JobStart Full Report

8/3/2019 JobStart Full Report

1/108

ba

gr

a

sti

re

tra

so

ta

chi

cano

tra

13

e

ac

rie

atr

eri

ul

um

ini

tski

fe

cag

emor

nsp

o

plo

ica

sto

ce

anr

s

ewr

gb

llsi

er

20

nakex

ort

mu

er

on

em

sio

ein

ert

itin

mr

pa

enc

16o

emeri

tio

ity

utr

ig

Chicag

Fu

Transit

loy

gr

est

uio

cv

tyu

dfg

co

lym

entenc

ass

are

eac

bor

oNeigll Eval

onal Job

R

Fe

1

me

wi

e

pas

n

op

jkl

tin

pic

erejo

ista

sfo

jo

hoo

borho

ation

s Respo

cession

ruary2012

ttr

gu

tan

fg

qw

sdf

xh

gen

ids

icerea

nce

rad

pla

djo

odJobeport

se to th

nsi

em

dre

jkl

rty

hj

utn

yf

al

pardin

m

lts

em

sta

tart

:

Great

ion

lo

ov

xp

ure

chi

dgr

nd

bu

tnessc

loy

nd

ent

rtr

aljo

me

ry

ver

err

dc

nt

ag

ine

shilass

e

ou

or

port


2/108

2

Acknowledgements

Thisevaluation,conductedbytheSocialIMPACTResearchCenter,wascommissionedbythe

2016FundforChicagoNeighborhoods.

ChicagoNeighborhoodJobStartgranteeprogramdirectors,staff,andparticipants,2016Fund

contributors,keyprojectpartners,and2016Fundstaffwereallgenerouswiththeirtimeand

information,allowingIMPACTtoevaluatetheJobStartinitiativealongmanydimensions.

PrimaryAuthor:

Jonah

Kushner

EvaluationTeam:JonahKushner,AmyRynell,AmyTerpstra,AndrewHull,LindyCarrow,Ian

Mobley,JeffreyFiore,andNicoleJuppe.

SuggestedCitation:Kushner,J.(2012,February).ChicagoNeighborhoodJobStartevaluation

report:Atransitionaljobsresponsetothegreatrecession.Chicago:SocialIMPACTResearch

Center.

TheSocialIMPACTResearchCenter(IMPACT)investigatestodaysmostpressingsocialissuesandsolutionsto

informandequipthoseworkingtowardajustglobalsociety.IMPACT,aprogramofthenonprofitHeartland

Alliancefor

Human

Needs

&

Human

Rights,

provides

research,

policy

analysis,

consulting,

technical

assistance,

communications,andcoalitionbuildingtoprojectsinIllinois,theMidwest,andnationally.Visit

www.heartlandalliance.org/researchtolearnmore.

33W.GrandAvenue,Suite500|Chicago,IL60654|312.870.4949|[email protected]

Copyright2012bytheSocialIMPACTResearchCenteratHeartlandAlliance

Allrightsreserved


3/108

3


4/108

4

TableofContents

ExecutiveSummary 5

Introduction 9

Methodology 10

Background 11

NeighborhoodsandParticipants 19

Implementation 29

Grantees 29

ProgramStartUp 31

RecruitmentandEligibility 32

Assessment 36

JobReadiness

Training

37

TransitionalJobs 38

CaseManagement 51

SupportiveServices 52

JobPlacementandRetention 55

Administration 59

Funding 60

InteractionwithPITW 63

Outcomes 65

EconomicStimulus 65

ParticipantIncomeandEmployability 68

TransitionalJobsandUnsubsidizedPlacement 71

EffectsonGrantees 74

StakeholderSatisfaction 74

ComparisonwithPutIllinoistoWork 78

Successes,Challenges,andRecommendations 84

Appendices 96

AppendixA:

Evaluation

Methodology

96

AppendixB:HoursWorkedandWagesEarnedinJobStartTransitionalJobs 103


5/108

achicagoneighborhoodjobstartreport

barrierstoemploymenttransitionaljo

greatrecessiongrowiesunemploymen

americanreinvestmentandrecoverya

stimulustimelimitedpovertyreferrals

resumewritingnohighschooldiploma

trainingcomputersclothingchildcare

softskillshowtointerviewgetidgrante

tanfemergencycontingencyfundwage

chicago2016olympicbidsmallbusinescasemanagementservicespartnership

noworkexperiencejobreadinessclass

transportationassistanceemploymen13communityareasforadultsandyout

employeroutreachjobplacementwork

achicagoneighborhoodjobstartreport

Chicago Neighborhood JobStart

Evaluation Summary:

A Transitional Jobs Response to the

Great Recession

Chicago Neighborhood JobStart sought to place 2,200 low-

income residents of historically high unemployment

neighborhoods into transitional jobs.

FundingAfter Chicago lost its bid for the 2016 Olympic Games in late

2009, the 2016 Fund for Chicago Neighborhoods decided to

devote up to $2 million of its remaining funds to a transitional

jobs program for residents of its priority communities. This,

along with the in-kind contribution of supervision from

employers, would enable the 2016 Fund to draw down nearly

$20 million for the program from the TANF Emergency Fund

which was authorized by the federal American Recovery and

Reinvestment Act funding.

Program DesignJobStart subsidized the wage and payroll costs for the

participants it placed into time-limited jobs and provided

services to help participants maintain employment. The

program included at least 30 hours of job readiness training

covering workplace behavior and other skills, up to 16 weeksof subsidized employment of 30 to 40 hours per week, case

management in one-on-one meetings with program staff and

group sessions with other participants, and supportive services

such as transportation and childcare.

Key Players 2016 Fund: A fund created by eight private donors to help

residents of several south- and west-side neighborhoods,

areas with historically high unemployment and high

proportions of low-income residents, benefit from a 2016

Olympic Games.

12 grantees: Workforce development providers selectedto operate JobStart.

Illinois Department of Human Services: Applicant for theARRA funding. IDHS applied for the TANF Emergency Fund,

distributed the funds to the 2016 Fund, and helped them

understand and comply with federal rules for using the

funds.

JOBSTART OBJECTIVES

1. Help participants weather thelingering effects of the 2007

recession by providingemployment and income.

2. Improve the employability ofparticipants by providing them

with work opportunities to learn

how to work in supportive

environments.

3. Help participants gain permanentemployment.

January 2012

This evaluation, conducted by the

Social IMPACT Research Center atHeartland Alliance, was commissioned

by the 2016 Fund for Chicago

Neighborhoods.

33 W. Grand Avenue, Suite 500 |

Chicago, IL 60654 | 312-870-4943

[email protected]

www.heartlandalliance.org/research


6/108

For-profit

40.5%

Nonprofit

56.8%

Public

2.7%

JobStart Snapshot

Timing: Operated from June September 2010

Geography

13 Chicago

Community Areason the Citys

south and west

sides

Transitional Job

Participants

1,518

1,030 adult

participants

488 youth

participants

JobStart Employe

268: Number of Employ

Sample of Busines

child care centers, churches, schools, salons, prope

management and landscaping companies, for-proand nonprofit retail stores, fast food, and restaura

Business Typ

Average Siz39.3% 5 or fewer employe

54.1% 10 or fewer employe

85.2% 50 or fewer employe

Participant Demographics

Gender Race

34.6% Male 95.8% African American

65.4% Female 0.9% White3.3% Other

Average Age

Adult participants: 28

Youth participants: 17

Household Composition

Average family size: 3.7

Caring for a minor child in the home:

62.2% of adult participants

5.3% of youth participants

Noncustodial parent of a minor child: 18.1%(adult participants)

Education, Income, and Work Histo

Educational Attainme

Adults Yout

Less than a high school degree or GED 27.7% 78.High school degree or GED 55.3% 13.

Some college 14.7% 7.

Associate's or bachelor's degree 2.4% 0.

$760:Average Monthly Household Inco(Pre-Progr

Work Histo

86.7% had worked in the pAverage unemployment spell pre-JobStart: 1.3 yea

* Data from survey findings are marked with an asterisk. Due to a relatively low percent of overall employers and participants responding to the surveys, caution should be used in

generalizing survey findings to the entire employer or participant population. For more detail on survey response rates, see the full evaluation report.


7/108

Transitional Jobs by the Numbers

Total hours worked: 418,500

Average hours worked per participant: 276

Average weeks worked per participant:8

Average hours per week worked: 33

Total wages earned: $3,936,423

Average wages per participant: $2,593

Average wage per hour: $9.41

Participant Outcom

Income Earned Through JobSt

Adults Yout

Average monthly household income

prior to JobStart$609 $1,1

Average monthly wages per participant

earned in transitional job$1,361 $8

Average wages earned per month as a

percentage of prior income223.5% 78.

Entered Unsubsidized Employment, Education

Training, or Another Jobs Progr

21.8% adult participa

91.8% youth participa

Improvement in Employabilit

amount of supervision needed, productivity, perso

presentation, punctuality, communication abo

absences, and interpersonal sk

Business Outcomes

Many employers reported positive changes to their

business*

Survey respondents reported performance increased or

somewhat increased in the areas ofproductivity, quality

of work, number of customers or clients they were

able to serve, customer or client satisfaction, and

workforce satisfaction with workload.

Percent of participant and employer survey

respondents that would participate in JobStart or a

similar program again*

91.7% participants

85.1% employers

44.6% of employers reported that they were more likelyto hire low-income parents or youth than they were

before participating in JobStart.*

Economic Impa

JobStart participants likely spent much of their earn

income in the retail sector, including grocery stor

clothing stores, and gas statio

Estimated Economic Activity Associat

With JobStart in Cook Coun

Increased demand $5,082,7

Increased household earnings $1,228,6

Increased employment 44 j

Increased demand includes initial demand from wag

spent and subsequent demand from spending

businesses needed to support initial spend

* Data from survey findings are marked with an asterisk. Due to a relatively low percent of overall employers and participants responding to the surveys, caution should be used i n

generalizing survey findings to the entire employer or participant population. For more detail on survey response rates, see the f ull evaluation report.


8/108

Successes Within its 4 months of operation, JobStart successfully employed very disadvantaged workers. Inaddition to providing earned income, the analyses in this report suggest that the program increased their

employability, positively impacted businesses, and stimulated economic activity within Cook County.

Challenges JobStart provided participants with badly-needed earnings and appears to have benefitedbusinesses directly and indirectly; however, based on program records JobStart fell short of its goals for

transitional and unsubsidized job placements after the program ended. JobStart fell short of these goals for a

number of reasons:

The federal funds used for JobStart had to be spent by September 30, 2010. This fact, combined with therelatively late timing of Illinois application for the funds, left grantees with less than a month to set up

programs in order to provide participants with the maximum 16 weeks of transitional employment possible.

The requirement that grantees recruit participants exclusively from 13 community areas impeded their abilityto meet JobStarts transitional job placement goal.

Contemporaneous operation of JobStart and a larger scale subsidized employment program, Put Illinois toWork, appears to have caused some confusion and competition for employers.

JobStart relied heavily on relatively small for-profit and nonprofit employers for transitional jobs. Such employewere less likely to hire participants permanently due to their relatively small budgets and few job slots.

Absence of funding for job placement and retention after the transitional jobs ended appears to have impededunsubsidized placement.

Economic conditions across Illinois and the United States may have impeded placement of JobStart participantsinto unsubsidized jobs.

