The case for employer leadership in workforce development systems
Why the workforce development ecosystem isn't producing the outcomes the country needs — and how positioning employers as leaders in the system can fix it.
01 — Goals
What a well-functioning workforce development ecosystem delivers
The goal of public investment in education and workforce development is straightforward: learners should be able to reach good jobs, and employers should be able to find the talent they need. These outcomes are two sides of the same coin.
Learners reach good jobs
People who complete education and training programs move into jobs that exist, earn family-sustaining wages, and build careers with room to grow. The investment learners make in their education connects to real economic opportunity.
Employers have the workforce they need
Businesses can hire the workers they need to fill open roles, sustain operations, and grow — directly from public education and training programs. A skilled, well-matched workforce enables employers to thrive and contribute to healthy regional economies.
But across the country, those outcomes are not being achieved — at meaningful scale, and with serious consequences for both sides of the system.
$139B
Annual federal investment in postsecondary education and training
This funding spans Pell Grants, federal student loans, workforce training programs, apprenticeships, and career and technical education.
Underemployed at year one. Still underemployed a decade later.
More than half of recent four-year college graduates are underemployed one year after graduation; 45% remain underemployed ten years later. For most, the first job sets a ceiling that doesn't move.
Projected gap in postsecondary-educated workers, 2024–2032
18.4 million experienced workers with postsecondary education will retire. Only 13.8 million younger workers with equivalent qualifications will enter the labor market.
The country spends more than enough money on workforce development systems to produce different results. But too many learners graduate underemployed, and too many essential sectors can't find the workers they need. These aren't separate problems. They are two sides of the same systemic failure — a workforce development ecosystem that cannot translate learner willingness to train and employer willingness to hire into the skilled workforce the country needs.
02 — Diagnosis
Employers are the missing link
Workforce development systems fail to deliver when programs don't train people for what employers actually need. And that gap exists because the people best positioned to close it — employers themselves — are not meaningfully part of the decisions that shape the education and training programs that get built.
Employers know things the system cannot know on its own. They are the only actors in the system with direct, current knowledge of how the labor market is changing on the ground. And they hold something no other actor can supply: the workplace itself — the setting where on-the-job training, apprenticeship, and work-based learning happen.
Which jobs they're hiring for now and next
Employers see hiring needs in real time, including emerging occupations and shifts that haven't yet appeared in published labor market data.
Which skills the jobs actually require
Employers know the competencies and technical skills that matter for entry-level roles and career progression in their sector — and how those expectations are evolving.
Which credentials carry real value
Employers see which credentials they actually use in hiring and which they consider proxies of limited value — distinguishing signal from noise in a crowded credential marketplace.
How to actually train people for the work
Employers know what real on-the-job learning looks like, how workers progress through their first months and years, and which training models prepare people to succeed.
None of this knowledge consistently reaches the people designing public training systems. Programs get built around what institutions can already run, what fills classroom seats, and what last year's labor data showed — not a current, ground-truth read of what employers actually need.
This isn't because the system isn't trying to listen. It is — through tens of thousands of advisory committees, surveys, and signature requests every year. The problem is that what employers share in those settings rarely changes what programs actually train people for.
03 — Today's reality
Why employers aren't a meaningful part of the system today
Many would argue employers are a meaningful part of workforce development systems — they sit on tens of thousands of local advisory committees across the country, providing the sign-off required for funding compliance. They're asked at a similar scale to participate in thousands of disparate workforce programs and efforts. The result is a model of employer engagement that is compliance-oriented and focused on filling "slots" — one that does not produce a system where employers truly shape what gets designed and built.
A system can only produce the talent employers need — and the jobs learners need — when employers have a true seat at the table, with real recommendation and decision-making authority. Today, employer engagement across the U.S. largely lives at the lowest, least consequential level on the spectrum of possible employer roles. The framework below describes that spectrum, from the lowest level of authority to the highest. The further right on the spectrum, the more directly employer voice translates into actual change in what the system funds, approves, and builds.
The spectrum of possible employer roles in the workforce development ecosystem
01
Participate
"We sign off and show up."
Employers validate programs through required compliance and sign-off processes, and participate in programs the system has already designed.
Examples
CTE and community college program advisory boards
Local workforce boards under WIOA
Hosting work-based learning for programs built without employer input
This is the dominant U.S. model. Employers validate and participate only after decisions are made — engagement stays fragmented and often ends in disengagement over time.
02
Advise
"We give strategic input when asked."
The system brings strategic questions to employers; employers provide expert input that informs the system's decisions.
Examples
Advising on sector-wide implications of strategic priorities (e.g., Workforce Pell)
Advising on how to implement system priorities (e.g., expanding work-based learning)
Engagement is strategic, not compliance-oriented — but employers respond to questions the system shapes; they don't set the agenda themselves.
03
Recommend
"Our input is formalized."
Employer bodies are charged with making structured, official recommendations that states must consider.
Examples
Recommending priorities for program and pathway development
Recommending policy or regulatory changes that affect workforce pathways
Recommending training plans for the on-the-job components of programs
Employer input has weight and is embedded into decision-making processes — but the state retains final authority.
04
Decide
"We hold defined authority."
Sector-aligned employer bodies have formal decision-making power over specific system elements.
Examples
Determining which occupations are in demand
Defining the skills and competencies those jobs require
Identifying which credentials carry genuine labor market value
Deciding where training takes place (e.g., on the job or in a classroom)
This mirrors high-performing global systems. Authority is collective, transparent, and accountable.
Today's reality
Most employer engagement within U.S. workforce development ecosystems falls within the Participate model — the lowest level on the spectrum. It happens through compliance and sign-off committees that produce no strategic input and carry no real authority over what the system funds, approves, or builds.
What "compliance-oriented" looks like at scale
A landscape analysis conducted in Washington state in collaboration with the Partnership for Learning illustrates the scale of the engagement system that has emerged from layered federal and state requirements: in Washington alone, an estimated 2,900 standing employer advisory committees generate roughly 9,000 meetings per year across more than 300 public institutions — most of which exist primarily to satisfy reporting requirements. The touchpoint map below documents more than 65 distinct types of requests Washington's public workforce system makes of employers. Hover any dot to see what it is, or open the full landscape analysis using the link below.
What today's compliance-driven employer engagement produces
When employer voice doesn't carry the authority to shape what the system funds, approves, and builds, the same three outcomes follow — and they compound over time.
Programs train for the wrong things
Programs are built around what institutions can already offer — not around where employers are actually hiring.
Curricula lag behind industry change by years — especially as AI and automation reshape skill demands.
Credentials proliferate without clarity — about which ones carry genuine labor market value.
Public dollars get directed to occupations that aren't in demand — or no longer are.
Learners and employers both bear the cost
Learners graduate underemployed — accumulating debt without proportionate economic payoff.
Essential sectors face chronic, widening shortages — nursing, teaching, skilled trades, and more.
Time-to-fill stretches and positions sit open — capping employer growth and overloading the workers who have to cover the gap.
Public investment produces declining returns — for learners, employers, and taxpayers alike.
Trust in public institutions erodes
Employers build their own training and credentialing solutions — outside the public system, to get the workforce they need.
Public programs get less work-based learning — employers rarely host or hire for programs they had no role in designing.
Communities lose access to essential services — workforce shortages limit who can deliver healthcare, education, housing, and public goods.
Confidence in the public sector's ability to deliver fades — even as reliance on it grows.
Employers find their own workarounds — outside the public system
When the public system can't be a reliable partner, employers organize the engagement they need on their own. Two of the country's most established employer-led models prove the point — but only at the scale of the institutions willing to partner directly with each one.
Talent Pipeline Management is the U.S. Chamber of Commerce Foundation's methodology for organizing employers into industry-led collaboratives that articulate workforce demand and manage talent supply chains. Since launching in 2014, TPM has trained roughly 90 employer-led collaboratives across the country to engage education providers as suppliers and build shared talent pipelines. The model produces real results — but its impact lives in individual partnerships with specific colleges and providers, with no built-in mechanisms offered by public systems to partner on what employer coalitions prioritize or how they deliver value to learners and employers.
FAME USA — the Federation for Advanced Manufacturing Education — is a manufacturer-governed network that trains Advanced Manufacturing Technicians through a two-year work-study program at community colleges. Launched by Toyota in Kentucky in 2010 and now housed within the Manufacturing Institute, FAME operates 45 employer-led chapters across 17 states, each one a partnership between local manufacturers and a specific community college. The model proves employer leadership delivers — but engagement happens institution by institution, because the broader public system remains too complicated and bureaucratic to partner with at scale.
Working around the system gets a small portion of the nation's employers what they need; it cannot change what the system does at scale. The billions in public training dollars — and the vast majority of students those dollars reach — stay inside the system employers have chosen to avoid, still spent against the wrong signal.
05 — The solution
How employer leadership addresses these challenges
The answer isn't more engagement, more committees, or more goodwill. It is a structural shift — from employer engagement to employer leadership.
Employer leadership in workforce development means representative groups of employers share real, defined recommendation or decision-making power with public partners to shape the strategies, investments, and pathways that help learners reach good jobs.
Employer leadership has two main components — each is necessary; together, they enable the structural shift the system needs.
Component 01
Representative employer engagement
The system engages employers through sector-level structures that aggregate the voice of the whole industry, rather than relying on individual employers raising their hands one at a time. Without a representative voice, the system can't act with confidence on what it hears.
Component 02
Clear roles and authority
Employer voice — once it's representative — carries real, defined authority to shape priorities, investments, and pathways. The system commits to act on what employers recommend or decide. Without authority, even the best-organized employer voice changes nothing.
How employer leadership differs from employer engagement
Today, employer engagement — not employer leadership — is the primary model for including employers in workforce development. It happens through the tens of thousands of advisory committees across the country, but it sits at the lowest, least consequential level of the spectrum. The distinction between engagement and leadership is structural, not rhetorical. Engagement gathers input on plans already made. Leadership gives employers a real role in shaping those plans — paired with shared responsibility for outcomes.
Dimension
Employer engagement
Employer leadership
Posture
Reactive — employers are asked to validate or participate in programs already designed by the system
Proactive — employers bring priorities and program solutions to the system
Voice
Individual — each firm is consulted separately, no sector-level aggregation
Representative — sector intermediaries speak for the whole industry with one voice
Driver
Compliance — committees exist to satisfy reporting requirements
Strategy — structures exist to shape priorities, investments, and program design
Authority
Advisory — input may or may not shape what the system actually builds
Decision-making — input carries the power to shape what the system builds and funds
Direction
One-way — employers give input; the system decides whether to act
Two-way — the system commits to documented responses to employer recommendations
Success
Activity — measured by seats filled and meetings held
Outcomes — measured by whether graduates reach good jobs and employers find skilled workers
Scope
Fragmented — input stays within each program or institution that collected it
Aggregated — sector-wide input informs state-level decisions and investments
Training
Solo — programs recruit work-based learning hosts one employer at a time; employers who want to train design programs alone
Shared — participation is encouraged by organizations employers trust; the sector provides common training plans employers can adopt
Exchange
Voluntary obligation — employers participate without guaranteed return
Defined partnership — employers contribute; the system provides authority and responsiveness
06 — Component one
Representative employer voice — through sector intermediaries
The primary way to achieve representative employer voice at the scale the system needs is to authorize and fund employer-led sector intermediaries — industry associations, employer coalitions, sector partnerships — as core workforce infrastructure.
This is a case for sector intermediaries to be embedded as core workforce infrastructure — not treated as another program delivery mechanism or support service. The field already invests heavily in learner-focused intermediaries and connective tissue — program intermediaries, career navigators, wraparound supports — and increasingly treats that work as core infrastructure rather than as overhead. These learner-focused intermediaries make sense of the education and workforce landscape on each student's behalf, translate a confusing set of credential and career options into a clear path forward, and broker the connections — to programs, supports, and employers — that help learners complete their credentials and land in good jobs.
The system has not extended the same logic to the employer side. Sector intermediaries do for employers what navigators do for learners — they navigate the workforce landscape on the employer's behalf, distill hiring needs into a clear signal the system can act on, and build the partnerships that help employers connect to the talent they need. Without them, employers are left to navigate the system on their own, and the system hears scattered input from individual employers rather than a clear picture of what the sector actually needs.
The field treats learner-centered intermediaries as core workforce infrastructure, but we don't have the sector intermediary equivalent. And learners ultimately bear the cost. Without sector intermediaries shaping what the system trains for, programs prepare students for credentials that don't pay off and occupations that aren't in demand — students accumulate debt and graduate into fields where the jobs they expected don't exist. The fix to employer engagement is the same fix to student outcomes — they are two ends of the same problem.
What sector intermediaries can do — ten roles
With real authority and durable funding, sector intermediaries can play a range of roles the current system has no single body equipped to fill. Click any example role below to see what it looks like in practice.
Real, defined authority — across what the system prioritizes, approves, and funds
Representative voice is necessary but not sufficient. For employer leadership to actually shift outcomes, that voice has to carry defined authority over the decisions that matter most to hiring outcomes — and the system has to be built to act on what it hears.
The framework below describes what employer authority looks like in practice — for both sector-level organizations (industry associations, employer coalitions) and individual employers — and the system responsibility that has to be paired with each level. Authority without system responsiveness is symbolic. Voice without authority is advisory. Real employer leadership requires both.
Employer authority
⚙️System responsibility
·Authority type
🏭Sector-level organizations
🏢Individual employers
Decide
Employers determine; the system is designed to act on this information
Determine which occupations are in demand
Define which skills and competencies are required for those occupations
Identify which credentials hold genuine labor market value
Decide whether and how to promote workforce programs to employers
Decide whether to participate in and hire from workforce programs
Determine how to train workers on-the-job
Prioritize public funding and approval for programs aligned with employer-determined demand
Develop curricula based on employer-defined skills and competencies
Offer and implement workforce programs employers are willing to use
Recommend
Employers proactively bring priorities and proposals; the system reviews and acts
Recommend education and training pathways needed (state and institution level)
Recommend shared training plans for the on-the-job components of programs (e.g., apprenticeship, work-based learning)
Recommend program capacity changes needed (state and institution level)
Recommend workforce system service changes needed (state and regional level)
Recommend policy and regulatory changes needed to advance workforce priorities
Recommend education and training pathways needed at the institution level
Recommend program capacity changes needed at the institution level
Recommend workforce system services needed at the regional level
Provide formal mechanisms to receive employer recommendations and make a documented decision on each one
Determine investment levels in public education and training pathways based on employer recommendations
Recognize employer-delivered training aligned with recommended plans — counting it toward program requirements, hours, and credentials
Advise
The system brings specific questions to employers; employers respond
Advise on sector-wide implications of strategic policy priorities (e.g., Workforce Pell implementation)
Advise on how to implement specific system priorities (e.g., expanding work-based learning)
Advise on context-specific considerations of system priorities by employer size, geography, or industry segment
Present questions and information in a way that is clear and actionable for employers
Communicate employer feedback across all relevant systems and stakeholders
Make decisions based on employer advice received
Participate
Employers participate in required processes and provide sign-off where needed
Review program curricula, equipment, and professional development standards at the state level, providing sign-off where required for compliance purposes
Review regional adaptations to programs, curricula, equipment, and professional development, providing sign-off where required for compliance purposes
Review regional adaptations to workforce system service plans, providing sign-off where required for compliance purposes
Present information clearly and accessibly to participating employers
Communicate employer feedback across all relevant systems and stakeholders
Implement curricula and programs based on employer approval
Two design principles run through this framework. First, sector-level organizations hold the most authority on questions that require aggregated, representative input — what's in demand, which skills matter, which credentials carry value. Individual employers hold authority over their own hiring and training decisions, plus localized validation. Second, every level of authority carries a paired system responsibility. Employer voice with no system to act on it is the model that produced today's outcomes — programs misaligned with hiring demand, learners underemployed, and essential sectors short on talent.
08 — Global precedents
This is what high-performing global workforce development systems do
Employer leadership in workforce development systems is not a theory. The countries with the strongest workforce outcomes in the world have built their systems around it.
Switzerland
Sector-organized employers set occupational standards
Employers, organized by sector, determine occupational standards and training content — including the standardized on-the-job training plans that companies across each sector deliver against. Apprenticeship is the primary pathway into the workforce.
~70% of youth enter the workforce through employer-led apprenticeship pathways.
Singapore
Industry Skills Councils co-determine credentials
SkillsFuture — Singapore's national upskilling system — gives Industry Skills Councils formal authority to co-determine credential frameworks, approve courses, and govern public training investments. The result is one of the most adaptive workforce development systems in the world.
Employer-aligned training reaches nearly every working-age citizen.
Germany & Austria
Chambers and guilds hold formal authority
Employers organize through chambers, guilds, and sector associations that hold formal decision-making power over curriculum, assessment, occupational standards, and program quality. The design varies — but the principle is constant: employers help lead the system, not just advise it.
Youth unemployment is among the lowest in Europe.
Each of these systems makes different design choices. What they share is the structural commitment that distinguishes employer leadership from employer engagement: employers, organized by sector, hold formal authority over the decisions that determine what the system funds, approves, and prioritizes.
09 — In practice
And more importantly — this is already happening in the U.S.
Across the country, real examples of employer leadership are beginning to emerge. Three distinct models stand out — they differ in how much authority the system grants employers. The case studies below illustrate what they look like in practice. Click any case to expand the detail.
01
Catalytic employer coalitions
Time-bound (or goal-bound) employer coalitions that mobilize around a priority problem and use convening power, commitments, and advocacy to drive a specific outcome.
Objective: Achieve a defined outcome by mobilizing employer leadership to drive change across institutions, agencies, or policies.
Alabama · Nursing
How employers unlocked a statewide nursing apprenticeship Active
Two industry associations turned scattered hospital needs into a signal the state could act on.
▾
In 2019, Alabama faced a severe nursing shortage in a tight labor market — and, at the same time, was turning away capable adults who wanted in. The traditional path into nursing required long stretches of unpaid clinical work, which effectively barred anyone who couldn’t afford to stop earning a paycheck. The state’s apprenticeship agency and community colleges tried to build an earn-and-learn nursing apprenticeship to fix that, but the effort stalled. The reason was revealing: the Board of Nursing was hearing about the idea almost entirely from public partners — agencies and training providers — not from the employers who would actually hire and train the nurses.
The breakthrough came when employers stepped to the front. The Alabama Hospital Association and the Alabama Nursing Home Association organized hospitals, nursing homes, and long-term care providers into a single, unified voice. With employers leading, the associations worked with the Board of Nursing to design a new student-nurse license — and worked with the legislature to grant the Board the authority to create it. Employers then served as the subject-matter experts who defined the training model and the scope of practice that would make apprenticeships workable in real clinical settings. They also committed to the part that matters most: hiring the apprentices and covering last-dollar training costs.
What changed wasn’t the idea — it was who was asking for it. The Board and legislators moved once employers, not agencies or schools, were the ones requesting the change. And because the two associations already credibly represented employers statewide, they could turn a patchwork of individual needs into a clear demand signal policymakers could act on.
The result
The pathway is now established and scaled, enrolling more than 1,000 nurse apprentices across roughly 90 employers and 28 participating colleges and universities. It is reaching exactly the people the old model shut out: just over half of apprentices are over 24, with some as old as 60. Employer engagement has stayed strikingly high — a 99% survey-response rate among participating employers — and the associations are now identifying which occupations to extend the model to next. The state’s apprenticeship office has since adopted a simple rule learned here: an employer must initiate or endorse an occupation before any program design begins.
Phoenix · Healthcare
How nine hospitals turned shared demand into training capacity Active
A chamber-backed coalition specified exactly what it needed — and the public investment followed.
