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Learning From the National Fund for Workforce Solutions Model

John Padilla

It’s safe to say the time for rethinking the national workforce development system is way overdue: The reauthorization of the Workforce Investment Act (WIA) is now 12 years overdue and counting—with no one expecting it anytime soon. Not that a new and improved WIA will solve the myriad problems in our workforce systems. The need for a national workforce strategy, supported by an effective, efficient system to train workers for in-demand jobs, is as great as it has been in generations. With technology and globalization driving such a rapid pace of change, few could have imagined 15 years ago what the world of work would look like in 2012.

The sobering reality is that our nation must make substantial investments in basic and continuing education if we are to build a solid foundation for our current and future workforce. Yet little has been done to address the need for skilled workers. Instead, there are calls to eliminate all WIA funding; to slash funding for scholarships such as Pell Grants, and for work supports and services; and to demolish what remains of the social safety net. All are driven by a myopic focus on cutting domestic spending, without considering the strategies necessary to meet the needs of the U.S. economy and make it more competitive.

With millions of Americans still feeling the devastating impact of long-term unemployment, The Annie E. Casey Foundation believes everyone should have an opportunity to participate in economic recovery—especially lower-income Americans. Efforts to redesign the publicly funded workforce system should look at the National Fund for Workforce Solutions (NFWS) and other models and adopt their best features.

The NFWS promotes innovative workforce development approaches and focuses on investments in education and training by building strong connections between employers, training, and the industries expected to drive economic growth. A new workforce system could learn from how the NFWS model brings together groups that typically work independent of one another: employers, business associations, the one-stop system, community colleges—even philanthropy. By engaging these different players in 32 sites across the country, the NFWS has spurred innovation in flexible training design and helped align workforce, education, and other programs to build career pathways that help employers get the right employees to grow and compete, and help employees gain skills for family-sustaining employment.

Rethinking a national workforce strategy should start with acknowledging that the patchwork of competing workforce systems—one-stops, community colleges, adult education, proprietary schools, the Temporary Assistance for Needy Families program, and others—simply does not work for employers or for those most in need of skill training. The NFWS shows that engaging multiple employers with key partners can help meet everyone’s needs in ways that make a difference.

John Padilla is associate director, workforce development at The Annie E. Casey Foundation.

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