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June 2004: 

HIGHLIGHTS OF A GAO FORUM: 

Workforce Challenges and Opportunities For the 21st Century: Changing 
Labor Force Dynamics and the Role of Government Policies: 

GAO-04-845SP: 

Contents: 

Introduction from the Comptroller General of the United States: 

Appendixes: 

Appendix I: 21st Century Workforce Challenges and Opportunities: 
Highlights of Forum Discussion: 

Highlights of Workforce Challenges and Opportunities for the 21st 
Century Forum: Changing Labor Force Dynamics and the Role of Government 
Policies: 

Background: 

The United States May Face Tight Labor Markets in Part because of 
Changes in Demographic Trends and Demand for Higher Skills: 

Participants Discussed Strategies for Addressing the Tight Labor 
Market:  

Appendix II: 21st Century Workforce Challenges and Opportunities: List 
of Participants: 

Related GAO Products: 

Figures: 

Figure 1: Labor Force Growth Rate from 1950 to 2000 and Projected Growth 
Rate, 2000 to 2050: 

Figure 2: Federal Spending for Mandatory and Discretionary Programs: 

Introduction from the Comptroller General of the United States: 

The U.S. workforce of the 21st century is expected to face a very 
different set of opportunities and challenges than previous 
generations. Demographic and economic trends indicate that the size and 
composition of the labor force, as well as the characteristics of many 
jobs, are changing in the 21st century. To discuss these changing labor 
force dynamics and the role of government policies, GAO hosted the 
"Workforce Challenges and Opportunities for the 21st Century Forum" on 
April 22, 2004. The participants were a select group of national 
leaders and experts on the dynamics of the U.S. workforce. This group 
included government officials, business and union representatives, and 
other national experts on workforce issues. As agreed with forum 
participants, the purpose of the discussion was not to reach consensus 
but rather to engage in an open, nonattribution-based dialogue.

GAO began the 21st Century Workforce Forum by presenting some of the 
key demographic, economic, and fiscal trends. In the past 50 years, the 
size of the U.S. labor force has more than doubled. However, over the 
next 50 years, the labor force as a whole is projected to grow much 
more slowly--at about one-third the previous rate. The labor force is 
also projected to become much more racially and ethnically diverse in 
the future. In addition to these demographic trends, a number of broad 
economic trends--global interdependence, technological change, and the 
growth of the knowledge-based economy--are changing U.S. labor markets; 
these changes include the kind of skills and knowledge needed within 
the workforce for the United States to compete effectively while 
maintaining a high standard of living. As the U.S. labor force changes, 
the role of the federal government must be examined. While the federal 
government sets immigration, tax, and labor policies and provides 
information on labor force dynamics, it also funds a variety of 
employment and training programs that increase the skills of workers 
and help match job seekers with employers. However, the federal 
government faces large and growing deficits that might constrain future 
spending on these programs and affect a wide range of workforce issues.

Participants generally agreed that the United States will soon face 
tight labor markets, in part because of changes in demographic trends 
and demands for higher skills. Some participants noted that the 
approaching retirement of the baby boom generation will contribute to 
tight labor markets and affect some industries more than others. They 
also discussed low labor force participation rates among certain 
groups, such as high school dropouts, low-income individuals, and some 
minority groups. Some participants explained that immigrants--both 
legal and undocumented--help the United States meet its labor demands. 
In addition to these demographic trends, participants agreed that the 
gap between the skills needed by employers and the skill level of U.S. 
workers poses a challenge for the U.S. labor market. Participants 
explained that several factors contribute to this skills gap, including 
the growth of the knowledge-based economy, decreased support for 
training programs, and insufficient emphasis on career education in 
schools.

While considering both the needs of the U.S. labor force and the 
realities of a tight fiscal environment, participants discussed several 
ways to address the possible tight labor market in the coming years. 
Some participants questioned the effectiveness of current public 
training programs. Many agreed that employers together with unions 
should take an active role in determining training needs. To increase 
the number of skilled workers, most participants agreed that youth and 
young adults, especially those who do not plan on attending college, 
need alternative education and training opportunities. In addition, 
some agreed that keeping older workers in the labor force longer by 
offering more flexible retirement options, such as phased retirement 
approaches, could lessen future labor shortages and help pay for costly 
benefits, such as health care. Participants also debated the need to 
change immigration policies and visa priorities to better meet future 
workforce needs.

