[Congressional Record Volume 141, Number 1 (Wednesday, January 4, 1995)]
[Extensions of Remarks]
[Pages E17-E18]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                              JOB TRAINING

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, January 4, 1995 into the Congressional Record.
                              Job Training

       An important challenge for the nation is to equip American 
     workers with the skills and training necessary to find jobs 
     in today's labor force. In talking with employers in Indiana, 
     I am constantly impressed with the mismatch between the 
     skills Hoosiers have and the skills managers require. Many 
     workers have skills, but not the right skills that high 
     technology companies require to compete globally. The problem 
     is how you move a work force suited to one type of economy 
     into a world that demands different skills.


                        private sector training

       The private sector has taken the lead on training and 
     retraining the work force. Such efforts vary from firm to 
     firm, but tend to predominate in larger companies. Corporate 
     restructuring has reassigned responsibility from upper 
     management to workers and supervisors, increasing the need 
     for management and team-based skills at these levels. 
     Companies have recognized that survival in the global 
     marketplace requires a flexible work force with diverse 
     skills and adaptability to new work routines and 
     environments. On average, employers spend about 2% of their 
     payroll on training.
       The skills that are needed in the workplace are fairly well 
     agreed upon. Workers need the ability to develop work 
     schedules, budget money and assign staff. They require 
     interpersonal skills. They need to know how to use computers 
     to gather and process information. They must understand how 
     their own work fits into the work around them so that they 
     can solve problems. They also need to deal with new 
     technologies in an everchanging workplace.
       None of these skills replaces the needed proficiency in the 
     basics: reading, writing and arithmetic. Without those basic 
     skills, the other skills would be of little value. The 
     important thing is that the education system produce 
     learners, not knowers. Workers need to demonstrate a mastery 
     of skills more than the accumulation of a body of knowledge.


                            federal programs

       The federal government runs a number of training programs 
     to help complement private sector efforts, but many of those 
     programs have had a mixed record of success. The federal 
     government spent about $25 billion last year on more than 150 
     employment and training programs administered by 14 agencies. 
     Many of these programs are small and receive limited funding, 
     and most are managed in cooperation with state governments. 
     In Indiana, for example, the Indiana Department of Workplace 
     Development runs 
     [[Page E18]] many retraining programs through local private 
     industry councils.
       Federal education and training programs concentrate on two 
     types of persons. Disadvantaged workers lack the basic skills 
     to function in the labor force or to acquire education and 
     training. Programs for these persons concentrate on providing 
     skills and education that will enable them to participate in 
     the work force and become self-sufficient. Some programs 
     provide remedial training; others, adult literacy and 
     vocational training.
       Dislocated workers have the skills to participate in the 
     work force, but have become temporarily unemployed. These 
     workers may require retraining to find new jobs.
      Workers who become dislocated through federal policies, such 
     as trade agreements, environmental regulation or defense 
     downsizing are eligible for federally funded job training.


                                Reforms

       Congress has already taken some steps to improve the 
     current system. It has funded local ``one stop'' career 
     centers where workers can obtain information on training 
     programs and employment opportunities. It has also created 
     School-to-Work transition programs that will assist young 
     persons in making the transition from school to full-time 
     employment.
       However, more dramatic reforms are likely to be considered 
     this year. We need to consolidate our present array of 
     federal job training programs in a manner that enhances 
     worker participation and productivity. These programs should 
     be structured to make information and resources more 
     available to the intended recipients. One approach would be 
     to consolidate existing programs into a single federal 
     program and give state governments more flexibility in 
     administering retraining efforts. A second approach involves 
     providing ``skill scholarships'', student loans, and tax 
     credits to those who are in need of training and education. 
     Financial resources would be placed directly in the hands of 
     those who seek to improve their skills.


                               Conclusion

       Most studies show that the benefits of federal retraining 
     efforts are modest, especially in the programs for severely 
     disadvantaged workers. It has become very clear that you 
     cannot make up for the deficits of a lifetime in a few months 
     of training. We may get better results from programs with one 
     or two years of intense training.
       I am inclined to think that the main focus of our efforts 
     should be on mainstream young people who are not going on to 
     four year college. The approach would direct such youth into 
     community colleges and technical programs to upgrade their 
     basic skills and to learn other skills needed in growing 
     areas. Our country does a lot for people who go to college. 
     We do considerably less for people who do not. They are the 
     forgotten half. They are also largely the people who build 
     homes, fix appliances, repair roads, answer telephones and 
     work in factories.
       Of course, the great flaw in the training programs is 
     simple: many trainees cannot find jobs. One approach to 
     alleviate this program may be for government to provide 
     training funds to employers who have jobs but cannot find 
     suitable workers. This approach sidesteps expensive and 
     fruitless job searches. Employers, under this approach, would 
     guarantee jobs to those who complete training successfully.
       The nation's challenge is to create a system of worker 
     training that will train a highly skilled and educated work 
     force, boost our nation's productivity, and meet the economic 
     challenges from abroad. Our society must adopt a philosophy 
     of life-long learning and training for workers. Without well-
     trained workers, this country will become a second-rate 
     economy.
     

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