bar rstoemp men ansit naljobs rrier ploy nttra tion gre eces ngro ngun ploy nt eatre

ssion owin nemp ymen am canr vestm ntandrec erya meric reinv men cove act stim usw yuiopasd hjklz overt mulu werty dfgh zxpo ty Chicag goNeigh hborhoodJobS Start llEvalu uationR : res ewr Fugcvb mqwe uref als sume riting bnmReporterty ferra ATransiti A ionalJob bsRespon nsetothe eGreat ecession tra ngbn tyui asdfg kchil are ainin nmr Re iopa ghjk ldca sof illsio sdfgh zxhf dgra ees ftski opas hjklz futn ante tan merg ycon genc undw es nfem gency nting cyfu wage chi o2016olympicb mall sines icago bidsm lbus ss cas anag ments vices rtner ps sema gem serv spar rship now rkexp iencejob dine lass wor peri brea essc ses tra ansporta nass ation sistancee ploym nt emp men 13c mmun yarea radu andy th com nity asfo ultsa yout
Feb bruary2012

em yero each bplac entw k mploy outr hjob cem work ach gone hbor hicag eigh rhoodjob artre bsta eport
1

Acknowledgements
Thisevaluation,conductedbytheSocialIMPACTResearchCenter,wascommissionedbythe 2016FundforChicagoNeighborhoods. ChicagoNeighborhoodJobStartgranteeprogramdirectors,staff,andparticipants,2016Fund contributors,keyprojectpartners,and2016Fundstaffwereallgenerouswiththeirtimeand information,allowingIMPACTtoevaluatetheJobStartinitiativealongmanydimensions. PrimaryAuthor:JonahKushner 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 AllianceforHumanNeeds&HumanRights,providesresearch,policyanalysis,consulting,technicalassistance, communications,andcoalitionbuildingtoprojectsinIllinois,theMidwest,andnationally.Visit www.heartlandalliance.org/researchtolearnmore. 33W.GrandAvenue,Suite500|Chicago,IL60654|312.870.4949|research@heartlandalliance.org Copyright2012bytheSocialIMPACTResearchCenteratHeartlandAlliance Allrightsreserved

TableofContents
ExecutiveSummary Introduction Methodology Background NeighborhoodsandParticipants Implementation Grantees ProgramStartUp RecruitmentandEligibility Assessment JobReadinessTraining TransitionalJobs CaseManagement SupportiveServices JobPlacementandRetention Administration Funding InteractionwithPITW Outcomes EconomicStimulus ParticipantIncomeandEmployability TransitionalJobsandUnsubsidizedPlacement EffectsonGrantees StakeholderSatisfaction ComparisonwithPutIllinoistoWork Successes,Challenges,andRecommendations Appendices AppendixA:EvaluationMethodology AppendixB:HoursWorkedandWagesEarnedinJobStartTransitionalJobs 5 9 10 11 19 29 29 31 32 36 37 38 51 52 55 59 60 63 65 65 68 71 74 74 78 84 96 96 103

achicagoneighborhoodjobstartreport Chicago Neighborhood JobStart barrierstoemploymenttransitionaljobs Evaluation Summary: A Transitional Jobs Response to the greatrecessiongrowiesunemployment Great Recession americanreinvestmentandrecoveryact stimulustimelimitedpovertyreferrals resumewritingnohighschooldiploma trainingcomputersclothingchildcare softskillshowtointerviewgetidgrantees tanfemergencycontingencyfundwages chicago2016olympicbidsmallbusiness casemanagementservicespartnerships noworkexperiencejobreadinessclasses transportationassistanceemployment 13communityareasforadultsandyouth employeroutreachjobplacementwork achicagoneighborhoodjobstartreport
Chicago Neighborhood JobStart sought to place 2,200 lowincome residents of historically high unemployment neighborhoods into transitional jobs.

Funding

After 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.

JOBSTART OBJECTIVES

1.

Help participants weather the lingering effects of the 2007 recession by providing employment and income.

2.

Program Design

JobStart 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 weeks of 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.

Improve the employability of participants by providing them with work opportunities to learn how to work in supportive environments. Help participants gain permanent employment.

3.

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 selected to operate JobStart.

January 2012

This evaluation, conducted by the Social IMPACT Research Center at Heartland Alliance, was commissioned by the 2016 Fund for Chicago Neighborhoods. 33 W. Grand Avenue, Suite 500 | Chicago, IL 60654 | 312-870-4943 research@heartlandalliance.org www.heartlandalliance.org/research

Illinois Department of Human Services: Applicant for the ARRA 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 Snapshot
Timing: Operated from June September 2010 Geography 13 Chicago Community Areas on the Citys south and west sides Transitional Job Participants

JobStart Employers
268: Number of Employers
Sample of Businesses child care centers, churches, schools, salons, property management and landscaping companies, for-profit and nonprofit retail stores, fast food, and restaurants
Public 2.7% For-profit 40.5% Nonprofit 56.8%

Business Type*

1,518
1,030 adult participants 488 youth participants

39.3% 54.1% 85.2%

Average Size* 5 or fewer employees 10 or fewer employees 50 or fewer employees

Participant Demographics
Gender 34.6% Male 65.4% Female Race 95.8% African American 0.9% White 3.3% Other

Education, Income, and Work History

Educational Attainment
Less than a high school degree or GED High school degree or GED Some college Associate's or bachelor's degree Adults 27.7% 55.3% 14.7% 2.4% Youth 78.9% 13.9% 7.0% 0.2%

Average Age Adult participants: 28 Youth participants: 17 Household Composition Average family size: 3.7 Caring for a minor child in the home:

$760: Average Monthly Household Income

(Pre-Program)

Work History* 86.7% had worked in the past Average unemployment spell pre-JobStart: 1.3 years

62.2% of adult participants

5.3% of youth participants Noncustodial parent of a minor child: 18.1%
(adult participants)

* 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.

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 Outcomes
Income Earned Through JobStart
Adults Average monthly household income prior to JobStart Average monthly wages per participant earned in transitional job Average wages earned per month as a percentage of prior income $609 $1,361 223.5% Youth $1,127 $884 78.5%

Entered Unsubsidized Employment, Education or Training, or Another Jobs Program 21.8% adult participants 91.8% youth participants Improvement in Employability* amount of supervision needed, productivity, personal presentation, punctuality, communication about absences, and interpersonal skills

Business Outcomes
Many employers reported positive changes to their business*
Survey respondents reported performance increased or somewhat increased in the areas of productivity, 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*

Economic Impact
JobStart participants likely spent much of their earned income in the retail sector, including grocery stores, clothing stores, and gas stations. Estimated Economic Activity Associated With JobStart in Cook County
Increased demand Increased household earnings Increased employment $5,082,788 $1,228,676 44 jobs

91.7% participants 85.1% employers 44.6% of employers reported that they were more likely
to hire low-income parents or youth than they were before participating in JobStart.*

Increased demand includes initial demand from wages spent and subsequent demand from spending by businesses needed to support initial spending

* 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.

Within its 4 months of operation, JobStart successfully employed very disadvantaged workers. In addition 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.
Within a short period of time, JobStart recruited and trained a large number of participants, placed them into transitional jobs, and helped them access supportive services. The individuals recruited, trained, and placed into transitional jobs had a pronounced need for earned income, as well as barriers that prevented them from earning income in a regular job. The average participant worked the overwhelming majority of weeks available, suggesting that the services offered by JobStart helped participants overcome their barriers to employment during the in-program period. Average monthly income earned through JobStart was sufficient to make a meaningful difference in the ability of participants to support themselves and their families.

Successes

The majority of employer survey respondents reported employing JobStart participants resulted in positive business changes in the areas of productivity, quality of work, number of customers /clients they were able to serve, customer or client satisfaction, and workforce satisfaction with workload.

In addition to its direct effects on the economic circumstances of participants and employers, JobStart most likely affected businesses and their employees throughout Cook County through an economic multiplier effect.

JobStart helped participants improve employability by helping them learn and practice soft skills.

Participant and employer survey respondents indicated a high level of satisfaction with JobStart.

JobStart provided participants with badly-needed earnings and appears to have benefited businesses 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 the relatively 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 ability to meet JobStarts transitional job placement goal. Contemporaneous operation of JobStart and a larger scale subsidized employment program, Put Illinois to Work, 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 employers were 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 impeded unsubsidized placement. Economic conditions across Illinois and the United States may have impeded placement of JobStart participants into unsubsidized jobs. Finally, placement data from program records likely under-represent the percentage of adult participants who found employment after JobStart ended. The full report provides recommendations for future subsidized and transitional jobs programs based 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.

Challenges

Next Steps

Introduction
ThisreportdescribestheresultsofanevaluationofChicagoNeighborhoodJobStart,atransitional jobs(TJ)programthatsoughttoplace2,200lowincomeresidentsofhighunemployment neighborhoodsintotemporaryjobswithlocalemployers.Theprogramoperatedforapproximately 4monthsbetweenJuneandSeptember30,2010,usingacombinationofpublicfundingfromthe AmericanRecoveryandReinvestmentAct(ARRA)andprivatefundingfromthe2016Fundfor ChicagoNeighborhoods(hereinafterthe2016Fund). AfterChicagolostitsbidfortheOlympicsinlate 2009,the2016Funddecidedtodevote$2million JOBSTARTOBJECTIVES ofitsremainingfundstoaTJprogramforresidents ofitsprioritycommunities.This,alongwiththe 1. Helpparticipantsweatherthe inkindcontributionofsupervisionfromemployers, lingeringeffectsofthe2007 wouldenablethe2016Fundtodrawdown$18.2 recessionbyprovidingemployment millioninARRAfundingfortheprogram. andincome. JobStartsubsidizedwageandpayrollcostsforthe 2. Improvetheemployabilityof participantsitplacedintotemporaryjobsand participantsbyprovidingthemwith providedservicestohelpparticipantsmaintain opportunitiestolearnhowto employment.Theprogramincludedatleast30 workinsupportiveenvironments. hoursofjobreadinesstrainingcoveringworkplace behaviorandotherskills,upto16weeksof 3. Helpparticipantsgainpermanent subsidizedemploymentof30to40hoursper employment. week,casemanagementinoneononemeetings withprogramstaffandgroupsessionswithother participants,andsupportiveservicessuchastransportationandchildcare. Thecombinationofsubsidizedemploymentandsupportiveserviceswasintendedtoaccomplish threeobjectives:First,intheshortrun,itwasintendedtohelpparticipantsweatherthelingering effectsoftherecessionthatbeganinDecember2007byprovidingemploymentandincome. Second,overthelongrun,itwasintendedtoimprovetheemployabilityofparticipantsbyproviding themwithopportunitiestolearnhowtoworkinsupportiveenvironments.Finally,itwas intendedtohelpthemgainpermanentemploymentaftertheirtransitionaljobsended. ThisreportsetsforththeinitialresultsofanevaluationofJobStart.Itbeginswithdetailsonthe uniquenationalandlocalcircumstancesthatmotivatedagroupofpublicagencies,nonprofit organizations,andphilanthropicfunderstocreatetheJobStartprogramusingARRAfunding. CharacteristicsofJobStartparticipantsandtheirneighborhoodsarethenpresented,followedby findingsontheimplementationoftheprogramby12providers.Usingdatafromprogramrecords andsurveysofparticipants,employers,andprogramstaff,thereportexplorestheoutcomesof JobStartforparticipantsandemployersandestimatesJobStartsimpactoneconomicactivityacross CookCounty.Itconcludeswithasummaryofthesuccessesandchallengesexperiencedby providersastheyimplementedtheJobStartprogramwithinademandingtimeframeandoffers recommendationsforfuturetransitionaljobsprogramsbasedontheirexperiences.

Methodology
TheJobStartevaluationwasdesignedtoanswerfourresearchquestions:
1.HowwasJobStart designed? 2.HowwasJobStart implemented? 3.Whatwere JobStart'soutcomes? 4.Whatwere JobStart'simpacts?

Theevaluationreportsummarizedbythisbriefaddressesthefirstthreequestions.TheSocialIMPACT ResearchCenterplanstoanalyzeprogramimpactsinafuturereport.Thefollowingsourceswereusedin thereport.PleaserefertoAppendixAforadetaileddescriptionofevaluationmethodology. Programdocuments:Tounderstandprogramdesign,theCommunityServicesAgreement(CSA) betweenIDHSandthe2016FundandtheJobStartProceduralManualdevelopedbythe2016 Fundwerereviewed.Thesedocumentsdescribetheservicesthatgranteeswererequiredto provideandwereincorporatedintograntagreementsbetweenthe2016Fundanditsgrantees. Programrecords:DataonthepersonalandhouseholdcharacteristicsofJobStartparticipants weredrawnfromJobStarteligibilitydocumentationthatgranteeswererequiredtocollect. Interviews:TounderstandthecircumstancesthatledtothecreationofJobStartandshapedits designandimplementation,representativesofkeyorganizationsinvolvedinthedesign, administration,andfundingofJobStartwereinterviewed.Tounderstandeachgrantees experienceimplementingJobStart,allgranteeprojectdirectorswereinterviewed. GranteeStaffSurveyandProjectDirectorSurvey:Tounderstandimplementationofeach granteesJobStartprogram,separatesurveysweresenttoJobStartprojectdirectorsandstaff whoworkeddirectlywithJobStartparticipantsandemployersateachagency.Allproject directorsrespondedtotheProjectDirectorSurvey,and80of103staffwhowerestillemployed atthegranteesafterJobStartendedrespondedtotheGranteeStaffSurvey. ParticipantSurvey:Dataonparticipantsemploymenthistory,barrierstoemployment,and satisfactionwithJobStartweredrawnfromresponsestoa36questionsurveysenttoall participants.Ofallsurveyssent,238useableresponseswerereceived.Becausethenumberof responsesconstitutesarelativelysmallproportionofall1,618participants,cautionmustbe usedingeneralizingaboutthecharacteristicsandexperiencesofallparticipantsfromsurvey responses.MarginsoferrorareavailablefromtheSocialIMPACTResearchCenteruponrequest. EmployerSurvey:DataonthecharacteristicsofJobStartemployers,theirassessmentsof participantprogress,andtheirsatisfactionwithJobStartarefromresponsestoa35question surveysenttoallemployers.Ofallsurveyssent,77useableresponseswerereceived.Because thenumberofresponsesconstitutesarelativelysmallproportionofall268JobStartemployers, cautionmustbeusedingeneralizingaboutallemployersfromsurveyresponses.Marginsof errorareavailablefromtheSocialIMPACTResearchCenteruponrequest.

