What’s Next in Workforce Development? Anything but the Status Quo!
Posted Sep 02, 2025 by Rick
Within the next five years, millions of U.S. workers could see their jobs transformed — or disappear entirely — due to automation and AI. Yet our workforce system is still operating like it’s 1999. That’s why leaders across the country are asking the same urgent question: What’s next?
A Crossroads for Workforce Policy
In recent months, I’ve spoken with dozens of workforce system leaders, policymakers, and partners. All are watching Washington closely:
Will Congress continue the Workforce Innovation and Opportunity Act (WIOA) with level funding?
Will the White House’s Make America Skilled Again (MASA) proposal move forward, block-granting 11 workforce programs to governors?
Might some states go even further, bundling in training funds from human services programs like SNAP, TANF, and Medicaid?
The political winds could shift in any direction. The Senate Committee has already bypassed MASA once, opting to continue WIOA with level funding. But here’s the question we need to ask ourselves: Which outcome will actually serve people better — and is “level funding” really a victory?
Why the Status Quo is Failing
Today’s workforce and human services programs share the same ultimate customer: people seeking economic mobility. Yet these programs operate in silos — different leaders, separate service delivery processes, disconnected IT systems, and mismatched reporting requirements.
The result? A confusing, expensive web of services designed to meet programmatic needs rather than those of our customer. Staff spend too much time navigating manual work processes instead of helping people. And this is happening at the very moment we face what could be the largest labor market disruption in our lifetimes: the accelerated adoption of generative AI. Without a massive, coordinated re-skilling effort, millions of low- and middle-skilled workers risk displacement.
Re-imagining from the Customer Outward
Regardless of what Congress decides, governors, state and local leaders should be planning for each plausible scenario now. Getting to “What’s Next” in workforce requires us to:
Map the current customer journey — from first contact to employment — and identify friction points.
Redesign service delivery with the customer experience as the primary driver, not program rules.
Digitally transform systems to integrate intake, case management, and reporting — reducing duplication for customers and staff.
Leverage technology (including AI) to automate routine processes so more time and funding can go to skill development and supportive services, not administrative overhead.
We Can’t Afford to Wait
The status quo is failing both customers and staff. Demand for services will only increase. Funding is unlikely to grow. Burnout among workforce professionals is real and rising.
We are called — right now — to re-imagine and redesign what we do and how we do it. This is not simply about policy. It’s about building a system that is nimble, efficient, and human-centered.
A Call to Action
Plan for every possible policy scenario from Congress. Then start building the workforce system we’ll need five and ten years from now — one that:
Works seamlessly across programs and funding streams.
Prioritizes the customer experience at every step.
Uses digital tools to expand reach without increasing costs.
Delivers measurable results for people, employers, and communities.
The next chapter of workforce development is being written now. Let’s make sure it’s one where leaders meet the challenge of these times as they seize the opportunity of this moment! Doing so will require them to move boldly beyond the status quo!