Building a brighter future of workThis chapter brings four of the most critical challenges into focus: connecting workers with new opportunities through improved job matching and mobility; scaling up retraining efforts; creating new local economic development approaches to boost job creation; and addressing incomes. We highlight examples of programs and pilots from across the country—and the good news is that there are many promising efforts under way. The crucial next step will be identifying what works, sharing those models, and expanding them across cities, counties, and wider regions. The trends outlined in this report point to further polarization—between high-growth cities and struggling rural areas, and between high-wage workers and everyone else. But policy choices and investment can still create a better outcome. Companies can make a difference, too, in recognizing that there is talent available across the country and investing alongside other entities to realize untapped potential. Broadening their own footprint can lower costs, create resilience, and have a major positive impact on revitalizing communities. Stakeholders can draw on a large and varied tool kit of options to create better outcomes in their communities (Exhibit 33).100 But as this research shows, segments across the United States have different starting points and distinct challenges. Depending on their unique circumstances and the relative urgency of each issue, individual communities will need to establish their own priorities (Exhibit 34). Skills development will be near the top of the list for most places, but programs must address the local context. Federal resources and coordination may be needed, but no one-size-fits-all approach will work across the country. Local officials, educators, and employers know their own people and places best. McKinsey Global InstituteMGI_d3067c6e-5f2c-11ea-b872-cb741b83ea00Since its founding in 1990, the McKinsey Global Institute (MGI) has sought to develop a deeper understanding of the evolving global economy. As the business and economics research arm of McKinsey & Company, MGI aims to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. Jacques BughinDirector, McKinsey Global Institute, Senior Partner, McKinsey & Company, BrusselsJames ManyikaDirector and Chairman, McKinsey Global Institute, Senior Partner, McKinsey & Company, San FranciscoJonathan WoetzelDirector, McKinsey Global Institute, Senior Partner, McKinsey & Company, ShanghaiSusan LundCo-Author - Washington, DCJames ManyikaCo-Author - San FranciscoLiz Hilton SegelCo-Author - New YorkAndré DuaCo-Author - New YorkBryan HancockCo-Author - Washington, DCScott RutherfordCo-Author - Washington, DCBrent MaconCo-Author - AtlantaCommunitiesCommunities face different future of work challenges.Urban CoreMegacities -- High-growth hubs -- Key priorities: • Increase affordable housing near employment centers • Involve employers in creating high school and community college programs to develop key skills needed in growing fields • Target job training and placement to low-income and marginalized populations • Improve transportation links within city and with peripheryUrban PeripheryKey priorities: • Attract investment in high-value businesses to diversify beyond local services • Link tertiary education programs to urban employers to create talent pipeline • Improve transportation links with city and within peripheryNiche CitiesSmall powerhouses -- Silver cities -- College-centric towns -- Key priorities: • Promote startup clusters and innovation (technology businesses in small powerhouses, healthcare in silver cities, university spin-offs in college-centric towns) • Adopt varying local strategies: silver cities need to attract young workers in growing industries; college-centric towns need to prevent brain drain and address poverty ratesMixed MiddleStable cities -- Independent economies -- America’s makers -- Key priorities: • Create a clear value proposition and economic development strategy to attract investment to create a thriving economic cluster • Facilitate entrepreneurship through incentives, access to capital, and streamlined regulation • Retrain and redeploy workers at scale to avoid unemployment and slow-growth downward spiralTrailing CitiesAmericana -- Distressed Americana -- Rural outliers -- Key priorities: • Identify potential anchor industries that can be growth engines building on local advantages (e.g., low-cost land) • Improve / update skills through high school completion programs, apprenticeships, training boot camps • Expand