Since the Great Recession, workers and employers have faced a growing skills gap in the labor market. For the southern United States, this new environment requires a shift from an economy once built on low-skill industries to one where applicants compete for jobs that require training beyond a high school diploma. Most of these jobs are middle-skill jobs, requiring education or training beyond high school but not a four-year college degree. Throughout the South, there are currently not enough workers trained to fill these jobs. The skills gap hurts southern states because the lack of skilled workers makes it challenging to attract and retain new businesses. The gap also hurts low-wealth and low-skilled workers who are not able to advance within their careers and move into middle-skill jobs that offer fair wages and good benefits.

Funders and grantmakers that support workforce development can help bridge this skills gap by working with businesses and workforce intermediaries to educate and train more of the region's adults, addressing people's barriers to work, and in creating good quality jobs and wealth-building opportunities.