a

GAO

United States General Accounting Office

June 2004 HIGHLIGHTS OF A 

GAO FORUM

Workforce Challenges 

and Opportunities For 

the 21st Century: 

Changing Labor Force 

Dynamics and the 

Role of Government 

Policies

GAO-04-845SP
a

GAO

United States General Accounting Office
Page i GAO-04-845SP 

Contents

Introduction from the 

Comptroller General of 

the United States

1

Appendixes

Appendix I: 21st Century Workforce Challenges and Opportunities: 

Highlights of Forum Discussion 4

Highlights of Workforce Challenges and Opportunities for the 21st 

Century Forum: Changing Labor Force Dynamics and the Role of 

Government Policies 4

Background 4

The United States May Face Tight Labor Markets in Part because of 

Changes in Demographic Trends and Demand for Higher Skills 8

Participants Discussed Strategies for Addressing the Tight Labor 

Market 11

Appendix II: 21st Century Workforce Challenges and Opportunities: List 

of Participants 16

Related GAO Products 18

Figures Figure 1: Labor Force Growth Rate from 1950 to 2000 and 

Projected Growth Rate, 2000 to 2050 5

Figure 2: Federal Spending for Mandatory and Discretionary 

Programs 7

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Contents

Page ii GAO-04-845SP 
Page 1 GAO-04-845SP 

Introduction from the Comptroller General of 

the United States

The U.S. workforce of the 21st century is expected to face a very different 

set of opportunities and challenges than previous generations. 

Demographic and economic trends indicate that the size and composition 

of the labor force, as well as the characteristics of many jobs, are changing 

in the 21st century. To discuss these changing labor force dynamics and the 

role of government policies, GAO hosted the “Workforce Challenges and 

Opportunities for the 21st Century Forum” on April 22, 2004. The 

participants were a select group of national leaders and experts on the 

dynamics of the U.S. workforce. This group included government officials, 

business and union representatives, and other national experts on 

workforce issues. As agreed with forum participants, the purpose of the 

discussion was not to reach consensus but rather to engage in an open, 

nonattribution-based dialogue. 

GAO began the 21st Century Workforce Forum by presenting some of the 

key demographic, economic, and fiscal trends. In the past 50 years, the size 

of the U.S. labor force has more than doubled. However, over the next 50 

years, the labor force as a whole is projected to grow much more slowly—

at about one-third the previous rate. The labor force is also projected to 

become much more racially and ethnically diverse in the future. In 

addition to these demographic trends, a number of broad economic 

trends—global interdependence, technological change, and the growth of 

the knowledge-based economy—are changing U.S. labor markets; these 

changes include the kind of skills and knowledge needed within the 

workforce for the United States to compete effectively while maintaining a 

high standard of living. As the U.S. labor force changes, the role of the 

federal government must be examined. While the federal government sets 

immigration, tax, and labor policies and provides information on labor 

force dynamics, it also funds a variety of employment and training 

programs that increase the skills of workers and help match job seekers 

with employers. However, the federal government faces large and growing 

deficits that might constrain future spending on these programs and affect 

a wide range of workforce issues.

Participants generally agreed that the United States will soon face tight 

labor markets, in part because of changes in demographic trends and 

demands for higher skills. Some participants noted that the approaching 

retirement of the baby boom generation will contribute to tight labor 

markets and affect some industries more than others. They also discussed 

low labor force participation rates among certain groups, such as high 

school dropouts, low-income individuals, and some minority groups. Some 

participants explained that immigrants—both legal and undocumented—
Introduction from the Comptroller General 

of the United States

Page 2 GAO-04-845SP 

help the United States meet its labor demands. In addition to these 

demographic trends, participants agreed that the gap between the skills 

needed by employers and the skill level of U.S. workers poses a challenge 

for the U.S. labor market. Participants explained that several factors 

contribute to this skills gap, including the growth of the knowledge-based 

economy, decreased support for training programs, and insufficient 

emphasis on career education in schools. 

