Introduction and summary
Workforce development has renewed focus at the state level as policymakers work to identify and execute strategies to expand the labor force, increase access to good jobs, and provide high-quality training and education opportunities for more students and workers amid a changing labor market and demand in certain critical sectors.1
States are struggling to find enough doctors and nurses to care for patients, especially in rural areas.2 More skilled electricians are retiring than are heading into the profession,3 undermining the country’s clean energy goals. School districts are scrambling to find teachers for their students amid shortages.4 Billions of federal dollars are invested in semiconductor manufacturing, but companies are concerned they will not have the workers to fill new openings.5 States are facing significant workforce challenges as data show that over the next eight years, there could be a shortage of 6 million workers across industries such as health care, skilled trades, and services.6
Effective workforce strategies such as registered apprenticeships and career and technical education (CTE)7 have received interest at the state and local levels.8 Policymakers are also targeting industries and certain occupations for which there is outsize demand. More policymakers are recognizing that pathways to careers should begin earlier in the K-12 education system.9 Recognizing untapped talent among workers who have a disability or were formerly incarcerated has led to policies to increase economic inclusion.10And lastly, some policymakers have directed increased funding for workforce development strategies in novel or creative ways.
This report provides a summary of best practices across a 50-state scan of workforce development-related state legislation from the 2023 and 2024 legislative sessions. These efforts are broad and span policies aimed at expanding opportunities across states’ diverse workforces.
Lawmakers can create more opportunities in the labor market
The labor market recovery following the COVID-19 recession has been historic for workers, with real wage growth exceeding inflation,11 unprecedentedly low unemployment rates near 4 percent,12 and a more equitable recovery for Black and Hispanic workers.13
However, this recovery was not experienced equally across the states. Unemployment and labor force participation rates varied widely: In 2023, Washington, D.C., had the highest labor force participation rate at 71.7 percent—almost 20 percentage points higher than Mississippi, which had the lowest participation rate at 54 percent.14 As for disparities in unemployment rates, Nevada’s unemployment rate (5.1 percent) was more than 3 percentage points higher than that of the state with the lowest unemployment rate, North Dakota (1.9 percent).15
Differences exist among age cohorts within the labor force as well. As the population continues to age, workers ages 55 and older are predicted to drive 42 percent of U.S. labor force growth, with women leading the way.16While the ranks of workers ages 55 and older have been growing for decades, many need help finding good jobs.17 Employment rates for people ages 55 and older still lag behind those of other age groups.18
Lawmakers must consider legislation to support the next generation of workers: young adults. In 2023, more than half of people ages 16 to 24 were employed.19 The employment rate was higher for young people not enrolled in school.20 Young people exposed to job readiness programs and training are more likely to stay connected to the labor market, leading to greater economic mobility and lifetime earnings.21 A vulnerable subpopulation within this group that should be prioritized in workforce development initiatives is opportunity youth, defined as young people ages 16 to 24 who are not attending school or working.22 In 2022, 11 percent of young people— almost 4.4 million—were considered opportunity youth.23 Strong workforce development policies targeting young people would ensure they are prepared to enter the labor market with the skills and qualifications needed to land high-quality jobs.
As the labor market continues to soften throughout 2024, lawmakers must invest in targeted solutions to connect workers with high-quality jobs in in-demand industries.24 Additionally, as each state faces a different workforce situation around demographics and other trends, policymakers at the state and local levels will need to consider their individual state’s challenges and areas of opportunity.
Findings from a state-by-state analysis
The Center for American Progress’ analysis spans 10 policy areas including registered apprenticeships, career pathways, critical industries, and supportive services. Each section includes state examples on best practices in workforce development policy.