EconomicActivityAnalysis:EconomicactivityacrossCookCountyassociatedwithJobStartwas estimatedusingeconomicmultiplierscreatedbytheU.S.DepartmentofCommerce,Bureauof EconomicAnalysisusingitsRegionalInputOutputModelingSystem(RIMSII).Researchonthespending behavioroflowincomehouseholdswasalsousedtoestimateeconomicactivity.

10

Background
Thischapterdescribestheeventsthatledtothecreationof JobStart,includingtherecessionthatbeganinDecember2007, ChicagosOlympicbid,andpriorworkforceandcommunity developmenteffortsundertakenbyagroupofChicagoarea philanthropicfunders,nonprofitorganizations,andpublicagencies.

NationalContext
TherecessionthatbeganinDecember2007providedtheimpetusfortheAmericanReinvestmentand RecoveryAct(ARRA),thesourceoffundingforJobStartandscoresofothersubsidizedemploymentand transitionaljobs(TJ)programsacrosstheUnitedStates.Thisrecessionprovedtobethelongestand mostseveresincetheGreatDepressionevenafteritendedinJune2009,unemploymentcontinuedto worsen,peakingat10.1percentinOctober2009.1Therecessionexacerbatedunemploymentamong minorities,individualswithloweducationalattainment,andyouthevenmoreseverely: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 beforeSeptember30,2010inordertoqualifyforreimbursementfromtheTANFEF.

Forsubsidizedemploymentprograms,costseligibleforreimbursementfromtheTANFEFincluded subsidiestoemployerstohelpcoverthecostofwages,payrolltaxes,benefits,andtraining;thecostof FICAandworkerscompensationtaxes;thecostofsupervisingprogramparticipantsbornebyemployers; andtheadministrativecostofoperatingasubsidizedemploymentprogram.4Consequently,theTANFEF enabledstatestoestablishnewsubsidizedemploymentprogramsortoexpandexistingprogramsfor TANFeligibleindividualsandreceivereimbursementfor80percentoftheattendantcosts.

TheflexibilityofTANFfundingenablesstatestoserveawidevarietyoflowincomeindividualsthrough subsidizedemploymentprograms.Allindividualsservedmustbelongtoafamilythatmeetsthestate definitionofneedintermsofitsincomeandassets.Custodialparentsorotheradultcaretakersfrom needyfamiliesmayparticipate,andastatemaydecidetoallownoncustodialparentsfromneedy

1

TheBusinessCycleDatingCommitteeoftheNationalBureauofEconomicResearchdefinesthemostrecentrecessionashavingbegunin December2007andendedinJune2009.NationalBureauofEconomicResearch.(n.d.).USbusinesscycleexpansionsandcontractions. RetrievedFebruary25,2011,fromhttp://www.nber.org/cycles.html 2 SocialIMPACTResearchCenteranalysisofseasonallyadjusteddatafromtheU.S.BureauofLaborStatistics,CurrentPopulationSurvey. 3 Enactedin1996,TANFreplacedAidtoFamilieswithDependentChildrenasAmericasprimarysourceofcashassistanceforlowincome families.ItdramaticallyshiftedtheemphasisofAmericanwelfarepolicyfromprovidingcashassistancetomovingwelfarerecipientsintowork byimposingworkrequirementsonrecipientsoffederalassistanceandbylimitingreceiptoffederalassistancetonomorethan5years. 4 Specifically,theTANFEFwouldreimbursestatesfor80percentofthedifferenceinspendingfromfederalfiscalyear2007or2008(whichever hadlowerspending)tofederalfiscalyear2009or2010.LowerBasch,E.(2010April).TANFEmergencyFund:Creatingsummerjobsforyouth. Washington,DC:CenteronLawandSocialPolicy.(p.1).

11

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,NewYork,Pennsylvania,andWashington)recordedsubsidizedemployment 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,providingjobreadinesstrainingandother supportiveservices,andadministeringpayroll,andtoreimbursetheseentitiesfor80percentoftheir contributions.7TheabilitytocountprivatecontributionsenabledstateslikeIllinois,withresources strainedbytherecession,todrawdownTANFEFfundingusingprivatecontributions.

AremarkableexpansionofsubsidizedemploymentprogramsfollowedtheestablishmentoftheTANF EF.DespitedelaysinthepublicationofguidancefromHHSandstatebudgetcutsthatreducedthe capacityofstatestoimplementnewprograms,39statesandtheDistrictofColumbiahadestablished subsidizedemploymentprogramsbythetimetheTANFEFexpiredinSeptember2010.Together,these programsprovidedapproximately260,000individualswithsubsidizedandtransitionaljobs.8

Illinoisestablishedthreesubsidizedemploymentprograms:PutIllinoistoWork(PITW),astatewide programthatplacedover27,000adultsintosubsidizedjobs;theYouthEmploymentfortheSummer
5

Forexample,statesmayusethedefinitionofchildthatappliestocoverageunderaparentshealthinsurance,allowingthemtoserve childrenolderthan18.TheU.S.DepartmentofHealthandHumanServiceshasstatedthatitconsidersage24areasonableupperboundfor statedefinitionsofachild.LowerBasch,E.(2010April).TANFEmergencyFund:Creatingsummerjobsforyouth.Washington,DC:Centeron LawandSocialPolicy.(p.3). 6 Pavetti,L.,Schott,L.,&LowerBasch,E.(2010January).Creatingsubsidizedemploymentopportunitiesforlowincomeparents:Thelegacyof theTANFEmergencyFund.Washington,DC:CenteronBudgetandPolicyPriorities.(p.4). 7 LowerBasch,E.(2010April).TANFEmergencyFund:Creatingsummerjobsforyouth.Washington,DC:CenteronLawandSocialPolicy.(p.56). 8 Pavetti,L.,Schott,L.,&LowerBasch,E.(2011February).Creatingsubsidizedemploymentopportunitiesforlowincomeparents:Thelegacyof theTANFEmergencyFund.Washington,DC:CenteronBudgetandPolicyPriorities.(p.56).

12

(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,andhelpedtofundJobStart.Funderscontributedtheprivatefundingusedtodrawdown 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 organizationsthatcollaboratedonOpportunityChicagotoleverageTANFEFfundingforJobStart.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.
9

SocialIMPACTResearchCenteranalysisofseasonallyadjusteddatafromtheU.S.BureauofLaborStatistics,CurrentPopulationSurvey. IllinoisDepartmentofEmploymentSecurity.(n.d.).Illinoischangingdemographicstructureanditsimpactonthelaborforce.Retrieved August3,2011fromhttp://lmi.ides.state.il.us/lmr/feb_2011/feb11_3.html 11 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.
10

13

SnapshotofKeyPlayersInvolvedinJobStart
U.S.DepartmentofHealthandHumanServices(HHS) HHSadministeredtheTANFEmergencyContingencyFund(TANFEF),whichprovidedstateswith enhancedfundingforsubsidizedemploymentandtransitionaljobsprograms.Itissuedrulesforusing TANFEFfunding,reviewedapplicationsforfundingfromthestateTANFagencies,anddistributed fundingtoagencieswhoseapplicationsitapproved. IllinoisDepartmentofHumanServices(IDHS) AsIllinoisTANFagency,IDHSappliedforTANFEFfundingfromHHSanddistributedittononprofit entitiesthatoperatedsubsidizedemploymentandtransitionaljobsprograms.IDHSalsoworkedwith theseentitiestohelpthemunderstandandcomplywithfederalrulesforusingTANFEFfunding. 2016FundforChicagoNeighborhoods(2016Fund) The2016FundwascreatedtohelpensurethatneighborhoodsonChicago'ssouthandwestsideswould benefitfroma2016OlympicGames.Itplayedacentralroleinfunding,designing,andmanaging JobStart.AfterChicagolostitsbidfortheOlympicGames,the2016Fundprovided$2millioninprivate fundingsoIDHScoulddrawdownTANFEFfundingforJobStart.2016Fundpersonnelworkedwithother keyorganizationstodesigntheJobStartprogramandselectprogramproviders.OnceJobStartbegan operating,the2016Fundstaffverifiedtheeligibilityofparticipantsandemployers,monitoredproviders astheycarriedouttheprogram,receivedvouchersfromprovidersforparticipantpayrollandsupportive servicescosts,andreimbursedprovidersforthesecosts. ChicagoJobsCouncil(CJC) CJCadvocatesforpublicpoliciesandprogramstohelplowincomepeoplesucceedintheworkforce.It wasinstrumentalinpromotingtheopportunitytocreatetransitionaljobspresentedbytheTANFEFand 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.

14

TowardJobStartandPutIllinoistoWork:ActionattheStateLevel
SoonafterChicagolostitsOlympicbid,achangeofleadershipwithinthestateshumanservicesagency, theIllinoisDepartmentofHumanServices(IDHS),openedthewayforuseofTANFEFfundingtosupport subsidizedemploymentprogramsinIllinois.FollowingenactmentofARRAandcreationoftheTANFEF, astimulusworkinggroupconvenedinIllinoistoconsiderusesofTANFEFfunding.Aspartofthisgroup, CJCadvocateduseofTANFEFfundingforasubsidizedemploymentprogram;however,divergenceof opinionamonggroupmembersaboutthebestuseofTANFEFfundingforestalledreleaseof recommendationsfromthegroup,andIDHSleadershipdidnotmoveforwardonusingTANFEFfunding. Inlate2009,GovernorQuinnappointedMichelleSaddlerasSecretaryofIDHS.Thesecretarysupported theuseofTANFEFfundingforsubsidizedemploymentandconvenedmeetingstoidentifyresources thatcouldcountasthestatescontributionfordrawingdownTANFEFfunding.Withareceptive administrationatIDHSandnoimmediatetargetforadditional2016Fundinvestment,CJCworkedto generateinterestinusingunused2016FundresourcestohelpthestatedrawdowntheTANFEFfunding neededtosupportaTJprograminChicago.InFebruary2010,the2016Funddecidedtodevote$2.0 milliontoaTJprogramthatwouldserveresidentsofsouthandwestsideneighborhoods.This contribution,incombinationwithemployersupervisionvaluedat$2.6million,wouldleverage$18.2 millionfromtheTANFEFforatotalprogrambudgetof$20.3million.15 AlsoinFebruary2010,GovernorQuinndirectedIDHStodevelopalargescalesubsidizedemployment programusingTANFEFfunding.IDHSwroteitsapplicationforTANFEFfundingbroadly,toincludetheTJ programenvisionedbythe2016FundanditspartnersthatwouldbecomeJobStart,andthelargescale subsidizedemploymentprogramthatwouldbecomePutIllinoistoWork(PITW).16InMarch2010,IDHS submittedandreceivedapprovalforitsapplicationfromHHS. Approximately3monthselapsedfromthetimeIDHSreceivedapprovalforTANFEFfundingandthe timeIDHSandthe2016FundexecutedtheCommunityServicesAgreement(CSA)thatgrantedTANFEF fundingtothe2016FundandestablishedtheframeworkfortheJobStartprogram.Duringthistime,the 2016FundcommunicatedwithIDHSaboutprogramdesign,selectedJobStartproviders,and communicatedwithprovidersabouttheprogramdesignasitdeveloped. IDHSandthe2016FundexecutedthefinalCSAinJune2010,onlyoneweekbeforethetargetdatefor placingparticipantsintosubsidizedemployment.JobStartwasintendedtoprovideparticipantswithup to16weeksofwages;becausetheTANFEFwouldnotreimburseprogramexpensesafterSeptember 30,participantswouldhavetobegintheirtransitionaljobsbyJune14inordertoworkthefull16weeks. BythetimetheCSAwasexecuted,somegranteeshadalreadystartedtheirJobStartprograms. ThetimelineleadingfromapprovalofTANFEFfundingtoJobStartimplementationleftrelativelylittle timeforthe2016Fundanditspartnerstoplantheprogramandcommunicateitsrulesandprocedures tograntees.Moreover,the2016FundcontinuedtoreceiveclarificationaboutimplementingtheCSA fromIDHSaftertheCSAwasexecuted.Asdescribedinsubsequentchapters,thistimelinemadeJobStart administrationdifficultforthe2016Fundanditsgrantees.
15

ChicagoCommunityTrust(finalJobStartbudget,June3,2010).Asnotedpreviously,HHSallowedstatestoclaimemployersupervisionvalued at25percentofparticipantwagecostsasastatecontributionforthepurposeofdrawingdownTANFEFfunding.Theplanned$2.6million employercontributiontoJobStartwasaninkindcontributionvaluedat25percentoftheplanned$10.3millionwagebudgetfortheprogram, butwasnotaseparatesourceoffundingthatcouldhavebeenusedtofundprogramexpenses. 16 Theapplicationalsoincludednonrecurrent,shorttermTANFbenefits,oneofthethreetypesofincreasedTANFexpenditureforwhichstates couldreceivereimbursementfromtheTANFEF.

15

Staffofthe2016FundattributeddelaysinexecutingtheCSAtothedemandsthatimplementingPITW placedonIDHS.TheyreportedthatIDHSstaffwereasattentivetoJobStartdesignandplanningas possible,butthatthedemandsofthemuchlargerprogramdrewtheirattentionawayfromJobStartand delayedtheirresponsestoinquiriesaboutJobStartdesignissues. Figure1:TimelineofKeyEvents

February2009 March2009 April2009 May2009 June2009 July2009 August2009 September2009 October2009 November2009 December2009 January2010 February2010 March2010 April2010 May2010 June2010 July2010 August2010 September2010

CongressenactstheAmericanRecoveryandReinvestmentAct(ARRA),whichincludestheTANF EmergencyContingencyFund(TANFEF).

Chicagosbidforthe2016Olympicsisrejected. MichelleSaddlerisappointedDirectoroftheIllinoisDepartmentofHumanServices(IDHS).