Appendix I summarizes the collective discussion, as well as subsequent 
comments we received from participants on the draft summary of the 
forum discussion. This summary does not necessarily represent the views 
of any individual participant, including GAO. Appendix II lists the 
forum participants. Appendix III contains related GAO products on 
workforce issues. This report will be posted on our Web site at 
[Hyperlink, www.gao.gov]. For additional information on workforce 
development issues, please contact Sigurd Nilsen at (202) 512-7215 or 
[Hyperlink, Nilsens@gao.gov]. Key contributors to this report include 
Alicia Cackley, Elizabeth Morrison, Cheri Harrington, Elizabeth 
Caplick, and Janice Peterson.

I wish to thank all the forum participants for taking the time to share 
their knowledge, insights, and perspectives. We will use the knowledge 
gained from the forum's deliberations in our work for Congress and the 
country. I look forward to working with the forum's participants on 
important workforce issues in the future.

Signed by: 

David M. Walker: 
Comptroller General of the United States: 

[End of section]

Appendixes: 

Appendix I: 21st Century Workforce Challenges and Opportunities: 
Highlights of Forum Discussion: 

Highlights of Workforce Challenges and Opportunities for the 21st 
Century Forum: Changing Labor Force Dynamics and the Role of Government 
Policies: 

GAO began the 21st Century Workforce Forum by presenting some of the 
key demographic, economic, and fiscal trends, including data on the 
size and composition of the labor force as well as the characteristics 
of many U.S. jobs.

Background: 

In the past 50 years, the size of the U.S. labor force has more than 
doubled, increasing from 62.2 million workers in 1950 to 140.8 million 
workers in 2000. However, over the next 50 years, the labor force as a 
whole is projected to grow much more slowly. Between 2040 and 2050, the 
labor force growth rate is projected to drop to 0.6 percent from its 
recent peak of 2.6 percent in the 1970s. (See fig. 1.) One reason for 
this drop is that while women's share of the labor force increased 
dramatically over the past 50 years--from 30 percent in 1950 to 47 
percent in 2000--their share of the labor force is projected to remain 
at around 48 percent over the next 50 years. Without a major increase 
in productivity, low labor force growth will lead to slower growth in 
the economy and to slower growth of federal revenues.

Figure 1: Labor Force Growth Rate from 1950 to 2000 and Projected 
Growth Rate, 2000 to 2050: 

[See PDF for image] 

[End of figure] 

The U.S. labor force is also projected to become older and more 
racially and ethnically diverse in the future. As the baby boom 
generation ages, older workers are expected to compose a larger share 
of the labor force. The 55-and-older age group, which made up 13 
percent of the labor force in 2000, is projected to increase to 20 
percent by 2020. It is estimated that by 2050, this age group will make 
up 19 percent of the labor force. Further, immigration--from both legal 
and undocumented immigrants--contributes to the U.S. population. In 
2002, approximately 1 million legal immigrants entered the United 
States. Moreover, it is estimated that about 500,000 undocumented 
immigrants are added to the U.S. population each year. Of the estimated 
9.3 million undocumented immigrants who currently reside in the United 
States, 6 million are estimated to be in the labor force. As the number 
of U.S. immigrants increases, so does the diversity of the U.S. labor 
force. From 2000 to 2050, the share of white non-Hispanics in the labor 
force is expected to fall by about a quarter, while the share of 
Hispanics and Asians is expected to more than double within this same 
time frame.

In addition to these demographic trends, a number of broad economic 
trends are changing the nature of labor markets and employment in the 
United States. Increasing global interdependence and technological 
change are often identified as the driving forces behind many economic 
changes, and they have major implications for the U.S. workforce. As 
U.S. firms increasingly compete within the global marketplace, they 
seek to reduce costs, through either technological innovation or 
outsourcing of production, or increased use of temporary workers. 
Technological change, particularly the spread of computer and 
information technology, contributes to changing skill demand on the 
part of employers. While technological changes could create demand for 
higher-skilled workers, these changes--depending on the industry--
could also decrease employer demand for highly skilled workers. The 
growth of the knowledge-based economy and innovations in management 
systems, such as the adoption of high-performance practices that 
emphasize problem solving and teamwork, have also contributed to the 
need for increased skill levels in many industries. All of these 
changes have the potential to increase the wage gap between high-and 
low-skill workers, with significant socioeconomic implications for U.S. 
society.

