Building a Workforce Development Ecosystem for the 21st Century Workforce ( CareerEquity White Paper)

Reducing Inefficiencies, Improving Partner Collaboration, and Tracking Candidate Success 

 

Executive Summary

Workforce Development (WFD) is more than a buzzword—it’s the foundation needed to build a future-ready workforce, connect skilled workers to on-demand career fields, and foster their career success along the way. Building resilient communities, growing our national economy, and sparking the innovation industry needs to solve big challenges – all require a strong WFD infrastructure. 

One thing that makes America’s WFD structure unique is its ability to serve the needs of diverse communities, employers, and job seekers. An initiative designed to upskill and place job seekers in solar installation jobs in Nevada may not fit the needs of a community in Western Pennsylvania. To build the workforce of the future – we must improve how we track and understand WFD trends and industry requirements. To reduce inefficiencies in how we spend billions of dollars in federal and state funding each year and improve outcomes for job seekers, employers, and communities – we must enhance how we track and measure program outcomes.

 

From Then to Now: Tracing the History of Workforce Development in the U.S.

WFD programs around the world help countries respond to evolving labor market demands, changing demographics, and technology shifts. It’s no surprise then that the origins of modern WFD programs in the U.S. can be traced to WWII-era initiatives that connected returning service members to the civilian workforce – putting their skills and experience to work to re-invigorate the U.S. economy and meet the needs of a growing population. Since then, WFD programs have continued to play a pivotal role in the country’s economic growth. 

With each new wave of technology comes new requirements for skilled workers to manufacture and maintain it. In the 1980s and 1990s, the U.S. saw a massive push for computer-related training programs.  A rise in globalization in the 1990s and 2000s required a new focus on management and technical skills to support international commerce. During the recession from 2007-2009, the need for WFD programs that are agile and responsive to the changing job market was highlighted – in this instance to retrain displaced workers in emerging sectors like renewable energy. Most recently, the pandemic highlighted the growing importance of digital skills across all job sectors. This led to a renewed focus on digital literacy and remote working capabilities within WFD programs.  

 

Respond to Changing Demographics in the U.S. and Building Resilient Communities 

A large portion of WFD programs are designed to serve a broad audience, while addressing demands in the labor market. By offering targeted job training and career development opportunities, initiatives like these are designed to help close skills gaps in the workforce and support on-demand industries – like clean energy, technology, and healthcare. 

Diverse populations in the U.S. served by WFD programs include: 

• Unemployed and Underemployed: Skills training to reduce unemployment and boost the economy.
• Youth (At-Risk Youth): Early skills acquisition to improve career introduction, reduce unemployment, and build a skilled workforce. 
• Veterans: Supporting outgoing military personnel as they transition to civilian jobs by matching their military skills to civilian careers and providing training opportunities.
• Displaced Workers: Retraining for workers displaced by economic shifts or technology changes, designed to prevent long-term unemployment and support impacted communities. 
• Individuals with Disabilities: Fostering a diverse workplace and ensuring inclusivity and equal opportunities for all job seekers.  
• Underrepresented Groups: Skill building opportunities to build a diverse and innovative workforce.

 

Different types of WFD programs help address the diverse needs and challenges of employers and industries, job seekers, and communities across the country. Some of these training programs are designed to target specific skills, career stages, and backgrounds, providing a comprehensive approach to workforce training and development that is agile enough to respond to changing needs and requirements. 

 

The different types of WFD programs available in the U.S. include: 

• Apprenticeship and pre-apprenticeship programs
• Certificate programs 
• Associate and bachelor’s degrees   
• Community college and technical schools 
• Continuing education and professional development 
• Community-based training programs 
• Internship programs 
• Bootcamps 
• Co-Op programs 
• Sector partnership programs 
• Workforce investment programs 
• Online training and e-learning  

 

Building the Clean Energy Workforce of the Future 

WFD remains a cornerstone of achieving U.S. competitiveness in a global marketplace while ensuring a steady pipeline of skilled workers to support on-demand industries like technology, clean energy, and advanced manufacturing. Today, WFD programs are working quickly to respond to the evolving needs of the fast-growing Clean Energy industry. The complexity and rapid evolution of the energy sector demands a flexible and multifaceted workforce capable of adapting to new technologies and market needs. 

 

In response, WFD partners across the country are providing the upskilling opportunities communities need to meet the workforce requirements of the Clean Energy Sector – with WFD programs that are as unique as the people they serve. These initiatives address specific skills gaps critical to the energy efficiency industry, providing participants with the specialized knowledge and skills required to join it. A key pillar of WFD is supporting career transitions, and WFD programs are helping individuals move into energy and utility roles. This benefits employers, job seekers, and communities looking to persuade industry partners to add job opportunities to their area. 

