Workforce Innovation in Regional Economic Development

Last updated
Workforce Innovation in Regional Economic Development (WIRED)
Wired logo.jpg
Department overview
FormedFebruary 1, 2006
Preceding Department
HeadquartersFrancis Perkins Building
Washington DC
Website www.doleta.gov/wired

Workforce Innovation in Regional Economic Development (WIRED) was a project of the United States Department of Labor. It provided a new approach to workforce and economic development. Through the WIRED model, regions integrated economic and workforce development activities to demonstrate that talent development can drive economic transformation in regional economies across the United States.

Contents

History

Birth of the Public Workforce System

The WIRED Initiative was conceived from lessons learned since the birth of the public workforce system in the 1930s. The workforce system was designed for the economy of the day - an economy characterized by interchangeable labor, cyclical layoffs and a workforce that required no more than a high school diploma. These New Deal policies firmly established the federal government's commitment to minimizing hardships associated with unemployment and facilitating a worker's return to work.

In the 1960s, a job training system was created to serve American workers. Like other programs of the day, the system was designed on a social services model. Policies like the Manpower Development and Training Act (MDTA) of 1962 and the Comprehensive Employment and Training Act (CETA) of 1973 had little private sector involvement and governed a system that saw over 40 percent of its participants engaged in subsidized employment.

In 1982, the Job Training Partnership Act (JTPA) was enacted, replacing CETA. JTPA eliminated the Public Service Employment Program (part of CETA) and increased funding for job training.

WIA

The Workforce Investment Act of 1998 (WIA) reformed the structure established by the JTPA. The act, which was approved with strong bipartisan support, streamlined service delivery through One-Stop Career Centers, strengthened performance accountability, promoted universal access to services, created business-led state and local boards and promoted individual choice.

High Growth Job Training Initiative

To address the growing need for skilled workers, DOL identified industries of our economy that could significantly benefit from talent development; industries that are experiencing rapid growth or a significant transformation in the skills required of its employees. Launched in 2003, the President's High Growth Job Training Initiative engages these identified industries in the talent development, connects businesses to the workforce system and creates programs designed to meet their specific workforce needs. The initiative takes a groundbreaking approach to closing skills gaps by developing solutions to workforce challenges and creating partnerships among business, education institutions and the workforce community.

Community-Based Job Training Grants

The President's Community-Based Job Training Grants address the need for a partnership between the workforce system and the vocational education system, increase the capacity of community colleges to meet the demands of today's employers and recognize community colleges as an easily adaptable and viable means for talent development. The grants provide schools the resources to hire faculty, and purchase equipment and facilities they needed to train and educate workers for jobs in the high-growth fields. These grants were first made available in 2005, and are designed to bridge community colleges with business and industry to better address talent development. Additionally, Community-Based Job Training Grants also help strengthen the relationship between the job training system and the community college system.

The jobs of today and tomorrow require individuals with postsecondary education and community colleges are the most flexible, affordable and accessible option for many Americans. As more competition enters the global market, workers from around the globe are competing with Americans for jobs and winning. The Community Based Job Training Grants empower community colleges to provide greater opportunities for Americans and keeps our nation competitive in the global economy.

Regional Economies

Globalization has changed the formula for developing a prepared workforce and necessitated a change in visualizing the boundaries of an economy. An economy is no longer defined by the political boundaries of a city, county or state line. Instead, economies are defined regionally by a diverse group of industries, supported by factors such as infrastructure, investment and an availability of local talent. This regional concept promotes partnerships among key community players, including K-12 schools, community colleges, adult education centers, universities, regional employers and community economic and workforce development organizations. This is supported by academic developments, as scholars like Porter (2000) argue for the continuing importance of industry clusters for economic development at both the macro and micro level. [1]

The Birth of WIRED

On February 1, 2006, U.S. Department of Labor Secretary Elaine L. Chao announced the WIRED Initiative, encompassing these ideals to better align workforce and economic development. WIRED takes a critical step in providing individuals with the tools for success, businesses the human capital required for growth, and the American economy the fuel for continued strength. [2]

Activities

In February 2006, following a Solicitation for Grant Applications, the Employment & Training Administration (ETA) announced 13 regions that comprise the WIRED 1st Generation. These regions were selected on the basis of a number of criteria, including (1) the viability of regionally competitive clusters; (2) a framework for public-private administration of the program; (3) evidence of economic distress in the region; and (4) a detailed plan for systematic interconnections between public workforce administration agencies, educational institutions, nonprofits, and private industry. [3] First Generation regions face various challenges in economic development and sustainability including: remaining competitive with a globalized workforce; managing existing growth opportunities; and creating a more innovative economy by focusing on developing small business. First Generation WIRED Regions were awarded $15 million over three years to revitalize their local economy.

In April, 2006, ETA added 13 additional regions, then known as the Virtual Regions. These regions received a $100,000 planning grant, were invited to participate in all WIRED-related activities and were given access to the tools and resources developed. In January 2007, these regions became the 2nd Generation Regions and received an immediate investment of $500,000. This investment supports the development of a comprehensive implementation plan. Upon completion and acceptance of this plan, each region will receive an additional $4.5 million investment over a three-year period.

