A new JPMorganChase report warns that a shortage of skilled workers in key sectors is limiting the U.S.’ ability to compete globally and is a national security threat.

The report comes a month after President Donald Trump faced backlash from within his own base for arguing that skilled immigrants should be allowed into the country to address skills gaps.

Why It Matters

The report warns that the U.S. is facing a critical shortage of skilled workers that must be addressed to maintain global competitiveness. It comes amid ongoing debates over immigration and Trump’s recent defense of H-1B visas and his advocating for allowing in foreign talent.

What To Know

JPMorganChase released a report, “Rebuilding America’s Workforce for an Age of Geopolitical Competition,” on Thursday, outlining the challenges facing the U.S. workforce.

The report noted that there is a growing talent shortage across critical sectors, including semiconductor manufacturing, defense, energy, and AI.

It warned that this skills gap poses a national security risk, as the U.S. is falling behind while China and other allies heavily invest in STEM and technical training.

The warnings in the report echo Trump’s recent comments that the U.S. workforce lacks specialized skills and may need foreign talent to train domestic workers in advanced industries like semiconductor manufacturing.

Trump’s remarks drew pushback from parts of his own base, particularly those who advocate for strict immigration policies because of the perception that immigrants take jobs from Americans.

According to the JPMorganChase report, three-quarters of U.S. companies struggle to find qualified workers and 40 percent of adults lack basic digital skills.

It pointed to estimates that say that the U.S. technology workforce will grow at twice the rate of the overall U.S. workforce in the next decade, which it says makes this skills gap particularly concerning.

The manufacturing sector alone may need 3.8 million new workers by 2033, and half these jobs could remain unfilled if the skills gap isn’t addressed.

The report argues coordinated federal and state policies are needed to expand and modernize the talent pipeline, such as through apprenticeships and training programs.

What People Are Saying

JPMorganChase’s report said: “America’s security challenges are often framed in terms of equipment and investment…Yet underpinning all of these issues is a more basic limitation: the United States does not have enough skilled workers to meet the demand.”

President Donald Trump said in November: “People have to be taught, this is something they’ve never done. But we’re not going to be successful if we don’t allow people that invest billions of dollars in plants and equipment to bring a lot of their people from their country to get that plant open, operating and working. I’m sorry.”

What Happens Next

The report lays out policy recommendations to address the skills gap and strengthen the talent pipeline.

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