Trade Adjustment Assistance: Trends, Outcomes, and Management Issues in Dislocated Worker Programs

A letter report issued by the General Accounting Office with an abstract that begins "Concerns about the effects of the globalization of national economies and the rapid pace of economic change have focused attention on federal programs designed to assist U.S. workers displaced by foreign trade and increased imports. GAO reviewed two programs run by the Department of Labor. The Trade Adjustment Assistance Program (TAA) and the North American Free Trade Agreement Transitional Adjustment Assistance Program (NAFTA-TAA) have spent more than $1.3 billion in the past five years to help workers make the transition to new jobs, but it is unclear how effective these programs are in achieving their goals. Limited data indicate that 75 percent of workers who left the programs found jobs, but that many earned far less than their prior salaries. Training participation rates for both programs are low due to such factors as low unemployment rates and a healthy economy. GAO identified several factors that affected the delivery of services, including: (1) non-standardized eligibility criteria, (2) open-ended training enrollment, and (3) overall program administration. Further review of available data indicates that weak internal controls may result in the payment of benefits to ineligible beneficiaries.