Booming Growth, Lagging Well-Being

Source: State of the Nation

The United States boasts one of the strongest economies in the world, second only to China, and has experienced faster economic growth than any other high-income country since 1990. Yet, while national prosperity has surged, many other areas of American life have failed to improve. In key measures of well-being—such as mental health, life expectancy, and overall life satisfaction—the U.S. lags behind other wealthy nations, and the gap continues to widen.

This disconnect between economic performance and quality of life is at the heart of the State of the Nation report, a comprehensive, data analysis developed by experts across the political spectrum. Designed to provide an objective assessment of the country’s progress, the report draws on scientific data to evaluate key indicators of national well-being. While national productivity soars, many Americans are struggling with stagnant wages, rising costs, and increasing personal hardship. The U.S. now has a lower life expectancy than most other rich countries, a higher suicide rate than nearly every other nation, and the highest rate of fatal overdoses in the world. The central finding of this study is clear: economic growth alone does not guarantee rising living standards for most Americans—a reality that is reshaping workforce trends, labor participation, and public trust in economic institutions.

The Growing Divide

At first glance, the numbers paint a picture of progress. The U.S. economy is growing, wages are rising, and unemployment is near historic lows. However, the majority of economic gains in recent decades have disproportionately benefited the wealthiest Americans, leaving many workers struggling to keep up. While real wage growth is traditionally linked to productivity growth—where higher efficiency should, in theory, lead to higher wages—this relationship has broken down.

Over the past several decades, productivity has increased at a faster rate than wages, reflecting the reality that corporate profits and executive pay have grown rapidly while worker compensation has lagged behind. The disconnect is stark: many Americans hear reports of economic success but see little change in their own financial security. The result is growing frustration, rising inequality, and a sense that the system is not working for the average worker.

Declining Workforce Participation

One of the most telling indicators of economic dissatisfaction is the declining labor force participation rate, particularly among men. Many displaced workers today are not returning to the workforce at all. This trend has been especially pronounced in industries like manufacturing, which historically provided stable, high-wage jobs for workers without college degrees.

The shift away from these industries has left many workers struggling to find positions that offer comparable pay and stability. For many, the available alternatives do not provide a pathway to long-term economic security, leading to a loss of motivation and, in some cases, an exit from the workforce altogether. This decline in workforce participation is not just an economic issue—it’s a sign of broader disillusionment with the economy and declining trust in institutions that once provided reliable economic mobility.

The Role of Workforce Development

Quality Jobs

The data from the State of the Nation report should serve as a wake-up call for workforce professionals to take stock and evaluate where workforce development can contribute to solving these challenges. How can workforce efforts continue to support overall economic growth while ensuring that workers benefit from it as well? How do we translate economic expansion into tangible improvements in wages, stability, and opportunity for the average American?

One shift should be towards emphasizing job quality when connecting job seekers with employment. The Quality Jobs Framework, developed by the Columbia-Willamette Workforce Collaborative, offers a model for defining and promoting quality job standards, including self-sufficiency wages, safe working conditions, predictable hours, good benefits, accessible hiring practices, and opportunities for training and advancement. To ensure workforce development efforts lead to long-term, sustainable employment, workforce boards should adopt frameworks like this while also prioritizing sector partnerships with industries that offer strong, long-term career pathways, such as healthcare, skilled trades, and advanced manufacturing.

Pathways Back Into the Workforce

To address declining workforce participation, workforce development boards should adopt a multi-faceted approach that recognizes the many barriers many workers face when trying to re-enter the job market. Many displaced workers struggle to find jobs that offer comparable stability and wages. Without targeted support, these individuals often remain disconnected from the workforce, limiting their potential for economic security and mobility.

Workforce development programs can play a pivotal role in reversing this trend by connecting job seekers to re-training opportunities for high-quality jobs. The Rapid Response program, one of WorkSource Oregon’s key services, exemplifies the impact workforce development initiatives can deliver. By offering immediate access to resources, career counseling, and re-skilling opportunities, the program helps individuals navigate job loss and transition into new employment. Rapid Response is crucial because it ensures that displaced workers don’t feel left behind or disconnected, but instead have a clear path forward with the support they need to re-enter the workforce.

Additionally, barrier removal is key to successful re-entry into the workforce. Many individuals facing long-term unemployment struggle with transportation costs, childcare expenses, or lack of access to financial support during training periods. Initiatives like Prosperity Programs have demonstrated how wraparound services—such as funding for tuition, exam fees, uniforms, and transportation—can make the difference for someone wanting to upskill.

Another critical strategy is investing in reentry programs that support justice-involved individuals in transitioning back into employment. The WorkSource Oregon Reentry Program is a strong example of how workforce boards can facilitate second-chance hiring and create structured pathways for individuals to reintegrate into the workforce. By embedding job-readiness training, career coaching, and direct employer engagement within the reentry process, these programs help reduce recidivism while also addressing critical labor shortages in key industries.

Bridging the Gap Between Prosperity and People

Expanding workforce participation is about more than just filling jobs—it’s about ensuring that individuals can access stable, living-wage careers that offer real economic mobility. The State of the Nation report makes it clear that while economic growth has surged, far too many Americans have been left behind. Workforce development professionals have an opportunity—and a responsibility—to bridge this gap by ensuring that economic progress translates into meaningful improvements in people’s lives. By prioritizing high-quality job placement, barrier removal, and targeted reentry strategies, workforce programs can help rebuild trust in economic institutions and create a system where prosperity is shared, not concentrated. If workforce development is to be a true driver of opportunity, it must be measured not just by job placement rates, but by the long-term well-being and stability of the workers it serves.