IDHSSecretaryMichelleSaddlerconvenesmeetingsonusingTANFEFfunding. MeetingsonusingTANFEFfundingcontinue. GovernorQuinndirectsIDHStodevelopalargescalesubsidizedemploymentprogramusingTANFEF funding. IDHSappliestouseTANFEFfundingforsubsidizedemploymentandtransitionaljobsprograms.TheU.S. DepartmentofHealthandHumanServices(HHS)approvestheapplication. The2016FundreleasesitsrequestforJobStartproposals.ProposalsaredueonApril30. IDHSissuesadraftJobStartcommunityservicesagreement(CSA)tothe2016Fund. GranteesreceivenotificationthattheyhavebeenawardedJobStartgrants. IDHSfinalizestheCSAwiththe2016Fund. The2016Fundissuesfinalgrantagreementstograntees. JobStartparticipantsmustbegintransitionaljobsbyJune14toworkthefull16weeksavailable.

AlltransitionaljobsendonSeptember30.

SubsidizedandTransitionalJobs
Withtheobjectivesofusingtemporaryjobstoprovideimmediateworkandincometolowincome Chicagoansand,simultaneously,ofimprovingtheirlongtermemployability,JobStartfitswithinthe umbrellaofworkforceinterventionscalledsubsidizedemploymentprograms,andwithinthecategory
16

calledtransitionaljobs(TJ)programs.Subsidizedemploymentprogramsfundthecreationoftemporary jobsforindividualswhomightotherwisebeunemployed.Historically,theyhavebeenusedtoprovide outofworkindividualswithincomeduringeconomicdownturns,toimproveinfrastructureorprovide neededpublicservices,toimprovetheemployabilityandearningsofdisadvantagedindividualsby providingworkexperienceinasupportiveenvironment,ortoachieveacombinationofthesegoals.17 Asubsetofsubsidizedemploymentprograms,TJprogramscombinetemporary,wagepayingjobswith supportiveservicesintendedtohelpparticipantsmaintainsubsidizedemploymentandgain employmentintheregularlabormarket.TJprogramstargetindividualswithbarrierstoemployment, suchaslongtermwelfarereceipt,longtermunemployment,acriminalrecord,orhomelessness.18 TJprogramsmayimprovetheemployabilityofindividualswithbarrierstoemploymentthroughmultiple avenues: 1. Individualswithlittleornoworkexperiencemaybestlearntoworkbyholdingapayingjobin asupportiveenvironmentwheretheycanmakemistakes,receiveguidance,andimprovetheir performance.Atransitionaljoballowsparticipantstolearn,practice,andperfectcriticalsoft skills,suchasworkplacecommunication,conflictresolution,customerservice,andetiquette, beforeattemptingtogainandholdpermanentemploymentintheregularlabormarket.Italso enablesprogramstafftoobserveparticipantsinarealworkenvironment,therebyhelping staffidentifyandaddresssoftskillsdeficitsandotherissues. 2. TJprogramparticipantsmayalsoacquirehardskills,suchasclericalandadministrativeskills, proficiencywithcomputers,orvocationalskillsthatincreasetheiremployabilityintheregular labormarket. 3. Theearnedincomeprovidedbyatransitionaljobmayhelpparticipantsmeetbasicneedsduring theinprogramperiod,providingstabilityandimprovingskillacquisition. 4. Atransitionaljobmayenableindividualswithlimitedworkexperiencetoestablishan employmentrecordandemployerreferences,whicharecriticaltoasuccessfuljobsearch. TJprogramsmayalsobenefitemployersbyprovidingasourceofpotentialpermanentemployeeswith initialtrainingandsupportprovidedbytheprogram,andbyallowingemployerstotryoutthese potentialemployeesatnocosttothem. AvarietyofTJprogramsoperateacrosstheUnitedStates.However,mostprogramsincludesome combinationofthecomponentsoutlinedinFigure2.19

17 18

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

17

Figure2:TransitionalJobsProgramElements TJprogramsprovideanoverviewofprogramrulesandassesseachparticipants Orientationand skills,interests,andbarrierstoemployment.Assessmentmayhelpprogramstaff Initial matchparticipantswithtransitionaljobsthatfittheirinterestsandidentify Assessment supportiveservicesthatwillhelpthemmaintaintheirtransitionaljobs. Grouptrainingaboutthesoftskillsnecessarytomaintainemploymentoften JobReadiness

Training

precedesplacementintransitionaljobs.Subjectscommonlycoveredinclude appropriateworkplacebehavioranddress,jobsearchtechniques,resumewriting, interviewing,andcomplementarylifeskills. AdefiningcomponentofaTJprogram,subsidizedemploymentconsistsofatime limited,wagepayingjobfundedbytheprogram.Mostprogramsrequire participantstoworkbetween20and35hoursperweek,payatorslightlyabovethe stateorfederalminimumwage,andoffer3to9monthsofsubsidizedemployment. TJprogramsvaryontheextenttowhichtheyofferorrequireparticipantsto undergobasicacademicskillstraining,trainingtowardanacademicdegreeor credential,ortraininginajoboroccupationspecificskill.Onlyahandfulofprograms offerpaidvocationaltrainings.

Subsidized Employment

Academicor HardSkills Training

Case Management

TJprogramsincluderegularmeetingsbetweenparticipantsandprogramstaffto monitorparticipantsprogress,addressquestionsorproblems,andhelpparticipants accesssupportiveservices.Programsmaysupplementthesemeetingswithgroup casemanagementsessionsthatofferpeersupport. MostTJprogramsoffersomecombinationofsupportiveservicestohelpparticipants maintainemploymentintheirtransitionaljobs.Thesemayincludeassistancewith transportation,childcare,workrelatedclothingorequipment,medicalcare, housing,counseling,andtreatmentofalcoholordrugabuse. MostTJprogramsbeginofferingservicestohelpparticipantsfindunsubsidizedjobs wellbeforethetransitionaljobends.Forthosewhofindunsubsidizedjobs,TJ programsmayextendsupportiveservicesforalimitedtimetohelpthemmaintain unsubsidizedemployment.

Supportive Services

JobPlacement andRetention

Summary

Nationalandlocalcircumstancesmotivatedagroupofphilanthropicfunders,nonprofitorganizations, andpublicagenciestoplanandimplementJobStart,anemploymentprogramwithshortrunstimulus andlongrunemployabilitygoals.TheSeptember30,2010,deadlineforusingTANFEFfundingand Illinoisrelativelylateapplicationforthisfundingimposedademandingtimeframewithinwhichto recruit,train,andplaceparticipantsintotransitionaljobsandpreparethemforunsubsidized employment.

18

NeighborhoodsandParticipants
JobStartwasintendedtoserveparticipantsfrom13Chicago CommunityAreaswithhistoricallyhighlevelsofunemployment andhighproportionsofpoorandlowincomeresidents.Asa programfundedbytheTANFEF,itwasrequiredtoenrollmembers ofneedyfamilies,definedbyIllinoisasthosewithhousehold incomesbelow200percentofthefederalpovertylevel. Additionally,theprogramdesigninstructedgranteestoprioritize servingparticipantswithmultiplebarrierstoemploymentthatcan beaddressedthroughtheintensiveservicesprovidedunder [JobStart].ThischapterexaminestheextenttowhichJobStart fulfilledthegoalofenrollinglowincomeindividualswithbarriers toemploymentfromeconomicallydisadvantagedneighborhoods.

Figure3:ResidentialAddressesofJobStartParticipants

20

ChicagoCommunity Areas
TheCityofChicagois dividedinto77Chicago CommunityAreas(CCAs). TheJobStartprogramdesign requiredgranteestoenroll participantsfrom13CCAs ontheCityssouthandwest sides.ElevenoftheseCCAs werethecommunities targetedbythe2016Fund. TwoCCAs(Douglasand Oakland)wereaddedshortly beforetheprogrambeganin ordertocreatea geographicallycontiguous programarea. Figure3showsthe designatedCCAsandthe residentialaddressesof individualswhoworkedin transitionaljobs.

20

Analysisofprogramrecords.Mapreflects1,112addressesthatcouldbeplotted.

19

TheAmericanCommunitySurvey(ACS),conductedannuallybytheU.S.CensusBureau,provides estimatesofunemployment,proportionsofresidentslivinginpoverty,andproportionsofresidents livinginlowincomehouseholdsinCensustractscorrespondingtoCCAs.

ThenumberofresidentssampledannuallybytheACSwithineachCCAistoosmalltoestimatethese indicatorswithameaningfullevelofconfidence;however,poolingsamplesconductedoverafiveyear periodallowstheACStoprovidemeaningfullocallevelestimates.

ThestatisticsdiscussedinthissectionwerecalculatedwithACSsurveydatacollectedfrom2005to 2009,themostrecentdataavailableforthisgeographyontheseindicators.Theseratesarenotthe averageratesofunemployment,poverty,andlowincomestatusinCCAsbetween2005and2009; rather,theyaresingleratescalculatedusingdatacollectedfrom2005to2009.

Figure4comparesunemploymentratesinthe13JobStartCCAswiththeunemploymentrateacrossall otherCCAs.AcrossallJobStartCCAs,unemploymentwas14.3percent,comparedwith9.9percent acrosstherestofChicago.InthreeJobStartCCAs(WashingtonPark,Oakland,andEnglewood),the unemploymentrateexceeded20percent. Figure4:UnemploymentRatesinJobStartChicagoCommunityAreas21

WashingtonPark Oakland Englewood GrandBoulevard Woodlawn ChicagoCommunityArea NorthLawndale EastGarfieldPark Kenwood Douglas NearWestSide LowerWestSide SouthLawndale NearSouthSide AllJobStartCCAs AllnonJobStartCCAs Illinois 0.0% 5.0% 8.0% 10.0% 15.0% UnemploymentRate 20.0% 25.0% 30.0% 9.9% 5.7% 14.3% 13.7% 13.6% 12.6% 11.6% 11.1% 15.5% 20.8% 19.6% 19.1% 17.8% 23.6% 25.8%

Figure5comparestheproportionofresidentslivinginpovertyandtheproportionofresidentslivingin lowincomehouseholds(thatis,householdsbelow200percentofthepovertyline)intheJobStartCCAs toallotherCCAs.22AcrossallJobStartCCAs,nearlyonethird(32.7percent)ofresidentslivedinpoverty, comparedwithroughlyonefifth(20.3percent)ofresidentsacrossallnonJobStartCCAs.Inallbutone

21 22

SocialIMPACTResearchCenteranalysisofU.S.CensusBureau20052009AmericanCommunitySurvey. Throughoutthissection,individualslivinginpovertyaredefinedasthosewithhouseholdincomesbelow100percentofthepoverty threshold,andindividualslivinginlowincomehouseholdsaredefinedasthosewithhouseholdincomesbelow200percentofthepoverty threshold.TheCensusBureauspovertythresholddiffersveryslightlyfromtheU.S.DepartmentofHealthandHumanServicespoverty guidelines.

20

oftheJobStartCCAs(NearSouthSide),overonequarterofresidentslivedinpoverty.AcrossallJobStart CCAs,overhalf(55.2percent)ofresidentslivedinlowincomehouseholds.Bycontrast,39.1percentof individualsacrossallnonJobStartCCAslivedinlowincomehouseholds. Figure5:PovertyandLowIncomeRatesinJobStartChicagoCommunityAreas23

WashingtonPark NorthLawndale Englewood EastGarfieldPark Oakland LowerWestSide ChicagoCommunityArea SouthLawndale Woodlawn GrandBoulevard Douglas NearWestSide Kenwood NearSouthSide AllJobStartcommunities AllnonJobStartcommunities Illinois 52.6% 43.8% 43.5% 44.2% 34.0% 29.7% 26.2% 34.5% 33.6% 27.9% 27.8% 25.3% 14.2% 9.2% 32.7% 18.8% 12.4% 0.0% 16.2% 20.3% 22.5% 26.3% 28.7% 31.9% 21.3% 18.8% 17.7% 13.6% 14.7% Below100%Poverty 100%to199%Poverty 21.6% 24.8% 23.6% 22.5%

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

PercentageofIndividualsBelow200PercentoftheU.S.CensusBureauPovertyThreshold

Figure6showsCCAsbypercentageofresidentslivinginhouseholdsbelow200percentofthepoverty threshold.DefininglowincomeCCAsasthosewith50percentormoreoftheirresidentslivingin householdsbelow200percentofthepovertythreshold,theJobStartprogramarealargelycoincided withlowincomeCCAs.InfourofthesixdesignatedCCAsonthewestsideandinfiveoftheseven designatedCCAsonthesouthside,over50percentofresidentslivedinlowincomehouseholds.

23

SocialIMPACTResearchCentersanalysisoftheU.S.CensusBureaus20052009AmericanCommunitySurvey5yearestimatesprogram.

21

Figure6:CCAsbyPercentageofIndividualsBelow200PercentofthePovertyThreshold24

TheJobStartprogramareaalsoincludedsomeCCAswithrelativelylowproportionsofresidentslivingin lowincomehouseholdsandsimultaneouslyexcludedsomenearbyCCAswithrelativelyhighproportions
24

SocialIMPACTResearchCentersanalysisoftheU.S.CensusBureaus20052009AmericanCommunitySurvey5yearestimates.Mapreflects 1,112addressesthatcouldbeplotted.

22

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 mettheTANFeligibilityrequirements.Ofthe12JobStartgrantees,eightoperatedonlyadultprograms, twooperatedonlyyouthprograms,andtwooperatedbothtypesofprograms(Table6).Becauseyouth programsattemptedtoengageadifferentpopulationthanadultprograms(thatis,highschoolor collegeagedyouth),dataforadultandyouthparticipantsarepresentedseparately.

PersonalandHouseholdCharacteristics
Table1showsthepersonalcharacteristicsofJobStartparticipants.Themajorityofparticipantswere young,female,andAfricanAmerican. Theaverageagesofadultandyouthprogramparticipantswere28and17,respectively. Themajorityofparticipants(65.4percent)werefemale,withagreatershareoffemalesamong adults(69.0percent)thanamongyouth(57.9percent). Theoverwhelmingmajorityofparticipants(95.8percent)wereAfricanAmerican,reflectingthe compositionoftheJobStartCCAs.26 Morethanhalf(55.3percent)ofadultprogramparticipantshadearnedonlyahighschool degreeorGED,andslightlymorethanonequarter(27.7percent)hadnotearnedahighschool degreeorGED.Only2.4percenthadearnedanassociatesorbachelorsdegree.Consistentwith theprogramobjectiveofengaginghighschoolagedyouth,78.9percentofyouthprogram participantsreportedthattheyhadnotearnedahighschooldegreeorGED. Amongadultprogramparticipants,62.2percentreportedthattheywereeligibleforJobStartas parentsoradultcaretakerscaringforchildreninthehome,while18.1percentreportedthat theywereeligibleasnoncustodialparentsofminorchildren.27

25

Forexample,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.

