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1 The Skilled Technical Workforce Development Challenge The United States needs a skilled technical workforce to compete in the global economy and to sustain a high standard of living for its citizens. If the nation does not adequately develop and sustain this skilled workforce relative to what is needed, the consequences will be seen in lower productivity, falling revenues, and fewer job opportunities for Americans. Addressing this workforce development challenge requires understanding the scale and dynamics of the skilled technical workforce, as well as the complex and rapidly changing environments within which Americans provide and acquire skills and training for the jobs of the future. 1.1 KEY CHALLENGES FOR DEVELOPING A SKILLED TECHNICAL WORKFORCE Globalization and scientific and technological change are affecting nearly every aspect of modern life, from how people communicate with each other to how they shop, how they make things, and how and where they work. As artificial intelligence and advanced robotics become ubiquitous, substantial changes are likely in the nature and character of work as humans find new ways to work symbiotically with the machines they have created and as machines increasingly work autonomously (see, for example, Brynjolfsson and McAfee  and Frey and Osborne ). As a 2017 report by McKinsey & Company (2017, p. 3) concludes, âIndividuals in the workplace will need to engage more comprehensively with machines as part of their everyday activities, and acquire new skills that will be in demand in the new automation age.â Adapting to this new world, American employers are demanding workers with greater proficiency in literacy and numeracy and strong interpersonal, technical, and problem-solving skills. 5
6 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE Many employers report experiencing difficulty finding skilled workers, although some employers may be using inappropriate screening criteria, such as requiring a 4-year degree for jobs that do not require this credential. At the same time, many students either are unaware of well-paying jobs available for skilled workers or shy away from training opportunities because of a lack of basic math or science skills. This reported shortage of skilled workers raises questions about the role of postsecondary credentials, the value of technical skills, and whether the U.S. education and workforce development systems are meeting the skills development challenge. It also raises questions about whether labor markets have the incentives and information to function properly. While this report examines these challenges in depth, it also presents evidence in Chapter 6 that integrating academic education, technical training, and hands-on work experience produces better outcomes and return on investment for all students in elementary, high school, postsecondary, and continuing education. Moreover, a growing body of research on promising initiatives under way across the United States can be instructive for designing and implementing supportive policies and for allocating resources across organizations and programs. 1.2 THE IMPORTANCE OF SKILLS Over the past decade, policy makers and employers have been concerned that advances in science and technology, slower population growth, and the retirement of the baby boom generation would lead to a shortage of skilled labor. These developments have important implications for the economy, society, workers, and employers. For the economy, a skilled workforce is necessary to grow employment, output, and productivity (Lerman, 2015). If employers cannot hire workers with the right skills, they cannot produce enough of the higher-value products and services in the United States that are associated with sustained innovation and growth. Employers may then relocate or cease to operate. For society, a skilled workforce is linked with better public and fiscal outcomes. As Figure 1-1 shows for the example of literacy skills, inequality in skills is associated with inequality in income, which creates pressure on public order and public programs. For instance, if a low-skilled workforce leads to slow economic growth and declining tax revenues, government budgets will be strained as a larger share of the population retires and draws on public programs such as Social Security and Medicare. Figure 1-1 also shows that citizens with low skill levels tend to report poorer health, lower levels of civic engagement, and less trust relative to those with higher skill levels (OECD, 2013). For individual workers, higher skill levels are necessary to compete for increasingly skill-intensive jobs and higher wages, and are associated with a
