Written by Prince Ohilebo Garuba, Executive Director, Ohio Association of Goodwill Industries, Columbus, Ohio
In the era of artificial intelligence, talent has emerged as the foundational infrastructure for urban prosperity. Just as past generations invested in physical systems like highways and power grids to stimulate economic expansion, cities today must prioritize human capital with equal determination. Workforce development is no longer a supplementary policy concern—it is central to economic resilience and innovation. Communities that treat education, training, and employment pipelines as essential public infrastructure will lead in the evolving economy.
Historical Precedent: The Interstate Highway Model
During the mid-20th century, the U.S. undertook a transformative investment in transportation. The 1956 Federal-Aid Highway Act, signed by President Dwight D. Eisenhower, was framed as both a defense and economic modernization initiative. Its effects were profound: logistics hubs, manufacturing centers, and commercial zones developed along newly built interstates. According to the Federal Highway Administration, as summarized by the Richmond Fed, increased highway spending accounted for roughly 25 percent of U.S. productivity growth between 1950 and 1989. Cities connected to the interstate network flourished, while those excluded faced long-term economic decline.
This historical lesson applies directly to workforce development today. Just as road access once determined economic fate, access to skilled labor now shapes where businesses choose to locate. Talent availability is becoming the new geographic advantage.
AI and the Transformation of Employment
The rapid integration of AI into workplaces is accelerating shifts in job demand. Entry-level roles are diminishing, and mid-level management functions are being redefined or eliminated. Without proactive measures, these changes could displace millions, increasing structural unemployment and widening inequality.
Globally, automation and AI are expected to eliminate 85 million jobs by 2025, while generating 97 million new positions (World Economic Forum). The critical challenge for cities is not the net loss or gain of jobs, but whether local populations are equipped to transition into emerging roles. Regions that invest in education and training from secondary school through postgraduate levels will be better positioned to seize future opportunities.
Workforce Development as Economic Strategy
Modern corporate site selection increasingly prioritizes access to skilled labor over tax incentives. The U.S. Economic Development Administration found that its $1.3 billion allocated to workforce initiatives in fiscal year 2022 led to the creation or preservation of approximately 250,000 jobs and attracted $3.6 billion in private investment. For municipal leaders, cultivating a capable labor force is no longer a social program—it is economic infrastructure, comparable in importance to transportation networks.
Equity and Regional Competitiveness
National employment statistics often mask local disparities. Residents of low-income urban and rural areas frequently encounter obstacles such as lack of affordable childcare, unreliable transit, and limited access to retraining. Without targeted interventions, entire communities risk exclusion from the new economy.
Expanding workforce access in underserved areas does more than promote fairness—it strengthens regional economic resilience. A broader, more inclusive talent pool enhances a city’s appeal to employers and improves its capacity to adapt to technological disruption.
Collaborative Models for Workforce Growth
No single entity can build talent infrastructure alone. Success requires collaboration among local governments, businesses, educational institutions, nonprofits, and workforce agencies. These partnerships enable resource pooling, program alignment with industry needs, and scalable impact.
Employer surveys confirm the urgency: 77 percent report difficulty filling positions, the highest level in 17 years. For city officials, the competition is no longer just about attracting companies, but proving that their communities can supply the skilled personnel those companies require.
Looking Ahead: A Defining Choice
Just as the highway act reshaped the nation’s economic geography, today’s leaders face a pivotal decision. Will they treat talent development as core infrastructure, or risk being left behind? Cities that act decisively—by integrating workforce training into their foundational planning—will position themselves to attract new industries, support business growth, and expand opportunity for all. Those that delay may face decades of economic marginalization, much like towns bypassed by the interstate system.
