The Opportunity Movement

Devoted to closing the Opportunity Divide

Monthly Archives: July 2011

The “Try Before You Buy” Job Creation Model

Ask any political candidate what the US can do today to create more jobs, and he or she will likely suggest solutions such as implement a job-creation tax credit, create an infrastructure bank, or fully fund the AmeriCorps program. Sure, these fixes will lead to job creation in the medium term, but what can our country do to ensure jobs are available now?

Let’s take a step back. There’s no argument that unemployment is a major problem in the United States today. According to the Bureau of Labor Statistics, nearly 14 million people are unemployed; this amounts to just over 9 percent of the entire US population. Any job hunter will tell you about the frustration they face in searching for a position that matches their skills and provides an income, as well as benefits, job security, and room for growth. Listen a bit closer, however, and you will also hear frustration from hiring managers at top American companies about the lack of talent they are finding in the candidate pool: there are 3 million job vacancies in the United States today; filling them today would decrease unemployment by a few percentage points! Clearly, we have a problem in the labor exchange market that needs to be fixed, and fixed now.

What we could do immediately is offer $10,000 to any employer with one of those three million vacancies. The money could then be used to pay the wages of an unemployed person for three months, giving time to train that person in a skill the employer needs. At the end of three months, the employer could choose whether or not they want to hire the individual. Call it a “try before you buy” model, or a risk-free hiring process.

One program that is already implementing a version of this is Georgia Work Ready. It is the only program of its kind to be conducted through a partnership between a state government and a state chamber of commerce. Work Ready provides a skills assessment and certification for job seekers and a job-profiling system for businesses. By identifying both the needs of business and the available skills of Georgia’s workforce, the state can more effectively generate the right talent for the right jobs. In 2010 alone, more than 14,000 Georgians found work using their Georgia Work Ready certificate.

This model is promising. If other states followed suit, we would find ourselves with a better prepared workforce, fewer job vacancies, and more marketable talent with better paths for success, not to mention greater efficiency in the hiring process for companies. This would lead to a stronger economy over the long run and help the US to better compete in the global economy.

Nodding In Violent Agreement

After spending two days in Chicago at the Clinton Global Initiative event, I left with a sore neck.  Nope, the pillows at the hotel were just fine, thank you.  Rather, I found myself nodding in assent so many times throughout the two days that I must have tweaked a muscle!

For someone who has obsessed about economic equality and America’s skills gap for the past decade, it was like being a kid in a candy store.  Two days of nothing but discussion about jobs, jobs and more jobs; how to create them, what to do to get people skilled up for them, and what cities, companies and the federal government can do to get unemployment down and the economy up.

It was an impressive gathering, with more Mayors, Governors and former Clinton administration folks in attendance than you can shake a stick at.  Over 750 public, non-profit and private sector leaders were there, each chipping away at the fact that we have an applicant rich, skills poor country with an ever-increasing level of economic inequality.  To make it even sweeter, among those leaders were several wonderfully talented Year Up Chicago students who volunteered at the event.

Interested in learning more about the day’s event? Please click here for an agenda, and here for some interesting statistics about jobs in America.

From Year Up’s perspective, there were two interesting observations:

1. Year Up is tackling a set of “rising tide” issues:  It is clear that issues of economic justice, economic competitiveness and post-secondary education reform are becoming increasingly important issues in our country. The dialogue and the debate are shifting, and for good reason.

2. Year Up has built a strong reputation nationally:   I was floored to hear Nobel Prize winning economist James Heckman explain in front of 750 people that: “In general, you get a larger return on investment in early childhood education.  Very few people have proven that you can get a return investing in older youth who are off track.  However, there have been some recent models and research from programs that offer very targeted training and support services that are disproving that theory.  One of them is Year Up.”

On a more personal note, the Year Up Chicago student volunteers were just amazing!  I had the opportunity to spend time with almost all of them, but one young man, Carl Lynch, really got me thinking.

Carl explained that he had never been at an event like this before.  You could see him absorbing information and learning, getting more and more comfortable in a matter of minutes.  We talked about how to politely wait for someone to finish a conversation before you introduce yourself, and how to connect with someone quickly so that they become engaged. Arguably small things, but not unimportant.

It struck me that there is a strong correlation between the journey that Carl is on and the goals of the CGI Summit.   CGI wants to reduce unemployment and Carl wants a good job. Policies have to link to people (like Carl) who need access to opportunity to realize their potential. The gap between the two can be bridged, and all of the people in the room that day, including Carl, can be a big part of the solution.

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