WIOA Research Portfolio: A Scan of Key Trends in the Labor Market and Workforce Development System

This scan focuses on four subject areas: 1) broad economic trends and recent changes in employment and wages; 2) changes to industries and occupations due to technology, automation, and the rise of the gig economy; 3) growth in remote workforce system services; and 4) federal policy trends related to the public workforce system.

• Broad Economic Trends and Changes. Examples of the observations noted by the researchers include: 1) Pre-pandemic projections of employment trends by industry included expectations for growth in most service-providing sectors, some goods-producing sectors, and job losses in the manufacturing sector; 2) Increases in unemployment rates for populations with employment challenges were higher during the pandemic than for workers without those barriers; and 3) The overall slow growth in wages masks significant variations in wages and income across occupations and industries as well as by race, ethnicity, and gender.
• Changes to Industries and Occupations due to Technology, Automation, and the Rise of the Gig Economy. Examples of the observations noted by the researchers include: 1) Technological change and automation contribute to both creating and eliminating jobs; 2) Remote work has increased dramatically in the short-term due to the pandemic; and 3) Gig work has become more visible as a category of employment since the early 2000s, but data on its growth is unclear.
• Growth in Remote Workforce Systems Services. Examples of the observations noted by the researchers include: 1) Despite the abundance of online services focused on job search assistance, the Title I core programs have until recently continued to require participants to visit AJCs in person for many services; 2) The pandemic and related closure orders have greatly accelerated the trend toward increased use of remote service delivery; and 3) The spread of broadband technology has facilitated the growth of online education, and the pandemic has further accelerated its use.
• Federal Policy Trends Related to the Public Workforce System. Examples of the observations noted by the researchers include: 1) Several recent notices and guidance letters have encouraged and prioritized integrated service delivery; and 2) Accountability has long been a key trend in federal workforce policy and is a major focus of WIOA.

(This report is 31 pages long.)

The researchers identified the following findings:

• Unemployment rates, labor participation rates, and projections for employment by industry have recently changed due to the COVID-19 pandemic’s economic fallout.
• Advancements in technology, particularly those related to automation, were already inducing changes in the skills demanded in the labor market. Those changes have accelerated since the pandemic began, affecting how every industry and workforce system prepares workers for present and future jobs.
• The pandemic necessitated the acceleration and expansion of remote and virtual workforce services.
• Recent federal policy efforts have promoted more integrated service delivery and greater accountability and supported workers and employers in their recovery from the effects of the pandemic.

Selected researcher recommendations for the public workforce system follow:

• Workforce system staff members need access to high-quality and up-to-date information about labor market shifts.
• Due to the recent massive increases in unemployment (both temporary layoffs combined with long-term unemployed workers), the workforce system needs to develop effective strategies for serving much larger numbers of dislocated workers with particular needs than it has recently.
• Employers will need services from the public workforce system to help them fill jobs with skilled workers, especially if the labor market does not adequately supply the skills employers demand.
• The workforce system needs to create and modify training programs as industries change to train workers in the skills required within the labor market.
• To ensure that workers continue to find and secure jobs successfully, the workforce system needs to expand the use of technology and tools for remote job search, recruitment, and hiring.
• Effective supports for less-prepared online learners, including many individuals facing barriers to employment, will likely be necessary for this population to benefit from the increased convenience of online learning.
• To ensure that employers and job seekers—including those facing barriers to employment—can access the services they need for labor market and economic success, partnerships across different workforce programs and funding streams are critical.

• Last Updated:
• Created:
• Resource Publication Date: 2021
• Author(s): Mack, M.; Dunham, K.
• Funding Source: U.S. Department of Labor, Employment and Training Administration
• Resource Availability: Publicly available
• Posted by: Justin Venneri
• Posted in: Workforce System Strategies