There has been no time in history that human capital has been more important to economic vitality. In most Northwest metropolitan areas and many smaller communities, tight labor markets are emerging in the sectors that demand skilled labor. Estimates by the Bureau of Labor Statistics are that those labor markets will get even tighter going forward.

A major contributor to this trend is the growing retirements of the baby boom generation which has brought a decline in market participation rates. Despite the current economic recession, and with white and blue color outsourcing; increased immigration; returns to employment by senior citizens; and productivity gains brought by technology, economists predict a growing labor shortage over the next decades

When labor markets are tight, employers work harder to prepare, hire and sustain employees and to address issues such the difficulties finding adequate child care. The needs and interests of employers elevates human capital strategies in general and career pathway strategies in particular. Unfortunately, the states of the Northwest area do not have the policies in place to take advantage of these opportunities.

“Career pathways” refers to the combination of strategies that help a low income worker gain the skills for an entry level position that will be the first step to an established career path, and then get the education and training necessary to achieve higher paying jobs along that path. States increase pathways and improve economic circumstances of families and communities by:

• Increasing ties to companies, their associations, and economic developers who help develop pathways and are bent on decreasing skill gaps between worker supply and employer demand.
• Improving access to education and the capacity of educational institutions, especially community and technical colleges.
• Strengthening workforce intermediaries that link the worker with the employer and which often help provide the worker to gain access to needed income and work supports.
• Providing financial support for some of the semi-public pathways being developed, such as those for health care, day care workers, and home health care workers.

STEP is interested in determining gaps in existing career pathway policies in these eight states, and beginning to pursue all new approaches to making these states among the best in the country in pursuit of effective pathways. State policies focused on English language learning have already been identified as an area in need of attention. Career pathways will also promote the greatest success as part of a coordinated system that attends to the needs of the worker who can participate in the range of public support programs as they move up the income ladder.