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FINANCIAL STABILITY FOCUS AREA:FAMILY-SUSTAINING EMPLOYMENT
UnitedWay.org/income
GIVE. ADVOCATE. VOLUNTEER.
Financial Stability Focus Area: Family-Sustaining Employment
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UNDERSTANDING ThE PROBLEM
Family-sustaining employment is the foundation
of financial stability. In 2010, almost 26 percent
of working adults earned less than $25,000
annually, which is just above the poverty rate
for a family of four. Overall, 40 percent of all
households earned below 250 percent of the
federal poverty level.* These workers often
struggle to afford food, rent, childcare, and
transportation, with little left over for saving and
investing. Families must have a steady source of
income that covers the cost of basic necessities
before they can make long-term financial
decisions regarding savings and asset building.
Technological innovations that increase worker
productivity, combined with increased global
competition, have impacted a broad array of
industries from manufacturing to the service
sector. To remain competitive and restore the
vibrancy of the U.S. job market, current and future
workers must acquire and maintain stronger
educational skills and workforce competencies
as the pathway to creating long-term earning
potential. United Ways, acting as community
conveners, workforce “brokers”(pairing trained
employees with employers,) and repositories of
promising practices in workforce development,
are a critical component in strengthening the
competitiveness of U.S. workers and securing
the futures of families and communities.
Through education, training, and sector-based
strategies that connect skilled workers with
jobs in growing sectors including healthcare,
technology, green industries, and community
infrastructure, a wide range of workers
including lower-income, dislocated and
disadvantaged populations can obtain family-
sustaining employment that offers the potential
for career advancement.* Communities with a
stable, skilled workforce are more economically
competitive and have the potential to provide
improved opportunities for residents, attract
business and revitalize neighborhoods. This
brief summarizes some of the key causes of
America’s current workforce challenges and
outlines practical strategies that United Ways
and their communities can implement to create
and strengthen family-sustaining employment
opportunities.**
CASE For ACtion
* in United Way’s income Strategies and Approaches document released in 2009, the goal was set to “cut in half the number of lower-income working families who are financially unstable.” this brief touches on two other sub-populations including dislocated and disadvantaged workers who factor into the discussion of the current labor market challenges.
** United Way Worldwide defines family-sustaining employment as employment that pays a family-sustaining wage, offers benefits including paid sick leave, and offers career pathways that provide opportunities for wage and career advancement.
Financial Stability Focus Area: Family-Sustaining Employment
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UNDERSTANDING ThE U.S. LABOR MARkET
Understanding the recent history and outlook
of the U.S. labor market is critical to our
overall understanding of the challenges facing
workers, families and communities. The
recession of 2007–2009 had deep employment
impacts across all sectors of the economy.
The steepest declines in employment were in
construction (–19.8 percent) and manufacturing
(14.6 percent,) which saw their sharpest drops
in employment since 1945 totaling more than
4.2 million jobs.2 Losses in manufacturing
were especially steep among workers in the
automobile sector, which saw jobs fall by 35
percent between December 2007 and June 2009.
Even economic sectors that had traditionally
been more recession-resistant, such as retail
trade, services, leisure and hospitality, saw
historic levels of job cuts with more than 1.4
million jobs lost.3 Overall, the “Great Recession”
of 2007–2009 was nearly twice as deep and
twice as long as the 2000–2001 recession that
preceded it.4 National unemployment hit a high
of 10 percent in October 2009, and has very
slowly decreased each month since to a low of
8.3 percent in January and February 2012.5
If history since World War II is any guide, many
of these jobs, especially in manufacturing,
are unlikely to be regained. Since 1979
when manufacturing employment peaked at
almost 20 million, these jobs have been in
steady decline. Sharp falls in manufacturing
jobs accompany every recession with total
employment never regaining its pre-recession
level.6 There is significant disagreement about
why manufacturing employment continues to
fall. Some of the permanent reduction in these
types of well-paid, benefit-rich positions is due
to jobs shifting overseas to take advantage of
lower labor costs. The Economic Policy Institute
estimates that between 2001 and 2010, the
U.S.-China trade deficit has eliminated or
displaced nearly 2.8 million U.S. jobs of which
1.9 million were in manufacturing.7
Other economists argue that the most important
source of job loss in is the tremendous gains
American industries have made in worker
productivity. An examination of worker
productivity data supports this view. Total U.S.
economic production now exceeds its pre-
Great Recession levels at $15 trillion, despite
the fact that the economy shed over 7 million
jobs during the recession.8 Productivity rate
increases per hour worked doubled between
2008 and 2009 and then doubled again in
2010.9 Rising productivity, often cited as the
key to increasing living standards in the long-
term, reduces short-term labor demand through
improved efficiencies. In addition, since these
efficiencies typically involve the introduction
of new production technologies and systems,
rising productivity can also mean an increased
premium on workforce education and skill
levels leaving low- and middle-skill workers
with fewer employment opportunities.
Economists debate if skilled jobs in the middle
of the labor market – jobs that require some
post-secondary education but less than a
traditional four-year degree such technical jobs,
service jobs in health care, and installation/
maintenance/and repair occupations – are
shrinking or expanding.10 As with much else
relating to labor market analysis, the actual
blend of low-skill and mid-skill employment
is uncertain and depends on how researchers
classify specific occupations. Nonetheless,
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Case for Action
there is strong evidence to suggest that
demand for non-routine, middle-skilled jobs –
particularly in the health sector – is strong and
will remain so for at least the next decade.11
This finding relating to middle-skill jobs is
consistent with overall projections made by
the Bureau of Labor Statistics (BLS) forecasting
strong long-term job growth in the U.S. The
BLS estimates the U.S. labor force will grow by
about 15 million jobs by 2018 and that these
jobs will be significantly impacted by changes
in technology, consumer demand and other
factors.12 While manufacturing employment is
projected to lose another 1.2 million jobs by
2018, construction employment is forecasted
to grow by over 1.3 million. The health sector
(a prime example of non-routine middle-skill
employment) will add over 4 million jobs, while
a host of other sectors including education,
accommodation and food services, retail trade
and transportation, will add millions more.