1. States are responding to demand in critical industries
States are ramping up workforce development efforts in certain industries amid labor shortages. Health care, technology, energy, and education have been a particular focus in some parts of the country. Given the ambitious industrial policy efforts of the Biden-Harris administration over the past four years,25 some states are also investing in workers to enter the manufacturing and energy fields. Some states, such as Georgia, are taking a comprehensive approach to workforce needs by requiring the state workforce board to create, approve, and annually publish a high-demand career list to identify critical careers.26
Health care
In Washington state, S.B. 5582 focuses on growing the number of nurses in the state.27 The legislation includes expanding educational opportunities and a pilot apprenticeship program for home health aides, and it pairs a plan from community and technical colleges with building relationships between employers, community colleges, and labor representatives. Additionally, S.B. 5582 establishes a grant program to support high school career and technical education programs in health sciences and pilot projects in which rural hospitals work with high school students training to become nursing assistants.28
Lawmakers in Maryland are creating new career pathways to tackle the nursing shortage in their state. S.B. 0718 creates the Maryland Pathway to Nursing Pilot Program in the Maryland Higher Education Commission to support more students interested in nursing careers and includes grants for pilot sites.29
Similarly, in Hawaii, lawmakers are using H.C.R. 187 to pursue a study to address a significant nursing shortage that has led to increased staff-to-patient ratios, unsafe working conditions, and higher burnout rates among health care professionals.30 One area for the study is workforce development; policymakers would use the study results to craft policy interventions.
Lastly, Virginia S.B. 155 establishes the Virginia Health Care Career and Technical Training and Education Fund, which focuses on developing the health care workforce by building the pipeline of talent earlier in the education and workforce systems.31
Manufacturing, technology, and infrastructure
In Oregon, lawmakers established the Semiconductor Talent Sustaining Fund via H.B. 4154.32 This law is a comprehensive approach to supporting the semiconductor industry in Oregon and builds off the federal CHIPS and Science Act of 2022. Specifically, H.B. 4154 builds educational pathways within the K-12 system and up through higher education for future workers. It also establishes the Semiconductor Talent Sustaining Fund, which focuses on increasing opportunities for underrepresented workers in order to diversify the semiconductor workforce. The measure also incorporates recommendations from the Oregon Semiconductor Competitiveness Task Force to prepare the Oregon workforce for the anticipated 7,000 semiconductor industry-related jobs expected in the next few years.33
S. 999 in New Jersey focuses on manufacturing jobs broadly.34 Among its provisions, the legislation sets up a $10 million grant program to distribute funds to higher education institutions to create more career pathways into manufacturing for students and workers. S. 999 further creates the New Jersey Advanced Manufacturing Council within the New Jersey State Employment and Training Commission and includes representatives with expertise in labor, education, or workforce development.
In Hawaii, lawmakers are eyeing workforce development in the maritime industry given a shortage in the state of licensed mariners. S.C.R. 79 urges the University of Hawaii to create a working group with the goal of establishing a maritime college that would offer baccalaureate degrees and prepare students for U.S. Coast Guard licensing, enhancing workforce development in various maritime fields.35
Maryland is investing in its technology sector via multiple bills. H.B. 0410, which passed in the spring, provides funding for supporting growth in emerging and advanced technology, including workforce development. It also will provide financial assistance to public, nonprofit, and private entities, including higher education institutions and public-private partnerships, focusing on workforce development and business-attracting infrastructure.36 In addition, S.B. 0781 amends an existing partnership to focus on advanced manufacturing across the state, including by fostering relationships with local colleges and public schools to develop a skilled advanced manufacturing workforce and to promote investment in the region.37
Lastly, in California, S.B. 150 focuses on construction and infrastructure jobs. It requires greater coordination between various state agencies, including the Department of Transportation, and has provisions around high-road contractors, project labor agreements, and other standards to create good jobs with strong labor protections.38
Energy
A number of states are pursuing policies around offshore wind and clean energy. Coastal states such as California,39 Louisiana,40 Maine,41 and Oregon all have legislation focusing on the offshore wind industry and workforce development.42 Of note, some of these efforts include requirements around strong labor standards, registered apprenticeships, and other high-quality programs aimed at training workers and creating good jobs in this burgeoning industry.
In Connecticut, lawmakers are creating a Green Jobs Corps Program. The program established via H.B. 6354 would outline a talent development strategy, help communities respond to climate change, and reduce greenhouse gas emissions.43 The act requires an interagency approach to identify and update a career ladder for green technology jobs and includes provisions around the development of a workforce plan to include work-based learning; certificate and degree programs; funding identification; and recruitment strategies, particularly those targeting underrepresented populations.
Education
Maryland is focusing on early childhood education and growing the early educator workforce with sweeping legislation aimed at enhancing publicly funded prekindergarten programs. Among other provisions, H.B. 1441 creates an early educator career ladder program and requires professional development.44
2. Investments in registered apprenticeships are ramping up
Registered apprenticeships are high-quality earn-and-learn programs that lead to higher wages and earnings over a worker’s lifetime.45 In 2023, there were more than 600,000 registered apprenticeships in the United States.46 This workforce development strategy is becoming more popular among policymakers to connect a diverse and skilled workforce with high-quality, in-demand jobs. In the past decade, registered apprenticeship programs have increased 85 percent.47 State lawmakers can use these programs to create pipelines for workers to enter critical industries with the skills needed to be successful.
