Initiative highlights Maryland jobs
Posted on March 4, 2018
A new report highlights the impact of an important initiative on Maryland jobs.
The 2017 EARN Maryland Annual Report highlights the program’s profound impact on the state’s business community. EARN Maryland is an industry-led initiative that helps businesses cultivate the skilled workforce they need to compete while helping prepare Marylanders for meaningful careers. In a recent study on the economic impact of EARN Maryland, it was determined that for every dollar the state invests into the program, an additional $18.97 in economic activity is created. In comparison, the nationwide average return on investment for workforce development programs is $3.41.
“The EARN annual report confirms what we already knew: this program works,” said Secretary Schulz. “By partnering directly with employers and industry partners, we can identify workforce shortages and develop training plans that efficiently bridge those gaps. Employers see increased productivity, increased opportunity, significant cost savings, and expansion, which in turn increases economic activity in the state.”
ROI calculations look at a variety of factors including wage improvements by program participants, increases in firm outputs attributable to an improved workforce, and reductions in public expenditures as workers attain jobs or retain better paying jobs. Additionally, the calculation takes into account the number of participants placed into jobs, net new jobs created, and net new wages created per $100,000 investment, and the total economic, employment and fiscal impact of the program. This analysis shows an ROI of $18.97 in economic activity for every dollar the state spends on the program, a slight increase over the return on investment for the program last year.
EARN challenges traditional workforce development models by placing employer and industry partners at the forefront of program implementation. Employers establish training needs, develop curriculum, design programs, and place successful participants. Regardless of industry and region of the state, employers identify a similar challenge around recruiting candidates with the appropriate skill sets for employment. Intimate involvement in the process provides employers with confidence that EARN participants have the relevant, in-demand skills to help grow their business, while providing valuable opportunities for the state’s workforce.
“A workforce system disconnected from business fails to meet the needs of jobseekers,” said Secretary Schulz. “That’s why EARN places employer and industry partners at the forefront of program implementation. Intimate involvement in the process produces confidence that EARN participants have the relevant, in-demand skills to help grow their business, while providing valuable opportunities for the state’s workforce.”