New Report Details Federal Funding Gap For Workforce Prep Despite Persistent Labor Needs

Only one-fifth of federal investments in postsecondary education support workforce development for fields like construction and manufacturing, while the rest of the money goes to “traditional” degree programs according to a new report on federal workforce funding levels. The report, produced by the Progressive Policy Institute, the Associated General Contractors of America and Procore, notes this funding gap is making it hard for many employers to find qualified workers to hire.

The report, titled Building a Stronger Workforce: Federal Spending on Postsecondary Education and Training, notes that of the $139.5 billion the federal government spends annually on postsecondary education, only $28.2 billion goes to workforce education and training programs. The other $111.3 billion supports “traditional” degree programs that only 38% of Americans complete.

The funding gap is making it hard for employers in fields like construction and manufacturing, which typically require specific training not offered by traditional degree programs, to find enough qualified workers to keep pace with demand. The report notes that the Bureau of Labor Statistics shows the construction industry alone has over 407,000 unfilled position and that figure is expected to continue growing. Meanwhile, 88% of construction firms report having a hard time finding workers to hire.

Included in the new report are recommendations on how federal policy makers can help address workforce shortages for in-demand industries. Those recommendations include increasing federal investments in workforce development, including doubling the amount of money for Perkins and other career and technical programs.

The report also recommends new investments in faster and more flexible training programs like Virginia’s FastForward program. The report urges new incentives to encourage employer-centered workforce education and training partnerships. And it cites several promising state-based workforce development programs, including the Virginia one, as well as programs in Indiana, Pennsylvania and Colorado.

The report is available here. New Report Details Federal Funding Gap For Workforce Prep Despite Persistent Labor Needs

Only one-fifth of federal investments in postsecondary education support workforce development for fields like construction and manufacturing, while the rest of the money goes to “traditional” degree programs according to a new report on federal workforce funding levels. The report, produced by the Progressive Policy Institute, the Associated General Contractors of America and Procore, notes this funding gap is making it hard for many employers to find qualified workers to hire.

The report, titled Building a Stronger Workforce: Federal Spending on Postsecondary Education and Training, notes that of the $139.5 billion the federal government spends annually on postsecondary education, only $28.2 billion goes to workforce education and training programs. The other $111.3 billion supports “traditional” degree programs that only 38% of Americans complete.

The funding gap is making it hard for employers in fields like construction and manufacturing, which typically require specific training not offered by traditional degree programs, to find enough qualified workers to keep pace with demand. The report notes that the Bureau of Labor Statistics shows the construction industry alone has over 407,000 unfilled position and that figure is expected to continue growing. Meanwhile, 88% of construction firms report having a hard time finding workers to hire.

Included in the new report are recommendations on how federal policy makers can help address workforce shortages for in-demand industries. Those recommendations include increasing federal investments in workforce development, including doubling the amount of money for Perkins and other career and technical programs.

The report also recommends new investments in faster and more flexible training programs like Virginia’s FastForward program. The report urges new incentives to encourage employer-centered workforce education and training partnerships. And it cites several promising state-based workforce development programs, including the Virginia one, as well as programs in Indiana, Pennsylvania and Colorado.

The report is available here.