Investing in America's Workforce: Improving Outcomes for Workers and Employers

Last updated date 6/5/2025

Investing in America’s Workforce: Improving outcomes for workers and employers

Our country can reach its full economic potential only by aligning its workforce’s skills with its employers’ needs. Despite an improving economy and numerous programs, significant labor market challenges persist for both workers and employers.

Reframing and reimagining workforce development efforts as investments—instead of social services—can lead to scalable solutions and measurable outcomes. Investing in workforce development can bolster the equitable and efficient use of resources, leading to more successful outcomes for individuals, more viability for businesses, and more regional economic growth.

Working together affords businesses, government agencies, nonprofits, and philanthropic organizations a more efficient way to rethink policy and investments, attract new resources, and improve economic mobility for workers. In addition to revealing new funding sources, partnering can leverage existing investments for even greater impact.

Featured Content

Construction team having a conversation while working at construction site

Fostering maximum employment: Why the Federal Reserve studies investments in America’s workforce

The Federal Reserve’s dual mandate includes promoting maximum employment. This article features examples of the various ways Fed research, outreach, and partnerships contribute to achieving this optimal state of the labor market.

Carl Van Horn speaks with Steve Shepelwich at the Investing in Americas Workforce Conference.

Rutger’s Heldrich Center uses data to help bolster workforce initiatives

The John J. Heldrich Center for Workforce Development provides research expertise and analysis to organizations, including the Fed, to help improve education, training, and workforce development programs that affect employers and employees.

A group of people gather at the Philadelphia Fed for a data walk reflecting on workers experience since the pandemic.

Workforce development as an investment: The Philadelphia Fed’s Patrick Harker reflects on building a more inclusive workforce

In this Q&A, outgoing Philadelphia Fed President and CEO Patrick Harker, who has helmed the Philly Fed since 2015, reflects on why he views workforce development as an investment, how the Fed’s role in supporting workers has evolved, and how listening to communities has shaped his approach to monetary policy.

Research and reflections on workforce

In 2017 and 2018, the Federal Reserve’s community development teams held regional meetings with nearly 1,000 workforce leaders to better understand the challenges and opportunities in workforce development. These efforts reflect the Fed’s committment to supporting maximim employment. As a result of these meetings, a book and special topic briefs were created to share research, partnerships, and on-the-ground-insights from workers and employers. The Fed continues to invest in workers and support strategies that promote inclusive employment opportunities.

Investing in America’s Workforce: Improving Outcomes for Workers and Employers

How can well-structured and effective workforce programs and policies result in better economic outcomes for individuals, businesses, and communities?

Explore contemporary research, best practices, and resources from more than 100 authors in the book Investing in America’s Workforce: Improving Outcomes for Workers and Employers.

The book is divided into three volumes: Investing in Workers, Investing in Work, and Investing in Systems for Employment Opportunity. Within each volume are discrete sections made up of chapters that identify specific workforce development programs and policies that provide positive returns to society, to employers, and to job seekers.

Book covers of the three Investing in America's Worforce three book volumes

Volume 1: Investing in workers emphasizes viewing all job seekers–especially those often overlooked–as valuable assests who can drive innovation and strengthen the workforce.

Volume 2: Investing in work explores ways to improve outcomes for workers and employers through up-skilling, increased quality of work, new structures for employment, and highlights rural and regional economic development through workforce investments.

Volume 3: Investing in systems for employment opportunity examines how organizations and policymakers can align efforts across sectors to improve training and workforce productivity.

Note: The policies and practices presented in the book are intended to spur innovative thinking that results in context-specific solutions. The perspectives are not intended as an endorsement from the Federal Reserve System or its partnering institutions.

Special topic briefs

Two buildings in downtown Cleveland, OH.

Understanding the disconnect between economic development and workforce development systems (pdf. 14 MB)

The economic development field encourages business and job growth, while workforce development ensures individuals have the education, skills, and training needed to obtain jobs. This report provides perspectives on alignment as well as challenges and opportunities for greater alignment between the two systems, using stakeholder input from the Federal Reserve Bank of Cleveland’s Fourth District.

High angle shot of a group of businesspeople having a meeting in a modern office.

Digital skills for the 21st-century workforce (pdf, 74 MB)

Middle-skills jobs increasingly require workers to cultivate a robust digital skill set to compete in an economic market marked by technological innovation. This report looks at innovative strategies used to prepare workers with digital skills for 21st-century jobs.

Teacher helping a student training to be a car mechanic

Pay for success: How emerging finance tools are supporting workforce development (pdf, 55 MB)

Pay for Success (PFS), a contractual arrangement that ties payment for delivery of services to specific measurable outcomes, has emerged in recent years as a promising tool to finance workforce development. Find out more about PFS and the challenges and opportunities in applying the model to build outcomes-oriented education and training programs.

A photo of a typical small town main street in the United States of America. Features old brick buildings with specialty shops and restaurants. Decorated with spring flowers and American flags.

Strengthening workforce development in rural areas (pdf, 55 MB)

Rural areas face common workforce challenges such as a declining share of working-age individuals and greater distances to major centers of employment. Explore opportunities for rural investments that seek to address issues around both labor demand and supply.

Smart building and mesh network, abstract image visual

Investing in America’s Workforce: Report on workforce development needs and opportunities (pdf, 22MB)

This report provides a snapshot of the workforce development sector and its key challenges. It offers strategies for improving the human capital of America’s labor force, expanding access to jobs, and innovating workforce development funding.