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Leaders’ Roundtable:
Workforce Development

Introduction

Today, most states are facing labor shortages across many industries.

During this virtual Forum, participants examined the causes and impacts

of the labor shortage and described programs being implemented to build

and stabilize the workforce.

BAs Rachel Lipson, Director of the Project on Workforce at the Harvard Kennedy School of Government, reported at the Senate Presidents’ Forum in Boston earlier this fall, successful labor market development policies include active interventions such as matching training with open opportunities; linking trained candidates with employers who need them; and providing wrap-around services that allow workers to succeed. Many of the programs described by the state leaders in our meeting met these criteria.

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Discussion

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Moderated by

Tom Finneran

Sen. Robert Stivers
President of the Senate, Kentucky

We had some labor shortages even before the pandemic, and we are not yet back to pre-COVID employment levels. Thousands of jobs are open in the state. The Boston Senate Presidents’ Forum stimulated ideas about how we can enhance workforce development. In Kentucky, we applied for and received a $1.5 million labor grant, which will fund “Second Chance” training programs for “hidden workers.” Additionally, we are considering a tax credit for employers who offer day care for their employees’ children.

​Hidden WorkersThe term hidden workers, coined by researchers at Harvard Business School, relates to untapped pools of potential workforce talent, such as people getting out of jail or completing substance use disorder programs. These workers can be highly motivated to succeed when given a second chance.Hidden Workers: Untapped Talent​Downloadable Report published by Harvard Business School

Sen. Martin Looney
Senate President Pro Tempore, Connecticut

Connecticut has embraced a model created by WorkPlace, which, since 1983, has delivered programs to develop a well-educated, well-trained, and self-sufficient workforce that can confidently compete in today’s changing global marketplace. The program works with a wide scope of business leaders, local officials and other stakeholders to develop innovative workforce plans that identify and address the area’s employment needs and interests.

AIn the state program, workers are matched with open jobs. Recognizing that many people are highly motivated to have a job after long periods without working, one state program is focused on training people after prison or substance abuse treatment. They receive wrap-around services such as housing and ongoing contact with parole officers to help sustain them in employment.

Additionally, current strong state revenues and federal COVID funds have been allocated by the Legislature for daycare support programs to help people keep their jobs. And funds have been allocated to close the gap between what students can afford and the costs of attending college or certification and licensing programs.

Tom Finneran (Moderator): Are employers resistant to hiring formerly incarcerated people?

Sen. Looney: One positive effect of the COVID pandemic is that employers are more willing to give formerly incarcerated people a second chance, especially if they come from programs that provide oversight. The training and mentorship they receive helps make them better employees.

​Employers are more willing to give formerly incarcerated people a second chance, especially if they come from programs that provide oversight.

Sen. Bill Ferguson
President of the Senate, Maryland

Maryland’s labor crisis is acute because we have a healthcare-focused labor market, and healthcare professionals are leaving the field due to COVID burn-out or taking traveling jobs that offer up to $210 per hour. The Johns Hopkins system, for example, has 4,000 vacancies and the University of Maryland Healthcare has 3,300 vacancies. Many hospitals have shut down wings because they lack the personnel to staff them.

One proposed response has been to speed up nursing training. An executive order issued during COVID permitted registered nurses to do their final year of training on the job. However, this has met with resistance from nursing boards.

Another approach is the state’s Career Pathways Program. This program allocates $15,000 per person, which can be used for program tuition, wrap-around services, and required training. Participants are paired with an industry partner that can provide a career opening. To qualify for partnership, the training programs must provide evidence that they are effective in leading to careers that earn family-sustaining income.

​Sen. Bill Ferguson (MD) kindly shared the following resources:Diagnosing skill gap issues and interventionsARPA policy intervention resources
(per State Recovery Now)

Sen. Karen Fann
President of the Senate, Arizona

The state stopped taking Federal Supplemental Unemployment Insurance benefits because it seemed to be a disincentive for people to enter the workforce. During the pandemic, people realized that they could live with less and perhaps stay home with their children. Now people are more selective; they do not want to do physical labor or they want remote work. Younger people don’t want to punch the clock five days per week.

