Catherwood LibraryILR School

Part of President Bush's proposed job growth package, Personal Reemployment Accounts (PRA's) at first glance appear to be just what the doctor ordered---$3,000 that workers whose unemployment insurance is running out can use for job training, career counseling, anything to help them secure a job. Pointing to major tradeoffs involved in the proposal and to the fact that PRA's cannot create jobs in a labor market that remains firmly in the doldrums (see WIT's for Feb. 12 and 28, 2003), however, labor leaders and government administrators have raised serious doubts about the plan. While the $3,000 PRA benefit would give the unemployed more flexibility according to the Bush Administration, workers who accepted it would forfeit free job training and career counseling benefits guaranteed by the Workforce Investment Act worth $5,000 to $10,000.