Finally, placement data from program records likely under-represent the percentage of adult participants whofound employment after JobStart ended.

Next Steps The full report provides recommendations for future subsidized and transitional jobs programsbased on the successes and challenges of JobStart. The intent is for the evaluation to be ongoing. The Social

IMPACT Research Center has requested records from Illinois Unemployment Insurance system and other public

programs to investigate the employment and earnings outcomes of participants and to estimate the impact of

JobStart on their employment earnings, and public benefits receipt.

Within a short period of time,JobStart recruited and trained a

large number of participants,placed them into transitional

jobs, and helped them accesssupportive services.

The individuals recruited,trained, and placed intotransitional jobs had a

pronounced need for earnedincome, as well as barriers thatprevented them from earning

income in a regular job.

The average participant workedthe overwhelming majority of

weeks available, suggesting that

the services offered by JobStarthelped participants overcometheir barriers to employmentduring the in-program period.

Average monthly income earnedthrough JobStart was sufficient

to make a meaningful differencein the ability of participants tosupport themselves and their

families.

The majority of employer surveyrespondents reported employingJobStart participants resulted inpositive business changes in theareas of productivity, quality of

work, number of customers /clientsthey were able to serve, customer or

client satisfaction, and workforcesatisfaction with workload.

In addition to its direct effectson the economic circumstancesof participants and employers,JobStart most likely affected

businesses and their employeesthroughout Cook County

through an economic multipliereffect.

JobStart helped participantsimprove employability by

helping them learn and practicesoft skills.

Participant and employer surveyrespondents indicated a high

level of satisfaction withJobStart.


9/108

9

Introduction

ThisreportdescribestheresultsofanevaluationofChicagoNeighborhoodJobStart,atransitional

jobs(TJ)programthatsoughttoplace2,200lowincomeresidentsofhighunemployment

neighborhoodsinto

temporary

jobs

with

local

employers.

The

program

operated

for

approximately

4monthsbetweenJuneandSeptember30,2010,usingacombinationofpublicfundingfromthe

AmericanRecoveryandReinvestmentAct(ARRA)andprivatefundingfromthe2016Fundfor

ChicagoNeighborhoods(hereinafterthe2016Fund).

AfterChicagolostitsbidfortheOlympicsinlate

2009,the2016Funddecidedtodevote$2million

ofitsremainingfundstoaTJprogramforresidents

ofitsprioritycommunities.This,alongwiththe

inkindcontributionofsupervisionfromemployers,

wouldenablethe2016Fundtodrawdown$18.2

millionin

ARRA

funding

for

the

program.

JobStartsubsidizedwageandpayrollcostsforthe

participantsitplacedintotemporaryjobsand

providedservicestohelpparticipantsmaintain

employment.Theprogramincludedatleast30

hoursofjobreadinesstrainingcoveringworkplace

behaviorandotherskills,upto16weeksof

subsidizedemploymentof30to40hoursper

week,casemanagementinoneononemeetings

withprogramstaffandgroupsessionswithother

participants,and

supportive

services

such

as

transportation

and

childcare.

Thecombinationofsubsidizedemploymentandsupportiveserviceswasintendedtoaccomplish

threeobjectives:First,intheshortrun,itwasintendedtohelpparticipantsweatherthelingering

effectsoftherecessionthatbeganinDecember2007byprovidingemploymentandincome.

Second,overthelongrun,itwasintendedtoimprovetheemployabilityofparticipantsbyproviding

themwithopportunitiestolearnhowtoworkinsupportiveenvironments.Finally,itwas

intendedtohelpthemgainpermanentemploymentaftertheirtransitionaljobsended.

ThisreportsetsforththeinitialresultsofanevaluationofJobStart.Itbeginswithdetailsonthe

uniquenationalandlocalcircumstancesthatmotivatedagroupofpublicagencies,nonprofit

organizations,and

philanthropic

funders

to

create

the

JobStart

program

using

ARRA

funding.

CharacteristicsofJobStartparticipantsandtheirneighborhoodsarethenpresented,followedby

findingsontheimplementation oftheprogramby12providers.Usingdatafromprogramrecords

andsurveysofparticipants,employers,andprogramstaff,thereportexplorestheoutcomesof

JobStartforparticipantsandemployersandestimatesJobStartsimpactoneconomicactivityacross

CookCounty.Itconcludeswithasummaryofthesuccessesandchallengesexperiencedby

providersastheyimplementedtheJobStartprogramwithinademandingtimeframeandoffers

recommendationsforfuturetransitionaljobsprogramsbasedontheirexperiences.

JOBSTARTOBJECTIVES

1. Helpparticipantsweatherthelingeringeffectsofthe2007

recessionbyprovidingemployment

andincome.

2. Improvetheemployabilityofparticipantsbyprovidingthemwith

opportunitiestolearnhowto

workinsupportiveenvironments.

3. Helpparticipantsgainpermanentemployment.


10/108

10

Methodology

TheJobStartevaluationwasdesignedtoanswerfourresearchquestions:

Theevaluationreportsummarizedbythisbriefaddressesthefirstthreequestions.TheSocialIMPACT

ResearchCenterplanstoanalyzeprogramimpactsinafuturereport.Thefollowingsourceswereusedin

thereport.PleaserefertoAppendixAforadetaileddescriptionofevaluationmethodology.

Programdocuments:Tounderstandprogramdesign,theCommunityServicesAgreement(CSA)betweenIDHSandthe2016FundandtheJobStartProceduralManualdevelopedbythe2016

Fundwerereviewed.Thesedocumentsdescribetheservicesthatgranteeswererequiredto

provideand

were

incorporated

into

grant

agreements

between

the

2016

Fund

and

its

grantees.

Programrecords:DataonthepersonalandhouseholdcharacteristicsofJobStartparticipantsweredrawnfromJobStarteligibilitydocumentationthatgranteeswererequiredtocollect.

Interviews:TounderstandthecircumstancesthatledtothecreationofJobStartandshapeditsdesignandimplementation,representativesofkeyorganizationsinvolvedinthedesign,

administration,andfundingofJobStartwereinterviewed.Tounderstandeachgrantees

experienceimplementingJobStart,allgranteeprojectdirectorswereinterviewed.

GranteeStaffSurveyandProjectDirectorSurvey:TounderstandimplementationofeachgranteesJobStartprogram,separatesurveysweresenttoJobStartprojectdirectorsandstaff

whoworkeddirectlywithJobStartparticipantsandemployersateachagency.Allproject

directorsresponded

to

the

Project

Director

Survey,

and

80

of

103

staff

who

were

still

employed

atthegranteesafterJobStartendedrespondedtotheGranteeStaffSurvey.

ParticipantSurvey:Dataonparticipantsemploymenthistory,barrierstoemployment,andsatisfactionwithJobStartweredrawnfromresponsestoa36questionsurveysenttoall

participants.Ofallsurveyssent,238useableresponseswerereceived.Becausethenumberof

responsesconstitutesarelativelysmallproportionofall1,618participants,cautionmustbe

usedingeneralizingaboutthecharacteristicsandexperiencesofallparticipantsfromsurvey

responses.MarginsoferrorareavailablefromtheSocialIMPACTResearchCenteruponrequest.

EmployerSurvey:DataonthecharacteristicsofJobStartemployers,theirassessmentsofparticipantprogress,andtheirsatisfactionwithJobStartarefromresponsestoa35question

surveysent

to

all

employers.

Of

all

surveys

sent,

77

useable

responses

were

received.

Because

thenumberofresponsesconstitutesarelativelysmallproportionofall268JobStartemployers,

cautionmustbeusedingeneralizingaboutallemployersfromsurveyresponses.Marginsof

errorareavailablefromtheSocialIMPACTResearchCenteruponrequest.

EconomicActivityAnalysis:EconomicactivityacrossCookCountyassociatedwithJobStartwas

estimatedusingeconomicmultiplierscreatedbytheU.S.DepartmentofCommerce,Bureauof

EconomicAnalysisusingitsRegionalInputOutputModelingSystem(RIMSII).Researchonthespending

behavioroflowincomehouseholdswasalsousedtoestimateeconomicactivity.

1.HowwasJobStartdesigned?

2.HowwasJobStartimplemented?

3.WhatwereJobStart'soutcomes?

4.WhatwereJobStart'simpacts?


11/108

11

Background

Thischapterdescribestheeventsthatledtothecreationof

JobStart,includingtherecessionthatbeganinDecember2007,

ChicagosOlympic

bid,

and

prior

workforce

and

community

developmenteffortsundertakenbyagroupofChicagoarea

philanthropicfunders,nonprofitorganizations,andpublicagencies.

NationalContext

TherecessionthatbeganinDecember2007providedtheimpetusfortheAmericanReinvestmentand

RecoveryAct(ARRA),thesourceoffundingforJobStartandscoresofothersubsidizedemploymentand

transitionaljobs(TJ)programsacrosstheUnitedStates.Thisrecessionprovedtobethelongestand

mostseveresincetheGreatDepressionevenafteritendedinJune2009,unemploymentcontinuedto

worsen,peakingat10.1percentinOctober2009.1Therecessionexacerbatedunemploymentamong

minorities,individuals

with

low

educational

attainment,

and

youth

even

more

severely:

unemployment

peakedat16.5percentforAfricanAmericans,15.7percentforindividualswithlessthanahighschool

degree,and19.5percentforindividualsage16to24withintheyearfollowingtherecessionsend.2

Theseconditionsfocusedtheattentionofstateandfederalpolicymakersonpoliciesforimmediate

economicstimulus,includingincreasingdemandforgoodsandservicesandalleviatingunemployment.

ARRAincludeda$5.0billionfundtohelpstatescoverthecostofincreasedspendingonTemporary

AssistancetoNeedyFamilies(TANF)resultingfromtherecession.3CalledtheTANFEmergency

ContingencyFund(TANFEF),itwasdesignedtoreimburseapprovedstatesfor80percentoftheir

increasedspendingonthreetypesofbenefitsandservicesfundedbyTANF:(1)basicassistance,(2)non

recurrent,shorttermbenefits,and(3)programsthatcreatejobsforneedyparentsbysubsidizingtheir

wages(subsidizedemploymentprograms).Importantly,theincreasedTANFspendinghadtooccur

beforeSeptember

30,

2010

in

order

to

qualify

for

reimbursement

from

the

TANF

EF.

Forsubsidizedemploymentprograms,costseligibleforreimbursementfromtheTANFEFincluded

subsidiestoemployerstohelpcoverthecostofwages,payrolltaxes,benefits,andtraining;thecostof

FICAandworkerscompensationtaxes;thecostofsupervisingprogramparticipantsbornebyemployers;

andtheadministrativecostofoperatingasubsidizedemploymentprogram.4Consequently,theTANFEF

enabledstatestoestablishnewsubsidizedemploymentprogramsortoexpandexistingprogramsfor

TANFeligibleindividualsandreceivereimbursementfor80percentoftheattendantcosts.

TheflexibilityofTANFfundingenablesstatestoserveawidevarietyoflowincomeindividualsthrough

subsidizedemploymentprograms.Allindividualsservedmustbelongtoafamilythatmeetsthestate

definitionof

need

in

terms

of

its

income

and

assets.

