Reduced labor force participation and obsolescence of workers’ skills weigh down GDP growth, with predictable negative repercussions for living standards and federal revenue. These trends suggest a need for a major revamping of policies and programs that prepare people for careers and retrain people who must change careers.
The authors focus on three major policy initiatives to maximize worker training to bolster productivity and wages:
- Improve access to in-demand training;
- strengthen connections between career and technical education and training and employer needs; and
- build a robust apprenticeship system that emphasizes learning by doing in a context that involves apprentice contributions to production, and culminates in a respected occupational credential.
This new system goes beyond the “academic-only” approach commonly pursued in the US and should match individual interests, aptitudes, and skills to in-demand jobs and make new training investments that are cost effective and valued by employers.