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Rethinking the workforce development ecosystem
Article

Rethinking the workforce development ecosystem

Grow the economy by bridging the skills gap

Deloitte, 2023


Editorial Rating

8

Qualities

  • Analytical
  • Visionary
  • Concrete Examples

Recommendation

Programs aimed at helping individual workers upskill can’t, in and of themselves, bridge America’s yawning skills gap. A collaborative workforce development ecosystem is necessary to meet employer and worker needs. Deloitte researchers John O’Leary, Nicole Overley and Amrita Datar unpack how, by working in sync, critical players in workforce development – from educators to employers – can reshape the labor market and boost the economy. They lay out the “ABCs” or central characteristics of a healthy workforce development ecosystem, then offer five strategies for fostering this ecosystem.

Summary

Enhancing collaboration within the workforce development ecosystem is essential to address skill gaps and foster economic growth.

Today, nearly 75% of employers report having trouble finding the skilled workforce they need to accomplish their goals and succeed. Workers aren’t doing much better: 46% of American employees are grappling with underemployment or a mismatch between their skills and roles.

Focusing primarily on individual upskilling programs will not solve these dilemmas. Policymakers should work to enhance collaboration between the various players within the dynamic workforce development ecosystem: educational institutions, employers, policy-makers, training providers and job seekers.

An effective workforce development ecosystem has three main characteristics.

People sometimes consider workforce development a “process”: a planned-out, repeatable system wherein all participants work together to achieve a shared, predetermined goal. True workforce development is more like an ecosystem: Diverse participants...

About the Authors

John O’Leary is a senior manager with Deloitte Services LP, Nicole Overley is a senior manager with Deloitte Consulting’s Human Capital practice and Amrita Datar is a research manager at the Center for Government Insights.


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