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 7 FIGURE 1-1 Likelihood of positive social and economic outcomes among highly literate adults. NOTE: The figure shows the increased likelihood (odds ratio) of adults scoring at level 4/5 in literacy reporting high wages, high levels of political efficacy, participation in volunteer activities, high levels of trust, being employed, and having good to excellent health relative to those scoring at or below level 1 in literacy (adjusted). Odds ratios are adjusted for age, gender, educational attainment, and immigrant and language background. High wages are defined as workersâ hourly earnings above the countryâs median. SOURCE: OECD, 2012b, Graph II.1.1. wide range of better outcomes. A recent cross-country survey of adult skills by the Organisation for Economic Co-operation and Development (OECD) Programme for the International Assessment of Adult Competencies found that skills have a major influence on life choices and outcomes: lower-skilled workers have fewer opportunities in many areas of life and are increasingly likely to be left behind. In an innovative economy, workers must continually upgrade their skills. Those with technical skills need to determine how best to maintain their employability, pursue career advancement, and respond to unexpected changes in demand for their current skill set. Low skill levels make it more difficult for workers to attain additional education or training when structural changes require adaptation to new methods and processes (OECD, 2013). For employers and firms, a skilled workforce is needed to adapt to rapid technological changes. Assessment, analysis, and communication of information and action are now conducted with a wide range of software applications using personal computers, smartphones, and the Internet. As employers increasingly automate tasks and incorporate artificial intelligence in standard operating
8 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE procedures and decision-making processes, the capacity of workers to use these tools to manage tasks is becoming essential in most occupations and jobs. The demand for a skilled technical workforce is changing so rapidly that workers, employers, educators, policy makers, and civic organizations need to be highly flexible and forward looking. Likewise, the nationâs approach to workforce development and skills acquisition must also adapt to changing realities at the federal, state, and local levels. Although some skilled technical jobs in such occupations as production and transportation are being eliminated through automation and outsourcing, others are in high demand. These latter jobs, which require the ability to use new technologies, can be found in growing industries associated with health care, advanced manufacturing, and information technology. Many skilled technical jobs require postsecondary credentials below the 4-year degree, yet they provide competitive salaries and benefits, as well as the opportunity to advance to even better positions. With sufficient information and resources, these jobs could be filled by people with high-quality education and training provided by community colleges, career and technical education programs, apprenticeships, and a growing number of web-based educational programs. As American policy makers work to tackle the challenges of social and economic development, then, they must consider whether they are creating the conditions that will prepare citizens for skilled technical jobs. These jobs require problem solving and a broad range of competencies in addition to occupation- specific technical competencies. Box 1-1 lists the general set of worker competencies identified by the U.S. Department of Labor. 1 With the implementation of the recently reauthorized Workforce Innovation and Opportunity Act of 2014, policy makers at all levels are expected to make the U.S. workforce development system more demand-driven and accountable. Tackling these challenges requires that policy makers â¢ understand current trends in the level and distribution of skills in the adult working-age population; â¢ determine the adequacy of the supply of skilled workers to meet the changing demand for skills driven by social, technological, and economic requirements; â¢ ensure that individuals can develop and maintain the necessary skills and adapt positively to social and economic change; and â¢ create the conditions that forge strong, positive linkages between skill acquisition and social and economic outcomes. 1 A recent report of the National Academies of Sciences, Engineering, and Medicine (NRC, 2012) elaborates on the types of skills and learning required to be successful in the 21st century.
