Resources

Find answers below to some commonly asked questions about workforce development finance. This list is not comprehensive, but we hope this is a useful starting point for an exploration of workforce development finance.

How is workforce development funded currently?

Workforce development is a patchwork of programs and interventions coming from public, private, philanthropic, and individual investments. The papers below cover many of the current government investments in workforce development.

"Strategy and Capacity of Public Workforce Systems," by Richard A. Hobbie (John J. Heldrich Center for Workforce Development), Investing in America's Workforce

"Results and Returns from Public Investments in Employment and Training," by Demetra Nightingale and Lauren Eyster (Urban Institute), Investing in America's Workforce

The Future of the Public Workforce System in a Time of Dwindling Resources, by Stephen A. Wandner (Urban Institute and W.E. Upjohn Institute for Employment Research), Transforming U.S. Workforce Development Policies for the 21st Century

"Reimagining Workforce Policy in the United States," by Larry Good and Ed Strong (Corporation for a Skilled Workforce), Transforming U.S. Workforce Development Policies for the 21st Century

"The U.S. Approach to Higher Education and Workforce Development: Separate Parts in Search of a Whole," by Harry J. Holzer (Georgetown University and American Institute for Research), Transforming U.S. Workforce Development Policies for the 21st Century

"Financing Workforce Development in a Devolutionary Era," by Stuart Andreason (Federal Reserve Bank of Atlanta), Community and Economic Development Department Discussion Paper 2016-2

How can innovative finance support scaling and improving workforce development?

In recent years, there has been growing interest in finding ways to use new and innovative strategies to increase investment in workforce development to drive programs to scale and improve outcomes for workers and businesses. These models can range from different contracting strategies to complex financial deals.

"Financing Workforce Development in a Devolutionary Era," by Stuart Andreason (Federal Reserve Bank of Atlanta), Community and Economic Development Department Discussion Paper 2016-2

"Rebalancing the Risk: Innovation in Funding Human Capital Development," by Heath Prince (Ray Marshall Center for the Study of Human Resources), Investing in America's Workforce

"Outcomes-Oriented Contracting: Unlocking Economic Opportunity for Low-Income Communities," by Celeste Richie (Results for America), Investing in America's Workforce

"Improving Workforce Outcomes with Pay for Success," by Nirav Shah (Social Finance), Investing in America's Workforce

"Financing Human Capital through Income-Contingent Agreements," by Miguel Palacios (University of Calgary), Investing in America's Workforce

"Pay for Success: How Emerging Finance Tools Are Supporting Workforce Development," by Jeanne Milliken Bonds (Federal Reserve Bank of Richmond)

"Basic Food Employment and Training: How Washington State Brought to Scale Skills Training for Its Food Stamp Population," by David Kaz (Seattle Jobs Initiative), Transforming U.S. Workforce Development Policies for the 21st Century

How are philanthropies engaged in workforce development?

Philanthropy is an important funder of workforce development. The Investing in America's Workforce chapter below details some trends in philanthropic funding in workforce development.

"Nimble Capital for an Agile Workforce," by Keith Wardrip (Federal Reserve Bank of Philadelphia) and Mels de Zeeuw (Federal Reserve Bank of Atlanta), Investing in America's Workforce

How do community development financial institutions (CDFIs) support workforce development?

CDFIs are an important source of capital and expertise to advance community development. They help create economic opportunity and build assets. In addition to potentially being a source of funding, CDFIs can play an important consultative role to workforce development organizations.

"How CDFIs Promote Job Quality and Reduce Income Inequality," by Donna Fabiani (Opportunity Finance Network), Investing in America's Workforce

How can financial institutions partner to support workforce development?

Financial institutions are often partners in workforce development efforts. Information on how to engage in workforce partnerships with financial institutions can be seen in the resources below.

"Partnering with Banks in Workforce Development," by Elizabeth Sobel Blum (Federal Reserve Bank of Dallas) and Steve Shepelwich (Federal Reserve Bank of Kansas City), Investing in America's Workforce

"Engaging Workforce Development: A Framework for Meeting CRA Obligations," by Elizabeth Sobel Blum (Federal Reserve Bank of Dallas) and Steve Shepelwich (Federal Reserve Bank of Kansas City)