Strengthening Communities Through Workforce and Economic Collaboration

If there’s one keyword to pull from the Workforce Innovation and Opportunity Act of 2014 (WIOA), it’s collaboration. WIOA doesn’t just encourage cooperation—it mandates it. States must submit unified plans outlining how workforce and economic development agencies, educational institutions, and community partners will coordinate efforts to build a more resilient labor force (Congressional Research Service, 2022). This legal framework acknowledges what seems like common sense: when employers have access to a skilled, adaptable workforce, they’re better positioned to grow, and, in turn, boost the region’s economic health. Yet despite this shared goal, true collaboration remains more of an exception than the norm. Recent studies show that even when the infrastructure for partnership exists, misaligned funding streams, siloed priorities, and short-term planning often prevent workforce and economic development agencies from fully joining forces (Sánchez & Qian, 2024; National Association of Workforce Boards [NAWB], 2024). 

Collaboration in Action: How Workforce Agencies Bring People and Solutions Together

Workforce development agencies are at their best when they serve as connectors, bringing together employers, schools, economic planners, and community groups to solve real-world problems. While the exact setup may look different in each region, the most successful efforts share a few key qualities: they’re responsive to local needs, involve shared decision-making, and focus on creating value for everyone involved (NAWB, 2024).

These partnerships have delivered real results, such as:

• Creating regional training hubs
• Placing workforce staff in community spaces
• Coordinating critical supports like transportation or child care for jobseekers

The WIOA Framework: Turning Policy into Practice

WIOA isn’t just a funding source, it’s a blueprint for alignment. It requires states to develop unified plans that coordinate workforce, education, and economic development efforts across regions Congressional Research Service, 2022). At the local level, Workforce Development Boards (WDBs) are tasked with putting these plans into practice.

These mandates are formalized through tools like Memoranda of Understanding (MOUs), which clarify how resources are shared and how collaboration will be sustained. The goal is to move from siloed efforts to integrated service ecosystems that make the most of public investment while expanding access for jobseekers and employers alike (Congressional Research Service, 2022). When implemented effectively, WIOA helps communities shift from fragmented program delivery to long-term regional workforce strategy (NAWB, 2024).

These challenges are prevalent in regions with limited administrative capacity or where systems operate in silos. As a result, many partnerships fail to move beyond surface-level coordination.

To move forward, regions can empower workforce development boards or regional intermediaries to serve as neutral connectors, facilitating collaboration among stakeholders. These entities are well-positioned to align stakeholders through shared data, coordinated funding, and clearly defined performance goals. Supported by WIOA planning structures and formal agreements like MOUs, this approach offers a pathway from fragmented programming to integrated systems that better serve both job seekers and employers (Meléndez et al., 2015).

Suggestions for Strengthening Collaboration

Improving collaboration between workforce and economic development agencies requires more than intent. It demands structure, trust, and shared purpose. To move from parallel efforts to truly integrated strategies, regions can consider:

• Designating a coordinating entity (such as a workforce board or regional intermediary) to serve as a neutral organizer of joint initiatives and shared planning (Meléndez et al., 2015).
• Developing shared performance metrics that track outcomes across agencies, such as credential attainment, job placement, and equity benchmarks.
• Co-locating staff or cross-training frontline teams to better serve both jobseekers and employers through unified service delivery.
• Aligning employer engagement strategies by forming joint business service teams or sector-based advisory groups that include both systems.

These strategies help convert policy intent into sustainable practice, reducing duplication, building trust, and focusing everyone on what matters most: outcomes for people and businesses.

Shared Goals, Real Barriers

Workforce and economic development agencies share a common goal: to build thriving, resilient communities where businesses grow, and individuals succeed. WIOA provides the framework, and real-world examples like Pennsylvania’s Industry Partnerships show that collaboration is not only possible but also effective. However, as the research makes clear, good intentions are not enough; overcoming barriers such as fragmented governance and resource competition requires deliberate strategies, shared accountability, and trust built over time.

Let’s Build Stronger Communities Together

At EDSI, we specialize in aligning workforce and economic development strategies to drive meaningful, measurable impact. Whether you're a local workforce board, funder, or community partner, we’d love to explore how we can support your goals and bring collaborative solutions to life in your region. If this work resonates with you, we invite you to connect with us using the information form below.