As AI Threatens American Workforce, Van Hollen Introduces Legislation to Create Jobs and Tackle Long-term Unemployment

As concerns grow about the threats posed to the American workforce by AI - and as U.S. long-term unemployment hits nearly two million - U.S. Senator Chris Van Hollen (D-Md.) is introducing the Ready to Work Act, legislation that creates an innovative federal program to generate job opportunities for people who have been unemployed for six months or more, connecting them to work that rebuilds skills and financial stability. This bill would provide support to help people overcome the barriers keeping them out of the workforce - such as transportation, childcare, job readiness training, and substance abuse treatment - and training programs that build skills to sustain permanent employment. Senator Van Hollen was joined in introducing this legislation by U.S. Senators Ron Wyden (D-Ore.), Jeff Merkley (D-Ore.), Richard Blumenthal (D-Conn.), and Chris Murphy (D-Conn.).

"Every American who wants to work should be able to find a job. But with AI as a looming threat to our workforce - and nearly two million Americans already unemployed for six months or longer - it's clear that we need to do more. Instead of accepting prolonged joblessness as inevitable, we must provide real opportunities for workers to get into or rejoin the workforce and help remove barriers like childcare, transportation, and job training. This critical legislation will support American workers and strengthen economic stability for American families," said Senator Van Hollen.

"Between student loan debt and high unemployment, young people have been hit with an economic wrecking ball," Wyden said. "This bill would take an innovative approach to creating job opportunities for young Americans that want a bite at the American dream that has become out of reach for too many students and graduates," said Senator Wyden.

"Long-term unemployment is devastating for someone's financial security, future job opportunities, and overall wellbeing-and it can take a toll on our economy as well. The Ready to Work Act creates real, meaningful job opportunities for people who have been struggling to find employment. This bill provides people with the support and resources they need as they reenter the workforce and strengthen local economies," said Senator Blumenthal.

"With the looming threat of massive job losses from AI, we have to find new ways to protect Americans from long periods of unemployment and connect them to good-paying, stable jobs," said Senator Murphy. "This bill reimagines and modernizes our unemployment system, creating a wider range of support resources, so that everyone looking for work can find work."

The Ready to Work Act would: establish a program at the Department of Labor to reimburse local workforce development boards and community-based organizations for costs associated with providing jobs as well as training, support, and career services to long-term unemployed workers. The bill also provides competitive grants to local areas to support innovation and investment in areas hit hardest by high poverty and chronic joblessness, which would give additional flexibility and support in the places where it is needed most. These grants would support locally-driven development, worker-owned enterprises, and other strategies to ensure that area residents are part of the process and benefit from the results.

Today, over 1.9 million workers have been job searching for at least six months, accounting for more than 26% of all unemployed workers. This legislation provides targeted funding to local areas to generate work opportunities and get Americans back into the workforce. With mandatory federal funding, the program can grow large enough to serve anyone who is long-term unemployed and wants to participate. The bill is designed to address long-term unemployment under all economic conditions.

A section-by-section summary of the bill is available here. Text of the legislation is available here.

"What makes Senator Van Hollen's Ready to Work Act so vital and unique is that it directly seeks jobs solutions to avoid the devastating harms of long-term unemployment. Studies make clear that while any job loss is painful, long-term unemployment deeply scars workers economically and emotionally but can be prevented with the types of thoughtful policies Van Hollen is proposing," said Gene Sperling, Director, Economic Dignity Lab, McCourt School at Georgetown.

This legislation is supported by a wide array of organizations and stakeholders, including America Forward, Anne Arundel Workforce Development Corporation, Center for Employment Opportunities, Employ Prince George's, Inc., Maryland Workforce Association, Midwest Urban Strategies, Inc., National Association of Workforce Boards, National Association of Workforce Development Professionals, National Urban League, Redefine Alliance, Service Employees International Union (SEIU), The Center for Law and Social Policy (CLASP), United States Workforce Associations, and United Way of Central Maryland.

"America Forward is proud to support the Ready to Work Act, which would make critical, targeted investments in proven approaches to reach, engage, and support workers experiencing prolonged unemployment. Expanding resources specifically to eliminate barriers and create pathways back into the workforce for people who've been unemployed for six months or more is essential to responding to disruptions in today's quickly-changing economy, creating a more productive, sustainable, inclusive economy in the long term, and moving all of America forward," said Deborah Smolover, Executive Director, America Forward.

"The Ready to Work Act is the kind of sound investment needed to address the systemic barriers keeping justice-impacted people locked out of the workforce," said Sam Schaeffer, Chief Executive Officer of the Center for Employment Opportunities. "When 60% of people returning from incarceration face unemployment a year after release, we know that this isn't down to the individual's desire to work, it's a systemic issue. Too many doors are closed and too many people don't have time or money to invest in job readiness training. The Ready to Work Act offers in demand training and financial support so that every American can build themselves a quality career. We are grateful to Senator Van Hollen's leadership in building an inclusive economy where opportunity is afforded to everyone."

