Leveraging Upskill and Reskill Programs in Technology for Black Economic Growth

April 2024

Leveraging Upskill and Reskill Programs in Technology for Black Economic Growth

Ja’Lia Taylor, Ph.D, John R. Lewis Social Justice Fellow

Summary

By 2030, a global talent deficit is predicted to exceed 85 million people, posing a threat to annual revenues of around $8.5 trillion. 1 The technology sector, already facing concerns in identifying, recruiting, and retaining qualified talent, will be particularly affected — with 61 percent of employers expressing apprehension. 2 Concurrently, African Americans continue to experience declining job opportunities, especially in traditional sectors like agriculture, machinery, and mining. Addressing the technology talent deficit offers an opportunity to counter the decline in job opportunities for African Americans who face systemic challenges, elevated unemployment rates, limited prospects, reduced compensation, and occupational segregation. This policy brief identifies how investing in workforce development for Black individuals provides a pathway to not only addressing the talent deficit but also serves to dismantle systemic barriers and create opportunities for economic advancement. By focusing on upskilling and reskilling programs, tailored to the needs of the Black community, these initiatives can equip individuals with the necessary skills to thrive in the technology-driven job market. Additionally, this policy brief explores the importance of H.R.6655, its relation to the promotion of workplace development for the Black community at large, and the implications of what is at stake if legislation of its kind remains unimplemented.

1 Franzino, M. & Guarino, A. (n.d.). The 8.5 Trillion Talent Shortage. Korn Ferry https://www.technologyreview. com/2023/09/21/1079695/new-approaches-to-the-tech-talent-shortage/#:~:text=By%202030%2C%20more%20 than%2085,shortage%20in%20the%20short%20term.

2 Blumberg, S. et al. (April 14, 2022). Tech talent tectonics: Ten new realities for finding, keeping, and developing talent McKinsey Digital. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/tech-talent-tectonics-ten-newrealities-for-finding-keeping-and-developing-talent

Background of Upskilling and Technology Programs

Upskilling and reskilling programs are educational initiatives aimed at improving individuals’ skills, often within a professional context. 3 Upskilling involves learning new skills or improving existing ones to enhance job performance or advance in one’s career. Reskilling, on the other hand, entails acquiring new skills to switch to a different job or industry. Both types of programs are designed to meet the evolving demands of the workforce, including changes in job requirements and advancements in technology. Upskilling and reskilling programs have emerged as essential tools for workforce development in response to rapid technological advancements and shifting job requirements. Additionally, in today’s rapidly evolving digital landscape, these programs emerge as indispensable tools for driving economic growth and fostering innovation in the United States. As technology continues to reshape industries, these programs will play a pivotal role in preparing individuals for the demands of an increasingly digital economy.

The nature of upskilling and reskilling initiatives has diversified to meet the needs of learners. Universities and vocational schools offer traditional educational programs, employers offer employer-sponsored training initiatives, and different companies offer online learning structured platforms to impart specialized knowledge and skills. In recent years, the technology sector has been at the forefront of skills-up programs due to its rapid growth and evolving demands. Companies like IBM and Google have pioneered innovative approaches to talent development, offering certification programs and boot camps designed to bridge the gap between traditional education and industry-specific skills. 4 By removing barriers to entry, such as degree requirements, these programs democratize access to high-demand technology roles and empower individuals from diverse backgrounds to pursue careers in technology.

Despite the increasing demand for technology talent, the United States faces a significant shortage in skilled workers, particularly in the technology sector. 5 By 2030, it is estimated that there will be a shortage of 6 million workers in the technology industry alone, posing a threat to the nation’s economic competitiveness and innovation capacity. 6 This deficit is driven by several factors, including rapid technological advancement, the globalization of the workforce, and demographic shifts. To address this shortfall, it is imperative to turn to current legislation that will invest in upskilling and reskilling programs that equip individuals, specifically the Black community, with the skills needed to fill the growing number of tech-related vacancies.

