Our public workforce system promises opportunity, but too often, it leads to stagnation. Instead of providing a path to economic stability, many publicly-funded programs funnel people into low-wage jobs with little chance for advancement. This not only fails individuals; it diminishes our nation’s economic competitiveness.
The new Congress presents an opportunity for reform. Policymakers fell short of reauthorizing the Workforce Innovation and Opportunity Act (WIOA) last session, despite bipartisan recognition that it needs modernization. Now, Congress has another chance—and responsibility—to redesign the workforce system with a renewed focus on economic mobility.
The Problem: Training for Dead Ends
When Americans invest time and energy into training programs, they expect to gain access to quality jobs—ones that not only meet their immediate needs for employment but also set the stage for career growth and economic independence. Unfortunately, publicly-funded training programs often fail to meet this basic expectation. Research by our colleagues at the Project on Workforce found that over 40% of WIOA participants earn less than $25K annually after completing training programs, often in jobs that provide few opportunities for career advancement.
Programs and services often channel participants into roles like medical assistants and nursing aides—jobs that are in-demand and crucial to society, but offer median incomes as low as $20,200 per year and rarely lead to growth. The Brookings Institution estimates that only one third of personal care aides experience upward career transitions. Black and Hispanic women disproportionately fill such jobs, perpetuating occupational segregation—and leaving thousands of families in economically tenuous positions.
Low-wage work is “sticky;” once someone enters a low-paying job, it becomes increasingly difficult for them to transition into positions that offer better pay and advancement potential. They face structural barriers—like a lack of information, guidance, social networks, and resources—to access such opportunities. The majority of workers who start in low-wage roles remain trapped in them five years later. The first job can set the trajectory for an individual’s entire career.
The Solution: Focus on Career Mobility
We must shift the public workforce system from its focus on immediate job placement to quality careers that offer long-term advancement. Training providers should be held accountable for individuals’ wage growth over time; and crucially, they should report outcomes by race and gender. As the saying goes, “what gets measured, gets managed.” This approach incentivizes workforce professionals to prioritize good jobs over quick fixes and provide insight into any equity gaps that exist.
Policymakers in states like Virginia are already demonstrating what a better system might look like. The state’s “Top Jobs” list, which guides workforce funding, balances employer needs with wage growth potential, showing that job quality doesn’t have to come at the expense of market needs. Instead, it can enhance community and economic resilience by preparing workers for careers that offer long-term financial security.
Meanwhile, job seekers need access to clear, actionable information to make sound decisions about their futures. Today, labor market data is often opaque or incomplete, leaving individuals to make life-shaping choices about training and employment without an adequate understanding of the consequences. A review of state WIOA websites revealed that only seven state websites listed the average wages of the occupations that training programs were intended to make accessible.
What’s missing isn’t just information—it’s guidance. Trained career coaches can help individuals understand their options, chart realistic paths forward, and make informed choices. Our review of the research shows that such personalized support can be the difference between stagnation and success. For example, individuals who participate in EMPath, a one-on-one economic mobility coaching program in Boston, see their incomes nearly triple after completing the program—from $18,700 to $52,300.
Unfortunately, our nation faces a severe shortage of qualified career coaches. State and federal policymakers must invest in this workforce if we are to shift our system toward long-term advancement for all. Emerging technologies, such as generative AI, have the potential to revolutionize counseling. Policymakers should encourage pilot programs to investigate prospective innovations to address the coaching shortage.
A Call to Action
The public workforce system can and should embody America’s belief in economic mobility. By focusing on quality, transparency, and support, Congress can build a workforce system that creates durable opportunities, instead of dead ends. Failure to act risks channeling hundreds of thousands of people per year into low-wage, low-mobility jobs, perpetuating inequality and harming national economic competitiveness. Lawmakers should seize this moment to uplift individuals and build a more prosperous economy.
Joseph Fuller is a Professor of Management Practice at the Harvard Business School and co-head of the Managing the Future of Work Project and the Project on Workforce. Kerry McKittrick is a Director of the Project on Workforce at the Harvard Kennedy School.