Workforce development, an American approach to economic development, attempts to enhance a region's economic stability and prosperity by focusing on people rather than businesses. It essentially develops a human-resources strategy. Work-force development has evolved from a problem-focused approach, addressing issues such as low-skilled workers or the need for more employees in a particular industry, to a holistic approach considering participants' many barriers and the overall needs of the region.
Work-force development has historically occurred in two forms: place-based strategies that attempt to address the needs of people living in a particular neighborhood, and sector-based strategies that focus on matching workers' skills to needs in an industry already present in the region.
Across both approaches, themes for best practices have emerged. Successful workforce development programs (WDPs) typically have a strong network of ties in a community, and are equipped to respond to changes in their environments. Additionally, they take a holistic approach to the problems faced by participants.
The responsibility for work-force development in the United States has rested on the government's shoulders for at least a century, since the advent of public schools. This formal system of education replaced earlier systems in American history when students whose parents desired them to learn a trade other than their parents' took up apprenticeships. Informal schooling took place at home, depending on the household's ability and income level. Public schools were founded to prepare students to earn a living wage by providing them with skills such as reading and arithmetic. However, employers still typically provided vocational training on-the-job.
Traditional work-force development has been problem-focused. Economic development practitioners evaluated neighborhoods, cities, or states on the basis of perceived weaknesses in human-resource capacity. However, recent efforts view work-force development in a more positive light. Economic developers use work-force development as a way to increase equity among inhabitants of a region. Inner-city residents may not have access to equal education opportunities, and work-force development programs can increase their skill levels so they can compete with suburbanites for high-paying jobs.
Workforce development often takes a more holistic approach, addressing issues such as spatial mismatch or poor transportation to jobs. Programs to train workers often form part of a network of other human-service or community opportunities.
Approaches to work force development
Researchers have categorized two approaches to work force development, sector-based and place-based approaches. The sectoral advocate speaks for the demand side, emphasizing employer- or market-driven strategies, whereas the place-based practitioner is resolutely a believer in the virtue of the supply side: those low-income job seekers who need work and a pathway out of poverty. However, contemporary strategies often use a mixed approach.
Sector-based approach
Description
Sector-based approaches consider the sectors, or industries, in a region that are in need of specific workplace skills. These strategies focus on the demand side of workplace development and consider the industries in which it is most likely that new employees will be hired. Sector-based programs may have higher entrance requirements than place-based strategies because their ultimate aim is to aid the sector at which they are targeted, not to increase the general hirability of the most disadvantaged residents.
Creation of a sector-based program
Sector-based strategies are designed to fit the needs of both industry employers and workers who want to improve their skills and advance their career development. By definition, sector-based approaches must target a specific industry.
An initial assessment can reveal which industries would be good targets for a region, and assessments during the program can help refine the program's focus.
Appropriate strategies are typically created through networks and partnerships. These partnerships are designed to connect low-income or disadvantaged individuals with employment in jobs that offer the promise of financial stability and significant growth in the industry in the near future.