3 Hall, J. (February 24, 2023). Why Upskilling And Reskilling Are Essential In 2023. Forbes. https://www.forbes.com/sites/johnhall/2023/02/24/why-upskilling-and-reskilling-are-essential-

4 Mamadou, N. & Lockowandt, M. (February 2021). Nonprofits Offer a Roadmap for Colleges Implementing the Google IT Certificate Program. Google IT Support Professional Certificate Program. Jobs for the Future. https://eric.ed.gov/?id=ED611286

5 Merisotis, J. (June 21, 2023). States Scramble to Fill Tech Talent Shortage. Forbes. https://www.forbes.com/sites/ jamiemerisotis/2023/06/21/states-scramble-to-fill-the-tech-talent-shortage/?sh=75cee6e44449

6 Franzino, M. & Guarino, A. (n.d.). The 8.5 Trillion Talent Shortage. Korn Ferry. https://www.technologyreview. com/2023/09/21/1079695/new-approaches-to-the-tech-talent-shortage/#:~:text=By%202030%2C%20more%20than%20 85,shortage%20in%20the%20short%20term

What is H.R.6655?

H. R. 6655, known as A Stronger Workforce for America Act, was introduced jointly by Representative Virginia Foxx (R-NC-5) and Representative Robert C. ‘Bobby’ Scott (D-VA-3) on December 07, 2023. 7 This bipartisan legislation has many notable provisions, including the following:

• Make critical updates to the Workforce Innovation and Opportunity Act (WIOA) to increase the amount of skills development provided under the law, strengthen connections between employers and the workforce system, and put more Americans on the pathway to a successful career.

• Upgrade the skills of the American workforce by dedicating 50 percent of the adult and dislocated worker funding towards upskilling workers.

• Emphasize employer-led initiatives that equip workers with the skill set to fill jobs in critical industries and help the currently employed workforce improve their skills to avoid displacement and advance their careers.

• Ensure workers displaced from their jobs due to no fault of their own can access robust skill development services, including through “individual training accounts.”

• Increase accountability, quality, and efficiency by streamlining the “eligible training provider list” to ensure programs are aligned with skill and hiring demands and fully implementing the performance accountability system to hold states and local workforce boards accountable for achieving positive outcomes for program participants.

• Strengthen pathways to continue economic opportunity by emphasizing work-based learning for youth, codifying a program to help individuals released from incarceration transition back to employment, and enhancing workforce education programs at community colleges that align with in-demand jobs.

• Fuel innovation for a skills-based economy by creating a demonstration authority for targeted state and local boards to reimagine their workforce systems and providing technical assistance to employers on implementing skills-based hiring practices. 8

7 Congress.gov. (December 07, 2023). H.R.6655 - A Stronger Workforce for America Act. Congress.gov. https://www. congress.gov/bill/118th-congress/house-bill/6655?s=2&r=4

8 House Committee on Education and the Workforce. (December 07, 2023) A Stronger Workforce for America Act Fact Sheet. House.gov. https://democrats-edworkforce.house.gov/imo/media/doc/a_stronger_workforce_for_america_ act_fact_sheet.pdf

The Importance of H.R.6655 to the United States Economy and the Black Community-At-Large

Despite technology being purported as a booming industry, the disparity in representation becomes even more pronounced when examining the industry. Black people comprise 12 percent of the U.S. workforce, but only make up 8 percent of employees in technology— with that gap projected to widen over the next decade. 9 According to the Equal Employment Opportunity Commission (EEOC), 88 percent of technology executives in the U.S. are white in comparison to the 2 to 5.3 percent representation of Black people in the executive category. 10 As the workforce landscape continues to evolve with rapid technological advancements, closing the representation gap becomes even more crucial. Ensuring the inclusion of Black people in the new era of technology holds numerous benefits for the United States. While we often turn to technology to address our challenges there is a crucial question that society has overlooked: What happens when society, and consequently our technology, perceives people of color as the issue?

