Report Expand the Labor Force With Workforce Preparation

Connecting Higher Education to the Workforce

State higher education systems serve as a key pipeline of workers into the labor force. But if college graduates are misaligned from the labor needs of employers, graduates may struggle to find work in their field of study and employers may struggle finding talent with the skills they need. States can seek ways to engage diverse populations that have historically been underrepresented in college enrollments, including people of color, people with disabilities, students from low-income households, etc. States are working on modernizing their higher education systems to address evolving industry needs and to make them more accessible and affordable.

Serving Today’s Diverse Higher Education Population

Today’s college student is less likely to be a traditional college freshman who just graduated from high school and is attending college full time. In fact, among today’s college students, almost 40% of students are 25 years old or older—and this percentage is growing every year. Today’s students are more diverse than any previous generation of college students, by age, race and income level. They are increasingly mobile, and many live off campus, with work and family responsibilities competing with their educational goals.

State Examples

States are taking steps to identify and better support students who have been traditionally underserved by the higher education system.

• Oregon requires each community college and public university to establish a process for recommending and providing oversight for implementation of cultural competency standards for the institution and institution's employees to improve the inclusion of students, faculty, staff and administration from diverse backgrounds.
• Washington requires diversity, equity, inclusion and antiracism training and assessments at institutions of higher education.
• Kentucky expanded eligibility for the Work Ready Kentucky Scholarship Program to students with intellectual disabilities enrolled in comprehensive transition and postsecondary programs.

College Completion Rates

Too many students start college and don’t finish. New data from the National Student Clearinghouse finds the national six-year college completion rate reached just 62.2% in 2021. Students of color and those from low-income backgrounds complete college at lower levels than their peers. The National Center for Education Statistics indicates that 64% of white students, 40% of Black students, and 54% of Hispanic students graduate within six years. Income is a factor also. Students from low-poverty high schools were more than twice as likely to earn a degree within six years of high school graduation (53 percent) as their counterparts from high-poverty schools (21%).

Among the millions of students who do not receive a degree, many are left with student loan debt without the benefits of higher paying jobs or increased economic security. Some policymakers have suggested as many as 40% of student loan borrowers failed to earn a degree within six years, however that figure has come under some scrutiny.

Students struggle to complete their higher education pursuits for a variety of reasons, including lack of information and resources, financial challenges, family responsibilities and increasing costs. College completion strategies aim to help get students across the finish line and into careers by providing a variety of financial and wraparound services to support increased college graduation rates.

Non-Tuition Costs

Most state financial aid programs cover only tuition and fees. However, those costs constitute just a portion of what most students spend to attend public two- or four-year institutions. Beyond the cost of tuition are additional costs, including textbooks, transportation, childcare and living expenses such as food and housing. For some students, these costs equal more than tuition and fees.

State Examples

Helping today’s student navigate available assistance with non-tuition costs is a growing area of state legislative activity. Strategies include creating homelessness liaisons, affordable housing initiatives, assistance connecting to public benefits and short-term emergency financial assistance.

• Illinois requires higher education institutions, including business, technical or vocational schools, to designate at least one employee to serve as a liaison between the institution and homeless students to assist in accessing resources.
• Maryland established a Hunger-Free Campus Grant Program to connect eligible students with SNAP application assistance and local SNAP retailers.
• Oregon requires each community college and public university to hire a benefits navigator to assist students in determining eligibility and applying for federal, state and local benefits programs, and creates a statewide consortium to enable coordination and develop best practices among benefits navigators across institutions.
• California authorizes the use of funding for the Student Equity and Achievement Program for the provision of emergency student financial assistance to eligible students to overcome unforeseen financial challenges that would directly affect a student's ability to persist in their course of study.

Improving the Higher Education to Career Pipeline

States are focusing on high-value credentials that lead to future employment and upskilling—giving workers new skills to meet new workforce demands—with greater transparency around the skills and knowledge required for in-demand jobs. In this time of rapid workplace change, states are requiring postsecondary institutions to provide timely, useful information about degree options and pathways that prepare students for jobs needed in their communities.

State Examples

Ensuring that students have information about available credentials and their potential workplace value is a growing area of legislative activity.

• Connecticut requires the Office of Workforce Strategy to establish standards to designate certain credentials as “credentials of value.” These standards may include (1) meeting the workforce needs of Connecticut’s employers, (2) completion rates, (3) net cost, (4) whether the credential transfers to or stacks onto another credential of value, (5) average time to completion, and (6) types of employment opportunities and earnings available upon completion. The state’s chief workforce officer is to submit a biennial report about (1) in-demand credential and skills that lead to quality jobs, and (2) models and examples of associate degree programs that result in students earning an industry-recognized credential in twelve months that is a pathway to one or more bachelor’s degree programs.
• Michigan created the Michigan Reconnect Grant Act providing a financial aid program for residents seeking associate degrees of industry-recognized credentials that are portable and sought or accepted by multiple employers within an industry for purposes of recruitment, hiring or promotion.

