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To support a more inclusive workforce, Va. lawmakers must unite around this bill

HB680 would codify removal of degree requirements for many state jobs

//February 29, 2024//

Jonathan Wolfson, Cicero Institute (L), Steven Taylor, Stand Together Trust

Jonathan Wolfson, Cicero Institute (L), Steven Taylor, Stand Together Trust

Jonathan Wolfson, Cicero Institute (L), Steven Taylor, Stand Together Trust

Jonathan Wolfson, Cicero Institute (L), Steven Taylor, Stand Together Trust

To support a more inclusive workforce, Va. lawmakers must unite around this bill

HB680 would codify removal of degree requirements for many state jobs

// February 29, 2024//

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Virginia’s worker shortage is one of the commonwealth’s biggest barriers to economic growth and prosperity: According to data from the U.S. Chamber of Commerce, there are just 60 available workers for every 100 open jobs statewide. But Virginia’s talent-starved labor market is hardly unique. Nationally, there are seven workers for every 10 available jobs. The mismatch between available roles and work-capable individuals has been exacerbated by a 15-year decline in civilian labor force participation.

Against this backdrop, lawmakers on both sides of the aisle have a rare opportunity to forge political consensus by uniting around a bipartisan proposal that creates pathways to long-term employment for individuals without a college degree.

Earlier this month, the Virginia House of Delegates unanimously passed HB 680 to codify these skills-based hiring reforms. But this week, Democrats on the Senate Finance Committee tabled this bill indefinitely despite strong national bipartisan support for skills-based hiring. Senate Democrats owe Virginians — especially those locked out of meaningful work because they lack a college degree — an explanation for why this issue suddenly became so polarized and partisan.

The proposal follows a sweeping executive action by Gov. Glenn Youngkin last spring, which directed state agencies to remove unnecessary college degree requirements from job postings. The move sent a powerful message that individuals’ specific skills, experience, and motivation to work matter more than a four-year degree loosely tied to the job market.

It’s emblematic of a broader conversation occurring in statehouses and corporate board rooms across the country about a shift to a “skills-first” economy where hiring decisions are based not on educational pedigree, but real-world measures of skill and competency. Employers have historically relied on four-year degrees as a proxy for talent and fit — an approach that disadvantages a vast segment of the American population who do not have a traditional college degree.

Nationally, 70 million workers are STARs — an industry term coined by Opportunity@Work, an organization led by former Obama White House economic policy advisor Byron Auguste — meaning “skilled through alternative routes” such as community college, military service or on-the-job training but lack a four-year degree. The 3.8 million STARs in Virginia represent 47% of the state’s workforce.

To tap into this pool of skilled workers, state governments are leading the way in rethinking the connection between postsecondary education and employment. To date, at least 16 states have taken steps to eliminate bachelor’s degree requirements for substantial portions of government jobs.

growing number of private sector companies are beginning to use skills and experience instead of degrees to screen applicants for middle-skill roles. In neighboring Maryland, for instance, Lockheed Martin pledged to create 8,000 new apprentice opportunities in five years through internships for high school students and training programs for new and mid-career employees. The company met its goal in just four years.

For Virginia, a shift to skills-based hiring could unleash the vast potential of millions of Virginians with some training beyond high school, but no degree. Just 44.3% of Virginians between ages 25 and 64 hold a bachelor’s degree or higher. For every 1,000 undergraduates currently enrolled in Virginia’s colleges and universities, more than 2,100 state residents attended college but did not complete it.

Perpetuating the privileged status for degrees in the hiring process for jobs is bad labor, economic and social policy. Millions of work-capable Virginians are underemployed or on the sidelines because of inflated job requirements. This results in lower wages, lower tax revenues and increased reliance on safety net programs. More importantly, it limits their ability to create value for themselves and society.

We can do better, and Virginia should embrace this shift to a talent economy that recognizes every individual’s ability and desire to contribute. First, lawmakers should remove unnecessary degree requirements for state jobs. The solution is simple: HB 680 would codify skills-based hiring policies and practices for state jobs into law.

Second, workers and learners need access to short-term alternative paths to attain the skills that align with labor-market demand. Last year, in a bipartisan move, Virginia lawmakers overhauled workforce training to improve program delivery and outcomes for learners, workers, and employers.

Third, lawmakers should change state funding formulas to level the playing field and enable residents to access state dollars to pursue any program that leads to demonstrable job placement or wage gains — not just a traditional four-year degree program.

Finally, Virginia should overhaul the barriers within our welfare-to-work system that disincentivize underemployed or unemployed Virginians from pursuing work or earning a higher wage. A major obstacle is the phenomenon known as the “benefits cliff” that occurs when a slight increase in earnings abruptly disqualifies an individual or family from receiving needed benefits for food, housing, child care or medical care.

Workforce inclusion and economic growth are two sides of the same coin. To maintain Virginia’s economic vitality, lawmakers in Richmond should unite around these common-sense — and long-overdue — shifts in policy. The commonwealth can unlock the full potential of its workforce — and advance equality of opportunity for more of its residents. But doing so requires that we reconsider our outdated assumptions about the value of a college degree and expand opportunity to every Virginian with the skill and motivation to contribute.

Steven Taylor is director and senior fellow for education and workforce at Stand Together Trust, an Arlington-based nonprofit organization founded by Kansas billionaire Charles Koch that focuses on education and policy initiatives. He was previously founder and CEO of ED2WORK, a national advocacy, research and strategy firm.
Jonathan Wolfson is based in the Richmond area and is chief legal officer and policy director of the Cicero Institute, a Texas-based public policy organization started by tech entrepreneur and investor Joe Lonsdale. Wolfson served as the U.S. Department of Labor’s deputy assistant secretary for policy during the Trump administration and was a litigator and adviser with McGuireWoods from 2012 to 2019. 

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