Roughly 700,000 veterans have been unemployed in recent months, a figure that could swell considerably with the anticipated increase in the number of people leaving active duty. Congress passed the Jobs for Veterans Act in 2002 to improve employment and training services for veterans and to encourage employers to hire them. As mandated by law, GAO reviewed progress to date in its implementation, including the development of new staff roles and responsibilities, performance accountability system, incentive awards, and priority of service to veterans. GAO examined (1) implementation status of the key provisions and any associated challenges, (2) what is known about services and outcomes since the law's enactment, and (3) changes in program accountability. Labor implemented most provisions of the Jobs for Veterans Act (JVA) within the first 2 years of its enactment. However, some are not fully implemented, such as measures to increase service priority for veterans in the full spectrum of Labor's training programs, and others designed to improve accountability from states and federal contractors. States also report substantial progress implementing the law, but challenges remain in some areas. About one-third of the states, for example, did not establish incentive award programs for their workforce personnel because their laws, policies, or agreements conflict with this JVA provision. Most state workforce administrators surveyed reported that the new legislation has improved both the quality of services to veterans and their employment outcomes. They credited the greater availability of case management services under JVA for much of the improvement in employment. They cited lack of federal contractor compliance with the law's provisions as most likely to have limited veterans' employment opportunities. Aside from the law's influence, they cited the willingness of employers to hire veterans and the strength of the local job market as significant factors affecting veterans' employment. About half of state directors of Veterans' Employment and Training reported their new monitoring role had strengthened local program accountability. However, just over a third reported that accountability had either lessened or not improved. Some partly attributed this to absence of local performance data and fewer annual visits to one-stop centers. GAO found, as well, that a lack of coordination among Labor's agencies responsible for certain JVA provisions has weakened accountability. Also, while Labor has developed a system to monitor program performance, it lacks a strategy for using the information it gathers to make improvements and to help states. [ABSTRACT FROM AUTHOR]