Within the health sector, especially strong
growth is expected in home health, personal
and home care aides, dental hygienists and
other allied health professions.
Financial Stability Focus Area: Family-Sustaining Employment
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Individuals who seek family-sustaining
employment face many obstacles. Broadly
speaking, the United States workforce
development system is underfunded relative
to the goals it pursues. The system is
fragmented and often lacks connections to and
an understanding of labor market trends and
employer needs. Compounding the matter is a
lack of access to essential supports and services
that will help disconnected and disadvantaged
workers gain the necessary skills and training
to find employment. Understanding and
addressing these obstacles will be critical to
increasing the supply of family-sustaining jobs,
as well as providing individuals with the skills
and supports they need to succeed.
OBSTACLE 1: LACk OF ACCESS TO FAMILY-SUSTAINING EMPLOYMENT OPPORTUNITIES
As of February 2012, our nation faces a jobs gap
of 11.4 million jobs, 5.2 million from jobs lost
since 2007, and another 6.1 million jobs that
should have been created in the absence of the
recession.13 In addition, workers are isolated in
many communities – by a variety of education,
training, and geographic factors – from entry-
and mid-level employment opportunities
that are already available. One of the more
remarkable aspects of the labor market in the
recent recession is that acute labor shortages
persisted for a number of key industries
and occupations even in the context of high
unemployment rates. The BLS reported nearly
3.5 million job vacancies in January 2012 in the
midst of an 8.3 percent unemployment rate. It
should be noted that hires, total separations,
and employment all remained below pre-
recession levels.14 There is a skills-mismatch in
many states where there is a short-fall of trained
workers to fill middle-skilled jobs. Economic
Modeling Services Incorporated, a private labor
market forecaster, found that in March 2011,
there were more than 22,000 unfilled positions
in key California sectors, including energy,
information technology, and skilled crafts,
despite the state’s 12 percent unemployment
rate.15 This mismatch between market demand
and available worker skills strongly suggests
the need to better align education and training
systems to labor market and employer demand
projections.
At the same time, however, many communities
are caught in a human capital/economic
development “catch-22” in which they are
unable to attract industry due to unprepared
workers and unable to prepare workers due
to a lack of viable employment opportunities.
This conundrum can overwhelm even the
most sophisticated and well-intentioned
efforts to improve access to family sustaining
employment. A recent study by the Council
on Competitiveness, a Washington, D.C.,
nonprofit, found that the primary consideration
for employers in making decisions regarding
investment, expansion and location, was the
obStAClES to AChiEving FAmily-SUStAining EmploymEnt
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obstacles to Achieving Family-Sustaining Employment
presence of a growing and well-educated
workforce. Other factors, such as infrastructure,
economic development strategies, and tax and
regulatory environment were also important
but secondary to workforce and talent
considerations.16
The absence of economic opportunity has
another self-reinforcing aspect: declining worker
morale. Low-income workers who participated in
a 2003 Jobs for the Future (JFF) survey said that
there is a lack of job opportunities where they
live. In fact, a majority (67 percent) says that it
is an obstacle, while almost half (46 percent)
say that it is a major obstacle.17 Arguably, the
widespread perception that family-sustaining
employment is not available may discourage
some workers and youth from investing time,
energy and limited financial resources in
education, training, and apprenticeships,
and other entry- or mid-level employment as
part of a pathway to higher paying jobs and
family-sustaining employment. While the JFF
research has not been updated since 2003, its
fundamental conclusions about the relationship
between worker hopes and aspirations and
the perceived availability of family-sustaining
employment remains a significant consideration
for organizations and institutions seeking to
improve access to employment opportunities.
The psychological momentum for work is
a critical aspect of fostering a commitment
to education and training and an important
factor to be considered in overall workforce
development strategies.
OBSTACLE 2: LACk OF SOFT-, LIFE-, AND PERSONAL-EFFECTIVENESS SkILLS
A June 2008 study by the Society for Human
Resource Management and the Wall Street
Journal asked human resource professionals to
evaluate the change in importance of various
employee skills/practices since 2006. The
respondents said that the most important
skills for new entrants to the workforce were
adaptability/flexibility (46 percent) and critical
thinking/problem solving skills (35 percent),
followed by professionalism/work ethic (31
percent), information technology application
(30 percent), and teamwork/collaboration (26
percent).18 Another study conducted by the
American Society for Training and Development
identified a lack of communication and
interpersonal skills as common skills gaps
among current and prospective employees.19
Finally, James Heckman, a Nobel Prize-winning
economist at the University of Chicago,
highlights the importance of developing non-
cognitive skills (motivation, self-discipline,
and social skills) to educational and economic
performance in his influential book, Inequality
in America (2005).
OBSTACLE 3: NEED TO ACqUIRE ACADEMIC AND wORkPLACE COMPETENCIES
The benefits of education and workforce
preparation in terms of economic outcomes
are stark and getting starker over time. In
2010, workers with bachelor’s degrees made,
on average, $1,038 per week while those with
only a high school diploma averaged $626 per
week.20 In February 2012, the unemployment
rate for individuals over 25 who did not
complete high school was 12.9 percent, for
those with a high-school diploma it was 8.3
percent, for those with some college it was 7.3
percent, and for those with a bachelor’s degree
or higher it was 4.2 percent.21 Over a lifetime,
the Educational Testing Service estimates that
college graduates earn $2.7 million or about 96
percent more than high school graduates.22
Other statistical analyses bear out the
Financial Stability Focus Area: Family-Sustaining Employment
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relationship between low education levels and
the risk of poverty. As demonstrated in the
table below, low-wage workers make up about
23 percent of the American labor force and
more than half have only earned a high school
diploma, General Equivalency Degree (GED)
or less. That figure rises to 70 percent for low-
wage workers with children. In keeping with
this trend, fully two-thirds of the households
with children that live below 200 percent of the
federal poverty level are headed by low-wage
workers with less than a high school diploma.23
Narrow-casting of course curriculum (i.e.
excessive focus on narrow occupational skills
and inadequate attention to context-based
learning) and inconsistent eligibility standards
add to the challenge of helping lower-skilled
workers acquire academic and workplace
competencies. Most Adult Education programs
consider workforce readiness and career
preparation to be one of their many goals, but
classroom curricula reflect many other critical
skills, including basic literacy instruction and
preparation for the GED or other high school
equivalency examinations. Also, most programs
are not designed to help participants transition
to the higher levels of education and training
that are increasingly required for success in
today’s workplace.