Several states established and strengthened government regulatory groups such as advisory boards, councils, and departments within state departments of labor that regulate and administer apprenticeship programs.48 While states delegated various responsibilities to these governing bodies, most oversee apprenticeship registrations, local licensing authorities, and employers, as well as evaluate apprenticeship programs and set apprenticeship standards. These apprenticeship regulatory boards ensure that apprenticeships comply with federal and state regulations and standardize apprenticeships across the state.
Kansas aspires to be one of the top 25 states for apprenticeships by 2025, and to do so, it will need to add nearly 10,000 apprenticeships.49 To meet this goal, lawmakers passed legislation to bolster apprenticeships in high-demand industries such as health care and education by offering tax credits and grants to employers.50 Employers receive a tax credit of up to $2,500 per apprentice in registered apprenticeships and an additional $500 if the apprentice is enrolled in a secondary or postsecondary CTE program. Moreover, this legislation created the Kansas Educator Registered Apprenticeship Grant Program, which offers education apprentices up to $2,750 per year toward the costs of postsecondary education degrees.
Kansas also is one of several states that passed legislation to address national teacher shortages following the COVID-19 pandemic.51 For instance, the Delaware Educator Apprenticeship Program creates an earn-and-learn career model for aspiring teachers and provides on-the-job training and mentorship to future educators.52 This program will address the statewide teacher shortage and help make the career more attractive by offering new teachers professional development opportunities.53 Similarly, Connecticut passed legislation that would create a program to support students enrolled in preexisting educator preparation programs to gain classroom teaching experience.54
In 2023, Vermont lawmakers modernized the state’s apprenticeship programs by passing H. 452.55 The measure includes specific guidelines on registering apprenticeships and requirements for employers to create work plans, establishes a wage schedule, and requires apprentices to be eligible for benefits. These provisions ensure that apprentices are paid fairly according to their skill level and are in high-quality career pathways. The legislation also established the Vermont Registered Apprenticeship Program within the state Department of Labor to focus on developing, registering, and monitoring apprenticeships across the state and to foster inclusion and equity in state apprenticeship programs.
West Virginia lawmakers created the Skilled Trades Apprenticeship Nontraditional Degree (STAND) program, which provides to participating community and technical colleges funds that go toward the tuition of current apprentices or journeyworkers.56 Apprentices can earn 15 hours of general education credit toward an associate of applied science degree while they perform on-the-job training in their program. STAND will help bridge the gaps between postsecondary education and the apprenticeship learning experience to create a workforce with relevant on-the-job training and credentials needed to meet current workforce demands.
3. Bolstering career pathways in the K-12 education system
Colorado, Idaho, Indiana, Kentucky, Maryland, and Virginia are among the states that have made strides in the K-12 space by employing work-based learning and college and career readiness strategies.
One of Colorado’s primary workforce development investments in K-12 this past year has been Opportunity Now Grants.57 This legislation allocates a one-time sum of $3.8 million to address workforce shortages in infrastructure and building trades through the Regional Talent Development Initiative Grant Program. Through this program, regional summits will convene across the state to identify and address workforce development needs via job projections, an overview of educational pathways, local insight into workforce needs, goal setting in the talent-gathering space, and the creation of targeted workforce development plans. The law also establishes a universal high school scholarship program for degree-seeking high school graduates and a state income tax credit to offset facilities and equipment costs associated with training programs.58
Idaho recently revised the Idaho LAUNCH grant program and the In-Demand Careers fund in order to outline funding provisions, define key terms, and create timelines for scholarship programs.59 In Idaho LAUNCH, the Workforce Development Council leverages policy to connect Idaho high school students with in-demand careers through workforce training, CTE, community colleges, and universities. Through the program, eligible students will receive grants of at least $8,500, part of which they can use to fund dual credits, workforce training courses, and college entrance exams, among other eligible expenses. Idaho also established the Career Ready Students program for students in grades 7 to 12 to advance CTE opportunities that align with state and local workforce needs.60The council established to preside over the program is responsible for awarding grants for proposals that focus on addressing community workforce demands, particularly in rural areas.