Custodial

parents

or

other

adult

caretakers

from

needyfamiliesmayparticipate,andastatemaydecidetoallownoncustodialparentsfromneedy

1TheBusinessCycleDatingCommitteeoftheNationalBureauofEconomicResearchdefinesthemostrecentrecessionashavingbegunin

December2007andendedinJune2009.NationalBureauofEconomicResearch.(n.d.).USbusinesscycleexpansionsandcontractions.

RetrievedFebruary25,2011,fromhttp://www.nber.org/cycles.html2SocialIMPACTResearchCenteranalysisofseasonallyadjusteddatafromtheU.S.BureauofLaborStatistics,CurrentPopulationSurvey.

3Enactedin1996,TANFreplacedAidtoFamilieswithDependentChildrenasAmericasprimarysourceofcashassistanceforlowincome

families.ItdramaticallyshiftedtheemphasisofAmericanwelfarepolicyfromprovidingcashassistancetomovingwelfarerecipientsintowork

byimposingworkrequirements onrecipientsoffederalassistanceandbylimitingreceiptoffederalassistancetonomorethan5years.4Specifically,theTANFEFwouldreimbursestatesfor80percentofthedifferenceinspendingfromfederalfiscalyear2007or2008(whichever

hadlowerspending)tofederalfiscalyear2009or2010.LowerBasch,E.(2010April).TANFEmergencyFund:Creatingsummerjobsforyouth.

Washington,DC:CenteronLawandSocialPolicy.(p.1).


12/108

12

familiestoparticipate.Childrenlivingwithcustodialparentsorotheradultcaretakersmayparticipate,

andstatesmaydefineachildaslessthan18yearsofageoruseabroaderdefinitionfromstatelaw.5In

sum,statesmayuseTANFfundingtoestablishsubsidizedemploymentprogramsfornoncustodial

fathers,adultchildreninneedyfamilies,andlowincomeparentswithincomeabovetheincomelimits

forotherTANFfundedbenefitsandservicesthatis,forabroadersubsetoflowincomeindividuals

thanverylowincomewomenwithchildren,thegroupmostcommonlyassociatedwithTANF.

OnlytheTANFagenciesofstates,territories,orIndiantribeswereallowedtoapplyforTANFEFfunding.

Consequently,foundations,businesses,andlocalgovernmentsthatwantedtocreatesubsidized

employmentprogramsusingTANFEFsupporthadtocooperatewithTANFagenciesinordertoapplyfor

fundingandreceivereimbursement.

DespitethepotentialforhelpingabroadcrosssectionoflowincomeAmericansincreasetheirearnings

throughsubsidizedemployment,statesseldomusedTANFfundingforsubsidizedemploymentbefore

thecreationoftheTANFEF.Asurveyofstateofficialsrevealedthatmostsubsidizedemployment

programsprecedingARRAwereoperatedonaverysmallscaleandmanyhadendedlongbeforethe

recessionhit.IntheyearimmediatelyprecedingtheadventoftheTANFEmergencyFund,onlyfive

states(California,

Hawaii,

New

York,

Pennsylvania,

and

Washington)

recorded

subsidized

employment

asaworkactivityfor100ormoreTANFrecipients.6Theseverityoftherecessionandthesubstantial

levelofreimbursementprovidedbytheTANFEF(i.e.,80percentofincreasedTANFcosts)combinedto

makesubsidizedemploymentprogramsanattractiveoptionforalleviatingunemployment.

Importantly,regulationspromulgatedbytheDepartmentofHealthandHumanServices(HHS)increased

theattractivenessoftheTANFEFasasourceofsupportforsubsidizedemployment.HHSallowedstates

tocountpublicandprivatecontributionstosubsidizedemploymentprograms,suchasgrantsfrom

foundationsorsupervisionprovidedbyemployers,asstatecontributionsthatwoulddrawdown80

percentreimbursementfromtheTANFEF.Forthepurposeofcountingthecostofemployer

supervision,HHSallowedstatestoclaimcostsequivalentto25percentofparticipantwagecosts.HHS

alsoallowedstatestocountfundingfromfoundationsandothernongovernmentalentitiesusedto

coverthecostsofrecruitingparticipantsandemployers,providingjobreadinesstrainingandothersupportiveservices,andadministeringpayroll,andtoreimbursetheseentitiesfor80percentoftheir

contributions.7TheabilitytocountprivatecontributionsenabledstateslikeIllinois,withresources

strainedbytherecession,todrawdownTANFEFfundingusingprivatecontributions.

AremarkableexpansionofsubsidizedemploymentprogramsfollowedtheestablishmentoftheTANF

EF.DespitedelaysinthepublicationofguidancefromHHSandstatebudgetcutsthatreducedthe

capacityofstatestoimplementnewprograms,39statesandtheDistrictofColumbiahadestablished

subsidizedemploymentprogramsbythetimetheTANFEFexpiredinSeptember2010.Together,these

programsprovidedapproximately260,000individualswithsubsidizedandtransitionaljobs.8

Illinoisestablished

three

subsidized

employment

programs:

Put

Illinois

to

Work

(PITW),

a

statewide

programthatplacedover27,000adultsintosubsidizedjobs;theYouthEmploymentfortheSummer

5Forexample,statesmayusethedefinitionofchildthatappliestocoverageunderaparentshealthinsurance,allowingthemtoserve

childrenolderthan18.TheU.S.DepartmentofHealthandHumanServiceshasstatedthatitconsidersage24areasonableupperboundfor

statedefinitionsofachild.LowerBasch,E.(2010April).TANFEmergencyFund:Creatingsummerjobsforyouth.Washington,DC:Centeron

LawandSocialPolicy.(p.3).6Pavetti,L.,Schott,L.,&LowerBasch,E.(2010January).Creatingsubsidizedemploymentopportunitiesforlowincomeparents:Thelegacyof

theTANFEmergencyFund.Washington,DC:CenteronBudgetandPolicyPriorities.(p.4).7LowerBasch,E.(2010April).TANFEmergencyFund:Creatingsummerjobsforyouth.Washington,DC:CenteronLawandSocialPolicy.(p.56).

8Pavetti,L.,Schott,L.,&LowerBasch,E.(2011February).Creatingsubsidizedemploymentopportunitiesforlowincomeparents:Thelegacyof

theTANFEmergencyFund.Washington,DC:CenteronBudgetandPolicyPriorities.(p.56).


13/108

13

(YES)program,whichplaced2,586youthintosubsidizedjobsinChicago;andJobStart,whichplaced

1,030adultsand488youthintotransitionaljobsinChicago.LikePITWandYES,JobStartdepended

criticallyonTANFEFfundingandwasdesignedandimplementedunderademandingtimeframein

responsetotherecession.Unliketheseprograms,JobStartwasdesignedtoprovidesupportiveservices,

andusedprivatefundingtodrawdowntheTANFEFfundingusedfortheseservices.

LocalContext

IllinoisexperiencedmoresevereunemploymentthantheUnitedStatesduringtherecessionthatbegan

inDecember2007.IneverymonthfromthebeginningoftherecessionthroughSeptember2010,the

Illinoisunemploymentrateexceededthatofthenation.AtitspeakinJanuary2010,Illinoisratewas

11.2percent,1.5percentagepointshigherthantheU.S.9TheseverityoftherecessioninIllinoisreflects

historicalconditions.Asapercentageoftotalemployment,employmentlossesinIllinoishaveexceeded

thoseintheU.S.acrossthelastdecade:whiletotalemploymentacrosstheU.S.decreasedbylessthan

onepercentbetween2000and2009,itdecreasedby6.4percentinIllinois.10

InChicago,agroupofphilanthropicfunders,nonprofitorganizations,andpublicagenciesdesigned,

implemented,and

helped

to

fund

JobStart.

Funders

contributed

the

private

funding

used

to

draw

down

TANFEFfundingforsupportiveservices.TheChicagoJobsCouncil(CJC),theChicagoDepartmentof

FamilyandSupportServices(DFSS),andtheChicagoWorkforceInvestmentCouncil(CWIC)helpedto

planandoverseeJobStart.Humanserviceagencieswithexperienceoperatingsubsidizedemployment

programsrecruitedparticipants,placedthemintosubsidizedjobs,andprovidedtrainingandsupportive

services.Priortotherecession,manymembersofthisgroupcollaboratedonOpportunityChicago,a

programtohelppublichousingresidentsfindlongtermemployment.11Theongoingrelationships

fosteredbythiscollaborationenabledthemtodesignandimplementJobStartquickly.

FollowingOpportunityChicago,anewinitiativebegantoprepareChicagossouthandwestside

neighborhoodsforthepotential2016OlympicGames.Thisinitiativepositionedsomeofthe

organizationsthat

collaborated

on

Opportunity

Chicago

to

leverage

TANF

EF

funding

for

JobStart.

In

January2008,theCityofChicagosubmitteditsbidtohostthe2016OlympicGames.Theplaninvolved

theconstructionandoperationoflargesportsvenuesinseveralsouthandwestsideneighborhoods

withhistoricallyhighunemploymentandhighproportionsoflowincomeresidents.TheChicago

CommunityTrust(CCT)andotherphilanthropicfundersformedafundatCCTtohelpthese

neighborhoodsbenefitfroma2016OlympicGames.12Calledthe2016FundforChicagoNeighborhoods

(2016Fund),itraisednearly$5milliontoresearchinvestmentopportunities,providetrainingtoprepare

neighborhoodresidentsforjobsrelatedtotheOlympics,andmakegrantstocommunityorganizations

forOlympicsrelatedactivities.13BySeptember2009,the2016Fundhadgrantednearly$2millionfor

research,planning,andotherprojects.14However,theInternationalOlympicCommitteerejected

ChicagosbidinOctober2009,leavingthe2016Fundwithoutanimmediatetargetforadditional

investment.

9SocialIMPACTResearchCenteranalysisofseasonallyadjusteddatafromtheU.S.BureauofLaborStatistics,CurrentPopulationSurvey.

10IllinoisDepartment ofEmploymentSecurity.(n.d.).Illinoischangingdemographicstructureanditsimpactonthelaborforce.Retrieved

August3,2011fromhttp://lmi.ides.state.il.us/lmr/feb_2011/feb11_3.html11

OpportunityChicago.(n.d.).Apartnershipforchange:HowOpportunityChicagohelpedcreatenewworkforcepathwaysforpublichousing

residents.Chicago:Author.(p.27).12

ThephilanthropicfundersincludedtheBoeingCompany,TheChicagoCommunityTrust,theJoyceFoundation,theJohnD.andCatherineT.

MacArthurFoundation,theMcCormickFoundation,thePolkBros.Foundation,theWieboldtFoundation,theLloydA.FryFoundationandan

anonymousdonor.13

ChicagoCommunityTrust.(2008December).FoundationsforanOlympiclegacy:The2016FundforChicagoNeighborhoods.Chicago:Author.14

ChicagoCommunityTrust.(2009September).2016FundforChicagoNeighborhoodsannouncessecondphaseofgrants.Chicago:Author.


14/108

14

SnapshotofKeyPlayersInvolvedinJobStart

U.S.DepartmentofHealthandHumanServices(HHS)

HHSadministeredtheTANFEmergencyContingencyFund(TANFEF),whichprovidedstateswith

enhancedfundingforsubsidizedemploymentandtransitionaljobsprograms.Itissuedrulesforusing

TANFEFfunding,reviewedapplicationsforfundingfromthestateTANFagencies,anddistributed

fundingtoagencieswhoseapplicationsitapproved.