While considering both the needs of the U.S. labor force and the realities of 

a tight fiscal environment, participants discussed several ways to address 

the possible tight labor market in the coming years. Some participants 

questioned the effectiveness of current public training programs. Many 

agreed that employers together with unions should take an active role in 

determining training needs. To increase the number of skilled workers, 

most participants agreed that youth and young adults, especially those who 

do not plan on attending college, need alternative education and training 

opportunities. In addition, some agreed that keeping older workers in the 

labor force longer by offering more flexible retirement options, such as 

phased retirement approaches, could lessen future labor shortages and 

help pay for costly benefits, such as health care. Participants also debated 

the need to change immigration policies and visa priorities to better meet 

future workforce needs.

Appendix I summarizes the collective discussion, as well as subsequent 

comments we received from participants on the draft summary of the 

forum discussion. This summary does not necessarily represent the views 

of any individual participant, including GAO. Appendix II lists the forum 

participants. Appendix III contains related GAO products on workforce 

issues. This report will be posted on our Web site at www.gao.gov. For 

additional information on workforce development issues, please contact 

Sigurd Nilsen at (202) 512-7215 or Nilsens@gao.gov. Key contributors to 

this report include Alicia Cackley, Elizabeth Morrison, Cheri Harrington, 

Elizabeth Caplick, and Janice Peterson.

I wish to thank all the forum participants for taking the time to share their 

knowledge, insights, and perspectives. We will use the knowledge gained 

from the forum’s deliberations in our work for Congress and the country. I
Introduction from the Comptroller General 

of the United States

Page 3 GAO-04-845SP 

look forward to working with the forum’s participants on important 

workforce issues in the future.

David M. Walker

Comptroller General

of the United States
Page 4 GAO-04-845SP 

Appendix I

21st Century Workforce Challenges and Apendxies

Opportunities: Highlights of Forum 

Discussion ApendxiI

Highlights of 

Workforce Challenges 

and Opportunities for 

the 21st Century 

Forum: Changing 

Labor Force Dynamics 

and the Role of 

Government Policies

GAO began the 21st Century Workforce Forum by presenting some of the 

key demographic, economic, and fiscal trends, including data on the size 

and composition of the labor force as well as the characteristics of many 

U.S. jobs.

Background In the past 50 years, the size of the U.S. labor force has more than doubled, 

increasing from 62.2 million workers in 1950 to 140.8 million workers in 

2000. However, over the next 50 years, the labor force as a whole is 

projected to grow much more slowly. Between 2040 and 2050, the labor 

force growth rate is projected to drop to 0.6 percent from its recent peak of 

2.6 percent in the 1970s. (See fig. 1.) One reason for this drop is that while 

women’s share of the labor force increased dramatically over the past 50 

years—from 30 percent in 1950 to 47 percent in 2000—their share of the 

labor force is projected to remain at around 48 percent over the next 50 

years. Without a major increase in productivity, low labor force growth will 

lead to slower growth in the economy and to slower growth of federal 

revenues.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 5 GAO-04-845SP 

Figure 1: Labor Force Growth Rate from 1950 to 2000 and Projected Growth Rate, 

2000 to 2050

The U.S. labor force is also projected to become older and more racially 

and ethnically diverse in the future. As the baby boom generation ages, 

older workers are expected to compose a larger share of the labor force. 

The 55-and-older age group, which made up 13 percent of the labor force in 

2000, is projected to increase to 20 percent by 2020. It is estimated that by 

2050, this age group will make up 19 percent of the labor force. Further, 

immigration—from both legal and undocumented immigrants—contributes 

to the U.S. population. In 2002, approximately 1 million legal immigrants 

entered the United States. Moreover, it is estimated that about 500,000 

undocumented immigrants are added to the U.S. population each year. Of 

the estimated 9.3 million undocumented immigrants who currently reside 

in the United States, 6 million are estimated to be in the labor force. As the 

number of U.S. immigrants increases, so does the diversity of the U.S. labor 

force. From 2000 to 2050, the share of white non-Hispanics in the labor 

force is expected to fall by about a quarter, while the share of Hispanics 

and Asians is expected to more than double within this same time frame. 

