A dislocated or displaced worker is defined as an individual who has been laid off or received notice of a potential layoff and has very little chance of finding employment in their current occupation when attempting to return to the workforce.
[2] Over the years, legislation funding these programs has included wording holding states and private businesses accountable for the roles in the dislocation of workers.
[3] Due to the importance of this funding and the negative economic impact of displaced workers, the United States has passed continuing legislation as recent as 2014 and 2015.
[4] After World War II, the Service Member Readjustment Act of 1944, known as the GI Bill, established a program to help returning Soldiers obtain technical skills and reintegrate into the workforce.
In response to changes in the automotive industry in the 1950s, the federal government passed the Area Redevelopment Act of 1959, establishing the first program to assist workers with reemployment.
[2] This program provided individuals with training opportunities and relocation assistance, geared specifically to those displaced due to changes in the automotive industry, As technology improvements led to further changes in manufacturing and global trading became more popular, more workers began to find themselves without a job.
[3] Due to the failures of CETA, the federal government expanded provisions under TAA and passed the Job Training Partnership Act of 1982 (JTPA).
It increased the responsibility of local governments to establish state level programs for displaced workers (mandating monitoring of local programs based on identified criteria), required private businesses to establish Private Industry Councils (PICs), and placed most of its funding in areas providing training and job assistance.
It provides similar programs to those of outlined in WIOA, but it is specifically geared to individuals who lost their jobs due to an increase in imports.
[17] They provide resources for states or other applicants to mitigate job losses caused by large, unexpected layoffs due to changes in industries or natural disasters.
All individuals were displaced from the manufacturing industry between 2003 and 2005, were approved to receive services under Transition Adjustment Assistance (TAA), and were exited from the program by the fourth quarter of 2005.
Using propensity score matching, researchers found that individuals participating in TAA had more difficulty in finding a new, good-paying job when compared to other displaced workers who did not receive the assistance.