In Indiana, H.B. 1002 has tasked the Governor’s Workforce Cabinet with identifying and setting goals around local workforce needs in addition to monitoring their implementation and evaluating their effectiveness.61 This involves reviewing career readiness programs to ensure they align with employer needs and determining whether Indiana’s students are prepared for success in the 21st century economy. Career readiness instruction can start as early as first grade, with career awareness activities that begin to introduce students to the concepts of jobs and employment. Students will shift to career information activities that focus on their own skills and interests during their middle school years. Then, in high school, with graduation on the horizon, students will explore future employment opportunities through career exploration activities such as career counseling and on-the-job experiences.
Kentucky passed H.B. 586 to establish the Kentucky Education and Workforce Collaborative to help fulfill the Workforce Innovation Board’s strategic plan.62 This collaborative aims to identify both federal- and state-funded workforce programs, create a structure for the implementation of and transition into workforce training and employment programs, and assess child care services. To carry out this work, designated Kentucky Career Centers will offer services such as job searching, group training, and job search preparation. Collaboration among local businesses, educational entities, and employees will facilitate service delivery, and educational entities will focus on offering evidence-based services that prepare students for the workforce.
In the last legislative cycle, Maryland set its sights on improving data reporting and expanding opportunities. In S.B. 0172, Maryland took measures to strengthen data reporting in workforce development for youths through the Job Opportunities for High School Students Act.63 Through this act, data on students with work permits, with the consent of the student or their guardian, are collected and reported to registered employers, apprenticeship sponsors, educational programs, and local workforce development boards. This cross-sector collaboration allows for improved communication across sectors seeking to provide students with workforce development opportunities. More recently, Maryland passed S.B. 0033, which established the More Opportunities for Career-Focused Students Act of 2024.64 The aim of this legislation is to improve career education and apprenticeship opportunities for high school students. Additionally, the act requires that public high schools educate their students on workforce training opportunities and that county boards facilitate student information sharing.
Virginia’s creative approach to workforce development investments in K-12 education addresses another pressing issue: reducing gun violence. In early 2024, Virginia established the Community Builders Pilot Program, which aims to reduce gun violence among youths while increasing community engagement among students at Roanoke City and Petersburg City public schools.65 Through summer and after-school sessions, this program educates students on workforce development, postsecondary education options, and social-emotional learning while also focusing on community engagement. Providing these extracurricular opportunities for youths that focus on their well-being allows them to learn valuable skills for their future while strengthening community relationships as a violence prevention strategy.66
4. Providing supportive services to more families
Supportive services such as child care, adult care, and transportation are crucial to ensuring that no workers are left out or behind and for promoting equity and inclusion in the labor market.67 Supportive services are an evidence-based strategy to help underrepresented workers enter and remain in the workforce.68 Policymakers can fund supportive services for students and workers in training and education programs to increase retention and completion rates.69
Some states have focused on expanding supportive services at the state and local levels. In Oregon, lawmakers recognized the need for supportive services to develop their semiconductor manufacturing workforce. Oregon created a CHIPS Child Care Work Group through H.B. 4098 to improve child care infrastructure in areas with semiconductor or advanced manufacturing facilities.70 Additionally, the bill seeks to develop recommendations around how much businesses that are receiving grants should contribute to the high cost of child care. Lastly, the bill requires coordination among state agencies to provide financial support and child care subsidies to construction apprentices and recent journeyworkers. This effort came as the Biden-Harris administration required companies seeking more than $150 million in grants from the CHIPS and Science Act to submit plans regarding child care for the workers and communities in which they plan to invest.71
In Arizona, lawmakers are focusing on supportive services for adult learners. The bill, S.B. 1113, establishes a continuing high school and workforce training program for adult learners that includes supportive services such as on-site child care, transportation assistance, career counseling, and job placement assistance.72
Lawmakers in New Mexico identified the high cost of housing as a barrier to employment for some workers. H.B. 195 defines “workforce development housing” and provides more affordable housing for middle-income workers near employment centers.73 This would help alleviate the distance that workers need to travel to attain employment.