23

Table1:PersonalCharacteristicsandHouseholdCompositionofJobStartParticipants28
Adults Participants Male Female Averageagec AfricanAmerican White Other HispanicorLatino LessthanahighschooldegreeorGEDf HighschooldegreeorGEDf Somecollege Associate'sorbachelor'sdegree Averagefamilysizeg Caringforaminorchildinthehome Noncustodialparentofaminorchild Youth Averagemonthlyhouseholdincome Householdhasanadditionalearnerl
a

Youth 1,030 488 42.1% 57.9% 17 97.9% 1.6% 0.4% 2.1% 78.9% 13.9% 7.0% 0.2% 4.2 5.3% 1.1% 97.3% $1,127 37.8%
c

All 1,518 34.6% 65.4% 24 95.8% 0.9% 3.3% 5.1% 44.8% 41.5% 12.1% 1.7% 3.7 43.6% 12.5% 51.4% $760 17.5%

31.0%
b

69.0% 28
d

94.8% 0.5% 4.7%

7.4% 27.7% 55.3% 14.7%

f

2.4% 3.5
h

62.2% 18.1% 29.2% $609 10.9%

b

Allparticipantsworkedatleastonehourinatransitionaljobaccordingtoprogramrecords. N=1,022adults,484youth. N=1,023adults, d e f g h 478youth. N=1,023adults,486youth. N=666adults,486youth. N=962adults,483youth. N=992adults,458youth. N=978adults, i j k l 475youth. N=978adults,474youth. N=979adults,475youth. N=865adults,355youth. N=774adults,254youth.

Nearlyonefifthofadultparticipantsandnearlyhalf(48.2percent)ofmaleadultprogramparticipants werenoncustodialparents.29Lowincomenoncustodialfathersareoftenoutsideofsocialandworkforce 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
AsshowninTable1,29.2percentofadultprogramparticipantsreportedthattheywereeligibleforJobStartasyouthages16to21.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
27

24

youthparticipantsreportedthattherewasanadditionalearnerintheirhouseholds,suggestingthata substantialsharewerethesoleearnersintheirhouseholdsatthetimeofJobStartentry.

PublicBenefitsReceipt
Table2showspublicbenefitsreceiptasreportedbyParticipantSurveyrespondents.Theincidenceof publicbenefitsreceiptwasmarkedlyloweramongyouthrespondentsthanamongadultrespondents. 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 SNAP Medicaidormedicalcard TANF UnemploymentInsurance SSI Twobenefits Threeormorebenefits None 63.4% 31.7% 21.1% 11.8% 3.1% 21.1% 14.9% 21.7% Youth 31.6% 36.8% 12.3% 0.0% 5.3% 24.6% 5.3% 49.1% All 55.0% 33.0% 18.8% 8.7% 3.7% 22.0% 12.4% 28.9%

EmploymentHistory
Table3showsemploymenthistorycharacteristicsasreportedbyParticipantSurveyrespondents.Most adultrespondents(89.9percent)hadheldajobbeforeJobStart.Amongthem,nearlyoneinfour(23.4 percent)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 earninglowerwagesthanadultsintheirmostrecentpriorjobs:theoverwhelmingmajority(84.6 percent)reportedearninglessthan$9.00perhour.

Notably,mostsurveyrespondentsreportedleavingtheirmostrecentjobsforinvoluntaryreasons,often relatedtoeconomiccircumstancesoutsidetheirimmediatepersonalandfamilysituations.Amongadult respondents,57.8percentreportedleavingtheirjobsbecausetheywerelaidoff,becausetheirjobs weretemporaryorseasonal,orbecauseofabusinessclosure.Bycontrast,only14.4percentreported

32

AnalysisofJobStartParticipantSurveyresponses.N=161adultsand57youth.Allrespondentsworkedatleast1hourinatransitionaljob accordingtoprogramrecords.

25

thattheyleftbecausetheywerefiredorthattheyleftvoluntarily.Therelativelyhighshareof respondentswhoreportedleavingtheirmostrecentjobforinvoluntaryeconomicreasonsmayreflect thelingeringeffectsoftherecessionthatbeganin2007. Table3:EmploymentHistoryCharacteristicsofParticipantSurveyRespondents33

Adults WasparticipanteveremployedbeforeJobStarta Everemployed Lessthan6months 6monthsto1year Morethan1yearbutlessthan3years 3ormoreyears Yearsunemployed Lessthan$9.00 $9.00to$9.99 $10.00to$10.99 $11.00to$11.99 $12.00ormore Laidoff Temporaryorseasonalemployment Fired Businessclosed Returnedtoschool Medicalissue Moved Leftvoluntarily Caringfordependent Incarcerated Transportationproblem Other/Unknown
a b c d

Youth 76.5% 44.4% 33.3% 22.2% 0.0% 1.2 84.6% 7.7% 7.7% 0.0% 0.0% 16.7% 33.3% 0.0% 12.5% 8.3% 0.0% 4.2% 4.2% 0.0% 0.0% 4.2% 16.7%

All 86.7% 18.4% 16.8% 32.8% 32.0% 1.3 54.8% 13.5% 14.3% 3.2% 14.3% 32.5% 18.4% 9.6% 7.9% 5.3% 5.3% 3.5% 2.6% 0.0% 0.9% 0.9% 13.2%

89.9% Longestperiodthatparticipanthasheldajob
b

11.2% 12.2% 35.7% 40.8% AverageunemploymentspellpriortoJobStart

c

1.3 WageinjobthatparticipantheldpriortoJobStartd 47.0% 15.0% 16.0% 4.0% 18.0% ReasonwhyparticipantlefthisorherjobpriortoJobStarte 36.7% 14.4% 12.2% 6.7% 4.4% 6.7% 3.3% 2.2% 0.0% 1.1% 0.0% 12.2%
e

N=109adults,34youth. N=96adults,26youth. N=96adults, 24youth. N=98adults, 25youth. N=90adults,24youth.

BarrierstoEmployment
Table4showschallengestofindingsteadyemploymentasreportedbyParticipantSurveyrespondents. Table5showstheapproximateshareofparticipantswithcertainbarrierstoemploymentasreportedby GranteeStaffSurveyrespondents.Together,thesedataprovideageneralpictureofbarriersto employmentthatJobStartparticipantsfaced.
33

AnalysisofJobStartParticipantSurveyresponses.Allrespondentsworkedatleast1hourinatransitionaljobaccordingtoprogramrecords.

26

Theincidenceandtypeofchallengesreportedby ParticipantSurveyrespondents(Table4)differedbetween participantsinadultandyouthprograms.Only15.5 Themostsignificantchallenge percentofadultprogramrespondentsreportedno wasteachingworkethicstoa challengesfindingsteadyemployment.Bycontrast,47.6 groupofyoungadultsthathad percentofyouthprogramrespondentsreportedno neverhadjobsbefore. challenges.Themostcommonchallengesreportedby JobStartEmployer adultswerelackofjobopeningsforwhichtheywere 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:ChallengesFindingSteadyEmploymentasReportedbyParticipantSurveyRespondents34
Adult TherewerenojobopeningsIwasqualifiedfor Ihaveacriminalrecord Balancingworkorfamilyobligationsotherthancaringforasick/disabledrelative Ididn'thavetransitfareorgasmoney Employerswon'thiremebecauseIdon'thaveahighschooldiplomaorGED Idon'thaveanyemploymentreferences Icouldn'tfindoraffordchildcare Iamcaringforasickordisabledchild Idon'thaveanaddressorstableplacetostay Ihaveadisability Iwasinanabusiverelationshipthatdisruptedwork EmployerrequiredadrugtestthatIcouldn'tpass Ididn'thaveanID Ihavetroublewithreading Twochallenges Threechallenges Fourormorechallenges Ihavenotfacedanychallenges 33.1% 31.1% 18.9% 17.6% 16.2% 8.1% 10.1% 4.7% 2.7% 2.7% 3.4% 2.0% 1.4% 0.7% 22.3% 10.1% 6.1% 15.5% Youth 38.1% 0.0% 9.5% 11.9% 4.8% 14.3% 0.0% 2.4% 7.1% 2.4% 0.0% 2.4% 2.4% 2.4% 16.7% 9.5% 2.4% 47.6% All 34.2% 24.2% 16.8% 16.3% 13.7% 9.5% 7.9% 4.2% 3.7% 2.6% 2.6% 2.1% 1.6% 1.1% 21.1% 10.0% 5.3% 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

34

AnalysisofJobStartParticipantSurveyresponses.N=148adultparticipantsand42youthparticipants.Allrespondentsworkedatleast1 hourinatransitionaljobaccordingtoprogramrecords.

27

thattheydidnotassessforamentalhealthdisorder,19.0percentreportedthattheydidnotassessfor aphysicalhealthproblem,and17.5percentreportedthattheydidnotassessfordomesticviolence.

Table5:ProportionofJobStartParticipantswithBarrierstoEmploymentasReportedbyGranteeStaff SurveyRespondents35
Unmetneedfortransportationa Nopriorworkexperience Pooroveralljobskills Poorinterpersonalskills NohighschooldiplomaorGEDa Criminalrecord Unmetneedforchildcare Unmetneedforhousing Unmetneedforotherdependentcare Alcoholordrugdependencec Mentalhealthdisorderb Physicalhealthproblem Experienceddomesticviolence
a

None 20.9% 0.0% 7.0%

a a

Afew 18.6% 44.2% 37.2% 27.9% 45.2% 35.7% 37.2% 28.6% 33.3% 31.7% 23.8% 19.0% 37.5%

Abouthalf 18.6% 27.9% 20.9% 18.6% 11.9% 14.3% 11.6% 9.5% 7.1% 4.9% 0.0% 0.0% 0.0%

Most 18.6% 27.9% 20.9% 18.6% 11.9% 14.3% 11.6% 9.5% 7.1% 4.9% 0.0% 0.0% 0.0%

All 16.3% 0.0% 2.3% 2.3% 7.1% 2.4% 4.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Didnot assess 0.0% 0.0% 2.3% 0.0% 0.0% 7.1% 2.3% 4.8% 14.3% 14.6% 26.2% 19.0% 17.5%

11.6% 4.8% 26.2%

a

27.9% 50.0%
b

35.7% 36.6% 47.6% 57.1%

42.5%

N=43. N=42. N=41. N=40.

TherelativelyhighfrequencyofcriminalbackgroundsamongJobStartparticipantsisconsistentwithan earlierstudysuggestingthatalargeproportionofexprisonersreturnedtoneighborhoodsonChicagos southandwestsides.Of246exprisonersinthestudy,54percentreturnedtojust7ofthe77CCAs. TheseincludedNorthLawndaleandEastGarfieldPark,twoCCAsintheJobStartprogramarea,andfour CCAsborderingtheJobStartprogramarea.36Havingacriminalrecordmayrepresentaseriouschallenge tounsubsidizedplacementforTJprogramparticipants.Manyemployersusecriminalbackgroundchecks toinformhiringdecisions,potentiallyexcludingindividualswithacriminalbackgroundfrom employmentinawidevarietyofjobsandindustries.37

Summary
JobStartsucceededinenrollingparticipantswithpronouncedeconomichardshipfromeconomically disadvantagedChicagoneighborhoods.TheParticipantandGranteeStaffSurveyresponsesindicatethat substantialproportionshadbarrierstoemployment,includinglackofeducationalattainment,poorjob andinterpersonalskills,criminalrecords,andunmetneedsfortransportationandchildcare.The followingchapterexamineshowgranteesrecruitedandtrainedtheseparticipants,placedand supportedthemintransitionaljobs,andpreparedthemforunsubsidizedemployment.

35 36

AnalysisofJobStartGranteeStaffSurveyresponses.Allrespondentsselfidentifiedashavingworkedonprovidingcasemanagement. Visher,C.,&Farrell,J.(2005,September).Chicagocommunitiesandprisonerreentry.Washington,DC:UrbanInstitute. 37 Rodriguez,M.,&Emsellem,M.(2011,March).65millionneednotapply:Thecaseforreformingcriminalbackgroundchecksfor employment.NewYork:NationalEmploymentLawProject.

28

Implementation
The2016Fundcontractedwith12granteestoadministerJobStart. ThischapterinvestigateshowgranteesimplementedtheJobStart programdesign,includingtheservicestheyprovidedto participants,theemployerstheyusedtoprovidetransitionaljobs, andthechallengestheyfacedoperatingtheirprograms.

Grantees
The2016Fundselectedgranteesthroughacompetitiveprocessthatweighedtheexperienceand capacityofprospectivegrantees.FromalistofworkforcedevelopmentagenciesprovidedbyCJC,32 agencieswereinvitedtoapplyforagranttooperateanadultprogram.38Reviewersconvenedbythe 2016Fundconsideredtheexperienceofagencieswithsubsidizedandtransitionalemployment programsandwiththetypeofhardtoemployindividualsJobStarttargeted;agencyrelationshipswith employers;thefeasibilityandcomprehensivenessoftheirplansforrecruitment,assessment,job readinesstraining,andcasemanagement;andtheadministrativecapacitiesofagenciesandthe qualificationsoftheirstaffs.Fromthe18agenciesthatappliedtooperateanadultprogram,10grantees werechosen.Youthprogramgranteeswereselectedfromagencieswiththecapacitytoserveahigh numberofyouthparticipants,asdemonstratedbytheirperformanceimplementingARRAyouth programsintheprecedingsummer.Outoffiveagenciesthatappliedtooperateyouthprograms,four werechosen. Table6liststheJobStartgrantees,othersubsidizedandtransitionaljobsprogramstheyhaveoperated, andpublicfundingsourcestheyusetosupportworkforcedevelopmentprogramming.Allgranteeshad experienceoperatingsubsidizedortransitionalemploymentprograms,andmanyhadexperienceusing severalofthemajorstateandfederalfundingsourcesavailableforworkforcedevelopment.Grantee projectdirectorsreportedthatthisexperiencefacilitatedstartupofJobStartprograms. SevengranteesoperatedPutIllinoistoWork(PITW)programscontemporaneouslywithJobStart.As programssupportedbyTANFEFfunding,JobStartandPITWenrolledcustodialparentsorguardians, noncustodialparents,oryouthages16to21fromhouseholdswithincomesbelow200percentofthe federalpovertylevel.PITWbeganenrollingparticipantsoveramonthbeforeJobStartandwasextended afterSeptember30,2010. TheChicagoHousingAuthority(CHA)subcontractedwith10agenciesthatrunitscasemanagement systemtooperateJobStart.TwooftheseagenciesCentersforNewHorizonsandHeartlandHuman CareServiceswerealsodirectJobStartgrantees,meaningthattheyhadcontractswiththe2016Fund andsubcontractswithCHAtoserveJobStartparticipants.CHAalsosubcontractedwithCentersforNew HorizonsandHeartlandHumanCareServicestooperateitsPITWprogram.

38

ChicagoCommunityTrust(JobStartprogramdescription,n.d.).

29

Table6:JobStartGrantees39
Name Subsidizedand transitionaljob programexperiencea IllinoisYES,Youth ReadyChicago OwnTJprogram Publicfundingused Adultslots Youthslots PITW forworkforce subcontractorc Initial Final Initial Final developmentb DCEO,TANF,WIA CDBG,CSBG,WIA 32 50 42 70 206 80 Yes No Yes Yes Yes

AlternativeSchools Network AssociationHouseof Chicago CentersforNew Horizons CentralStatesSER ChicagoHousing Authority

TJforCHA,TJforIDHS CDBG,CHA,,DCEO, TANF TJforCHA,SCSEP CDBG,CHA,TANF, WIA

125 174 500 600

OwnTJprogram HUD operatedby subcontractors,Youth ReadyChicago TJforCHA,TJforIDHS CHA

900 500

HeartlandHumanCare Services

75 25

98 30

Yes No

InspirationCorporation InspirationKitchens CDBG,CSBG,HUD (ownTJprogramfor WIA foodservice) NationalAbleNetwork OAI,Inc. SCSEP CDBG,TAA,TANF, WIA

90 138 42 42

No No

Greencorps(TJfor CDBG,TANF,WIA CityofChicago), Youthbuild(TJforU.S. DepartmentofLabor), Communitree(ownTJ program)

PhalanxFamilyServices YouthReadyChicago CDBG, TANF,WIA SaferFoundation WestsideHealth Authority

a

100 140 20 20

30

45

Yes No Yes

OwnTJprogram IllinoisYES,Youth ReadyChicago

CDBG,WIA CDBG,TANF

75 175

IllinoisYES:IllinoisYouthEmploymentforSummer;SCSEP:SeniorCommunityServiceEmploymentProgramfundedbytheU.S.Departmentof b Labor. CDBG:CommunityDevelopmentBlockGrant,CSBG:CommunityServiceBlockGrant,DCEO:IllinoisDepartmentofCommerceand c EconomicOpportunity,TAA:TradeAdjustmentAssistance,WIA:WorkforceInvestmentAct. SocialIMPACTResearchCenter.(2010,October). PutIllinoistoWorkevaluation:Anearlylook.Chicago:Author.

39

Analysisofprojectdirectorsurveys,projectdirectorinterviews,andfinalgrantagreementswiththeChicagoCommunityTrust.

30

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.

AnothergranteebegandevotingsubstantialstafftimetoplanningforJobStartbeforenotificationthatit hadbeenawardedagrant.Italsoestablishedanagreementwithatransitionaljobemployerand modifiedoneofitsCommunityDevelopmentBlockAgreementgrantstoallowparticipantsinanother program,whowerepaidthroughthatgrant,toworkasJobStartstaffattheworksite.Incontrast,athird granteecouldnotbeginimplementingitsJobStartprogramevenafternotificationthatithadbeen awardedagrant.ThisagencyhadtoseekapprovalfromitsboardofdirectorstoaccepttheJobStart grantitreceivedandhadtomodifyitscontractswithotheragenciestoincludeJobStartexpectations beforeitcouldbegintoimplementJobStart.

MostgranteeshirednewstaffandrestructuredtheirexistingstaffstoimplementJobStart.Seven granteesreportedhiringnewfulltimestaff,andfouralsoreportedhiringnewparttimestaff.Common restructuringactionsincludedreassigningcasemanagers,programmanagers,andadministrativestaff fromotherprogramsanddistributingJobStarttaskstostaffwhousuallyworkedonotherprograms.

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.

31

RecruitmentandEligibility
Todemonstratetheeligibilityofallparticipantstheyrecruited,granteeswererequiredtocollectcopies ofdocumentsshowingage,address,householdcomposition,householdincome,andauthorizationto workintheUnitedStatesforeachparticipant.40Beforeplacingaparticipantinsubsidizedemployment, granteeswererequiredtosubmitthesedocumentsandreceiveapprovalfortheparticipantfrom2016 Fundstaff.Thisconditioneffectivelyrequired2016FundstafftoreviewdocumentsforallJobStart participantswhowouldentersubsidizedemployment.

WithlittletimebetweenawardnotificationandJune14,mostgranteesrecruitedJobStartparticipants fromamongclientstheywerealreadyservinginotherprogramsandbyencouragingJobStartrecruitsto talktoothersaboutJobStart.Themostcommonlyreporteddifficultyregardingrecruitmentand eligibilitywasrecruitingfromthe13designatedCCAs.Severalgranteesreportedtheycouldhave recruitedmoreparticipantsiftheywereallowedtoenrollresidentsfromoutsidethedesignatedCCAs.

Figure7showsmeansofrecruitmentreportedbyGranteeStaffSurveyrespondentswhoworkedon recruitingparticipants.Amongthesestaffpeople,90.7percentreportedthattheiragenciesasked clientstheywerealreadyservingtoparticipate.Bycontrast,lessthan40percentreportedthattheir agenciesusedothermeansofrecruitment.

Figure7:MeansofRecruitingJobStartParticipantsasReportedbyGranteeStaffSurveyRespondents41
Askedcurrentclientstoparticipate Othersocialserviceagencies AskedJobStartrecruitstoreachout Communityorganizations Grantee'smarketingmaterials Askedcurrentclientstoreachout MeansofRecruitment YouthReadyChicago.org Marketingmaterialsfrom2016Fund Askedemployersgranteewasworkingwithtorecruit Churchesorotherfaithbasedorganizations Highschools Postsecondaryorvocationalschools ChicagoHousingAuthority OneStoporIDHS Aldermenorotherelectedofficials CityofChicagooffices Jobfairorsimilarevent Newspaperadvertisements 1.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% PercentageofRespondents 11.1% 11.1% 11.1% 9.3% 9.3% 5.6% 13.0% 35.2% 33.3% 31.5% 29.6% 27.8% 25.9% 22.2% 22.2% 20.4% 90.7%

40

Acceptabledocumentsincluded:aSocialSecuritycardorprintoutfromtheSocialSecurityAdministration;astateIDordriverslicenseto showageandaddress;abirthcertificate,courtdocuments,publicbenefitsrecord,childsupportrecords,orschoolrecordstoshowhousehold composition;SNAPorMedicaiddocumentsorarecentpayrecordtoshowhouseholdincome;andanI9formandsupportingdocumentation toshowauthorizationtoworkintheUnitedStates.Participantsmightalsohavemettheresidencyandhouseholdcompositioncriteriabyself attestation.Ifanadditionalearnerresidedwiththeparticipant,theparticipantwasrequiredtosubmitdocumentsshowingtheadditional earnersincome.ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.7) 41 AnalysisofJobStartGranteeStaffSurveyresponses.N=54.Respondentsselfidentifiedashavingworkedonrecruitingparticipants.

32

SeveralagenciesrecruitedJobStartparticipantsfromamongindividualswhohadbeenrecruitedfor theirnonTJprograms.Forexample,agranteethatoperatedjobtrainingandplacementprogramsfor TANFandSNAPrecipientsundercontractwithIDHSidentifiedpotentialJobStartrecruitsinorientations fortheIDHSprogramsandreferredthemtoJobStart.Theagencysdirectorestimatedthatthree quartersofitsJobStartparticipantswererecruitedfromIDHSorientations.Anothergranteerecruited themajorityofitsJobStartparticipantsfromclientswhohadsignedupforitsjobtrainingand placementprogramforhomelessindividuals.Bycontrast,athirdgranteeconsciouslyavoidedrecruiting fromindividualswhohadcometotheagencyforotherprograms.WhileJobStartprogramrulesdidnot prohibitrecruitingsuchindividuals,thisgranteeinterpretedtheintentoftheprogramastargeting individualswhowouldnototherwisereceiveworkforcedevelopmentservices;consequently,almost noneofitsJobStartparticipantsweredrawnfromclientsitwasalreadyserving.42 Mostgranteesappeartohaverecruitedextensivelyfromindividualswhohadbeenrecruitedforother programsbecausetheyofferedareadypoolofpotentialJobStartrecruitstodrawoninordertomeet thedemandingtimelineforrecruitment.Manyoftheseclientswouldlikelyhavereceivedsome workforcedevelopmentservicesintheabsenceofJobStart,butwouldnotnecessarilyhaveparticipated inaTJprogram. Figure8showschallengeswithrecruitmentreportedbyGranteeStaffSurveyrespondentswhoworked onrecruitingparticipants.Amongthesestaffpeople,39.1percentreportedthattoofewrecruitswere eligible,and37.0percentreporteddifficultyrecruitingfromtheJobStartCCAs. Figure8:ChallengesRecruitingJobStartParticipantsasReportedbyGranteeStaffSurvey Respondents43
Toofewrecruitswereeligible DifficulttorecruitfromthedesignatedCCAs ChallengeWithRecruitment Nochallenges Notenoughtimeintheprogramschedule Insufficientstaffforrecruitment Toomanyrecruitsresponded Difficulttodetermineeligibility Insufficientmaterialsorresources Notenoughrecruitsresponded Notenoughsupportfromthe2016Fund 0.0% 5.0% 6.5% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 13.0% 13.0% 10.9% 10.9% 10.9% 19.6% 30.4% 39.1% 37.0%

PercentageofRespondents

Severalprojectdirectorsreportedasubstantialresponsetotheirrecruitmenteffortsfromoutsidethe JobStartCCAs,andindicatedtheycouldhaveenrolledmanymoreparticipantsintheabsenceofthe residencyrequirement.Onereportedreceiving400applicationsoverthecourseoftheprogram,more thanfourtimesthenumberofslotsinitiallyallocatedtothatagency;however,mostapplicantsresided

42

ProgramrulesprohibitedparticipantsfromenrollingsimultaneouslyinJobStartandajobtrainingandplacementprogramassociatedwith TANForSNAP.ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.8) 43 AnalysisofJobStartGranteeStaffSurveyresponses.N=46.Respondentsselfidentifiedashavingworkedonrecruitingparticipants.

33

justoutsidetheJobStartCCAs.Another,whoseagencyhadalonghistoryinaneighborhoodoutside theJobStartCCAs,reportedthatmanyyouthfromtheneighborhoodinquiredaboutJobStartandthat theagencycouldhaveservedmanymoreifithadbeenallowedtoenrollneighborhoodresidents.These examplessuggestoverlapbetweenthetwomostcommonlyreportedchallengeswithrecruiting:most likely,agenciesfoundmanyrecruitsineligiblebecausetheylivedoutsidetheJobStartCCAs. Inadditiontoimpedingenrollment,theresidencyrequirementcreatedconfusionamongneighborhood residentsandotherstakeholders.Twoprojectdirectorsdescribedincidentsinwhichcityaldermen referredgroupsofconstituentsfromtheirwardstoJobStartandbecamefrustratedwhensome constituentswerefoundeligiblewhileotherswerenot.TheseincidentsoccurredbecauseCCA boundariesdonotcoincidewithwardboundaries,andconsequently,someresidentsofawardwere eligibleforJobStartwhileotherswerenot. Additionally,theresidencyrequirementcontributedtothe ChallengeswithEligibility alreadysubstantialburdenonapplicantsandgranteesof DocumentationforYouth provingeligibility.Severalgranteesreportedthatapplicants Participants struggledtoprovetheymettheresidencyrequirement.One projectdirectorstatedthatverifyingresidencyinthe Youthoftendependedontheir designatedCCAswasthegreatestchallengewithregardto parentsorguardianstoobtain recruitment,explainingthatyouthprogramapplicantsfound somekindsofdocumentation, itdifficulttodemonstrateresidencybecausetheylacked suchasbirthcertificateand identificationcardsandbecauseutilitybillsshowingtheir publicbenefitsrecords. addresseswerenotintheirnames.Anotherstatedthatsome Consequently,youthwhohad recruitsclaimedtoliveinthedesignatedCCAsbuthadold troubledrelationshipswiththeir documentationshowingaddressesoutsidethedesignated parentsorguardiansorwhose CCAs;consequently,theagencycouldnotenrollthem. parentsorguardianssimplyfailed tofollowthroughwithrequired The2016Fundwascreatedtoservecommunitiesthatwould documents,haddifficulty havebeenimpactedbythe2016OlympicGamesanduseof demonstratingeligibility. itsresourceswaslimitedtotheJobStartCCAswithoutprior approvalfromcontributors.The2016Fundstaffreported thatmostgranteesdidnotexpressdifficultywiththisrequirementuntilitwastoolatetoseekapproval forexpandingboundaries.Theyreportedthatthe2016Fundmadeaccommodationsintwocases, includingreducingthenumberofparticipantsandexpandingtheCCAboundariestoadjacentareas. Anothercommonchallengewithrecruitmentwasinsufficienttimeintheprogramschedule.Several projectdirectorssaidtheiragencieswouldhaveexpandedrecruitingeffortsifmoretimehadbeen available.Onesaidtheywouldhaverecruitedfrommorecommunityorganizations.Anothersaidthat theagencywouldhaveorganizedajobfairtomatchapplicantswithtransitionaljobemployerssothat subsidizedemploymentwouldbeavailableimmediatelyfollowingjobreadinesstraining. Undertheprogramtimeframe,granteesfounditchallengingtomeettheupfrontrequirementsfor documentationtodemonstrateparticipanteligibility.Granteeswererequiredtocollectcopiesof documentsshowingtheage,address,householdcomposition,householdincome,andwork authorizationofeachparticipant,andtosubmittheseto2016Fundstaffforapproval.The2016Fund requiredthisreviewbecausetheymightberequiredtoreturnmoneytothefederalgovernmentifan auditfoundthatJobStarthadservedTANFineligibleparticipants.Someprojectdirectorsreportedthat thecollectionofcompletedocumentationwasdifficult,especiallyforspecifictypesofparticipants.One saidthatitwasdifficultforparticipantstoprovidedocumentsshowingtheireligibilityasnoncustodial
34

Threeyouthp programproje ectdirectorsdescribedpro oblemscollec ctingdocume entationthatw was parents.T specificto oyouth.Youthoftendependedontheirparentsorg guardianstoo obtaindocum mentation,suchas birthcertificateandpu ublicbenefits srecords.Con nsequently,youthwhohad dtroubledrelationshipsw with entsorguardi iansorwhose eparentsorg guardianssim mplyfailedtofollowthroug gh,haddifficu ulty theirpare demonstr ratingeligibility.Severalpr rojectdirecto orsnotedthat ttheprocessoftransmittingphysicalco opies ofeligibili itydocument tationtothe2 2016Fundwa ascumbersom me,thoughoneprojectdirectorsaidth hat the2016Fundprovide edexcellentturnaroundinreviewingandapprovin ngthesubmit ttedfiles. Whilegranteesfoundt theprocesso ofdocumentc collectionand dreviewchallenging,seve eralproject directorsperceivedthe ethoroughre eviewbythe2016Fundat tthebeginnin ngoftheprog gramaspositive. Onesaidt thatthefiler reviewproces sshelpedtheagencyident tifyandeliminatemistakesearlyon. Anothers saidthatthep processwash helpfulbecau useitensured dthatthe201 16Fundwould dnotlaterde eem anenrolle edparticipant tineligiblean ndremovethe eparticipantfromthepro ogram.