IllinoisDepartmentofHumanServices(IDHS)

AsIllinoisTANFagency,IDHSappliedforTANFEFfundingfromHHSanddistributedittononprofit

entitiesthatoperatedsubsidizedemploymentandtransitionaljobsprograms.IDHSalsoworkedwith

theseentitiestohelpthemunderstandandcomplywithfederalrulesforusingTANFEFfunding.

2016FundforChicagoNeighborhoods(2016Fund)The

2016

Fund

was

created

to

help

ensure

that

neighborhoods

on

Chicago's

south

and

west

sides

would

benefitfroma2016OlympicGames.Itplayedacentralroleinfunding,designing,andmanaging

JobStart.AfterChicagolostitsbidfortheOlympicGames,the2016Fundprovided$2millioninprivate

fundingsoIDHScoulddrawdownTANFEFfundingforJobStart.2016Fundpersonnelworkedwithother

keyorganizationstodesigntheJobStartprogramandselectprogramproviders.OnceJobStartbegan

operating,the2016Fundstaffverifiedtheeligibilityofparticipantsandemployers,monitoredproviders

astheycarriedouttheprogram,receivedvouchersfromprovidersforparticipantpayrollandsupportive

servicescosts,andreimbursedprovidersforthesecosts.

ChicagoJobsCouncil(CJC)

CJCadvocatesforpublicpoliciesandprogramstohelplowincomepeoplesucceedintheworkforce.It

wasinstrumental

in

promoting

the

opportunity

to

create

transitional

jobs

presented

by

the

TANF

EF

and

incoordinatingstakeholderstoadvocateandplanforJobStart.AfterIllinoisreceivedTANFEFfundingfor

JobStart,CJChelpedrefinetheprogramdesignandkeepprovidersinformedabouttheprogram.

ChicagoWorkforceInvestmentCouncil(CWIC)

CWICmonitorspublicinvestmentineducationandtrainingacrossthecityofChicagoandprovides

guidancetocityagenciesonhowtocoordinatetheiractivities.Alongwiththe2016Fund,CJC,andDFSS,

CWICcontributedtoaworkinggroupthatdesignedtheJobStartprogram.

ChicagoDepartmentofFamilyandSupportServices(DFSS)

DFSSoverseesavarietyofworkforceandsocialservicesacrossChicago.Italsocontributedtothe

workinggroupthatdesignedtheJobStartprogram.

Grantees

Twelveprogramproviderswithexperienceoperatingsubsidizedemploymentandtransitionaljobs

programswerechosentoimplementJobStart.ResponsibilitiesincludedrecruitingJobStartparticipants,

placingthemintransitionaljobsandprovidingsupportiveservices,andhelpingthemfindunsubsidized

employment.Eachprovideroperateditsprogramaccordingtoagrantagreementwiththe2016Fund.


15/108

15

TowardJobStartandPutIllinoistoWork:ActionattheStateLevel

SoonafterChicagolostitsOlympicbid,achangeofleadershipwithinthestateshumanservicesagency,

theIllinoisDepartmentofHumanServices(IDHS),openedthewayforuseofTANFEFfundingtosupport

subsidizedemploymentprogramsinIllinois.FollowingenactmentofARRAandcreationoftheTANFEF,

astimulusworkinggroupconvenedinIllinoistoconsiderusesofTANFEFfunding.Aspartofthisgroup,

CJCadvocated

use

of

TANF

EF

funding

for

a

subsidized

employment

program;

however,

divergence

of

opinionamonggroupmembersaboutthebestuseofTANFEFfundingforestalledreleaseof

recommendationsfromthegroup,andIDHSleadershipdidnotmoveforwardonusingTANFEFfunding.

Inlate2009,GovernorQuinnappointedMichelleSaddlerasSecretaryofIDHS.Thesecretarysupported

theuseofTANFEFfundingforsubsidizedemploymentandconvenedmeetingstoidentifyresources

thatcouldcountasthestatescontributionfordrawingdownTANFEFfunding.Withareceptive

administrationatIDHSandnoimmediatetargetforadditional2016Fundinvestment,CJCworkedto

generateinterestinusingunused2016FundresourcestohelpthestatedrawdowntheTANFEFfunding

neededtosupportaTJprograminChicago.InFebruary2010,the2016Funddecidedtodevote$2.0

milliontoaTJprogramthatwouldserveresidentsofsouthandwestsideneighborhoods.This

contribution,in

combination

with

employer

supervision

valued

at

$2.6

million,

would

leverage

$18.2

millionfromtheTANFEFforatotalprogrambudgetof$20.3million.15

AlsoinFebruary2010,GovernorQuinndirectedIDHStodevelopalargescalesubsidizedemployment

programusingTANFEFfunding.IDHSwroteitsapplicationforTANFEFfundingbroadly,toincludetheTJ

programenvisionedbythe2016FundanditspartnersthatwouldbecomeJobStart,andthelargescale

subsidizedemploymentprogramthatwouldbecomePutIllinoistoWork(PITW).16InMarch2010,IDHS

submittedandreceivedapprovalforitsapplicationfromHHS.

Approximately3monthselapsedfromthetimeIDHSreceivedapprovalforTANFEFfundingandthe

timeIDHSandthe2016FundexecutedtheCommunityServicesAgreement(CSA)thatgrantedTANFEF

funding

to

the

2016

Fund

and

established

the

framework

for

the

JobStart

program.

During

this

time,

the

2016FundcommunicatedwithIDHSaboutprogramdesign,selectedJobStartproviders,and

communicatedwithprovidersabouttheprogramdesignasitdeveloped.

IDHSandthe2016FundexecutedthefinalCSAinJune2010,onlyoneweekbeforethetargetdatefor

placingparticipantsintosubsidizedemployment.JobStartwasintendedtoprovideparticipantswithup

to16weeksofwages;becausetheTANFEFwouldnotreimburseprogramexpensesafterSeptember

30,participantswouldhavetobegintheirtransitionaljobsbyJune14inordertoworkthefull16weeks.

BythetimetheCSAwasexecuted,somegranteeshadalreadystartedtheirJobStartprograms.

ThetimelineleadingfromapprovalofTANFEFfundingtoJobStartimplementationleftrelativelylittle

timeforthe2016Fundanditspartnerstoplantheprogramandcommunicateitsrulesandprocedures

tograntees.

Moreover,

the

2016

Fund

continued

to

receive

clarification

about

implementing

the

CSA

fromIDHSaftertheCSAwasexecuted.Asdescribedinsubsequentchapters,thistimelinemadeJobStart

administrationdifficultforthe2016Fundanditsgrantees.

15ChicagoCommunityTrust(finalJobStartbudget,June3,2010).Asnotedpreviously,HHSallowedstatestoclaimemployersupervisionvalued

at25percentofparticipantwagecostsasastatecontributionforthepurposeofdrawingdownTANFEFfunding.Theplanned$2.6million

employercontributiontoJobStartwasaninkindcontributionvaluedat25percentoftheplanned$10.3millionwagebudgetfortheprogram,

butwasnotaseparatesourceoffundingthatcouldhavebeenusedtofundprogramexpenses.16

Theapplicationalsoincludednonrecurrent,shorttermTANFbenefits,oneofthethreetypesofincreasedTANFexpenditureforwhichstates

couldreceivereimbursementfromtheTANFEF.


16/108

16

Staffofthe2016FundattributeddelaysinexecutingtheCSAtothedemandsthatimplementingPITW

placedonIDHS.TheyreportedthatIDHSstaffwereasattentivetoJobStartdesignandplanningas

possible,butthatthedemandsofthemuchlargerprogramdrewtheirattentionawayfromJobStartand

delayedtheirresponsestoinquiriesaboutJobStartdesignissues.

Figure1:TimelineofKeyEvents

February2009CongressenactstheAmericanRecoveryandReinvestmentAct(ARRA),whichincludestheTANF

EmergencyContingencyFund(TANFEF).

March2009

April2009

May2009

June2009

July2009

August2009

September2009

October2009 Chicagosbidforthe2016Olympicsisrejected. MichelleSaddlerisappointedDirectoroftheIllinoisDepartmentofHumanServices(IDHS).

November2009

December2009 IDHSSecretaryMichelleSaddlerconvenesmeetingsonusingTANFEFfunding.

January2010 MeetingsonusingTANFEFfundingcontinue.

February2010 GovernorQuinndirectsIDHStodevelopalargescalesubsidizedemploymentprogramusingTANFEFfunding.

March2010IDHSappliestouseTANFEFfundingforsubsidizedemploymentandtransitionaljobsprograms.TheU.S.

Department ofHealthandHumanServices(HHS)approvestheapplication.

April2010 The2016FundreleasesitsrequestforJobStartproposals.ProposalsaredueonApril30.

May2010 IDHSissuesadraftJobStartcommunityservicesagreement(CSA)tothe2016Fund. GranteesreceivenotificationthattheyhavebeenawardedJobStartgrants.

June2010

IDHSfinalizestheCSAwiththe2016Fund. The2016Fundissuesfinalgrantagreementstograntees. JobStartparticipantsmustbegintransitionaljobsbyJune14toworkthefull16weeksavailable.

July2010

August2010

September2010 AlltransitionaljobsendonSeptember30.

SubsidizedandTransitionalJobs

Withtheobjectivesofusingtemporaryjobstoprovideimmediateworkandincometolowincome

Chicagoansand,simultaneously,ofimprovingtheirlongtermemployability,JobStartfitswithinthe

umbrellaofworkforceinterventionscalledsubsidizedemploymentprograms,andwithinthecategory


17/108

17

calledtransitionaljobs(TJ)programs.Subsidizedemploymentprogramsfundthecreationoftemporary

jobsforindividualswhomightotherwisebeunemployed.Historically,theyhavebeenusedtoprovide

outofworkindividualswithincomeduringeconomicdownturns,toimproveinfrastructureorprovide

neededpublicservices,toimprovetheemployabilityandearningsofdisadvantagedindividualsby

providingworkexperienceinasupportiveenvironment,ortoachieveacombinationofthesegoals.17

Asubsetofsubsidizedemploymentprograms,TJprogramscombinetemporary,wagepayingjobswithsupportiveservicesintendedtohelpparticipantsmaintainsubsidizedemploymentandgain

employmentintheregularlabormarket.TJprogramstargetindividualswithbarrierstoemployment,

suchaslongtermwelfarereceipt,longtermunemployment,acriminalrecord,orhomelessness.18

TJprogramsmayimprovetheemployabilityofindividualswithbarrierstoemploymentthroughmultiple

avenues:

1. Individualswithlittleornoworkexperiencemaybestlearntoworkbyholdingapayingjobinasupportiveenvironmentwheretheycanmakemistakes,receiveguidance,andimprovetheir

performance.Atransitionaljoballowsparticipantstolearn,practice,andperfectcriticalsoft

skills,suchasworkplacecommunication,conflictresolution,customerservice,andetiquette,

beforeattemptingtogainandholdpermanentemploymentintheregularlabormarket.Italso

enablesprogramstafftoobserveparticipantsinarealworkenvironment,therebyhelping

staffidentifyandaddresssoftskillsdeficitsandotherissues.

2. TJprogramparticipantsmayalsoacquirehardskills,suchasclericalandadministrativeskills,proficiencywithcomputers,orvocationalskillsthatincreasetheiremployabilityintheregular

labormarket.