In addition to these demographic trends, a number of broad economic 

trends are changing the nature of labor markets and employment in the 

United States. Increasing global interdependence and technological 

change are often identified as the driving forces behind many economic 

0

0.5

1.0

1.5

2.0

2.5

3.0

1950-

1960

1960-

1970

1970-

1980

1980-

1990

1990-

2000

2000-

2010

2010-

2015

2015-

2020

2020-

2030

2030-

2040

2040-

2050

Growth rate (in percent)

Source: Monthly Labor Review, May 2002.

Projected labor force growth rate
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 6 GAO-04-845SP 

changes, and they have major implications for the U.S. workforce. As U.S. 

firms increasingly compete within the global marketplace, they seek to 

reduce costs, through either technological innovation or outsourcing of 

production, or increased use of temporary workers. Technological change, 

particularly the spread of computer and information technology, 

contributes to changing skill demand on the part of employers. While 

technological changes could create demand for higher-skilled workers, 

these changes—depending on the industry—could also decrease employer 

demand for highly skilled workers. The growth of the knowledge-based 

economy and innovations in management systems, such as the adoption of 

high-performance practices that emphasize problem solving and 

teamwork, have also contributed to the need for increased skill levels in 

many industries. All of these changes have the potential to increase the 

wage gap between high-and low-skill workers, with significant 

socioeconomic implications for U.S. society.

Global interdependence, technological change, and the knowledge-based 

economy have all helped change the relationship between workers and 

employers. Because workers are less likely to spend a major portion of 

their careers with a single employer, they are more likely to seek training 

that is marketable to a variety of employers instead of training that is 

employer specific. Similarly, employers might not invest in worker training 

if the training will make the employees more attractive to other companies. 

In addition, because global interdependence has increased pressure on 

companies to streamline operations, employers are more willing to lay off 

workers and move operations to lower-cost locations domestically and 

internationally. These changes have implications for both the types of 

skills that workers need and the incentives for individual workers or 

employers to acquire or provide training. 

As the U.S. labor force changes, the role of the federal government must be 

examined. Currently, the federal government plays an important role in 

promoting the labor force through a variety of mechanisms, including 

workforce development programs, unemployment insurance, skills 

development, education, pension, and health care policies. In 2003, the 

federal government spent over $148 billion on employment and training 

programs, education grants, loans, tax credits, and income support 

programs such as unemployment insurance and assistance to low-income 

families. At the same time, the federal government faces large and growing 

structural deficits that might constrain government spending on these 

programs in the future. Given that the U.S. population is aging, the 

proportion of the federal budget dedicated to mandatory programs—such 
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 7 GAO-04-845SP 

as Medicare and Social Security—is likely to grow, and the amount 

available for discretionary programs—such as employment and training 

assistance—is likely to decrease. From 1964 to 2004, discretionary federal 

spending decreased from 67 percent of the federal budget to 39 percent, 

while mandatory spending more than doubled. (See fig. 2.) Lower 

economic growth resulting from low labor force growth, unless 

accompanied with a significant jump in productivity, will only accentuate 

the overall pressure on the federal budget.

Figure 2: Federal Spending for Mandatory and Discretionary Programs 

a

Current services estimate.

Participants considered questions related to the effect of these economic 

and demographic trends on U.S. workers and the appropriate role for 

government in responding to workplace challenges and opportunities. 

Specifically, they responded to the following questions: (1) Is the United 

States facing an impending shortage of labor as the baby boom generation 

retires over the next 20 years? (2) Do workers entering the workforce and 

those already working have the skills employers will need to be 

competitive globally? and (3) What changes in the structure of the nation’s 

workforce development system are needed to meet the changing needs of 

Discretionary

Net interest

Mandatory

7%

26%

67%

1964 1984 2004a

13%

42%

45%

7%

54% 39%

Source: Budget of the United States Government, Fiscal Year 2005, Office of Management and Budget.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 8 GAO-04-845SP 

businesses and workers, and what is the appropriate role of the federal 

government in addressing workforce policy?

