workforce centers are one-stop that provide such services as an online job bank and workshops on résumé writing and effective interviewing, services offered to all unemployed Minnesotans. Other services, including training to upgrade skills, are available only for people who meet eligibility criteria.

Funding comes largely from a mix of federal and state sources. In fiscal year 2009, Minnesota spent about $234 million on workforce services, excluding one-time federal money.

Officials of DEED generally agreed with the conclusions of the report and said they are working to address the shortcomings.