FACT SHEET: President Obama Launches New TechHire Initiative
President Obama Announces Multi-Sector Effort and Call to Action to Give Americans Pathways to Well-Paying Technology Jobs; Makes Available $100 Million in Grants
The President and his Administration are focused on promoting middle class economics to ensure that all Americans can contribute to and benefit from our American resurgence. Part of that effort requires empowering every American with the education and training they need to earn higher wages. Today’s announcement is the latest part of that effort: In his remarks to the National League of Cities, the President will announce his TechHire initiative, including a new campaign to work with communities to get more Americans rapidly trained for well-paying technology jobs.
Middle class economics has driven the President from day one, and it is what has fueled our comeback. On Friday, we learned that our economy created nearly 300,000 new jobs in February. American businesses have now added more than 200,000 jobs a month for the past 12 months, the longest streak of job creation at that pace in 37 years. All told, over the past five years, our businesses have created 12 million new jobs.
While we are seeing an economic resurgence, the President has made clear that there is still work left to do. America has about 5 million open jobs today, more than at any point since 2001. Over half a million of those job openings are in information technology fields like software development, network administration, and cybersecurity- many of which did not even exist just a decade ago. The average salary in a job that requires information technology (IT) skills – whether in manufacturing, advertising, retail or banking – is 50 percent higher than the average private-sector American job. Helping more Americans train and connect to these jobs is a key element of the President’s middle-class economics agenda.
As part of that agenda, TechHire is a bold multi-sector effort and call to action to empower Americans with the skills they need, through universities and community colleges but also nontraditional approaches like “coding bootcamps,” and high-quality online courses that can rapidly train workers for a well-paying job, often in just a few months. Employers across the United States are in critical need of talent with these skills. Many of these programs do not require a four-year degree. Key elements of the initiative include:
- Over twenty forward-leaning communities are committing to take action – working with each other and with national employers – to expand access to tech jobs. To kick off TechHire, 20 regions, with over 120,000 open technology jobs and more than 300 employer partners in need of this workforce, are announcing plans to work together to new ways to recruit and place applicants based on their actual skills and to create more fast track tech training opportunities. The President is challenging other communities across the country to follow their lead.
- $100 million in new Federal investments to train and connect more workers to a good job in technology and other in-demand fields. The Administration will launch a $100 million H-1B grant competition by the Department of Labor to support innovative approaches to training and successfully employing low-skill individuals with barriers to training and employment including those with child care responsibilities, people with disabilities, disconnected youth, and limited English proficient workers, among others. This grant competition will support the scaling up of evidence-based strategies such as accelerated learning, work-based learning, and Registered Apprenticeships.
- Private sector boosts tools and resources to support and expand continued innovation in technology training, with a focus on reaching under-served populations. Private sector leaders are announcing commitments to provide free training through online training slots and expanding “coding bootcamps” – which provide intensive training for well-paying jobs, often in the course of just a few months – to low-income and underserved Americans including women, minorities, and veterans across the nation. National organizations are committing to work with interested cities to share job and skills information, job-matching tools, and other resources to help support the growth, adoption, and creation of promising practices across the United States.
Details on the Tech Hire Initiative
The TechHire initiative builds on work communities like Louisville, St. Louis, Philadelphia, New York City and the State of Delaware are doing to connect more Americans to well-paying technology jobs through a potent combination of new tools and training models:
Over twenty forward-leaning communities are committing to take action – with each other and with national employers – to expand access to tech jobs: The TechHire initiative will achieve its goals by connecting communities together so promising ideas happening in one community can be rapidly adopted by other regions. Today, 21 communities are stepping up and responding to the President’s call-to-action, including:
Louisville New York City Philadelphia Delaware City of Kearney and Buffalo County, NE
Colorado St. Louis Salt Lake City San Antonio
Los Angeles Minneapolis Kansas City Memphis Rural Eastern Kentucky
Nashville Rochester Detroit San Francisco Albuquerque
Building on the promising work already underway in their communities, they are all committing to three actions:
Using data and innovative hiring practices to expand openness to non-traditional hiring: Having a data-driven assessment of employer demand is critical to building a successful regional strategy. Communities are committing to work with employers to build robust data on where they have greatest needs and what skills they are looking for; communities will work with employers to build willingness to hire from both nontraditional and traditional training programs; and communities will work with employers to review -and upgrade -their recruiting and hiring practices to enable non-traditional hiring.
