In manufacturing, plant shutdowns occur frequently. Sometimes they are scheduled for planned maintenance. In other instances, equipment fails. The best manufacturers use shutdowns not only to fix what’s broken but also to upgrade their entire system. This is how we need to approach our economy right now.
American workers have been hit by both a pandemic and the largest wave of unemployment since the Great Depression. Nearly 23 million new unemployment claims have been filed, increasing the jobless total eightfold in four weeks. Some believe that the U.S. economy will shrink by 35 percent this quarter and that total unemployment could rise to 50 million, roughly one-third of the work force. The hardest hit will be workers in jobs that don’t require a college education or advanced degree.
While social distancing remains a necessity, this moment also gives us an opportunity to increase the skills of America’s labor force in ways that will benefit workers — and our economy — for years to come.
During normal economic periods, the pace of work gives the labor force little time or capacity to learn new skills like coding. While our first priority is to protect and saves lives, we can commit to upgrading our work force.
Study after study shows that the United States is woefully behind when it comes to preparing our work force for the jobs of the 21st century. Some of these roles — in software development or cybersecurity, for example — historically required post-college degrees. But the skills for many growing jobs — including home health care aides, occupational therapy assistants and solar panel installers — can now be obtained through targeted training. Successful examples of this model already exist, including a Google/Coursera partnership that has enrolled 130,000 individuals for software training that is recognized by multiple employers.
The Bureau of Labor Statistics projects that nearly half of the occupations with the highest rate of expected growth over the next decade do not require a college degree. These roles, most of which can be held by young workers or seniors, can be achieved through discrete, targeted online programs and are projected to provide annual income averaging almost $70,000 per year.
Our involuntarily idled workers can take advantage of their down time to train for the jobs of the future. We need a National Work Force Development Initiative — administered in partnership with a private sector consortium, appropriate government agencies and leading digital education providers, including Coursera, Arizona State University, Skillsoft, edX and others — that will not only prepare workers for better, higher-paying jobs, but also help America fill the millions of jobs the country will need over the coming decade.
This initiative would have four elements: targeting, training, credentialing and hiring.
First, a partnership of private-sector employers and government agencies overseeing existing budgets for job retraining should identify the essential and attractive jobs of the future that can benefit from online, modular training programs.
Second, the world’s best online professional development and work force training should be made available at little or no cost. This content should include both publicly available materials offered by schools with the best outcomes for adult learners, as well as proprietary programs offered by companies to their employees or clients.
Today, the federal government allocates $30 billion in federal education grants and another $17 billion to work force development programs, some of it through the Workforce Innovation and Opportunity Act. Modernizing these programs and allowing short-term program grants could be the source of funding for targeted training.
Third, the knowledge and skills gained through this training should be credentialed with badges that not only provide workers with additional earning power, but also give prospective employers assurances that certain skills have been acquired.
Fourth, both public and private sector employers should make a range of commitments for workers who obtain specified badges and meet agreed-upon criteria. These would include agreeing to host job interviews, providing internships and guaranteeing prearranged placement.
To support this initiative, federal and state governments can convert unemployment benefits into Workforce Upgrade Credits, a learning stipend that utilizes their Workforce Innovation and Opportunity Act funding. This would extend unemployment and child care benefits to those whose jobs were swept away by this crisis and are actively seeking a role tied to the new credential.
Policymakers and business leaders must move now to build the work force for the future. We have an obligation as a nation to provide the tools for millions to rebuild their lives. These workers will fuel a powerful revival for our country.
Michael Klein is the chairman and C.E.O. of Churchill Capital.
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