PETITION OF:

SECTION 1. Purpose.
The purpose of this legislation is to develop a set of three types of information to assist the citizens of the Commonwealth in understanding important developments in state and sub-state labor markets. The information produced under these provisions would be used to formulate a wide range of employment, unemployment insurance, dislocated worker, contingent employment, labor shortage, and education and training programs directly linked to labor market outcomes.

SECTION 2. Establishing a Household Based Labor Force Survey.
(a) Purpose of the survey: This section will establish a new household based labor force survey in the Commonwealth in order to develop policies and programs which will improve the material level of well-being of Massachusetts workers and their families. This survey will be modeled after the National Current Population Survey (CPS) which provides policy makers with up to date and accurate information on a wide range of labor force, employment and earnings developments. Because the CPS sample size in Massachusetts has been cut nearly in half there is a need for a state based survey. The reduced sample sizes means that little up to date information on the economic well-being of State residents is available. A direct result of this lack of information is that since January, 1996, the unemployment rates released each month by the Massachusetts Department of Employment and Training are no longer based on the direct findings of the CPS. Instead, the data are derived indirectly from an administrative method that is not based on the actual employment status of state residents in any given month. This legislation would establish a household survey designed to measure important labor force developments in the state and inform public leaders about the level of labor market well-being in the Commonwealth.
(b) Methodology:
(i) The household survey shall be conducted on a semi-annual basis and shall be overseen by the Corporation for Business, Work, and Learning and the Business Labor Workforce Development Data Commission (hereinafter “the commission”). The state agency and the commission jointly shall oversee all aspects of the survey design and implementation, assure impartiality in the development and interpretation of the findings from the survey, and direct the development of the publication and dissemination of the survey findings.
(ii) The household survey shall be conducted with a sample size of 5,000 households and will be conducted twice each year. Of this sample a total of 3,000 household units will be allocated to produce statistically reliable labor force employment and unemployment estimates using concepts and measures employed in the Current Population Survey to the extent practical. The remaining 2,000 units will be used to produce similar data at the sub-state level. Each survey cycle the commission will identify a particular urban community or rural area where the 2,000 units of sub-state sample will be allocated. Each year two different sub-state areas will be included in the sample. The basic concepts and measures employed in the sub-state sample will be the same as the statewide sample. The state agency and the commission may add additional questions that are specific to the sub-state areas as it deems necessary.
(iii) The household survey questionnaire shall, to the extent practical, use labor force concepts and earnings measures that are identical to those employed in the Current Population Survey. The data derived from the survey will be conceptually comparable with the national measure of labor market activity and permit comparison of state and sub-state findings with the nation as a whole. The survey questionnaire will be developed and approved by the state agency and the commission and shall utilize any technical advice and assistance as they deem appropriate.
(iv) The household survey will be administered under the direction of the state agency and the commission who may choose to contract with either a public or private vendor experienced in the conduct of household surveys in the Commonwealth.
(v) The state agency and the commission shall ensure that statistically reliable estimates and the public release of these estimates are conducted in a neutral and responsible manner, shall establish data quality and publication standards in order to assure high quality information is produced and may release reports and special studies as it sees fit.
(c) The Business Labor Workforce Development Data Commission: The Business Labor Workforce Development Data Commission shall consist of 16 members, six of whom shall be representatives of the Massachusetts Business Roundtable, six of whom shall be representatives of the Massachusetts AFL-CIO, two of whom shall be representatives of higher education, one of whom shall be appointed by the Senate President and one of whom shall be appointed by the Speaker of the House.
(d) Total annual funds for the survey will be $500,000.