▾
Phoenix-area hospitals were running into a hard constraint: not enough specialty nurses to staff the units they needed to expand. There were few accessible ways for working registered nurses to gain specialty skills without leaving their jobs, and while the hospitals talked regularly about the problem, the missing link was turning conversation into coordinated action with an education partner and real public investment.
The Greater Phoenix Chamber Foundation supplied that link. It convened nine hospitals into a structured, employer-led collaborative — built on the Talent Pipeline Management model — and had them align around shared priorities. Using their own hiring projections, the hospitals sharpened a vague “we need nurses” into something far more useful: the real shortage was in specialty nursing, and they named six specialty areas as most urgent. That precision is what made the demand actionable.
With the hospitals aligned, the Chamber Foundation connected them to the Maricopa County Community College District. When the college lacked the facilities and resources to launch the new specialty programs, the hospitals and the college co-developed the program requirements together and made a joint, data-backed case to policymakers for the capacity to deliver them. Because the ask came from a coordinated coalition speaking with one voice — not nine separate hospitals making nine separate requests — it carried real weight.
The result
The case — grounded in employer demand data and the college’s readiness to deliver — secured nearly $6 million in state funding to stand up the new programs. Within roughly a year, more than 300 incumbent nurses had completed training in the first two specialty areas. The collaborative has continued, shifting from launching those first programs to identifying the next shared priority.
02
Standing sector tables shaping programs
Employers organized in a durable, occupation- and program-focused sector group that strategically improves program design and delivery over time.
Objective: Establish an ongoing employer–provider feedback loop outside of compliance-focused structures to improve regional program and pathway design.
Multi-state · Advanced Manufacturing
How employers built an employer-led technician pathway Active
A federation of local employer-college chapters has spent 15 years proving what employer-owned program infrastructure can produce.
▾
Manufacturers across the country face persistent shortages in maintenance and technician roles — jobs that require years of intentional development to fill well. Most community college programs aren’t designed or resourced to deliver the integrated technical, lean-manufacturing, and professional preparation those roles actually need. Individual employers can train their own workers, but the patchwork is expensive, inconsistent, and doesn’t build a portable workforce.
FAME USA, housed within the Manufacturing Institute, solves this by treating the program as employer-owned infrastructure rather than a curriculum employers advise on. The organization supports a federation of 45 local chapters, each made up of employers and a community or technical college partner. FAME USA supplies the proven framework, the playbook for forming new chapters, and a national peer-learning network. At the chapter level, employers tailor the Advanced Manufacturing Technician (AMT) curriculum to regional needs and lead the program in their area.
The structure works because employer voice is concentrated in chapter-level coalitions, not in advisory roles after programs are designed. The 15-year-tested model removes ambiguity for new employers: there is a defined investment, a clear progression, and a documented expected value — rather than a vague ask to “help shape” a program. To make the workforce portable across employers, FAME requires that students earn an Associate’s Degree, not just an employer-specific certificate.
The result
The model has scaled to 45 chapters across 17 states, with roughly 500 employers participating and approximately 2,700 students completing the program since 2012. Where chapters are well-staffed and well-supported, employer participation deepens over time rather than fading.
Orange County · Healthcare
How CEOs built a healthcare coalition public investment now follows Active
Quarterly CEO-led meetings turned fragmented hospital systems into a regional sector strategy.
▾
Orange County’s healthcare employers had been dealing with persistent shortages for years — in Radiologic Technology, Surgical Technology, RNs, physicians, MA-to-LVN-to-RN career ladders, and behavioral health. Workforce decisions, though, were fragmented. Programs were typically designed first, then employers were asked to advise after the fact. Hospital systems competed for the same constrained clinical placement slots and the same limited faculty. Nothing about the regional architecture pushed in the direction of coordination.
The CEO Leadership Alliance Orange County (CLAOC) Healthcare Coalition changed that by changing who was at the table. CEOs and senior executives — not just workforce or HR leads — convene quarterly to identify priority workforce shortages, define scaling strategies tied to projected hiring demand, surface clinical placement and faculty bottlenecks, commit operational resources like clinical training space and leadership time, and inform funding priorities before investment decisions are finalized. CLAOC plays the role of neutral convener — credible across competing health systems.
The combination of executive credibility and an employer-led model that listens to employer needs before designing solutions has shifted what would otherwise be fragmented pilots into a coordinated, CEO-governed regional strategy. Co-investment by the employers — operational resources, not just commentary — moves them beyond advisory roles into shared accountability for outcomes.
The result
Regional partners are now aligned around priority healthcare pathways, with employers committing executive time and operational resources to the work. Fragmented pilots have shifted into a coordinated regional strategy that funders and education partners can plan against. Sustaining backbone infrastructure without dedicated state intermediary funding remains the hardest part of the model.
California · Apprenticeship
How an employer-led network is rebuilding California apprenticeship Emerging
Regional industry committees are flipping the script — employers define what programs should exist, then partners build them.