On June 20, 2007, ETA announced the expansion of the WIRED Initiative. Thirteen applications were selected to become the Third Generation of WIRED Regions. Each will receive a $5 million investment over a three-year period.

All 39 WIRED Regions were supported by managers from ETA and the WIRED resource team, as well as access to various staff from other federal agencies. This expanded team provided the regions with tools and technical assistance that assisted them with implementing their plan for regional economic growth.

In addition to the monetary investments, a number of activities took place in support of the WIRED regions including:

Critical reception

Recent academic literature seems to reinforce WIRED's rationale. Indeed, there are two economic development forces—which often theoretically overlap—at work here: one at the micro level (the specific programs of the grantee regions) and one at the macro level (the federal government). At the grantee level, as Renski (2009) notes, “there are really no new ideas in WIRED. Clusters, partnerships, regional competitiveness, asset mapping—the buzzwords of WIRED—have been a part of the vernacular of the economic development profession for quite some time." [5] In this respect, the WIRED initiative as a whole incorporates a number of well-accepted economic development practices, while leaving specific application to each grantee region. Blakeley and Leigh (2010), Porter (2000), and Renski note that cities and regions have long practiced economic development techniques like fostering cluster development to stimulate innovation and technology spillover to remain competitive in a global market. [6]

Yet, at the macro level, subsidizing this approach regionally is new. Renski points out that “the novel aspect of WIRED is simply that it is administered and funded by the U.S. federal government, who has had little involvement in regional economic development since the 1970s.” [7] Markusen and Glassmeier (2008) note that “In general, federal economic development programs place too much emphasis on physical infrastructure and not enough on human capital and ‘soft’ infrastructure, meaning organizational know-how and networking.” [8] Thus, it is the focus on regional growth that crosses traditional political and jurisdictional boundaries which makes WIRED a notable program in the conversation on effective economic development policy.

WIRED Regions

A partial list of locations, with their respective programs is provided below:

First Generation

Second Generation

Third Generation

Partners

The ETA and WIRED are currently working with a number of agencies:

Related Research Articles

Economic Development Administration

The U.S. Economic Development Administration (EDA) is an agency in the United States Department of Commerce that provides grants and technical assistance to economically distressed communities in order to generate new employment, help retain existing jobs and stimulate industrial and commercial growth through a variety of investment programs.

The Job Training Partnership Act of 1982 was a United States federal law passed October 13, 1982, by Congress with regulations promulgated by the United States Department of Labor during the Ronald Reagan administration. The law was the successor to the previous federal job training legislation, the Comprehensive Employment and Training Act (CETA). It was repealed by the Workforce Investment Act of 1998 during the administration of President Bill Clinton.

The Workforce Investment Act of 1998 was a United States federal law that was repealed and replaced by the 2014 Workforce Innovation and Opportunity Act.

Innovation, Science and Economic Development Canada, is the department of the Government of Canada with a mandate of fostering a growing, competitive, and knowledge-based Canadian economy. ISED specifically supports Canadian innovation efforts, trade and investment, enterprise growth, and customized economic development in Canadian communities.

Employment and Training Administration

The Employment and Training Administration (ETA) is part of the U.S. Department of Labor. Its mission is to provide training, employment, labor market information, and income maintenance services. ETA administers federal government job training and worker dislocation programs, federal grants to states for public employment service programs, and unemployment insurance benefits. These services are primarily provided through state and local workforce development systems.

Appalachian Regional Commission

The Appalachian Regional Commission (ARC) is a United States federal-state partnership that works with the people of Appalachia to create opportunities for self-sustaining economic development and improved quality of life. Congress established A.R.C. to bring the region into socioeconomic parity with the rest of the nation.

The term "sustainable communities" has various definitions, but in essence refers to communities planned, built, or modified to promote sustainable living. Sustainable communities tend to focus on environmental and economic sustainability, urban infrastructure, social equity, and municipal government. The term is sometimes used synonymously with "green cities," "eco-communities," "livable cities" and "sustainable cities."

Community economic development (CED) is a field of study that actively elicits community involvement when working with government, and private sectors to build strong communities, industries, and markets.

Greater Louisville Inc. - The Metro Chamber of Commerce (GLI) is focused on growing the regional economy. As the region's largest convener of business leadership, GLI leads economic and global outreach strategies focused on business attraction; nurtures the entrepreneurial eco-system; and champions the development of the community's talent base. As the voice of Greater Louisville's business community, GLI advocates for a pro-business environment and facilitates businesses engagement on issues that impact regional competitiveness.

