Age-related changes in functional ability and work attitude affect job performance, but many variables affect the extent and timing of change for different older workers. Declines due to age occur in sensory/perceptual processes; strength, speed and accuracy of movement, and balance; and cognitive processes. Individuals can compensate for some declines, and others can be somewhat mitigated through changes in the work environment. Older workers demonstrate high levels of job satisfaction, job involvement, and internal work motivation. Alternative work arrangements and job modifications can compensate for age-related deficits. Little is known of the potential of training or retraining as a means of compensating for or overcoming the effects of age. Older worker interest in training is affected by retirement and human resource management policies. Formal training opportunities begin to decline for workers in their forties. Major knowledge gaps concern the following: (1) the impact of computers on older workers; (2) what works in older worker training situations; (3) how adult learning techniques work in a job training setting; and (4) how extensively they have been integrated into older worker training. Policy issues facing Congress include whether to increase funds for research on older worker issues, whether to consolidate federal support for older workers issues in one federal agency, and whether to develop mechanisms to encourage private sector investment in older worker research and development. (186 references) (YLB)