Finally, obtaining assistance through the
Workforce Investment Act (WIA) system can be
especially difficult for under-skilled workers.
WIA performance metrics tend to drive resources
toward the most employable segments of the
population and serve as a functional disincentive
for serving individuals with multiple obstacles
to employment that require higher levels of
education, training and supportive services
CharaCteristiC
All workers 100.0 22.8 10.8 5.3
Educational attainmEnt
Less than high school 10.1 19.0* 27.7* 33.2*
High school diploma or GED 30.4 35.5* 36.9* 36.7*
More than high school 59.5 45.5* 35.4* 30.1*
agE (yEars)
18–29 27.0 39.1* 42.7* 39.8*
30–49 52.2 43.1* 44.7* 54.8
50–61 20.8 17.8* 12.6* 5.4*
racE or Ethnicity
White non-Hispanic 69.8 62.0* 50.4* 42.9*
Black non-Hispanic 11.2 12.7* 16.7* 18.5*
Hispanic 13.2 19.4* 27.2* 32.8*
Other 5.8 5.9* 5.7* 5.9
Work
Full-time, full-year 70.0 51.2* 49.8* 50.4*
Full-time, part-year 13.6 18.5* 22.9* 23.5*
Part-time, full-year 8.8 15.8* 13.8* 12.3*
Part-time, part-year 7.6 14.4* 13.6* 13.9*
Spouse works full-timeb 69.7 71.6* 53.2* 56.9*
hEalth insurancE
ESI from own employer 55.3 22.1* 21.0* 18.8*
Personal and Family Characteristics of Low-wage workers (percent)
all WorkersLow-wage Workersa
Low-wage workers below
200% of FPL
Low-wage workers below 200% of FPL, with children
in family
Source: Acs and Nichols (2007), using data from U.S. Census Bureau, March Current Population Survey, 2004. Reprinted with permission. The cutoff at $7.73 an hour was chosen because it represents roughly half of the average hourly wage at that time.Notes: FPL, family poverty line; GED, general education diploma; ESI, employer-sponsored insurance.Asterisks indicate percentages that are significantly different (at the 0.05 level) from those in the non-low-wage or non-low-income categories. a. Defined as those earning no more than $7.73 an hour in 2003.b. Data are percent of married workers.
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obstacles to Achieving Family-Sustaining Employment
to succeed in finding and retaining jobs. In
addition, “sequence of service” policies, which
require individuals to follow a prescribed order
of services when seeking assistance at local
WIA One-Stop Career Centers, may discourage
workers from capitalizing on existing skills and
advancing more rapidly.
OBSTACLE 4: LACk OF SECTOR-SPECIFIC SkILLS TRAINING
As discussed in Obstacle 1, one of the counter-
intuitive realities of current U.S. labor market
conditions is the mismatch between labor
market supply (i.e. worker skills) and business
and industry demand. In March 2011, the BLS
estimated there were approximately 3.1 million
openings across all sectors of the U.S. economy,
including 228,000 in manufacturing, 355,000
in leisure and hospitality and 471,000 in trade,
transportation, and utilities.24 Industry sectors,
such as utilities and advanced manufacturing,
continue to express concerns about the
inadequacy of labor supply to meet current
and future demand. The Center for Energy
Workforce Development’s most recent survey of
its membership estimated the need for 80,000
new skilled technicians, line workers, welders,
and pipefitters by 2015.25 According to the
2011 Manpower Talent Survey, 51 percent of
U.S. employers reported difficulty in filling job
openings, citing a shortage of applicants, lack
of experience, and a lack of technical skills.
The same survey reported that among the most
difficult positions to fill were skilled technicians,
trades workers and sales representatives.26
The federal and state governments have also
recognized the skill mismatch and have invested
heavily in new programs, such as the Trade
Adjustment Assistance and Community College
and Career Training and the H1-B Technical
Skills Training, which provide over $2.2 billion
over the next four years to expand access to
demand-driven technical skills training.
OBSTACLE 5: LACk OF SUPPORTS FOR ACqUISITION OF FAMILY-SUSTAINING EMPLOYMENT
Some of the most common causes of separation
from the workforce are factors outside of work,
like loss of childcare, lack of transportation, or
personal and family health care needs. These
same needs also create obstacles to enrolling
in or completing education and training. A study
conducted by the National Center for Education
Statistics compared the enrollment patterns
of traditional-aged students (under age 24)
with those of adult learners (over age 24) and
found that, “adult learners are less likely to be
continuously enrolled than traditional-aged
students.”27 Reasons included family and work
demands, amount of time out of school, the
lack of affordability, and goals that focused on
learning specific skills to advance in their jobs
rather than earning a bachelor’s degree.
Training costs are another important factor.
Jobs for the Future conducted a survey of low-
income workers to explore their opinions and
experiences regarding career advancement,
opportunities for education and job training,
and job search resources. When asked how
likely they were to take part in a training or
education program in the next two years, over
half (57 percent) of the participants responded
that they were likely to participate. However,
the survey showed that expense is the most
significant obstacle to participating in education
or training programs. Two-thirds (65 percent) of
those surveyed cited expense as an obstacle,
while over one-third (36 percent) cited cost as
a major obstacle.
Financial Stability Focus Area: Family-Sustaining Employment
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These promising strategies and approaches to
implementing them are grounded in successful
work in the field. They will help communities
pursue and achieve their family-sustaining
employment goals and are broad enough
to encompass the full range of lower-wage
workers. Put simply, local and regional economic
success requires community partners to
cultivate workers who “possess post-secondary
education credentials, technical skills, the
ability to learn rapidly, and an entrepreneurial
approach to work and career management.”28
This demands long-term, results-driven
collaboration among employers, educators, the
public workforce system, the nonprofit sector,
economic development agencies, organized
labor, and other community stakeholders.
