Dislocated Workers

Trade Adjustment Assistance Program Flawed Gao ID: T-HRD-94-4 October 19, 1993

Each year, about one million Americans lose their jobs because of business closures and permanent layoffs. Many of these workers are dislocated because of increased imports, and some receive assistance from the Trade Adjustment Assistance (TAA) Program. Recent studies, including those by GAO and the Department of Labor, have concluded that the TAA program falls short in helping dislocated worker reenter the workforce. GAO believes that to be successful, a reemployment program, such as TAA, should meet seven key goals, which this testimony discusses in detail. The existence of several targeted assistance programs in addition to TAA suggests that the nation's overall approach to dislocated worker assistance needs review. Congress may wish to consider a simplified approach that helps workers regardless of the reason for their dislocation.



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