Defining Economic Development

Economic development is essentially about enhancing the factors of productive capacity, including land, labor, capital, and technology, of a national, state or local economy. By using its resources and powers to reduce the risks and costs which could prohibit investment, and consequently inhibit community economic development programs, the public sector often has been responsible for setting the stage for employment-generating investment by the private sector. Workforce³ One can help both achieve their goals!

The public sector generally seeks to increase incomes, the number of jobs, and the productivity of resources in regions, states, counties, cities, towns, and neighborhoods. Its tools and strategies have often been effective in enhancing rural economic development and community development initiatives. Factors that a community might have a direct bearing on include:

Labor Force (workforce preparation, accessibility, cost)
Infrastructure (accessibility, capacity, and service of basic utilities, as well as transportation and telecommunications)
Business and Community Facilities (accessibility, capacity, and service to business incubators, industrial/technology/science parks, schools/community colleges/universities, sports/tourist facilities)
Environment (physical, psychological, cultural, and entrepreneurial)
Economic Structure (composition)
Institutional Capacity (leadership, knowledge, skills and the role of community colleges in economic development) to support economic development and growth.

There are trade-offs, however, between economic development goals of job creation and wealth generation that may affect community economic development. Increasing productivity, for instance, may eliminate some types of jobs in the short-run.

There is lively debate within the field about the differing goals for place-based economic development strategies and also about whether place-based or people-based is best. Value differences, contending ideological positions, and varied theories of how economic development occurs and how it should be practiced all come into play.

The U.S. Department of Labor-Employment and Training Administration’s national, state and local initiative is geared toward economic development professionals, workforce development professionals, workforce investment board members, chambers of commerce, elected officials, educators and others in the position of servicing the workforce through the over 3,500 One-Stop Career Centers located throughout the country. Please click here now to be taken to the Workforce³ One website for more information.

Theories for Economic Development

Economic development encompasses a wide range of concerns. To most economists, economic development is an issue of more economic growth and an overall sustained economic development plan. To many business leaders, economic development simply involves the prudent application of public policy that will increase U.S. competitiveness in the marketplace.

To environmentalists, economic development should be sustainable community development projects that harmonize natural and social systems. To labor leaders, it is a vehicle for increasing wages, benefits and basic workforce education & development through workforce training initiatives. To community-based leaders and professionals, economic development leads to community development and a way to strengthen inner city and rural economies in order to reduce poverty and inequality. To public officials at state and local levels, economic development embodies the range of job creation programs and career development counseling.

One Stop Staff…Workforce Development Professionals…Workforce Investment Board Members…Chambers of Commerce…Elected Officials…Labor & Economic Analysts…Economic Development Professionals… Educators…Employers…Employees

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Definitions That Address Equity and Sustainability

Economic development policymakers and practitioners who are concerned about economically disadvantaged and depressed communities highlight some different issues when they define economic development. Community economic development typically has five goals:

Stimulating a self-sustaining process of economic development.
Creating jobs at acceptable wages, with appropriate benefits and career ladders for area residents.
Producing goods and services that meet social needs, like affordable housing, lowered energy costs, better health care, and accessible day care.
Establishing greater community control, accountability, and participation in basic economic decisions such as hiring, investment, and location.
Broadening business and asset ownership within poor and ethnic minority communities.

The first objective is shared by other more conventional economic and business development strategies. But the last four distinguish community development from many traditional economic approaches and are especially important for both low-income and working class communities. The practice of community economic development also has a strong institution-building dimension, involving community development of economic organizations controlled or owned by residents of the area where these institutions are located. These might include business firms, industrial parks, banks, credit unions, cooperatives, community development corporations, and mutual housing associations.

Why Economic Development Is Important

Economic development is necessary for sustaining the competitiveness of the United States and raising overall productivity and incomes. Economic development can help maintain a high level of employment and job quality for all Americans. It can help to foster community development by creating the jobs necessary for providing middle-class opportunities for the jobless and working poor. Economic development provides the earnings needed to make further investments in workforce investment act funding, workforce education, human capital performance fund, development of competency models, government services, amenities, infrastructure, and quality of life.

For more information click here to register on Workforce³ One’s website for access to webinars, to download tools and products, search the document library and archive, submit documents and links for posting consideration, and more.

Community Development

Workforce³ One’s focus is on forming partnerships to design practical applications and disseminate information that helps to implement effective workforce solutions and community development efforts,

Workforce³ One wants you!

Workforce³ One offers:

Live learning events
Toolkits to help employers understand available services
Community building for sharing best practices and learning
Information about model communities and worksites

Community development projects and investments are more likely to be successful if they:

Are based on a comprehensive community development plan or audit
Bring together a partnership of public and private sector interests including educators, employers, economic development professionals, and job-seekers

The ultimate goals of community development programs are to attract growing businesses and to create a compatible environment for community reinvestment at all levels. As multiple projects are accomplished within a community's plan, each investment builds on the next, making the environment better suited for sustainable community economic development.

Learn what Workforce³ One can do for you!

Workforce³ One, a new partnership between the US Department of Labor/Employment and Training Administration ( ETA), the Center for Employment Security Education and Reseach (CESER) which is the 501c3 affiliate of the National Association of State Workforce Agencies (NASWA), and the National Association of Workforce Boards (NAWB), represents the merging of national, state, and local leadership into one system that is committed to embracing and installing a demand-driven culture in the publicly funded workforce system. Through an integrated webspace organized by community, these partners are pleased to offer an innovative knowledge network designed to create and support a demand-driven community. To join a community, indicate your preference during the registration process. You may change your community preference if needed.

Economic Development

Economic development is a critical link in a demand-driven workforce development system. Through better partnerships with educators and workforce development, the economic development professionals can help attract high growth industries and occupations and improve the quality of our communities while developing our national and local economies. Click Here To Join Now!

Educators

Members of the educational system are committed to helping employers prepare qualified workers for careers in emerging high growth industries. Partnering with the Workforce Investment System (WIS) is an integral part of this process, linking to valuable resources and tools that help meet the needs of employers, and build a local workforce that is in high demand. Click Here To Join Now!

Employers & Associations

The Workforce Investment System (WIS) is a key vehicle for employers to access human capital. By partnering with WIS, employers can access services to obtain, train, and retain skilled workers, understand labor market trends, and meet the demands of growing businesses. Click Here To Join Now!

Workforce Investment System

Access to timely tools and information is critical for supporting operations, building effective partnerships, and outreach efforts in the way of community development projects by the Workforce Investment System (WIS). Tap into a multitude of resources that assist in the integration of demand-driven principles, provide partnership and skills building tools, and help position services favorably with high growth industry employers. Click Here To Join Now!