STRATEGY 1: CREATE ACCESS TO FAMILY-SUSTAINING EMPLOYMENT
recruit new businesses and/or industries
to increase the supply of family-sustaining
jobs in a given community – Before engaging
businesses in economic development, it is
critical that United Ways fully understand local
labor market trends and become conversant
in economic and workforce development
information and terminology. Once acquired,
this knowledge base can be paired with the
detailed knowledge local United Ways already
have about the communities and populations
they serve and used to improve the alignment
between targeted industries, population
groups, and training and education programs.
United Ways cannot and should not seek to
become stand-alone experts in workforce,
education or economic development. Becoming
an effective player in workforce development
does, however, require that United Ways invest
in better understanding these subject matter
areas so that they can be viable partners in the
economic futures of their communities. Many
United Ways around the country have already
begun this important work. In May 2011,
United Way of Northern New Jersey convened 150
business, government officials and nonprofit
representatives to improve collaboration around
workforce preparation and development issues
with a special focus on high-growth sectors like
life sciences, advanced manufacturing, health
care and financial services.29
United Way of Massachusetts Bay and Merrimack
Valley (UWMB) has developed a comprehensive
strategy for understanding local labor markets
and linking this understanding to adult basic
education, labor market analysis, vocational
skills training, and other supportive strategies.30
UWMB understands that the most effective
“sustainable employment” organizations “show
employers how participating in a workforce
development initiative can increase their bottom
line,” which requires carefully selecting employer
partners, involving employers in program design
and delivery, managing expectations, and
creating network opportunities for employers to
meet and hire program participants.31
EvidEnCE-bASEd StrAtEgiES And ApproAChES
Financial Stability Focus Area: Family-Sustaining Employment
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United Way of Greater Los Angeles participates in
the Los Angeles Workforce Funder Collaborative
(LAWFC) that seeks to prepare workers for in-
demand occupations in healthcare, logistics and
building trades, while working in partnership
with the employers, educational institutions
and the WIA system to drive policy and systems
changes.32 The Greenville (South Carolina)
Collaborative for Workforce Development is
another multi-partner effort (comprised of
employers, educational institutions, nonprofit
organizations and the WIA system) helping
workers find jobs with good wages and career
ladders while addressing key labor market
shortages.33 These types of comprehensive
engagements with industry, education and
economic and workforce development partners
are essential to assuring that all segments
of local communities are “at the table” in the
effort to expand family-sustaining employment.
encourage entrepreneurship and small
business development capitalization and
development to increase the supply of jobs
that pay family-sustaining wages – According
to the U.S. Small Business Administration,
small firms have generated 64 percent of all
net new jobs over the past 15 years and employ
just over half of all private sector employees.34
To maintain and grow this important source of
family-sustaining employment, it is important
that communities encourage entrepreneurship
through self-employment resources and
opportunities to expand business equity. Small
Business Development Centers, SCORE and
One-Stop Career Centers are publicly-funded
entrepreneurship resources that are widely
available across the U.S. Project GATE (Growing
America Through Entrepreneurship), a joint
pilot project between the U.S. Department
of Labor and Small Business Administration,
found that a collaborative effort to increase self-
employment, including aggressive outreach
by public agencies, targeted referrals, and
free or low-cost self-employment services
for unemployed individuals, led to a higher
rate of business ownership among program
participants and concluded that, “self-
employment training programs are an effective
policy tool for assisting the unemployed.”35
United Ways across the country are also making
significant investments in microenterprise and
asset development programs that help support
business start-ups and expansions. Building on
the unique talents and abilities of its refugee
populations, the United Way of Summit County
(Ohio) Refugee Microenterprise Project offers
financial and technical resources to build small,
cooperative businesses in pottery, weaving,
sewing and agriculture.36 United Way of Greater
St. Louis supports a similar program to help
immigrant women through small, no-interest
loans for the creation of new businesses.37
Private sector approaches to encouraging
entrepreneurship are central as well, like
launching resident-franchise businesses that
help low-income individuals make the initial
investment in a franchise. For example, the
Little Caesar’s “Manage to Own” program
supports qualified managers who have the drive
but lack the resources to invest in franchises.38
Encouraging microenterprise is also shown to
help individuals overcome poverty. Data from
a 2008 Aspen Institute study showed that
poverty fell 60 percent among participants
taking part in microenterprise programs a year
following program entrance.39 Another way of
promoting self-employment is through worker-
owned cooperatives. The Urban Cooperative
Development Initiative is a national effort that
11
Evidence-based Strategies and Approaches
focuses on demonstrating the effectiveness
of cooperative businesses in “building
wealth and ownership” for residents of urban
communities.40 Regardless of the strategy,
entrepreneurship is a multi-year commitment
for all parties, and United Ways can help in
the dissemination of promising practices and
create linkages between programs and people
that help expand entrepreneurial opportunity.
STRATEGY 2: PROVIDE ACCESS TO ExISTING FAMILY-SUSTAINING EMPLOYMENT IN TARGETED INDUSTRIES
support the use of workforce intermediaries
to connect education and training providers,
employers, and earners in lower-income
working families to better ensure that
completion of training leads to employment –
United Ways are uniquely positioned as funders
and conveners in their communities to support
“labor market intermediaries” (organizations
that help connect workers to education, training
and employers) that seek to improve access to
employment opportunities, particularly for low
or under-skilled workers. Tremendous benefit
can come from using intermediary organizations
to coordinate workforce development activities,
including centralizing information and
resources for target populations; coordinating
diverse workforce-related services and training
programs; streamlining the partnership-
building process; ensuring a continuum of
services throughout training, placement, and
retention; and consolidating planning activities
and overhead costs. Skillful intermediaries
can also help disadvantaged workers gain
access to better jobs, partly by reducing
discrimination and providing information to
employers as well as job placement assistance
to workers.41 For example, the Commonwealth
of Pennsylvania uses workforce intermediaries
to aggregate demand for training and to focus
it on developing skills and education required
by employers.42
Develop sector-based initiatives to connect
earners in lower-income working families with
the jobs that pay family-sustaining wages in
growing industries – Sector-based economic
development and employment strategies are
collaborative efforts to: 1) identify high growth
sectors in a given locality or geographic region;
and 2) align education, training, workforce
development and supportive services programs
in support of individuals seeking employment
in the identified growth sectors. These
collaborative programs provide training that
is tailored to employer needs in specific labor
markets. Sector-based strategies also develop
career ladder and lattice programs that provide
upward and lateral training pathways with
multiple points of entry for workers with diverse
career goals.43 The United Way of Central and
Northeastern Connecticut has invested in the
Workforce Solutions Collaborative of Metro
Hartford. This project seeks to align industry,
education, training and other workforce
development resources to high-growth sectors
in manufacturing, health care, energy and
utilities.44 Similar approaches are being used
by other United Ways around the country.
Another example of effective sector-focused
initiatives are the CVS/Caremark Pathways
to Pharmacy and Pathway to Retail Careers
programs, which are designed to meet the
company’s need for skilled employees and
the community’s need for employment
opportunities. Both programs offer adults
and youth in inner city and rural areas the
opportunity to explore pharmacy and retail
as career paths.45 Another sector initiative in
Financial Stability Focus Area: Family-Sustaining Employment
12
Flint, Michigan, has successfully worked with
lower-skilled individuals, particularly minority
women, and helped them prepare for careers in
the health care industry.46 In addition, the Center
for Energy Workforce Development (CEWD) is
working with 8 consortia around the country
to implement an Energy Industry Competency
Model that helps workers progress through
competency tiers toward high-demand utility
sector jobs.47 Research shows that participants
in sector-focused workforce development
programs earn higher incomes and are more
likely to stay continuously employed in jobs
that offer benefits.48
STRATEGY 3: INCREASE ENROLLMENT IN AND COMPLETION OF DEGREE, CERTIFICATION, AND TRAINING PROGRAMS
Conduct outreach to increase enrollment in
available education, training, and occupational
programs – The first step to ensuring that lower-
skilled individuals have the skills necessary
to find and retain a family-sustaining job is to
provide them with information on the available
education and training options. Colleges, public
education, and public workforce systems engage
in private sector marketing strategies, such as
direct mail, telemarketing, or advertisements.
Another strategy would be to advertise and offer
support services (e.g., transportation, child
care, meals) in conjunction with recruitment
and program events.49 As part of its effort to
increase college attendance, the Kentucky
Council on Postsecondary Education began
the “Go Higher Kentucky” media campaign to
encourage Kentuckians of all ages to improve
their education, especially older students and
those not taking a traditional path from high
school to college. As a result, enrollment in
GED programs rose by over 7,000 adults, a 57
percent increase from the previous year – the
sixth largest increase in the country.50
Connect earners in lower-income working
families with affordable and effective basic
education, occupational training, and career
technical education programs to increase work-
related skills – In 2008, total funding for Adult
Education and Literacy programs in the U.S.
equaled approximately $2.1 billion, but was
only able to serve 3 million adults.51 However,
by linking career development resources
with lower-income workers, communities can
strengthen the personal effectiveness, reading,
math, critical thinking, and teamwork skills that
are essential for their workforces to penetrate
the labor market and gain family-sustaining
employment.
One promising strategy for connecting
families to education and training resources
is an innovative project funded by the U.S.
Department of Labor to create “access points”
inside community-based organizations to
expand the reach of the publicly funded
workforce development system. Piloted by the
United Way of Brevard County, the WIA system
now has “access points,” online services in
local libraries or community and faith-based
organizations, which provide a computer and
volunteer to help lead individuals through
the One-Stop’s web-based tools and training
options.52 This approach helps break down
geographic and psychological obstacles to
service for populations that could otherwise be
reluctant to access government services.
Research also indicates that individuals participating in occupational training and career technical skills-training programs often gain access to higher-quality jobs.53 Other studies and evaluations show that career pathway projects that bring together employers, educators, and other community stakeholders can result in increased high school graduation rates, more successful transitions
13
Evidence-based Strategies and Approaches
from secondary to post-secondary education or training, students making more informed career decisions, employers accessing a larger pool of qualified workers, and students earning higher scores on standardized tests.54 A rigorous evaluation of Career Academies found earning increases for youth, and especially at-risk or disconnected young males, for at least four years after they graduated from high school.55 Many United Ways support adult education programs designed to improve individual and family literacy. The United Way of the Midlands (South Carolina) funds a variety of literacy programs including the Alston Wilkes Society, the Newberry County Literacy Council and Volunteers of America, all of which focus on improving literacy among adults.56
Remove obstacles to participation in education and training programs – It is often very difficult for lower-income individuals and families to manage their personal lives and work schedules, in addition to participating in education or training programs. Often parents will prioritize the needs of their children (due to a lack of viable childcare options) over attending a class. To maximize access to essential education and training credentials, effective career pathway initiatives must be tailored to match the unique needs of the specific target populations. Multiple program entry points, flexible scheduling (e.g., evening and weekend classes), support services (e.g., child care, transportation subsidies and micro-grant programs), sequencing of education and
Financial Stability Focus Area: Family-Sustaining Employment
14
training, and strong employer involvement ease the demands on participants’ time and increase the likelihood of a successful outcome.57 An evaluation of the Annie E. Casey Foundation’s Center for Working Families concept showed that clients who received “bundled” services (i.e., employment, benefits and work supports, financial counseling) were three or four times more likely to achieve a major economic outcome (e.g., vocational certification), while clients who received high-intensity bundled services (e.g., intensive support services) were five times more likely to achieve a major economic outcome.58
It is important to keep in mind that programs that remove education and training obstacles benefit businesses and industries as well. Employers like Northrup Grumman, CVS/Caremark and many others see the value in reducing turnover and increasing their industry competitiveness by offering better training for entry-level employees and opportunities
to advance in their careers within those companies or industries. Innovative recruiting and training programs for entry-level employees are shown to result in higher revenue and pay, lower overall costs, less time wasted, reduced turnover, better customer satisfaction and more motivated and productive workers.59
STRATEGY 4: PROVIDE SUPPORTS TO hELP INDIVIDUALS OBTAIN AND RETAIN EMPLOYMENT AND ADVANCE ThEIR CAREERSRemove obstacles to finding and retaining employment – Some of the most common causes of separation from the workforce for lower-income individuals are factors outside of work, like loss of childcare, lack of transportation, or personal and family health care needs. United Ways can play a lead role in promoting public and private work supports among employers that help increase job retention and reduce the high costs associated with employee turnover. These supports can include career and financial counseling, transportation, childcare
15
subsidies, case management, help with providing health care to family members, and micro-grants for meeting unexpected financial hardships. The United Way of Massachusetts Bay and Merrimack Valley (UWMB) has developed an effective framework for achieving “sustainable employment” that starts with soft-skills development as part of its Adult Basic Education (ABE) program.60 ABE best practices include instruction in technology and computer orientation, time management, appropriate dress and decorum, leadership development, resume writing, interview practice, financial literacy, health and wellness, and community involvement. Importantly, ABE emphasizes the need to integrate soft- or life-skills throughout training and early employment. Like UWMB, United Ways are well suited to identify the most pressing life-skills gaps and coordinate the various community-based service providers that are experts at preparing lower-income individuals to get the most out of education, training, and employment programs.
