Only one-fifth of federal investments in postsecondary education support workforce development for fields like construction and manufacturing. At the same time, the rest of the money goes to “traditional” degree programs according to a new report on federal workforce funding levels released today. The report, produced by the Progressive Policy Institute, the Associated General Contractors of America, and Procore, notes that this funding gap is making it hard for many employers to find qualified workers to hire.
“If the U.S. does not act now to ensure the nation’s workforce is prepared for open job opportunities, more Americans will be unqualified for work and employers will continue to struggle to find talent and remain competitive,” the report notes. “Yet policymakers continue to undervalue the importance of workforce development and instead prioritize investments in degree programs that often aren’t needed to get a good job.”
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 percent of Americans complete.
The funding gap makes 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 positions, which is expected to continue growing. Meanwhile, 88 percent of construction firms report having difficulty finding workers to hire.
The new report includes recommendations on how federal policymakers 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, and programs in Indiana, Pennsylvania, and Colorado.
The groups released the report during an event this morning at the U.S. Capitol complex that featured comments from congressional officials, the report’s authors, a construction general contractor and a community college administrator. The panelists discussed the challenges the current federal funding levels posed and urged policymakers to help. The report is available here.
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