Leading Tech-Policy Think Tank Calls For Action to Upgrade Workforce-Training and Adjustment for an Era of Rapid Change

WASHINGTON—Contrary to the alarms raised by a host of pundits, the next wave of technological innovation will not trigger mass unemployment. But it is likely to be disruptive for some workers, and the current U.S. employment and training system is inadequate to help them gain the competencies they will need to successfully navigate job transitions, according to a new report released today by the Information Technology and Innovation Foundation (ITIF).

ITIF, the leading think tank for science and technology policy, calls for significant reforms and proposes a detailed action plan to upgrade America’s workforce-training and adjustment policies for an era of rapid technological progress and change.

“Improving policies for workforce training and adjustment should be a bipartisan issue,” said ITIF President Rob Atkinson, author of the report. “The last election made it clear that many voters are worried about their place in the economy. The risk is their frustration will make them support steps to throw sand in the gears of technological change. But rather than slow down technological disruption to protect a small number of workers at the expense of the majority who are benefiting, policymakers should focus on doing significantly more to help workers transition successfully into new jobs and occupations.”

The report examines six issues related to technological innovation and assesses implications for the labor market: the overall number of jobs, employment relationships, income inequality, job quality, employment tenure, and worker dislocation and transition.

The report then offers a detailed policy action plan to support better workforce-training and adjustment. The plan focuses on four key factors that are important in reducing the costs of worker dislocation:

1. Supporting full employment, nationally and regionally, not just with macro-economic stabilization policies but also with robust regional economic development policies;
2. Ensuring as many workers as possible have needed education and skills in the event they lose their jobs;
3. Reducing the risk of income loss and other financial hardships when workers are laid off; and
4. Providing better transition assistance to help laid off workers find new employment.

“Slowing innovation runs counter to the goals of ensuring a growing standard of living for workers, so thwarting technological progress is not the answer,” Atkinson said. “If the United States and other nations are going to have political economies that embrace change and innovation, then governments need to do more to reduce employment risk for workers.”

Read the report.