Under the program, the Obama administration will provide $100 million in competitive grants to joint initiatives by employers, training institutions and local governments that target workers who don’t have easy access to training. The money comes from fees companies pay to the government to hire higher-skilled foreign workers under the H-1B visa program.
“Too many Americans think these jobs are out of their reach, that these jobs are only in places like Silicon Valley or that they all require an advance degree in computer science. That’s just not the case,” said Jeff Zients, director of the White House National Economic Council.
Among the communities that have pledged to participate are New York City, Louisville, Detroit, Nashville, San Francisco, and Kansas City, Missouri.
The initiative is designed to prepare U.S. workers for a growing number of technology jobs. According to the White House, of the 5 million jobs available today, more than half a million are in those fields.
Obama’s attention to technology comes as the unemployment rate is dropping but wages remain flat. The unemployment rate in February dropped to 5.5 percent but average hourly earnings rose just 3 cents from January to $24.78. Raising wages has become one of the biggest challenges of the current economic recovery.
“These tech jobs pay 50 percent more than the average private sector wage, which means they are a ticket to the middle class,” Obama said.
The administration’s plan is for universities and community colleges to provide training. It is also relying on high-tech educational academies, some of which have entered arrangements with cities to train workers in a matter of months and help place them in jobs.
The training academies undergo independent studies to confirm the rate of job placements.
“The world’s technology needs are just moving a lot faster than traditional education solutions. That’s the fundamental problem here,” said Louisville, Kentucky, Mayor Greg Fischer, whose city has pledged to expand an existing program with high tech. “So that’s why these non-conventional methods are needed right now.”
“TechHire will broaden the foundation of coding literacy in this country,” said Jon Stowe, president of Dev Bootcamp in a statement. “The inclusion of schools like Dev Bootcamp in this initiative is recognition of our ability to create a bridge between motivated learners and well-paying technical jobs in the new economy. Our goal is to create greater diversity in the tech field, and specifically to open more access for women and people of color. Our work in this area, which is supported by the TechHire initiative, is an important step toward creating representative population in the field.”
For more information on the TechHire initiative, click here.
Material from the Associated Press was used in this report.