The United States May 

Face Tight Labor 

Markets in Part 

because of Changes in 

Demographic Trends 

and Demand for Higher 

Skills

While participants debated the existence of future labor shortages and 

which industries and workers may be affected, they generally agreed that 

the United States may soon face tight labor markets in part because of 

projected demographic trends and the need for higher skills.1

 Several 

factors affecting tight labor markets include the retirement of the baby 

boom generation from the workforce, an insufficient number of workers 

entering certain occupations, and the insufficient supply of skilled workers. 

Specifically, they noted:

• The baby boom generation could affect the U.S. labor market. 

Participants acknowledged that the aging of the baby boom generation 

and that generation’s approaching retirement might lead to tight labor 

markets, particularly 20 years from now. Some stated that these 

workers could leave the labor market gradually, either by delaying 

retirement or by working part-time, thereby lessening the impact on the 

labor force. In contrast, others argued that older workers might, for 

various reasons, leave the workforce immediately when they reach 

retirement age. They noted that often, corporate pension policies 

encourage employees to retire early and do not allow part-time 

employment in their own companies for individuals receiving their 

pensions. Some participants reinforced the notion that the retirement of 

baby boomers would decrease the worker-to-retiree ratio and thus put 

additional financial pressures on Social Security and Medicare. In 

addition, some participants said that the retirement of baby boomers 

might affect some industries more than others. Specifically, in certain 

industries, many more workers will retire than will pursue jobs and be 

hired. For example, one participant noted that while many nuclear 

engineers are retiring, few new workers are entering this occupation. 

Similarly, it was noted that the average age of current workers in some 

manufacturing jobs is 50 or older. 

• Labor force participation rates are low among certain populations. 

Participants also discussed low labor force participation rates among 

1

 Participants noted the difficulty in predicting future labor shortages, given the complex 

relationships that exist between labor supply and changes in productivity and labor 

demand.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 9 GAO-04-845SP 

certain groups, such as high school dropouts, low-income individuals, 

and some minority groups. While participants agreed that these 

populations could serve as an additional source of labor in the future, 

they also noted that another source—women—is projected to have a 

much lower rate of labor force growth between 2000 and 2050.

• Immigrants help meet U.S. labor demands. Immigrants—both legal and 

undocumented—have a role to play in the current and future workforce. 

The H-1B program, which was developed to provide employers with 

temporary foreign workers who are highly skilled, has become a 

transitional program that enables many of these workers to become 

permanent legal residents in the United States. On the other hand, since 

the events of September 11, 2001, visas have been more difficult to 

obtain for immigrants entering the United States for higher education 

purposes. This may limit the availability of this source of skilled labor in 

certain industries where foreign workers have a strong presence.

In addition to noting these demographic trends, participants agreed that 

the gap between the skills needed by employers and the skill level of U.S. 

workers—both those entering the labor market and those already 

employed—poses a major challenge for the U.S. labor market. Participants 

discussed an array of factors contributing to the skills gap, including the 

need for workers to have more advanced skills than their predecessors, the 

need for workers to have specialized skills, the decreased availability of 

employer-based training programs and incumbent worker (i.e. employed 

worker) training funding, and the emphasis on college preparation at the 

expense of other career education options in schools. Specifically they 

said that:

• The United States is moving toward a knowledge-based economy that 

requires higher skills. A knowledge-based economy increasingly 

requires workers to have more advanced skills and higher levels of 

education than in the past. While creation of new technology—an area 

where the United States has traditionally been strong—can potentially 

mitigate tight labor markets, the United States needs workers with 

advanced skills in order to benefit from nascent technologies. 

