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Employment and Training Policy in the United States during the Economic Crisis

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Abstract

This paper examines labor market conditions and public employment policies in the United States during what some are calling the Great Recession. We document the dramatic labor market changes that rapidly unfolded when the rate of gross domestic product growth turned negative, from the end of 2007 through early 2009. The paper reviews the resulting stress on labor market support programs and the broad federal response. That response came through modifications to existing programs and the introduction of new mechanisms to help Americans cope with job loss and protracted unemployment. The particular focus is on federally supported public programs for occupational job skills training and temporary income replacement. We also discuss procedures for evaluating the effectiveness of public reemployment efforts, and adjustments to these programs that were adopted during the crisis.

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  • Christopher J. O'Leary & Randall W. Eberts, 2009. "Employment and Training Policy in the United States during the Economic Crisis," Upjohn Working Papers 10-161, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:10-161
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    References listed on IDEAS

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    1. Christopher J. O'Leary & Robert A. Straits, 2004. "Intergovernmental Relations in Employment Policy: The United States Experience," Book chapters authored by Upjohn Institute researchers, in: Alain Noel (ed.),Federalism and Labour market Policy: Comparing Different Governance and Employment Strategies, pages 25-82, W.E. Upjohn Institute for Employment Research.
    2. John L. Palmer, 1987. "The Next Decade: The Economic, Political, And Social Context Of Employment And Training Policies," Review of Policy Research, Policy Studies Organization, vol. 6(4), pages 685-694, May.
    3. George E. Johnson & James D. Tomola, 1977. "The Fiscal Substitution Effect of Alternative Approaches to Public Service Employment Policy," Journal of Human Resources, University of Wisconsin Press, vol. 12(1), pages 3-26.
    4. Russell, Andrew, 2010. "William Lazonick. Sustainable Prosperity in the New Economy? Business Organization and High-Tech Unemployment in the United States. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, 2009. ," Enterprise & Society, Cambridge University Press, vol. 11(4), pages 846-849, December.
    5. Kevin Hollenbeck, 2008. "Sensitivity Testing of Net Impact Estimates of Workforce Development Programs Using Administrative Data," Upjohn Working Papers 08-139, W.E. Upjohn Institute for Employment Research.
    6. Timothy J. Bartik & Randall W. Eberts & Wei-Jang Huang, 2009. "Methodology for Adjusting GPRA Workforce Development Program Performance Targets for the Effects of Business Cycles," Upjohn Working Papers 09-154, W.E. Upjohn Institute for Employment Research.
    7. Kevin Hollenbeck, 2003. "Net Impact Estimates of the Workforce Development System in Washington State," Upjohn Working Papers 03-92, W.E. Upjohn Institute for Employment Research.
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    More about this item

    Keywords

    job training; unemployment; unemployment insurance; employment policy; federal stimulus; American Recovery and Reinvestment Act; evaluation; performance measurement; net impacts; cream skimming; adjustment methodology;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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