In Focus
Apr 12, 2013 | Permalink »
President’s Budget Calls for Pathways Back to Work Fund
By Neil Ridley
The President’s budget blueprint released on Wednesday calls for Congress to support employment and job training opportunities for the long-term unemployed and low-income adults and youth through the Pathways Back to Work Fund. Even as the economy recovers, too many unemployed workers and individuals with low education and skill levels face a difficult job market. This legislative proposal, which was introduced as part of the American Jobs Act, builds on the successful, two-year program funded by the American Recovery and Reinvestment Act that provided jobs for about 260,000 people in 39 states and the District of Columbia.
The proposed Pathways Back to Work Fund in the budget includes three components:
- $8 billion for employment opportunities and support services for unemployed, low-income adults;
- $2.5 billion for summer and year-round employment opportunities for low-income youth, ages 16-24; and
- $2 billion for work-based employment strategies with demonstrated effectiveness, such as on-the-job training, sector-based training and programs that integrate basic skills instruction and occupational skills training.
This key employment strategy is still needed to reach those who are left behind as the economy recovers from the Great Recession. Nearly two out of five unemployed workers have been jobless for six months or more. Individuals with low education and skill levels continue to experience unemployment rates that are significantly higher than those of more educated workers. The Congressional Budget Office projects that the sequestration’s automatic budget cuts that have gone into effect are expected to further dampen economic growth and reduce employment by 750,000 jobs by the end of the year.
Subsidized and transitional jobs are a proven way to give unemployed workers the opportunity to earn wages, build skills, and connect to the labor market, while also giving businesses an incentive to hire new employees when they might not have been able to do so otherwise. Researchers who have examined the implementation of American Recovery and Reinvestment Act workforce programs have found that paid work opportunities have been effectively used even for experienced unemployed workers who need to rebuild their confidence and prepare for reemployment.
A mix of non-profit, workforce agencies, and city and state public entities have operated transitional jobs and subsidized employment programs for almost 30 years as discussed in a new paper by the National Transitional Jobs Network and CLASP. If Congress authorizes the Pathways Back to Work Fund, this short-term federal investment would expand those strategies that prepare adults and youth for employment in a very difficult job environment. It’s the right investment at the right time for those who need it most.
Mar 07, 2013 | Permalink »
In Face of Budget Constraints, State and Local Governments Find Creative Ways to Fund Subsidized and Transitional Jobs Programs
Subsidized and transitional jobs are a proven way to give unemployed workers the opportunity to earn wages, build skills, and connect to the labor market, while also giving businesses an incentive to hire new employees when they might not have been able to do so otherwise. A variety of non-profit, social enterprise, and city and state public entities have operated transitional jobs and subsidized employment programs for almost 30 years. Funding from the TANF Emergency Fund in 2009-2010, part of the American Recovery and Reinvestment Act (ARRA), enabled the operation of such programs at a larger scale, and in more places, than had previously occurred. More than 260,000 individuals were placed in subsidized positions in 39 states and the District of Columbia.
No dedicated federal funding is currently available to support subsidized employment programs. Any entity seeking to operate such a program must therefore creatively leverage and blend multiple sources of funding. A number of cities and states have successfully done so, and a new paper from the National Transitional Jobs Network and CLASP illustrates those strategies and makes recommendations based on their success. This paper was supported by the Annie E. Casey Foundation and the University of California at Berkeley as part of their Big Ideas for Jobs series. In addition to highlighting the opportunities to use block grant funding, from both TANF and Community Services Block Grant (CSBG), the paper identifies efforts to fund these jobs by averting future expenses associated with prisons and other corrections measures and by leveraging public contracting and bidding opportunities.
One example highlighted in the paper is the Chicago transitional jobs program for formerly incarcerated individuals. This began as a pilot project in 2004, as part of a package of Ex-Offender Reentry Initiatives. Based on its success, it was expanded in 2006, and received funding through the city of Chicago's Corporate Fund, which originates from corporate taxes as well as income from leasing public assets such as toll roads and parking meters. The city later chose to expand the program with CSBG funds that became available through ARRA to support neighborhood cleanup using transitional jobs (TJ) work crews. When ARRA funding expired, the city decided to continue funding the project through its regular (non-ARRA) CSBG block grant.
CLASP still believes that the federal government should provide dedicated funds to support subsidized employment and transitional jobs programs, such as the Pathways Back to Work Fund. However, even if such funding does not materialize, state and local governments should not abandon the possibility of operating subsidized employment and transitional jobs programs. Such programs can be funded through a range of mechanisms and have both short- and long-term benefits to participants and society.
Nov 20, 2012 | Permalink »
When it Comes to Job Creation, “Do No Harm” Isn’t Enough
By Elizabeth Lower-Basch, Neil Ridley, and Kisha Bird
The economy in general, and job creation in particular, was the top priority for voters in this month’s general election. But Congress could put the country back into recession if it fails to act during the post-election session to avoid sequestration (automatic, across-the-board, spending cuts), allows federal extended unemployment insurance benefits to run out, and fails to extend middle-class tax cuts.
But just avoiding making matters worse isn’t good enough. According to the most recent employment statistics, released just before the election, more than 12 million people in the US were unemployed in October, with 5 million of them out of work for more than 26 weeks. The unemployment rate for blacks was 14.3 percent, for Hispanics 10.0 percent, and for single mothers 11.5 percent. And for young people ages 16 to 24 the unemployment rate was 15.5 percent- nearly twice the national average; for Latino youth it jumps to 17 percent and skyrockets to 27.6 percent for African Americans.
The budget agreement that President Obama and Congress will develop over the next month must include specific actions to create jobs and build the economy. This should include investments in infrastructure, including rebuilding the areas devastated by the recent storm. But it should also include dedicated spending aimed at ensuring that disadvantaged workers, in particular low-income youth and adults of color who were already struggling before the recession, are not left behind as the economy expands.
Specifically, the agreement should include the $12.5 billion for Pathways Back to Work that President Obama proposed in his February budget, which included $2.5 billion designated for summer and year-round jobs for youth, and $10 billion for subsidized employment and training for adults. The President’s American Jobs Act also called for $5 billion for subsidized employment and training, estimated to create more than half a million jobs. This proposal was also introduced as a free-standing bill, the Pathways Back to Work Act, sponsored by Rep. Miller (H.R. 3425) and Sen. Blumenthal (S. 1861).
This builds on the successful subsidized employment programs that were operated in 2009 and 2010 with funding from the American Recovery and Reinvestment Act, where in a relatively short period of time, over 600,000 jobs were created for low-income youth and adults supported by the existing state and local workforce infrastructure. Governors would have the option of administering subsidized employment for adults through TANF agencies or local workforce boards under the Workforce Investment Act or a combination of the two. Local workforce boards could use the funds to create employment opportunities for youth in emerging or in-demand occupations and to provide year-round youth participants with education and training leading to industry-recognized credentials.
Too many workers are still looking for jobs. If the economy creates jobs at the rate of the best year of the 2000s —208,000 jobs per month — it will take until 2020 before we return to pre-recession employment rates. Our country’s unemployed – and underemployed – workers can’t wait that long. The voters have spoken. It is time for Congress and the Administration to listen and act.