JobStar rtProgram mDesignSn napshot

Participantenrollswithgranteeagenc cy. Grante eeagencysubmi itseligibilitydoc cumentationtot the2016Fund.

Step p1

Step p2

Grante eeagencyassess sesparticipantto odetermineedu ucationalattainm ment,skills,wor rk experie ence,occupationalinterests,ca areergoals,andsupportiveserv viceneeds.

Step p3

Participantcompletesatleast30hour rsofjobreadine esstraininginthetwoweekspriortothe transitionaljob.

Step p4

Follow wingconfirmation nofeligibilityby ythe2016Fund, ,participantbeg ginsatransitiona aljob.Thejob providesbetween30a and40hoursofemploymentpe erweekatwagesbetween$8.25 5and$10.00per hour,s setbythegrante ee. During gthetransitionaljob,participant treceivescasem managementandsupportiveser rvicesintendedt to helphi imorhermainta ainthetransitionaljobandfindanunsubsidized djob.

Step p5

Thetra ansitionaljoben nds(nolaterthanSeptember30 0,2010)andtheparticipanttran nsitionsintoan unsubs sidizedjob,educ cationortraining,oranotherjobsprogram.

35

Assessment
Beforebeginningjobreadinesstrainingandsubsidizedemployment,granteeswererequiredtoassess participantstodeterminetheireducationalattainment,skills,workexperience,occupationalinterests, careergoals,andsupportiveserviceneeds.Granteeswereinstructedtouseformaltestsor instrumentsandinterviewsintheirassessments,butwereotherwiseaffordedbroaddiscretionover howtoassessparticipants.44Figure9showsthetypesofassessmentusedasreportedbyGranteeStaff Surveyrespondentswhoworkedonassessingparticipants.Themostcommonlyusedtypesof assessmentweretheTestofAdultBasicEducation(TABE),individualinterviews,andgroupinterviews. Figure9:MeansofAssessingJobStartParticipantsasReportedbyGranteeStaffSurveyRespondents45
TestofAdultBasicEducation(TABE) Individualinterview MeansofAssessment Groupinterview Grantee'sownstandardizedassessment Anotherstandardizedassessmentofbasicskills Anotherstandardizedassessmentofcareerinterests BarrierstoSuccessInventory(BESI) VocationalResearchInterestInventory WorkKeys 0.0% 4.5% 4.5% 2.3% 2.3% 2.3% 20.0% 40.0% PercentageofRespondents 60.0% 80.0% 13.6% 25.0% 63.6% 59.1%

Mostprojectdirectorssaidthatadditionaltimeforassessmentwouldhaveimprovedtheirassessment procedures,enablingtheiragenciestoacquiremoreinformationaboutparticipantsandprovide supportiveservicesmoreeffectivelylaterintheprogram.Twoprojectdirectorsexplainedthatsome participantshadhiddenbarrierstoemploymentwhichstaffdidnotlearnaboutuntillaterinthe program,suchasunstablechildcarearrangementsorhousing.Onearguedthatadditionaltimetobuild trustandarelationshipwithparticipantswouldhaveenabledstafftolearnaboutthesebarriersbefore participantsenteredsubsidizedemployment. OneprojectdirectorsaidthatthedemandingtimelineforenrollmentintoJobStartprecludedtheagency fromcarryingoutitsregularrecruitmentandassessmentprocess,whichinvolvesextensivewritten testingandhandsonactivitiestoselectparticipantsthegranteebelievesmostabletobenefitfromaTJ program.ThegranteereceivesmostrecruitsfromothersocialservicesagenciesfamiliarwithitsTJ program.Inthefirststageofitstypicalprocess,recruitscompletetheTABEandabriefwrittenexercise toscreenoutrecruitswithliteracybelowthesixthgradelevel.Thesecondstage,conductedover2 days,includesadditionalwrittentesting,anessay,andactivitiesinwhichrecruitscompletehandson tasksinsmallgroups.Theresponsesofrecruitstotheseactivitiesenablestafftoidentifyrecruits motivatedtosucceedinaTJprogramandabletocooperatewithothersandtoselectoutthoserecruits whomightruintheexperienceforothers.BecausetheJobStarttimelineprecludedtheregular
44 45

ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.12) AnalysisofJobStartGranteeStaffSurveyresponses.N=44.Respondentsselfidentifiedashavingworkedonassessingparticipants.

36

recruitmentandassessmentprocess,theprojectdirectorsaidthatthegranteeenrolledsomeJobStart participantswhowereunmotivatedtoworkandthatitwasunabletohelpsomeJobStartparticipantsto becomeworkreadybytheendoftheprogram. Regardingtheparticipantcharacteristicsthatgranteesassessed,twogranteeprojectdirectorssaidthat theywouldhavelikedtoassessenrolleeaptitudesandcareerinterestsmoreeffectively.Onesaidthat additionalaptitudeandinterestassessmentwouldhavehelpedstaffprovidejobcoachingandhelped participantsdevelopaplanforafterthetransitionaljobended.Theothersaidthatadditional assessmentintheseareaswouldhavefacilitatedjobplacementandcareerplanningbyhelping participantsinventorytheiraptitudes,interests,andskills.

JobReadinessTraining
InmanyTJprograms,trainingaboutthesoftskillsnecessarytomaintainemploymentprecedes placementintransitionaljobs.TheJobStartprogramdesignrequiredparticipantstocompleteatleast 30hoursofjobreadinesstrainingwithinthe2weekspriortobeginningsubsidizedemployment,and granteescouldelecttoprovidemorethan30hoursofjobreadinesstraining.Granteeswereinstructed tocoverworkplacebehavior,includingworkethic,communicationskills,timeliness,andappropriate dress;financialliteracyandbanking;customerservice;jobsearchandapplicationskills,including resumepreparationandinterviewing;andjobspecificskillstrainingortraininginskillscommontomany jobs,suchascomputeruse.Granteeswerealsoinstructedtoregisterparticipantswithanonlinejob searchserviceandhelpparticipantsopenbankaccountstoallowforelectronicdeliveryofwages.46 Granteestaffreportedthattheiragenciescoveredmost requiredtopicsbeforeorduringthetransitionaljob.Over90 Ilearnhowtogetreadyforajob percentofGranteeStaffSurveyrespondentswhoprovidedor andhowtointeractonan interview.JobStartParticipant helpedparticipantsaccessjobreadinesstrainingreportedthat theiragenciescoveredallsoftskillsandjobsearchtopics requiredbytheprogramdesign.Regardingtheotherrequired topics,88.6percentreportedthattheiragenciescoveredcomputerliteracyorsoftwareapplications; 80.0percentcoveredregistrationwithanonlinejobsearchfirm;70.5percentcoveredbasicreading, writing,ormathskills;andlessthanhalfreportedthattheiragenciesprovidedGEDandESLtraining.47 Severalprojectdirectorssaidthatalongerinitialjobreadinesstraining,oralternately,followuptraining duringthetransitionaljob,wouldhavehelpedparticipantsmaintaintheirtransitionaljobsandincreased theirjobreadiness.Onesaidthatadditionaljobreadinesstrainingwouldhavereducedemployer complaintsaboutlackofprofessionalism,timeliness,andabsencesamongparticipants.Anothersaidthe agencywaslimitedtopreparingparticipantsforthefirstdayofworkandnotmuchmorewithinthe2 week,30hourjobreadinesstrainingrequiredbyJobStart.Bothsaidthatongoingjobreadinesstraining, inwhichparticipantsvisitedtheprogramofficeonceperweekduringtheirtransitionalemployment,
ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.1314) AnalysisofGranteeStaffSurveys.N=51fortrainingoncommunicationsskills;N=46fortrainingondevelopingagoodworkethic,getting alongwithcoworkers,handlingdifficultsituationsorangermanagement,handlingstress,problemsolving,teamwork,timelinessandtime management,understandingemployersexpectations,andworkplacediversity;N=45fortrainingonappropriateworkplaceclothing, interviewskills,jobsearchskills,job,industry,oroccupationspecificskills,registrationwithanonlinejobsearchfirm,andresumepreparation; N=44forbasicreadingwriting,ormathskills,computerliteracyorsoftwareapplications,customerservice,andfinancialliteracy;N=41for GEDtraining;andN=39forESLtraining.Respondentsselfidentifiedashavingworkedonprovidingorhelpingparticipantstoaccessjob readinesstraining.TheJobStartprogramdesignrequiredgranteestoprovidebasicacademicskillstraining,GEDtraining,andESLtrainingfor thoseParticipantswithlowreadingormathscoresonthebasicskillstests,withlimitedEnglishproficiencyorwithotherrelatedbarriers. ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.14)
47 46

37

wouldhavehelpedparticipants.Athirdsaidthattheagencystructuredjobreadinesstrainingtoinclude 1fullweekoftrainingfollowedby1dayperweekoftrainingattheprogramoffice.Followingtheinitial week,participantsspentonehalfofeachtrainingdayingroupcasemanagementsessionsandtheother halfonjobsearchandcareerexplorationtopics.Theparticipantsworkedincrews,andcrewsattended groupsessionstogether,enablingparticipantstodiscussproblemsatworkwiththeircoworkerswhile theproblemswerestilllive. Inadditiontolongerinitialjobreadinesstrainingorfollowuptrainingduringsubsidizedemployment, severalprojectdirectorsrecommendedpayingparticipantsforjobreadinesstraining.Theyarguedthat paymentfortrainingwouldhaveincentivizedattendanceandreducedretentionproblemsduringthe initialweeksoftheprogram.Oneexplainedthatpayingyouthfortimespentintrainingwouldhave beenhelpfulbecausesomeyouthparticipantshadsubstantialresponsibilitiesathome.Somewerethe soleearnersintheirfamiliesandsomewereparents.Consequently,itwasdifficultforthemtoattend trainingwithoutcompensation. WagesforjobreadinesstrainingdidnotqualifyforreimbursementfromtheTANFEF.Consequently, granteeswerenotallowedtopaywagesforjobreadinesstrainingusingJobStartfunds.Toincentivize trainingcompletionintheabsenceofwages,fourgranteesofferedcashorgiftcardrewardsto participantswhocompletedjobreadinesstraining.Oneadultprogramgranteeoffered$200rewards, andtwoothergrantees,oneanadultprogramgranteeandtheotherayouthprogramgrantee,offered $100rewards.48Theprojectdirectoroftheyouthgranteesaidthatsomeparticipantswouldhaveexited theprogramwithoutthereward. Oneyouthprogramprojectdirectorrecommendedinvolvingemployerrepresentativesinjobreadiness training.Theprojectdirectorobservedthatparticipantsneededalotmorepreprogramhelpthanwe initiallythought.Somewerenowherenearreadytogotoworkinaprofessionalofficesetting.These participantshadunrealisticexpectationsregardingwagesandworkingconditionsassociatedwithentry leveljobsandnoconceptionofanemployeesrolewithinthebiggermachineryofanemployer.The projectdirectorrecommendedhavingsupervisorsandmanagersfromlocalemployersexplaintheir expectationsforworkethictoparticipantsaspartofjobreadinesstraining.

