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At a House Small Business Subcommittee hearing focused on economic growth, Democrats argued this week in favor of initiatives to expand federal investments and close the skills gap plaguing millions of American workers and small businesses. Witnesses testified that due to a lack of resources, many small businesses face greater barriers to developing and retaining skilled workers than their larger counterparts. Democrats argued for wiser investments in apprenticeships, worker training programs and broader economic solutions such as paid family leave.  Such steps not only help meet small firms’ workforce needs, but they create greater opportunity for workers.

“We cannot ignore the reality that too many workers feel left behind in today’s America,” said Subcommittee Ranking Member Rep. Dwight Evans (D-PA). “That is why Democrats are promoting workforce development programs to foster well-paying full-time jobs and to help workers gain the skills they need to thrive in the 21st century workforce.” 

For new employees entering the workforce, small businesses are often their first stop. In fact, small firms provide nearly 70 percent of American workers with their first job. However, a lack of resources restrains the ability of small business owners to provide their workers with opportunities for growth. It has been noted that through 2020, there will be 55 million job openings with 24 million being new jobs and 31 million replacement jobs, mostly for baby boomers. 

“America’s small businesses are at the forefront of driving innovation and technology, yet many find themselves pressed to find skilled workers,” said Evans. “If we are unable to meet the demand for trained workers, it will hamper both our economy at home and our ability to compete at a global level.” 

And as one of the witnesses testified in yesterday’s hearing, we need to understand why Americans are not moving as much and how this lack of mobility is affecting the U.S. labor supply and overall economy.

“Businesses clearly have a role when it comes to encouraging mobility in the workforce,” said Todd Hitt, the founder and CEO of Kiddar Capital. “It’s our job to attract talent with fair wages, family-sustaining benefits, and the promise of a stable job. I believe this crisis is so profound, however, that it is time for government action as well. It’s imperative that local, state, and federal officials work in tandem with American job creators.”

Unfortunately, President Trump signed an executive order in 2017 to cut back the federal government’s role in creating and monitoring apprenticeship programs. To help incentivize jobs for small businesses, Democrats are calling for greater investments in federally funded employment and training programs such as Small Business Development Centers (SBDCs) and the Manufacturing Extension Partnership, which help workers develop their skills and expand into new markets. 

“The reality is that millions of Americans want a job, but cannot find one,” said Evans. “We need to grow existing worker training initiatives, expand apprenticeships into new sectors and ensure these initiatives reach women and minorities, so all Americans can benefit from job growth and an expanding economy.” 

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