[Congressional Record (Bound Edition), Volume 145 (1999), Part 1]
[Extensions of Remarks]
[Pages 317-318]
[From the U.S. Government Publishing Office, www.gpo.gov]



INTRODUCTION OF LEGISLATION TO ELIMINATE THE WORKFORCE SHORTAGE IN THE 
                         HIGH TECHNOLOGY SECTOR

                                 ______
                                 

                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                       Wednesday, January 6, 1999

  Mr. MORAN of Virginia. Mr. Speaker, we have been privileged to live 
in a time of unparalleled economic growth. Much of this growth is 
directly attributable to the high technology sector.
  The information technology sector contributes a larger share of our 
gross domestic product than almost any other industry. U.S. firms 
dominate the world market in both high tech products and high tech 
services. Over 3.3 million Americans are directly employed in high 
technology jobs.
  The workforce shortage faced by the technology sector threatens both 
our world dominance in the technology sector and our continued economic 
prosperity.
  Over the next ten years, the global economy is projected to grow at 
three times the rate of the U.S. economy. Basic high technology 
infrastructure needs, in just eight of the fastest growing countries, 
are expected to reach $1.6 trillion. If the U.S. does not seize the 
opportunity to supply the goods and services to these emerging markets, 
others will.
  But U.S. firms simply cannot compete if they do not have access to a 
highly trained workforce. There can be no doubt that our current 
workforce is failing to keep pace with the needs of industry. Some ten 
percent of high technology jobs are now vacant. U.S. firms who cannot 
find enough domestic workers are sending more and more contracts 
overseas. It is incumbent upon us to stop this trend.
  The 105th Congress helped mitigate this problem by enacting 
legislation which would raise the annual limit on temporary immigrants 
who are skilled in jobs for which there are a shortage of American 
workers. However, we cannot reasonably expect to eliminate the 
workforce shortage without addressing the crux of the problem: our 
failure to adequately train and re-train American workers.
  Existing government training programs have not sufficiently trained 
or placed workers in those sectors of our economy with the greatest 
need. To rectify this problem, I am introducing a legislative package 
to ensure that training programs provide the skills that American 
employers need by bolstering industry-driven training programs, 
creating incentives for successful placement, and providing for the 
special concerns that multi-state regions, such as the Washington 
Metropolitan Area, experience as they seek qualified workers.
  The bills I have introduced today are:


      H.R.   , to establish for regional skills training alliances

  Modeled after the successful Manufacturing Extension Program, this 
bill recognizes that in rapidly expanding industry, employers are best 
positioned to identify the skills and knowledge needed for emerging 
jobs. It would provide matching funds to encourage companies to 
participate in consortia that would address their industry's specific 
skill needs. Every dollar in federal support will be matched by a 
dollar in state or local government support and a dollar in direct 
industry support.


  H.R.   , to establish regional private industry councils for labor 
          market areas that are located in more than one state

  This bill allows the Secretary of Labor to establish Regional Private 
Industry Councils (PICs). PICs play a constructive role in addressing 
the workforce needs within a state. These organizations, however, are 
state organizations and not formed to address problems that may cross 
state lines. To remedy that situation, this bill would allow the 
Secretary of Labor to certify, and fund, regional PICs that address 
regional problems. The new PICs would be funded directly by the 
Secretary of Labor to ensure that they do not take from existing state 
programs.

[[Page 318]]




H.R.   , to permit payment of incentive bonuses to certain job training 
 providers that place large percentages of individuals in occupations 
                     for which a high demand exists

  This bill would ensure that the federal government's investment in 
training is well spent by allowing 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. This bill would amend JTPA 
to allow funds to be used for bonuses for training providers of 
specific direct training services. This creates an incentive for 
training providers to provide up-to-date training opportunities that 
coincide with market needs, and to help place trainees after they have 
completed their training.


   H.R.   , to allow employers a credit against income tax for high 
                    technology job training expenses

  This 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 credit provides an important 
incentive, yet requires that industry bears at least half of the 
training costs.

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