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 9 BOX 1-1 An Array of Skills and Competencies The following is the general set of worker competencies identified by the U.S. Department of Laborâs Competency Model Clearing House: â¢ Personal skills. These include interpersonal skills, integrity, initiative, dependability, reliability, adaptability, flexibility, and lifelong learning. â¢ Academic competencies. These include basic academic skills such as reading, writing, and mathematics; advanced knowledge and skills in science and technology relevant to the occupation; and critical and analytical thinking. â¢ Workplace competencies. These include understanding the big picture of the organization, such as inputs, throughputs, and outputs; teamwork and collaboration; customer focus; planning and organizing; problem solving and decision making; working with tools and technologies; scheduling and coordination; and checking, examining, and recording. â¢ Industry-wide technical competencies. These are the knowledge, skills, and abilities associated with a particular industry, such as health care or manufacturing. They are cross-cutting competencies common to most occupations within the industry. These competencies typically relate to comprehension, awareness, or analysis. â¢ Occupation-specific technical competencies. These are the knowledge, skills, and abilities associated with particular occupations, such as emergency medicine or automotive manufacturing technicians. SOURCE: Competency Model Clearing House, 2015. 1.3 STUDY CHARGE, SCOPE, AND APPROACH Recognizing the challenges outlined above, the National Academies of Sciences, Engineering, and Medicine convened the Committee on the Supply Chain for Middle-Skill Jobs to examine the coverage, effectiveness, flexibility, and coordination of programs that prepare Americans for skilled technical jobs. In carrying out its charge, the committee considered such topics as gaps in coverage and fluctuations in the labor market, the current and preferred public- and private-sector roles in financing and providing employment training and skills certification, and the incentives and information resources available for individuals to improve their work skills (see Box 1-2).
10 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE BOX 1-2 Statement of Task An ad hoc committee will examine the coverage, effectiveness, flexibility, and coordination among the nationâs programs to prepare Americans for technically oriented, skilled positions in the workforce demanding non-routine problem solving but not requiring a baccalaureate or higher degree. This system includes apprenticeship programs of schools, unions, and employers; high school Career Technical Education programs; advanced technical education and training in community colleges and for-profit colleges; employer- financed and -provided training; federal education and training programs; state learning exchanges; public-private employment training partnerships; and licensing and skills certification. Among the topics the committee will consider are the gaps in coverage and market failures in this part of the labor market, the current and preferred public- and private-sector roles in financing and providing employment training and skills certification, and the incentives and information for individuals to improve their work skills. The committee will also consider selected employment preparation practices in other countries (e.g., European apprenticeship programs) and of foreign-headquartered firms and their relevance to the U.S. labor market. In addition to reviewing and synthesizing the existing social science and program evaluation literature, the committee will commission papers and organize a national symposium bringing together researchers, industry representatives from diverse sectors, policy makers, and other stakeholders involved in technical workforce education and training. Based on its understanding of the evidence and experience, the committee will write a report with conclusions and action-oriented recommendations. During its first meeting, in February 2015, the committee highlighted 11 key areas of analytical attention and identified capable researchers to prepare detailed reviews of the existing literature and practices in these areas. Box 1-3 provides a list of the papers commissioned for this study. Collectively, these papers provide comprehensive coverage of salient definitions, labor market dynamics, pathways and pipelines, the role of community colleges, the role of employers, apprenticeship programs, federal workforce development programs, pathways to skilled technical allied health care occupations, veteran unemployment benefits and transition assistance, information resources, and competing on innovation. In addition to commissioning this research, the committee organized a national symposium, held in June 2015, that brought together researchers, representatives from various industry sectors, policy makers, and other stakeholders involved in technical workforce education and training (NASEM, 2015). The agenda for this meeting is presented in Appendix A. During the symposium, the commissioned papers were presented by their authors and
