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How the Good Jobs Challenge provides opportunities and invests in workforce development

By: Taylor Maag / 08.09.2022

The past two years have caused unprecedented economic disruption. The pandemic resulted in the displacement of workers and changed the way we work forever, in addition to creating new jobs through technological advancement.

These transformations have had serious workforce implications — changing the skills workers need to be relevant, leaving employers with unfilled positions, and altering the makeup of regional economies. Yet for some time, there was little action from federal policymakers to address these challenges. While many states, local governments, community colleges, workforce boards, and other eligible entities used their flexible stimulus funding to prioritize workforce-related efforts, federal policymakers continued to ignore the importance of investment in workforce development to help displaced workers pursue in-demand employment and help current workers navigate the new world of work.

Finally, the focus shifted with the passing of the American Rescue Plan Act (ARPA). As part of the bill, $3 billion was allocated to the Department of Commerce’s Economic Development Administration (EDA), providing funding to support community-led economic development efforts. EDA funding included the Good Jobs Challenge, a $500 million grant program to support workforce partnerships that provide education and training opportunities and comprehensive supports to jobseekers and workers while connecting employers with the talent they need to remain competitive.

Last week, the EDA announced the 32 awardees of the Good Jobs Challenge, representing diverse geographical regions across the country. The projects focus on 15 industries that grantees want to grow and support, including agriculture and food production, energy and resilience, health care, manufacturing, and information technology.

While this is an exciting investment, the money designated to this program pales in comparison to other COVID recovery efforts focused on colleges and college-bound students. Through higher education emergency relief efforts across two administrations and two sessions of Congress, about $77 billion was distributed to aid the nation’s higher education institutions. While this money was critical to support the basic needs of students, it also demonstrates the disparity between college and non-college opportunity in this nation.

The Good Jobs Challenge is a much-needed investment that finally gets money out the door to support the unique workforce needs of communities and options outside of traditional college. It also offers a new model of public investment that is flexible, encourages a comprehensive approach to skill development, and puts employers at the center of the equation.

None of this work can be done effectively without employers. The Good Jobs Challenge aims to bring industry together with training providers, community-based organizations, and other key stakeholders to build demand-driven pathways to good jobs. The project plans to do this through public-private partnerships, leveraging public investment to incentivize employers to participate in regional workforce efforts in a robust way. Awarded projects already have employer commitment to support curriculum development, co-delivery of training, mentorship, match investments, earn and learn opportunities, and hiring commitments. Projects also prioritize sector strategies, ensuring there is a collective approach to these workforce efforts within each industry. This helps small and midsize employers participate who often don’t have the resources or capacity to offer these opportunities on their own, but are vital to regional economies, especially in small towns and rural areas.

This grant program not only better supports employers, but also looks out for working Americans. For years, working Americans — specifically those without a college degree — have faced downward mobility. This trend has only worsened, requiring increased attention from federal policymakers. The Good Jobs Challenge is a step in the right direction. Awardees are not only developing critical talent development and career support strategies for these individuals, but they are also offering comprehensive wraparound services, prioritizing services like child care, transportation, language support, mentoring and career counseling. These are critical policies to ensure working Americans get the skills and support needed for economic advancement.

The Good Jobs announcement comes at a good time. With states and communities implementing the Investing in Infrastructure and Jobs Act (IIJA) and our nation still dealing with severe labor shortages across critical industries, communities need a plan to help Americans re-enter the workforce and advance in their careers. PPI is pleased to see a federal grant program that integrates industry throughout every step of the process while also supporting the holistic needs of jobseekers and workers. We are also happy to see a more flexible and modern approach to financing workforce development efforts, prioritizing public-private partnerships and innovative strategies that serve the unique economic needs of American communities

PPI looks forward to seeing what the Good Jobs grantees accomplish. We hope to see more equitable funding for workforce-related pathways in the future and to see federal policy replicate this pragmatic approach to public investment.