The federal budget cuts currently being negotiated, which include major cuts to employment counseling and training, don't take into consideration the multiple dividends taxpayers receive from investing in getting people back to work.
Investing in workforce programs provides payback in multiple ways as people entering or returning to the work force resume paying taxes and stop receiving unemployment benefits. And, according to research, those out of work have more health problems and raise children who receive less education, leading to employment issues in the next generation.
Despite rumors to the contrary, people are getting jobs in today's economy. At RESOURCE, we see firsthand the benefits of employment counseling and training. According to a recent report by the State of Minnesota on dislocated worker projects, our Employment Action Center helped more than 88 percent of participants obtain a job, more than 95 percent maintain a job, and the median wage for participants is over $23,200.
Most other government-funded programs are getting similar results. Yet in the budget agreement lawmakers made in early April, Congress chose to substantially reduce the nation's ability to help unemployed people obtain skills and get back to work. This cuts more than $1 billion from key job training and education programs.
Bill would slash $60 billion for job training
The U.S. House of Representatives' proposed 2012 budget bill would slash nearly 60 times that amount – $60 billion in funding for job-training programs over the next decade, including funding to the Workforce Investment Act (WIA), which provides work-force preparation to meet the needs of both businesses and those on the job hunt. The WIA provides funding for work-force training programs, including adult education and literacy programs, vocational education, and vocational rehabilitation for people with disabilities.
These decisions are being made while our unemployment rates remain stubbornly high – with 30 percent of unemployed people having lost their jobs more than one year ago. Congress must have forgotten about the "Great Recession." Its members must have forgotten that our businesses need a well-trained work force to compete in the global economy, especially as our existing workforce starts to dwindle.
Work-force shortage on the horizon
And these reductions are being seriously considered while our work force is graying, and we anticipate a serious work-force shortage in a mere five years. The oldest members of the baby-boom generation began reaching 60 years of age at the end of 2006, with more of the 76 million people born between 1946 and 1964 moving into their early 60s each year.
While these citizens move toward retirement, we are not producing enough trained employees to fill the void that they are creating. In fact, we will fall short of the nation's needs by 3 million workers in 2018, as 63 percent of all jobs will require at least some postsecondary education.
Additionally, there are more long-term unemployed Americans today than in previous recessions, as old job skills no longer match the requirements of current positions. Those out of work the longest have the most difficult time getting back into the work force.
Let us now remind members of Congress that although it is true that we need to find budget cuts, they shouldn't come from employment assistance programs, as they offer multiple returns on our investment.
Deborah Atterberry, president of RESOURCE, a nonprofit providing services to help over 20,000 people per year overcome challenges related to employment, chemical dependency, mental illness and disabilities, is a member of Hennepin-Carver Workforce Investment Board. She can be reached at datterberry@resource-mn.org.
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Comments (1)
RESOURCE should be lauded for its fine work.
However these forecasts of worker shortages have been around for a decade or more. But like mirages they keep receding before us.