Why Workforce Development Funding is More Important Now Than Ever

With 87% of companies globally reporting they’re experiencing skills gaps now or anticipate they will in the next 5 years, a transformational shift is taking place toward a skills economy, in which the skills our individuals and organizations need are taking center stage.¹ Rather than thinking in the traditional terms of people and jobs, companies and employees need to focus on “talent agility” – the precise tasks that need to be carried out and the skills needed to perform them. This requires developing a clear understanding of the skills they have and the ones they need and taking actions to build a culture of lifelong learning and skills development.

Here at DeVry University, our team of DeVryWorks consultants work with employers and their leadership teams to assess the skills needed for talent development and succession planning and develop learning pathways.  That’s where workforce development gets personal – meeting an individual’s ambition and career goals.

Workforce needs at times converge with national priorities. We’re experiencing one of those times right now. After decades of outsourcing semiconductor manufacturing to Asia, the push to bring that manufacturing back here to the United States is well under way, thanks to the CHIPS and Science Act of 2022.² This, on top of the existing skills gap in technologies like cyber security, creates tremendous opportunities for career-minded job seekers and prospective employers alike. Federally funded programs like the CHIPS Act create a win-win for employer organizations and the employee learners who add value to them.

Intel’s $20 billion investment in a regional chipmaking cluster in Ohio is a good example of record-breaking private-sector investment in domestic technology manufacturing. Intel expects to create 3,000 new jobs and support another 10,000 through suppliers and supporting industries. By achieving end-to-end design, manufacturing and packaging capabilities here in the United States, manufacturers like Intel will be helping the U.S. Department of Defense make a transition to commercial foundries while protecting national security.   

Our partners at Microchip Technology, a semiconductor manufacturer based in Arizona, are another example. Microchip teamed up with DeVry to augment their already successful internal skills training programs available to more than 20,000 employees. To fill talent gaps, particularly at the technician level, Microchip offers formal academic certificate programs utilizing resources from its tuition benefits program and covers outstanding costs to the employee through the DeVryWorks Completion Grant³ , for qualifying employees. Anticipating a boost from the grant programs associated with the CHIPS Act, the company plans to expand its partnership with DeVry as they continue to build their culture of learning and skills development.

In my view, the cyber security sector provides the best example of the severity of the technology skills gap. According to the non-profit group ISC2, the global cyber security workforce grew by 8.7% in 2023.⁴ While this impressive growth spurt was the highest the group had ever recorded, the cyber security workforce gap also widened, to a record-breaking divide of some 4 million professionals needed to safeguard data systems and assets.

ISC2 notes that 92% of cyber security professionals reported skills gaps in their organizations, and the top 3 disparities were in cloud computing security, artificial intelligence/machine learning and zero-trust implementation.⁴

A variety of sources can be tapped to fund workforce development programs. These include government grants, private foundations and major corporations. Here at DeVry, our DeVryWorks team considers each of these as they help to connect employers with the funding they need to acquire, upskill and reskill talent while minimizing the financial impact on them and their employee learners. 

A major source of workforce funding is the federal government, which has ramped up funding to support several federal initiatives.

In September 2023, the U.S. Department of Labor announced the award of nearly $94 million in grants to support public-private partnerships providing training programs in 25 states and the District of Columbia.⁵ Workforce grant programs are designed to develop and grow training and work-based learning opportunities that prepare job seekers for career pathways that have the greatest demand for talent in their market.  Currently, industries such as advanced manufacturing, information technology, cybersecurity and other professional and technical occupations lead the way with the most job openings spurred by ongoing technological advances.

Designed to help job seekers access services and match employers with skilled workers, the Workforce Innovation and Opportunity Act (WIOA), was signed into law in 2014.⁶ WIOA requires states to create comprehensive workforce development plans that incorporate the unique needs of job seekers and the evolving needs of local employers through programs that have greater alignment than previous initiatives.

The U.S. Department of Labor’s Employment and Training Administration (ETA) provides resources, guidelines and updates related to WIOA. On the ETA website, employers can search and apply for current grant funding opportunities.

Each state’s workforce development agency or equivalent can offer detailed information on how WIOA is implemented at the state and local levels. The National Association of Workforce Boards provides information and resources on the role workforce boards play in implementing WIOA.  

With a belief in the transformational impact workforce development can have on individuals, families and communities, private foundations like the Annie E. Casey Foundation, Lumina, U.S. Chamber of Commerce and others provide funding as well. Among other goals, they want to address three major workforce challenges: