JPMorgan: The biggest national security threat may be America's workforce
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America has a talent shortage, with 40% of adults lacking basic digital skills, says a new report from JPMorganChase that bolsters the bank's recently announced $1.5 trillion U.S. investment initiative.
Why it matters: The report frames the workforce shortage as a national security threat, not just an economic issue, arguing that funding for vital industries like AI and energy won't move the needle without a talent pipeline.
What they're saying: "Today's skills gap is a critical national security issue, and the public and private sectors need to come together to drive solutions forward," says Tim Berry, global head of corporate responsibility and chairman of the Mid-Atlantic region at JPMorgan.
- "The U.S. can allocate funds... but without sufficient talent, execution will fall short," the report from the PolicyCenter and Center for Geopolitics notes.
Between the lines: The report is a call-to-action for private and public industries to prioritize re-skilling and training, all the more critical amid the dispersion of AI, which is disrupting every industry.
State of play: The federal government has been pushing for policies aimed at addressing shortfalls in energy, manufacturing, semiconductors and more.
- President Biden sought a major industrial build-out through the CHIPS Act and the Inflation Reduction Act.
- The Trump administration is doubling down on traditional manufacturing roles and encouraging private companies to invest in domestic infrastructure.
Yes, but: The report argues that federal and local policies need to address the labor portion of the problem more directly.
- The administration has begun initiatives on paid apprenticeships, earn-and-learn opportunities and expanded workforce Pell Grants to help low-income students access training.
By the numbers: Workforce shortages can be found across a number of industries critical to U.S. security and resilience, including the four areas JPMorgan is investing in through its $1.5 trillion initiative.
- Defense: 46% of U.S. defense industrial base leaders surveyed cited an inability to recruit, train and retain skilled manufacturing workers.
- Semiconductors: Multi-billion-dollar fabs are coming online faster than companies can hire technicians to run them, with 3.8 million additional workers needed and almost half of those jobs potentially going unfilled by 2033.
- Energy: Grid modernization and electrification projects are stalling without enough electricians and line workers, with near-term demand for roughly 200,000 workers.
- AI: Workforce technology requirements are estimated to grow at twice the rate of overall workforce requirements.
The bottom line: It's about the workers, stupid.
- The U.S. can spend big on materials and technology, but without a scalable, capable workforce, those investments risk stalling before they ever materialize.
