Barely a day goes by without a new headline about the potential of artificial intelligence to dramatically change the workforce and the economy. AI can write code and generate photorealistic images. Algorithms can help diagnose diseases with remarkable precision. The pace of change is staggering, and the truth is that no one can say with certainty where this technology will lead or what jobs it will ultimately transform.
But here’s what we do know: change is accelerating quickly. And America’s education and workforce systems aren’t ready for it yet.
This is not a new problem. Long before AI entered the conversation, our education and workforce systems were failing too many Americans.
Walk into any factory, hospital or tech startup today and you’ll hear the same thing: talent is scarce. Student performance in our schools is shockingly low. The result is that millions of Americans are unemployed or underemployed and at risk of being left behind. For the first time in history, parents do not believe that their children will be better off than them.
What the United States has is a disconnect between the preparation of the workforce and the jobs of today and tomorrow. What we’re missing is a national strategy to connect people to opportunities.
I’ve led education and workforce initiatives for more than two decades, and one lesson stands out: While our economy has evolved dramatically, our institutions have remained largely the same.
The numbers tell a compelling story: seven in ten employers report that they cannot fill current vacancies. Thirty-seven million Americans have some college education but no degree, contributing to 50% of college graduates being underemployed one year after graduation. One in three employers say their average worker doesn’t have the skills needed to do the job. And gaps in child care could cost the economy as much as $329 billion over the next decade in lost productivity, labor shortages, and lower earnings and revenues.
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These failures predate the AI era, but AI has made the urgency clear. If we can’t reliably prepare workers for the jobs that exist today, how can we prepare them for a workforce transformed by technology we can’t yet fully imagine?
I’ve led education and workforce initiatives for more than two decades, and one lesson stands out: While our economy has evolved dramatically, our institutions have remained largely the same.
The answer is not to wait and see what happens. It’s about building a workforce and talent system that is flexible, adaptable and resilient enough to support our people and meet what comes next.
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That’s why last February, the Bipartisan Policy Center, which I lead, launched the Commission on the American Workforce. We brought together Democrats and Republicans, governors, business leaders, education leaders and others. After a year of intensive research, we have created a blueprint. Our recommendations are based on three imperatives that address the core of America’s labor market challenge.
First, we need a coherent federal personnel policy.
Today, federal dollars are spread across dozens of programs, each measuring their success differently. States closest to employers and education providers need a federal partner that provides coherence and clear direction.
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We recommend establishing a Talent Advisory Council to integrate fragmented federal programs and create a shared national strategy. We have a national security strategy and an economic strategy. We also need a talent strategy: a plan for our people.
Second, we must prepare students for success.
Students deserve a clear path from high school to education to employment. This means modernizing the way we measure and report progress so that families have real-time data on which programs are leading to jobs and good income.
It means redesigning high schools to offer career paths beyond college preparation, not just college preparation. It means portable credentials that employers recognize, such as production or nursing credentials. And it means navigation tools so families understand their options: What are the costs? What is the return on investment? How long does the training take? What jobs are available?
Third, we must remove the barriers that prevent people from working and learning.
When childcare costs more than a mortgage and paid leave doesn’t exist, families suffer and miss out on opportunities. We need affordable child care so parents can work and families can thrive.
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We need paid family leave so workers don’t have to choose between a newborn and a paycheck. We need skills savings accounts: portable, tax-advantaged tools that allow workers to save for training and upskilling. Likewise, new “Trump Accounts” can help families invest in and pay for educational opportunities.
Artificial intelligence and automation are transforming work faster than ever, and skills requirements are changing in real time. Countries that lead the way and build integrated talent systems will attract business and investment. We are in a global competitive battle. Others are making strategic investments and accelerating. The United States is in danger of falling behind.
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Our K-12 system does not prepare students for adaptability and critical thinking. Our postsecondary system is not agile enough to respond to changing demands. Our labor system is fragmented. Our data is fragmented. Our support for working families is fragmented.
We have to ask ourselves: Do we want to continue to put a band-aid on a 20th century workforce system that wasn’t built for the 21st century? Or will we finally do the hard work to prepare for the future?
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The Commission’s recommendations are practical, twofold and actionable. They require coordination and investment, but much less than the cost of doing nothing.
The question is not whether AI will change the workforce. That is true, and it will remain so. The question is whether we will be ready for it. At the moment we are not. But it can be done – if we are willing to take action.
