What employers should do to build a pipeline of talented Gen Z workers

By Weadé James and Veronica Goodman

Employers can do more to support career and technical education programs

Policymakers and employers must invest in career and technical education, such as training high-school students to become nursing assistants.

Young people graduating today face a notoriously difficult job market. The unemployment rate for workers in their 20s was more than 3 percentage points higher than the overall workforce as of June 2026. Many Gen Z students say they feel unprepared for life after graduation - and hiring managers agree, reporting that this generation is less equipped for the workforce than past ones.

Fortunately, there is an excellent option to set young working Americans up for success while providing employers with the talent they need: career and technical education (CTE). To maximize its impact, policymakers and employers must partner to invest in and scale these opportunities nationwide.

What is CTE?

CTE prepares students for the workforce through a mix of classroom training and practical, hands-on experiences with local businesses. While this training commonly begins in high school, it can also take place in trade schools, regional centers and community colleges.

A core component of CTE is its reliance on employer partnerships. By hosting students for work-based learning opportunities, businesses boost their local communities, streamline their own talent recruitment and ensure students are trained for high-demand careers.

Historically, these programs have relied on federal funding like Perkins V, the Strengthening Career and Technical Education for the 21st Century Act. While this funding stream has been eroded by inflation and failed to keep pace with population growth, state-level investments have been expanding to fill the gap. For example, Pennsylvania increased its CTE investments by nearly 50% since Gov. Josh Shapiro took office in 2023. In 2024-2025, California invested a total of $497 million in ongoing funding for specific K-12 CTE programs, including $300 million annually over the last five years through the California Technical Education Incentive Grant (CTEIG) program, which had a one-time increase of $150 million this year.

A win-win for employers and students

CTE benefits everyone involved. A 2021 national survey of over 300 employers revealed that 77% had hired someone in part because of their CTE experience. Employers find CTE graduates highly attractive candidates because they offer relevant skills and improve hiring outcomes.

It's no surprise that a vast majority of employers overwhelmingly support expanding public investment in CTE, noting they prefer high-school graduates equipped with real-world skills. Some employers have already made CTE a major part of their talent strategy, such as IBM (IBM), which has a range of programs from internships to registered apprenticeships. More employers might come to the table if policymakers design incentives to make CTE participation more attractive, such as training subsidies or tax credits.

Research also shows that high school CTE participation improves student outcomes. Students who participate show statistically significant increases in academic achievement and graduation rates, making CTE an effective tool for keeping students engaged and preventing dropouts. What's more, CTE participants are more likely to be employed after high school or to enroll in two-year colleges. This underscores the need to expand CTE pathways within community colleges to boost economic mobility.

These community college partnerships yield tangible results. For example, the Community College of Rhode Island partnered with Delta Dental of Rhode Island in 2021 to provide scholarships and dental hygiene training. Their collaboration resulted in a 20% increase in enrollment in the college's dental hygiene program in 2025, leading to an expansion of the regional pipeline of dental professionals.

States leading the way

The growing momentum behind CTE benefits both the private and public sectors, allowing employers to cultivate local talent. Several states are leading the charge with innovative approaches to supporting CTE.

For example, Pennsylvania created programs to educate high-schoolers about municipal careers, preparing them for roles in state and local government. This model is critical, as there has been a growing public sector workforce over the last decade that is aging and needs a robust pipeline.

Meanwhile, Colorado passed legislation creating a public data system that tracks education and employment outcomes, giving employers clear insights into the skills and readiness of the local workforce. At the same time, Colorado also offers tax credits to businesses that expand apprenticeships into emerging industries.

Taking a more targeted rural approach, Washington launched a program that supports rural hospitals by training high-school students to become nursing assistants - directly responding to a critical healthcare shortage. These creative state-led initiatives put employers in the driver's seat for developing and recruiting early-career workers for their industries.

How employers can step up

Employers are direct beneficiaries of CTE, and they can do more to support and engage with these programs at both the federal and state levels.

First, businesses can advocate for increased Perkins V resources federally, while pushing state and local policymakers to shore up additional program funding. Employers can also build direct relationships by partnering with schools, labor unions, and workforce organizations to design and host internships and apprenticeships. They can also weigh in on program design to ensure training aligns with needs, maximizes return on investment, and leads to viable employment. And finally, employers can collaborate with local stakeholders to advocate for tax credits and training subsidies that make it more affordable and less burdensome for businesses of all sizes to host CTE students.

When employers actively engage with and advocate for CTE, they help create a more effective, sustainable system that meaningfully responds to the modern labor market's needs. Building these collaborative networks between schools, employers, and other stakeholders is the surest way to boost program participation, which will strengthen the economy and create a more secure future for young American workers.

Weadé James is the senior director of K-12 education policy and Veronica Goodman is the senior director for workforce development policy at the Center for American Progress.

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11-09-26 1428ET