Unemployment rates continued to fall slowly as the economy gains strength following the longest recession in over half a century. This report addressed the challenges of the community colleges attempting to reach the unemployed and underemployed. Responses from a survey conducted by the Education Policy Center at the University of Alabama, were received from 51 (100%) of the National Council of State Directors of Community College (NCSDCC) members or their designees. The majority of the respondents perceived that business leaders expect the community colleges to provide workforce training. However, federal and state funds designated for workforce training continued to be limited, and were virtually exhausted in some states. Four examples of statewide responses to reach displaced workers were also featured in the report. The trend of states cutting community college operating budgets, along with the reduction of federal funds, made it more difficult for community colleges to reach out to the unemployed and underemployed. This widening gap between the supply of training and educational funds and the demand for workforce training must be addressed in order to assist with the nation's economic recovery and competitiveness. (Contains 8 tables.)