JP Morgan: Labor may be the biggest national security threat to the United States

The United States is facing a talent shortage problem. JP Morgan pointed out in its latest report that 40% of American adults lack basic digital skills. This report provides new arguments for the bank's recently announced $1.5 trillion investment plan in the U.S.

JP Morgan's report defines the labor shortage as a national security threat for the United States, not just an economic issue, and emphasizes that without a talent pipeline, no amount of funding in key industries like AI and energy can truly make an impact.

Tim Berry, JP Morgan's Global Head of Corporate Responsibility and Chair of the Mid-Atlantic Region, stated:

Today's skills gap is a significant national security issue, and the public and private sectors need to work together to drive solutions.

The analysis from PolicyCenter and the Center for Geopolitics in the report noted: “The U.S. can invest money. But without enough talent, execution will be significantly compromised.”

JP Morgan's report is essentially calling for the public and private sectors to prioritize retraining and vocational skills training, especially in the context where AI has already reshaped nearly every industry.

Currently, the U.S. federal government is promoting a series of policies aimed at addressing shortages in areas such as energy, manufacturing, and semiconductors. The Biden administration is pushing for large-scale industrial construction through the CHIPS Act and the Inflation Reduction Act. The Trump administration increased support for traditional manufacturing jobs and encouraged private enterprises to boost domestic infrastructure investment.

However, the report points out that the issue is that federal and local policies need to more directly address the core challenge of "workforce."

The U.S. government has already launched several measures, including paid apprenticeship programs, "earn while you learn" training models, and expanding Pell grants in the workforce sector to help low-income students receive training.

In numerical terms, the labor shortage exists in several industries that are crucial to U.S. security and resilience, which are also the four major areas covered by JP Morgan's $1.5 trillion investment:

• Defense: 46% of leaders in the U.S. defense industrial base report difficulties in recruiting, training, and retaining skilled workers.
• Semiconductors: The pace of building multi-billion dollar fabs is outstripping companies' ability to hire technical personnel. An additional 3.8 million workers will be needed by 2033, with nearly half of the positions likely unfillable.
• Energy: Modernization and electrification projects of the power grid are stalled due to a lack of electricians and line workers, with approximately 200,000 additional workers needed in the short term.
• AI: The demand for skills in AI-related positions is expected to grow at twice the rate of overall labor demand.

The conclusion of JP Morgan's report is that the key lies in the workforce itself. The U.S. can make significant investments in materials and technology, but without an expandable and adequately skilled workforce, these investments may be forced to stall before they can be realized.

In October of this year, JP Morgan announced the launch of a grand plan worth up to $1.5 trillion, aimed at providing funding to revitalize the U.S. industrial base over the next decade, targeting core industries that are crucial to the U.S. economy and national security. JP Morgan's "Security and Resiliency Initiative" plans to focus on four core areas:

Supply chain and advanced manufacturing, national defense and aerospace, energy independence, as well as cutting-edge technologies including artificial intelligence and quantum computing