By Tom Latek
Kentucky Today
The General Assembly’s Workforce Attraction and Retention Task Force has issued its findings and recommendations, which have been submitted to legislative leadership for possible legislative consideration during the 2025 regular session.
Their findings include:
• The state faces several workforce challenges, including barriers to entry and a significant decline in participation in the labor force as workforce growth has been stagnant since 2010. Despite the decline, there is an increase in demand for workers as job openings outpace available workers by one-and-a-half job openings for every Kentucky job seeker.
• Workforce opportunities within the state require policy changes. For example, Kentucky and Tennessee compete for service members who transition into the workforce from military bases such as Fort Knox and Fort Campbell. Kentucky has historically trailed Tennessee, which experts say is due to Tennessee’s economic and military-friendly policies.
• Attract skilled workers from outside the state, as it has historically exported more workers than it imported. The panel discussed several methods of workforce attraction, including remote work opportunities in eastern Kentucky and policy alignment with neighboring states to become more competitive.
• Expand the ability to retain skilled workers, like transitioning service members who are lost to neighboring Tennessee, formerly incarcerated individuals, and those in rural areas with unique regional challenges.
Legislative recommendations include:
• Guidance on the process for $250,000 funding appropriated to hire a consultant to determine specific policy options for fund recipients. Develop regional and statewide marketing programs in consultation with the Cabinet for Economic Development, the Tourism, Arts, and Heritage Cabinet, and the Education and Labor Cabinet.
• Aid high school students in obtaining technical skills before graduation and expand current career and technical programs to middle schoolers.
• Remove barriers for licensing and credentialing in occupations for Kentucky’s historically untapped workforce and refugee population and provide opportunities to attract foreign workers to Kentucky.
• Eliminate state income tax for military retirees.
• Expand employment opportunities and services to untapped employee segments of Kentucky’s population, including those with disabilities, nonviolent offenders, and people with substance use disorder. Create programs to incentivize employers to use this untapped resource.