A New Model: Sector Initiatives

Significant changes in demographics, the growth of technology, the globalization of markets, and the restructuring of work have dramatically transformed the U.S. economy and workplace.

Once, a majority of American workers were assured of lifelong careers in a single industry or occupation, and their health and retirement benefits came with their jobs. Now, good pay and benefits demand higher levels of skill and education and are more difficult for low-income individuals to obtain. Employers struggle to find the right employees to fill vital positions while facing rapid turnover and major vacancy rates. These changes have led to increased poverty, joblessness, and underemployment for low-income workers, and economic uncertainty for employers. Communities suffer the consequences.

Public agencies, employers, unions, and nonprofits have traditionally applied a range of approaches—from direct job placement to vocational education to organizing—in order to address the situation. But approaches that have worked in that past are less and less effective.

A new model, the sector initiative, has proved to be particularly successful and is quickly becoming a leading-edge strategy nationwide. Sector initiatives are industry-specific workforce development approaches. They share four common elements that distinguish them from conventional programs.

• They craft workforce solutions to a specific industry within a region.
• They utilize a strategic partner with deep knowledge of the targeted industry to link organizations such as community-based nonprofits, employer organizations, organized labor, and community colleges.
• They provide training strategies that benefit low-income individuals such as unemployed workers, nontraditional labor pools, and low-wage incumbent workers.
• They promote systemic change by restructuring internal and external employment practices to benefit employers, low-wage workers, and low-income job seekers alike.

Leaders in the field are targeting more than 15 different industries including manufacturing, healthcare, information technology, construction, hospitality, telecommunications, the food industry, child care, temporary staffing, printing, and many others. A focus on specific industries, with their common occupations and skill requirements, allows sector initiatives to develop a greater understanding of workers and employers in the field, reach out to employers who often have existing relationships, and develop targeted programming. Regional partnerships of key stakeholders help sector initiatives to obtain important input and buy-in, mobilize resources, and leverage financial support. 

Industry-specific workforce development is not a cookie-cutter method. Sector initiative leaders use a variety of strategies that are tailored to the regional economy, industry sectors, and worker populations. Basic strategies include training and skills development to bring new employees into specific industries and occupations; business development; organization of residents, workers, employers, and other key constituents; research; restructuring of the work environment to improve recruitment, hiring, training, compensation, and retention strategies; and integrating two or more of these strategies in a multifaceted approach. These initiatives result in companies that are better able to fulfill their need for competent, long-term employees, while employees obtain improved income, benefits, and employment opportunities.

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