Based on surveys of state workforce and unemployment insurance (UI) administrators, this study examines how the public workforce system responded to declining funding after the Great Recession. Funding for workforce programs declined sharply, while demand for services remained high. Most states did not supplement federal funding. Instead, they reduced the number of workers served, changed the mix of services offered, and replaced training and more intensive services with less intensive services. UI programs continued paying benefits, but because program administration did not keep pace with benefit payments, states responded by reducing UI staffing and increasing automation.