Participation in the Family Employment Program plummeted 47 percent — from 4,716 to 2,519 cases — between April 2006 and March 2007. The program provides cash assistance to unemployed Utahns as they work toward self-sufficiency through things such as job skills training or education.

"We don't have exact data of why this happened, but I can tell you from experience, we've never experienced an economy like this before. It's phenomenal, and anybody who can work is working," said Helen Thatcher, assistant director of DWS' operations support division.

Still, an analysis by the department indicates that at least some of those leaving the program have fallen victim to new reporting requirements from the federal government that took effect last summer. In January 2007, 28 percent of case closures were due to nonparticipation, according to DWS figures.

"We are a lot stricter in our requirements in terms of participation," Thatcher said. "A lot of folks have other options and are choosing not to come (on the program), which is another reason why caseloads are down."

While the department has chosen to take a more optimistic view of the decrease, advocates for the poor worry it may set a dangerous precedent for Utah's low-income families.

"I don't think any of this is a cause for panic, but it is a red flag that should be examined," said Steve Erickson, a policy analyst for the nonprofit organization Utah Issues. "Are these onerous federal rules driving families to leave the program for poor-paying jobs and further financial crisis?"

The typical FEP case is a single mother with two children who receives $474 a month, according to Workforce Services. Participants are allowed to receive assistance for only 36 months in their lifetime.

The new requirements came through Congress' reauthorization of Temporary Assistance for Needy Families, which funds the Family Employment Program. The rules required DWS to limit the type of activities that satisfy initial program requirements, areas where state officials could previously be more "inventive" about preparing people for meaningful work, Thatcher said.

"It is a concern for us because sometimes getting mental health treatment is one of the most important things you can do for addressing the barrier that you have to gaining employment," she said.

The majority of participants in the program are single mothers who spend 30 hours a week working on their approved employment plan while caring for their children alone, Erickson said. To add such burdensome documentation and reporting requirements to the mix is "extraordinarily stressful" and often drives participants to low-paying, low-skilled work that does little for their future job prospects.

"It's a legitimate argument to say you have to work for your benefits, but at what point is it counterproductive?" Erickson asked.

Thatcher agreed that Workforce Services officials will have to watch closely at what happens to FEP caseloads when the economic climate shifts.

"It'll be interesting to watch to see what happens when the economy slows down, because people who are being hired for jobs that don't require a lot of skills, if they're not gaining skills that are transferable to other jobs, they really get impacted by downturns."

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E-mail: awelling@desnews.com