CHICAGO NEIGHBORHOOD JOBSTART: A TRANSITIONAL JOBS RESPONSE TO THE GREAT RECESSION

Presented at Creating Employment Opportunities through TANF: Lessons Learned from ARRA/TANF—ECF, National Transitional Jobs Network 2012 Conference

Jonah Kushner | 312.870.4956 | jkushner@heartlandalliance.org

Chicago Neighborhood JobStart: Acknowledgements

IMPACT Evaluation Team Jonah Kushner, Amy Rynell, Amy Terpstra, Lindy Carrow, Nicole Juppe, Jeffrey Fiore, Ian Mobley

Evaluation Funder2016 Fund for Chicago Neighborhoods

Chicago Neighborhood JobStart: Context

TANF Emergency Contingency Fund$5.0 billion available for subsidized employment

State Contribution RequiredPublic, private, or philanthropic funds

2016 Fund for Chicago NeighborhoodsFunds available for south and west-side neighborhoods

Chicago Jobs CouncilAdvocated use of funds for a transitional jobs program

Chicago Neighborhood JobStart: Timeline

02/2009:ARRA Enacted

03/2010:IDHS applies and receives approval for ECF funds

06/2010:IDHS concludes agreement with 2016 Fund

09/30/2010: Deadline for program spending!

Chicago Neighborhood JobStart: Program Design

Job Readiness TrainingAt least 30 hours in the 2 weeks prior to the transitional job

Subsidized Employment30 to 40 hours per week for16 weeks

Case ManagementOnce per week during the first four weeks, twice per week thereafter

Supportive ServicesTransportation, childcare, work-related tools and clothing, and others

Job Placement and RetentionJob search and application training, connection to other services

Chicago Neighborhood JobStart: Comparison with PITW

TANF eligible Heartland Human Care Services 26 subcontractors Supportive services not required April 2010 to January 2011 71 of 102 Illinois counties Over 27,000 participants

TANF eligible, barriers to employment

2016 Fund for Chicago Communities

12 grantees Supportive services required June 2010 to September 2010 13 of 77 Chicago Community

Areas 1,518 participants

Put Illinois to Work JobStart

Chicago Neighborhood JobStart: Participants*

Adults Youth AllNumber 1,030 488 1,518Average age 28 17 24Less than high school diploma/GED 27.7% 78.9% 44.8%

High school diploma/GED 55.3% 13.9% 41.5%Some college 14.7% 7.0% 12.1%Associate’s or bachelor’s degree 2.4% 0.2% 1.7%Caring for a minor child in the home 62.2% 5.3% 43.6%Noncustodial parent of a minor child 18.1% 1.1% 12.5%

Average family size 3.5 4.2 3.7Average monthly household income $609 $1,127 $760* Analysis of JobStart program records. All participants worked at least 1 hour in a transitional job according to program records.

Average: 29 10 or fewer:

54.1% 50 or fewer:

85.2%

Employer Type* Employees on Payroll Before JobStart*

Public

For-profit

Nonprofit

2.7%

40.5%

56.8%

* Analysis of JobStart employer survey responses. N = 74 for employer type and 61 for employer size. All respondents employed at least one participant for at least 1 hour in a transitional job according to program records.

Chicago Neighborhood JobStart: Employers

Chicago Neighborhood JobStart: Subsidized Employment*

Adult ParticipantsAverage weeks worked 9.1

Average hours/week 35Average hourly wage $9.71

Average wages/participant

$3,100

Average wages/month $1,361

On average, adults had 10.4 weeks possible in transitional job given his or her start date

On average, adults worked 87.5 percent of weeks possible given their start dates

On average, wages per month were 223.5% of reported household income pre-program

* Analysis of JobStart program records. All participants worked at least 1 hour in a transitional job according to program records.

Chicago Neighborhood JobStart: Economic Stimulus*

Total wages earned:

$3.9 million

Assume 70% spent in retail

sector

Initial demand:$2.8 million

Subsequent demand:

$2.3 million

Increased household earnings:

$1.2 million

Increased employment:

44 jobs

* Bureau of Economic Analysis Regional Input Output Multiplier System Type II multipliers and analysis of program records.

Chicago Neighborhood JobStart: Unsubsidized Placement*

Adult ParticipantsUnsubsidized employment

12.0%

Education or training 6.0%Another jobs program 3.8%

Unemployed 59.9%Unknown 18.3%

Records reflect placement immediately after transitional jobs ended

Some participants may have found employment but not reported to program

IMPACT has requested UI records to more accurately reflect pre and post-program employment

* Analysis of JobStart program records. All participants worked at least 1 hour in a transitional job according to program records.

Chicago Neighborhood JobStart: Challenges

1. Timeline“[A] TJ program is about trials [and] errors and multiple chances. An individual is in a learning process which sometimes must allow for them to make mistakes, learn from them and move forward. [JobStart] for all intents and purposes did not allow for such learning to happen due to the rushed nature of the program.”

-JobStart project director

2. Residency Requirement3. Contemporaneous Operation of JobStart and PITW4. Reliance on Small Nonprofit and For-Profit Employers5. Absence of Funding for Job Placement and Retention6. Economic Conditions

Chicago Neighborhood JobStart: Recommendations

Training and Support Provide ongoing job readiness training Provide payment or other incentives Feature employer representatives or program graduates Provide training in cross-cutting hard skills Provide group sessions

Subsidized Employment Ensure employers understand the program model Use an employer Memorandum of Agreement Use a variety of employers to accommodate participants Use employers open to hiring ex-offenders Provide assistance that helps employer support participants

Chicago Neighborhood JobStart: More Information

Access the Full Report and Summary at:http://www.heartlandalliance.org/

research/projects-publications/chicago-neighborhood-jobstart.html

Jonah Kushner 312.870.4956jkushner@heartlandalliance.org