Global interdependence, technological change, and the knowledge-based 
economy have all helped change the relationship between workers and 
employers. Because workers are less likely to spend a major portion of 
their careers with a single employer, they are more likely to seek 
training that is marketable to a variety of employers instead of 
training that is employer specific. Similarly, employers might not 
invest in worker training if the training will make the employees more 
attractive to other companies. In addition, because global 
interdependence has increased pressure on companies to streamline 
operations, employers are more willing to lay off workers and move 
operations to lower-cost locations domestically and internationally. 
These changes have implications for both the types of skills that 
workers need and the incentives for individual workers or employers to 
acquire or provide training.

As the U.S. labor force changes, the role of the federal government 
must be examined. Currently, the federal government plays an important 
role in promoting the labor force through a variety of mechanisms, 
including workforce development programs, unemployment insurance, 
skills development, education, pension, and health care policies. In 
2003, the federal government spent over $148 billion on employment and 
training programs, education grants, loans, tax credits, and income 
support programs such as unemployment insurance and assistance to low-
income families. At the same time, the federal government faces large 
and growing structural deficits that might constrain government 
spending on these programs in the future. Given that the U.S. 
population is aging, the proportion of the federal budget dedicated to 
mandatory programs--such as Medicare and Social Security--is likely to 
grow, and the amount available for discretionary programs--such as 
employment and training assistance--is likely to decrease. From 1964 to 
2004, discretionary federal spending decreased from 67 percent of the 
federal budget to 39 percent, while mandatory spending more than 
doubled. (See fig. 2.) Lower economic growth resulting from low labor 
force growth, unless accompanied with a significant jump in 
productivity, will only accentuate the overall pressure on the federal 
budget.

Figure 2: Federal Spending for Mandatory and Discretionary Programs: 

[See PDF for image] 

[A] Current services estimate.

[End of figure] 

Participants considered questions related to the effect of these 
economic and demographic trends on U.S. workers and the appropriate 
role for government in responding to workplace challenges and 
opportunities. Specifically, they responded to the following questions: 
(1) Is the United States facing an impending shortage of labor as the 
baby boom generation retires over the next 20 years? (2) Do workers 
entering the workforce and those already working have the skills 
employers will need to be competitive globally? and (3) What changes in 
the structure of the nation's workforce development system are needed 
to meet the changing needs of businesses and workers, and what is the 
appropriate role of the federal government in addressing workforce 
policy?

The United States May Face Tight Labor Markets in Part because of 
Changes in Demographic Trends and Demand for Higher Skills: 

While participants debated the existence of future labor shortages and 
which industries and workers may be affected, they generally agreed 
that the United States may soon face tight labor markets in part 
because of projected demographic trends and the need for higher 
skills.[Footnote 1] Several factors affecting tight labor markets 
include the retirement of the baby boom generation from the workforce, 
an insufficient number of workers entering certain occupations, and the 
insufficient supply of skilled workers. Specifically, they noted: 

* The baby boom generation could affect the U.S. labor market. 
Participants acknowledged that the aging of the baby boom generation 
and that generation's approaching retirement might lead to tight labor 
markets, particularly 20 years from now. Some stated that these workers 
could leave the labor market gradually, either by delaying retirement 
or by working part-time, thereby lessening the impact on the labor 
force. In contrast, others argued that older workers might, for various 
reasons, leave the workforce immediately when they reach retirement 
age. They noted that often, corporate pension policies encourage 
employees to retire early and do not allow part-time employment in 
their own companies for individuals receiving their pensions. Some 
participants reinforced the notion that the retirement of baby boomers 
would decrease the worker-to-retiree ratio and thus put additional 
financial pressures on Social Security and Medicare. In addition, some 
participants said that the retirement of baby boomers might affect some 
industries more than others. Specifically, in certain industries, many 
more workers will retire than will pursue jobs and be hired. For 
example, one participant noted that while many nuclear engineers are 
retiring, few new workers are entering this occupation. Similarly, it 
was noted that the average age of current workers in some manufacturing 
jobs is 50 or older.

