Faced with worker displacement stemming from a changing economy, states are acting to soften the economic impact of displacement on affected individuals and businesses. Key strategies and practices are as follows: (1) anticipating layoffs by analyzing economic and labor market trends (using data to anticipate layoffs; developing an early warning network to trigger services); (2) averting layoffs by mobilizing workforce and economic development resources (implementing business retention strategies; partnering with economic development agencies; promoting short-term compensation as an alternative to layoffs; increasing incumbent worker training); (3) helping dislocated workers find new jobs as quickly as possible through community partnerships and improved assessments (developing regional approaches to providing reemployment services; establishing broad-based partnerships to reemploy dislocated workers; developing new models to expedite reemployment); and (4) training laid-off workers for new jobs and careers by exploring flexible training strategies and drawing on various federal and state resources (designing flexible, demand-driven education and training programs; exploring e-learning options; implementing employer-focused, industry-based training; assembling training resources for multiple funding streams; providing tuition assistance to dislocated workers; using flexibility within unemployment insurance to provide training and offer extended income support). Forty-four selected state strategies for assisting dislocated workers and descriptions of nine tools for policymakers are appended. (Contains 10 endnotes.) (MN)