Workforce study calls for federal legislation to boost labor force participation

As U.S. labor force participation still lags behind pre-pandemic levels and many employers struggle to fill open jobs, an industry report from labor law firm Littler Mendelson P.C. is calling for federal legislation to enable a four-point plan to build a larger workforce for years to come.

The report analyzes factors contributing to ongoing labor shortages, including the growing “skills gap,” and the industry sectors that have been most impacted, according to “The American Workforce Transformation – Challenges and Opportunities.” The study was created by Littler’s Workplace Policy Institute (WPI), the government relations and public policy arm of Littler, which calls itself the world’s largest employment and labor law practice representing management. 

According to the report, the four sectors most impacted by the labor shortage and job churn include healthcare, food services, manufacturing, and retail. The report cited statistics showing that more than 60% of chain restaurants said they are understaffed, 63% of retail companies said they were operating with a frontline employee deficit, and more than 74% of manufacturers said their inability to attract and retain employees is their primary challenge.

The report provides several recommended policy proposals to address the skills gap and facilitate future job growth, including:

• Modernizing federal labor market reporting data: A critical first step in leveraging AI and advanced technologies to support a skills-based approach to employment is providing accurate and accessible data in real-time to job seekers and employers.

• Reauthorizing the Workforce Innovation and Opportunity Act (WIOA): Given that WIOA is the nation’s primary workforce development law and its reauthorization ended in 2020, it is imperative that the law be reauthorized and reformed to reflect technological advances in the workplace and other changes. 

• Diversifying and Expanding the National Apprenticeship System: Registered Apprenticeship Programs administered by the U.S. Department of Labor have a long and successful history in the skilled trades. To expand beyond these traditional fields, the Department can partner with other key industries and sectors of the economy to meet employer demand.

• Considering short-term federal Pell grants for job-training programs: Expanding Pell grants to include short-term job training and workforce programs would greatly enhance the nation’s ability to provide career pathways to workers and allow employers to recruit qualified talent.

“As the American workforce changes, we need legislation at the federal level – starting with modernizing federal labor market reporting data – to meet the current and future demands of the market,” Shannon Meade, executive director of WPI and one of the report’s authors, said in a release. “Employers, lawmakers and educators depend on accurate data to identify economy-wide trends in emerging roles and industries, along with the skills needed for in-demand jobs, and to best allocate resources for future employment needs.”