Participants noted that industries that traditionally have not required 

their workers to obtain postsecondary education—such as some factory 

jobs—increasingly need employees that have a higher education level 

and more advanced skills than in the past. For example, one participant 

noted that in the past, a factory floor supervisor held a relatively 

unskilled position, but today, that same person would need a 2-year 
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 10 GAO-04-845SP 

college degree and on-the-job training. Employers need not only 

workers with strong math skills and good technical skills; they also need 

employees who have mastered the soft skills, such as communication 

and team building. In addition, there are certain occupations, such as 

those in the nuclear engineering and health care fields, that require 

specialized skills and will continue to be in demand.

• Workers are not receiving sufficient training. Participants generally 

agreed that more training is needed, although it is unclear who is 

responsible for training—the employers, employees, or both. 

Previously, in many industries, employers provided long-term training. 

Today, however, employers are less likely to train their employees 

because in a tight labor market they face the risk of losing workers to 

other firms that do not train. Although society as a whole benefits from 

trained workers, individual firms that provide training may not see a 

return on their investment. Similarly, prospective workers are unlikely 

to invest in training without knowing which skills will provide them with 

jobs that pay well. 

• Some countries have a greater supply of young, well-educated workers. 

The United States faces a significant demographic difference in terms of 

the age of U.S. workers and their technological skill compared with 

workers in countries such as India. According to some participants, 

some countries have large numbers of young, more recently trained 

workers entering their workforce. They noted that if workers in the 

United States cannot maintain the same skill level as new workers in 

these other countries, the United States will face a serious skills 

shortage that will affect the future rate of innovation and productivity. 

Several participants noted that maintaining incumbent worker skills 

might be difficult, as both employers and the federal government have 

reduced incumbent worker training support.

• Offshoring of jobs has increased and is likely to continue. Rapid 

advances in technology, increased trade, lower transportation costs, and 

communications innovations have greatly facilitated the offshoring of 

jobs, especially in the services sector. Given the high level of education 

and worker skill development in some countries, the jobs moving 

offshore are no longer low-wage, low-skilled jobs, but instead are those 

that attract high-skilled workers. In addition, the high cost of health 

care in the United States and the fact that it is factored into employer 

costs have contributed to employers’ decisions to offshore certain 

functions.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 11 GAO-04-845SP 

• Career education and apprenticeship training are not given enough 

emphasis. Other participants cautioned that parents and schools place 

too much importance on all young adults obtaining a college degree. 

Some youth may not pursue higher education and instead need training 

such as career education or apprenticeship training so that they can 

participate more fully in the labor force. Participants emphasized that 

there are many occupations—such as those in the building trades—that 

do not require a college education but can provide adequate wages to 

individuals with honed skills. 

Participants Discussed 

Strategies for 

Addressing the Tight 

Labor Market

Participants suggested several potential solutions to address the tight labor 

market that take into consideration both the needs of the U.S. labor force 

and the realities of a tight fiscal environment. A few participants 

questioned the effectiveness of current public training programs, and many 

agreed that employers, with the help of unions, should take an active role in 

determining training needs. To increase the number of skilled workers, 

most forum participants emphasized the importance of providing youth 

and young adults—especially those who will not attend college—with 

alternative education and training opportunities. Some also agreed that 

keeping older workers engaged in the labor force through flexible 

retirement policies could lessen future labor shortages. Finally, 

participants debated the need to change immigrant worker policies to 

better meet future workforce needs. Participants’ suggestions included the 

following:

• Increase the effectiveness of publicly funded training programs. Some 

participants questioned the effectiveness of public employment and 

training programs in helping job seekers enhance their job skills, 

identify job opportunities, and ultimately find employment. While the 

Department of Labor is responsible for overseeing many of these 

programs, such as those authorized under the Workforce Investment 

Act2

 and the H-1B Technical Skills Training Grant Program,3 other 

agencies, such as the Departments of Health and Human Services, 

2

 The Workforce Investment Act, which has been awaiting reauthorization since 2003, 

provides employment and training services to adults, dislocated workers, and youth. 

