This report was prompted by a request from three members of the Senate, who asked the Department to explore some alternative ways of using the unemployment insurance (UI) system to deal with structural unemployment problems. In particular, the Senators requested that two specific alternative uses of UI trust funds be explored: (1) to provide income support while the recipient tries to start up a small business; and (2) to finance retraining, education, and/or relocation expenses. This report focuses on these alternatives uses of UI trust funds for structurally unemployed workers who are generally referred to as ?dislocated? or ?displaced? workers. Structural unemployment is long-term unemployment caused by disparities between the characteristics of jobs offered by employers and the needs, skills, and expectations of job seekers. The subgroup of structurally unemployed workers who are the primary concern of this report experience lay-off when their establishment closes or substantially reduces its scale, and they find their old skills no longer in demand at the wages and under the conditions of work they believe suitable.