Another example of a successful model for assisting disadvantaged workers is the Employer Resource Network (ERN) in Western Michigan.61 ERN is a consortium of 45 small- and mid-sized businesses in four counties that pool resources to provide short-term case management, job retention services, work supports, and training opportunities to all network employees. ERN-related services are provided through strong employer partnerships with local social service agencies, WIA agencies, chambers of commerce, and community and technical colleges. The Western Michigan ERN shows that successful business-community partnerships benefit the employers’ bottom lines, help workers access the support they need to stay employed and build job skills, expand community college enrollment and grant opportunities, and create new ties between the business community and public and non-profit agencies.
Promote tax credits and incentives for both employers and employees – The federal government and many states offer the earned income tax credit (EITC), which raises incentives for low-wage workers to accept and keep jobs. This type of incentive may boost annual earnings and invite greater wage growth over time by keeping workers in their jobs. The State of California has a work opportunity program that promotes the hiring of designated, qualified individuals for which the business may claim a tax credit for each employee hired. The federal Work Opportunity Tax Credit provides a similar subsidy to business for hiring high-need populations that can help defray training expenses. In addition, federal education tax credits exist to help adults and youth offset the costs of education. The American Opportunity and Lifetime Learning Credits can be fully deducted from personal federal income taxes and serve as a powerful incentive for more personal investment in education and training.62
Connect earners in lower-income working families to career counseling to help them create a career “pathway” or “ladder” – Career ladder, lattice, or pathway programs help individuals visualize their career-related job opportunities and provide courses and curricula connected to various jobs within a career track.63 In Arkansas, a collaborative initiative is designed to help workers pursue articulated career pathways in six areas: business, various industrial skills, welding, early childhood development, emergency medical technology, and nursing. The Denver Community College Essential Skills Program assigns a case manager who works with individuals for as long as they are in the program and during the first year of their employment. Job-placement assistance and social supports for work through some programs clearly raised participant earnings in an experimental evaluation.
Evidence-based Strategies and Approaches
Financial Stability Focus Area: Family-Sustaining Employment
16
17
The broad picture of the U.S. labor market
shows a situation where growing numbers of
workers remain in low wage jobs and where
millions more disconnect from work entirely
because of poor earning prospects. At the same
time, employers continue to have difficulty
filling workforce needs due to a shortage of
in-demand skills among workers. This gap
between current and future workforce needs
and the skills deficit of the workforce is one of
the main problems facing the U.S. economy and
the primary challenge in helping workers secure
family-sustaining employment. It is also the
point at which United Ways can most effectively
focus their time, energy and resources as
problem solvers for employers and workers. The
research is clear that to advance their prospects
and obtain family-sustaining employment,
lower-income workers need at least some
postsecondary training (or retraining) and
relevant work experience. Education and
training opportunities, targeted to specific, in-
demand occupations, need to be combined with
financial supports and incentives for workers,
as well as services that will reduce employment
obstacles and address critical ancillary needs.
United Way Worldwide and local United Ways
are a critical link in the economic development,
education, workforce development and workforce
support eco-system. Here are a few ways local
United Ways can help to serve their communities
in creating more effective workforce development
systems and guide individuals and families
toward economic self-sufficiency:
UNITED wAYS AS kNOwLEDGE BROkERS
United Ways can occupy a unique position
in the “dual-customer” (i.e., employers and
workers) world of workforce development.
Decades of service and intimate engagement
with local communities give local United Ways
an unparalleled understanding of the history
and current condition of the individuals and
families that make up local neighborhoods.
This nuanced and textured understanding
of the attributes, assets and obstacles of
different segments of local communities is
vital information in helping to guide the design
and implementation of workforce development
programs. By supplementing this community
knowledge with a robust understanding of the
skill needs of existing employers and those the
community is seeking to attract, United Ways
can be critical players developing training and
workforce systems that meet the needs of both
workers and industry.
UNITED wAYS AS COMMUNITY CONVENERS
The education, training, workforce and
economic development conversation needs a
focal point that can integrate all perspectives
into a single conversation. United Ways are
uniquely positioned to help convene and
manage this complex conversation and assure
that all elements of the community have a voice.
This convening role has two very important
components. First is the role of the United Way
in identifying, training and supporting nonprofit
leadership across various service domains.
Local United Ways can help to bring key
thE WAy ForWArd
18
Financial Stability Focus Area: Family-Sustaining Employment
community leadership into economic and
workforce development and, in doing so,
improve public understanding of goals and
objectives as well as increase “buy-in” within
the community for new investment and
development. Second, most United Ways
already have significant business and industry
participation on their local boards and in
fundraising, volunteer development and service
campaigns. These established relationships
of trust are critical to helping bridge diverse
communities and foster dialog between the
for-profit, government and non-governmental
sectors and help navigate among stakeholders
to improve and reform education, training and
workforce development programs.