Techno-racism describes the phenomenon in which racism experienced by people of color is encoded in technical systems used in our everyday lives.11 Machine-learning algorithms use statistics to find patterns in data and, as a result of Black individuals having been historically and disproportionately targeted by law enforcement, our algorithms could amplify and perpetuate embedded biases that feed a vicious cycle.12 H.R. 6655 has the potential to fix concerns regarding racism in technology by bolstering the number of Black individuals in the industry. One of the greatest benefits of having more Black people in the technology sector is the diversity of experience. New groundbreaking ideas are rarely brought to the table without the collaboration of a diverse team. A 2019 meta-analysis study examined the impact of diversity on team creativity and innovation in culturally diverse teams.13 It distinguished between surface-level diversity (such as demographic characteristics) and deep-level diversity (such as values and beliefs) and explored how these different forms of diversity affected team outcomes. The study also considered the role of team virtuality and task characteristics, including task interdependence, complexity, and intellect, as moderators.

9 McKinsey & Company. (March 06, 2023). Building up Black tech talent. McKinsey & Company. https://www.mckinsey. com/featured-insights/sustainable-inclusive-growth/chart-of-the-day/building-up-black-tech-talent

10 Cain, C. (August 17, 2021). Beyond the IT Artifact – Studying the Underrepresentation of Black Men and Women in IT. Journal of Global Information Technology Management. https://doi.org/10.1080/1097198X.2021.1954315

11 Karimi, F. (May 09, 2021). People of color have a new enemy: techno-racism CNN. https://www.cnn.com/2021/05/09/us/ techno-racism-explainer-trnd/index.html

12 Hao, K. (January 21, 2019). AI is sending people to jail – and getting it wrong. MIT Technology Review. “https:// www.technologyreview.com/2019/01/21/137783/algorithms-criminal-justice-ai/”https://www.technologyreview. com/2019/01/21/137783/algorithms-criminal-justice-ai/

13 Wang, J., Cheng, L., Chen, T., & Leung, K. (2019). Team creativity/innovation in culturally diverse teams: A meta-analysis. Journal of Organizational Behavior, 40(6), 693-708. https://doi.org/10.1002/job.2362

CPAR | Leveraging Upskill and Reskill Programs in Technology for Black Economic Growth

The findings suggested that surface-level diversity in culturally diverse teams was not significantly related to team creativity and innovation. However, deep-level diversity in culturally diverse teams was positively associated with team creativity and innovation. Furthermore, deep-level diversity in culturally diverse teams was positively related to team creativity and innovation, particularly for collocated teams and interdependent tasks.

These findings highlighted the importance of deep-level diversity in driving creativity and innovation in culturally diverse teams.14 The inclusion of Black individuals in the technology sector has the potential to mitigate bias through the incorporation of more diverse perspectives along the creative process.

One of the other major benefits of passing HR. 6655 is enhancing competitiveness. In an increasingly digital economy, maintaining competitiveness requires a skilled workforce that is adaptable and responsive to evolving technological trends.15 By investing in upskilling and reskilling programs, the United States can ensure that its workforce remains at the forefront of innovation, thereby positioning the nation as a global leader in the technology sector. These programs equip individuals with the skills needed to leverage emerging technologies effectively, enabling businesses to stay ahead of the curve and maintain a competitive edge in the global marketplace.

Another benefit is job creation. Upskilling and reskilling programs create opportunities for individuals to enter high-demand fields, leading to job creation and economic growth. This addresses the talent deficit in the technology sector and promotes economic inclusivity by providing pathways to employment for individuals from diverse backgrounds.16 The United States would also see increased productivity. A skilled workforce is essential for driving productivity and efficiency within businesses. By providing workers with the necessary skills to effectively leverage technology, upskilling and reskilling programs can enhance productivity across industries, leading to higher output and economic prosperity. These programs enable workers to streamline processes, optimize workflows, and leverage technology tools to maximize their potential, thereby driving business success and fueling economic growth.

An additional great benefit is attracting investors. A highly skilled workforce is key in attracting investment from domestic and international companies. By demonstrating a commitment to investing in the development of technology talent, the United States can position itself as an attractive destination for businesses looking to establish or expand their operations. Upskilling and reskilling programs signal to investors that the nation is committed to fostering innovation and growth, stimulating economic development and job creation.