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 11 BOX 1-3 Papers Commissioned for This Study â¢ Jonathan Rothwell, The Brookings Institution: âDefining Skilled Technical Workâ This paper helps frame how skilled technical workers should be defined and analyzed, with an emphasis on the skills that distinguish them from those in less advanced occupations. â¢ Alicia Sasser Modestino, Northeastern University: âMiddle Skill Workers in Todayâs Labor Marketâ This paper provides a framework for analyzing the potential mismatch between the supply of and demand for skilled technical workers over the next two decades. The goal is to understand the magnitude of the problem, as well as the efficacy of alternative approaches aimed at addressing the skills gap. â¢ David Stern, University of California, Berkeley: âPathways or Pipelines: Keeping High School Studentsâ Future Options Open While Developing Technical Skills and Knowledgeâ This paper describes work-related education in high schools, and offers suggestions about the role of high school programs in the supply chain for jobs that do not require a baccalaureate or higher degree. â¢ Melinda Mechur Karp, Columbia University: âCommunity College Pathwaysâ This paper examines sub-associate degrees offered by community colleges, both in terms of their stand-alone impact and in terms of their connection to a broader education and training system. â¢ Robert L. Lerman, Urban Institute, American University, and IZA: âAre Employers Providing Enough Training? Theory, Evidence, and Policy Implicationsâ This paper examines the types and amounts of skill development, especially employer-sponsored training, that are taking place in the United States. â¢ Andrea Messing-Mathie, Northern Illinois University: âApprenticeship Pathways to Skilled Technical Jobsâ The focus of this paper is on the potential for expanding apprenticeship as part of the development of career pathway systems, particularly for young people, as they transition from secondary into postsecondary institutions and/or careers. (Continued)
12 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE BOX 1-3 Continued â¢ Carolyn J. Heinrich, Vanderbilt University: âFederally Funded Workforce Developmentâ This paper describes evolving administrative and organizational structures of the federal workforce development system. The paper also examines the Workforce Innovation and Opportunity Act of 2014 (WIOA) and the opportunities this law presents for improving system structures, aligning incentives, and strengthening program coordination and effectiveness. â¢ Bianca K. Frogner and Susan M. Skillman, University of Washington: âPathways to Middle-Skill Allied Health Care Occupationsâ This paper explores the education and training pathways to skilled technical occupations in allied health care, which generally require less than a bachelorâs degree for entry. â¢ Susan Payne Carter and Brian J. Miller, U.S. Military Academy: âAnalysis of Army Veteran Unemployment Benefits and Transition Assistanceâ This paper analyzes how the incentives created by the Unemployment Compensation for Ex-Service Members (UCX) program affects how the program is used to facilitate ex-service membersâ transition back into the civilian labor market. â¢ Andrew Reamer, George Washington University: âInformation Resources to Facilitate Middle Skills Workforce Developmentâ This paper begins with a summary of the types of labor market participant decisions that require good information, follows with an overview and assessment of currently available information resources, and then offers recommendations for enhancing these information resources. â¢ Robert G. Sheets, George Washington University, and Jason A. Tyszko, U.S. Chamber of Commerce Foundation: âCompeting on Innovation: Implications for Building the Middle-Skill Talent Pipelineâ This paper proposes that to compete on innovation, it is necessary to rethink how high schools, community colleges, and universities could potentially partner with employers to provide more cross-functional and interdisciplinary experiences. SOURCE: http://nas.edu/SkilledTechnicalWorkforce.
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 13 discussed by a diverse set of experts. The papers were revised based on the discussion at the symposium and later posted on the National Academies study website. 2 The committee convened a further four times in 2015 and 2016 to gather additional evidence from experts on topics including the scope and nature of applicable federal legislation, the role of state programs and policies, the value of online learning technologies, impediments to transitioning military personnel into the civilian skilled technical workforce, and the challenges facing efforts to collect data on the market for skilled technical workers. The agendas for these meetings are presented in Appendix A. These meetings were supplemented by further research on the academic and policy literature. As the committee learned more about current workforce development issues, its thinking about the nature of the workforce development challenges evolved. This evolution, which has important implications for the committeeâs findings and recommendations, included refining its definition of the workforce, and rethinking the nature of the policy problem and the feasible set of approaches to addressing related issues and challenges. 1.4 DEFINING THE WORKFORCE As a first step in developing its findings and recommendations, the committee refined its conception of the segment of the workforce addressed by this study and decided to refer to it as the âskilled technicalâ rather than âmiddle-skillâ workforce. The committee determined that the term âmiddle- skill,â which has been widely used to describe skilled technical occupations, fails to capture the high value and dynamism of this segment of the U.S. workforce. Some participants in the June 2015 symposium also observed that the term âmiddle-skillâ is perceived by some to have pejorative connotations. This view may make some students reluctant to obtain training for these jobs because of a stigma attached to âmiddle-skillâ jobs and related educational pathways and careers. 3 Industry experts at the symposium noted that such 2 A webcast of the symposium, research papers, and presentations can be found at http://nas.edu/SkilledTechnicalWorkforce. 3 According to Jeff Strohl, director of research at Georgetown Universityâs Center on Education and the Workforce, âSub-baccalaureate education suffers the stigma of the vocational-technical high school. Thatâs where other peopleâs kids went. People see those programs as tracking into something thatâs dead end.â In fact, he says, âItâs very clear that that perception does not hold upâ (see Marcus, 2013). The impact of social perceptions on career choices is also discussed in Holzer (2015b).
