Indicator: Expenditures on workforce development programs

Definition

The amount of government funding dedicated to workforce development programs, including apprenticeships and job training programs, in a state.

Recommended Metric(s)

The amount of funding dedicated to workforce development programs as a percentage of total educational funding in a state 

Type(s) of Data Needed

Administrative data

Why it matters

Workforce development programs, such as apprenticeships and job training programs, benefit both job seekers and employers. For instance, apprenticeship programs offer valuable training and skills development for participants while providing employers with a reliable talent pipeline.1 However, workers of color and women historically have received lower-quality training and had insufficient connections to the labor market.2 Information on the level of government expenditures is critical to assessing whether states can provide high-quality workforce development programs for those who need it. The amount of state funding allocated to workforce development more than doubled between 2011 and 2020, though federal spending to support employment and training declined during this time.3

What to know about measurement

There is no central source of da4ta for federal expenditures on workforce development. The Urban Institute provides a list of federal workforce funding streams,5 including Workforce Innovation and Opportunity Act (WIOA)—which distributes funding for six core workforce programs, including training, employment, basic skills, and rehabilitation services—and Perkins V, which funds high school and college career and technical education (CTE) programs. State-level data on federal funding can be obtained from the corresponding federal agencies. For example, the National Center for Education Statistics (NCES) reports state-level allocations of federal Perkins V funds for CTE.   

At the state level, funding streams vary. However, as part of its State Economic Development Expenditures Database, the Council for Community and Economic Research collects data annually on state investments in workforce preparation and development, which it defines as “the amount states spent on education, training, and recruitment of workers with programs concentrating on improving the skills base and job placement of a state and/or community’s labor base” (this includes training, apprenticeships, and “other” workforce development programs).6 States may provide workforce development funding through multiple agencies, including the state department of labor and/or economic development, state education agency, state higher education office, and community and/or technical college system.7

Source frameworks

This indicator appeared in three source frameworks reviewed for this report, including the Center for Law and Social Policy (CLASP) Framework for Career Pathways Innovation,  which recommends measuring the “funding level for career pathways or bridge programs.”

References