Turning point: A changing workforce requires new approaches to training
A collaboration between businesses and broad-access institutions, along with other parties, is the key to training tomorrow’s workforce.
There’s no going back to the pre-pandemic economy, according to a report from the Committee for Economic Development of The Conference Board (CED). The board’s new report, “A U.S. Workforce Training Plan for the Post-pandemic Economy,” is part of its “Sustaining Capitalism” series, which aims to take a nonpartisan look at the economic challenges facing the country.
The study found that the nation’s business leaders, policy-makers, and educators need to acknowledge the changes happening in the workforce, which include a move to remote work, technology advances, increased automation, and evolving skillset requirements.
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“The pace of change, including the accelerated technological transformation during the pandemic, demands a workforce of life-long learners continuously upgrading their technical skills, as well as those abilities valued by employers that cannot be automated: critical thinking, communications, and the ability to think ‘outside the box,’” said Lori Esposito Murray, President of CED. “Looking forward, the US must incentivize public-private partnerships that aim to bridge the skills gap to sustainable, well-paying careers and also incentivize unemployed and employed workers to prepare for the post-pandemic economy.”
Opportunities to improve the educational landscape
The report noted that training efforts in recent decades have been funded and directed by employers and trainees, with consumers spending nearly $250 billion in 2019 on higher education and vocational programs. By comparison, the federal government spent an estimated $14 billion on employment and training efforts, primarily focused on unemployed and vulnerable populations. The federal government also spent an estimated $75 billion for higher education, including grants and loans.
During this time, while federally funded worker training outside of higher education has declined, community colleges and vocational schools have become well-positioned to deliver in-demand skills. A collaboration between businesses and broad-access institutions, along with other parties, is the key for training tomorrow’s workforce, the CED study said.
“Many stakeholders—including educators, private training providers, nonprofits, and government—must coordinate to deliver training programs focused on skills and jobs,” the report said. “But most critically, business partners attuned to industry needs must engage in this process and help map career pathways that correspond with actual jobs needed in their industries.”
A new focus on unemployed and vulnerable populations
The researchers found that even with vaccinations blunting the spread of COVID-19 and an improving economy, some old jobs will simply not be returning, and the high number of unemployed Americans may find new challenges in getting back to work.
For example, the new emphasis on remote work and the decline in commuting and business travel may permanently reduce demand for some in-person, low-wage service jobs.
“Across all sectors, from health care to leisure and hospitality, occupations that were already at high risk of automation—such as medical assistants, food preparation and serving workers, receptionists and front desk clerks, housekeepers, ticket takers, and customer service agents—will become even more susceptible to job losses in a digital-forward, post-pandemic economy,” the report said.
The CED analysis noted that the pandemic has disproportionately displaced minority workers, women, youth, and workers with fewer academic credentials. Many of these workers have been unemployed for six months or longer. Workers in this situation face challenges in getting a new job the longer they are without one.
With these points in mind, the report included a range of recommendations for business leaders and educators, saying that they should work with policymakers in re-shaping the workforce. Recommendations included:
- Grow and diversify talent pipelines that include support of underrepresented or economically vulnerable groups, such as workers economically impacted by COVID-19.
- Design curricula and training for the skill sets and experience employers need from new hires.
- Determine credentials based on attainment of skills instead of degrees.
- Engage with state and local workforce boards or employer-driven regional consortiums to improve the quality of publicly supported training pathways; and
- Participate in sector-based initiatives that deliver learn-as-you-earn opportunities to draw in workers who would otherwise be excluded because of their financial circumstances.
The CED report also listed recommendations for policymakers, including more incentives and subsidies for training of workers; increasing broadband internet access; and expanding opportunities for students to learn skills through apprenticeships or other employer-connected training.
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