"Employ Prince George's is proud to support the Ready to Work Act and its investment in creating meaningful pathways back into the workforce for individuals experiencing long-term unemployment. We see firsthand the importance of connecting job seekers not only to employment, but also to the training, career services, and supportive resources that help individuals overcome barriers and achieve long-term economic stability. By investing in locally driven workforce solutions and strong partnerships with employers and community organizations, this legislation can expand access to opportunity while helping employers build the skilled workforce they need," said LaTara T. Harris, President & CEO, Employ Prince George's, Inc.

"NAWB applauds Senator Van Hollen for his leadership on the Ready to Work Act and his recognition that helping people return to work often requires addressing barriers beyond job training alone. Local workforce development boards are uniquely positioned to connect people to good jobs while coordinating the training and supportive services that help them succeed. By empowering workforce boards and investing in wages, training, and supports that address barriers to employment, the Ready to Work Act strengthens the pathways that help people get back to work and stay employed," said Andrew Bercich, CEO, National Association of Workforce Boards.

"The Ready to Work Act recognizes the critical role our nation's workforce development system plays in connecting people to opportunity. NAWDP is pleased to support legislation that equips local communities and workforce professionals with additional tools to help individuals overcome barriers, build skills and return to meaningful employment," said Melissa Robbins, CEO, National Association of Workforce Development Professionals.

"As an intermediary that invests into employment social enterprises - businesses that create jobs and economic mobility for sidelined talent across the country - Redefine Alliance is proud to support the Ready to Work Act. Ten million Americans are shut out of the economy due to barriers like homelessness or incarceration, and the Ready to Work Act will not only generate opportunity for such populations but also will help to shift the public workforce culture towards an economy that works for everyone," said Manie Grewal, Head of Policy, Redefine Alliance.

"Programs like those authorized under this Act would give AAWDC and the Anne Arundel County Local Workforce Development Board an important additional tool to serve long-term unemployed residents and employers throughout our county who are eager to rebuild the connection between local job seekers and quality employment. We believe the Ready to Work Act is a thought, well-structures response to a real and growing problem in our workforce system," said Kirkland J. Murray, President and CEO, Anne Arundel Workforce Development Corporation.

"The number of workers that remain on the sidelines, unable to find work that sustains them and their families, has real consequences in local communities. The Ready to Work Act will address that issue by investing resources through local workforce development boards, and providing transitional employment opportunities (using an earn and learn model) that build skills and grows the competencies of workers to compete for jobs that offer livable wages and access to benefits. Midwest Urban Strategies (MUS) fully supports this proposed legislation as a necessary tool to reengage America's workforce," said Tracey Carey, Executive Director, Midwest Urban Strategies, Inc.

"Individuals who have been out of the workforce face unique and persistent barriers to employment. The Ready to Work Act would further empower local workforce boards to serve these individuals by connecting them directly with jobs. Work experience is a vital piece to keeping these individuals employed in a dynamic labor market. Thank you to Senator Van Hollen for reintroducing this important legislation," said Ryan Hundt, Director, United States Workforce Associations.

"Senator Van Hollen's 'Ready to Work Act' is a carefully crafted piece of legislation that addresses the problem of long-term unemployment. We know that the long-term unemployed are at serious risk of dropping out of the labor market permanently, making themselves unable to support themselves and their family. Senator Van Hollen's measure would keep them in the labor force by providing funding to local communities to provide temporary employment. This is a measure designed to keep people out of poverty by providing work, not a handout," said Dean Baker, Senior Distinguished Fellow at the Center for Economic and Policy Research.

"Every American who wants to work should be able to find a job - full stop. Instead, over a quarter of unemployed workers have been searching for six months or more, and that's not an accident of the economy, it's a policy failure. Long-term unemployment doesn't just scar the worker who loses income and skills - it destabilizes families and hollows out communities, and the market has proven it cannot fix this on its own. The Ready to Work Act steps in where the market has failed, guaranteeing real job opportunities for anyone locked out of the workforce," said Mark Paul, Associate Professor of Economics, Bloustein School of Public Policy, Rutgers University.

"Long-term unemployment has soared during COVID-19 and we are at risk of repeating the mistakes of the last recession where long-term unemployment remained stubbornly high for too long. This bill addresses a crucial issue by encouraging employers to take a second look and therefore encouraging workers to keep searching. We don't have a moment to lose in helping the long-term unemployed get back to work," said Peter Ganong, Associate Professor, University of Chicago Harris School of Public Policy.

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