Expanding models for training that prepare students in months, not years: Communities will recruit, incubate and expand accelerated tech learning programs – such as coding bootcamps and innovative online training – which enable interested non-tech-experienced students to gain coding skills in months, not years. These new models also have potential to reaching to a broader set of students than have traditionally chosen to pursue tech careers. These new training programs can be run both independently or embedded as part of a local community college or university education offering.
- Active local leadership to connect people to jobs with hiring on ramp programs: Communities will build local strategies and partnerships to connect people to jobs, with steps ranging from investing in and working with industry-trusted organizations, which will vouch for those who have the skills to do the job but who may lack the typical profile of degrees and career experience. They will host local tech community gatherings with engaged employers, attract new non-traditional training providers to their regions, and bring visibility to existing local activities such as tech meet-ups, startup co-working spaces or startup-weekends - which are already in place in most middle-size cities or encouraging the founding of these groups if they are not available locally.
The Administration is encouraging more communities and employers to follow in their lead with similar innovative strategies to advance these goals.
Examples of TechHire Community Commitments
- St. Louis, MO. A network of over 150 employers in St. Louis’ rapidly expanding innovation ecosystem will build on a successful Mastercard pilot to partner with local non-profit Launchcode, to build the skills of women and underrepresented minorities for tech jobs, and will also place 250 apprentices in jobs in 2015 at employers like Monsanto, CitiBank, Enterprise Rent-a-Car, and Anheuser Busch.
- New York City, NY. With employers including Microsoft, Verizon, Goldman Sachs, Google, and Facebook, the Tech Talent Pipeline is announcing new commitments to prepare college students in the City University of New York (CUNY) system for and connect them to paid internship opportunities at local tech companies. NYC will also expand successful models like the NYC Web Development Fellowship serving 18-26 year olds without a college degree in partnership with the Flatiron School.
- State of Delaware. The new Delaware TechHire initiative is committing to training entry-level developers in a new accelerated coding bootcamp and Java and .Net accelerated community college programs giving financial institutions and healthcare employers, throughout the state, access to a new cohort of skilled software talent in a matter of months. JP Morgan Chase, Capital One and others are committing to placing people trained in these programs this year.
- Louisville, KY. Louisville has convened over 20 IT employers as part of the Code Louisville initiative to train and place new software developers, including Glowtouch, Appriss, Humana, Zirmed, and Indatus. Louisville will build on this work in support of the TechHire Initiative: the city will recruit a high-quality coding bootcamp to Louisville and establish a new partnership between Code Louisville and local degree granting institutions to further standardize employer recognition of software development skillsets.
A $100 million competition for innovative approaches to connect Americans with disabilities, disconnected youth, and others to the fastest path to a good job in technology and other in-demand fields.
Today the Administration is announcing its commitment to make $100 million available through the Department of Labor to support innovative approaches to moving lower skilled workers with barriers to training and employment on the fastest paths to well-paying information technology and high growth jobs in industries like healthcare, advanced manufacturing, financial services and other in-demand sectors. The grant will focus on providing workers the skills for a pathway to the middle class while providing employers with the skilled technology workers need to grow and expand. This grant will serve people with barriers to accessing training including people with childcare responsibilities, people with disabilities, people with limited English proficiency, and disconnected youth, among others. It will serve both unemployed and low skilled front line workers.