TransitionalJobs
TheJobStartprogramdesignaffordedgranteesconsiderableflexibilityregardingthetypeofemployers theycouldenrollandthekindsoftransitionaljobstheycouldprovide.Participantscouldworkforfor profit,nonprofit,orgovernmentagencies.However,programrulesalsocontainedseveralprovisionsto ensurethatthetransitionaljobprovidedmeaningfulworkexperiences. First,the2016Fundcommittedtoreviewingdescriptionsoftransitionaljobsandinformationabout proposedworksitestoensurethattheParticipants[would]haveaproductivelearningandwork experience.The2016Fundstaffcouldrequestmodificationofjobresponsibilitiesandcoulddeema worksiteineligible.49Granteestaffwererequiredtovisiteachworksiteatleastonceduringthefirst2 weeksofthetransitionaljobtoensurethatparticipantswereengagedinmeaningfulworkandtorevisit eachworksiteatleastonceduringtheremainderoftheprogram.
48

Theprojectdirectoroftheothergranteeindicatedontheprojectdirectorsurveythattheagencyofferedareward,butdidnotindicatethe amountofthereward. 49 ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.22)

38

Second,employerswererequiredtosignamemorandumofagreement(MOA)detailingtheir responsibilities.Responsibilitiesincludedprovidingmeaningfulworkactivitiesandsufficientworkto occupyeachparticipantsagreeduponworkhours.Additionally,theMOArequiredemployersto mentorandsupervise[participants]toensureskillandexperienceacquisitionadequatetopursuethe employment.ThisprovisionallowedIDHStocountemployersupervisionandtrainingastheinkind contributionrequiredtodrawdownreimbursementfromtheTANFEmergencyFund.TheMOAalso includedprovisionstohelpgranteesmonitoreachparticipantsprogress.Itrequiredemployerstonotify thegranteeofunsatisfactoryperformanceorbehaviorbyparticipantsandtopermitmonitoringand evaluationofparticipantsattheworksiteonaregularbasis.Finally,thenumberofparticipantsateach worksitewaslimitedto10inordertoallowforadequatesupervisionofeachparticipant.50 Thetransitionaljobwastolastupto16weeksandprovidebetween30and40hoursofworkeach week.GiventheprogramenddateofSeptember30,participantsmusthaveenteredthetransitionaljob nolaterthanJune14inordertoworkforthefull16weeks.Granteeswererequiredtosetwagesfor adultparticipantsbetween$8.25perhour(theIllinoisminimumwageasofJuly1,2010)and$10.00per hourateachworksite.Allyouthparticipantsweretobepaid$8.25perhour.51

EmployerRecruitment
Projectdirectorsidentifiedthreeoverallcharacteristicsofa desirableTJprogramemployer: 1. AnemployershouldunderstandtheTJprogrammodeland thebalancethataTJprogrammuststrikebetweenallowing participantstomakeandlearnfromtheirmistakes,onthe onehand,andestablishinganauthenticworkenvironment thatpreparesparticipantsforarealjobontheother. 2. Anemployershouldhaveimportanttasksforparticipants tocarryoutandopeningsthatitneedstofillandviewthe TJprogramasasourceofpotentialpermanentemployees. Asoneprojectdirectorstated,adesirableemployershould viewtheTJprogramnotasasourceoffreelabor,butasa meanstotrainfutureemployeesatnocosttoitself. 3. Anemployershouldoffersometrainingandexperience valuedbyotheremployers,helpingparticipantsdevelop theirresumes.Evenifthetransitionaljobemployerdoes notpermanentlyhireaparticipant,thetrainingand experiencethattheparticipantacquireswillhelphimorher gainemploymentwithanotheremployeraftersubsidized employment. Figure10showsmeansofrecruitingemployersreportedby GranteeStaffSurveyrespondentswhoworkedonrecruiting transitionaljobemployers.Amongthesestaffpeople,84.4 percentreportedthattheiragenciesaskedemployersthey werealreadyworkingwithtoparticipateand81.3percent
50 51

SnapshotofEmployer Memorandumof Agreement Employerswererequiredto signamemorandumof agreement(MOA)detailing theirresponsibilitiessuchas thefollowing:

Providemeaningfulwork activities Providesufficientworkto occupyeachparticipants agreeduponworkhours Providementoringand supervisionof participantstoensure skillandexperience acquisitionadequateto pursueemployment

ChicagoCommunityTrust(ChicagoNeighborhoodJobStartworksitememorandumofagreementreceivedNovember3,2010) ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.1516,27)

39

reportedthattheiragenciesaskedemployerstheyhadnotworkedwithtoparticipate. Figure10:MeansofRecruitingJobStartEmployersasReportedbyGranteeStaffSurveyRespondents52
Askedemployersgranteeworkswithtoparticipate Askedemployersgranteehadnotworkedwithtoparticipate MeansofRecruitment Communityorganizations Askedemployersgranteeworkswithtoreachout Askedemployersgranteerecruitedtoreachout Grantee'smarketingmaterials Marketingmaterialsfromthe2016Fund Aldermenorotherelectedofficials ChamberofCommerce Jobfairorsimilarevent 0.0% 3.1% 20.0% 40.0% 60.0% 80.0% 100.0% 53.1% 50.0% 40.6% 31.3% 21.9% 18.8% 15.6% 84.4% 81.3%

PercentageofRespondents

Figure11showschallengeswithrecruitmentreportedbyGranteeStaffSurveyrespondentswhoworked onrecruitingtransitionaljobemployers.Overall,itsuggeststhatgranteesexperiencedrelativelyfew challengesrecruitingemployers. Figure11:ChallengesRecruitingJobStartEmployersasReportedbyGranteeStaffSurvey Respondents53

Nochallenges Notenoughemployersresponded ChallengewithRecruitment Toofewsuitabletransitionaljobs Difficulttodeterminewhethertransitionaljobsweresuitable Toofewsuitableworksites Difficulttodeterminewhetherworksitesweresuitable Insufficientstaffforrecruitment Insufficientmaterialsorresources Notenoughsupportfrom2016Fund Toomanyemployersresponded 0.0% 7.1% 3.6% 3.6% 20.0% 40.0% 60.0% 25.0% 21.4% 17.9% 17.9% 14.3% 14.3% 42.9%

PercentageofRespondents

52 53

AnalysisofJobStartGranteeStaffSurveyresponses.N=32.Respondentsselfidentifiedashavingworkedonrecruitingemployers. AnalysisofJobStartGranteeStaffSurveyresponses.N=28.Respondentsselfidentifiedashavingworkedonrecruitingemployers.

40

Figure12showsreasonswhysomeemployersthatgranteesattemptedtorecruitdidnotwantto participateinJobStart.AmongGranteeStaffSurveyrespondentswhoworkedonrecruitingtransitional jobemployers,22.6percentreportedthatsomeemployersdidnotwanttoparticipatebecausethey lackedenoughpersonneltooverseeJobStartparticipants.Thesamepercentagereportedthatsome employersdidnotwanttoparticipatebecausetheemployershadnomeaningfulworkforJobStart participants.Bycontrast,only3.2percentreportedthatsomeemployersdidnotwanttoparticipate becausetheybelievedthatJobStartparticipantswouldnotbenefittheirbusinessesduetopoor interpersonalskillsandworkethicorloweducationalattainmentorskilllevels.

Figure12:ReasonsWhySomeEmployersRecruitedforJobStartDidNotWanttoParticipateas ReportedbyGranteeStaffSurveyRespondents54
ReasonThatEmployersDidNotWantto Participate Allwantedtoparticipate Notenoughpersonneltooverseeparticipants Nomeaningfulworkforparticipants Didnotstateareason Didnotwanttofollowprogramrulesandprocedures Perceivedpoorinterpersonalskillsandworkethicof participants Perceivedloweducationalattainmentorskilllevelsof participants 0.0% 3.2% 3.2% 10.0% 20.0% 30.0% 40.0% 50.0% 12.9% 22.6% 22.6% 19.4% 38.7%

PercentageofRespondents

EmployerCharacteristics
TheJobStartprogramdidnotsystematicallycollectdataonthetype,size,andindustryclassificationof participatingemployers.ThedatapresentedbelowaredrawnfromtheEmployerSurvey,whichwas senttoallemployersidentifiedinprogramrecords.Becausethe77respondentstotheEmployerSurvey constitutearelativelysmallproportionofthe268employerstowhomthesurveywassent,andbecause notallrespondentsansweredallsurveyquestions,cautionmustbeusedingeneralizingaboutthe characteristicsofallJobStartemployersfromEmployerSurveyresults. Figure13showsthelocationofJobStartworksiteaddressesandparticipantresidencesacrossthe77 CCAs.55

54 55

AnalysisofJobStartGranteeStaffSurveyresponses.N=31.Respondentsselfidentifiedashavingworkedonrecruitingemployers. AsmallnumberofJobStartworksiteswerelocatedoutsidetheCityofChicago.Toprovideaclearerpictureofthedistributionofworksites withinChicago,Figure12omitsworksitesoutsideofthecity.

41

Figure13:LocationofJobStartWorksitesandParticipantResidencesAcrossthe77CCAs56

Figure14showstheproportionofEmployerSurveyrespondentswhosebusinesseswereforprofit, nonprofit,andpublic.Nonprofitandforprofitemployersconstituted56.8percentand40.5percentof respondents,respectively.

56

AnalysisofJobStartprogramrecords.Mapreflects1,112participantaddressesand275businessaddressesthatcouldbeplotted.

42

Figure14:ProportionofForProfit,Nonprofit,andPublicEmployersAmongEmployerSurvey Respondents57
Public 2.7%

Forprofit 40.5%

Nonprofit 56.8%

Figure15showsthesizeofbusinesseswhorespondedtotheEmployerSurvey,expressedasnumberof employeesonpayrollbeforeJobStartparticipantsenteredtransitionalemployment.Onaverage, respondentsemployed29peoplepriortoJobStart.Overhalf(54.1percent)employed10orfewer people,andtheoverwhelmingmajority(85.2percent)employed50orfewerpeople.

Figure15:SizeofEmployersthatRespondedtotheSurvey58
45.0% 40.0% PercentageofRespondents 35.0% 30.0% 25.0% 20.0% 14.8% 15.0% 10.0% 5.0% 0.0% 5orfewer 6to10 11to20 21to30 31to40 41to50 51to100 100ormore 8.2% 1.6% 1.6% 9.8% 4.9% 19.7% 39.3%

NumberofEmployeesonPayrollBeforeJobStart

57

AnalysisofJobStartEmployerSurveyresponses.N=74.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional jobaccordingtoprogramrecords. 58 AnalysisofJobStartEmployerSurveyresponses.N=61.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional jobaccordingtoprogramrecords.

43

Table7providesanoverviewofthetypeofemployersusedbyJobStartgranteesandshowsthewages paidbygrantees.Overall,employerswereheavilyconcentratedinservices,includingchildcarecenters, churches,schools,propertymanagementandlandscapingcompanies,forprofitandnonprofitretail stores,fastfoodandfullservicerestaurants,andbeautysalons.Lessconventionalemployersincludeda funeralhome,akennel,ametalsfinishingcompany,andanonprofitorganizationthatspecializesin convertingunusedurbanlandintosustainablefarms. Table7:TypeofEmployersParticipatinginJobStart59

Grantee AlternativeSchools Network AssociationHouse ofChicago CentersforNew Horizons CentralStatesSER Numberof employersa 10 6 13 Samplingofemployerstypes Charterschools,insurancecompany,parkdistrict,nonprofit retailstore,church,aldermansoffice Grantee,publicschools,city agency,propertymaintenance company,nonprofitretailstore Transitionaljob wage Adult $8.50/ $9.50b Youth $8.25

Realestateagency,grantee,publicschools,movingcompany, $9.00 forprofitretailstore,informationtechnologycompany, othernonprofits Variousnonprofits,childcarecenters,restaurants,insurance $10.00 agencies,realestateagency,forprofitretailstore,kennel, funeralhome,laundry,lawfirm,salons Restaurants,churches,forprofitretail store,various nonprofits,grantee/subcontractors,propertymanagement, daycare,realestateagency,informationtechnology Cleaning,propertymanagement,landscaping,autorepair, grantee,insurance Manufacturing,nonprofitretail store,church,healthcenter, grantee,restaurant Landscaping,forprofitretail store,security,property management,foodprocessing,childcare Urbanagriculture Realestate,churches,school,childcare,mortgagebroker, broadcasting,salon,grantee,marketing Wastedisposal,restaurants,landscaping,grantee,cemetery Preschool,variousnonprofits,restaurant,insurance $10.00

52

ChicagoHousing Authority HeartlandHuman CareServices Inspiration Corporation NationalAble Network OAI,Inc. PhalanxFamily Services SaferFoundation WestsideHealth Authority
a

76

$8.25

17 7 24 1 32 7 30

$10.00 $9.00 $9.25 $9.00 $10.00 $9.00

$8.25 $8.25

Countofemployersassociatedwithoneormoreparticipantswhoworkedinatransitionaljob.Employerswiththesamenamethatmayhave beenoperatedbydifferentownersoroperators(e.g.,chainrestaurants)werecountedasasingleemployer.Thenumberofemployersusedby eachgranteesumstomorethan268,thenumberofemployersusedacrossallgrantees,becausesomegranteesusedsomeofthesame b employers.Anindividualemployermayhaveemployedparticipantsatoneormorelocationsorworksites. Threeleadworkerswerepaid$9.50 perhour.

59

AnalysisofJobStartprogramrecords.

44

TransitionalJobataMetalsFinishingCompany TheexperienceofalocalmetalsfinishingcompanywithJobStartappearstoexemplifytheuseofa TJprogramasasourceofpotentialemployeesbyaforprofitemployer.Agranteeplacedfour participantswiththisemployer.Participantsstartedtheirtransitionaljobscleaninguparoundthe worksiteandpaintingandgraduallyprogressedtoperformingsomemanufacturingtasks.The projectdirectordescribedtheemployerasassessingandscreeningtheparticipantsthroughout theirtransitionaljobs.Attheendofsubsidizedemployment,theemployerpermanentlyhiredone ofthefourparticipants,anexoffenderreferredtothegranteefromahousingprogram.The participantwasearningawageof$12.00perhourbyearly2011.Thisexperiencerepresentsa successfulinstanceofaforprofitemployerusingJobStarttomeetitsbusinessneedswhilehelping aparticipantwithbarrierstoemployment(i.e.,housinginstabilityandacriminalrecord)acquire softskills,industryspecificskillsandexperience,andafootholdinthelabormarket.
Granteeswererequiredtosetwagesforadultprogramparticipantsbetween$8.25and$10.00per hour.Twoprojectdirectorsreportedthattheiragenciessettheadultprogramwagetomatchthewages paidbytheirexistingTJprograms,andtwoothersreportedthattheiragenciessetthewagetoprevent PITWorTJprogramsoperatedbyotheragenciesfromdrawingawaytheirparticipants.60Twosaidthat theiragencieswantedtosetthewagehighenoughabovetheIllinoisminimumwagetohelp participantsmeettheirfamiliesmaterialneeds.Mostsaidthattheiragenciesexperiencednoproblems retainingadultprogramparticipantsasaresultofthewagestheyset. OnthebasisoftheirexperiencewithJobStartandothersubsidizedandtransitionalemployment programs,granteeprojectdirectorsobservedthatdifferenttypesofemployersofferuniqueadvantages anddisadvantagesastransitionaljobemployers.Smallforprofitandnonprofitemployerstendto accommodatebarrierstoemploymentmorereadilythanlargeforprofitemployersandtendtooffer participantsmoreindividualattention.Oneprojectdirectorobservedthatsmall,locallyowned businesseswithinthedesignatedCCAsweremorelikelytobringonJobStartparticipantsandlesslikely todiscriminateagainstparticipantsonthebasisofrace,culture,andlackofworkexperiencethanother employers.Thesameprojectdirectoralsoobservedthatthenonprofitemployersthattheagencyused forJobStartweremoreforgivingofmistakesthanotheremployers.However,smallemployerswereless likelytohireparticipantspermanentlyaftersubsidizedemploymentasaresultoftheirrelativelysmall budgetsandfewjobopenings. Bycontrast,largeforprofitemployersareabletobringonrelativelylargenumbersofparticipantsand offerdifferenttypesoftransitionaljobswithinoneworksite.Forexample,aprojectdirectorwhose agencyplacesclientsatalargeretailstoreaspartofitsnonJobStartemploymentprogramexplained thatthestoreoffersavarietyofcustomerserviceandfoodservicejobstofitthedifferentcareer interestsofparticipants.Anotherprojectdirectorsuggestedthatparticipantsworkingatalarge employermightfacelessstigmatizationthanparticipantsatasmallemployer.Thedirectorsagency usedadepartmentstoreasaJobStartemployer,andthedirectorobservedthatthesizeofthestore reducedthevisibilityofJobStartparticipants,eliminatingtheproblemofconflictbetweenTJprogram participantsandregularemployeesthatsometimesoccursatsmallerworksites.Projectdirectorsalso observedthatlargeforprofitemployersaremorelikelytohireparticipantsaftersubsidized employment.However,theyreportedthatlargeforprofitemployersweremoredifficulttoenrollinto
60

PITWpaid$10.00perhourtoallparticipants.

