Workforce development key component of economic development

*First appeared in the October 31 edition of the Laurel Chronicle.

This week I attended a workforce development conference hosted by the Federal Reserve Banks of Atlanta and St. Louis, the Mississippi Manufacturers Association, and other statewide partners. The event reminded us that, as MMA president and CEO Jay Moon said, workforce development remains a critical element of successful economic development.

Here are a few more observations from the event.

Panelists at the conference included representation from multiple states and a mix of the public and private sector, and conference attendees represented business and industry; education; and workforce agency stakeholders.

Throughout the day, much discussion centered around “soft” skills. That’s industry speak for things parents used to teach their kids – how to dress for work, how to have a good attitude, punctuality, and motivation to do a good job. Believe it or not, states are spending millions of dollars each year to teach workers these types of skills. Employers are clamoring to find workers who exhibit “conscientiousness” (as one panelist put it). To paraphrase another speaker, employers want a motivated workforce even more than a trained workforce.

As I’ve said before, when the family unit fails our kids, the government tends to step in. Ideally, parents – not training providers – would teach their children these very basic life skills.

Nicole Smith, senior economist at Georgetown University, raised the issue about Mississippi’s “brain drain,” noting our state is a net exporter of college graduates. In essence, we are training young workers to go somewhere else. This is particularly troubling in a state that already suffers from a historically low labor force participation rate (the number of people who are either working or looking for a job). This measure certainly won’t improve if our future workers catch the next train out of town.

Representatives from the construction and defense industries stressed that workforce policy should embrace all career and education pathways – both those which require a four-year degree and those that require a technical degree or certification. The earning potential of non-university careers was explored, with economist Smith noting that a bachelor’s degree in education typically pays much less than a two-year certification in an engineering-related field. (Students: Y’all take that to heart.)

Mike Beatty, president and CEO of the Great Promise Partnership, discussed a Georgia dual enrollment program targeting at-risk youth. The public-private partnership combines traditional classroom education with a job working about 20 hours a week as long the student maintains certain grades and behavior requirements. This program provides real-life work experience – such as those soft skills I mentioned earlier – and demonstrates the value and reward of hard work. It has helped turn the tides for at least 600 Georgia teens since the program’s inception and could be a model for similar Mississippi efforts.

Mark Henry, head of Mississippi’s workforce agency (the Department of Employment Security), is currently serving as president of the National Association of State Workforce Agencies. In this role, he is advocating Congress give states maximum flexibility on federal workforce dollars. Amen to that, brother.

Conference attendees broke into small groups, with each group producing a single idea for further study by Mississippi workforce officials. These ideas ran the gamut: Emphasizing the value of work to youth; developing a single workforce development brand for the state; renewing our focus on entrepreneurship; understanding and overcoming the barriers faced by felons re-entering the workforce; unifying the education system; and developing workforce academies and ensuring courses taught by community and junior colleges meet employer needs.

These topics aren’t new, but they continue to be challenges faced by Mississippi as we look to improve our workforce delivery system. I suspect these issues will continue, at least in the foreseeable future, to dominate discussions on how to move Mississippi forward, since successful workforce development breeds successful economic development.

Economic development is, after all, the art of attracting new business and industry to a city, county, state, or region. While competitive tax structures, financial incentives, and other bells and whistles are important, a company won’t locate its next facility in an area without qualified workers.