Grants will pilot and scale innovative partnerships between employers, workforce boards, training institutions, non-profit organizations, and cities and states across the country. These partnerships will support the implementation of job-driven training strategies to help workers complete basic and technical skills training using evidence-based strategies such as accelerated learning, work-based learning and Registered Apprenticeships. A solicitation for applications for these partnerships will be available this fall and awards will be made next year. These grants will be financed by a user fee paid by employers to bring foreign workers into the United States under the H-1B nonimmigrant visa program.
Private sector leaders are announcing tools and resources to scale continued innovation in technology training, with a focus on reaching under-served populations.
Expanding accelerated models for training in months not years:
- A group of 10 bootcamps are jointly announcing a shared, third-party validated format for annually publishing completion and employment outcomes to help continue to drive innovation in the bootcamp model.
- The accelerated training providers Dev Bootcamp, Hack Reactor, Microsoft, Treehouse Island, Inc., and Udacity will all be expanding free or discounted training slots for underserved communities and individuals.
General Assembly will work with community colleges, other training providers, and employers with the aim of further standardizing web development training
- Flatiron School, Hackbright Academy, and Rural Sourcing are announcing they will provide pro bono consulting to help interested communities expand and improve training.
- Cisco will provide select individuals interested in career opportunities in IT with free access to online IT networking skills including hundreds of online training assets.
Support for local leaders:
- Opportunity@Work, a national civic enterprise that is launching at New America today, will aim to connect policy to action and will collaborate with private and philanthropic partners to create freely available tools to scale-up employer commitments to inclusive hiring practices, to facilitate a nationwide learning network for communities, and to create new financing to help lower-income Americans be trained and placed into technology jobs.
- Capital One, through its FutureEdge initiative, a $150 million effort that will help increase tech skills and hiring, will collaborate with Opportunity@Work to provide support tailored to the needs of communities.
- #YesWeCode commits to delivering $10 million in scholarships for 2,000 underserved minorities across the nation, to attend coding bootcamps over the next ten years.
Using data and innovative hiring practices to expand hiring to include non-traditional training paths:
- CEB will develop their own best practices playbook for employers with guidance to private and public employers on how to recruit tech talent from non-traditional sources as well as free labor market snapshots from CEB Talent Neuron for select communities to surface talent supply-demand gaps.
- LinkedIn will provide free data about the supply and demand of IT skills to communities to help them identify shortages and focus training resources on skills most in-demand.
- Knack will for the first time make its aptitude test technology available free of charge to employers, communities, and accelerated training providers that are launching inclusive training and hiring campaigns aimed at underserved minorities, women, and veterans.
A complete list of private sector commitments can be found here.
The President’s Agenda to Create Pathways to the Middle-Class Through High-Quality, Job-Driven Training. TechHire is part of the President’s broader agenda to invest in job-driven training:
- Vice-President Biden’s Job-Driven Training Review. The President’s TechHire initiative builds on the job-driven training review that the President asked the Vice President to lead in the 2013 State of the Union. Amongst other findings, the Vice President’s review identified information technology generally and cybersecurity in particular as an emerging area of growth that requires job-driven training strategies to meet business needs and provide more workers with a path to the middle class.
- VA Accelerated Learning Competition. To ensure that Veterans can take full advantage of innovative learning models, VA will apply $10M in innovation funding to leverage accelerated learning and test its effectiveness for transitioning Servicemembers and Veterans over the next two years. VA will concentrate this initiative in communities where conditions are conducive for VA to provide industry-specific and place-based support to Veterans and transitioning Servicemembers
- American Apprenticeship Grant Competition. Last year, DOL opened a $100 million competition to spur partnerships between employers, labor, training providers, and local governments to expand apprenticeships into high-growth fields like information technology and scale models that work. The deadline for this application is April 30, 2015, and more information is available at the Grants.gov application page.
- Information Technology Industry-Credentialing partnerships. The President’s FY2016 budget proposes $300 million to fund IT jobs partnerships between regional employers to develop and adopt assessments and credentials that will give more people the chance to qualify for a better, higher-paying tech job regardless of their pedigree.