Creating workforce development programs

The ‘‘skills gap’’ in the United States is serious. Here is how to do better.

“The land of opportunity”—that is the promise of the United States. And one of the reasons the country has been able to deliver on that promise is that it has been able to develop the talent it needs to create wealth and to adapt to ever-changing economic realities. But there are concerns that the United States can and should be doing better. This will require policies and actions on many fronts, for example on trade, taxation, regulation, education, and fiscal and monetary policy. In this article, we focus on a single subject: preparing people without college degrees for jobs with promising career paths. The need, for both business and society, is clear.

On the one hand, almost 40 percent of American employers say they cannot find people with the skills they need, even for entry-level jobs. Almost 60 percent complain of lack of preparation, even for entry-level jobs. On the other hand, this “skills gap” represents a massive pool of untapped talent, and it has dire consequences, including economic underperformance, social unrest, and individual despair.

The skills gap takes different forms. In some cases, it is a matter of youth struggling to enter the workforce; in others, it is midcareer learners who have lost their jobs because of factory closings or layoffs, and who now must adapt. Whatever the circumstance, when people are disconnected from the workplace, they often disconnect from other social institutions as well. This is not healthy—neither for those left out nor for the societies in which they live.

Recognizing the importance of this subject, McKinsey has done extensive research on global workforce-development programs and economic strategies.1We have also worked with a number of state, local, and national governments.