* Labor force participation rates are low among certain populations. 
Participants also discussed low labor force participation rates among 
certain groups, such as high school dropouts, low-income individuals, 
and some minority groups. While participants agreed that these 
populations could serve as an additional source of labor in the future, 
they also noted that another source--women--is projected to have a much 
lower rate of labor force growth between 2000 and 2050.

* Immigrants help meet U.S. labor demands. Immigrants--both legal and 
undocumented--have a role to play in the current and future workforce. 
The H-1B program, which was developed to provide employers with 
temporary foreign workers who are highly skilled, has become a 
transitional program that enables many of these workers to become 
permanent legal residents in the United States. On the other hand, 
since the events of September 11, 2001, visas have been more difficult 
to obtain for immigrants entering the United States for higher 
education purposes. This may limit the availability of this source of 
skilled labor in certain industries where foreign workers have a strong 
presence.

In addition to noting these demographic trends, participants agreed 
that the gap between the skills needed by employers and the skill level 
of U.S. workers--both those entering the labor market and those already 
employed--poses a major challenge for the U.S. labor market. 
Participants discussed an array of factors contributing to the skills 
gap, including the need for workers to have more advanced skills than 
their predecessors, the need for workers to have specialized skills, 
the decreased availability of employer-based training programs and 
incumbent worker (i.e. employed worker) training funding, and the 
emphasis on college preparation at the expense of other career 
education options in schools. Specifically they said that: 

* The United States is moving toward a knowledge-based economy that 
requires higher skills. A knowledge-based economy increasingly requires 
workers to have more advanced skills and higher levels of education 
than in the past. While creation of new technology--an area where the 
United States has traditionally been strong--can potentially mitigate 
tight labor markets, the United States needs workers with advanced 
skills in order to benefit from nascent technologies. Participants 
noted that industries that traditionally have not required their 
workers to obtain postsecondary education--such as some factory jobs--
increasingly need employees that have a higher education level and more 
advanced skills than in the past. For example, one participant noted 
that in the past, a factory floor supervisor held a relatively 
unskilled position, but today, that same person would need a 2-year 
college degree and on-the-job training. Employers need not only workers 
with strong math skills and good technical skills; they also need 
employees who have mastered the soft skills, such as communication and 
team building. In addition, there are certain occupations, such as 
those in the nuclear engineering and health care fields, that require 
specialized skills and will continue to be in demand.

* Workers are not receiving sufficient training. Participants generally 
agreed that more training is needed, although it is unclear who is 
responsible for training--the employers, employees, or both. 
Previously, in many industries, employers provided long-term training. 
Today, however, employers are less likely to train their employees 
because in a tight labor market they face the risk of losing workers to 
other firms that do not train. Although society as a whole benefits 
from trained workers, individual firms that provide training may not 
see a return on their investment. Similarly, prospective workers are 
unlikely to invest in training without knowing which skills will 
provide them with jobs that pay well.

* Some countries have a greater supply of young, well-educated workers. 
The United States faces a significant demographic difference in terms 
of the age of U.S. workers and their technological skill compared with 
workers in countries such as India. According to some participants, 
some countries have large numbers of young, more recently trained 
workers entering their workforce. They noted that if workers in the 
United States cannot maintain the same skill level as new workers in 
these other countries, the United States will face a serious skills 
shortage that will affect the future rate of innovation and 
productivity. Several participants noted that maintaining incumbent 
worker skills might be difficult, as both employers and the federal 
government have reduced incumbent worker training support.

* Offshoring of jobs has increased and is likely to continue. Rapid 
advances in technology, increased trade, lower transportation costs, 
and communications innovations have greatly facilitated the offshoring 
of jobs, especially in the services sector. Given the high level of 
education and worker skill development in some countries, the jobs 
moving offshore are no longer low-wage, low-skilled jobs, but instead 
are those that attract high-skilled workers. In addition, the high cost 
of health care in the United States and the fact that it is factored 
into employer costs have contributed to employers' decisions to 
offshore certain functions.

* Career education and apprenticeship training are not given enough 
emphasis. Other participants cautioned that parents and schools place 
too much importance on all young adults obtaining a college degree. 
Some youth may not pursue higher education and instead need training 
such as career education or apprenticeship training so that they can 
participate more fully in the labor force. Participants emphasized that 
there are many occupations--such as those in the building trades--that 
do not require a college education but can provide adequate wages to 
individuals with honed skills.

