Job Retraining May Fall Short of High Hopes

New York Times (7/5, Luo) – Tens of thousands of laid-off workers like Mr. Hutchins have turned to retraining as a lifeline. Yet for all the popularity of these government-financed programs, there are questions about whether they actually work, even as President Obama’s stimulus plan directs $1.4 billion more to retraining and other services for people who have lost their jobs.

[A] little-noticed study the Labor Department released several months ago found that the benefits of the biggest federal job training program were “small or nonexistent” for laid-off workers. It showed little difference in earnings and the chances of being rehired between laid-off people who had been retrained and those who had not.

Andy Levin, deputy director of the Michigan Labor and Economic Growth Department, pointed out that the state’s economic woes made it hard to judge its retraining efforts. But Mr. Levin said he believed the state’s focus on longer-term training for occupations showing growth would bear fruit. “My position is this: Unless you have a highly educated work force, you really don’t have much of a chance,” he said.