3. Theearnedincomeprovidedbyatransitionaljobmayhelpparticipantsmeetbasicneedsduringtheinprogramperiod,providingstabilityandimprovingskillacquisition.

4. Atransitionaljobmayenableindividualswithlimitedworkexperiencetoestablishanemploymentrecordandemployerreferences,whicharecriticaltoasuccessfuljobsearch.

TJprogramsmayalsobenefitemployersbyprovidingasourceofpotentialpermanentemployeeswith

initialtrainingandsupportprovidedbytheprogram,andbyallowingemployerstotryoutthese

potentialemployeesatnocosttothem.

AvarietyofTJprogramsoperateacrosstheUnitedStates.However,mostprogramsincludesome

combinationofthecomponentsoutlinedinFigure2.19

17Bloom,D.(2010,February).Transitionaljobs:Background,programmodels,andevaluationevidence.NewYork:MDRC.(p.4).

18AccordingtotheNationalTransitionalJobsNetwork,whichadvocatesforandprovidestechnicalassistancetoTJprograms,populationsmost

likelytobenefitfromtransitionaljobsincludelongtermwelfarerecipients,disconnectedyouth,peoplewithcriminalrecords,peoplewhoare

homeless,andrefugeesandasylumseekers.NationalTransitionalJobsNetwork.(2010,January).Transitionaljobs:Programdesignelements.

Chicago:Author.19

Kirby,G.,Hill,H.,Pavetti,L.,Jacobsen,J.,Derr,M.,&Winston,P.(2002,April).Transitionaljobs:Steppingstonestounsubsidizedemployment.

Princeton,NJ:MathematicaPolicyResearch,Inc.(TableII.2).Bloom,D.(2010,February).Transitionaljobs:Background,programmodels,and

evaluationevidence.NewYork:MDRC.(p.2122).


18/108

18

Figure2:TransitionalJobsProgramElements

Summary

Nationalandlocalcircumstancesmotivatedagroupofphilanthropicfunders,nonprofitorganizations,

andpublicagenciestoplanandimplementJobStart,anemploymentprogramwithshortrunstimulus

andlongrunemployabilitygoals.TheSeptember30,2010,deadlineforusingTANFEFfundingand

Illinoisrelativelylateapplicationforthisfundingimposedademandingtimeframewithinwhichto

recruit,train,andplaceparticipantsintotransitionaljobsandpreparethemforunsubsidized

employment.

Orientationand

Initial

Assessment

TJprogramsprovideanoverviewofprogramrulesandassesseachparticipants

skills,interests,andbarrierstoemployment.Assessmentmayhelpprogramstaff

matchparticipantswithtransitionaljobsthatfittheirinterestsandidentify

supportiveservicesthatwillhelpthemmaintaintheirtransitionaljobs.

JobReadiness

Training

Grouptrainingaboutthesoftskillsnecessarytomaintainemploymentoften

precedesplacementintransitionaljobs.Subjectscommonlycoveredinclude

appropriateworkplacebehavioranddress,jobsearchtechniques,resumewriting,

interviewing,andcomplementarylifeskills.

Subsidized

Employment

AdefiningcomponentofaTJprogram,subsidizedemploymentconsistsofatime

limited,wagepayingjobfundedbytheprogram.Mostprogramsrequire

participantstoworkbetween20and35hoursperweek,payatorslightlyabovethe

stateorfederalminimumwage,andoffer3to9monthsofsubsidizedemployment.

Academicor

HardSkills

Training

TJprogramsvaryontheextenttowhichtheyofferorrequireparticipantsto

undergobasicacademicskillstraining,trainingtowardanacademicdegreeor

credential,ortraininginajoboroccupationspecificskill.Onlyahandfulofprograms

offerpaidvocationaltrainings.

Case

Management

TJprogramsincluderegularmeetingsbetweenparticipantsandprogramstaffto

monitorparticipantsprogress,addressquestionsorproblems,andhelpparticipants

accesssupportiveservices.Programsmaysupplementthesemeetingswithgroup

casemanagementsessionsthatofferpeersupport.

Supportive

ServicesMost

TJ

programs

offer

some

combination

of

supportive

services

to

help

participants

maintainemploymentintheirtransitionaljobs.Thesemayincludeassistancewith

transportation,childcare,workrelatedclothingorequipment,medicalcare,

housing,counseling,andtreatmentofalcoholordrugabuse.

JobPlacement

andRetention

MostTJprogramsbeginofferingservicestohelpparticipantsfindunsubsidizedjobs

wellbeforethetransitionaljobends.Forthosewhofindunsubsidizedjobs,TJ

programsmayextendsupportiveservicesforalimitedtimetohelpthemmaintain

unsubsidizedemployment.


19/108

19

Neighborhoods and Participants

JobStartwasintendedtoserveparticipantsfrom13Chicago

CommunityAreaswithhistoricallyhighlevelsofunemployment

andhigh

proportions

of

poor

and

low

income

residents.

As

a

programfundedbytheTANFEF,itwasrequiredtoenrollmembers

ofneedyfamilies,definedbyIllinoisasthosewithhousehold

incomesbelow200percentofthefederalpovertylevel.

Additionally,theprogramdesigninstructedgranteestoprioritize

servingparticipantswithmultiplebarrierstoemploymentthatcan

beaddressedthroughtheintensiveservicesprovidedunder

[JobStart].ThischapterexaminestheextenttowhichJobStart

fulfilledthegoalofenrollinglowincomeindividualswithbarriers

toemploymentfromeconomicallydisadvantagedneighborhoods.

Figure3:

Residential

Addresses

of

JobStart

Participants

20

ChicagoCommunity

Areas

TheCityofChicagois

dividedinto77Chicago

CommunityAreas(CCAs).

TheJobStartprogramdesign

requiredgranteestoenroll

participantsfrom13CCAs

onthe

Citys

south

and

west

sides.ElevenoftheseCCAs

werethecommunities

targetedbythe2016Fund.

TwoCCAs(Douglasand

Oakland)wereaddedshortly

beforetheprogrambeganin

ordertocreatea

geographicallycontiguous

programarea.

Figure3showsthe

designatedCCAsandthe

residentialaddressesof

individualswhoworkedin

transitionaljobs.

20Analysisofprogramrecords.Mapreflects1,112addressesthatcouldbeplotted.


20/108

20

Figure4comparesunemploymentratesinthe13JobStartCCAswiththeunemploymentrateacrossall

otherCCAs.AcrossallJobStartCCAs,unemploymentwas14.3percent,comparedwith9.9percent

acrosstherestofChicago.InthreeJobStartCCAs(WashingtonPark,Oakland,andEnglewood),the

unemploymentrateexceeded20percent.

Figure

4:

Unemployment

Rates

in

JobStart

Chicago

Community

Areas

21

Figure5comparestheproportionofresidentslivinginpovertyandtheproportionofresidentslivingin

lowincomehouseholds(thatis,householdsbelow200percentofthepovertyline)intheJobStartCCAs

toallotherCCAs.22AcrossallJobStartCCAs,nearlyonethird(32.7percent)ofresidentslivedinpoverty,

comparedwithroughlyonefifth(20.3percent)ofresidentsacrossallnonJobStartCCAs.Inallbutone

21SocialIMPACTResearchCenteranalysisofU.S.CensusBureau20052009AmericanCommunitySurvey.

22Throughoutthissection,individualslivinginpovertyaredefinedasthosewithhouseholdincomesbelow100percentofthepoverty

threshold,andindividualslivinginlowincomehouseholdsaredefinedasthosewithhouseholdincomesbelow200percentofthepoverty

threshold.TheCensusBureauspovertythresholddiffersveryslightlyfromtheU.S.DepartmentofHealthandHumanServicespoverty

guidelines.

8.0%

9.9%

14.3%

5.7%

11.1%

11.6%

12.6%

13.6%

13.7%

15.5%

17.8%

19.1%

19.6%

20.8%

23.6%

25.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Illinois

AllnonJobStartCCAs

AllJobStartCCAs

NearSouthSide

SouthLawndale

LowerWestSide

NearWest

Side

Douglas

Kenwood

EastGarfieldPark

NorthLawndale

Woodlawn

GrandBoulevard

Englewood

Oakland

WashingtonPark

UnemploymentRate

Chicago

CommunityArea

TheAmericanCommunitySurvey(ACS),conductedannuallybytheU.S.CensusBureau,provides

estimatesofunemployment,proportionsofresidentslivinginpoverty,andproportionsofresidents

livinginlowincomehouseholdsinCensustractscorrespondingtoCCAs.

ThenumberofresidentssampledannuallybytheACSwithineachCCAistoosmalltoestimatethese

indicatorswithameaningfullevelofconfidence;however,poolingsamplesconductedoverafiveyear

periodallowstheACStoprovidemeaningfullocallevelestimates.

Thestatistics

discussed

in

this

section

were

calculated

with

ACS

survey

data

collected

from

2005

to

2009,themostrecentdataavailableforthisgeographyontheseindicators.Theseratesarenotthe

averageratesofunemployment,poverty,andlowincomestatusinCCAsbetween2005and2009;

rather,theyaresingleratescalculatedusingdatacollectedfrom2005to2009.


21/108

21

oftheJobStartCCAs(NearSouthSide),overonequarterofresidentslivedinpoverty.AcrossallJobStart

CCAs,overhalf(55.2percent)ofresidentslivedinlowincomehouseholds.Bycontrast,39.1percentof

individualsacrossallnonJobStartCCAslivedinlowincomehouseholds.

Figure5:PovertyandLowIncomeRatesinJobStartChicagoCommunityAreas23

Figure6showsCCAsbypercentageofresidentslivinginhouseholdsbelow200percentofthepoverty

threshold.DefininglowincomeCCAsasthosewith50percentormoreoftheirresidentslivingin

householdsbelow200percentofthepovertythreshold,theJobStartprogramarealargelycoincided

withlowincomeCCAs.InfourofthesixdesignatedCCAsonthewestsideandinfiveoftheseven

designatedCCAsonthesouthside,over50percentofresidentslivedinlowincomehouseholds.

23SocialIMPACTResearchCentersanalysisoftheU.S.CensusBureaus20052009AmericanCommunitySurvey5yearestimatesprogram.

12.4%

18.8%

32.7%

14.2%

25.3%

27.8%

27.9%

33.6%

34.5%

26.2%

29.7%

34.0%

44.2%

43.5%

43.8%

52.6%

16.2%

20.3%

22.5%

9.2%

14.7%

13.6%

17.7%

18.8%

21.3%

31.9%

28.7%

26.3%

22.5%

23.6%

24.8%

21.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Illinois

AllnonJobStartcommunities

AllJobStartcommunities

NearSouthSide

Kenwood

NearWestSide

Douglas

GrandBoulevard

Woodlawn

SouthLawndale

LowerWestSide

Oakland

EastGarfieldPark

Englewood

NorthLawndale

WashingtonPark

PercentageofIndividualsBelow200PercentoftheU.S.CensusBureauPovertyThreshold

ChicagoComm

unityArea

Below100%Poverty

100%to199%Poverty


22/108

22

Figure6:CCAsbyPercentageofIndividualsBelow200PercentofthePovertyThreshold24

TheJobStartprogramareaalsoincludedsomeCCAswithrelativelylowproportionsofresidentslivingin

lowincomehouseholdsandsimultaneouslyexcludedsomenearbyCCAswithrelativelyhighproportions

24SocialIMPACTResearchCentersanalysisoftheU.S.CensusBureaus20052009AmericanCommunitySurvey5yearestimates.Mapreflects

1,112addressesthatcouldbeplotted.


23/108

23

ofresidentslivinginlowincomehouseholds.25Givenaprogramthatprovidesearnedincome

opportunitiesincertainlowincomeareasandexcludesotherlowincomeareasborderingtheprogram

area,onemightpredictthatmanyindividualsfromlowincomeborderareaswouldattempttoenrollin

theprogram.Indeed,granteeprojectdirectorsreportedthatmanyindividualsjustoutsidethe

JobStartprogramareaexpressedinterestinJobStart,andthattheycouldhaveenrolledmanymore

participantsintotheprogramintheabsenceofthespecificCCAresidencyrequirement.

JobStartParticipants

AsaTANFfundedprogram,JobStartservedthreecategoriesofparticipants:custodialparentsandother

residentcaretakersages18andover,noncustodialparents,andyouthages16to21livingwithadult

caretakers.The2016Fundrequiredgranteestooperateseparateprogramsforadultcaretakersand

noncustodialparents,ontheonehand,andyouthlivingwithadultcaretakersontheother.Grantees

couldsettransitionaljobwagesforadultprogramparticipantsbetween$8.25(theIllinoisminimum

wageasofJuly1,2010)and$10.00andwererequiredtopayallyouthprogramparticipants$8.25per

hour;otherwise,granteeswererequiredtoprovidethesameessentialservicestoadultandyouth

programparticipants.Granteescouldalsoenrollyouthparticipantsinadultprogramssolongasthey

metthe

TANF

eligibility

requirements.

Of

the

12

JobStart

grantees,

eight

operated

only

adult

programs,

twooperatedonlyyouthprograms,andtwooperatedbothtypesofprograms(Table6).Becauseyouth

programsattemptedtoengageadifferentpopulationthanadultprograms(thatis,highschoolor

collegeagedyouth),dataforadultandyouthparticipantsarepresentedseparately.

PersonalandHouseholdCharacteristics

Table1showsthepersonalcharacteristicsofJobStartparticipants.Themajorityofparticipantswere

young,female,andAfricanAmerican.

Theaverageagesofadultandyouthprogramparticipantswere28and17,respectively. Themajorityofparticipants(65.4percent)werefemale,withagreatershareoffemalesamong

adults(69.0

percent)

than

among

youth

(57.9

percent).

Theoverwhelmingmajorityofparticipants(95.8percent)wereAfricanAmerican,reflectingthecompositionoftheJobStartCCAs.26

Morethanhalf(55.3percent)ofadultprogramparticipantshadearnedonlyahighschooldegreeorGED,andslightlymorethanonequarter(27.7percent)hadnotearnedahighschool

degreeorGED.Only2.4percenthadearnedanassociatesorbachelorsdegree.Consistentwith

theprogramobjectiveofengaginghighschoolagedyouth,78.9percentofyouthprogram

participantsreportedthattheyhadnotearnedahighschooldegreeorGED.

Amongadultprogramparticipants,62.2percentreportedthattheywereeligibleforJobStartasparentsoradultcaretakerscaringforchildreninthehome,while18.1percentreportedthat

theywere

eligible

as

noncustodial

parents

of

minor

children.

27

25Forexample,theprogramareaincludedNearSouthSide(23.4percentlowincome)butexcludedArmourSquare(52.8percentlowincome),

whichbordersNearSouthSideandtwootherdesignatedCCAs.Onthewestside,theprogramareaincludedNorthLawndale(68.6percentlow

income)andEastGarfieldPark(66.7percentlowincome)butexcludedWestGarfieldPark(65.5percentlowincome)andHumboldtPark(62.7

percentlowincome),whichborderoneorbothoftheaforementionedJobStartCCAs.Onthesouthside,theprogramareaincludedEnglewood

(67.0percentlowincome)butexcludedFullerPark(64.5percentlowincome),NewCity(64.1percentlowincome),WestEnglewood(70.3

percentlowincome),andGreaterGrandCrossing(55.4percentlowincome),allofwhichborderEnglewood.SocialIMPACTResearchCenters

analysisoftheU.S.CensusBureaus20052009AmericanCommunitySurvey5yearestimatesprogram.26

Nineofthe13JobStartneighborhoodsaremajorityAfricanAmerican,withsevenoftheseneighborhoodsmorethan90percentAfrican

American.Twoofthe13JobStartneighborhoodsaremajorityHispanic.SocialIMPACTResearchCentersanalysisoftheU.S.CensusBureaus

20052009AmericanCommunitySurvey5yearestimatesprogram.


24/108

24

Table1:PersonalCharacteristicsandHouseholdCompositionofJobStartParticipants28

Adults Youth All

Participantsa 1,030 488 1,518

Maleb 31.0% 42.1% 34.6%

Femaleb

69.0% 57.9%

65.4%

Averageagec 28 17 24

AfricanAmericand 94.8% 97.9% 95.8%

Whited 0.5% 1.6% 0.9%

Otherd 4.7% 0.4% 3.3%

HispanicorLatinoe 7.4% 2.1% 5.1%

LessthanahighschooldegreeorGEDf 27.7% 78.9% 44.8%

HighschooldegreeorGEDf 55.3% 13.9% 41.5%

Somecollegef 14.7% 7.0% 12.1%

Associate'sorbachelor'sdegreef 2.4% 0.2% 1.7%

Averagefamily

sizeg

3.5 4.2

3.7

Caringforaminorchildinthehomeh 62.2% 5.3% 43.6%

Noncustodialparentofaminorchildi 18.1% 1.1% 12.5%

Youthj 29.2% 97.3% 51.4%

Averagemonthlyhouseholdincomek $609 $1,127 $760

Householdhasanadditionalearnerl 10.9% 37.8% 17.5%

aAllparticipantsworkedatleastonehourinatransitionaljobaccordingtoprogramrecords.

bN=1,022adults,484youth.

cN=1,023adults,

478youth.dN=1,023adults,486youth.

eN=666adults,486youth.

fN=962adults,483youth.

gN=992adults,458youth.

hN=978adults,

475youth.iN=978adults,474youth.

jN=979adults,475youth.

kN=865adults,355youth.

lN=774adults,254youth.

Nearlyonefifthofadultparticipantsandnearlyhalf(48.2percent)ofmaleadultprogramparticipants

werenoncustodial

parents.

29

Low

income

noncustodial

fathers

are

often

outside

of

social

and

workforce

developmentsystemsintheUnitedStates,andpriorprogramsemphasizingservicestohelp

noncustodialparentsgainemploymenthavefounditdifficulttorecruitparticipantsfromthis

population.30ThissuggeststhatJobStartwasrelativelysuccessfulinengaginglowincomeand

noncustodialmalesinemployment.

AveragehouseholdincomereportedbyadultprogramparticipantsuponentryintoJobStart,including

earnedandunearnedincome(e.g.,publicbenefits),was$609permonth,equivalentto$7,308peryear.

GiventhataveragefamilysizeofaJobStartparticipantwasfourandthatthefederalpovertyguideline

forafamilyoffourwas$22,050in2010,thetypicaladultparticipanthouseholdlivedwellbelowpoverty

atthetimeheorsheenteredJobStart.31Only10.9percentofadultparticipantsand37.8percentof

27AsshowninTable1,29.2percentofadultprogramparticipantsreportedthattheywereeligibleforJobStartasyouthages16to21.The

percentagesofadultparticipantswhoclaimedeligibilityascaringforaminorchildinthehome,asthenoncustodialparentofaminorchild,and

asyouthages16to21sumtomorethan100becauseaparticipantcouldbelongtomorethanonecategorysimultaneously.Forexample,a21

yearoldindividualcaringforaminorchildinalowincomehouseholdwouldbelongtothefirstandthirdcategories.Thepercentageofadult

participantswhoreportedthattheywereeligibleasyouthages16to21mayberelativelyhighbecausegranteescouldenrollyouthintheir

adultprograms,solongastheseyouthwereTANFeligible.28

AnalysisofJobStartprogramrecords.29

N=301malesinadultprogramswhoreportedcustodialornoncustodialparentstatus.30

Martinson,K.,Trutko,J.,&Strong,D.(2000December).Servingnoncustodialparents:Adescriptivestudyofwelfaretoworkprograms.

Washington,DC:UrbanInstitute.(p.35).Trutko,Johnetal.(1999July).EarlyimplementationoftheWelfaretoWorkgrantsprogram.

Washington,DC:TheUrbanInstitute.(p.20).31

U.S.DepartmentofHealthandHumanServices.(2011January).TheHHSpovertyguidelinesfortheremainderof2010(August2010).

RetrievedJune29,2011,fromhttp://aspe.hhs.gov/poverty/10poverty.shtml


25/108

25

youthparticipantsreportedthattherewasanadditionalearnerintheirhouseholds,suggestingthata

substantialsharewerethesoleearnersintheirhouseholdsatthetimeofJobStartentry.

PublicBenefitsReceipt

Table2showspublicbenefitsreceiptasreportedbyParticipantSurveyrespondents.Theincidenceof

publicbenefits

receipt

was

markedly

lower

among

youth

respondents

than

among

adult

respondents.

Whilelessthanonequarter(21.7percent)ofadultsreceivednopublicbenefits,nearlyhalf(49.1

percent)ofyouthreceivednopublicbenefits.Themajorityofadultrespondents(78.3percent)received

somepublicbenefitsatthetimetheyenrolledinJobStart;21.1percentreceivedtwopublicbenefits,

and14.9percentreceivedthreeormore.Themajorityofadultrespondents(63.4percent)received

SupplementalNutritionAssistanceProgram(SNAP)benefits,andslightlylessthanonethird(31.7

percent)receivedmedicalassistance;only21.1percentreceivedTANF.

Table2:PublicBenefitsReceiptofParticipantSurveyRespondents32

Adults Youth All

SNAP 63.4% 31.6% 55.0%

Medicaidor

medical

card

31.7% 36.8%

33.0%

TANF 21.1% 12.3% 18.8%

UnemploymentInsurance 11.8% 0.0% 8.7%

SSI 3.1% 5.3% 3.7%

Twobenefits 21.1% 24.6% 22.0%

Threeormorebenefits 14.9% 5.3% 12.4%

None 21.7% 49.1% 28.9%

EmploymentHistoryTable3showsemploymenthistorycharacteristicsasreportedbyParticipantSurveyrespondents.Most

adultrespondents(89.9percent)hadheldajobbeforeJobStart.Amongthem,nearlyoneinfour(23.4percent)hadneverheldajoblongerthanayear,and76.5percenthadheldajobformorethanone

year.Adultswhohadheldapriorjobhadbeenunemployedforanaverageof1.3yearsatthetimethey

enrolledinJobStart.Intheirmostrecentpriorjobs,nearlyhalf(47.0percent)earnedlessthan$9.00per

hour,and62.0percentearnedlessthan$10.00perhour.Only18.0percentofadultswhohadhelda

priorjobearned$12.00perhourormoreintheirmostrecentpriorjob.

