Income replacement and reemployment programs in Michigan and its neighboring states were examined in the context of recent changes in federal policy regarding compensation and services for individuals who have lost their jobs or sustained job-related injuries. The analysis focused primarily on the following programs: (1) Unemployment Insurance (UI); (2) Workers' Compensation (WC); and (3) the cluster of reemployment and training programs that, since 1998, have come under the Workforce Investment Act. The analysis established that UI, Michigan Works!, and WC are unique among Michigan's programs because they replace lost earnings and deliver services to workers on a regular basis, whereas other programs intended to improve workers' well-being do so solely through regulation. UI and Michigan Works! are all becoming increasing contentious in the wake of welfare reform and the first recession in a decade. Although WC has been relatively free of controversy during the past decade, it, too, may be under increasing pressure as medical costs resume their rise. Despite the recent arguments regarding the generosity of their benefits and the appropriate extent of training for disadvantaged workers, UI, Michigan Works!, and WC have all gained widespread acceptance as essential to efficient funding of the labor market. (Thirteen figures/tables are included. The bibliography lists 57 references.) (MN)