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As our nation strives to regain its global competitiveness, it is critical that companies of all sizes have access to the skilled workforce they need to succeed.  In fact, in the next decade nearly two-thirds of all job vacancies will require some post-secondary education – and this will only increase as the pace of technological change accelerates. Small businesses create 70 percent of all new jobs and it is essential that these workers have sufficient technical skills.

Analyzing the United States workforce reveals two areas of concern: an existing skills gap among workers and a large increase in the retirement of baby boomers within the next decade. Both emphasize the importance of transforming the education process and requirements for future workers. 

For businesses, this reality has dire consequences.  If we are unable to meet the demand for trained workers, it will weaken our ability to compete globally.  The manufacturing, technology, and health care sectors, in particular, face challenging obstacles due to this deficiency. 

And, what is especially troubling is that there are fewer workers seeking jobs – compounding the problem further. With the unemployment at a record low of 3.8 percent, small businesses will be at even more of a disadvantage as they compete for any workers, especially those with specialized training.  

This begs the question of how do we address this skills gap now to get people qualified to fill these jobs. 

Targeted post-secondary education, such as skill certifications systems, can assist small firms in securing qualified employees to help them grow.  Novel partnerships among industry, educators, and policymakers are also playing a role by preparing the workforce and incentivizing school completion.  

Too many American workers and small businesses have been left behind. That’s why creating incentives for training, certification, and apprenticeship programs leads to a stronger workforce, better earnings, and higher productivity. Most importantly, we must change the stigma surrounding these jobs and refocus the discussion for our future generation as they fill these needs.

Efforts such as these that we will discuss today are critical to our economic recovery.  By preparing America’s workforce to compete in the global marketplace, firms will be better positioned to succeed, paving the way toward stronger growth.  Prudent investments in training and education will also reduce the unemployment rate, leading to higher consumer confidence and demand.   

This is exactly what our nation needs now as we look to turn the corner, create more jobs, and ensure that America’s small businesses are prepared to move our economy forward.

I look forward to today’s hearing and thank the witnesses for being here.