Gov. Charlie Baker is warning that the Massachusetts workforce may never be the same after the pandemic — and he wants lawmakers to authorize his spending plans to retrain workers and boost homeownership in the post-COVID era.
A new report on the "future of work" that Baker commissioned says the reduced demand for office real estate, along with an increase in activity in residential areas, will reshape how Massachusetts does business and could threaten the state's standing as an innovation and economic leader without government intervention.
"The report's detailed analysis of workforce and economic trends gives us a roadmap for how we can take tangible steps to make sure that Massachusetts can continue to grow and thrive in a post-pandemic world," Baker said at a press conference announcing the report's release.
The report, written by consulting firm McKinsey and Company, also found an increased need for affordable childcare, which Baker proposes answering with enhanced certification programs for the early education industry.
Baker has touted his plans to invest $1 billion in housing to stimulate housing construction post-pandemic and promote home ownership by subsidizing down payments for first-time owners. The legislature, to date, has resisted Baker's housing initiatives.
"I worry a lot," Baker said, "that we are going to push people who are renting today — who might have the ability to buy with down payment assistance — out of the communities that they're in because they don't own."
The report also concludes that state-run transit systems will need to change to accommodate commuters with less traditional hours and destinations. The MBTA has begun shifting away from commuter rails schedules based around popular rush hours in the morning and evening, instead implementing more consistent service throughout the day to accommodate travelers who may set out for the office at unconventional times or only a few days a week.
"This new approach represents a shift toward more consistent regular service throughout the day compared to pre-pandemic service that was heavily skewed toward morning and evening rushes," Lt. Gov. Karyn Polito said.
The report suggests that as many as 300,000 to 400,000 Massachusetts residents will need to transition to different occupations in the next decade because of existing workforce trends exacerbated by the pandemic. Baker wants to use $240 million in money provided by the federal American Rescue Plan Act to expand existing workforce training programs to accommodate more workers and employers desperate for specially trained employees.
"These job training programs are key to meeting these long-term needs, but they're also crucial to closing the skills gap that exists right now throughout our economy and meeting employers needs today," Baker said, adding that "it's vital that we take action on many of these elements quickly and begin to invest these funds as soon as possible."
To get federal money out the door quickly, Baker will need to convince lawmakers his spending plans should be adopted in the near term. The House and Senate plan to hold hearings on how to use the more than $5 billion in ARPA funding later this month, but there is little sign lawmakers intend to move as quickly as Baker would like to authorize spending on workforce development, housing and the rest of Baker's proposals.
