Proposed Act Supports Career And Technical Education Programs

On July 25, 2018, the House of Representatives sent the Strengthening Career and Technical Education for the 21st Century Act (H.R. 2353) to President Donald Trump’s desk for his signature. It reauthorizes the Carl D. Perkins Career and Technical Education Act, which since 1984, has provided federal support to state and local career and technical education, or CTE, programs. The legislation approves $1.3 billion annually for CTE programs across the country.

President Trump has pushed for the bipartisan legislation designed to help more Americans — especially young Americans — enter the workforce with the knowledge and skills they need to compete for good-paying, in-demand jobs in industries critical to the nation’s economy. The Perkins Act provides a useful policy framework for CTE programs, but it had not been updated since 2006 and no longer reflected the realities and challenges facing students and workers.

In several important areas, the legislation seeks to improve CTE programs. First, it empowers state and community leaders by simplifying the application process for states and localities seeking funding for CTE programs. Second, it seeks to build better community partnerships encouraging stronger engagement with employers. Third, it increases transparency and accountability by streamlining performance measurements for CTE programs. And fourth, it limits federal intervention in the operation of CTE programs.

Under the legislation, the U.S. Department of Education’s role in setting standards for CTE programs is reduced. State agencies will be allowed to establish performance criteria for CTE programs without consulting with the federal Department of Education. Currently, state agencies work collaboratively with the Department of Education to set performance criteria. 

The Department of Education can still reduce grant funding for CTE programs that fail to meet certain perform criteria in two consecutive years. Typical criteria include percentage of individuals earning industry certifications and high school graduation rates.

CTE programs at their best are a successful collaboration between the federal government and state and local governments, and help prepare high school and community college students with the knowledge and hands-on experience necessary for jobs in a broad range of industries. The federal government helps provide policy direction while state and local entities provide the infrastructure and pay operating expenses such as instructor salaries.

Even with increased federal support for CTE programs, solutions must be tailored to meet the needs of specific industries. Businesses should keep in mind that workforce development programs that work in one industry or region might not be well-suited to another industry or region. The renewed federal focus on CTE programs comes at a time of low national unemployment. 

For the first time since the federal government began tracking the data in 2000, in March and April 2018, the number of job openings exceeded the number of job seekers. Although this statistic illustrates the strength of the U.S. economy, it also presents challenges to employers, including building service contractors, in finding job candidates with the right qualifications to fill available positions. Simply put, there is a growing “skills gap” between the skills eligible employees have and the skills that employers require.

The employment outlook provides an interesting public policy challenge for lawmakers. Labor force participation is near a record low and the unemployment rate stands at 4 percent. Moreover, as the retirement of baby boomers continues, it is likely that the skills gap will get worse before it gets better, as many skilled workers reach retirement age. The prospect of a long-term skills gap is a headwind for the economy and threatens the nation’s economic future.

As the gap between the number of jobs posted and the number of people hired grows, policymakers must continue to find ways to help individuals gain the knowledge and skills needed to compete for in-demand jobs. 

Companies can address the skills gap in part by evaluating their employee retention policies as well as their recruitment practices. Worker training should be part of recruitment and retention policies and can be a competitive advantage for businesses. That can help mitigate some of the challenges posed by the current labor shortage.

BSCAI’s government affairs staff has closely followed the ongoing workforce development debate as more and more businesses cite the challenges in finding skilled workers. Although it is not a panacea, reauthorizing the Perkins Act should provide additional postsecondary pathways to individuals just entering the workforce, and give experienced workers new skills needed to meet the needs of employers.