“Government-backed talent investment loans will give SMEs the capital to hire the workers necessary to expand their businesses, as well as to up-skill these and current employees. These loans will include incentives to encourage economic and social goods, such as worker retention, attainment of certified skills, and hiring from target populations.” –Building A Nation of Makers
We were not at all surprised to find that the first idea of the symposium addressed a quality workforce.
Our advanced manufacturing technologies require skilled workers to operate.
Prospects looking to build factories number one concern is does a location have a quality workforce.
In the US, we have it backwards- we pay far more to have workers idle on unemployment than we spend to retrain them.
According to CNN.com, in 2012 the US spent over $520 Billion on unemployment benefits.
According to NY Times in April 2012, the US government was spending no more than $1.2 Billion on workforce training annually.
Our worker training budget is just 0.23% of our unemployment spend. Less than a quarter of a percent to actually address the root cause of our unemployment problem, people lacking skills.
According to the report:
- Having the right talent is essential to SMEs.
- SMEs can grow rapidly beyond capability of existing staff to keep pace.
- SMEs know the talent they need but lack the funds to invest in new workers.
Creating Talent Investment Loans can help SMEs to create skilled middle class jobs
- Providing capital up front;
- Low interest rate- Federal guarantee;
- Terms can be adjusted to achieve value criteria- employee retention, targeted hiring from population in need, enabling new and existing workers to earn an industry credential.
Ultimate goal of these loans is to increase workforce skills and participation- to provide greater opportunities for hiring and retention over the long run- of high skilled and high demand talent.
An important step toward Rebuilding the American Middle Class in the process. Restoring the American Dream.