14 Wang, Jie & Cheng, Grand & Tingting, Chen & Leung, Kwok. (February, 2019). Team Creativity/Innovation in Culturally Diverse Teams: A Meta-Analysis. Journal of Organizational Behavior. 40. 693-708. 10.1002/job.2362

15 Li, L. Reskilling and Upskilling the Future-ready Workforce for Industry 4.0 and Beyond. Inf Syst Front (2022). https://doi. org/10.1007/s10796-022-10308-y

16 Hall, John. (February 24, 2023). Why Upskilling And Reskilling Are Essential In 2023. Forbes. https://www.forbes.com/ sites/johnhall/2023/02/24/why-upskilling-and-reskilling-are-essential-in-2023/?sh=5be081e4088c

Benefits to Black American Economic Development

Apart from benefiting the overall economy, upskilling and reskilling programs in technology offer significant advantages for the economic development of Black Americans, including:

1. Reducing Unemployment: Black Americans face unemployment at a rate six times higher than their white counterparts, highlighting a significant disparity in employment opportunities. 17 Upskilling and reskilling programs provide opportunities for Black individuals to acquire the skills needed to secure employment in highgrowth sectors like technology, thereby reducing unemployment rates and increasing economic stability within Black communities.

2. Closing the Wage Gap: Black workers often face wage disparities due to systemic barriers and discrimination in the labor market. Compared to the typical white worker, Black workers earned 24.4% less per hour. This wage gap is even wider than in 1979 when it stood at 16.4%. By equipping Black individuals with the skills demanded by the technology industry, upskilling and reskilling programs can help narrow the wage gap and ensure that Black workers receive fair compensation for their contributions. 18

3. Promoting Entrepreneurship: Access to technology skills can empower Black Americans to pursue entrepreneurial opportunities and create their own businesses. By providing training in areas like software development, digital marketing, and e-commerce, upskilling and reskilling programs can help Black entrepreneurs launch and grow successful ventures, thereby creating wealth and economic opportunities within Black communities.

17 Weller, Christian. (December 5, 2019). African Americans Face Systematic Obstacles to Getting Good Jobs. The Center for American Progress. https://www.americanprogress.org/article/african-americans-face-systematic-obstaclesgetting-good-jobs/#:~:text=Line%20chart%20showing%20that%20the,a%20rate%20of%202.8%20percent.

18 Ajilore, O. (February 24, 2020). On the Persistence of the Black-White Unemployment Gap. Cap 20. https://www. americanprogress.org/article/persistence-black-white-unemployment-gap/

These advantages can materialize through government initiatives aimed at offering mentoring and resources to Black Americans. A significant portion of the Black population continues to grapple with poverty, rendering traditional programs, as well as certain upskilling and reskilling opportunities, financially out of reach. However, with deliberate policy interventions that prioritize the inclusion of Black Americans in this sector, these benefits can become attainable realities.

Conclusion

H.R. 6655, also known as A Stronger Workforce for America Act, presents a promising opportunity to bolster upskilling and reskilling technology programs in the United States. By allocating resources towards workforce development initiatives, this legislation has the potential to bridge the gap between the demand for skilled technology workers and the available talent pool. Through strategic investments in training programs, apprenticeships, and educational partnerships, H.R. 6655 can equip individuals with the necessary skills and competencies to thrive in the rapidly evolving technology landscape. Moreover, the passage of H.R. 6655 holds particular significance for Black Americans, who have historically faced systemic barriers to accessing quality education and employment opportunities in the technology sector. By prioritizing inclusivity and equity, this legislation can help address the underrepresentation of Black individuals in technology fields by providing targeted support for upskilling and reskilling initiatives tailored to their needs. Through targeted outreach, mentorship programs, and community partnerships, H.R. 6655 can empower Black Americans to pursue careers in technology and unlock pathways to economic mobility and advancement. Furthermore, by harnessing the potential of technology-driven workforce development programs, H.R. 6655 can foster a more diverse and inclusive technology industry that reflects the rich tapestry of America’s talent pool. By embracing diversity and leveraging the unique perspectives and experiences of Black Americans, the technology sector can drive innovation, foster creativity, and strengthen its competitive edge in the global market. Ultimately, H.R. 6655 has the power to transform the landscape of workforce development in the United States, unlocking new opportunities for Black Americans and paving the way for a more prosperous and equitable future for all.

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