digital infrastructure and teach digital skills to enable remote workA bright future of work_d3067d9a-5f2c-11ea-b872-cb741b83ea00To provide a tool kit from which local communities can draw to address their own priorities_d3067e4e-5f2c-11ea-b872-cb741b83ea00AutomationAutomation is reshaping the future of work, with implications for individuals and incomes, the fortunes of local communities, and the footprint of companies and industries.RetrainingMillions of Americans will need access to retraining and the ability to find new opportunities.CollaborationResponding to a transition of this magnitude will require collaboration among multiple stakeholders, including federal, state, and local governments; businesses; community leaders and residents; philanthropic organizations; educational institutions; and unions and professional societies.ConnectionsConnect workers with new opportunities_d3067ef8-5f2c-11ea-b872-cb741b83ea001Skill MatchingUse big data and digital platforms to track and match local and regional demand for occupations and specific skills_d3067fa2-5f2c-11ea-b872-cb741b83ea001.1Skills TaxonomyStandardize employer and industry skills taxonomy_d3068042-5f2c-11ea-b872-cb741b83ea001.2CredentialsCreate nationally recognized workforce skills credentials_d3068182-5f2c-11ea-b872-cb741b83ea001.3TransportationAddress transportation challenges, especially from low-employment areas to employment hubs_d306825e-5f2c-11ea-b872-cb741b83ea001.4MobilityExplore solutions to enable mobility, including incentives and affordable housing_d3068308-5f2c-11ea-b872-cb741b83ea001.5LicensingReduce burdensome occupational licensing requirements _d30683b2-5f2c-11ea-b872-cb741b83ea001.6WorkforceBuild the workforce of the future_d306845c-5f2c-11ea-b872-cb741b83ea002TrainingInnovate and scale options for short-term training (including online learning)_d3068506-5f2c-11ea-b872-cb741b83ea002.1IncentivesConsider incentives for companies to invest in worker training and expand co-funding for apprenticeships_d30685ba-5f2c-11ea-b872-cb741b83ea002.2CompaniesPartnershipsCreate partnerships between educators and employers to design career-relevant curricula_d3068664-5f2c-11ea-b872-cb741b83ea002.3EducatorsEmployersApprenticeships & Vocational ProgramsExpand vocational programs that create pathways from school to work, including apprenticeships_d306870e-5f2c-11ea-b872-cb741b83ea002.4Lifelong LearningEncourage educators to create programs for lifelong learning_d3068808-5f2c-11ea-b872-cb741b83ea002.5EducatorsK-12 EducationStrengthen K-12 education to build foundational skills_d30688c6-5f2c-11ea-b872-cb741b83ea002.6K-12 SchoolsEconomic DevelopmentUndertake economic development to spur job creation_d306897a-5f2c-11ea-b872-cb741b83ea003Sector StrategiesCreate sector-specific development strategies to attract investment and build innovation clusters_d3068a38-5f2c-11ea-b872-cb741b83ea003.1EntrepreneurshipPromote entrepreneurship through incubators, mentorship, and capital access programs_d3068aec-5f2c-11ea-b872-cb741b83ea003.2EntrepreneursMentorsEducationIncrease secondary and postsecondary education and link it to local employers_d3068ba0-5f2c-11ea-b872-cb741b83ea003.3SchoolsEmployersInfrastructureInvest in traditional and digital infrastructure_d3068c5e-5f2c-11ea-b872-cb741b83ea003.4Distressed NeighborhoodsCreate specific plans to turn around distressed neighborhoods_d3068d1c-5f2c-11ea-b872-cb741b83ea003.5Distressed NeighborhoodsTransitionSupport workers in transition_d3068dda-5f2c-11ea-b872-cb741b83ea004WorkersFinancingOffer financing options, including grants and subsidies, for people undertaking mid-career retraining_d3068ea2-5f2c-11ea-b872-cb741b83ea004.1Unemployment InsuranceExpand access to unemployment insurance and increase program flexibility_d3068f6a-5f2c-11ea-b872-cb741b83ea004.2Counseling & AssessmentProvide high-quality career counseling and skills assessment_d3069028-5f2c-11ea-b872-cb741b83ea004.3Portable BenefitsPilot portable benefit systems_d30690fa-5f2c-11ea-b872-cb741b83ea004.4Independent BenefitsBroaden benefits for independent workers to encourage entrepreneurship_d30692a8-5f2c-11ea-b872-cb741b83ea004.5Independent WorkersEntrepreneursWagesInvestigate programs to raise incomes for low-wage workers_d306938e-5f2c-11ea-b872-cb741b83ea004.6Low-Wage Workers2019-07-312020-03-05https://www.mckinsey.com/~/media/mckinsey/featured%20insights/future%20of%20organizations/the%20future%20of%20work%20in%20america%20people%20and%20places%20today%20and%20tomorrow/the-future-of-work-in-america-full-report.ashxOwenAmburOwen.Ambur@verizon.net