— news from National League of Cities
— News Original —
Talent as the New Infrastructure: How Cities Can Compete in the Age of AI
Authored by Prince Ohilebo Garuba, Executive Director, Ohio Association of Goodwill Industries, Columbus, Ohio n nAI and the future of work mark a new era where talent has become the critical infrastructure. Just as cities once built highways, ports and power grids to fuel growth, today they must invest in people with the same urgency and scale. The cities that treat workforce development as core infrastructure, not as an afterthought, will be the ones that thrive in a rapidly shifting economy. In this new environment, talent pipelines are every bit as essential as roads and bridges, and they will determine which communities lead in innovation, competitiveness and shared prosperity. n nLearning from History: Highways as a Blueprint n nFrom the 1950s into the 1960s, the United States invested heavily in interstate highways to drive economic activity and growth. In 1956, the Federal-Aid Highway Act was signed by President Dwight D. Eisenhower. While framed partly as a national defense measure, it was equally an investment in commerce and modernizing the economy. n nThe impact was transformational. Businesses followed the roads: warehouses, factories and logistics hubs sprang up near interstates. Those connections generated economic advantages that lasted for decades. According to the Federal Highway Administration (as summarized by the Richmond Fed), about one-quarter of U.S. productivity growth from 1950–1989 is attributable to increased highway investment. Cities with major interstates prospered, while those bypassed often stagnated. n nToday, the same can be said for workforce development. Just as highways once determined which cities would thrive, talent pipelines now decide which communities will compete and succeed in the future economy. n nThe Future of Work: AI as a Catalyst n nMore than ever, the conversation about the future of work has intensified. AI is being adopted more quickly than almost any technology in recent history, and we are already seeing many entry-level positions fade as well as some middle-management roles begin to change or disappear. Without action, this disruption could displace millions of workers, increasing long-term unemployment and poverty. n nGlobally, automation and AI are projected to displace 85 million jobs by 2025, while creating 97 million new roles in their place (World Economic Forum). The challenge for cities is not whether jobs will change, but whether they will have the workforce ready to fill the new ones. The communities that prepare residents today, through programs stretching from high school to college to postgraduate training, will have a skilled workforce positioned to capture tomorrow’s opportunities. n nTalent Pipelines as Economic Development Strategy n nCompanies no longer select cities based on tax breaks alone. Increasingly, they locate where they can find the skilled workers they need. Workforce readiness has become the deciding factor in economic development. n nWorkforce investments also pay off. The U.S. Economic Development Administration reported that its $1.3 billion investment in workforce development projects in FY 2022 created or saved roughly 250,000 jobs and generated $3.6 billion in private investment. For local leaders, the workforce is not a programmatic issue, it is the modern equivalent of highways, the core infrastructure that attracts business investment and drives prosperity. n nNeighborhood Equity = Citywide Competitiveness n nThe need to build talent infrastructure is also about equity. National numbers hide local disparities: residents in low-income, urban and rural communities often face higher barriers to training and employment. Without access to affordable childcare, reliable transportation and reskilling opportunities, entire communities risk being left off the talent map. n nCities that expand access to workforce opportunities for underserved neighborhoods not only reduce inequality but also strengthen their entire economy. A broader talent base makes the city more attractive to employers and more resilient in the face of disruption. n nBuilding Talent Infrastructure Through Partnerships n nNo city can do this alone. Building workforce infrastructure requires cross-sector collaboration among city leaders, employers, workforce boards, nonprofits and educational institutions. These partnerships allow communities to braid resources, scale impact, and align training programs with the industries driving local growth. n nNational surveys back this up: 77 percent of employers report difficulty filling roles, the highest in 17 years. For mayors and city councils, this means the competition is not just about attracting companies, but about proving their city has the skilled workforce to sustain them. n nA Look into the Future n nJust as the Federal-Aid Highway Act reshaped America’s economic map, today’s leaders face a similar decision. Will they invest in talent as infrastructure, or risk being bypassed in the future economy? n nCities that act boldly, framing workforce development as essential infrastructure will build the pipelines of talent needed to capture new industries, attract employers and expand opportunity for all residents. Those that do not may find themselves, like towns left off the interstate grid, struggling to catch up for decades.