DOL releases $75M in OJT grants.

DOL Announces $75 Million in OJT Grants for Dislocated Workers

On June 25, the U.S. Department of Labor announced the release of $75 million in Recovery Act-funded National Emergency Grants (NEGs) to support the expansion of on-the-job training (OJT) programs in 41 states, three Native American tribes, and the District of Columbia. The grants will be used to support OJT contracts with employers in the private and non-profit sectors, who agree to hire and train dislocated workers in exchange for partial reimbursement of their training costs.

Grant recipients include:

National Skills Coalition strongly supports investments in OJT and other “earn-and-learn” models as part of our nation’s broader economic recovery and job creation strategies.   OJT is a proven strategy that can help address the skill demands of both workers and businesses. Employers participating in OJT contract with local boards to hire and train workers for a specified period of time, and in exchange may receive a subsidy to cover a portion of the employee’s wages. Employers are able minimize the upfront costs of training and supervision for new employees and ensure that training is aligned with the actual skill requirements of the job, while employees benefit from earning a paycheck while acquiring the skills to perform effectively on the job and advance their careers beyond the lifespan of the OJT program.

Senators Jeanne Shaheen (D-NH) and Thad Cochran (R-MS) recently introduced the On-the-Job Training Act of 2010 (S 3459), which would create designated funding for  the Department of Labor (DOL) to award competitive grants to local workforce investment boards to support the expansion of on-the-job training (OJT) activities with area businesses.

We look forward to working with DOL and states to expand resources available for these proven training programs, and to ensure that dislocated workers and other individuals with barriers to employment have the skills they need to get and keep well-paying jobs.