14 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE negative perceptions may limit the ability to attract workers to skilled technical jobs. 4 After reviewing a number of different definitions and approaches to measuring the skilled technical workforce, the committee adopted the following definition: âThe occupation requires a high level of knowledge in a technical domain, and it does not require a bachelorâs degree for entry.â Using this definition of skilled technical work, Rothwell (2015) estimates that in 2014, there were 16.1 million skilled technical workers in the United States, collectively representing 11.9 percent of the total U.S. workforce. The committee noted that some analysts use slightly different definitions of and analytical approaches to measuring the skilled technical workforce, and therefore derive different estimates of its size. Box 1-4 provides an overview of the estimation challenges, which are discussed in more detail in Chapter 2. Rothwell (2015) reports that although skilled technical workers are found in most occupation groups, 82 percent are concentrated in the areas of installation, maintenance, and repair; health care; construction and extraction; and production (see Figure 1-2). The remaining 18 percent are employed in computer and mathematical occupations (5 percent), architecture and engineering (4 percent), and 16 other occupations in a wide range of categories (9 percent). The labor markets for each of these occupations are quite different, as discussed in more detail in Chapter 2, because they are all affected by local rather than aggregate changes in demographics, technology, and educational and economic opportunities. More detailed analyses of the nature of skilled technical work led the committee to emphasize that a simple cutoff of education or salary levels is an inadequate basis on which to define these jobs. While skilled technical jobs are often described as requiring some postsecondary education and training but less than a 4-year college degree, Rothwell (2015) found that there is considerable variation in education and training among these workers (Holzer and Lerman, 2007). He estimated that most workers in these occupations hold some form of postsecondary certification but do not hold a 4-year degree. However, his estimates indicate that 31.9 percent of workers in skilled technical occupations have a high school diploma or less, 18.7 percent have a bachelorâs degree or higher, and about 15 percent have a 2-year degree. Relative to the average worker, the middle-wage occupations have a higher rate of bachelorâs degree attainment and a similar rate of high school diploma or lower attainment. Finally, it appears that skilled technical workers receive significantly more on- the-job training and have more work experience relative to the average worker. 4 The Manufacturing Institute has pursued the âDream It. Do It.â campaign in an effort to âovercome the negative stigma that a career in manufacturing is a dirty, low-wage jobâ (see The Manufacturing Institute, 2015).
