Molinaro: “Avenues to Success: Examining Workforce Training Programs for Employees”

Summary

Opening statement of Subcommittee Chairman Marc Molinaro, dated September 25, 2024, for a hearing of the House Committee on Small Business Subcommittee on Innovation, Entrepreneurship, and Workforce Development titled "Avenues to Success: Examining Workforce Training Programs for Employees". It is marked as prepared for delivery. The statement says 40% of small employers were unable to fill job openings as of August and discusses labor shortages in the construction, healthcare and automotive sectors. It also covers workers with disabilities and skilled trades, and discusses the ThinkDIFFERENTLY About Disability Employment Act and the Honoring Vocational Education Act.

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“Molinaro: ‘Avenues to Success: Examining Workforce Training Programs for Employees.’” Original at smallbusiness.house.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/committee-4a4aff7884c6fb8e/, SHA-256 8cc5aeda093eecac4e2e5065d035ebcdc13a5765a9bebd0700c7d222a7048619.

Full text

Opening Statements

Molinaro: “Avenues to Success: Examining Workforce Training Programs for Employees”

September 25, 2024

Tags:

Innovation, Entrepreneurship, and Workforce Development

WASHINGTON, D.C. – Today, the House Committee on Small Business Subcommittee on Innovation, Entrepreneurship, and Workforce Development is holding a hearing titled “Avenues to Success: Examining Workforce Training Programs for Employees.”

Subcommittee Chairman Marc Molinaro’s opening statement as prepared for delivery:

Good morning, and welcome to today’s hearing. First, I want to thank our witnesses for joining us today. Your time here is very much appreciated, and I look forward to your testimonies.

The current labor shortage in the U.S. is disproportionately affecting small businesses, with 40% of small employers unable to fill job openings as of August. This crisis is exacerbated by economic pressures from the Biden-Harris Administration, with many businesses struggling to find qualified talent amid rising costs and inflation. The construction, healthcare, and automotive sectors are particularly in need, facing significant deficits in skilled labor that could hinder growth and increase project delays. These on-the-ground issues small businesses are facing are exacerbated in rural and underserved areas like the one I represent in Upstate New York.

The labor shortage is not confined to small employers, either. The broader labor market is facing one of the most challenging years in recent history. Contributing factors include an aging workforce, with projections indicating that 41% of workers nearing retirement by 2031 will lead to a substantial loss of institutional knowledge. Additionally, younger individuals are entering the workforce at a lower-than-expected rate. Many workers laid off during the pandemic are unwilling to return to jobs lacking remote work options, reflecting a shift in employee expectations.

Despite these challenges, people with disabilities still represent an untapped workforce. Their participation in the labor market has surged since the pandemic, with 1.8 million joining, bringing their employment rate to 25%, the highest in 15 years. Organizations like Community Options Inc. are crucial in providing training and job placement, partnering with major companies to support individuals with disabilities. Hiring these workers not only promotes inclusivity but also boosts workplace morale and results in lower turnover and absentee rates.

That’s why I introduced the ThinkDIFFERENTLY About Disability Employment Act to help small businesses address accessibility issues for employees with disabilities, encourage the hiring of those in the disability community, and help entrepreneurs with disabilities succeed. I was proud to get this bill passed the House.

I was also proud to co-lead the Entrepreneurs with Disabilities Reporting Act alongside Ranking Member McGarvey to better understand the challenges entrepreneurs with disabilities face.

Addressing the skills gap through workforce development is essential. Traditional education paths may not suit everyone, and skilled trades offer viable alternatives. Combatting the ongoing labor shortage by supporting our skilled trade schools and apprenticeship programs is a true bipartisan effort. I worked alongside my colleague and fellow Small Business Committee member, Rep. Hillary Scholten (D-MI), to introduce the Honoring Vocational Education Act which ensures individuals who attend job training programs, trade schools, union apprenticeships are recognized as obtaining a postsecondary non-degree award. Additionally, I was proud to co-lead the Small Business Workforce Pipeline Act to help small businesses offer more apprenticeships and on-the-job training opportunities.

In order to alleviate the labor shortage and support small businesses, it is vital to harness the potential of people with disabilities and promote skilled trades. By focusing on these areas, there is potential for significant improvement in the labor market, ultimately benefiting both small businesses and the broader economy.

I want to thank our witness again for joining us today, and I look forward to the conversation ahead. With that, I will yield to our distinguished Ranking Member from Kentucky, Mr. McGarvey.

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