Themajorityofyouthsurveyrespondents(76.5percent)hadalsoheldajobbeforeJobStart;however,a

higherproportionhadheldajobforoneyearorless(77.7percentcomparedto23.4percentofadult

surveyrespondents),andalowerproportionhadheldajobformorethanayear(22.2percent

comparedto76.5percentofadultsurveyrespondents).Youthrespondentswhohadheldajobreported

earninglower

wages

than

adults

in

their

most

recent

prior

jobs:

the

overwhelming

majority

(84.6

percent)reportedearninglessthan$9.00perhour.

Notably,mostsurveyrespondentsreportedleavingtheirmostrecentjobsforinvoluntaryreasons,often

relatedtoeconomiccircumstancesoutsidetheirimmediatepersonalandfamilysituations.Amongadult

respondents,57.8percentreportedleavingtheirjobsbecausetheywerelaidoff,becausetheirjobs

weretemporaryorseasonal,orbecauseofabusinessclosure.Bycontrast,only14.4percentreported

32AnalysisofJobStartParticipantSurveyresponses.N=161adultsand57youth.Allrespondentsworkedatleast1hourinatransitionaljob

accordingtoprogramrecords.


26/108

26

thattheyleftbecausetheywerefiredorthattheyleftvoluntarily.Therelativelyhighshareof

respondentswhoreportedleavingtheirmostrecentjobforinvoluntaryeconomicreasonsmayreflect

thelingeringeffectsoftherecessionthatbeganin2007.

Table3:EmploymentHistoryCharacteristicsofParticipantSurveyRespondents33

Adults Youth

AllWasparticipanteveremployedbeforeJobStart

a

Everemployed 89.9% 76.5% 86.7%

Longestperiodthatparticipanthasheldajobb

Lessthan6months 11.2% 44.4% 18.4%

6monthsto1year 12.2% 33.3% 16.8%

Morethan1yearbutlessthan3years 35.7% 22.2% 32.8%

3ormoreyears 40.8% 0.0% 32.0%

AverageunemploymentspellpriortoJobStartc

Yearsunemployed 1.3 1.2 1.3

Wagein

job

that

participant

held

prior

to

JobStart

d

Lessthan$9.00 47.0% 84.6% 54.8%

$9.00to$9.99 15.0% 7.7% 13.5%

$10.00to$10.99 16.0% 7.7% 14.3%

$11.00to$11.99 4.0% 0.0% 3.2%

$12.00ormore 18.0% 0.0% 14.3%

ReasonwhyparticipantlefthisorherjobpriortoJobStarte

Laidoff 36.7% 16.7% 32.5%

Temporaryorseasonalemployment 14.4% 33.3% 18.4%

Fired 12.2% 0.0% 9.6%

Businessclosed

6.7% 12.5%

7.9%

Returnedtoschool 4.4% 8.3% 5.3%

Medicalissue 6.7% 0.0% 5.3%

Moved 3.3% 4.2% 3.5%

Leftvoluntarily 2.2% 4.2% 2.6%

Caringfordependent 0.0% 0.0% 0.0%

Incarcerated 1.1% 0.0% 0.9%

Transportationproblem 0.0% 4.2% 0.9%

Other/Unknown 12.2% 16.7% 13.2%aN=109adults,34youth.

bN=96adults,26youth.

cN=96adults, 24youth.

dN=98adults, 25youth.

eN=90adults,24youth.

BarrierstoEmployment

Table4showschallengestofindingsteadyemploymentasreportedbyParticipantSurveyrespondents.

Table5showstheapproximateshareofparticipantswithcertainbarrierstoemploymentasreportedby

GranteeStaffSurveyrespondents.Together,thesedataprovideageneralpictureofbarriersto

employmentthatJobStartparticipantsfaced.

33AnalysisofJobStartParticipantSurveyresponses.Allrespondentsworkedatleast1hourinatransitionaljobaccordingtoprogramrecords.


27/108

27

Theincidenceandtypeofchallengesreportedby

ParticipantSurveyrespondents(Table4)differedbetween

participantsinadultandyouthprograms.Only15.5

percentofadultprogramrespondentsreportedno

challengesfindingsteadyemployment.Bycontrast,47.6

percentofyouthprogramrespondentsreportedno

challenges.Themostcommonchallengesreportedbyadultswerelackofjobopeningsforwhichtheywere

qualified(33.1percent),havingacriminalrecord(31.1

percent),balancingworkorfamilyobligationsotherthancaringforasickordisabledrelative(18.9

percent),lackoftransitfareorgasmoney(17.6percent),andthatemployerswouldnothirethem

becausetheydidnothaveahighschooldiplomaorGED(16.2percent).Overonethird(38.5percent)of

adultsreportedtwoormorechallengestofindingsteadyemployment.Aswiththeadults,themost

commonchallengereportedbyyouthparticipantswaslackofjobopeningsforwhichtheywere

qualified(38.1percent).Beyondthischallenge,thenumberofyouthprogramparticipantsreporting

otherchallengeswastoosmalltomakemeaningfulgeneralizationsaboutallyouthparticipants.

Table4:

Challenges

Finding

Steady

Employment

as

Reported

by

Participant

Survey

Respondents34

Adult Youth All

TherewerenojobopeningsIwasqualifiedfor 33.1% 38.1% 34.2%

Ihaveacriminalrecord 31.1% 0.0% 24.2%

Balancingworkorfamilyobligationsotherthancaringforasick/disabledrelative 18.9% 9.5% 16.8%

Ididn'thavetransitfareorgasmoney 17.6% 11.9% 16.3%

Employerswon'thiremebecauseIdon'thaveahighschooldiplomaorGED 16.2% 4.8% 13.7%

Idon'thaveanyemploymentreferences 8.1% 14.3% 9.5%

Icouldn'tfindoraffordchildcare 10.1% 0.0% 7.9%

Iamcaringforasickordisabledchild 4.7% 2.4% 4.2%

Idon't

have

an

address

or

stable

place

to

stay 2.7%

7.1%

3.7%

Ihaveadisability 2.7% 2.4% 2.6%

Iwasinanabusiverelationshipthatdisruptedwork 3.4% 0.0% 2.6%

EmployerrequiredadrugtestthatIcouldn'tpass 2.0% 2.4% 2.1%

Ididn'thaveanID 1.4% 2.4% 1.6%

Ihavetroublewithreading 0.7% 2.4% 1.1%

Twochallenges 22.3% 16.7% 21.1%

Threechallenges 10.1% 9.5% 10.0%

Fourormorechallenges 6.1% 2.4% 5.3%

Ihavenotfacedanychallenges 15.5% 47.6% 22.6%

Barrierstoparticipantsemploymentcommonlyreportedbygranteestaff(Table5)includedunmet

needfortransportation,nopriorworkexperience,pooroveralljobskills,poorinterpersonalskills,no

highschooldiplomaorGED,acriminalrecord,andunmetneedforchildcare.Overonequarterof

granteestaffreportedthatabouthalf,most,orallparticipantshadthesebarriers.Arelativelylow

proportionofgranteestaffreportedthatparticipantshadotherbarrierstoemployment;however,some

staffreportedthattheiragenciesdidnotassessforthesebarriers.Forexample,26.2percentreported

34AnalysisofJobStartParticipantSurveyresponses.N=148adultparticipantsand42youthparticipants.Allrespondentsworkedatleast1

hourinatransitionaljobaccordingtoprogramrecords.

Themostsignificantchallenge

wasteachingworkethicstoa

groupofyoungadultsthathad

neverhad

jobs

before.

JobStartEmployer


28/108

28

thattheydidnotassessforamentalhealthdisorder,19.0percentreportedthattheydidnotassessfor

aphysicalhealthproblem,and17.5percentreportedthattheydidnotassessfordomesticviolence.

Table5:ProportionofJobStartParticipantswithBarrierstoEmploymentasReportedbyGranteeStaff

SurveyRespondents35

None Afew Abouthalf Most All Didnotassess

Unmetneedfortransportationa 20.9% 18.6% 18.6% 18.6% 16.3% 0.0%

Nopriorworkexperiencea 0.0% 44.2% 27.9% 27.9% 0.0% 0.0%

Pooroveralljobskillsa 7.0% 37.2% 20.9% 20.9% 2.3% 2.3%

Poorinterpersonalskillsa 11.6% 27.9% 18.6% 18.6% 2.3% 0.0%

NohighschooldiplomaorGEDa 4.8% 45.2% 11.9% 11.9% 7.1% 0.0%

Criminalrecordb 26.2% 35.7% 14.3% 14.3% 2.4% 7.1%

Unmetneedforchildcarea 27.9% 37.2% 11.6% 11.6% 4.7% 2.3%

Unmetneedforhousingb 50.0% 28.6% 9.5% 9.5% 0.0% 4.8%

Unmet

need

for

other

dependent

care

b

35.7% 33.3% 7.1% 7.1%

0.0%

14.3%Alcoholordrugdependence

c 36.6% 31.7% 4.9% 4.9% 0.0% 14.6%

Mentalhealthdisorderb 47.6% 23.8% 0.0% 0.0% 0.0% 26.2%

Physicalhealthproblemb 57.1% 19.0% 0.0% 0.0% 0.0% 19.0%

Experienceddomesticviolenced 42.5% 37.5% 0.0% 0.0% 0.0% 17.5%

aN=43.

bN=42.

cN=41.

dN=40.

TherelativelyhighfrequencyofcriminalbackgroundsamongJobStartparticipantsisconsistentwithan

earlierstudysuggestingthatalargeproportionofexprisonersreturnedtoneighborhoodsonChicagos

southandwestsides.Of246exprisonersinthestudy,54percentreturnedtojust7ofthe77CCAs.

TheseincludedNorthLawndaleandEastGarfieldPark,twoCCAsintheJobStartprogramarea,andfour

CCAsborderingtheJobStartprogramarea.36Havingacriminalrecordmayrepresentaseriouschallenge

tounsubsidized

placement

for

TJ

program

participants.

Many

employers

use

criminal

background

checks

toinformhiringdecisions,potentiallyexcludingindividualswithacriminalbackgroundfrom

employmentinawidevarietyofjobsandindustries.37

Summary

JobStartsucceededinenrollingparticipantswithpronouncedeconomichardshipfromeconomically

disadvantagedChicagoneighborhoods.TheParticipantandGranteeStaffSurveyresponsesindicatethat

substantialproportionshadbarrierstoemployment,includinglackofeducationalattainment,poorjob

andinterpersonalskills,criminalrecords,andunmetneedsfortransportationandchildcare.The

followingchapterexamineshowgranteesrecruitedandtrainedtheseparticipants,placedand

supported

them

in

transitional

jobs,

and

prepared

them

for

unsubsidized

employment.

35AnalysisofJobStartGranteeStaffSurveyresponses.Allrespondentsselfidentifiedashavingworkedonprovidingcasemanagement.

36Visher,C.,&Farrell,J.(2005,September).Chicagocommunitiesandprisonerreentry.Washington,DC:UrbanInstitute.

37Rodriguez,M.,&Emsellem,M.(2011,March).65millionneednotapply:Thecaseforreformingcriminalbackgroundchecksfor

employment.NewYork:NationalEmploymentLawProject.


29/108

29

Implementation

The2016Fundcontractedwith12granteestoadministerJobStart.

ThischapterinvestigateshowgranteesimplementedtheJobStart

programdesign,

including

the

services

they

provided

to

participants,theemployerstheyusedtoprovidetransitionaljobs,

andthechallengestheyfacedoperatingtheirprograms.

