RICHMOND TIMES-DISPATCH

October 15, 2024

KATHY HOLLINGER AND NORA GARDNER

Our region, which spans the corridor through Baltimore, Washington, D.C., and Richmond, is a vibrant economic hub in an enviable position. From 2020- 2023, we witnessed the creation of 300,000 new jobs, a testament to our region’s resilience. According to recent data, projections show that this figure could double by 2030, further strengthening our status as a leading economic engine.

There is one pressing challenge on this current trajectory: the skills gap. Our region’s leading employers face a critical shortfall of skilled workers capable of filling future job opportunities. Without strategic intervention to cultivate essential skillsets within our local workforce, these positions risk going to other regions.

This skills shortage is particularly acute in three sectors with strong demand growth: health care, tech and AI; and advanced industries, like manufacturing and green jobs. In 2023, many key growth occupations in these sectors — such as health care practitioners, computer/tech professionals and
engineers/architects — had more than 70% of job ads unfilled each month.

How do we find a solution to fill these open jobs? Our region already has higher-than- average levels of labor force participation (approximately 70% vs. 63% nationally). We could try to attract more people to work here, and we are. But higher levels of outmigration since the pandemic have kept our population growth essentially flat. Even if we could retain all those people, that alone likely wouldn’t solve the talent shortage.

The missing ingredient is skills — specifically, ensuring that job seekers possess the necessary skills for our fastest-growing occupations. They may be “hard” skills like specialized training and technical expertise, or so-called “cross-cutting skills” that are widely applicable like interpersonal, leadership or critical thinking skills.

Unlocking the next level of regional growth hinges on closing these key skills gaps.

Take the health care sector, which is one of the top growth engines of our local economy. In 2023, 29% of regional health care roles (50,000 postings) required nursing and patient care skills — such as home care, patient counseling and care coordination. However, only 8% (40,000) of online health care profiles in the region listed these skills, and most of those individuals are already employed.

Across the region, we observe a similar dynamic in other high-demand sectors. For instance, in the tech and AI space, there are notable gaps in fundamental computer science and cybersecurity skills. Furthermore, advanced industries also face significant skills gaps, particularly in logistics, manufacturing technology, and specialized construction trades.

Demand for AI and machine learning skills in our region doubled over the last four years with more than 15,000 job postings requiring these skills today but fewer than 13,000 people who have the required skills. This becomes an even more difficult obstacle if a security clearance is necessary or if a federal contract mandates that individuals must hold a bachelor’s degree.

Unlocking further growth will require a sharper understanding of the skill gaps in our region and a plan to engage a wide range of influential stakeholders. We recommend a few steps to get started.

First, employers need to continue investing in transparent and universal methods to forecast and share the specific skills they need with educators and other training providers. This includes collaborating across sectors to support programs that equip learners with these skills. The Greater Washington Partnership is working to solve these challenges with our Employer Signaling System, which creates an efficient way for employers to call out the skills they need before wide gaps emerge and help close gaps that do exist.

Second, more employers need to take a skills-based mindset when hiring and developing talent. This means not only hiring for actual skills rather than just standard credentials (like a postsecondary degree) — but also promoting skills-based education, reskilling, and ongoing learning. Removing some of these artificial barriers should also increase racial equity and access to in-demand jobs, which expands the talent pipeline.

Third, we need to raise awareness of formal skills training options for both industry- specific and cross-cutting skills. Students need early exposure to technical roles — why not start in middle school? Mid-career and older workers need more help identifying the training and credentials that will lead to good jobs. Improving and funding internships, apprenticeships, and other work-based learning would greatly support this effort.

To sustain and enhance our region’s economic growth, we must invest in our most valuable asset — our people. By focusing on skill development and creating opportunities for lifelong learning, we can unlock the full potential of the super region.

 


Read the op-ed in the Richmond Times-Dispatch here.