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 15 BOX 1-4 Estimation Challenges One of the committeeâs first tasks was to define and identify skilled technical occupations and then describe the characteristics of workers in those occupations. In a paper commissioned by the committee, Jonathan Rothwell describes the strengths and limitations of several approaches that use various proxies to estimate the skill level of a given job (Rothwell, 2015). Researchers have typically used either a relative or absolute ranking to determine skill level based on either education or wages. For example, relative rankings classify occupations by skill level from lowest to highest and then use cutoffs at specific percentiles of the distribution to determine what falls in the middle (e.g., a occupations falling into the 20th to 80th percentiles). By contrast, absolute rankings of skilled technical jobs use predefined skills criteria for specific jobs (e.g., education beyond high school but less than a 4-year degree) and then b categorize occupations accordingly. Both methods rely on the characteristics of incumbent workers (e.g., either education or wages) to categorize occupations. Rothwell notes that it may be misleading simply to use wages or educational requirements as an indicator to identify skilled technical jobs. Workers in the middle of the wage distribution may be relatively unskilled but compensated well. Similarly, low-wage workers may be relatively skilled but subject to downward wage pressure because of changes in international competition or technology. Using educational requirements is also troublesome because there is potentially large variation in the technical skills of people who have acquired similar levels of education. ______________________ a For example, Autor and colleagues (2006) sorted (three-digit) occupations into percentiles by mean years of schooling in 1980 using data on incumbent workers in those jobs. Alternatively, Autor (2010) used the average wage of workers in 1980 as a proxy for skill to classify occupations at the three-digit level and subsequently examine employment and wage trends. b For example, Holzer and Lerman (2009, p. 1) argue: âClassifying occupations into a few skill categories is awkward, given the many elements of skill required for most jobs. Under an approach that classifies jobs based on education and training levels, âmiddle-skillâ jobs are those that generally require some education and training beyond high school but less than a bachelorâs degree. These postsecondary education or training requirements can include associateâs degrees, vocational certificates, significant on-the-job training, previous work experience, or some college, but less than a bachelorâs degree.â
16 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE FIGURE 1-2 Skilled technical workers by major occupational group. SOURCE: Committeeâs compilation based on Rothwell (2015, Table 3). 1.5 STRUCTURE OF THE SYSTEM FOR U.S. SKILLED TECHNICAL WORKFORCE DEVELOPMENT The committeeâs investigation of the distributed structure and wide- ranging scale of the system for skilled technical workforce developmentâ presented in Chapter 4âchallenged assumptions that a single set of policy recommendations or reforms can address workforce development issues in the United States. As Figure 1-3 shows, the American system for skilled technical workforce development encompasses two broad components. The first is public and private academic and career and technical education and training in grades K-12, which are governed by more than 98,000 public schools in more than 18,000 public school districts, as well as more than 30,000 private schools. The second component is postsecondary skilled technical workforce development, which is equally complex. Its primary elements are degree-granting programs governed by 4,207 public and private institutions scattered across 50 states, an unknown number of certificate programs, an unknown number of certification
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 17 FIGURE 1-3 Overview of the components of U.S. system for skilled technical workforce development. SOURCE: Committeeâs compilation. programs governed by an estimated 4,000 certification entities, registered civilian apprenticeship programs for more than 1,000 occupations, and many overlapping government-funded training programs. As Figure 1-3 shows, work/career options are similarly varied and include regular full-time employment, alternative and contingency work arrangements, self-employment, and entrepreneurship. In addition, as the reverse arrow in Figure 1-3 indicates, American workers can and do continue their education and training throughout their work lives, cycling back through postsecondary education and training to pursue alternative occupations, expand their knowledge and skills, maintain and expand their credentials, and retrain as advances in science and technology are disseminated into the workplace. 1.6 A NETWORK-CENTERED APPROACH Understanding and making recommendations for improving the nationâs skilled technical workforce amid a complex and rapidly changing market is a considerable challenge. In addressing this challenge, the committee sought to take advantage of the diversity of experience across the nation and the efforts of many business leaders, educators, labor organizations, and policy makers to integrate academic education, technical training, and hands-on work experience to produce better outcomes for students, workers, businesses, and states and regions (see Box 1-5 for an example). In this regard, Chapter 6 presents