Grantees

The2016Fundselectedgranteesthroughacompetitiveprocessthatweighedtheexperienceand

capacityofprospectivegrantees.FromalistofworkforcedevelopmentagenciesprovidedbyCJC,32

agencieswereinvitedtoapplyforagranttooperateanadultprogram.38Reviewersconvenedbythe

2016Fundconsideredtheexperienceofagencieswithsubsidizedandtransitionalemployment

programsandwiththetypeofhardtoemployindividualsJobStarttargeted;agencyrelationshipswith

employers;the

feasibility

and

comprehensiveness

of

their

plans

for

recruitment,

assessment,

job

readinesstraining,andcasemanagement;andtheadministrativecapacitiesofagenciesandthe

qualificationsoftheirstaffs.Fromthe18agenciesthatappliedtooperateanadultprogram,10grantees

werechosen.Youthprogramgranteeswereselectedfromagencieswiththecapacitytoserveahigh

numberofyouthparticipants,asdemonstratedbytheirperformanceimplementingARRAyouth

programsintheprecedingsummer.Outoffiveagenciesthatappliedtooperateyouthprograms,four

werechosen.

Table6liststheJobStartgrantees,othersubsidizedandtransitionaljobsprogramstheyhaveoperated,

andpublicfundingsourcestheyusetosupportworkforcedevelopmentprogramming.Allgranteeshad

experienceoperatingsubsidizedortransitionalemploymentprograms,andmanyhadexperienceusing

severalofthemajorstateandfederalfundingsourcesavailableforworkforcedevelopment.Grantee

projectdirectors

reported

that

this

experience

facilitated

start

up

of

JobStart

programs.

SevengranteesoperatedPutIllinoistoWork(PITW)programscontemporaneouslywithJobStart.As

programssupportedbyTANFEFfunding,JobStartandPITWenrolledcustodialparentsorguardians,

noncustodialparents,oryouthages16to21fromhouseholdswithincomesbelow200percentofthe

federalpovertylevel.PITWbeganenrollingparticipantsoveramonthbeforeJobStartandwasextended

afterSeptember30,2010.

TheChicagoHousingAuthority(CHA)subcontractedwith10agenciesthatrunitscasemanagement

systemtooperateJobStart.TwooftheseagenciesCentersforNewHorizonsandHeartlandHuman

CareServiceswerealsodirectJobStartgrantees,meaningthattheyhadcontractswiththe2016Fund

andsubcontracts

with

CHA

to

serve

JobStart

participants.

CHA

also

subcontracted

with

Centers

for

New

HorizonsandHeartlandHumanCareServicestooperateitsPITWprogram.

38ChicagoCommunityTrust(JobStartprogramdescription,n.d.).


30/108

30

Table6:JobStartGrantees39

Name

Subsidizedand

transitionaljob

programexperiencea

Publicfundingused

forworkforce

developmentb

Adultslots YouthslotsPITW

subcontractorc

Initial Final Initial Final

AlternativeSchools

NetworkIllinois

YES,

Youth

ReadyChicagoDCEO,

TANF,

WIA

206

80

Yes

AssociationHouseof

Chicago

OwnTJprogram CDBG,CSBG,WIA 32 42 No

CentersforNew

Horizons

TJforCHA,TJforIDHS CDBG,CHA,,DCEO,

TANF

50 70 Yes

CentralStatesSER TJforCHA,SCSEP CDBG,CHA,TANF,

WIA

125 174 Yes

ChicagoHousing

Authority

OwnTJprogram

operatedby

subcontractors,Youth

ReadyChicago

HUD 500 600 900 500 Yes

HeartlandHumanCare

Services

TJforCHA,TJforIDHS CHA 75 98 Yes

InspirationCorporation InspirationKitchens

(ownTJprogramfor

foodservice)

CDBG,CSBG,HUD

WIA

25 30 No

NationalAbleNetwork SCSEP CDBG,TAA,TANF,

WIA

90 138 No

OAI,Inc.

Greencorps

(TJ

for

CityofChicago),

Youthbuild(TJforU.S.

DepartmentofLabor),

Communitree(ownTJ

program)

CDBG,TANF,

WIA 42 42

No

PhalanxFamilyServices YouthReadyChicago CDBG, TANF,WIA 100 140 30 45 Yes

SaferFoundation OwnTJprogram CDBG,WIA 20 20 No

WestsideHealth

Authority

IllinoisYES,Youth

ReadyChicago

CDBG,TANF 75 175 Yes

aIllinoisYES:IllinoisYouthEmploymentforSummer;SCSEP:SeniorCommunityServiceEmploymentProgramfundedbytheU.S.Departmentof

Labor.bCDBG:CommunityDevelopmentBlockGrant,CSBG:CommunityServiceBlockGrant,DCEO:IllinoisDepartment ofCommerceand

EconomicOpportunity,TAA:TradeAdjustmentAssistance,WIA:WorkforceInvestmentAct.cSocialIMPACTResearchCenter.(2010,October).

PutIllinoistoWorkevaluation:Anearlylook.Chicago:Author.

39Analysisofprojectdirectorsurveys,projectdirectorinterviews,andfinalgrantagreementswiththeChicagoCommunityTrust.


31/108

31

ProgramStartUp

Asnotedpreviously,granteeshadlessthan1monthbetweenthetimetheywerenotifiedthattheyhad

receivedaJobStartgrantandJune14,thedateonwhichparticipantswouldhavetobegintheir

transitionaljobs,inordertoworkthefull16weeksofsubsidizedemploymentavailable.Granteesmet

thisdemandingtimelineindifferentways.

Oneagencybeganenrollingparticipantsandconductingjobreadinesstrainingbeforereceiving

notificationthatithadbeenawardedagrant.Thegranteesprojectdirectorrealizedthattheagency

wouldhavetoabsorbthecostofoperatingaJobStartprogramifitdidnotreceiveagrant;however,the

agencyassumedtheriskinordertoenrollandplaceparticipantsinsubsidizedemploymentassoonas

possibleandtoreceivetheplacementfeesforasmanyparticipantsaspossible.Thegranteestartedits

JobStartprogramwithexistingstaff,delayingnewhiringforJobStartuntilafternotificationthatithad

beenawardedagrant.Thisgranteewasalsoanexperiencedworkforceprogramproviderwithsome

experienceimplementingprogramswithoutconfirmedfunding.Thesefactorsmayhavemadetheriskof

startingJobStartwithoutconfirmedfundingmoreacceptable.

Another

grantee

began

devoting

substantial

staff

time

to

planning

for

JobStart

before

notification

that

it

hadbeenawardedagrant.Italsoestablishedanagreementwithatransitionaljobemployerand

modifiedoneofitsCommunityDevelopmentBlockAgreementgrantstoallowparticipantsinanother

program,whowerepaidthroughthatgrant,toworkasJobStartstaffattheworksite.Incontrast,athird

granteecouldnotbeginimplementingitsJobStartprogramevenafternotificationthatithadbeen

awardedagrant.ThisagencyhadtoseekapprovalfromitsboardofdirectorstoaccepttheJobStart

grantitreceivedandhadtomodifyitscontractswithotheragenciestoincludeJobStartexpectations

beforeitcouldbegintoimplementJobStart.

MostgranteeshirednewstaffandrestructuredtheirexistingstaffstoimplementJobStart.Seven

granteesreportedhiringnewfulltimestaff,andfouralsoreportedhiringnewparttimestaff.Common

restructuringactionsincludedreassigningcasemanagers,programmanagers,andadministrativestaff

fromother

programs

and

distributing

JobStart

tasks

to

staff

who

usually

worked

on

other

programs.

ExperienceoperatingaTJprogramorajobreadinessandplacementprogramforTANFrecipients

facilitatedstartupofJobStartprograms.AgranteeprojectdirectorwhoseagencyoperatedaTJ

programforTANFrecipientsstatedthatthisprogramwasverysimilartoJobStartandthatexperience

withthepriorTJprogramhadfamiliarizedthedirectorsagencywithrequirementsforservingTANF

recipients.Anotherprojectdirectorstatedthatthedirectorsagencyhadacquiredinsightintotheneeds

ofTANFrecipientsbyoperatingajobreadinessandplacementprogramforTANFrecipients.Athird

projectdirectorexplainedthatexperienceoperatingsummeryouthprograms,aswellasjobreadiness

andplacementprogramsforTANFandSNAPrecipients,enabledtheagencytorapidlydistribute

informationaboutJobStart,recruitparticipantsandemployers,anddetermineparticipanteligibility.

OneprojectdirectorrelatedtheimportanceofTJprogramexperiencetopayrolladministration,a

criticalfunctionforaprogramthatpaysparticipantwagesandemploymenttaxes.Priorknowledgeof

theTJprogrammodelenabledthedirectortocommunicateeffectivelywiththeagencyspayroll

department,andtheexperienceandsophisticationofthepayrolldepartmentfacilitatedJobStart

implementation.AgranteewitharelativelysmallTJprogramusedthisprogramsstructure,staff,and

employerstoserveJobStartparticipants,modifyingtheexistingprogramwhennecessarytomeet

JobStartprogramrequirements.TheagencysprojectdirectorstatedthatoperatingaJobStartprogram

wouldhaveprovenmuchmoredifficultwithouttheextantTJprogramstructure.


32/108

32

RecruitmentandEligibility

Todemonstratetheeligibilityofallparticipantstheyrecruited,granteeswererequiredtocollectcopies

ofdocumentsshowingage,address,householdcomposition,householdincome,andauthorizationto

workintheUnitedStatesforeachparticipant.40Beforeplacingaparticipantinsubsidizedemployment,

granteeswererequiredtosubmitthesedocumentsandreceiveapprovalfortheparticipantfrom2016

Fundstaff.

This

condition

effectively

required

2016

Fund

staff

to

review

documents

for

all

JobStart

participantswhowouldentersubsidizedemployment.

WithlittletimebetweenawardnotificationandJune14,mostgranteesrecruitedJobStartparticipants

fromamongclientstheywerealreadyservinginotherprogramsandbyencouragingJobStartrecruitsto

talktoothersaboutJobStart.Themostcommonlyreporteddifficultyregardingrecruitmentand

eligibilitywasrecruitingfromthe13designatedCCAs.Severalgranteesreportedtheycouldhave

recruitedmoreparticipantsiftheywereallowedtoenrollresidentsfromoutsidethedesignatedCCAs.

Figure7showsmeansofrecruitmentreportedbyGranteeStaffSurveyrespondentswhoworkedon

recruitingparticipants.Amongthesestaffpeople,90.7percentreportedthattheiragenciesasked

clients

they

were

already

serving

to

participate.

By

contrast,

less

than

40

percent

reported

that

their

agenciesusedothermeansofrecruitment.

Figure7:MeansofRecruitingJobStartParticipantsasReportedbyGranteeStaffSurveyRespondents41

40Acceptabledocumentsincluded:aSocialSecuritycardorprintoutfromtheSocialSecurityAdministration;astateIDordriverslicenseto

showageandaddress;abirthcertificate,courtdocuments,publicbenefitsrecord,childsupportrecords,orschoolrecordstoshowhousehold

composition;SNAPorMedicaiddocumentsorarecen

JobStart Full Report

Documents

Transcript of JobStart Full Report