United Ways as advocates for empoWering commUnities and strengthening families
United Way Worldwide has undertaken to
improve understanding within Congress and
the current Administration about the need
to “get smarter” in creating coordinated
approaches to improving outcomes for lower-
income individuals and families. In testimony
submitted to the U.S. Senate Committee
on Health, Education, Labor and Pensions
Committee, United Way Worldwide and eight
local United Ways outlined a conceptual
framework for empowering local leadership to
de-silo social services delivery and increase
resources to communities that design and
implement successful strategies for improving
social and economic outcomes. This kind of
advocacy at the federal, state and local level can
help provide local communities with the policy
tools and programmatic resources needed
to identify and address the needs of families
and communities in meaningful and impactful
ways. Local United Ways can replicate these
efforts through their elected representatives at
the state and federal level to improve service
coordination as a primary means of improving
outcomes for communities.
19
EndnotES
1 “income, poverty, and health insurance Coverage in the U.S.: 2010.” U.S. Census bureau, September 2011. http://www.census.gov/prod/2011pubs/
p60-239.pdf2 goodman, Christopher J. and Steven m. mance. “Employment loss and the
2007-09 recession: An overview.” Monthly Labor Review, bureau of labor Statistics, April 2011. http://www.bls.gov/opub/mlr/2011/04/art1full.pdf
3 ibid.4 ibid.5 “labor Force Statistics from the Current population Survey.” bureau of labor
Statistics, data extracted march 21, 2012. http://data.bls.gov/timeseries/lnS14000000
6 barker, megan m. “manufacturing employment hard hit during the 2007-09 recession.” Monthly Labor Review, bureau of labor Statistics, April 2011. http://www.bls.gov/opub/mlr/2011/04/art5full.pdf
7 Scott, robert E. growing U.S. trade deficit with China Cost 2.8 million jobs between 2001 and 2010. September 20, 2011. http://www.epi.org/publication/growing-trade-deficit-china-cost-2-8-million/
8 “national income and product Accounts gross domestic product, 4th quarter 2011 and annual 2011 (second estimate).” bureau of Economic Analysis, U.S. department of Commerce, February 29, 2012. http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
9 “labour productivity Annual growth rate.” organisation for Economic Cooperation and development, http://stats.oecd.org/index.aspx?datasetCode=pdygth
10 holzer, harry J. “is the middle of the U.S. Job market really disappearing? A Comment on the ‘polarization’ hypothesis.” Center for American progress. may 11, 2010. http://www.americanprogress.org/issues/2010/05/middle_job_market.html
11 holzer, harry J. and robert i. lerman. “the Future of middle-Skilled Jobs.” brookings institution. February 2009. http://www.brookings.edu/papers/2009/02_middle_skill_jobs_holzer.aspx
12 “occupational outlook handbook, 2010-11.” bureau of labor Statistics. http://www.bls.gov/oco/
13 greenstone, michael and Adam looney. “Understanding the ‘Jobs gap’ and What it Says About America’s Evolving Workforce,” Up Front Blog, brookings institution. http://www.brookings.edu/opinions/2012/0309_jobs_greenstone_looney.aspx
14 “Job openings and labor turnover Survey highlights January 2012,” bureau of labor Statistics, march 13, 2012. http://www.bls.gov/web/jolts/jlt_labstatgraphs.pdf
15 Special analysis prepared by EmSi for San mateo Community College http://www.smccd.edu/factbook/imgfile/43-top20jobs-bay%20area%202010.pdf
16 Kempner, randall. “the talent imperative for older industrial Areas,” Retooling for Growth: Building a 21st Century Economy in America’s Older Industrial Areas. Columbia University, 2008.
17 Getting Ahead: A Survey of Low-Wage Workers on Opportunities for Advancement. (boston, mA: Jobs for the Future, 2003). http://www.jff.org/publications/workforce/getting-ahead-survey-low-wage-workers-op/244
18 “Critical Skills needed and resources for the Changing Workforce: Keeping Skills Competitive.” Society for human resource professionals and Wall Street Journal Career Journal, June 2008. http://www.shrm.org/research/SurveyFindings/Articles/documents/Critical%20Skills%20needs%20and%20resources%20for%20the%20Changing%20Workforce%20Survey%20report.pdf
19 Bridging the Skills Gap: How the Skills Shortage Threatens Growth and Competitiveness…and What to do About it. (Alexandria, vA: American Society for training & development, Fall 2006).
20 “Employment projections.” bureau of labor Statistics, may 4, 2011. http://www.bls.gov/emp/ep_chart_001.htm
21 “Economic news release.” bureau of labor Statistics, march 9, 2012. http://www.bls.gov/news.release/empsit.t04.htm
22 Kempner, randall. “the talent imperative for older industrial Areas,” Retooling for Growth: Building a 21st Century Economy in America’s Older Industrial Areas. Columbia University, 2008.
23 http://www.urban.org/url.cfm?id=411532 24 “Job openings and labor turnover Survey, January 2012.” bureau of labor
Statistics, march 13, 2012. http://www.bls.gov/web/jolts/jlt_labstatgraphs.pdf
25 “gaps in the Energy Sector Workforce pipeline, 2009 Survey results.” Center for Energy Workforce development, 2009. http://www.cewd.org/mem_resources/2009 percent20Survey percent20Exec percent20Summary.pdf
26 “2010 talent Shortage Survey results.” the manpower group, may 2011. http://files.shareholder.com/downloads/mAn/1266555322x0x469531/7f71c882-c104-449b-9642-af56b66c1e6d/2011_talent_Shortage_Survey_US.pdf
27 Klein-Collins, rebecca. “building blocks for building Skills: An inventory of Adult learning models and innovations.” Council for Adult & Experiential learning (CAEl), 2006.