Clarifying the Roadmap to a Career

With nearly 1 million unique credentials in the U.S., including diplomas, certificates, degrees, apprenticeships and licenses, it is often difficult for a student to understand the courses and programs of study or training they need to take to be prepared for their target career. Moreover, employers lack clarity about what skills workers bring to a job, and educators are challenged to keep up with changing requirements in the workplace. While 45 states have set attainment goals, most lack robust systems of information related to the credentials available within a state, including the credential program’s length and cost, competencies and job skills included in the credential, career pathway information, and earnings and employment outcomes.

State Examples

State legislators are acting to ensure that information about credentials can be easily accessed, compared, and connected to other education and workforce data.

• Arkansas created a Higher Education Consumer Guide designed for use by prospective students and parents and legal guardians of prospective students at a state-supported institution of higher education, to include retention and graduation rates; cost of tuition; average amount borrowed and loan default rate; average number of semesters for completion of an associate's or bachelor's credential at the institution; job placement of students within the first three years of graduation; and information about income of college alumni.
• Kansas enacted the Students Right To Know Act to provide information on postsecondary education options and information to each student or each student's parents regarding degree prospectus, training information program report, and other information relevant to students understanding of potential earnings.
• Kentucky requires the Council on Postsecondary Education to annually compile data on in-demand jobs within the state and for each public postsecondary instruction, and each campus of the Community and Technical College System, to compile data relating to student successes and costs, and requires the Council to develop a delivery method to ensure access to information by prospective students.

Building a Skilled Workforce through Apprenticeships and Work-based Learning

While college is a great pathway to a career, it may not be a great fit for everyone. This is evidenced by the 40% of undergraduate students who drop out – the bulk of which are college freshman dropping out before their sophomore year. For many, college can be too expensive, too stressful, too rigid, and not aligned with one’s career goals.

Hands-on learning experiences such as registered apprenticeships, internships, mentorships, etc. can be an alternative path to a well-paying career. Evidence shows that apprenticeships are an effective strategy for employers seeking skilled workers and can lead to participants earning as much as 40% more income than those not completing an apprenticeship. Additionally, because they involve a close connection with industry, work-based learning programs can focus on teaching the specific skills employers need from new workers. States can support and expand work-based learning programs to build a larger and more diverse workforce that meets the demands of the labor market.

Registered Apprenticeships

Registered Apprenticeships, specifically, are an established model of on-the-job learning where participants earn a national, industry-recognized credential while also earning an income. Registered apprenticeships must meet federal quality standards and include a mixture of classroom instruction and hands-on work for an employer. Public, non-profit and private entities can operate registered apprenticeships.

While Registered Apprenticeships have a strong track record of positive results, they also have a history of underserving women and people of color. Despite representing nearly half the labor force, in 2019 women comprised just 12.5% of all federal apprenticeships, up from 8.5% in 2016. While Black and Hispanic apprentices are proportionately represented in federal apprenticeships compared to their participation in the overall labor force, evidence shows that they are disproportionately found in lower-paying apprenticeships.

One way states can help increase participation in apprenticeship programs is to encourage new industries and sectors to embrace the apprenticeship model for developing their workforces. Apprenticeships have historically been more associated with skilled trades, however, recent efforts at the state and federal level seek to expand the model into new industries like health care, energy and technology. These actions can help create new pathways into these high-demand industries while also reaching a more diverse pool of participants.

In 2021, the U.S. Department of Labor (DOL) announced new funding to support apprenticeships that target underserved populations and specific industries disproportionately impacted by the pandemic. The sectors targeted with this new funding, include:

• Care economy sectors serving individuals, families, elderly and persons with disabilities to provide community food and housing, vocational rehabilitation services and childcare services.
• Electric power generation, transmission and distribution.
• Key supply chains including semi-conductors, advanced batteries, critical minerals and strategic materials, pharmaceuticals and active ingredients and transportation equipment manufacturing.
• Transportation and logistics operations for supply chain distribution including air, rail, water and support activities.

Additionally, DOL recently announced the new Women in Apprenticeship and Nontraditional Occupations grant program seeking to address the historic underrepresentation of women in Registered Apprenticeship programs and in high-growth, high-wage STEM occupations.

