Economic development policies and programs exist within virtually every level of government. They cross agencies and organizations. They represent significant funding streams and long-standing and well-developed institutional mechanisms.

Economic development is driven by both public and private investments, by direct funding and by financial incentives created through tax codes and financial instruments like loans and bonds. Public choices in economic development influence our national and regional economies, shape our communities, and impact the quality of our workplaces.

Increasingly advocates of high road strategies are turning their attention to the role of these subsidies in shaping the workplace and the economy. They are demanding high-quality jobs in return for public support.

New Interest From Unions and Employers

At the same time that unions are showing an increasing interest in engaging these public systems, employers are also pushing the economic development system to engage issues of workforce development. Many states are making training programs the pillars of their industrial recruitment strategies. Traditional development funds are increasingly channeled to improvements in workforce development. Both of these trends have been reflected in the Workforce Investment Act, which directly connects the workforce investment system to economic development policies and programs.

This Action Brief outlines the structure of the economic development system. It is intended as a guide to developing workforce investment strategies that connect to economic development, advancing the economic viability of high road employers while building a strong labor movement and strong communities. In short, it is intended to ensure that economic development leads to high-quality investment in people and places.