Globalization and the North American Free Trade Agreement: Implications for Employment and Training Policy

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This paper examines the impact of globalization and the North American Free Trade Agreement (NAFTA) on employment and training policy in the United States, with a specific focus on rural communities. The author, Cynthia Mugerauer, argues that while there are existing employment and training programs, they often fail to address the unique needs of rural workers and lack a unified rural strategy. The paper highlights the “skills gap” debate, noting that while there’s disagreement on the number of future high-skill jobs, individuals with higher education and training generally benefit in the labor market. It then describes the fragmented nature of current employment and training programs, administered by various federal departments (Labor, Education, Health and Human Services, and Agriculture) with separate delivery systems. This “silo” approach leads to negative client experiences, with individuals facing confusing and often humiliating processes to access services. The author categorizes workforce development programs into four types: education, intervention for special needs groups, labor exchange, and customized training for business development. The paper also identifies several “gaps” in the current system, including a lack of comprehensive labor market information, systematic strategies for serving “hard-to-serve” groups, coordinated dropout prevention, workplace education for employed individuals, school-to-work transition strategies, and re-employment strategies for laid-off workers. These gaps are attributed to trends like mixed messages from the federal level, the creation of specialized programs for targeted groups, changing roles in service delivery, conflicting standards, confusing governance structures, and a lack of proactive policy-making.The paper discusses proposed solutions like “one-stop shops” and consolidated advisory councils but emphasizes that these are not substitutes for a comprehensive workforce policy at the federal level and a supportive administrative structure. It identifies three major policy priorities for national investment in employment and training: significant investment in adult basic education, robust school-to-work transition systems, and effective re-employment strategies for dislocated workers.Finally, the paper addresses the implications for rural areas, noting that while federal funds reach these areas, funding levels are inadequate. It stresses the need for additional resources for remedial education, occupational skills training tied to employer needs, flexibility in “one-stop shop” implementation to accommodate rural areas (including special funding for transportation and technology), and national strategies to help rural areas target programs and plan economic development in response to globalization.

Aspen Institute Community Strategies Group