Wall Street West is a not-for-profit partnership in Northeastern Pennsylvania that is enhancing the financial services, information technology and related industries in the commonwealth through strategic workforce development and state-of-the-art economic development. Stemming from an interagency report by the Securities and Exchange Commission (SEC), the Federal Reserve and the U.S. Department of the Treasury – whose recommendations make the nine-county region an optimal geographic location for secure data back-up and back office operations – the goal of Wall Street West is to work with firms in New York City and the surrounding metropolitan threat zones to establish supplemental facilities to safeguard data, fund the education and training of a growing workforce, and expand the competitiveness and potential of these industries.

The Puget Sound Regional Council (PSRC) is a metropolitan planning organization that develops policies and makes decisions about transportation planning, economic development, and growth management throughout the four-county Seattle metropolitan area surrounding Puget Sound. It is a forum for cities, towns, counties, transit agencies, port districts, Native American tribes, and state agencies to address regional issues.

Career Pathways is a workforce development strategy used in the United States to support workers’ transitions from education into and through the workforce. This strategy has been adopted at the federal, state and local levels in order to increase education, training and learning opportunities for America’s current and emerging workforce.

Bio-1 organization

Bio-1 is a consortium of partners founded in 2007 designed to identify and promote bioscience in the Central New Jersey area. It is the result of a $5 million grant made available by the Workforce Innovation in Regional Economic Development (WIRED) program.

America COMPETES Act

The America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act of 2007 or America COMPETES Act was authored by Bart Gordon and signed by President George W. Bush; it became law on 9 August 2007. This was an Act, "To invest in innovation through research and development, and to improve the competitiveness of the United States."

International Economic Development Council organization

The International Economic Development Council (IEDC) is a non-profit membership organization serving economic developers. With more than 5,000 members, IEDC is the largest national and global organization of its kind.

Workforce development, an American approach to economic development, attempts to enhance a region's economic stability and prosperity by focusing on people rather than businesses. It essentially develops a human-resources strategy. Work-force development has evolved from a problem-focused approach, addressing issues such as low-skilled workers or the need for more employees in a particular industry, to a holistic approach considering participants' many barriers and the overall needs of the region.

Pathways Out of Poverty (POP) is an American workforce development program that was established on August 14, 2009, by the Obama administration and funded by the American Recovery and Reinvestment Act (ARRA) of 2009. The Department of Labor's Employment and Training Administration announced POP grantees on January 13, 2010. POP targets individuals living below or near the poverty level to provide them with skills needed to enter the green job market, focusing on the energy efficiency and renewable energy industries. The training programs focus on teaching basic literacy and job readiness skills. Some of the programs also provide supportive assistance with childcare and transportation to overcome barriers to employment.

Economic Development in Rural Western North Carolina

Rural Economic Development in North Carolina is analogous to other areas as the focus of said projects are to facilitate a higher standard of economic activity to a specified area. In these designated areas citizens, interest groups, business owners, and policy makers work together in order to formulate long term economic goals and strategies to meet those goals. There are many different avenues and forms an economic development project can take dependent on the desired outcome.

Workforce Innovation and Opportunity Act

The Workforce Innovation and Opportunity Act (WIOA) is a United States public law that replaced the previous Workforce Investment Act of 1998 (WIA) as the primary federal workforce development legislation to bring about increased coordination among federal workforce development and related programs.

Dislocated worker funding is typically used to help workers in events of mass employment loss. A dislocated or displaced worker is defined as an individual who has been laid off or received notice of a potential layoff and has very little chance of finding employment in their current occupation when attempting to return to the workforce. Displaced workers are most frequently found in the manufacturing industry. Legislation addressing training for these workers was first introduced in 1959 through the passing of the Area Redevelopment Act of 1959. Over the years, legislation funding these programs has included wording holding states and private businesses accountable for the roles in the dislocation of workers. Due to the importance of this funding and the negative economic impact of displaced workers, the United States has passed continuing legislation as recent as 2014 and 2015.

References

  1. Michael Porter, “Location, Competition, and Economic Development: Local Clusters in a Global Economy,” Economic Development Quarterly, Vol. 14, No. 1, February 2000, pp. 15-34.
  2. The Road to WIRED January 23, 2007
  3. Henry Renski, “A New Era of Federal Involvement in Regional Economic Development? The Case of the WIRED Initiative,” Environment and Planning C: Government and Policy, volume 27, March 2009, pp, 593- 611
  4. About WIRED November 06, 2006.
  5. Renski, Henry (2009). "A New Era of Federal Involvement in REgional Economic Development? The Case of the WIRED Initiative". Environment and Planning C: Government and Policy. 27: 593.
  6. Edward Blakely and Nancy Green Leigh, Planning Local Economic Development: Theory and Practice, 4th ed., (Thousand Oaks, CA: Sage, 2010).
  7. Renski, Henry (2009). "A New Era of Federal Involvement in REgional Economic Development? The Case of the WIRED Initiative". Environment and Planning C: Government and Policy. 27.
  8. Ann Markusen and Amy Glasmeier, “Overhauling and Revitalizing Federal Economic Development Programs,” Economic Development Quarterly, (2008) Vol. 22, No. 2: 83.
  9. WIRED Regions July 27, 2007
  10. Federal Agency Partners January 25, 2007.