By Tom Latek
Kentucky Today

The General Assembly Task Force on Workforce Attraction and Retention released its findings and recommendations, which were submitted to legislative leaders for possible legislative consideration during the 2025 regular session .

Their findings include:

• The state faces several workforce challengesincluding barriers to entry and a significant decline in labor force participation, with labor force growth stagnating since 2010. Despite this decline, demand for workers is increasing, with job postings exceeding d ‘a year and a half workers available. job openings for every job seeker in Kentucky.

• Workforce opportunities within the state require policy changes. For example, Kentucky and Tennessee compete for military personnel entering the workforce from military bases such as Fort Knox and Fort Campbell. Kentucky historically lags behind Tennessee, which experts say is due to Tennessee’s favorable economic and military policies.

• Attract skilled workers from out of statebecause it has historically exported more workers than it has imported. The panel discussed several methods of attracting a workforce, including remote work opportunities in Eastern Kentucky and aligning policies with neighboring states to become more competitive.

• Increase the capacity to retain qualified workers, such as transitioning service members who have disappeared to neighboring Tennessee, formerly incarcerated people, and those in rural areas facing unique regional challenges.

Legislative recommendations include:

• Advice on the process for $250,000 in funding to hire a consultant to determine specific policy options for fund recipients. Develop regional and statewide marketing programs in consultation with the Economic Development Cabinet, the Tourism, Arts and Heritage Cabinet, and the Education and Labor Cabinet.

• Help for high school students by acquiring technical skills before graduation and expanding current career and technical programs to middle school students.

• Remove obstacles for licensing and credentialing in occupations for Kentucky’s historically untapped workforce and refugee population and providing opportunities to attract foreign workers to Kentucky.

• Eliminate the state income tax for military retirees.

• Expand employment opportunities and services to untapped employee segments of Kentucky’s population, including people with disabilities, nonviolent offenders, and people with substance use disorders. Create programs to encourage employers to use this untapped resource.