Closing the talent gap: Five ways government and business can team up to reskill workers

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Closing the talent gap
Five ways government and business can team up to reskill workers

The economy is changing in dramatic ways
Middle-skill” jobs
account for
53% of the U.S.
labor market, but
only 43% of the
country’s
workers are at
that level.
In 2018,
unemployment
rate has hovered
around 4.0%
and the number of
unemployed
people per job
opening is at a
historic low of 0.9
The workforce
participation rate
declined from
67.3% in early
2000 to 62.9%
in March 2018
People are living
and, in many
cases, working
longer,
prompting many
workers to plan a
50-year career to
meet their
financial needs.
WEF predicts
that about 75
million jobs will
be eliminated
due to AI and
about 133
million new
jobs will be
created
Lack of
skilled
workers
Tight labor
market
Rising number of
discouraged
workers
Older
population
Impact of new
technologies
Source: National Skills Coalition, Bureau of Labor Statistics, Deloitte Insights, World Economic Forum2

Worker reskilling is becoming critical…
According to the Bureau of Labor Statistics, there are more open jobs than the number
of applicants to fill them.
Source: Bureau of Labor Statistics3

Lower wage jobs are most at risk of automation
83%
31%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less than $20 Dollars $20 to $40 Dollars More than $40 Dollars
Median Hourly Wage in 2010
Median Probability of Job Automation
Learning new skills is critical
to navigating the disruptions
caused by emerging
technologies
Source: The White House4

The federal government helps displaced workers mostly through traditional
job training programs
spent annually on
government workforce
development programs
47
$18 billion
Federal job training
programs
8 million participants per year
But do these programs work?
According to GAO, “Only 5 programs have had
an impact study…with only some
demonstrating positive impact that tended to
be small, inconclusive, or restricted to short-
term impacts.”
Source: United States Government Accountability Office5

So how can government help businesses close the “talent gap”
Flip the script: Tailor training to the individual and
the job
3
1
2
4
5
3
1
2
4
5
Expand thinking around apprenticeships
Focus on the lesser skilled workers
Reimagine higher education
Play a matchmaker role to connect employers and job
seekers
6

Start with the job. Work with the employer
community to design workforce programs
that create a talent pipeline for specific
needs
Use Workforce Innovation and
Opportunity Act (WIOA) data to
improve training programs by tailoring
offerings
Flip the script: Tailor training to the individual and
the job11
7

Expanding apprenticeships to newer job categories
MC2 in Missouri, designed an apprenticeship program
focused on cybersecurity in partnership with businesses,
government, and military officials to tap into workers
from diverse backgrounds, including retirees, veterans,
and former teachers.
Old apprenticeship thinking: Apprenticeships are only for trades and vocational skills
New apprenticeship thinking: Apprenticeships can be valuable for middle skill jobs such as
lab technicians and high skill jobs such as cybercrime analysts
22 Expand thinking around apprenticeships
Source: CXO Magazine8

33 Focus on lesser skilled workers
Lower skilled workers are most at risk of automation
and less likely to receive training
Governments can partner with non-profits and community
organizations to assist in building a pathway to better jobs
and higher wages for lower skilled workers. They can also
play a convening role bringing employers, community
colleges, and other ecosystem partners together to help
develop the skills of these individuals.
9

44 Reimagine higher education
Consider college education as a platform for life-
long learning
Integrate work experiences deeply into the
curriculum
#1
#2
10

55 Play a matchmaker role to connect employers and job
seekers
How can government help bridge the gap?
By sharing information about job openings, by bringing ecosystem
players together, by identifying needs within industry clusters
11

Read more
Reinventing workforce
development
Closing the talent gapThe future(s) of public higher
education
12

John O’Leary
State and local government research leader
Deloitte Services LP
+1 617 437 3576
jpoleary@deloitte.com
Contacts
Scott Malm
Principal
Government and Public Services
Deloitte Consulting LLP
+1 612 397 4429
smalm@deloitte.com
China Widener
Principal
Government and Public Services
Deloitte Consulting LLP
+1 513 723 4174
cwidener@deloitte.com
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Closing the talent gap: Five ways government and business can team up to reskill workers