▾
California’s registered apprenticeship system has long allowed employers to register their own programs, but most don’t — because the administrative burden is heavy and the benefits aren’t clear. Even when employers do register, programs often don’t plug into broader talent pipelines, leaving employers with a program on paper but too few prepared candidates coming through it.
The LAUNCH Apprenticeship Network is building a different model: employer-led, regional committees that set priorities for what apprenticeship programs should exist locally, define the standards those programs must meet, and create a clear “front door” partners can use to find the authorized employer table for an industry or region. The premise is direct: apprenticeship scales when the system does more of the enabling work, while employers hold clearer leadership over standards and design.
The shift in posture is concrete. Instead of schools approaching employers with “we have funding — here’s what we want to do,” industry partners can collectively say: “We know you have funding — here’s what needs to be true for us to participate.” That single change repositions employers from reactive advisors to active architects of what the apprenticeship system produces.
The result
The model is still being built statewide, but the proof points are early and concrete. A regional Technology committee in Riverside and San Bernardino Counties has grown to roughly 50 employers and supported approximately 700 apprentices over six years, with employer leadership deepening over time. The bigger question — whether the broader system will reliably recognize and respond to these employer tables — remains the next test.
New York City · Healthcare
How six NYC health systems are aligning to one employer voice Emerging
A unified employer cohort is taking the place of fragmented feedback that no education partner could act on.
▾
NYC’s healthcare employers were facing a familiar but persistent problem: candidates were arriving with credentials, but without the skills needed for entry-level success. Education partners — NYC Public Schools, CUNY, and others — wanted to respond, but couldn’t, because the feedback they were getting from employers was inconsistent and fragmented. When employers spoke individually about what graduates needed, no one had the credibility to drive coordinated change across K-12, higher education, and work-based learning.
Six major NYC health systems are now organizing as a unified cohort to fix this. Working with NYCPS, higher education partners, and funders — and with CareerWise playing a connector role — the employers are aligning first on priority occupations and readiness expectations, then using that alignment to drive coordinated changes across the systems that prepare candidates. The long-term goal is a shared-ownership ecosystem that isn’t dependent on a single intermediary; the near-term win is a coherent employer voice that the system can finally act on.
The most striking signal is that NYCPS explicitly named the problem of inconsistent employer messaging — and asked employers to align. That kind of system-side ask is rare, and it underscores how much value a unified employer voice can create when the system is genuinely ready to receive it.
The result
A standing employer cohort now exists, with employers aligned to begin defining priority occupations and readiness expectations. Education system partners are actively engaging and asking for coherent employer direction to guide program improvement decisions. The model is still building toward fuller scale, but the structural conditions for cross-system change are in place.
03
Statewide employer voice infrastructure
State-designed structures that ensure public agencies hear input across sector tables — and use that input to shape strategies or decisions.
Objective: Establish clear channels through which employers can influence system strategies or decisions.
South Carolina · CTE credentials
How South Carolina employers gained authority over credentials Active
Career-cluster employer committees now decide which credentials signal real workforce readiness — and the state’s accountability system follows their judgment.
▾
South Carolina’s CTE credential list had historically treated every credential as equivalent on the state’s school accountability report card. The result was predictable: students could meet the “career ready” threshold by earning credentials that bore little relationship to actual hiring. Schools were rewarded for credential volume; employers were left with graduates whose credentials told them very little about whether the holder was actually job-ready.
Beginning in 2023, the state Department of Education collaborated with SREB and the state’s Education Oversight Committee (EOC) to establish Technical Advisory Committees (TACs) in every career cluster — each required to have at least 51% industry membership, which prevents the TAC from being captured by education interests. The TACs review credentials, validate which ones reflect real workforce value, and tier them by employer judgment: Introductory, Intermediate, or Career Ready.
What makes the design powerful is that employer validation is connected directly to the accountability metric schools are scored on. As EOC Executive Director Dana Yow put it: “They are ultimately the users of these credentials. If something doesn’t have credential currency in the business community, they need to be telling that to the education system. We have a process in place to move that forward.” That process replaces what had been informal consultation with a documented, accountable approval chain.
The result
In June 2025, the EOC unanimously approved a new Tiered Credential System built on TAC validation, replacing the flat credential list with a three-tier hierarchy rooted in employer-defined workforce value. Employer documentation is now required for any credential submission, and low-use credentials have been flagged for review. SREB recognized the work with a 2024 State Leadership Award. The remaining open question is whether every TAC has the breadth of active industry membership needed to reflect true sector consensus rather than a small number of willing participants.
Washington · Statewide infrastructure
How a state built employer voice into the system itself Active
Washington funded sector intermediaries in statute — and let their demand signals steer public dollars.
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As Washington expanded its investment in career-connected learning, employer participation didn’t keep pace — and funding decisions were largely disconnected from what industry actually needed. The result was predictable: lower employer uptake and a weaker return on public dollars.
