Three out of four U.S. companies in AI, cybersecurity and advanced manufacturing report that they struggle to find qualified talent.

Why it's important: There's an urgent need to strengthen the talent pipeline for these industries as labor shortages grow. Without a strong talent pipeline, the country risks falling behind on AI innovation, energy independence and more.

Get up to date: JPMorganChase recently launched a $1.5 trillion, 10-year Security and Resiliency Initiative to bolster industries critical to the nation's economic security and resiliency.

• The firm will invest up to $10 billion in direct equity and venture capital to help primarily U.S.-based companies expand, innovate and accelerate strategic manufacturing.
• Focus areas include supply chain and manufacturing, defense and aerospace, energy independence and resilience, and frontier and strategic technologies.

The landscape: Demand for tech and skilled trades workers is exploding — but education and training pipelines lag.

• The U.S. technology workforce is estimated to grow at twice the rate of the overall U.S. workforce in the next decade. Meanwhile, 40% of adults lack basic digital skills.
• In manufacturing, the U.S. will need an estimated 3.8 million new employees between 2023 and 2033. But half of those jobs could go unfilled.

A challenge: The lack of available training for workers already in these industries is only amplifying this skills mismatch.

• For example, energy-related apprenticeships need to increase 44% to support an estimated 200,000 new workers needed for energy transmission and distribution.

How it's done: Policy — both at the federal and state levels — will play a central role in addressing these workforce shortages in critical industries.

Federal policy recommendations

JPMorganChase recommends federal policymakers focus on advancing policies that…

✅ Strengthen and scale apprenticeships.

Simplifying and streamlining the registration process for registered apprenticeship programs will help incentivize employee participation.

• Standards for these programs can also be modernized to recognize different industry approaches to skilling — without sacrificing quality.

✅ Support employer-based training programs.

Policymakers can reauthorize the Workforce Innovation and Opportunity Act (WIOA), which would increase funding to support incumbent worker training and on-the-job learning.

✅ Advance industry partnerships.

Encourage partnerships that bring together multiple employers with education, training, labor and community providers to build programs that meet industry needs.

✅ Support public-private partnerships.

Incentivize higher education institutions to partner with industry to develop programs that allow students to gain college credits — while training for in-demand jobs.

✅ Address the digital skills divide.

Amend WIOA to incentivize states and local workforce boards to expand the availability of digital literacy programs and update the definition of basic skills deficiency to include digital literacy.

State policy recommendations

State policymakers can strengthen career pathways aligned to industries critical to U.S. security and resilience by advancing policies that…

✅ Expand access to work-based learning.

Establish and support intermediaries at the state, regional or local level to connect employers and educators to create more opportunities for learners.

• An example: Iowa established the Intermediary Network, which helped coordinate work-based learning experiences for more than 92,000 students in 2022.

✅ Leverage employer partnerships.

Encourage employers to participate in the design and execution of education and training programs — as well as setting credential standards — to ensure workers are developing skills aligned to in-demand industries.

• An example: Washington state's Core Plus program partners with the private sector to provide students hands-on learning and transferable skills. The program is in 25 high schools across the state, and local employers have recruited students from these schools.

✅ Advance data-driven decision-making.

Improving state and local data systems can help connect career pathways to in-demand careers, measure student and worker outcomes, and better allocate resources.

• An example: Texas used insights from data systems to adjust its community college funding formula in 2023. Now, funding is awarded to schools based on their ability to achieve positive student outcomes.

Looking ahead: JPMorganChase will continue to work with policymakers to identify more strategies to strengthen the workforce critical to U.S. security and resilience.

Learn more about each recommendation.

📍 Zoom in: Explore the local forces shaping America's economy.