Pathways

Back to Work Act: Getting More Americans Back to Work Through Employment, Education & Training
July 2013

The House of Representatives and the Senate introduced the Pathways Back to Work Act (H.R. 2770; S.B. 1383) modeled on provisions in the Presidents FY 2014 budget request. The bill would create work and educational opportunities for long-term Millions of Americans are unemployed workers and low-income adults and youth. The provisions of Unemployed the Pathways Back to Work Act include: Nearly 2 2 million $8 billion for subsidized employment and supportive services Americans are for low-income adults and those who are long-term unemployed and unemployed. Governors would have the option of administering underemployed. the program through Temporary Assistance for Needy Families (TANF) agencies or local workforce boards under the Workforce The long-term Investment Act or a combination of the two. unemployed account for 36 percent of the unemployed. $2.5 billion for summer and year-round employment opportunities youth ages 16-24, who are neither employed The jobless rate nor in school. The bill would encourage local workforce boards to remains elevated at create employment opportunities in emerging or in-demand over 7 percent. occupations and to provide year-round youth participants with education and training leading to industry-recognized credentials. Millions of Americans are Chronically Unemployed $2 billion in competitive grants for a range of work and learning opportunities that help low-income adults and youth Over 700,000 obtain education and training leading to jobs and credentials. individuals return Local grantees would apply for and receive funding to carry out: from prison each year. On-the-job training and registered apprenticeships; An estimated 636,017 Sector-based training programs that meet the needs of people are homeless at groups of employers any given point. Strategies that lead to industry-recognized credentials in growing fields; 1 in 4 low-income Direct work experience along with supportive services; or single mothers about Adult basic education services or integrated education and 1.5 million are training models that allow students to acquire basic skills jobless and not and postsecondary credentials. receiving benefits. Congress has an opportunity to support a job creation agenda that 1 in 5 black working- age men have no high directly gets more Americans back to work and improves the lives of school degree. greater number of Americans and their families through work. We encourage Congress to support and pass the Pathways Back to Work Act An estimated 30 and chart a path toward a shared economic prosperity for all job seekers.

million adults in the U.S. can only read at the 5th grade level.

Why America Needs Pathways Back to Work

The Pathways Back to Work Act is critical and timely. Millions of Americans are out of work. Nearly two out of five unemployed workers have been jobless for six months or more and workers who have been unemployed for long periods find it increasingly difficult to secure employment. In June 2013, the alternative unemployment rate measure (which includes people who want to work but are discouraged from looking and people working part time because they cant find full-time jobs) was over 14 percent. I gained work Individuals with low education and skill levels continue to experience experience and unemployment rates that are significantly higher than those of more learned proper educated workers. One in four African Americans between ages 18 and 24 work effort in a is looking for a job, but cannot find one, as are more than one in seven work place. Hispanic young adults. Meanwhile, 6.7 million youth are neither employed nor in school. Without targeted efforts to connect unemployed youth and Program Participant adults to jobs, paid work experience, education, and training, many Americans will likely spend the better part of a decade with few opportunities to work, gain skills, or earn family sustaining wages. These trends carry long-term consequences for workers, families and for our countrys long-term economic growth and competitiveness. The Pathways Back to Work Act can address the overall job shortage, the employment needs of millions of Americans, and the needs of business. Subsidized employment programs have a track record of contributing to the employment and earnings gains of individuals and families and the economic health of communities while benefiting employers. Subsidized and transitional jobs and work-based employment strategies are successful strategies that provide unemployed Because of [the adult workers and youth the opportunity to earn wages, build skills, and subsidized connect to the labor market, while also giving businesses an incentive to hire employment] new employees. These programs have positive economic ripple effects in program, our communities. For a program in select Chicago neighborhoods that placed business was able over 1,500 people in transitional jobs over four months, demand for goods to service more and services increased by over $5 million because of the program. A clients, do more program that placed over 27,000 individuals in subsidized employment over outreach, a six month period generated nearly $13.6 million in federal income, marketing and Medicare, and Social Security taxes and over $2.7 million in state income tax. capacity building. In addition, these programs can reduce incarceration rates; reduce reliance on public benefits and lower taxpayer costs; and improve educational Chicago Employer outcomes for dependent children. America is stronger and the economy is healthier when everyone who wants to work can find a job and advance in the labor market. By opening doors to work for all jobseekers through the Pathways Back to Work Act we can rebuild the foundation on which the American Dream is realized. The National Transitional Jobs Network (NTJN) is a national coalition dedicated to getting chronically unemployed Americans back to work.
We advance effective employment solutions including Transitional Jobs that combine wage-paid work, job skills training, and supportive services to help individuals facing barriers to employment succeed in the workforce. We believe that every person deserves the opportunity to work and support themselves and their families and that America is stronger when everyone who wants to work can find a job. We open doors to work through Transitional Jobs programs, research and evaluation, education and training, and policy advocacy.