5. Focusing on integrated settings and workers with disabilities
While disabled people made significant gains in employment in 2023, persistent barriers such as lack of accommodations or discrimination can prevent them from entering and remaining in the labor market.74 These challenges are exacerbated for disabled women and people of color.75 As of 2023, disabled people had an employment rate that was one-third the rate of people without disabilities,76 and the unemployment rate for disabled workers was double the unemployment rate of workers without disabilities.77 States should look to innovative policy solutions that strengthen disabled people’s ability to enter and remain in the labor market and support their economic security and well-being.
The most comprehensive bill in 2023 was Connecticut’s H.B. 5001, which addressed the needs of people with intellectual and developmental disabilities across education, employment, health care, housing, transportation, and other issues.78 The bill includes tax rebates and contracting preferences to encourage businesses to employ disabled workers and establishes a workforce development grant program for nonprofits that hire disabled workers. Additionally, it requires the Connecticut Office of Policy and Management to evaluate and implement best practices for expanding employment for people with intellectual and developmental disabilities.
States can implement strategies within state governments to support disabled workers in the labor market. In 2024, Georgia enacted the Georgia as a Model Employer Program, which requires state agencies to set goals for the recruitment, hiring, advancement, and retention of people with disabilities within their departments to connect disabled people with high-quality jobs.79 Colorado created the Disability Opportunity Office within the Colorado Department of Labor and Employment to implement a statewide strategy to improve both disabled people’s employment and antidiscrimination workplace policies.80
In Illinois, lawmakers required school districts to provide disabled high school students and their parents or guardians with information about the district’s CTE opportunities and dual credit courses.81
States can also support disabled workers by bolstering investments in support services for disabled people. For instance, Hawaii passed S.R. 26, which established a working group to develop the American Sign Language interpreter workforce to increase support services for people who are deaf or hard of hearing and to close learning and access gaps.82 Alongside the incentives to employ disabled workers, Connecticut’s law would establish a career pipeline for behavioral health and human services jobs to ensure people with disabilities receive the care they need.83 Moreover, Connecticut’s law reduces waitlists for home- and community-based services, which can provide disabled people with vocational and job coaching services.84 Policies that encourage hiring disabled people, coupled with strategies to increase access to support services, can help disabled people maintain employment and achieve economic security.
6. Using funding creatively for workforce development
A common workforce challenge is limited resources and funding available for workforce development. Given these circumstances, some states are using funding in novel ways to invest in their workforces.
In Colorado, H.B. 24-1365 funds workforce development grants that would specifically help workers in the construction and building trades.85 In Oregon, H.B. 3306 ties funding from workforce programs to certain standards that entities must meet, such as requiring the establishment of a wage standard and the development of training plans for participating workers, including through paid work experience.86
While not legislation, it is worth noting that some states are using highway formula funding to expand training opportunities for workers. In Pennsylvania, Gov. Josh Shapiro (D) signed an executive order dedicating up to $400 million of infrastructure funding to workforce funding.87 A large share is planned to come from Pennsylvania’s Department of Transportation.88
In addition, Maryland is utilizing the flexibility granted by the federal Infrastructure Investment and Jobs Act for state transportation agencies to develop a new workforce development framework that will create job opportunities in the skilled trades, with a focus on supportive services that reduce barriers to employment.89
7. Expanding access to community college for better training
As of July 2024, more than 30 states have some version of free community college at the state level.90 This is notable for workforce development because community and technical colleges are a key element of the public workforce system and provide a significant portion of worker and student training.91 Community colleges are well-positioned to provide training at the scale that will be needed to prepare workers for the opportunities created by the Biden-Harris administration’s industrial policy investments. Expanding access to community college for more students will grow the workforce and train students for new opportunities in the labor market.
Massachusetts is one of the latest states to offer free community college programs. In 2023, it created the MassReconnectprogram, which provided free community college for students ages 25 and older.92 In summer 2024, Gov. Maura Healey (D) signed a budget that now includes free community college for anyone in the state, with certain eligibility requirements.93 The early results are promising. In the 2023-24 academic year, the state’s community college system saw a 45 percent increase in enrollment over the previous year for students ages 25 and older.94
Another recent example is Michigan, where Gov. Gretchen Whitmer (D) established Michigan Reconnect in 2021 to offer free community college to students ages 25 and older who do not have postsecondary credentials.95 The program has been so successful that in fiscal year 2024, the state legislature approved a plan to lower the age to 21 to give access to even more students.96
While not exclusive to community colleges, Washington state’s recent policy changes should affect access to those schools. This year, lawmakers passed S.B. 5904, which expands the number of years a student is eligible for financial aid programs from five to six.97 Additionally, H.B. 2214 makes most high school students whose families rely on public assistance programs, such as the Supplemental Nutrition Assistance Program (SNAP), automatically eligible for the Washington College Grant.98
8. Strengthening data collection and reporting
States have also been turning their attention to data collection and reporting in the workforce development space. Better data will give states greater information with which they can make decisions about how to target workforce development in their communities.
