House committee advances workforce development bill to boost job skills

A proposed workforce development pilot project designed to strengthen North Carolina’s labor market passed through the House Committee on Commerce and Economic Development on April 8.

House Bill 574 establishes a grant program administered by the nonprofit North Carolina Workforce Development Coalition (NCWDC) to provide grants to employers to encourage employer-sponsored training. The program is intended to increase job creation, reduce employee turnover, enhance wages, and upgrade worker skills in industries underserved by existing educational frameworks.

“One of the main questions that I’ve had about the bill is, is this trying to get into the community college system?” said Rep. Cody Honeycutt, R-Stanly. “No, it is not. What we’re trying to do here is create a workforce development program for different various entities that don’t focus in the community college system, such as HVAC and welding.”

The bill excludes areas like HVAC or welding, already well-served by community colleges, and instead focuses on niche jobs where formalized training is lacking, but necessary.

“It may be something along the lines of meat butchering,” Honeycutt explained. “There’s not a meat butchering practice within a community college system. So, it just aims to focus on those types of areas and issues.”

Employees of North Carolina-based businesses working at least 30 hours per week would qualify. The bill targets North Carolina businesses with 20 to 1,500 employees, offering grants to cover up to 50% of eligible training costs, capped at $2,000 per trainee and $40,000 annually per employer. Eligible training must directly relate to an employee’s role, boosting outcomes like improved effectiveness or new job opportunities.

The program would cost an estimated $5 million, with ongoing talks involving the Labor Commissioner to explore existing or new funding sources.

By addressing workforce gaps through targeted, employer-driven training, the bill aims to enhance North Carolina’s economic resilience. The committee supported the proposal and passed it along to the House Committee on Rules and Calendar Operations.

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