The competencies of the nation's workers have been improving steadily. However, the improvements have not kept pace with the increased skill demands imposed by technological advancement and the shift toward a service-based economy. Academic and functional literacy problems can only be alleviated by balancing school improvement efforts with improved efforts in homes and throughout the community. The net effect of Comprehensive Employment and Training Act (CETA) programs was found to depend on the extent of remediation and training in the service mix, with more intensive and longer employability development yielding more than proportional new impacts. It would thus appear that the greatest impacts would be secured under Job Training Partnership Act (JTPA) programs by concentrating longer treatments on the more disadvantaged clients, beginning with remediation in basic skills for all entrants and selecting candidates for vocational training from those acquiring needed basic skills. JTPA programs should place more emphasis on basic skills competency and remediation. This could be done by having Service Delivery Areas exercise their authority to set detailed competency standards for academic, functional, and vocational instruction and identifying core curricula to help local delivery agents meet these standards as well as by refocusing the JTPA summer programs on remedial education and employability skills development. (MN)