This year, the Federal Reserve System launched a new initiative, Investing in America's Workforce: Improving Outcomes for Workers and Employers, which seeks to reframe workforce development from the provision of social services to an important investment in our national economy. Recognizing that the United States can only reach its economic potential through strong alignment between employer needs and a skilled workforce, the Fed is leading the way through discussions with workforce leaders, philanthropy, government, and the private sector to better understand the current needs, challenges, and opportunities for America's workforce development system.

"Investing in America's Workforce: Report on Workforce Development Needs and Opportunities" shares insights from focus groups with leaders from around the country on what is needed to improve workforce outcomes and investments. Areas for investment include supporting workforce intermediaries, strengthening early childhood education, and increasing job access and job quality.

In addition, the report outlines ideas to make workforce development more investable:

  • Classify workers as assets instead of expenses
  • Offer financial products that allow organizations to increase capacity and scale
  • Use outcomes-based funding models
  • Direct philanthropic capital to promote innovation, collaboration, and capacity building.

Read the report to learn more about what strategies and investment opportunities can be used to unlock the potential of America's workforce.