Participants Discussed Strategies for Addressing the Tight Labor 
Market: 

Participants suggested several potential solutions to address the tight 
labor market that take into consideration both the needs of the U.S. 
labor force and the realities of a tight fiscal environment. A few 
participants questioned the effectiveness of current public training 
programs, and many agreed that employers, with the help of unions, 
should take an active role in determining training needs. To increase 
the number of skilled workers, most forum participants emphasized the 
importance of providing youth and young adults--especially those who 
will not attend college--with alternative education and training 
opportunities. Some also agreed that keeping older workers engaged in 
the labor force through flexible retirement policies could lessen 
future labor shortages. Finally, participants debated the need to 
change immigrant worker policies to better meet future workforce needs. 
Participants' suggestions included the following: 

* Increase the effectiveness of publicly funded training programs. Some 
participants questioned the effectiveness of public employment and 
training programs in helping job seekers enhance their job skills, 
identify job opportunities, and ultimately find employment. While the 
Department of Labor is responsible for overseeing many of these 
programs, such as those authorized under the Workforce Investment 
Act[Footnote 2] and the H-1B Technical Skills Training Grant 
Program,[Footnote 3] other agencies, such as the Departments of Health 
and Human Services, Education, and Housing and Urban Development, also 
support employment and training programs. Some participants argued that 
many of these employment and training programs provide overlapping 
services and said too many resources are spent operating duplicative 
programs, which serve relatively few people. Alternatively, one 
participant noted that current training funds are small relative to the 
total U.S. budget and argued that U.S. training investment per person 
is too low to be successful. To strengthen the public training 
programs, some participants suggested the following proposals: 

* expand Labor's High Growth Initiative so that it prepares workers for 
a variety of jobs, not just those in high-growth and top-paying 
industries;

* reauthorize the Workforce Investment Act to provide greater emphasis 
on incumbent worker training;

* consolidate public training programs to save resources and serve more 
individuals;

* present labor force statistics in a more useful way;

* evaluate newer models and programs that support disadvantaged 
workers; and: 

* restructure federal programs so that they are driven by employer 
needs.

* Encourage employers and unions to take the lead in determining 
training needs. Because employers are good at matching available jobs 
with skilled workers, some participants said that employers together 
with unions should take a leading role in determining training needs 
for workers. However, some participants said that employers are 
unlikely to actually provide training because they run the risk of 
losing trained employees to other employers--an outcome known as the 
free rider problem. Participants debated whether the federal government 
should encourage employers to provide training by offering them 
training tax credits. Specific points raised included the following: 

* The federal government should give employers training tax credits to 
create a steady supply of skilled workers, solve the free rider 
problem, and correct for the depreciation of skills.

* Training tax credits were criticized by some participants because 
these credits reward companies that already have training programs in 
place, and the public views such tax credits as corporate welfare. An 
alternative would be to make these credits marginal, that is, credits 
would only be given for training above current spending levels and 
would target less-educated and nonmanagerial workers.

* Instead of going to companies, training tax credits should be given 
to individuals.

* Giving training tax credits to individuals would result in the same 
challenges as individual training accounts, which provide individuals 
with blocks of training dollars. Workers generally do not know what 
training is needed by employers, so leaving training decisions to 
workers would require additional education on what skills and training 
are considered necessary.

* Promote alternative education and training opportunities. 
Participants explained that many individuals lack the skills needed to 
get jobs with adequate wages. In some cases, these individuals are left 
out of the labor force. Some participants commented that the secondary 
educational system primarily focuses on preparing students for college 
and does not groom youth for alternative career paths. They felt that 
policy makers need to focus on policies and programs that promote the 
development of a wide range of skills needed for various jobs, 
including skilled jobs that do not require a 4-year degree. To increase 
the number of skilled workers, some participants recommended that 
business and unions have a central role in designing alternative 
education and training opportunities and made the following 
suggestions: 

* Career education needs to be emphasized in high school so that youth 
understand the linkages between classroom study and workforce skills.

* Programs that help disadvantaged young people connect to the labor 
force, such as Job Corps and Career Academies, need more funding.

* Vocational education needs to be incorporated into the high school 
curriculum for those who do not plan on attending college.

