The panel urges creation of a new Alabama Workforce Authority and greater collaboration with the private sector, among other recommendations.

A commission created by the Alabama Legislature and led by Lt. Gov. Will Ainsworth today released a reform plan designed to “fundamentally transform Alabama’s workforce development initiatives.”

The Lieutenant Governor’s Commission on 21^st Century Workforce was established in 2019. Its focus: to identify ways to boost Alabama’s low labor-force participation rate while also improving the competitiveness of Alabama workers.

“Alabama is the economic recruitment leader of the Southeast, but to maintain our competitive edge, we need historic, transformative changes to our workforce development system,” Ainsworth said in a press release. “Our commission has created a plan to align our job-training efforts so Alabama can seize new opportunities and connect all Alabamians with 21^st century employment. With these reforms, we can make Alabama’s workforce development the envy of the nation.”

State Senate President Pro Tem Greg Reed joined the lieutenant governor at a press conference in Montgomery today to announce the proposed reforms, along with other commission members, including state Reps. Danny Garrett of Trussville and Kelvin Lawrence of Hayneville. Business Council of Alabama President and CEO Helena Duncan attended the press conference, as well as other legislators.

Reed said workforce development reforms will be a major priority in the upcoming legislative session that begins Feb. 6.

“We need to effectively recruit, train and employ Alabamians for the in-demand jobs of today and the jobs of the future,” Reed said in the press release announcing the proposed reforms. “We can get people off the sidelines, back into the labor force and into skilled jobs that will provide meaningful careers and family-sustaining incomes.”

Garrett added: “Alabama is witnessing record-breaking economic growth and historically low unemployment rates, but our labor force participation rate is among the worst in the nation. Our workforce development system must innovate if we want to provide opportunities to more workers.”

Among the commission’s recommendations:

• Merge workforce development agencies – The report recommends consolidating the Alabama Department of Commerce workforce development division, the state’s AIDT workforce training arm and the state Department of Labor into a new Alabama Workforce Authority (AWA) to be led by a cabinet-level secretary of workforce development appointed by the governor. The AWA would be governed by a nine-member board of directors who would advise the governor and Legislature on workforce priorities and help hold state agencies accountable. The authority also would develop a regularly updated plan for how state agencies can coordinate recruiting, training and employment of Alabama workers, including benchmarks to measure the success of the state’s workforce-related agencies.
• Create a “Workforce Pathways Diploma” and reinvest in county career tech centers – The commission recommended highlighting the value of career and technical education (CTE) by developing a diploma pathway that supports students accessing skills training during high school. It also recommended reinvesting in county CTE centers to prepare students for in-demand careers.
• Recruit for in-demand jobs – The commission recommended the state increase and centralize funding within the new AWA for recruiting disconnected and underemployed individuals to help fill in-demand jobs. AWA and its recruitment partners would work to identify and provide information about pathways and training opportunities to people who are likely to reengage with the workforce.
• Address barriers to employment – The AWA would seek to address barriers to employment by centralizing funding for non-governmental organizations that provide services to job seekers, and coordinating their efforts across the Alabama workforce development system.
• Ease access to scholarships for military transition – The commission recommended engaging state and federal leaders to remove barriers that prevent former, active and reserve military members from accessing training funds they are entitled to, which can lead to meaningful careers.
• Childcare tax credits – The commission recommended developing tax credits that incentivize employers to fund childcare and incentivize childcare providers to expand access and quality. The credits would be available to employers that provide on-site childcare or stipends to their employees to cover childcare costs.
• Mental health and addiction diversion programs – The commission recommended empowering law enforcement, district attorneys and judges to develop or expand low-cost and no-cost programs that help individuals access treatment and recovery programs to help get them back on the path toward rewarding careers.
• Housing tax credits – The commission recommended creating housing tax credits to help spark construction and refurbishment of workforce housing units.

Will Ainsworth heads the Lieutenant Governor’s Commission on 21st Century Workforce. (contributed)

Also serving on the lieutenant governor’s workforce commission are Alabama Power CEO Jeff Peoples, PowerSouth Energy Cooperative CEO Gary Smith, state Sens. Dan Roberts, Donnie Chesteen, Linda Coleman-Madison and April Weaver, and state Reps. Joe Lovvorn and Debbie Wood.

“It has been an honor to serve with such a knowledgeable and engaged group of leaders who are dedicated to improving our state,” Ainsworth said. “Our work does not end with this report but when these reforms become law and change Alabama for the better.”