Context and Overview

Our U.S. Emerging Talent Demand portfolio rests on a hypothesis that sectors with high labor demand and low labor supply will provide opportunities for outsized income gains for those who have the appropriate skills. In some areas, a supply and demand mismatch in the United States already exists. For example, the trucking industry has a gap of more than 1M drivers, while the technology sector requires tens of thousands of skilled workers across several industries. In other areas, we can predict growth in labor demand due to public and private funding commitments. The CHIPS and Science Act has prompted the construction and expansion of dozens of semiconductor factories nationwide. As a result, the industry projects the need to fill hundreds of thousands of positions. In each instance, the US is missing out on economic activity that can employ thousands of people with living wage jobs, which can help to support entire communities.

As the economy changes, individuals’ outcomes will largely depend on the availability and accessibility to training and placement services as well as how their employers treat them. The GitLab Foundation is interested in increasing individuals’ incomes and supporting a path to a living wage. However, certain segments of the population have been left out of economic growth, and more than 20% of all workers are stuck in low-wage jobs. While public and private investment continues to flow, we believe that investing in marginalized populations presents the highest opportunity to drive outsized wage increases in these sectors. This can include helping to channel funding to promising or untested solutions, unlocking public funding, or organizing disparate actors.

The investment areas below form the focus of the GitLab Foundation’s U.S. Emerging Talent Demand strategy. These job types are projected to generate millions of openings over the next five to ten years, are known to command higher entry-level salaries and the opportunity for career advancement, and are available to individuals with a range of education levels and work experience.

Strategic Considerations and Investment Areas

As we invest in these three areas, we will refine our strategic direction by tracking macroeconomic trends, assessing how each sector performs locally, and identifying which areas are uniquely positioned to increase earnings for those working below a living wage.

• Information Technology: As the world continues to integrate technology into daily life, technology-enabled careers will [grow steadily](https://www.bls.gov/news.release/ecopro.nr0.htm#:~:text=--Computer and mathematical occupations,for cybersecurity products and services.) in the next decade and will provide higher-earning career trajectories. Workers with limited experience or educational achievement can start in the industry making a living wage and, through stackable credentials and on-the-job training, can advance in their careers to increase their incomes. As public, private, and civil society adopt new technology platforms, we anticipate job growth in all sectors and across various job types. Cybersecurity, data analysis, and engineering are a few of the dozens of classifications projected to grow. While some higher-profile companies have downsized or reduced hiring, we are confident that technology-enabled job openings will continue to increase.
  • Guiding questions:
    • How can low-wage workers connect with high-paying opportunities, and what are the prerequisites to get these jobs?
    • Are high-growth careers available to rural and geographically isolated communities, and how can technological advances and infrastructure increase opportunities?
• Green Jobs: Significant public and private investments are helping to drive a renaissance in how we produce and consume goods and deliver services. As the world makes this transition, many roles and job functions will change. Renewable energy, advanced manufacturing, engineering, and sustainability are a few of the fast-developing sectors spurred by technological advancements, policy, and public will. Over the next decade, more than nine million jobs will be created through several national policies. The CHIPS and Science Act, Inflation Reduction Act, and Infrastructure Investments and Jobs Act will stimulate these sectors and help provide multiple entry points and career advancement opportunities for those with varying levels of education achievement and experience.
  • Guiding questions:
    • Are specific sectors more prepared than others for a green jobs transition - Manufacturing, renewable energy, batteries, etc.?
    • Given current private and public investments, how can philanthropy ensure that these jobs are available to varying levels of education and work experience? How can foundation investment help lower barriers to open jobs to historically excluded communities?
    • How can philanthropic dollars help to unlock public funding, and what is the role of developing small to mid-size organizations to position them to apply for public funding?
• Skilled Trades and Services: Construction, manufacturing, and transportation are among several job classifications known for ease of entry and higher-than-average starting salaries, due to low labor supply. The need for these positions is expected to grow as fewer individuals are currently enrolled in vocational training, older workers are retiring, and the country is investing billions of dollars into maintaining and developing new infrastructure projects. Public and private actors anticipate 1.3M annual openings in the skilled trade sectors through 2028. Additionally, as some positions open, others will be downsized or changed due to advances in technology and automation. We anticipate a continued need for upskilling, placement, and training as the skilled trades and services sector adapts to a changing economy.
  • Guiding questions:
    • How do vocational education, apprenticeships, and on-the-job training programs develop a strong pipeline of workers?
    • Which sectors are more susceptible to automation-driven job losses, and how can workers adapt to a changing environment?

Additional Considerations:

• What We Will Not Focus On: At this time, we have excluded retail and healthcare roles from our focus, given continued industry challenges in pay, job quality, and career progression. As we continue to develop our strategies, our focus areas may change. We will be open to thinking about how to move these workers from their current roles to higher-earning jobs.
• Acknowledging and Addressing Employment Barriers: A job opening is not a guarantee to a new career. We understand that barriers to employment persist, and we seek opportunities to overcome these challenges. Poor employer practices, inadequate transportation, prejudice, and low skill development can inhibit career growth. As we invest in these sectors, we will prioritize how partners develop creative ways to overcome obstacles to increase individuals' lifetime earnings potential.

Next Steps

1. Further research into local and national labor market trends, supported by our Impact Measurement & Analytics team and partners
2. The Foundation will issue a Request for Proposals in early 2024 to support this thesis area
3. Refresh this strategy, Q2 2024