Align Training With Key Industries

Even before the economic downturn of 2008, a number of states began recognizing the importance of aligning workforce development with the needs of key industry sectors to better ensure that workers were developing skills that were in demand by employers. [i] Since 2008, sector-based alignment has become even more important, as states seek to promote business growth while preparing their workforce, all with diminished funding.

What Can Policymakers Do?

Policymakers play a key role in assembling public and private stakeholders to identify key needs, align their efforts, assemble funding, and ensure accountability. [ii]

· Identify industry needs and skill gaps. Policymakers can convene leaders in adult education, economic development to identify which regions and industry sectors offer the greatest potential for profititability and employment growth. Based on this analysis, critical skills needed for these industries can become the main focus of workforce develoment programs.

· Direct public education and training agencies to align their programs. A number of state agencies play a role in workforce development, and too often they fail to coordinate efforts with each other, or with prospective employers, in developing and delivering training. These agencies include departments of labor, workforce boards, community colleges, and K-12 education systems. After identifying key industry needs and skills gaps, state policymakers can convene and direct these agencies to focus workforce development programs on filling these gaps.

· Leverage federal and private funds. To finance sector-focused training, existing state workforce development funds can be reallocated, federal funds can be leveraged, and partnerships with employers can be established. See Financing for more information.

Several states have taken the lead in developing sector-focused strategies, including Washington, Pennsylvania, [iii] and Kentucky. See Success Stories for more information.

Lessons from Research

Research on a selected group of sector-based training programs across the country yielded several findings. Participants significantly increased their employment levels, and earnings, [iv] and evidence also suggests that participants are more likely to complete training and seek more advanced education. [v] In addition, employers of training participants also have reported a reduction in turnover, rework and customer complaints. [vi]


[i] Amy Ellen Duke and Julie Strawn, 2008. "Overcoming Obstacles, Optimizing Opportunities: State Policies to Increase Postsecondary Attainment for Low-Skilled Adults," Breaking Through: Helping Low-Skilled Adults Enter and Succeed in College and Careers. Boston, MA : Jobs for the Future

[ii] Recommendations are derived from Amy Ellen Duke and Julie Strawn, 2008. "Overcoming Obstacles, Optimizing Opportunities: State Policies to Increase Postsecondary Attainment for Low-Skilled Adults," Breaking Through: Helping Low-Skilled Adults Enter and Succeed in College and Careers. Boston, MA : Jobs for the Future; and from Sarah Holdmixon, 2006. "State Sector Strategies: Regional Solutions to Worker and Employer Needs," Washington DC: National Governors Association.

[iii] http://www.paworkforce.state.pa.us/about/cwp/view.asp?a=471&q=155669

[iv] Ida Rademacher (ed.), 2002. "Working With Value: Industry-specific Approaches to Workforce Development: A Synthesis of Findings," Washington, DC: The Aspen Institute. This study tracked longitudinal data for participants in six training programs, and did not include a control group or tests of statistical significance.

[v] Duke and Strawn, 2008.

[vi] Cathryn Lea, 2004. "BEST Benefits: Employer Perspectives Research and Evaluation Brief" (Volume 2, Issue 4), Boston, MA: Commonwealth Corporation. This study surveyed employers of participants in six regional training programs in Massachussets, and did not include a control group or tests of statistical significance.