U.S. on track to lose billions in manufacturing GDP due to workforce shortages

The CHIPS and Science Act will increase the United States’ investment in the domestic production of semiconductors.

However, the country has faced a worker shortage across industries for most of 2022.

U.S. Rep. Abigail Spanberger of Virginia encouraged U.S. House leadership Friday to bring her Jumpstart Our Businesses Supporting Students (JOBS) Act to the floor for a vote.

A press release stated that the JOBS Act would expand the eligibility of Pell Grants to qualified technical education programs between 150 and 600 hours or at least eight weeks in length. More opportunities for skilled professionals would be created by the legislation to fill vital, well-paying jobs that employers are struggling to fill under current conditions, including semiconductor manufacturers.

Spanberber’s letter was addressed to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, in which she highlighted the ability of the legislation to support additional, high-quality technical education programs and ensure a robust and qualified workforce.

“There is broad consensus that the United States must invest in domestic semiconductor manufacturing and research in order to be competitive in the global economy, particularly with nations like China,” Spanberger wrote in her letter. “However, as the CHIPS and Science Act is implemented, leaders from the public and private sectors are sounding the alarm that workforce shortages could prevent these investments from realizing their full potential impact. While some solutions to these workforce shortages will take years to implement, we must aggressively pursue options that address current shortages related to semiconductor manufacturing in the short-term.”

The legislation would provide eligible programs with training that meets the needs of local or regional workforces. The Virginia Community College System, for example, identified approximately 50 programs that would benefit from the JOBS Act, including in manufacturing, healthcare, energy and information technology.

“The JOBS Act has never been more necessary in growing Virginia communities served by Germanna Community College,” Dr. Janet Gullickson, President of Germanna Community College in Fredericksburg said in the press release. “More and more, students want to get to work along with attending college and this life-changing legislation provides for both. With stackable credentials, a worker/student can get a high-value job while pursuing future career and educational opportunities. It’s the perfect mix for workforce development success and I thank Rep. Spanberger for pushing for more support.”

In her letter, Spanberger said the country is at risk to lose $454 billion in manufacturing GDP in 2028 because of a skills shortage now.

“While educational institutions across the country are creating and expanding short-term training programs that can prepare workers for jobs in manufacturing, including semiconductor manufacturing, students are unable to use Pell Grant funding to pay for some programs that do not meet program duration requirements,” Spanberger said in her letter.