18 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE BOX 1-5 Building a Network of SolutionsâAn Example In his September 2015 presentation to the committee, Dale Allen of Quinsigamond Community College (QCC) in Worcester, Massachusetts, described how his institution is building robust relationships with K-16 partners, industry, universities, regional government, and other community organizations to build a robust workforce development system in his region. Key features of the strategy he described include the following: â¢ Collaborating with industry. In addition to seeking industry input to meet industry demand, QCC partners with the regional offices of the federal Manufacturing Extension Partnership (MEP) program, the stateâs Workforce Investment Boards (WIBs), local cluster associations, business incubators, and the National Science Foundationâs (NSFâs) Advanced Technical Education (ATE) programs, among others, to identify workforce development needs. â¢ Redesigning education and training delivery. This includes developing an industry-aligned curriculum and bridging courses with internships, apprenticeships, and job training to meet regional labor market demands. â¢ Leveraging technology. This includes making available customized software applications or âappsâ that combine real-time data on the labor market drawn from federal, state, and local sources. Students, local firms, and educational institutions can use this information directly to weigh alternatives and guide career and investment decisions. evidence that schools that combine high-quality career and technical education programs with a college preparatory curriculum are more effective in preparing students for both employment and postsecondary education (see, for example, Clark et al., 2007). A growing body of research on a variety of promising experiments under way across the United Statesâalso described in Chapter 6â is instructive for designing and implementing supportive policies and for allocating resources across organizations and programs. Accordingly, the committee has sought to draw attention to the importance of growing the rich set of networks among the various actors, as well as the significant challenges they face in making decisions and working cooperatively in the absence of sufficient information and trust. These challenges are cataloged in Chapter 5. For example, a lack of information on job opportunities available in their region may lead community college students to select courses that do not adequately equip them with the skills demanded by local firms. In turn, firms in a regional industry may need to determine how to share investments in worker training in ways that can also produce sufficient private returns. In other cases, prevailing rules and norms may lead to incentives that foster suboptimal outcomes. For example, some community colleges operate within state funding
SKILLED TECHNICAL WORKFORCE DEVELOPMENT CHALLENGE 19 formulas that support enrollment rather than course completion (Altstadt, 2012). In another example, transition assistance provided by the military to its retiring service members to help them adjust to the civilian workforce may be misapplied as a form of unemployment benefit (Payne Carter and Miller, 2015). In addressing its task to review the âeffectiveness, flexibility, and coordination among the nationâs programs,â the committee has highlighted the diversity of approaches available to students, guidance counselors, workers, business owners, manufacturers, labor leaders, school administrators, and community college teachers and others for working together to create local solutions that address their workforce challenges. To support and complement these activities, the committee calls for specific actions by Congress, federal agencies, state governments, employers, and civic organizations to improve the nationâs polycentric system of workforce development. 1.7 ORGANIZATION OF THIS REPORT The committee began its work by reviewing existing efforts to standardize education and training in the United States, hearing from experts who recommended further standardization. Chapter 2 takes a closer look at the patterns and trends emerging from the current structure of the labor markets for skilled technical occupations. A wide range of structural factors affect these trends and patterns in workforce development. They begin with child care, nutrition, and the quality of primary education, and extend to working opportunities and living conditions and the quality and quantity of postsecondary education and training. Workforce policies at the federal and state levels, which are described in Chapter 3, and the components of the workforce development system, which are described in Chapter 4, further influence the character and performance of the skilled technical workforce in significant ways. These policies and components, which are controlled and funded primarily at the local level, are in turn shaped by local social and economic structures and conditions. A diversity of actors also is involved, including local educators, students, workers, employers, industries, associations, labor organizations, agencies of the federal government, state and local governments, and civic associations, all of which play a role in developing the nationâs skilled technical workforce. These actors operate in complex environments, and they often have slightly different and sometimes competing priorities and incentives. Many of the workforce development challenges, discussed in Chapter 5, reflect significant coordination problems within and across these diverse groups of actors. In contrast, Chapter 6 provides examples of notable local strategies and initiatives aimed at
20 BUILDING AMERICAâS SKILLED TECHNICAL WORKFORCE overcoming these challenges to training skilled technical workers. Chapter 7 concludes with a summary of the committeeâs findings and recommendations for policy and program design to enhance the nationâs skilled technical workforce.