Getting to Work: Who Benefits From the Recovery Package?

by Rosanna Stephens

Published March 20, 2009 @ 12:00PM PT

The current economic crisis impacts all of us, but those who were already living on the margins of economic opportunity are getting hit much harder. The American Recovery and Reinvestment Act (ARRA), through its nearly $4 billion investment in the Workforce Investment Act (WIA) grants and its overall potential to create up to 4 million jobs, is an important step in getting people back to work. While heartened at the level of funding and the speed with which these critical dollars will be funneled to each state, I find myself asking just who, exactly, will be the primary beneficiaries of these significant investments. As this news swirls among workforce development providers, questions should be raised about the types of jobs created and whether we have the skilled workforce required for these jobs.

According to The Workforce Alliance, the jobs that will be coming down the pike will be in a variety of sectors including Health Care and Construction and the emerging sectors of Energy Efficiency and Clean Energy. To be able to access these jobs, one will likely need to have education and training beyond high school but less than a 4 year degree; some degree of postsecondary education will be required in addition to possessing some level of job skills. While this is good news for those who fit this bill, only 1 in 5 American adults between the ages of 25 – 54 have reached some level of postsecondary education, but no degree, and nearly twice as many have a high school diploma or less. Given these stark statistics, will we be able to ensure that those with low-incomes and limited skills aren’t left behind?

I am cautiously optimistic that the workforce development providers tasked with spending the recovery funds can provide the extra push that low-income and low-skilled individuals need to move into family supporting jobs. It will require some diligence and innovation -- diligence in ensuring that that the types of jobs created pay family supporting wages and provide career advancement and innovation in delivering training that meets the dual needs of low-income, limited skill adults and the employers hiring workers. There is no doubt that there are many people on the bench who will possess the skills required for the jobs that will come online. But there are those who are at risk of being left behind because they lack such skills to take advantage of employment opportunities at higher tiers of the labor market. Innovation and diligence are necessary elements for reaping the benefits of the recovery effort.

The recovery package can be an important opportunity to revisit how training and education is delivered, particularly to the underserved in our communities. In looking at efforts underway in Arkansas, Kentucky, Oregon, Wisconsin, and Washington, community colleges are key players in the states’ workforce development strategies and are creating career pathways, which are an important vehicle for the economic advancement of low-income, low-skill adults.

By focusing on job skills and vital support services, such as childcare and transportation, individuals receive a comprehensive set of services and the training needed to take the next step to a good paying career. Stay tuned in coming weeks for a new report about the career pathways efforts in these states and just how transformative this approach can be.

There is much work to be done and a limited timeframe in which to complete it. I am confident that innovations such as career pathways and diligence in creating economic opportunities for all those in need of work will yield a successful recovery effort.