Workforce Development and Human Capital
The workforce development and human capital approach to economic development focuses on strategies to strengthen the workforce in rural communities and explores how investments in human capital can contribute to improvements in local economies and employment opportunities. Human capital is the set of qualifications and capabilities that an individual possesses that can be applied to a job, including education, skills, expertise, and other relevant knowledge. Employment opportunity is the ability for everyone who is seeking a job — regardless of geography — to successfully find one that provides a living wage, which is the minimum standard required to support a family's cost of living in a particular community. Employment is an important social determinant of health (SDOH), as stable employment has been linked to improved health outcomes and well-being.
In some rural communities, unemployment rates remain high and job growth remains slower than that of urban areas. In part, lack of job growth in rural areas is related to the decline of jobs in manufacturing and resource-based industries, such as agriculture, logging, or mining. In rural communities that were once dominated by a single industry, workers may lack opportunities to gain new skills that would allow them to compete in other industries. Rural workers may benefit from workforce development opportunities, such as training specific to growing sectors, including technology, construction, healthcare, and financial services.
Investing in the Rural Workforce
Population characteristics and demographics are important considerations for implementing workforce development and human capital programs. In many rural areas, the working age population has decreased, resulting in a relatively larger population of children and older adults. Investments in the rural workforce can enhance engagement in the labor force and improve the economic stability of communities.
One strategy used by rural communities is enhancing employment opportunities for populations with specific barriers to workforce participation, such as formerly incarcerated individuals or older adults. Another strategy is to create opportunities for youth to enter the workforce and secure high-paying jobs through pipeline programs, internships, vocational training, or apprenticeships. Programs that invest in strengthening the skills of the local workforce can retain residents in their community, reducing the need to leave for opportunities elsewhere. This ultimately contributes to local economic well-being.
Cooperative Extension programs play an important role in workforce development in rural communities. Programs designed to build skills for rural workers can use Extension programs as a bridge between the community and local businesses. Extension programs are valuable workforce intermediaries, connecting residents with job training, educational opportunities, and local employers. Extension programs are uniquely positioned to connect residents with training on new technology and systems important to improving employment outcomes.
Examples of Rural Programs That Focus on Workforce Development and Human Capital
- Seneca Towns Engaging People for Solutions (STEPS) is addressing SDOH by increasing economic and educational opportunities for residents. STEPS facilitates skill-sharing courses taught by community members and leads a community business mentor program. The community business mentor program connects local youth with a mentor who develops internships and hosts career exploration days at schools. Youth can learn about different career paths, including careers in agriculture. STEPS also developed a small enterprise program that provides grants and loans with low interest rates to grow local businesses. In addition, STEPS posts local jobs on their website for community members to share.
- The Community Caring Collaborative (CCC) is connecting residents with workforce development opportunities and training. The Recovery & Employment program connects people who have a substance use disorder with training and job opportunities. CCC hopes to connect local businesses to this effort to create a more supportive community for those recovering from substance use disorder. CCC also leads ongoing training opportunities for the community and is developing a mentorship program.
- Community Outreach & Patient Empowerment (COPE) recognizes the importance of youth mentorship and empowerment to address SDOH and to improve local Navajo communities. Through the Navajo Community Health Outreach Leadership Program, COPE builds the skills of youth, providing mentorship and leadership training so they can help to improve health and well-being in their communities. The program works with high schools to train youth leaders and develop human capital. COPE also provides education for youth interested in careers in agriculture.
- The Western Rural Development Center offers programs that focus on workforce development in the Western United States region, with an emphasis on programming geared towards veterans who are farmers. The Center is working with researchers and the Western Extension Directors Association to identify gaps in workforce development and potential solutions. For example, the Center is providing training to improve technological skills among veteran farmers to meet the employment demand of new industries in western states.
Implementation Considerations
Many rural areas across the country continue to lack access to broadband technology, which can limit workforce and educational opportunities. For strategies that rural workforce development programs can use to address connectivity challenges, see Connectivity Considerations for Telehealth Programs in the Rural Telehealth Toolkit.
Similarly, limited public transportation infrastructure can pose a challenge for building human capital and accessing employment opportunities. For strategies that rural workforce development programs can use to address transportation, see Promising Transportation Program Models in the Rural Transportation Toolkit.