EdTech Insight – Workers wanted: How to fill the skilled-trade shortage

by | May 31, 2024 | McKinsey, News & Insights

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Executive Summary and Main Points

The United States faces a significant shortage of skilled tradespeople, despite high demand and the critical role these workers play in the nation’s economic progress. McKinsey experts Brooke Weddle and Bryan Hancock highlight the urgency to address this gap, considering the potential impact on economic prosperity and infrastructure development. The Bipartisan Infrastructure Law, with its substantial construction expenditure, underscores the burgeoning demand. However, supply remains low, partly due to cultural emphasis on college education over vocational training. Efforts to attract new workers must address the high churn rate in these sectors and tackle the issues of job security, career advancement, and workplace flexibility.

Potential Impact in the Education Sector

The skilled trades shortage has wide-ranging consequences for Further Education, Higher Education, and Micro-credentials, emphasizing the importance of revamping vocational and apprenticeship programs. Greater collaboration among employers, educational institutions, and government agencies is imperative to create strategic partnerships and leverage digitalization to scale up solutions. By strengthening the appeal of skilled trades through enhanced educational pathways and integrating modern tools, the sector can reshape the future workforce and fulfill the changing demands of the economy.

Potential Applicability in the Education Sector

Innovative applications in education, particularly those integrating AI and digital tools, can play a crucial role. For example, virtual apprenticeships and simulations, as well as digital platforms linking job seekers with opportunities, could help bridge the gap between supply and demand. Furthermore, automation and the use of ‘digital twins’ can revolutionize job training and placement, offering flexibility to workers and reaching a broader demographic, including non-traditional learners and those in remote areas.

Criticism and Potential Shortfalls

Critics may argue that the push for skilled trades overlooks broader cultural attitudes and systemic issues within the training and employment landscapes. The cyclical nature of hiring and the mismatch between job availability and the skillset of trainees can result in disillusionment. Moreover, not all demographic shifts and technological advancements guarantee equitable access to opportunities, risking further entrenching existing disparities. International case studies also show variation in the effectiveness of interventions across different cultural and regulatory contexts.

Actionable Recommendations

International education leadership can focus on practical measures: revisiting and innovating the Employee Value Proposition for skilled trades, expanding dual learning apprenticeships, and targeting retention as much as recruitment. The use of scaled solutions, such as national clearinghouses for employment matching, and targeted outreach programs to demographics like returning citizens, can also facilitate integration. There’s scope for leveraging nationwide educational campaigns and creating a paradigm shift around skilled trades to address the talent shortage as part of a strategic global higher education response.

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Source article: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/workers-wanted-how-to-fill-the-skilled-trade-shortage