America is creating millions of jobs. But, too many of these jobs go unfilled – five million to be exact. At the same time, there are roughly 8.7 million Americans looking for work and 24 million front-line workers who could fill these jobs, if they had the skills or were given the opportunity.
As the economy continues to improve, more and more employers struggle to find skilled workers with the requisite skills to fill in-demand jobs. At the same time, between twenty and thirty million workers in low-wage jobs – many of whom could be trained to fill more skilled roles – lack a clear path to a better job and career. According to the OECD, these workers are about half as likely as their high-skilled colleagues to participate in any job-relevant education or training over the course of the year. These workers need expanded opportunities and lowered barriers to gain both basic and technical skills.
In his State of the Union address last Tuesday, the President called on employers across the country to adopt or expand additional measures to help front-line workers gain the training and credentials to advance into better paying jobs – including paying for college education, offering on-the-job training for career progression, and increasing access to technology-enabled learning tools. The day after, the President’s first stop and appearance was at Boise State University in Idaho where he launched an “Upskill America” initiative:
Today, we’re partnering with business across the country to “Upskill America” — to help workers of all ages earn a shot at better, higher-paying jobs, even if they don’t have a higher education. We want to recruit more companies to help provide apprenticeships and other pathways so that people can upgrade their skills. We’re all going to have to do that in this new economy. But it’s hard to do it on your own, especially if you’re already working and supporting a family.
Many employers have already developed promising approaches to training and credentialing for upskilling front-line workers as part of successful talent strategies. And, we know that many others see the opportunity to benefit their workforce and bottom lines through investments in the skills of their front-line workers. This challenge creates a great opportunity for business, industry, labor, and government to team up and find and support a solution together.
The Administration is working with employers to identify and spread best practices for education, training and credentialing of front-line workers to help with their job progression. Examples of these practices are employers paying for their front-line workers’ college education, identifying clear internal pathways, providing career counseling and coaching, offering on-the-job training that leads to career progression, and providing access to online and technology-enabled education tools so workers can develop their basic and technical skills.
In the coming months, businesses of all sizes will be convened, as well as foundations, education and training non-profits and other partners who are committing to make new investments, to collectively set new goals and change policies that will enable low-skilled front-line workers to progress into better-paying jobs and help employers meet their current and projected unmet demand for skilled labor.
This effort to improve the skills of front-line workers builds on the actions Vice President Biden presented to President Obama on July 22, 2014 as part of his report Ready to Work: Job-Driven Training and American Opportunity. In his 2014 State of the Union address, the President had tasked Vice President Biden with leading a review of federal employment and training programs, with the aim of making them more job-driven. Ready to Work: Job-Driven Training and American Opportunity highlights successful job-driven training strategies, details executive actions that are being taken by the federal government, and new commitments by employers, non-profits, unions and innovators to help spread what’s working. As indicated in the release of the Ready to Work report, if you’re ready to work, you should be able to find a job that fits your skills, or get trained with the skills you need for a better job.
In November 2014, U.S. Secretary of Labor Perez launched The Skills Working Group, an interagency effort to maintain focus and attention around interagency, collaborative efforts of the Job-Driven Training Initiative, as well as emerging opportunities around cross-agency skills coordination. Thirteen federal agencies, the White House National Economic Council, and the Office of Management and Budget make up The Skills Working Group including the departments of Labor, Education, Commerce, Health and Human Services, Agriculture, Housing and Urban Development, Veterans Affairs, Transportation, Energy, Defense, Justice, Interior, and the Social Security Administration. The Office of Career, Technical, and Adult Education has been an active contributor to this work and leads the career pathways and upskilling work streams.
I find it inspiring to see businesses and labor-management initiatives expand access to training and provide supports for Americans to access pathways into the middle class. CVS Health, for example, is expanding access to job-advancement training for their employees by launching two new regional learning centers that will serve thousands of additional employees in the next two years. This builds on the six regional learning centers CVS Health currently operates in partnership with community colleges and other community service organizations, to help support thousands of workers as they build customer service- and healthcare-related job skills for career progression. The Upstate NY 1199 SEIU Training and Upgrading Fund started C.N.A. training in the Syracuse (Central NY) area three years ago for incumbent SEIU members to allow lower level workers (dietary and housekeeping) to move up the career ladder. Since this initiative was not always able to fill this program with incumbent workers, they started drawing on people from the community. Community participants are funded through grants.
It is also exciting to see how many opportunities the new Workforce Innovation and Opportunity Act (WIOA) provides for businesses – in partnership with adult education and youth and adult training providers or otherwise – to ensure that our nation’s workforce is ready to work and remains highly skilled and competitive. Whether it is through the Adult Education and Family Literacy Act – Title II of WIOA – or through any of the other core programs, WIOA can play a critical role in achieving the goals of UpSkill America. Here are just a few ways that WIOA can do this:
- Employer partnerships with education providers are eligible entities under Title II. This creates opportunities for employers and providers to team up and offer foundation skill development opportunities for low-skilled workers looking to get ahead. Learn more at a new, interactive site designed to support employer-adult education partnerships.
- Employers can take advantage of increased access to work-based training. WIOA provides the ability for local workforce investment areas to help employers train their workers.
- WIOA also increases reimbursement available for on-the-job training from 30 percent to 75 percent.
- Businesses, under WIOA, can collaborate with American Job Centers, community colleges, and adult education providers to develop integrated education and training programs—including Registered Apprenticeships—at the workplace to help employees gain basic and technical skills and advance to the next level of work. Further, this collaboration can support regional sector strategies and the development of career pathways that support job seekers and help meet the needs of employers.
- WIOA places a great emphasis on serving out-of-school youth. The new law requires local communities to spend at least 75 percent of available youth funding, or approximately $500 million, on this population. This provision goes into effect July 1, 2015. By partnering with the public sector to provide apprenticeships, internships, summer jobs, and other on-the-job training experiences, businesses can help the nation maximize opportunities for disconnected youth and young adults and build a skilled workforce.
The UpSkill America initiative, the implementation of WIOA, the modernization and expansion of apprenticeships, and the implementation of the executive actions in the Ready to Work report are all contributing to the momentum that is building in our country to make sure that all Americans have the skills that employers need and that will allow them to get ahead.
Johan E. Uvin is the Acting Assistant Secretary for the Office of Career, Technical, and Adult Education