Sen. Peter Micciche
President of the Senate, Alaska

COVID numbers in the state are still higher than most states, and people are still hesitant to return to work. The state has stopped taking Federal Supplemental Unemployment Insurance benefits, and while the labor landscape has improved a little in the state, many industries are still struggling. The cruise industry is particularly important for Alaska, and the state saw only 350,000 cruise ship visitors this year instead of the 1.5-2 million visitors normally arriving annually. The hospitality industry has been hit hard with labor shortages; however, some restaurants have found that hiring people coming out of recovery programs or jail has been a solution. The Department of Corrections and a variety of organizations are providing support to help these workers succeed. Overall, net migration out of the state was exacerbated by COVID, despite that fact that construction jobs offering salaries as much as $80,000 per year cannot be filled.

Sen. Larry Taylor
Chair, Senate Education Committee, Texas

Texas started a program to address skill gaps in 2017. The Pathways in Technology Early College High Schools (P-TECH) are innovative, open-enrollment high schools that allow the students least likely to attend college an opportunity to receive both a high school diploma and a credential and/or an associate degree. P-TECH schools offer age-appropriate work-based learning opportunities in every grade level; allow students to gain work experience through an internship, apprenticeship, or other job training program; and align to regional workforce needs, guiding students into high-demand, high-wage careers.

​Pathways in Technology Early College High Schools (P-TECH) are innovative,  open-enrollment high schools that allow students an opportunity to receive a high school diploma, a credential, and/or an associate degree.

P-TECH schools are reimbursed for the number of students who attend, with a higher benefit for low-income students. The schools are awarded a bonus based on student outcomes, with a $5,000 bonus for each student who graduates from the program and is career, college or military ready.

Like other states, Texas struggles with healthcare labor shortages as people leave for higher-paying, traveling jobs. But the state also benefits from in-migration, where incomers bring good skill sets to the labor market. But we need to ensure that native Texans get prepared for good jobs as well. About 60% of the state’s student population is low-income, eligible for free lunch programs, and this is the fastest growing segment. They, too, need the skills to succeed in the future.

The pandemic broke the habit of going to work. It’s hard to get motivated. People need to feel the need to work.

Sen. Thomas Alexander
Chair, Senate Labor Commerce and Industry Committee,
South Carolinas

South Carolina has 4.1% unemployment today and 5,000 more people working than pre-COVID; however, there are still 100,000 jobs open. Furthermore, over 24% of the current skilled professionals are at or near retirement age. To close this gap, the state created a “direct connect” program that aligns training programs with skill sets needed for open jobs. The state also allocated $17 million in federal funds for technical schools to teach needed skills, and, based on the outcomes, this may become a regular appropriation. The state also is innovating virtual career fairs for prisons that will encourage people to prepare for job openings when they are released.

South Carolina’s Be Pro, Be Proud program engages industry partners and workers to attract potential employees to the state’s innovative, in-demand skilled professions. Providing access to training and connections to employers, the program develops candidates for jobs that are in demand and that earn more than $60,000 per year, such as automation and robotics technicians, CAD and CAM design rafters, and commercial truck drivers.

Sen. Lee Schoenbeck
President of the Senate, South Dakota

The state has fewer than 1,000 people drawing unemployment benefits, but still has 25,000 job openings. Businesses come to South Dakota but we don’t have enough workers. To address this, the state has invested significantly in technical schools, in cyber-security training programs, and in funding needs-based scholarships.

​“The pandemic broke the habit of going to work. It’s hard to get motivated. People need to feel the need to work.”—Sen. Larry Taylor (TX)

Sen. Jeremy Miller
Senate Majority Leader, Minnesota

Minnesota saw a record number of job vacancies in the second quarter of 2021, topping 205,000, up 84% from same quarter in 2020 and up 40% from the previous record in 2019. Similar to other states, our Department of Employment and Economic Development provides a website — MinnesotaWorks.net — that links workers with open jobs. The site has over 121,000 jobs posted from employers while only about 16,500 resumes have been submitted by job seekers [as of this writing], reflecting the state’s labor shortage. The state used some federal COVID relief money for small business assistance.

Summary

The discussion of workforce development highlighted the continuing labor shortages in most states; however, innovative and successful programs have been developed to address this need. Several states have piloted programs targeted at hidden workers, such as formerly incarcerated individuals and those coming from substance abuse recovery programs. Providing wrap-around services such as day care, housing assistance, transportation, or mentoring programs were identified as effective strategies to help these workers succeed. Matching skills training to specific open jobs is an essential element. A variety of partnerships between states and their community colleges and industry leaders were shown to be effective. A key element of all successful programs is to focus on positions that earn a “family-sustaining or livable wage.”