In today’s fast-changing economy, the traditional separation between workforce development and economic development is increasingly obsolete. Both fields ultimately pursue the same goal—prosperous communities supported by a thriving workforce and strong local businesses. But all too often, they operate in silos.
To meet the challenges of the 21st-century labor market, we must recognize a truth that many forward-looking communities have already embraced: workforce development and economic development are not just aligned goals—they are one and the same.
From Parallel Paths to Shared Purpose
Historically:
- Economic development focused on business attraction, infrastructure, and investment.
- Workforce development emphasized training, upskilling, and connecting jobseekers to employment.
But businesses cannot grow without a talent pipeline, and workers cannot advance without opportunities. The goals of both systems are tightly intertwined. As U.S. Commerce Secretary Gina Raimondo put it:
“You can’t have a successful economic development strategy without a workforce strategy. The two have to be integrated. Otherwise, you’ll never meet the needs of employers—or the needs of workers.”
The Brookings Institution reinforces this connection:
“Regions with strong alignment between economic and workforce development see better employment outcomes and more resilient labor markets.”
— Brookings, “Reimagining Workforce Policy in the United States,” 2020
When the Two Act as One: Success in Action
Communities across the U.S. are taking bold steps to integrate these efforts—some even structuring their organizations to function as a single system. Here are some standout examples:
🔹 TalentFOUND – Colorado
A statewide talent development network aligning education, workforce, and economic development under a unified vision.
🔹 Greater Louisville Inc. – Kentucky
GLI serves as the region’s chamber of commerce and a driving force for both economic and workforce development. Its integrated efforts include:
- Live in Lou, a talent attraction and retention campaign with job listings and relocation support.
- The Workforce Ecosystem Hub, connecting employers and job seekers to 245+ local training and support organizations.
- Talent Pipeline Management (TPM), aligning training with industry demand.
- Academies of Louisville, providing high school students with career-themed education.
- SummerWorks, creating early employment opportunities for youth.
🔹 San Diego Workforce Partnership
A nonprofit workforce board aligning training, equity, and employer engagement with regional economic development priorities.
🔹 Chattanooga 2.0 – Tennessee
A cradle-to-career public-private partnership that links education, workforce, and economic growth strategies.
🔹 The Fund for Our Economic Future – Northeast Ohio
A regional collaborative focused on job quality, inclusive employment, and competitiveness through shared workforce and economic goals.
- Other noteworthy models include:
- Houston-Galveston Area Council
- WorkSource Atlanta Regional
- Skillful (Markle Foundation)
Global Perspectives: International Models That Combine Workforce and Economic Development
Countries around the world have adopted integrated systems where workforce development fuels national and regional economic strategies. These models offer lessons for the U.S. and beyond.
🌐 SkillsFuture – Singapore
Led by the Ministries of Education and Manpower in coordination with the Economic Development Board, SkillsFuture blends lifelong learning, upskilling, and national economic planning.
Employers help shape curriculum for priority sectors.
Programs align directly with industry growth areas like tech and biomedicine.
Foreign investment attraction is tied to the availability of a skilled workforce.
Impact: Increased workforce adaptability and global competitiveness.
🌐 Regional Skills Leadership Groups – New Zealand
Created by the Ministry of Business, Innovation & Employment, RSLGs bring together economic developers, iwi (Māori leaders), educators, and workforce planners to shape talent strategies.
- Labor market planning reflects regional economic priorities.
- Education adapts to employer input.
- Local strategies include Indigenous and underserved communities.
Impact: Inclusive regional development anchored in talent alignment.
🌐 Denmark’s Flexicurity Model
This model combines labor market flexibility with strong public investment in upskilling and retraining, coordinated with economic transformation goals.
- Workers move quickly between jobs with minimal unemployment.
- Reskilling aligns with green tech, digitalization, and innovation strategies.
- Collaboration between government, unions, and employers is embedded.
Impact: One of Europe’s most resilient, adaptable labor markets.
Policy and Leadership Actions: What to Do Next
To move from theory to impact, leaders must adopt deliberate integration strategies:
For Policymakers:
- Align public funding across systems.
- Support joint planning with shared outcomes and performance metrics.
- Modernize data infrastructure to support cross-agency planning.
- Require economic and workforce collaboration in grant applications.
For Regional Leaders and Practitioners:
- Form joint task forces and shared governance bodies.
- Host sector roundtables that involve business, workforce, and economic stakeholders.
- Create shared metrics beyond job placement or business investment—include quality, equity, and retention.
- Co-brand talent and business services to signal one system to employers and the public.
Conclusion: It’s Time to Lead Together
We are entering a defining moment—one where prosperity, equity, and resilience depend not on isolated efforts, but on unified strategies that reflect the complex realities of today’s economy. Workforce development and economic development are not separate pursuits. They are part of the same system—and our communities can no longer afford to treat them otherwise.
The challenges we face—skills gaps, automation, demographic shifts, and economic uncertainty—require more than collaboration. They demand alignment, shared accountability, and joint action across sectors. Economic developers, workforce leaders, educators, employers, and policymakers each hold a piece of the puzzle. But it is only by bringing those pieces together that we can build lasting solutions.
The question is no longer “Who leads?” but rather, “How do we lead together?”
This is the opportunity before us: to create integrated systems where business growth and human potential are developed in tandem—where economic strategies are built with talent in mind, and talent strategies are designed with the future of work at the center.
Communities that embrace this mindset will not only compete more effectively but will offer more of their residents a genuine chance to participate in—and benefit from—economic growth.
Let’s not just coordinate. Let’s commit.
Let’s not just connect systems. Let’s reimagine them as one.