28 Jenkins, davis and Christopher Spence. “the Career pathways how-to guide.” Workforce Strategy Center. october 2006.
29 http://uwnnj.org/documents/poF_pressrelease11.pdf 30 “the road to opportunity.” United Way of massachusetts bay & the merrimack
valley, 2007. http://supportunitedway.org/files/the-road-to-opportunity_0.pdf31 ibid.32 los Angeles Workforce Funders Collaborative, Web. http://www.
laworkforcefunders.org/programs/functions.php33 greenville Collaborative for Workforce development (gCWd), United Way of
greenville County, Web.
http://www.unitedwaygc.org/workforce-development-partnership.php 34 “Frequently Asked Questions.” U.S. Small business Administration. http://
www.sba.gov/sites/default/files/sbfaq.pdf35 benus, Jacob. “growing America through Entrepreneurship: Final Evaluation of
project gAtE.” impAQ international, llC. december 2009.36 “refuge micro-Enterprise project.” Asian Services in Action, inc. http://www.
asiainc-ohio.org/programs/self-sufficiency/refugee-microenterprise-project/ 37 “our mission: helping people.” United Way of greater St. louis. Web. http://
www.stl.unitedway.org/templates/uw_whoweare.aspx?id=10952 38 Eryn gable. “Sub-Urban: blimpie aims to turn major cities into hubs for subs.”
Entrepreneur, may 2001. http://www.entrepreneur.com/article/3978439 “microentrepreneurs and their businesses: 2008 microtest
outcome.”Microtest, issue 2, march 2009. http://fieldus.org/microtest/mtoutcomes08FactSheet.pdf
40 national Cooperative business Association. Web. http://www.ncba.coop/
20
41 heath prince and Jerry rubin. “building new labor market institutions: State policies that Support Workforce intermediaries.” Investing in Workforce Intermediaries (Casey Foundation and Ford Foundation, november 2006).
42 James Kemple, with Judith Scott-Clayton. Career Academies: Impacts on Labor Market Outcomes and Educational Attainment. (new york, ny: mdrC, 2004).
43 prosio, tony. “From hidden Costs to high returns: Unlocking the potential of the lower-Wage Workforce.” Insight Center for Community Economic Development. Summer 2010.
44 “Workforce Solutions Collaborative of metro hartford Shares in honor from Council on Foundations.” United Way of Central and northeastern Connecticut. http://www.unitedwayinc.org/post/workforce-solutions-collaborative-metro-hartford-shares-honor-council-foundations-0
45 “recruiting and training through public Workforce System produces Strong roi CvS Caremark” Web. www.cvworkingfamilies.org/system/files/CvS+micro-case+Final.pdf
46 maureen Conway, Amy blair, Steven l. dawson and linda dworak-muñoz. “Sectoral Strategies for low-income Workers: lessons from the Field” (Washington, dC: Aspen institute, Summer 2007). http://www.sectorstrategies.org/sites/all/files/Sectoral%20Strategies%20for%20low%20income%20Workers.pdf
47 “Energy industry Competency model: generation, transmission, and distribution.” Center for Energy Workforce development. Web. http://www.cewd.org/documents/energymodel.pdf
48 maguire, Sheila, Joshua Freely, Carol Clymer, maureen Conway and deena Schwartz. “tuning in to local labor markets: Findings From the Sectoral Employment impact Study.” private/public ventures. July 2010.
49 Susan galonka and lisa matus-grossman. Opening Doors: Expanding Educational Opportunities for Low-Income Workers. (new york, ny: manpower demonstration research Corporation, may, 2001).
50 www.cpe.ky.gov/51 Background and Supporting Evidence for Adult Education for Work. (national
Center on Education and the Economy, 2009).52 bridging the gap: meeting the Challenge of Universal Access through Faith-
based partnerships. U.S. department of labor, Center for Faith-based and Community initiatives. www.virtualcap.org/downloads/mi/mi_EtCS_Access_points_bridging_the_gap.pdf
53 Anne roder with Carol Clymer and laura Wyckoff. Targeting Industries, Training Workers and Improving Opportunities ((new york, ny: public/private ventures, 2008). http://www.ppv.org/ppv/publications/assets/263_publication.pdf
54 institute for a Competitive Workforce and the national Career pathways network. “thriving in Challenging times: Connecting Education to Economic development through Career pathways.” october 2009.
55 James Kemple, with Judith Scott-Clayton. Career Academies: Impacts on Labor Market Outcomes and Educational Attainment. (new york, ny: mdrC, 2004).
56 “our Work in Education.” United Way of the midlands. Web. http://www.uway.org/our_work_community_impact/education/
57 baider, Allegra, vickie Choitz, Amy Ellen duke-benfield, marcie W.m. Foster, linda harris, Elizabeth lower-basch, neil ridley, Julie Strawn. “Funding Career pathways and Career pathway bridges: A Federal policy toolkit for States.” Center for law and Social policy (ClASp). may 2010. http://www.clasp.org/admin/site/publications/files/FundingCareerpathwaysFederalpolicytoolkitforStates.pdf
58 “An integrated Approach to Fostering Family Economic Success: how three model Sites are implementing the Center for Working Families Approach.” Center for Working Families, Annie E. Casey Foundation, 2010. http://www.aecf.org/KnowledgeCenter/publications.aspx?pubguid=%7bF0C4C227-E25E-4b20-A005-0dE98C2FA82C%7d
59 proscio, tony. “From hidden Costs to high returns: Unlocking the potential of the lower-Wage Workforce.” insight Center for Community Economic development. Summer 2010. http://www.insightcced.org/uploads/publications/wd/hiddenCosts-highreturns.pdf
60 “the road to opportunity.” United Way of massachusetts bay & the merrimack valley, 2007. http://supportunitedway.org/files/the-road-to-opportunity_0.pdf
61 derr, michelle and pamela holcomb. “Employer resource networks.” issue brief, mathematica policy research, June 2010. www.westmichiganteam.org/images/wired_brief1.pdf
62 “American opportunity tax Credit.” internal revenue Service, november 9, 2011. http://www.irs.gov/newsroom/article/0,,id=205674,00.html
63 “Career ladders and lattices.”o*net resource Center. www.onetcenter.org/ladders.html
Financial Stability Focus Area: Family-Sustaining Employment
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