Dislocated Workers: Comparison of Programs

GAO discussed the Department of Labor's (DOL) Trade Adjustment Assistance (TAA) and Economic Dislocation and Worker Adjustment Assistance (EDWAA) programs and the President's proposal to replace them with a single, comprehensive program. GAO noted that: (1) both programs are slow in reaching dislocated workers, but workers that receive timely assistance appear to find jobs sooner; (2) delays in TAA training assistance are generally due to the worker certification and notification process, which requires that DOL certify that workers have been dislocated due to increased imports; (3) EDWAA does not have a certification requirement, but assistance for EDWAA participants is slow; (4) under the President's proposal, the certification requirement would be eliminated, and all workers would be eligible for assistance without regard to the reason for dislocation; (5) the reemployment potential of dislocated workers is enhanced when assistance options and independent assessments tailor services to the varied skills and interests of workers; (6) dislocated workers need income support to participate in classroom training, which TAA provides, but EDWAA does not; (7) the availability of additional income support after workers exhaust their 26 weeks of unemployment insurance gives them the option to enter longer-term training; (8) reporting systems that track participant progress and program performance are critical to ensuring that federal assistance is effective; and (9) the President's proposal recognizes the need for extensive feedback, but does not mention reporting requirements.