New study finds middle-skills training offers path toward filling worker shortages

New R Street Study: Addressing Labor Shortages Through Expanded Training Pathways

New analysis finds middle-skills training offers faster, more equitable path to filling a looming worker shortage

WASHINGTON, D.C. — Today, the R Street Institute released a new study, “Middle-Skills Workforce Development: Addressing Labor Shortages Through Expanded Training Pathways.” This analysis looks at how so-called “middle-skills jobs”—those that require training or certification beyond high school but not a four-year degree—can provide workers with valuable pathways to economic mobility.

The study is authored by resident senior fellow Stacey McKenna and resident fellow Courtney Joslin with our Healthier Communities program, alongside research assistants Lindsay Heck and Jay Bell. In it, they explore the key social and policy factors driving current labor shortages, why middle-skills pathways matter for economic mobility and equity, and how recent public investments are expanding access to these training programs. The paper also flags occupational licensing reform as an important area for future policy attention.

Middle-skills jobs are a fast-growing part of the labor force and account for roughly one-half of all U.S. jobs. The United States faces a projected shortfall of 5 to 6 million workers across nearly 200 occupations by 2032, with a shortage of 750,000 middle-skills workers expected. State and federal policymakers have responded with significant investments in training programs, including the new Workforce Pell Grant program, to expand access to these credentials. The authors also note that the broader policy landscape, including occupational licensing requirements, will need attention to ensure these investments reach their full potential.

As the authors write, alternative certification programs “offer a strong return on investment for workers … Many people do not have the time, financial resources, or desire to pursue a college or university degree. In addition, the attainment of traditional four-year degrees and the acquisition of student loan burdens—as well as the ability to shoulder these debts … contribute to enduring racial disparities in wealth and economic mobility. Because middle-skills training programs are often shorter term and lower cost than four-year degrees…they are particularly appealing to and offer more accessible entry points for groups that have historically struggled to access education and advancement opportunities.”

If you would like to speak to the authors of this study, please contact pr@rstreet.org.