Worker displacement is more closely related to structural features associated with firms than to the characteristics of the individuals who lost their jobs. Despite economic growth, large numbers of displaced workers continue to experience difficulty in making labor market adjustments. Programs to retrain and reemploy displaced workers exist at all levels of government and in the private sector. The most successful programs in the private sector are those that emphasize reemployment rather than retraining. Two common elements of successful state-level programs are active cooperation of labor and management and a broad range of services. Recommendations to strengthen the capacity of educational institutions to serve the needs of displaced workers include the development of programs that are comprehensive in design, are closely linked with private and public agencies, and have program administrators who work closely with local employers and who are aggressive in promoting and marketing services. Program leaders should encourage employers to give advance notice of impending layoffs or plant closures, aggressively seek opportunities to provide training services to companies, and establish a fast response mechanism. Programs should include a strong job development component and establish mechanisms for early linkage with companies and postprogram follow-up linkage with displaced workers. (YLB)