Adapting to Change

The dynamic workforce development outlook in Delaware

BY RON BERRY

AT THE 2024 Delaware State Chamber of Commerce Annual Dinner, Governor John Carney reminded the audience that the state is “determined to win the competition for new jobs,” adding that Delaware currently has “30,000 job openings and 21,000 people looking for work.” The workforce of tomorrow must be built today through dynamic partnerships, active listening, and a shared vision of what’s possible.

Over the last decade, public perception of workforce development has changed significantly. Once considered a pipeline solely focused on entry-level skills and vocational training, the role of workforce development has evolved to contemplate innovative and scalable approaches to connect potential employees to employers to fill voids in highly skilled careers and trades.

In Delaware, workforce development has consciously expanded to encompass a more equitable, whole-person approach.

In the decade between 2010 and 2020, Delaware unemployment rates fell steadily, from 9.1 percent in 2010 to 3.7 percent in January 2020. The COVID-19 pandemic led to a 20-year high of just over 13 percent, slightly less than the national figure of 14.7 percent. Currently, the unemployment rate in the state is 4.2 percent.

But employment rates tell only part of the story. The challenges of the pandemic provided an opportunity in disguise. The global crisis allowed us to think outside the paradigm of conventional wisdom and provided an incentive to re-align resources and deliver value to the whole person beyond employment or employability status.

Many traditionally reliable employers closed or significantly reduced staff. Unexpected layoffs increased housing instability. Daycare centers and schools shut down, making it difficult for parents to leave the house for work. COVID-19 forced workforce development to support individuals beyond their need for a reliable paycheck in more comprehensive ways like transportation and housing support services. It also resulted in new ways of thinking about employment, like the widespread shift to remote work and the potential for preparing for the workforce of tomorrow, looking at new fields and opportunities to bring innovative businesses to the state.

Traditional workforce development efforts were designed around job placement, with employment being the primary goal. More recently, workforce development efforts around the country have shifted to programs that ensure long-term success for job seekers and improvements in the workforce. Long-term success for job seekers means long-term success for employers.

The Delaware Workforce Development Board (DWDB) leads statewide efforts to align resources and initiatives to serve individuals with the highest barriers to employment effectively. In the past few years, much of their work has focused on understanding the changing needs of the workforce and the employment opportunities in Delaware.

Since 2018, Social Contract has partnered with the DWDB to create a new way of approaching workforce development that meets the needs of both employers and employees and is firmly grounded in equity, research, data collection and analysis, and strategic planning.

“Our primary focus will always be on high-quality job placement,” explained Joanna Staib, executive director of the DWDB. “The myriad of challenges stemming from the pandemic made it clear we needed to connect job seekers with additional support like subsidized wages, housing assistance, childcare, case management, transportation assistance, and more. Social Contract has been instrumental in helping us put these pieces together through a variety of initiatives. When housing and transportation aren’t an issue, people can complete training programs, stay at jobs, and grow in the workforce.”

In addition to strengthening existing workforce development programs, Delaware is part of a regional effort to add a new industry to the state: renewable energy.

The Mid-Atlantic Hydrogen Hub (MACH2) initiative would bring thousands of jobs to Delaware by retrofitting existing manufacturing infrastructure and upskilling the current workforce. This effort is part of recognizing the need to change how the state looks for employers and employees alike. Scott Malfitano, DWDB board chair and vice president at CSC, sees the opportunity ahead. “We’re going to have to compete with other states for talent, businesses, and whole sectors, like renewable energy. The manufacturing industry has evolved, and there is enormous potential in the MACH2 project, especially with existing infrastructure and talent.”

Workforce development in Delaware has evolved to include critical partnerships with state agencies, private businesses, and the industries of tomorrow. Statewide and regional efforts led by the DWDB, the MACH2 initiative, and others are working to make bold changes in how stakeholders within the workforce development system work together.

Ron Berry is managing partner at Social Contract.