SECTION 3. Establishing a Job Vacancy and Labor Turnover Survey of Business Establishments.
(a) Purpose of the survey: This survey would establish a systematic survey of business establishments across the State in order to measure the number and composition of job vacancies and in order to measure employer skill needs. The need for this survey has been established by a growing number of businesses that have reported how shortages of skilled labor impedes their long term growth. While employers continue to report difficulty in hiring workers, little data exists to document the problems of recruiting and hiring skilled workers. A well designed job vacancy-labor turnover survey will provide important information to the Commonwealth’s post-secondary education system and to its workforce development programs so that they can better target their resources.
(b) Methodology:
(i) The job vacancy labor turnover survey shall survey 2,000 business establishments and shall be conducted on a quarterly basis. The state agency and the Commission shall oversee all aspects of the survey design and implementation, assure impartiality in the development and interpretation of the findings from the survey and direct the development and dissemination of the survey findings.
(ii) The survey will be statewide in nature and be capable of producing statistically reliable estimates of job vacancies, new hires and worker separations by industry and occupation. The survey will use concepts and measures similar to those developed by the U.S. Bureau of Labor Statistics in developing both prior and current job vacancy and labor turnover data at the national level.
(iii) The Division of Employment and Training will make available to the state agency and the Commission current listings of business establishments organized by industry and firm size derived from Unemployment Insurance tax reports.
(iv) The job vacancy-labor turnover survey will be administered under the direction of the state agency and the commission. The commission may choose to contract with either a private or public vendor experienced in the conduct of business establishment surveys in the Commonwealth.
(v) The state agency and the commission shall ensure that statistically reliable estimates and the public release of these estimates are conducted in a neutral and responsible manner, shall establish data quality and publication standards in order to assure high quality information is produced and may release reports and special studies as it sees fit.
(vi) Total funds for the survey will be $375,000.

SECTION 4. Establishing a Standard Evaluation System for Workforce Development Programs
(a) Purpose of the evaluation: Considerable federal and state resources are devoted to providing employment and training services to incumbent workers, dislocated workers, the economically disadvantaged, welfare recipients, high school students and adults seeking to upgrade their literacy skills. While resources are devoted to serve these populations in the state, little information is available to elected officials on the effectiveness of the programs in generating a set of positive employment outcomes for participants. A systematic evaluation system using standard measures and concepts that can be compared across programs and geographic regions in the Commonwealth needs to be put in place.
This section establishes a statewide workforce program evaluation system, authorizes the use of Department of Revenue records to ascertain the employment status and earnings experiences of persons who have participated in a workforce development program in the Commonwealth and requires organizations that receive state funds for workforce development to participate in the state evaluation system.
(b) Methodology:
(i) The state agency and the commission will establish a workforce development program evaluation system in Massachusetts in order to provide common measures of employment and earnings outcomes for all state supported workforce development programs. Considerable federal and state resources are devoted to providing employment and training services to incumbent workers, dislocated workers, the economically disadvantaged, welfare recipients, high school students and adults seeking to upgrade their skills. While resources are devoted to serve these populations in the state, little information is available for elected officials on the effectiveness of the programs in generating a set of positive employment outcomes for participants. This systematic evaluation shall use standard measures and concepts that can be compared across programs and geographic regions in the Commonwealth in order to inform state and local officials about the employment and earnings outcomes generated by the array of workforce development programs in the state.
(ii) The evaluation system established under this statute will utilize payroll employment records submitted by Massachusetts employers as part of their regular tax reporting activities. The system will match social security numbers of persons who participated in workforce development or related education and training programs with employer payroll tax reports. The system will determine the employment rate and earnings experiences of all participants in the state’s workforce development system.
(iii) All participants in workforce development programs and related education and training programs will be included in the evaluation system. Regional Employment Boards will submit the social security number of all program terminees from their programs as specified by the committee. All Adult Basic Education programs and programs receiving funds from under the Workforce Development Fund will also provide terminee social security numbers.
(iv) The state agency and the Commission shall develop a set of employment and earnings outcomes measures. These measures will include employment rates, monthly earnings estimates and information on industry of employment as available from the Department of Revenue records. The data produced by this system will include program by program comparisons and comparisons across geographic regions within the state.
(v) The state agency and the commission shall ensure that statistically reliable estimates and the public release of these estimates are conducted in a neutral and responsible manner, shall establish data quality and publication standards in order to assure high quality information is produced and may release reports and special studies as it sees fit.
(vi) Total funds for the evaluation will be $125,000.