* Apprenticeships need to be promoted as a respectable and alternative 
career path.

* Education and training grants, such as Pell Grants, need more 
funding.

* Keep older workers engaged in the labor force. Some participants 
explained that older workers vary in the amount of hours they want to 
work before retiring. However, many pension policies do not offer older 
workers the flexibility to work part-time. To encourage the baby boom 
generation to retire gradually and to retain the skills of older 
workers, some participants suggested the following policy changes: 

* support pension policy and regulation changes that allow workers to 
work part-time and still receive a pension;

* remove barriers to phased retirement that arise from confusion over 
tax, pension, and age discrimination laws; and: 

* clarify the law on rehiring retirees.

* Consider changing immigrant worker policies. Some participants argued 
that the federal government needs to change its immigrant worker 
policies to address future workforce challenges, while others warned 
that changing immigrant policies would not significantly meet the 
demands of a tight labor market and might only be a short-term 
solution. One participant explained that immigrant workers, at some 
point, would also need additional training. However, most participants 
agreed that current immigration policies were developed decades ago and 
do not address current workforce needs. Participants offered the 
following suggestions to change immigrant worker policies: 

* U.S. policies should support more permanent immigrants and fewer 
illegal immigrants.

* The federal government's visa programs should not have fixed yearly 
limits on the number of people who may enter the country. Instead, the 
number of allowable visas should be given in a range that adjusts to 
meet workforce demands.

* The executive branch, not Congress, should be responsible for 
determining the number of temporary workers who can enter the United 
States. Another participant argued that Congress should be responsible 
because it represents the larger social interest.

* U.S. immigration policy should not differentiate between permanent 
and temporary workers; instead, foreign workers should be considered 
transitional.

* Non-native U.S. college graduates should be given green cards 
immediately after graduation instead of being sent back to their home 
countries.

* The U.S. visa program for foreign students to attend college and 
graduate school in the United States should be revised. Recent declines 
in the admission of foreign graduate students, especially in math and 
science, have implications for future U.S. productivity and innovation.

In summary, there was general agreement among the participants, who 
represented workforce experts, policy makers, and the U.S. business 
community, that action needs to be taken to address the impact of the 
projected demographic and economic changes on the U.S. labor force. 
Aging workers, a more diversified labor force, and the need for 
enhanced skills are all factors that will affect the ability of the 
United States to compete in a global economy. To address these issues, 
participants emphasized the importance of employers taking the lead in 
identifying training needs. In addition, to prepare for projected 
workforce challenges, participants suggested that the federal 
government enhance public training programs, provide alternative 
education and training opportunities for youth, engage older workers in 
the labor force, and consider changing immigration policies to better 
meet future workforce needs.

[End of section]

Appendix II: 21st Century Workforce Challenges and Opportunities: List 
of Participants: 

Mason Bishop: 
Deputy Assistant Secretary: 
Employment and Training Administration:
U.S. Department of Labor: 

Peter Cappelli: 
George W. Taylor Professor of Management: 
Wharton School of Business: 
University of Pennsylvania: 

Anthony Carnevale: 
Vice President for Public Leadership: 
Educational Testing Service (ETS): 

Phyllis Eisen: 
Vice President, the Manufacturing Institute:
Executive Director, Center for Workforce Success: 
National Association of Manufacturers (NAM): 

Linda Ewing: 
Director, Research Department: 
International Union, United Automobile, Aerospace and Agricultural 
Implement Workers of America (UAW): 

Cynthia M. Fagnoni: 
Managing Director: 
Education, Workforce, and Income Security: 
U.S. General Accounting Office: 

Ellen Galinsky: 
Co-founder and President: 
Families and Work Institute: 

Lee Goldberg: 
Long-Term Care, Policy Manager: 
Service Employees International Union (SEIU), AFL-CIO: 

Steve Gunderson: 
Senior Consultant and Managing Director: 
The Greystone Group: 

Harry Holzer: 
Professor of Public Policy: 
Public Policy Institute, Georgetown University: 

James Jarrett: 
Vice President for Worldwide Government Affairs, Intel Corporation: 

Catherine Mann: 
Senior Fellow: 
Institute for International Economics: 

Representative Donald Manzullo: 
Chairman, House Small Business Committee: 