 

WFD programs also support ongoing professional development by helping workers stay current with industry changes. Programs designed to train workers from underrepresented groups in key industries are helping diversify the workforce and improve inclusion. Regional partnerships across the country are helping increase WFD partner collaboration, while developing the local talent to meet the needs of regional industries. 

 

Figure 1: Workforce Development Funding in the U.S. by Category  

 

Building the Workforce Development Ecosystem of the Future

As the U.S. economy and the needs of industry continue to evolve, what we ask of our WFD ecosystem changes alongside it. To ensure America’s WFD programs continue to deliver the best outcomes for a diverse population, we must continue to strengthen how we track and measure program effectiveness. The complexity of our nation’s patchwork quilt of WFD programming presents a challenge to doing so. Measuring the success of different programs designed to deliver diverse powerful outcomes is impossible without data sharing and collaboration across WFD development partners – including employers, training providers, nonprofits, and funders. 

 

The program rollout as part of the American Recovery and Reinvestment Act (ARRA) of 2009 provides insights into the types of inefficiencies our current system faces. ARRA allocated approximately $27.2 billion for energy efficiency and renewable energy projects, aiming to develop advanced energy technologies and improve workforce readiness in the clean energy sector. 

 

Challenges were found in how to allocate and use this funding effectively, including: 

• Inadequate Oversight and Accountability: This led to difficulty in ensuring funding was spent as intended and reached the programs and populations most in need. 
• Misallocation of Resources: Funds were not always allocated to the sectors or regions where they were most needed, in part because of the urgency to spend funding as quickly as possible, fostering a continuation of unmet workforce development needs. 
• Poor Impact Measurement: Without rigorous methods to measure the impact of funded programs, it proved to be difficult to determine effectiveness in improving employment outcomes or enhancing job skills. 

 

According to the U.S. Government Accountability Office (GAO), the challenges found here are not unique to federal initiatives, in fact they represent longstanding inefficiencies in measuring the impact of WFD programs. Despite recommendations from the GAO, many of the improvements needed to enhance efficiencies and reduce waste remain unimplemented, limiting the potential impact of WFD initiatives. The GAO’s findings point to persistent problems, such as fragmented program oversight, inadequate performance tracking, and insufficient collaboration across federal and state agencies.

 

To build the WDF ecosystem of the future, we must work together to: 

• Improve Data Collection and Sharing: Enhance partner ability to collect and share accurate data for effective monitoring and management. 
• Strengthen Performance Accountability: Implement rigorous performance measures to ensure workforce programs meet their objectives efficiently. 
• Enhance Interagency Collaboration: Foster greater collaboration among federal agencies to minimize duplication and streamline services. 
• Regular Program Evaluations: Conduct thorough program evaluations to identify inefficiencies and reallocate resources to more effective initiatives. 
• Co-Enrollment Strategies: Develop strategies to improve co-enrollment in multiple WFD programs, maximizing resource utilization and participant benefits. 
• Audit and Oversight Enhancements: Increase the frequency and depth of audits to detect and prevent fraud and mismanagement. 
• Technical Assistance for Local Agencies: Provide comprehensive technical assistance to state and local workforce agencies to better manage programs and reduce administrative costs. 
• Legislative Reforms: Enact legislative changes that improve the effectiveness and efficiency of workforce programs, such as restructuring funding mechanisms and modifying program objectives. 

 

To improve collaboration and data sharing across partners, and increase program access to all job seekers, we must also work to address these challenges: 

• Lack of Awareness: Job seekers and employers are largely unaware of the programs that are currently available or find the processes to engage with them too complicated or time consuming. 
• Alignment with Small, Veteran, Minority, and Women-Owned Businesses: These businesses help support the economy in numerous ways and yet, oftentimes they are not connected to WFD programs and/or lack the resources to leverage them effectively. 
• Funding to Reduce Barriers to Employment: Insufficient funding is a challenge in many communities to address major barriers to employment, including childcare, transportation, and mental health support. 
• High Training and Administrative Cost: Inefficient funding tracking makes it difficult to understand the training cost-per-hire and job success rate, with significant program administrative costs reducing overall efficacy. 

 

At CareerEquity, we’ve built a cutting-edge platform with one goal: to eliminate the inefficiencies that impact the success of traditional WFD programs. With integrated tools to connect employers with pre-vetted talent, along with local programs and services supporting workforce development goals, the CareerEquity platform empowers organizations to maximize the impact of every WFD dollar. 

 

By addressing key issues such as fragmented oversight, lack of performance tracking, and limited program awareness, we help utilities and employers tap into the full potential of WFD initiatives. Government agencies and the private sector recognize the power behind this platform, which offers a holistic workforce development solution for under-resourced communities who want to help their talent become job-ready faster – with the right support systems in place and the data analytics to track their success.