Rather than ask employers to engage more with the existing system, Washington rebuilt part of the system around them. Through Career Connect Washington, a public-private partnership, the state selected and funded ten trusted sector intermediaries — “Sector Leaders” — to convene employers, translate their hiring needs into concrete strategies, and coordinate employer-aligned growth across K-12, higher education, and registered apprenticeship. The state provided the connective tissue — funding, agency access, and technical assistance — while the intermediaries did the work of organizing employers and turning demand into system-ready strategy. The Sector Leader role was written into state statute, giving it legitimacy and staying power, and intermediaries were chosen competitively. To keep the work equitable, their recommendations had to demonstrate equitable outcomes for students, with regional partners weighing in to reflect local labor markets.
The defining feature is that employer input wasn’t advisory — it shaped where public money went. Washington’s Employment Security Department revised its grant-making criteria and processes to align with Sector Leader strategies, so the demand employers defined actually moved dollars.
The result
Employers, working through their sector intermediaries, drove concrete statewide change: the Washington Bankers Association removed unnecessary degree requirements and embedded employer-aligned banking curriculum into high school career and technical education statewide; Life Science Washington replicated a proven biomanufacturing training program across regions; the Center for Strengthening the Teaching Profession helped districts scale “grow your own” teacher pathways in rural and high-turnover schools; and sector leaders across three industries co-developed a shared welding standard aligning training quality across K-12 and postsecondary. Washington also illustrates the challenge ahead: sustaining intermediary funding through tight budget cycles is hard, and some Sector Leaders proved far more effective than others — a reminder that this model needs durable funding and clear performance expectations to deliver at its best.
Colorado · Multi-sector
How Colorado is building unified sector voice statewide In development
Construction and quantum employers are already proving what statewide sector coordination can produce.
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Colorado’s current system is designed for redundancy. Work happens at institutional or regional levels in ways that create duplication, inconsistent signals, and repeated asks of employers. Multiple groups often work on the same problems and approach the same employers separately — even when employer needs and labor markets actually operate statewide. The result, predictably, is fragmentation that exhausts employer willingness to engage.
Colorado’s strategy is to build sector-specific employer coalitions that can “get organized” statewide and speak with a unified voice. Rather than impose a single template, the state is letting each industry define its own priorities — awareness and rural access in quantum; competency and standards alignment in construction — and using early wins to make the case for codifying the approach in a more permanent state structure. A recent statewide vision recommending a consolidated state agency — a “single front door” for higher education and workforce development — is intended to receive and respond to those unified sector voices.
The proof points are already real. AGC Colorado partnered with construction employers to scale a statewide pathway now reaching 5,000+ students across 92 high schools, and launched an apprenticeship-to-degree leadership pathway with embedded apprenticeship credit. In quantum, employers built a clear “front door” through Elevate Quantum — convening industry to set the workforce development agenda and fund coordinated K-12, higher education, and rural pathway strategies.
The result
Two sector proof points (construction and quantum) are demonstrating what unified employer voice can achieve, and the state’s broader vision is moving in the direction of a consolidated structure that can sustain this model. Regulatory and statutory friction across multiple state entities, and the funding needed to sustain intermediary capacity, remain the open implementation questions.
10 — Recommendations
How policymakers and workforce leaders can enable employer leadership
The recommendations below are oriented toward state policymakers and the leaders building or reforming public workforce development systems. They begin with a foundational investment and continue with six system changes organized around how those systems represent, receive, and respond to employer voice.
These recommendations are most powerful when implemented as a full statewide infrastructure — the third model above. But the system changes described below also make the work of the first two models more powerful and durable — giving catalytic coalitions and standing sector tables better demand signals, clearer state response, and structural support for the work they're already doing.
The foundational investment
Recognize and fund employer-led sector intermediaries as core workforce infrastructure
Authorize and durably fund employer-led sector intermediaries — industry associations, employer coalitions, sector partnerships — as core connective tissue of state workforce development systems. Each of the recommendations that follow can be pursued without this foundation in place — but each is meaningfully higher-impact when sector intermediaries are recognized and funded.
Open the detail →
Represent
Building a representative employer voice
1
Build an employer-defined picture of in-demand occupations, competencies, and credentials
Build a regularly updated, sector-by-sector demand picture — created once by the intermediary, shared with every institution — so the same signal reaches all system stakeholders and employers stop answering the same questions table by table.
Open the detail →
2
Regionalize advisory work for more representative input
Move strategic sector-wide work up to sector and regional tables, consolidate program-level committees regionally where possible, and refocus local committees on validating, hiring, and work-based learning.
Open the detail →
Receive
Organizing the state to hear employer voice
3
Create a formal channel for employers to bring priorities to the state
Open a clear front door for employer-initiated priorities and solutions — routed through sector intermediaries where they exist — with the system required to respond with documented decisions.
Open the detail →
4
Coordinate employer engagement across state agencies
Align asks, share what employers tell one agency with the others, and hold joint engagements instead of parallel ones — so the system behaves like one system from the employer's side of the table.
Open the detail →
Respond
Translating employer voice into action
5
Incentivize program approval and funding to align with the sector demand picture
Use incentives — in program approval, funding formulas, and grantmaking — to reward programs that align with the employer-defined demand picture, and give employer-built programs a genuine path into the formal system.