For instance, Texas has been working to improve the quality of available apprenticeship data and to provide a road map to grow the workforce. The state passed a law requiring the Texas Workforce Commission to issue an annual report on apprenticeship opportunities in high-demand industries.99 This report will include data on active apprenticeship programs and apprentices, the occupational demand for each industry, and recommendations to expand apprenticeship opportunities across the state.
Similarly, Virginia enacted legislation that seeks to prioritize cross-sector collaboration in an effort to strengthen data collection standards and to work toward metadata collection.100 As part of this collaboration, the Office of Data Governance and Analytics will work to enhance and refine data sharing systems across the state. Some actionable steps toward this goal include increasing data practice compliance, making commonwealth data more accessible, and promoting data- and evidence-based policies. This Office of Data Governance and Analytics will also preside over the Commonwealth Data Trust, which is responsible for collecting and disseminating data.
Additionally, Virginia established the Department of Workforce Development and Advancement, which is responsible for developing its own structure and defining key workforce development terms.101 This department will take part in data sharing for the purposes of evaluating and improving workforce programs. The bill also establishes an apprenticeship council and makes the department responsible for defining key terms related to this work.
While some states are looking to build up their data systems, others are working to address any discrepancies and ensure their systems are up to date. Indiana, for example, passed H.B. 1243, which requires the Indiana Department of Education to work to reduce redundant data submissions.102 It also mandates that high school diploma requirements be updated, that data for homeless youth and youth in foster care are reported, and that a remediation plan be developed for the homeless youth population. Professional development for STEM educators, particularly those who teach math, a high-paying and high-demand field, is also included in this act.103
9. Creating employment opportunities for reentering individuals
In the United States, at any given time, almost 6.9 million people are on probation, in jail, in prison, or on parole.104 According to the U.S. Department of Health and Human Services, “Each year, more than 600,000 individuals are released from state and federal prisons.”105 This includes thousands of young people who will face barriers to employment at the beginning of their working lives.106 Yet the unemployment rate for reentering individuals is significantly higher than that of the general population.107
Some states are working to create more employment opportunities for reentering individuals. In Maryland, lawmakers established the Task Force on the Creation of a Division of Returning Citizens and Expanded Reentry Services via S.B. 1036 as part of a comprehensive effort to identify barriers and opportunities for this population.108 The task force will submit a report to the General Assembly on policy recommendations to increase access to and quality of reentry services and to improve reentry outcomes.
In Illinois, lawmakers created the Returning Residents Clean Jobs Training Program via H.B. 3702 to prepare individuals who are in custody and within 36 months of release for employment in the clean energy sector through recruitment, training, and employer connections.109 The program will be administered by the Department of Commerce and Economic Opportunity in coordination with the Department of Corrections.
Lastly, some states realize that partnering with employers and assisting them with information is critical to creating more jobs for reentering people.110 Wisconsin S.B. 169 requires the Department of Workforce Development to create a toll-free hotline to assist employers interested in hiring reentering people.111
10. States are creating more opportunities for students and workers in rural communities
Rural areas of the United States have long struggled with population decline, a lack of employment opportunities, disproportionate rates of poverty, and chronic disinvestment.112 Many rural communities fared worse during the COVID-19 recession and continue to experience issues with a lack of health care workers and infrastructure, among other challenges.113 Given these trends, some states are focusing on expanding economic opportunities to rural communities through workforce development.
In Washington state, H.B. 1289 creates scholarship opportunities for rural students, including those seeking jobs in high-demand fields.114 The Washington State Opportunity Scholarship and Rural Jobs Program aims to support students pursuing various degrees and certificates, particularly in high-demand fields and rural areas. This program would give these students greater access to higher education, and eligibility is based on enrollment in a local community or technical college and participation in identified high-demand programs.
