PPI - Radically Pragmatic
  • Donate
Skip to content
  • Home
  • About
    • About Us
    • Locations
    • Careers
  • People
  • Projects
  • Our Work
  • Events
  • Donate

Our Work

Building a Stronger Workforce: Federal Spending on Postsecondary Education and Training

  • June 13, 2024
  • Taylor Maag
  • Tamar Jacoby
Download PDF

Executive Summary

America’s labor market presents a paradox. Although the unemployment rate is just 3.9%, there are more jobs open than people who can fill them. Nationwide, there are roughly 68 workers for every 100 open jobs. Many factors contribute to this workforce shortage, but one of the most significant is a growing skills gap — millions of workers across the economy are unprepared for in-demand employment opportunities.

In construction and other industries, employers are hurting, desperate for talent, and looking for innovative ways to attract people to open positions. Recent data from the Bureau of Labor Statistics (BLS) show that the construction industry currently has 407,000 job openings. This shortage is expected to grow, with a projected need for 723,000 workers annually due to economic expansion, worker retirements, and the changing skill needs driven by energy transitions and technological advancements. Some 88% of construction firms report having a hard time finding workers to hire.

To address this challenge, employers in construction and other industries are investing in workforce development — working to ensure current and future workers have the skills needed to succeed in high-demand careers. But employers can’t do it alone. And although federal funding is available to support skill development, it is not nearly enough. Just $28.2 billion out of a total $139.5 billion allocated annually for postsecondary education and training is spent on workforce development.

This policy brief estimates current federal spending on postsecondary workforce education and training and compares these funding levels to funding for traditional academic programs. This brief explores how investment in workforce education today compares to in investment in recent decades. Finally, it offers examples of how four states are investing in workforce education and offers policy recommendations for stakeholders and policymakers to consider for the future.

Read the full report.

Related Work

Op-Ed  |  June 18, 2025

Osborne for The 74: Red States’ School Vouchers Mark Biggest Shift in U.S. Education in a Century

  • David Osborne
Op-Ed  |  June 16, 2025

Manno for Forbes: Are Micro-Credentials Democratizing K-12 Credentialing?

  • Bruno Manno
Publication  |  June 12, 2025

The Apprenticeship Degree: Promoting Upward Mobility and Addressing Labor Shortages

  • Deanna Ross Bruno Manno
In the News  |  June 12, 2025

Kahlenberg in The Assembly: One Critic of Race-Based Admissions Says Colleges Can Still Improve Diversity

  • Richard D. Kahlenberg
In the News  |  June 12, 2025

Kahlenberg in The New York Times: What Happens if ‘Harvard Is Not Harvard’?

  • Richard D. Kahlenberg
Op-Ed  |  June 6, 2025

Weinstein Jr. for Forbes: More Colleges Freeze Hiring And Suspend Salary Increases

  • Paul Weinstein Jr.
  • Never miss an update:

  • Subscribe to our newsletter
PPI Logo
  • Twitter
  • LinkedIn
  • Facebook
  • Donate
  • Careers
  • © 2025 Progressive Policy Institute. All Rights Reserved.
  • |
  • Privacy Policy
  • |
  • Privacy Settings