Successful Workforce Development Programs: Four Lessons from Four Decades of Federal Reserve Research and Outreach

Workforce development is a crucial ingredient for achieving a healthy and dynamic economy that can work for all. When it comes to the economic well-being of entire regions, many studies have documented the importance of investments in education and training programs. For example, Cleveland Fed researchers found that over a 75-year period, education levels were consistently one of the most reliable indicators for each state’s per capita income growth1 and that counties with higher levels of high school graduates tend to have lower poverty rates and higher levels of labor force participation.2 Resilient regions, ones that have been able to avoid persistent declines in population over the longer run, tend to have a more educated population and a more diverse industry mix.3 Better education helps individuals, too. It is correlated with lower levels of unemployment and higher wages.