Demetrios Papademetriou: 
President Migration Policy Institute: 

Jeffrey S. Passel: 
Principal Research Associate: 
The Urban Institute: 

Anna M. Rappaport: 
Consultant: 
Mercer Human Resources Consulting: 

Harley Shaiken: 
Professor and Director, Center for Latin American Studies: 
Graduate School of Education: 
University of California, Berkeley: 

Robert Tobias: 
Institute for the Study of Public Policy Implementation, 
American University: 

David M. Walker: 
Comptroller General of the United States: 
U.S. General Accounting Office:

[End of section]

Related GAO Products: 

Workforce Investment Act: States and Local Areas Have Developed 
Strategies to Assess Performance, but Labor Could Do More. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-04-657]. 
Washington, D.C.: June 1, 2004.

Workforce Investment Act: Labor Actions Can Help States Improve 
Quality of Performance Outcome Data and Delivery of Youth Services. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-04-308]. 
Washington, D.C.: February 23, 2004.

Workforce Training: Almost Half of States Fund Employment Placement and 
Training through Employer Taxes, and Most Coordinate with Federally 
Funded Programs. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-04- 282]. 
Washington, D.C.: February 13, 2004.

The Worker Adjustment and Retraining Notification Act: Revising the 
Act and Educational Materials Could Clarify Employer Responsibilities 
and Employee Rights. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-03- 1003]. 
Washington, D.C.: September 19, 2003.

H-1B Foreign Workers: Better Tracking Needed to Help Determine H-1B 
Program's Effects on U.S. Workforce. 
[Hyperlink, http://www.gao.gov/ cgi-bin/getrpt?GAO-03-883]. 
Washington, D.C.: September 10, 2003.

Food Stamp Employment and Training Program: Better Data Needed to 
Understand Who Is Served and What the Program Achieves. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-03-388]. 
Washington, D.C.: March 12, 2003.

Workforce Training: Employed Worker Programs Focus on Business Needs, 
but Revised Performance Measures Could Improve Access for Some Workers. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-03-353]. 
Washington, D.C.: February 14, 2003.

Older Workers: Policies of Other Nations to Increase Labor Force 
Participation. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-03- 307]. 
Washington, D.C.: February 13, 2003.

Older Workers: Employment Assistance Focuses on Subsidized Jobs and Job 
Search, but Revised Performance Measures Could Improve Access to Other 
Services. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-03-350]. 
Washington, D.C.: January 24, 2003.

High-Skill Training: Grants from H-1B Visa Fees Meet Specific 
Workforce Needs, but at Varying Skill Levels. 
[Hyperlink, http://www.gao.gov/cgi- bin/getrpt?GAO-02-881]. 
Washington, D.C.: September 20, 2002.

Older Workers: Demographic Trends Pose Challenges for Employers and 
Workers. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-02-85]. 
Washington, D.C.: November 16, 2001.

Registered Apprenticeships: Labor Could Do More to Expand to Other 
Occupations. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-01-940]. 
Washington, D.C.: September 7, 2001.

Multiple Employment and Training Programs: Overlapping Programs 
Indicate Need for Closer Examination of Structure. 
[Hyperlink, http:// www.gao.gov/cgi-bin/getrpt?GAO-01-71]. 
Washington, D.C.: October 13, 2000.

H-1B Foreign Workers: Better Controls Needed to Help Employers and 
Protect Workers. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO/ HEHS-00-157]. 
Washington, D.C.: September 7, 2000.

Contingent Workers: Incomes and Benefits Lag Behind Those of Rest of 
Workforce. 
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO/HEHS-00- 76]. 
Washington, D.C.: June 30, 2000. 

FOOTNOTES

[1] Participants noted the difficulty in predicting future labor 
shortages, given the complex relationships that exist between labor 
supply and changes in productivity and labor demand.

[2] The Workforce Investment Act, which has been awaiting 
reauthorization since 2003, provides employment and training services 
to adults, dislocated workers, and youth. 

[3] Financed by fees paid by employers who bring skilled foreign 
workers into the United States under H-1B nonimmigrant visas, the H-
1B Technical Skills Training Grant Program helped to develop and 
operate high-skill training programs for unemployed and employed 
American workers. Legislation adopted in 2000 authorized this program 
through 2003.

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