3

 Financed by fees paid by employers who bring skilled foreign workers into the United 

States under H-1B nonimmigrant visas, the H-1B Technical Skills Training Grant Program 

helped to develop and operate high-skill training programs for unemployed and employed 

American workers. Legislation adopted in 2000 authorized this program through 2003.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 12 GAO-04-845SP 

Education, and Housing and Urban Development, also support 

employment and training programs. Some participants argued that 

many of these employment and training programs provide overlapping 

services and said too many resources are spent operating duplicative 

programs, which serve relatively few people. Alternatively, one 

participant noted that current training funds are small relative to the 

total U.S. budget and argued that U.S. training investment per person is 

too low to be successful. To strengthen the public training programs, 

some participants suggested the following proposals:

• expand Labor’s High Growth Initiative so that it prepares workers for 

a variety of jobs, not just those in high-growth and top-paying 

industries;

• reauthorize the Workforce Investment Act to provide greater 

emphasis on incumbent worker training;

• consolidate public training programs to save resources and serve 

more individuals;

• present labor force statistics in a more useful way;

• evaluate newer models and programs that support disadvantaged 

workers; and

• restructure federal programs so that they are driven by employer 

needs.

• Encourage employers and unions to take the lead in determining 

training needs. Because employers are good at matching available jobs 

with skilled workers, some participants said that employers together 

with unions should take a leading role in determining training needs for 

workers. However, some participants said that employers are unlikely 

to actually provide training because they run the risk of losing trained 

employees to other employers—an outcome known as the free rider 

problem. Participants debated whether the federal government should 

encourage employers to provide training by offering them training tax 

credits. Specific points raised included the following:

• The federal government should give employers training tax credits to 

create a steady supply of skilled workers, solve the free rider 

problem, and correct for the depreciation of skills.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 13 GAO-04-845SP 

• Training tax credits were criticized by some participants because 

these credits reward companies that already have training programs 

in place, and the public views such tax credits as corporate welfare. 

An alternative would be to make these credits marginal, that is, 

credits would only be given for training above current spending 

levels and would target less-educated and nonmanagerial workers.

• Instead of going to companies, training tax credits should be given to 

individuals.

• Giving training tax credits to individuals would result in the same 

challenges as individual training accounts, which provide individuals 

with blocks of training dollars. Workers generally do not know what 

training is needed by employers, so leaving training decisions to 

workers would require additional education on what skills and 

training are considered necessary.

• Promote alternative education and training opportunities. 

Participants explained that many individuals lack the skills needed to 

get jobs with adequate wages. In some cases, these individuals are left 

out of the labor force. Some participants commented that the secondary 

educational system primarily focuses on preparing students for college 

and does not groom youth for alternative career paths. They felt that 

policy makers need to focus on policies and programs that promote the 

development of a wide range of skills needed for various jobs, including 

skilled jobs that do not require a 4-year degree. To increase the number 

of skilled workers, some participants recommended that business and 

unions have a central role in designing alternative education and 

training opportunities and made the following suggestions: 

• Career education needs to be emphasized in high school so that 

youth understand the linkages between classroom study and 

workforce skills.

• Programs that help disadvantaged young people connect to the labor 

force, such as Job Corps and Career Academies, need more funding.

• Vocational education needs to be incorporated into the high school 

curriculum for those who do not plan on attending college.

• Apprenticeships need to be promoted as a respectable and 

alternative career path.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 14 GAO-04-845SP 

• Education and training grants, such as Pell Grants, need more 

funding.

• Keep older workers engaged in the labor force. Some participants 

explained that older workers vary in the amount of hours they want to 

work before retiring. However, many pension policies do not offer older 

workers the flexibility to work part-time. To encourage the baby boom 

generation to retire gradually and to retain the skills of older workers, 

some participants suggested the following policy changes:

• support pension policy and regulation changes that allow workers to 

work part-time and still receive a pension;

• remove barriers to phased retirement that arise from confusion over 

tax, pension, and age discrimination laws; and 

• clarify the law on rehiring retirees. 

