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  1. Job Training Strategies

  2. "Large scale unemployment during a recession is bad enough, but large scale unemployment during a period of prosperity would be intolerable." John F. Kennedy, 1961

  3. Manpower Development and Training Act of 1962 • Goal: retrain workers displaced from automation of factory jobs • Three year program • Authorized training allowance for unemployed participants • Failure: training given in the wrong skills

  4. Work Incentive Program 1967 • Goal: encourage welfare recipients to work through • regulatory requirements • incentives • Success rate: 2-3% • WIN II served to force participants into low status work

  5. Comprehensive Employment and Training Act of 1973 • Target population: economically disadvantaged, unemployed, or under-employed • Block grants to state and local governments • Supporting public & private job training: Job Corps and Summer Youth Employment

  6. Job Training Partnership Act 1982 • Goals: • To prepare youth and unskilled adults for entry into the labor force • Make job training affordable to those economically disadvantaged individuals • Provisions: • Vocational education • On the job training between 2-6 mo.

  7. Family Support Act 1988 (Job Opportunity & Basic Skills Training Program) • Comprehensive welfare-to-work program • Goal: give AFDC recipients the chance to participate in job training, work, and education leading to economic self-sufficiency • Provides transportation & child care

  8. Policy Issues Leading to Improvement of Lower Class • Job creation • Improvement of income from work (EITC, wage subsidies, minimum wage, etc) • Adjustments of tax rates • Subsidized child care & child support • Health insurance extended to low wage workers • Unemployment insurance accounting for changing employment conditions

  9. Job Training Programs • Functions: • Enhance job specific skills • Assist with job search • Access to jobs • Failures: • Skills valued • Connect trainees to best job opportunities

  10. Changes Making Job Training Programs Essential • From 1979-1993: gap between earnings of people with 4 year college degrees and high school diplomas increased from 38% to an 80% difference • GED/High school diploma does not certify basic skills

  11. Social Capitol • Granovetter  social networks play an important role in maintaining limited access to good employment opportunities for low-wage workers • Holzer  isolation from informal referral networks excludes disadvantaged populations from the work force

  12. Job Training is More than Skill Acquisition • To end poverty, what is need “is more than a job skill-more than job training. An attitudinal change is needed: a need for self-esteem, incentive to train in a skill, family counseling, and above all, a subjective feeling of competence and equality with others” Father Soto • Employers in low-skill market look at: • Attitude towards work • Discipline (through work history) • Punctuality

  13. Essential Characteristics of Job Training Programs • Human assets: assist disadvantaged people in developing skills for private sector jobs • Social assets: access to employment in expanding industries

  14. Personal Responsibility and Work Opportunity Reconciliation Act August 22, 1996 • strong work requirements • performance bonuses for states • support for families (incl. child care)

  15. Results achieved by Clinton: • Since Jan ’93: welfare rolls fell from 14.1 mil to 6.6 mil (fewest number since 1968) • 2.4 % of all Americans are on Welfare (lowest level since 1966)

  16. $200 mil for top 10 states States with best record moving parents on welfare into jobs: Indiana Minnesota Washington Florida

  17. Oct ’97 – Sep ‘98 1.3 mil welfare recipients went to work 80% were still working 3 months later 23% increased of their income

  18. “The Welfare to Work Partnership” 1997: 105 businesses 1998: 15,000 businesses hiring 65,000 welfare recipients

  19. “Federal Government’s Hiring Initiative” By August 1999: 14,000 By May 2000: 29,000

  20. “Father’s work” Grants for low-income fathers who are not able to support their children financially $ 125 mil for 40,000 grants

  21. Tax credits for Employers “Welfare-to-Work-Tax-Credit” offers a credit equal to: - 35% of the first $10,000 in wages for the first year - 50% for the first $10,000 in the second year - total credit up to $8,500

  22. Bush Administration High Growth Job Training Initiative -A strategic effort to prepare workers to take advantage of new and increasing job opportunities -Aimed at high growth/high demand and economically vital industries -The foundation of this initiative is partnerships that include the public workforce system, business and industry, education and training providers, and economic development

  23. Community College Initiative • Budget of $250 million dollars • Employer-focused competitive grant program for training in community and technical colleges • Combined through the Partnership for Jobs Program

  24. Partnership for Jobs • Done in order to assist businesses in recruiting, training,and retaining a skilled work force • Designed to ensure that large multi-state businesses remain connected to the full range of services through local and state workforce systems • Trying to develop national business partnerships

  25. Employment and Training Administration Demand Driven Incubator Sites: -Using specific locations to train employees in areas where growth is considered possible Goals: -Working examples of state and local workforce investment that focus on high growth, demand industries -Model for the public workforce system and its education training partners to develop workforce solutions -Strategies and approaches to achieve success with the public workforce system to facilitate replication -Value of leveraging public workforce dollars to implement solutions for local employers and provide career opportunities for local workers

  26. Online Training Programs • Not feasible for impoverished • Just as expensive, if not more expensive than regular programs • Lower class don’t have access to computers in most cases • People are told to use a public library

  27. Kalamazoo Valley Community College

  28. Job Training Opportunities • Application and Fees • Michigan Works-NAFTA • Program Length • Soft and Hard Skills • Internships available • Job Placement

  29. Cost • $52 per credit  25 credits a year = $1300 per year • NAFTA and programs affiliated with the Dislocated Workers Program cover total tuition and book fees • KVCC pairs up with Michigan Works to cut-costs for low-income individuals

  30. Internships • 8 of the degree programs require an internship to graduate • 50 students per year • Paid and unpaid available • 50-70% retain internship and gain employed at site • KVCC administration visits site mid-way through semester -Student graded on pass or fail basis

  31. Eileen: Job Training at KVCC

  32. Strive “Either Fail or Grow”

  33. General Info • Deals with the hardest people to employ • Has placed 15,000 people into jobs (1997) • First located in New York • Funded by corporate and charitable funds • Free for attendees • Three weeks of intense training

  34. Education • Boot camp and group therapy • 50% of the people that show up the first day end up completing the three week program • Soft skills are the main focus

  35. Attitude • It is not the lack of skills that keep these individuals from being successful, but their attitude • Many of the unemployed see themselves as victims and the victim attitude is not tolerated there

  36. Soft Skills • Do not be late • Structure and accountability • Appearance and presentation • Handshake 101 • Teamwork • Mock job interviews

  37. Strive success • 75% of graduates find work after graduating from program • 80% still retain jobs 2 years later • Strive continues follow up and support for 2 years

  38. CET • Core Mission: assist disadvantaged population in gaining access to the job market • Target population: farmers, mothers on welfare, out of school youth, past criminals, ESL, etc. • Effective Aspects: • Motivates student to learn job-specific skills • Part of employer recruiting network

  39. Michigan works Adult training program: Income based (70% of poverty line) People receiving cash assistance are obliged to participate (Work First Program) Teachers: social workers & teachers

  40. Common struggles:transportationchild caremaking decisionspunctualityorganizing one‘s own life

  41. Soft skills: -social behaviour -behaviour at work -conflicts @ work Hard skills: based on the program they participate short term - goal: to get a job Skills training