State Examples

• New Jersey enacted a suite of bills aimed at increasing workforce development opportunities.
  • SB 3064 (2018) established a task force within the State Employment and Training Commission to develop industry-specific recommendations for diversifying apprenticeship programs in the state. The bill stipulates that diversity efforts must be based on state demographics and data on historically underrepresented populations, including women, people of color and people with disabilities.
  • SB 3067 (2018) created the Apprentice Assistance and Support Services Pilot Program seeking to eliminate barriers to apprenticeship programs for populations disproportionately experiencing them. The bill provides stipends to apprentices to help offset their transportation and childcare costs. The bill grants stipend priority to workers who are underrepresented in apprenticeship programs.
  • SB 973 (2021): Establishes a peer-to-peer statewide apprenticeship mentoring program for underrepresented communities, such as women, minorities and those with disabilities.
• California's Interagency Advisory Committee on Apprenticeship advises the state’s Administrator of Apprenticeship and Chief of the Division of Apprenticeship Standards on major aspects of apprenticeship programs in nonbuilding trades industries. This includes standards, agreements, pre-apprenticeship, certification, and on-the-job training and retraining programs.
  • AB 1019 (2019) modified committee membership to include both the state’s Director of Rehabilitation and executive director of the State Council on Developmental Disabilities. The legislation also tasks the existing committee with creating a separate subcommittee to address apprenticeship opportunities for people with disabilities, and strategies for encouraging greater participation in apprenticeship programs for traditionally underrepresented segments of the labor force.
  • AB 680 (2021), also known as the California Jobs Plan Act of 2021, promotes public-private partnerships and grants that focus on workforce development for under-resourced, tribal, and low-income communities.
• Delaware established the Focus on Alternative Skills Training Program which pays tuition for students seeking a non-degree credit certificate program that provides industry-accepted skills training and certification.
• Washington makes state financial aid for higher education available to apprenticeship participants. Apprentices can also earn college credits from an apprenticeship’s classroom instruction.
• Washington also sought to expand the scope of registered apprenticeships in the state by establishing platforms for collaboration among stakeholders within various industries, including health care, engineering, education, technology, maritime and state agencies. These platforms will allow the creation of industry-specific best practices, including standards for instruction and on-the-job training as well as strategies for expanding the number of programs and participation.

Tapping Expertise of Vocational Rehabilitation

Vocational rehabilitation (VR) is a federally-supported (federal match), state administered program that provides individualized workforce development services and supports to people with disabilities, including creating individualized rehabilitation plans outlining a structured pathway to employment. These plans can include working with state and local education agencies, institutions of higher education, Medicaid agencies, mental health and developmental disabilities agencies, work-based learning programs and private sector employers to identify key employable skills and knowledge that can lead to competitive integrated employment opportunities for an individual with a disability receiving services and supports.

While VR’s primary role is providing one-on-one services and support to individuals with disabilities, federal law also requires state VR agencies to share their workforce development expertise with private sector employers other state agencies, including the state’s education system. The nature of VR’s work means that agency staff develop extensive expertise in workforce development strategies and services and supports targeted at individuals with disabilities. They also maintain vast networks of workforce development partners in the public, nonprofit and private sectors giving them an intimate perspective on the state of the labor force and employer needs.

The federal Workforce Investment and Opportunity Act (WIOA) requires states create a one-stop seamless system of delivering workforce development services, called American Job Centers. VR is a mandatory partner that must be included in this one-stop model. The purpose was to foster interagency collaboration through state-level workforce development councils to streamline public services. The councils must include a representative from a state’s VR agency.

Beyond the workforce development council, states can leverage VR expertise in numerous ways, including ensuring their state’s VR agency is represented in all state workforce task forces, working groups, committees and other workforce strategizing efforts. Additionally, states can enhance VR funding beyond the mandatory match to give them greater capacity to engage and coordinate with other state workforce agencies and programs. As states seek to spend federal infrastructure funds, VR can be a vital partner in helping states engage job seekers, including those with disabilities, to implement projects as well as help ensure projects are meeting the needs of people with disabilities.

State Examples

• Florida Jobs for Florida’s Graduates Florida’s Division of Vocational Rehabilitation partnered with Jobs for Florida’s Graduates to offer competency-based programing and provide wraparound services to eligible students with barriers to employment success.
• Massachusetts RESUMate Job Placement Specialists and Employment Services Specialists in Massachusetts can use the electronic employer account management system RESUMate to build and maintain relationships with employers at the local, regional and statewide levels in addition to using the tool to streamline the process of matching employers with groups of qualified individuals.
• Wisconsin LifeWork$ Sponsored by the North Central Wisconsin Workforce Development Board as a strategy to partner with Workforce Innovation and Opportunity Act (WIOA) funded adult education providers and vocational rehabilitation providers, LifeWork$ is a summer work-readiness program that assists adults with disabilities secure internships to increase their confidence and marketable skillset.
• Wyoming’s Partnership with Vertical Harvest Wyoming’s Division of Vocational Rehabilitation and service provider CULTIVATE partners with Vertical Harvest to develop competitive and integrated, yet customized, employment opportunities for job seekers with disabilities. This partnership is subject of the award-winning documentary "Hearts of Glass."