Open the detail →
6
Tie program evaluation and renewed funding to outcomes that matter
Evaluate programs by what matters to employers and students — credential value, skill alignment, and career outcomes — and let those outcomes inform renewal and investment decisions.
Sector intermediaries and employer coalitions are what enable employers to play a leadership role in workforce development. Three concrete steps turn an organization that convenes employers into one that channels their leadership into real influence in workforce systems.
01
Help employers understand the value of participating in shared workforce efforts
Many employers have never seen sector-led workforce work in action. Without a clear picture of what's possible, it's hard to see why participation matters. The intermediary's first job is to make that picture vivid — what individual employers gain, what the sector gains collectively, and what changes in the workforce system as a result.
Concrete case studies are among the most effective ways to make the case. The examples elsewhere in this resource show what organized employer leadership has produced in practice.
Build the capacity to identify shared workforce needs
With employers at the table, the intermediary's central job becomes translation — turning fragmented hiring conversations into a coherent sector signal. That means identifying the occupations where demand is concentrated, articulating the skills those jobs actually require, and naming the credentials and partner programs that carry genuine labor market value.
This is a mature craft, and it doesn't have to be built from scratch. The U.S. Chamber of Commerce Foundation's Talent Pipeline Management (TPM) methodology offers a tested toolkit and a national network of practitioners using it across sectors. TPM Academy is where most intermediaries begin.
Building this capacity is also where funders can have outsized impact — as described in the funder section below.
Work with the workforce development ecosystem to address those needs
Once an intermediary can name its sector's priorities, the question becomes how to act on them. Partnering with individual education and training programs is always possible — and often the right starting point. But the public workforce ecosystem offers a much wider set of levers: K–12 CTE, community and technical colleges, four-year institutions, registered apprenticeship, workforce boards, state licensing boards, and the governor's office.
The System Navigator for Industry Innovators maps that full landscape — naming the specific asks an organized employer coalition can make of each public system, with concrete examples of how coalitions across the country have used each lever. It's designed to help intermediaries see what's possible beyond the institution they happen to know best.
Sector intermediary infrastructure of the kind described above takes time to build at scale. Philanthropy has a critical, immediate role to play — and three concrete forms of investment that build on what's already underway in the field.
What the workforce field needs is a national employer-led sector intermediary initiative — dollars, applied research, and technical assistance directed at building the structural layer the system has been missing. The three forms below can be pursued together or independently. None requires inventing new infrastructure from scratch — the organizations and expertise exist. What's missing is the field's willingness to fund the layer that makes programs actually deliver.
1
A competitive capacity-building fund
Investment in sector-based organizations themselves. Many industry associations, employer collaboratives, and sector partnerships already convene employers but lack the workforce development expertise to function as true employer-led sector intermediaries.
A capacity-building fund would support the staffing, data, and facilitation capacity these organizations need — particularly for those serving high-need occupations like registered nursing, teaching, and skilled trades.
2
State-backed sector leadership pilots
Investment in the infrastructure around intermediaries. In states where the political conditions exist, sector intermediaries can be treated as core workforce infrastructure — built into how the state's education and training systems set priorities and align with employer demand, rather than as peripheral conveners.
Pilots would test what that integration takes and what makes it durable across administrations — providing the proof points that move other states to follow.
3
A national demonstration portfolio
Investment in cross-site learning. Multi-state investments paired with centralized research, technical assistance, and a cross-site community of practice would produce evidence about what works in which contexts and translate findings into actionable guidance for the field as a whole.
This is where lessons that would otherwise stay siloed inside individual organizations or states become shared knowledge — accelerating the rate at which the field can learn and adapt.
The case for employer leadership is the case for public investment in workforce development finally delivering — for the learners and employers it's meant to serve.
For learners
Learners reach the good jobs public investment promised
Programs train for jobs that actually exist — anchored to the occupations employers are actively hiring for.
Credentials carry real labor market value — students aren't paying for credentials that don't pay off.
Pathways are clearer and more visible — including to the populations the current system serves worst: working adults, first-generation students, rural residents.
Work-based learning opportunities grow — built around sector demand, not whichever employer-program relationships exist.
The promise of public investment in education becomes real — a meaningful return on the time, debt, and trust learners put in.
For employers
Employers gain access to the reliable talent pipeline they need to grow
The talent pipeline is more reliable — open roles fill faster and specialized skills are there when the sector needs to scale.
Employers have the talent they need to grow — training capacity scales with sector demand instead of lagging behind it.
Employers turn to the public system to hire and train their workforce — programs produce results they can plan against.
Employers become more willing to co-invest — through funding, work-based learning slots, and hiring pipelines.
Employers see a return on their participation — input translates into what the system builds and funds.
The country already knows employers will lead when public systems let them. The task is to stop making employers work around those systems — and start building systems that work with them. Get this right, and the country finally builds an abundance of what it has been short of: skilled workers in the jobs that matter, and good jobs for the people we train.