High level investments needed to save U.S. workplace, report says
Workers will lag behind job requirements because existing education and training resources will fail to prepare them properly.
Workforce reports from any number of government and private policy employment nerve centers present an increasingly fractured picture of the engine driving the U.S. economy. Littler, a major employment and labor law practice representing management, has produced its own construct of where the workforce is today and where it may well be headed. Its analysis and forecast look further into the future than most.
The conclusion: Unless the nation begins to invest heavily now in programs that will properly prepare tomorrow’s workers for the emerging Uber technology driven workplace, employers will continue to struggle to find the skilled workers they need. And workers will lag behind job requirements because, through no fault of their own, existing education and training resources will fail to prepare them properly.
Littler’s government relations and public policy arm, Workplace Policy Institute, produced a 16-page report, The American Workforce Transformation – Challenges and Opportunities, describing the dynamics behind the current state of the U.S. workforce. The report outlines where and how education and training of future employees went off the rails, and details the challenges of major industries as they attempt to staff up in the face of severe shortages of the new skills required to succeed in 2023. It includes a summary of workforce trends and current initiatives designed to address the labor shortage.
But many of these initiatives are short-sighted and fail to address larger trends that are rapidly changing how work gets done.
“New technologies and artificial intelligence are reshaping the workplace at unprecedented speed. Many jobs and fields are obsolete due to innovations of the last two decades, yet these same advancements have spurred the creation of new occupations and industries,” the report says. “Employers across nearly every industry and sector are competing to find workers with the skills necessary for success. Students and workers should be prepared with in-demand skills not only for the job market of 2023, but for the workplace of tomorrow.”
After making its case and sounding the alarm for decisive action, the report outlines initiatives that would bring the employer-employee equation back into a productive balance.
“Investments in workforce systems and education, including the expansion of apprenticeship and on-the-job training, can equip the American workforce to thrive in a skills-based job market,” it says. It then recommends the following:
Modernize federal labor market reporting data to leverage AI and advanced technologies to support a skills-based approach to employment
The study argues that current reporting methods and standards are outdated and fail to emphasize areas of work that are quickly emerging as cornerstones of the economy. “Rapid technological advancements, combined with the seismic shift in how employers operate their workplaces in the post-pandemic world, are creating a rapidly changing work environment and ever-evolving workplace policies,” the report states. Employers are increasingly asking what job applicants can do rather than depending upon what a candidate’s educational background tells them.
“A critical first step toward leveraging AI and advanced technologies to support a skills-based approach to employment is the modernization of federal labor market reporting data that is both accurate and accessible in real-time to job seekers and employers. As such, the need for enhanced, granular data is critical to understanding the complex dynamics of the U. S. labor market to identify economy-wide trends in emerging roles and industries, along with the skills needed for in-demand jobs. Additionally, this information is essential for lawmakers, employers, educators, and others to make informed decisions, guide resource allocation, and achieve better employment outcomes.”
Reauthorize the Workforce Innovation and Opportunity Act (WIOA)
The act has been tinkered with in Congress. But the tinkering falls woefully short of giving the act the power to transform programs and institutions that prepare people for the emerging workplace.
Given that WIOA is the nation’s primary workforce development law and its reauthorization ended in 2020, it is imperative that the law be reauthorized and reformed to reflect today’s realities and technological advances in the workplace,” the report says.
A truly supportive act would “enhance support and funding structures for state and local-led reskilling/upskilling efforts. Rather than expanding federal control over the workforce system, the role of states and local communities must be elevated. A significant share of WIOA funding flowing to the states should be dedicated to upskilling the workforce, including through individual training accounts and employer-designed customized training programs.”
Downplaying the role of the federal government is the critical piece of reforming the act.
“A common complaint by states and those who administer WIOA programs is the existence of bureaucratic hurdles. Given the current labor shortage and widening of the “skills gap,” barriers to training and employment should be decreased” by eliminating as much federal bureaucracy as possible from the act.
Diversify and expand the National Apprenticeship system
Littler argues that an overhaul of the nation’s apprenticeship structure would go far to creating a workplace-ready workforce. “Registered Apprenticeship Programs administered by the U. S. Department of Labor have a long and successful history in the skilled trades. To expand beyond these traditional fields, the Department should partner with other key industries and sectors of the economy to meet employer demand and market needs.”
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Creation of specialty Pell grants
Finally, the report calls for the creation of short-term federal Pell grants to fund an array of job-training programs. “Given the continuing labor shortage, bipartisan momentum is growing in Congress to consider short-term federal Pell grants for job-training programs. This includes the bipartisan ‘JOBS Act of 2023,’ S. 161, which would amend the Higher Education Act to allow students to use a federal Pell grant at shorter-term workforce programs, making it easier for students to access post-secondary programs outside of traditional degree programs.”