As mentioned in the above “Health care” section, a workforce development effort underway in Washington state centers on alleviating the shortage of nurses in rural areas. S.B. 5582 requires community and technical colleges to develop plans for how to increase the number of nurses and prioritizes rural and underserved areas in partnership with health care employers, workforce development councils, and nursing representatives.115 Further, the legislation establishes a grant program to support high school career and technical education programs in health sciences and pilot projects in which rural hospitals work with high school students training to become nursing assistants.
In Maryland, lawmakers revised the existing Rural Communities Improvement Act of 2023 in order to expand the Rural Maryland Prosperity Investment Fund to allow for funding to go toward business and workforce development activities.116 This will help drive more resources for rural communities in the state.
In Arkansas, H.B. 1710 establishes the Rural Economic Development Initiative, which is aimed at increasing funding going toward rural areas and makes workforce development one of its eligible uses, including “industry-driven job skills training” and projects with long-term economic impacts.117
Similarly, in Washington state, H.B. 2230 establishes the Economic Security for All grant program aimed at providing a boost in funding toward greater economic inclusion for underserved communities, including rural areas.118
Recommendations
Based on the analysis of recent state-by-state action, this report recommends states do the following as they consider best practices for policies in the upcoming 2024–2025 legislative session:
- Target workforce strategies to the industries and unique talent pools in the state and work to systematically identify which occupations and roles are in high demand.
- Build partnerships among labor representatives, employers, educational institutions, workforce boards, and other important voices to create sectoral approaches and interventions to workforce challenges.
- Scale successful, evidence-based training programs, such as registered apprenticeships, and consider expanding them into high-demand occupations where there may be worker shortages.
- Build the talent pipeline earlier throughout the K-12 system and beyond to invest in a cradle-to-career system, and invest in career readiness programs, career and technical education, work-based learning, and other proven workforce strategies.
- Consider the role of community colleges and tuition assistance programs such as free community college and how these can help increase training and workforce opportunities for more students, including those without postsecondary education or college degrees.
- Promote inclusivity in the labor market by investing in supportive services and other measures that can reduce barriers to employment, especially for workers with disabilities, workers ages 55 and older, opportunity youth, reentering individuals, and others who may need more support. This can include workers without a college degree who may need pathways to training programs.
- Engage employers at all steps of the policy process on workforce development, build partnerships to create opportunities that benefit both employers and workers, and provide information on how to promote inclusivity in hiring.
- Consider strategies to expand workforce opportunities to rural areas, which can drive economic growth and prosperity in these communities.
- Take a creative approach to funding and resource allocation for workforce development given chronic underfunding and limited resources.
- Invest in robust data collection and reporting systems to measure program quality and performance in order to help craft policies and better target interventions.
Collectively, these strategies should help states better develop their workforces and grow their economies in a holistic and comprehensive way.
Conclusion
States are investing in workforce development to increase economic opportunity and inclusion for more students and workers in their communities. These efforts are tailored to the distinct composition of states’ workforces and industries and to populations that have historically been left out of or behind in the labor market. Additionally, amid new demand in critical sectors, states are thinking creatively about how to leverage existing programs and tools, as well as innovating where possible on solutions to drive labor market growth. Policymakers and other state leaders facing similar challenges should watch this landscape to see which policies can help them achieve their workforce and economic objectives in the coming years.
Authors’ note: The disability community is rapidly evolving to use identity-first language in place of person-first language. This is because it views disability as being a core component of identity, much like race and gender. Some members of the community, such as people with intellectual and developmental disabilities, prefer person-first language. In this report, the terms are used interchangeably.
Acknowledgments
The authors would like to thank Alex Cogan, Jared Bass, Stephanie Hall, Casey Peeks, Mia Ives-Rublee, Allie Preston, and Paige Shoemaker DeMio at the Center for American Progress for their valuable feedback and contributions to this report. The authors would also like to thank Sophia Applegate for her thorough fact-checking and support throughout this report’s development.
Methodology
The purpose of this study was to identify themes and best practices within state legislation enacted after December 1, 2022, that focused on workforce development. The authors searched legislation via Quorum using the following keywords: workforce development. Following this search, the list of legislation was further pared down by eliminating any pieces of legislation that the authors felt were not significant in scope and were not a best practice for other states to consider ahead of 2025. Examples and themes were chosen as a best practice based on prior research and expertise from the Center for American Progress, as well as established research on policy approaches to create good jobs and grow the economy.