Undertrained workers, not dislocated workers, are the real problem in the American economy. The vast majority of the workers affected by structural change in the American economy appear to make employment transitions fairly swiftly and smoothly, with no need for public intervention. Undertrained workers, mostly employed and scattered in all industries, result from underinvestment in training by both employers and the workers themselves. In addition, worker-financed training at the beginning of a career and on-the-job training in midcareer will no longer be adequate. Midcareer formal training will become a necessary part of success, but it will be difficult for workers to finance. Since 1971, the French have operated a national system for financing training that creates an effective public-private partnership to address these problems. The key element is an "obligation to spend" whereby each employer must expend funds to maintain and expand the skill level of the French labor force. A national system should be set up in the United States that embodies a sustained level of investment in all human resources. (YLB)