• Consider changing immigrant worker policies. Some participants 

argued that the federal government needs to change its immigrant 

worker policies to address future workforce challenges, while others 

warned that changing immigrant policies would not significantly meet 

the demands of a tight labor market and might only be a short-term 

solution. One participant explained that immigrant workers, at some 

point, would also need additional training. However, most participants 

agreed that current immigration policies were developed decades ago 

and do not address current workforce needs. Participants offered the 

following suggestions to change immigrant worker policies: 

• U.S. policies should support more permanent immigrants and fewer 

illegal immigrants.

• The federal government’s visa programs should not have fixed yearly 

limits on the number of people who may enter the country. Instead, 

the number of allowable visas should be given in a range that adjusts 

to meet workforce demands. 

• The executive branch, not Congress, should be responsible for 

determining the number of temporary workers who can enter the 

United States. Another participant argued that Congress should be 

responsible because it represents the larger social interest.
Appendix I

21st Century Workforce Challenges and 

Opportunities: Highlights of Forum 

Discussion

Page 15 GAO-04-845SP 

• U.S. immigration policy should not differentiate between permanent 

and temporary workers; instead, foreign workers should be 

considered transitional. 

• Non-native U.S. college graduates should be given green cards 

immediately after graduation instead of being sent back to their 

home countries.

• The U.S. visa program for foreign students to attend college and 

graduate school in the United States should be revised. Recent 

declines in the admission of foreign graduate students, especially in 

math and science, have implications for future U.S. productivity and 

innovation.

In summary, there was general agreement among the participants, who 

represented workforce experts, policy makers, and the U.S. business 

community, that action needs to be taken to address the impact of the 

projected demographic and economic changes on the U.S. labor force. 

Aging workers, a more diversified labor force, and the need for enhanced 

skills are all factors that will affect the ability of the United States to 

compete in a global economy. To address these issues, participants 

emphasized the importance of employers taking the lead in identifying 

training needs. In addition, to prepare for projected workforce challenges, 

participants suggested that the federal government enhance public training 

programs, provide alternative education and training opportunities for 

youth, engage older workers in the labor force, and consider changing 

immigration policies to better meet future workforce needs. 
Page 16 GAO-04-845SP 

Appendix II

21st Century Workforce Challenges and 

Opportunities: List of Participants ApendxiI

Mason Bishop Deputy Assistant Secretary 

Employment and Training Administration

U.S. Department of Labor

Peter Cappelli George W. Taylor Professor of Management

Wharton School of Business

University of Pennsylvania

Anthony Carnevale Vice President for Public Leadership

Educational Testing Service (ETS)

Phyllis Eisen Vice President, the Manufacturing Institute

Executive Director, Center for Workforce Success

National Association of Manufacturers (NAM)

Linda Ewing Director, Research Department

International Union, United Automobile,

Aerospace and Agricultural Implement Workers of America (UAW)

Cynthia M. Fagnoni Managing Director

Education, Workforce, and Income Security 

U.S. General Accounting Office

Ellen Galinsky Co-founder and President

Families and Work Institute

Lee Goldberg Long-Term Care, Policy Manager

Service Employees International Union (SEIU), 

AFL-CIO

Steve Gunderson Senior Consultant and Managing Director

The Greystone Group

Harry Holzer Professor of Public Policy

Public Policy Institute, Georgetown University

James Jarrett Vice President for Worldwide Government Affairs, Intel Corporation

Catherine Mann Senior Fellow

Institute for International Economics
Appendix II

21st Century Workforce Challenges and 

Opportunities: List of Participants

Page 17 GAO-04-845SP 

Representative Donald Manzullo Chairman, House Small Business Committee

Demetrios Papademetriou President

Migration Policy Institute

Jeffrey S. Passel Principal Research Associate

The Urban Institute

Anna M. Rappaport Consultant

Mercer Human Resources Consulting

Harley Shaiken Professor and Director, Center for Latin American Studies

Graduate School of Education

University of California, Berkeley

Robert Tobias Institute for the Study of Public Policy Implementation, American 

University 

David M. Walker Comptroller General of the United States

U.S. General Accounting Office
Page 18 GAO-04-845SP 

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Page 19 GAO-04-845SP 

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