Giving Compass' Take:

· Joseph Parilla explains how talent in the workforce is driving economic development and why economic development organizations must evolve and invest in talent development.

· How can donors invest in workforce talent development? Why is this important for society? 

· Read more about talent-driven economic development. 

In his recent book, The Gift of Global Talent, Harvard economist William R. Kerr argues that talent is the world’s most precious resource. Across America’s network of regional economies, this is undoubtedly true. The collective knowledge and capabilities of the U.S. workforce is worth an estimated $240 trillion—four times more valuable than the country’s physical capital stock and ten times more valuable than all the urban land in the United States.

Given this relative value, it’s not surprising that an overwhelming body of evidence concludes that economies grow when they develop and deploy their people in ways that maximize their productive potential.

At its most basic, economic development is human development. It is the nation’s workforce and entrepreneurial ingenuity which generates economic prosperity. This is why the United States invests nearly $1 trillion a year in education. It’s why businesses invest anywhere from $88 billion to $590 billion on training. And it’s why more Americans than ever are seeking education beyond high school.

Yet, for all that investment, something feels very broken about the labor market. Education and training systems are too unequal and unclear, which complicates the journey from school to work for many young Americans. In a brutal twist of irony, most corporate training investment goes to workers that are already highly educated.

These dynamics influence the ability of cities and states to prosper and grow their economies, yet local and state economic development policy is still struggling to address such labor market challenges.

Read the full article about talent and economic development by Joseph Parilla at The Brookings Institution.