The recent health crisis – and unprecedented, rapid job loss associated with it – has illuminated how unprepared the United States is to help workers who lose their jobs reskill to prepare for and successfully enter new employment. Policy responses to the current crisis – while critical – have fallen short of addressing challenges workers and businesses face. In a new report, National Skills Coalition outlines an aligned, comprehensive, reemployment accord to respond to current challenges and prepare for an inclusive economic recovery that addresses prior policy shortcomings and moves all workers and businesses towards success in the 21st century.
This path forward, outlined in A 21st Century Reemployment Accord, includes four key pieces:
- Expand access to skills training by making workers who lose their jobs eligible for a Dislocation Training Account, providing up to $15,000 in public funds to invest in training through an apprenticeship program, with a community organization or at a community or technical college. Studies suggest financial concerns are the largest barrier to workers succeeding in training. Reskilling for jobs of the twenty-first century will require short and longer-term training, frequently outside of traditional degree programs, yet today’s workers are often unable to access public funds to support training for quality non-degree credentials.
- Launch a federal “Reemployment Distribution Fund,” providing access to income support, through robust unemployment insurance and wage-replacement subsidies, that mitigate the financial impact of job loss on workers, their families, and communities. An initial investment of $20 billion as well as sustainable funding, should empower states to draw down funds to cover the length of training and job search necessary for workers to access a job of the twenty-first century. A first step for Congress to accomplish these goals would be to expand Trade Adjustment Assistance to cover a far larger set of workers, such as those who lose their jobs permanently due to automation.
- Create a network of “Twenty-First Century Industry Partnerships” among businesses, education providers, the public workforce system, and community organizations to ensure the significant public and private investments necessary to respond to worker dislocation caused by technological changes in the workplace align with employment opportunities in in-demand industries. Industry and sector partnerships are a best practice across the country but need to be expanded to more industries in more local areas to reach the scale necessary to respond to challenges associated with technological change in the workplace. This expansion will mean a dedicated federal investment.
- Maximize eligibility for and access to other support services under existing federal programs for workers during the reemployment process. Barriers to accessing childcare, transportation, and other support services — such as eligibility that doesn’t permit workers to access subsidies while in training programs, underfunding that leads to long waiting lists, or the fact that our social safety net programs reach too few people — make it harder for workers to succeed in training programs necessary for reemployment. To maximize retention and success in a new job, these services should be available to workers during the transition period in a new job, as well. Any federal response to job loss caused by technological change needs to provide workers with access to comprehensive, robust support services that improve worker success and retention.
The new report is the second in several publications National Skills Coalition is releasing this summer detailing recommendations for an inclusive and equitable economic recovery from Covid-19. Read the full brief for more detail on how to modernize reemployment to serve workers and businesses.