[Congressional Record Volume 144, Number 14 (Tuesday, February 24, 1998)]
[House]
[Page H507]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    ON THE INTRODUCTION OF LEGISLATION TO ALLEVIATE THE INFORMATION 
                       TECHNOLOGY WORKER SHORTAGE

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 21, 1997, the gentleman from Virginia (Mr. Moran) is recognized 
during morning hour debates for 5 minutes.
  Mr. MORAN of Virginia. Mr. Speaker, tomorrow I will introduce a 
package of 5 bills to help our economy address the critical shortage in 
information technology workers. We are fortunate to live and work in a 
time of economic growth and expansion. Unemployment is low and 
production is up. But we cannot take these good times for granted. We 
have to continue to take those measures necessary to sustain our 
thriving economy.
  One of the hazards that could derail our economic engine is a growing 
shortage of skilled workers. Too many firms across the country are 
facing serious difficulties in hiring workers with needed skills. This 
shortage, which has been estimated to be as high as 190,000 employees 
nationwide, is especially restricting the growth and development of our 
Nation's information technology industry, which is the vanguard of our 
national economic boom. This shortage of skilled workers is costing our 
economy over $10 billion a year in lost revenue.
  But high tech firms are not the only ones suffering from this 
workforce shortage. When asked about the main barriers to expansion and 
competitiveness, companies across the country in many different 
industries point to the difficulty of getting skilled workers.
  While the current low unemployment rate contributes to this problem, 
its roots are more fundamental. In the new economy, skill requirements 
are going up in many industries, even so-called low-tech industries. 
More than half of the new jobs created require some education beyond 
high school. The percentage of workers who use computers at work has 
risen from 25 percent to 46 percent, nearly half, in the last 10 years. 
States such as Colorado, Maryland, Rhode Island, Washington have all 
recently released reports highlighting the pressing need of employers 
for skilled workers.
  Standard supply and demand economics will not address this shortfall. 
Most firms, but particularly small and medium-sized enterprises, have 
limited capacity to engage in significant and sustained workforce 
development efforts. Managers and owners of most firms are simply too 
busy running their business to develop training systems. Firms lack 
information on the type of training they need and where to get it. And, 
unless their competitors are willing to invest in training as well, 
such an investment will increase the relative cost of their products 
above that of their competitors.
  So there is a natural inclination not to be the first ones to invest 
in training. And so when confronted with a shortage of skilled workers, 
most firms try to hire workers from other companies. Competition for 
skilled employees is so high that companies are offering irresistible 
packages, including signing bonuses, long-term bonuses, finder's fees, 
to lure trained employees away from firms who have invested the time 
and money to train them. Just across the Potomac River, SRA 
Technologies, a fine firm, a technology firm in my district, offers a 
$10,000 bounty to employees for every trained worker who signs on as a 
result of their recommendation. But we are not increasing the supply 
sufficiently, which is the real long-term solution to this problem.
  As the United States enters its unprecedented seventh year of growth, 
attributed in part to the dynamic expansion of the technology industry, 
Congress must move to remove barriers to technology industry expansion. 
My legislation addresses the worker shortage and the need to provide 
additional training through a number of approaches.
  The first bill creates Regional Skills Alliances. Modeled after the 
successful Manufacturing Extension Program, this bill would provide 
Federal support to encourage companies to participate in consortia 
which would address their industry's specific skill needs. The Federal 
involvement in this program amounts to one-third of the cost. Every 
dollar in Federal support will be matched by a dollar in State and 
local government support and a dollar in direct industry support, so 
that the competitive pressure not to be the one to take the initiative 
on training is relieved.
  The second provision allows the Secretary of Labor to establish 
Regional Private Industry Councils. PICs play a constructive role in 
addressing the workforce needs within a State. But these organizations 
are State organizations and not formed to address problems that may 
cross State lines. To remedy that situation, my legislation would allow 
the Secretary of Labor to certify and fund regional PICs that address 
regional problems. They would be funded directly by the Secretary of 
Labor to ensure that they do not detract from existing State programs.
  The third bill would offer employers who train employees for 
information technology jobs a tax credit for 50 percent of the training 
costs up to $2,500 per year per employee.
  The fourth bill would ensure that the Federal Government's investment 
in training is well spent by allowing these Private Industry Councils 
to reward bonuses to training providers with a high percentage of 
placement. This will help establish a more outcome-based system to 
ensure that training providers emphasize placing their students in 
jobs. My bill would amend JTPA to allow funds to be used for bonuses 
for the most successful training providers.
  It would also allow high technology professionals to more easily 
immigrate to the United States so that we are not exporting jobs abroad 
but are paying American workers at home. It is a good and necessary 
package of legislation. I urge my colleagues' support for it.

                          ____________________