45

JobStartthansmallemployersbecauseenrollingtheseemployersrequiredapprovalfromtheirrelatively largebureaucracies.Severalprojectdirectorsrecalledthattheiragenciesapproachedlargeemployers aboutparticipatinginJobStartbutwereunableobtainapprovalthroughtheirbureaucraticprocessesin time.Additionally,largeforprofitemployersprovedlesslikelythansmallforprofitandnonprofit employerstotakeonJobStartparticipantswithbarrierstoemploymentbecausethelargeemployers tendedtobelessflexibleregardingchallengespresentedbyemployeebehavior. Usingadiversesetofemployersappearstohavehelpedseveralgranteesprovidesuitableplacements forparticipantswithdifferentskillandworkreadinesslevels.OnegranteeusedChicagoPublicSchools (CPS),theChicagoDepartmentofStreetsandSanitation,anonprofitretailstore,anditsfoodpantryas JobStartemployers.CPS,whereparticipantsworkedonstudentregistration,requiredthehighestskill level.TheDepartmentofStreetsandSanitationandtheretailstorerequiredintermediateskilllevels, andthefoodpantryrequiredlessskillthanotheremployersthatthegranteeused.Anothergrantee usedadepartmentstoreandanaldermanicwardoffice.Themostskilledandworkreadyparticipants wereplacedatthedepartmentstoreandtheleastworkreadywereplacedatthealdermanicward office,whichacceptedparticipantsregardlessoftheirbarrierstoemployment.

PlacementintoTransitionalJobs
Granteesmatchedparticipantswithemployersbyconsideringthecareerinterestsandskillsof participantsandtheproximityofparticipantresidencestoworksites.Twogranteesrequiredparticipants tointerviewwithprospectiveemployersattheprogramoffice.Onegranteeprojectdirectorsaidthat theagencyattemptedtomaketheinterviewprocesssimulatereallifeinterviewsasmuchaspossible andthatthepresenceofemployersattheprogramofficehelpedmotivateparticipants.Onlyafew participantswerenothiredthroughtheinterviewprocess,andsomeparticipantsreceivedoffersfrom twoorthreeemployers. OneprojectdirectorsaidthattheagencydevelopedasystemofconsultationamongtheJobStartcase manager,jobdeveloper,andjobreadinesstrainerthatworkedwellformatchingparticipantsand employers.Duringthesecondweekofjobreadinesstrainingforeachcohortofparticipants,thesethree staffpeoplemettorevieweachparticipantsbarrierstoemployment,interestsandabilities,andjob readiness.Eachstaffpersoncontributedimportantinformationforplacement:thecasemanager contributedinformationabouteachparticipantsinterestsandbarrierstoemployment,thejob developercontributedinformationaboutthejobcontentandskillrequirementsofemployers,andthe leadtrainercontributedinformationabouteachparticipantsjobreadiness.Basedonthisinformation, thethreestaffpeoplereachedanagreementaboutwheretoplaceeachparticipant.Additionally,the agencysjobdeveloperorprogrammanagerinterviewedeachparticipantattheendofjobreadiness trainingtoensurethattheparticipantwasjobreadyandthathisorherplacementwassuitable. Granteesplaced93.8percentofparticipantswhocompletedjobreadinesstrainingintotransitional jobs.61Themostcommonlyreportedreasonthatparticipantswhocompletedjobreadinesstrainingdid notentertransitionaljobswasthattheyexitedtheprogrambeforetheycouldbeplaced.Accordingto GranteeStaffSurveyrespondentswhoplacedparticipantsintotransitionaljobs,theseenrolleesexited becausetheyreturnedtoschool,foundregularjobs,orsimplydidnotwanttowork.Onestaffperson capturedfrequentobservationsofgranteeprojectdirectorsandstaffwhenshesaidthatsome participantsdidnottaketheemploymentserious[sic].Theylookedatitasmoreofasummerjoband notemploymentthatcouldhaveturnedintopermanentemployment.
61

Aparticipantiscountedplacedinatransitionaljobifheorsheworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords.

46

 Table8showsthemostcommontasksperformedbyJobStartparticipantsasreportedbyEmployer Surveyrespondents.Nearlyhalf(46.2percent)reportedthatparticipantstheyemployedperformed administrativeandclericaltasks,and41.8percentreportedthatparticipantsperformedjanitorialand maintenancetaskssuchaslandscapingandindoorcleaning.Theoverwhelmingmajority(74.7percent) reportedthatparticipantsperformedmorethanoneofthetaskslisted. Table8:TypeofTasksPerformedbyJobStartParticipants62

Typeoftask Administrativeandclerical(e.g.,answeringphones,filing,dataentry) Janitorialandmaintenance(e.g.,landscaping,cleaningaclassroom, sortingrecyclables) Customerservice Teachersaid Labororspecializedmaintenance(e.g.,demolition,operatingaforklift, helpingtorepairmachinetools) Childcare Manufacturing,packaging,orprocessing(e.g.,makingsoapandspa products,boxingandlabelingmeat) Salesormarketing(e.g.,telemarketing) Security Shipping,receiving,ordelivery(e.g.,sorting andorganizingfood shipments) Stockingororganizingmerchandise Tutoring Eventortrainingassistance(e.g.,safetytraining,eventplanning) Foodservice Research(e.g.,grantresearch) Campaidorleader
a

ProportionofemployerswhoseJobStart participantsperformedeachtaska 46.2% 41.8% 19.8% 11.0% 11.0% 7.7% 6.6% 5.5% 5.5% 4.4% 4.4% 4.4% 3.3% 3.3% 2.2% 2.2%

Percentagessumtomorethan100becauseeachemployercouldindicateuptothreetaskscommonlyperformedbyparticipants.

EmployersthatparticipateinTJprogramsmayprovideparticipantswithsomesupports,includingextra trainingorguidanceregardingappropriateworkplacebehavior,assigningapeermentororcoach,and modifyingregulardisciplinaryprocedurestoaccommodatemistakesandfacilitatelearningby participants.Figure16showsthepercentageofEmployerSurveyrespondentswhoreportedproviding thesesupports.Slightlyoverhalf(53.4percent)reportedprovidinginformaltrainingorguidance regardingworkplacebehavior,andalmosthalf(49.3percent)reportedassigninganexperienced coworkertoserveasapeermentororcoachtoJobStartparticipants.Bycontrast,only17.8percent reportedthattheymodifiedregulardisciplinaryprocedures.

62

AnalysisofJobStartEmployerSurveyresponses.N=91.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional jobaccordingtoprogramrecords.

47

Figure16:SupportsProvidedtoParticipantsbyEmployerSurveyRespondents63
60.0% PercentageofRespondents 50.0% 40.0% 31.5% 30.0% 20.0% 10.0% 0.0% Providedinformaltrainingor Assignedanexperienced Nosupportsbeyondthosein Modifiedregulardisciplinary guidanceregardingworkplace coworkertoserveasapeer worksiteagreement orcorrectiveprocedures behavior mentororcoach SupportProvided 17.8% 53.4% 49.3%

Severalprojectdirectorsobservedthatpossessionofadditionalhardskillsthatcutacrossmany industrieswouldhavehelpedparticipantsintheirtransitionaljobs.Onerecalledthatmostofthe agencysJobStartparticipantshadneverusedacomputerandneededtolearnbasiccomputerskills suchascreatingadocument,savingafile,andattachingafiletoanemail.Anotherrecalledthat employersusedbytheagencywantedmoreparticipantswithMicrosoftOfficeskills,administrativeand clericalexperience,andchildcarelicensureandexperience.Athirdrecalledthatbasicquantitativeskills wouldhavehelpedsomeparticipantsintheirtransitionaljobs.Afoodstoreusedbytheagencys JobStartprogramrequiredparticipantstotakeatestofbasicquantitativeskills,suchascountingchange andweighinggoods,atitsorientation.Noneoftheparticipantswereprepared,andallfailedtheteston thefirstattempt.(Someparticipantsreturnedandpassedthetest,andtheemployerhiredtwoofthese participantsafterthetransitionaljobended.)Theprojectdirectorsaidthatthisincidenthighlightedthe needforbasicindustryspecifictraining,suchastraininginhandlingcash,customerservice,orchildcare, beforeandduringsubsidizedemployment.

Table9showshoursworkedandwagesearnedbyJobStart participantsplacedinsubsidizedemployment.AppendixB Iwasworkingeverydayproudly. providesthesamedatabrokenoutbyCCA.Onaverage,adult IfeltlikeIwasimportanttomy participantsworkedsubstantiallymorehoursandweeksthan workplace.JobStartParticipant youthparticipants,mostlikelybecausemanyyouthreturned toschoolattheendofthesummer,wellbeforethe September30,2010,programenddate.Theaverageadult worked319hoursover9.1weeks(35hoursperweekonaverage),whiletheaverageyouthworked184 hoursover6.9weeks(27hoursperweekonaverage).64

63

AnalysisofJobStartEmployerSurveyresponses.N=73.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional jobaccordingtoprogramrecords. 64 Youthprogramparticipantswereallowedtoworklessthan30hoursperweekinatransitionaljobwhentheyreturnedtoschool.

48

Table9:HoursWorkedandWagesEarnedinJobStartTransitionalJobs65
Adults Numberofparticipantswhoworkedinatransitionaljob Totalhoursworked Averagehoursperparticipant Averagenumberofweeksworked Averagenumberofhoursworkedperweek Maximumnumberofweekspossibleinprogram
d c a b

Youth 488 93.5% 89,754 184 6.9 27 16 43.1% 11 65.1% $743,223 $1,523 $8.28 $56,898 $6,499

Total 1,518 93.8% 418,500 276 8.4 33 16 52.5% 10 80.3% $3,936,423 $2,593 $9.41 $297,117 $82,026

1,030 94.0% 328,747 319 9.1 35 16 57.0% 10 87.6% $3,193,201 $3,100 $9.71 $240,219

Percentageofparticipantswhoworkedinatransitionaljob

Averageweeksworkedasapercentageofmaximum Averageweekspossiblegivenparticipantstartdatee Averageweeksworkedaspercentageofaverageweekspossible Totalwagesearned Averagewagesperparticipant Averagewagesperhour TotalFICApayments TotalWorkers'Compensationpayments

a

$75,527
b

Allparticipantsworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords. Numberwhoworkedinatransitionaljobasa percentofparticipantswhocompletedjobreadinesstraining,worked1ormorehoursinatransitionaljob,orbothaccordingtoprogram c d records. Weeksbetweenstartandendofsubsidizedemploymentwerecalculatedusingprogramrecords. WeeksbetweenJune14and e f September30,2010. WeeksbetweenstartofsubsidizedemploymentandSeptember30,2010. Onegranteethatservedyouthparticipants paidwagesof$8.50perhourinsteadof$8.25perhourtomaintainwageparitywithanotherprogram.

Onaverage,adultparticipantsworkedforonly9ofthe16weekspossible(57.0percentofthemaximum numberofweekspossible)iftheyhadenteredatransitionaljobonJune14,2010.However,mostadults enteredtransitionaljobsafterthisdate.Giventheirstartdates,adultshadonly10weekspossible,on average,inatransitionaljob.Framedthisway,adultsworkedfor9ofthe10weekspossiblegiventheir startdates(87.6percentofweekspossible),onaverage.

Approximatelytwothirds(61.6percent)ofallparticipantsremainedintheirtransitionaljobsthrough September30.Table10showsreasonswhysomeparticipantslefttheirtransitionaljobsbeforeJobStart endedasreportedbyGranteeStaffSurveyrespondentswhoworkedonprovidingcasemanagement. Overhalfreportedthatsomeparticipantsleftbecausetheywereterminatedbytheiremployers, becausetheywerenoshowsanddidnotreengagewiththeiragencies,orbecausetheydidnotlike theirsubsidizedjobsorworksites.Slightlylessthanhalfreportedthatsomeleftbecausetheywere terminatedbythegranteeforbreakingtheCodeofConductorbecausetheyreturnedtohighschool. Slightlymorethanonequarterreportedthatsomeleftbecausetheycouldnotaccesschildcareand becausesomewerehiredbytheirJobStartemployeroranotheremployer.

65

AnalysisofJobStartprogramrecords.

49

Table10:ReasonsParticipantsLeftTheirTransitionalJobsBeforeJobStartEndedasReportedby GranteeStaffSurveyRespondents66
Reasonwhysomeparticipantslefttheirtransitionaljobsbefore JobStartended Terminatedbyemployer Didnotlikesubsidizedjoborworksite Noshowanddidnotreengagedwithgrantee TerminatedbygranteeforbreakingtheCodeofConduct Returnedtohighschool Couldnotaccesschildcare HiredbyanemployeroutsideJobStart HiredbyJobStartemployer Terminatedbygranteeforanotherreason DidnotlikeanotheraspectofJobStart Couldnotaccessanothersupportiveservice Couldnotaccesstransportation Number ofrespondentsreportingreason (N =23) 15 14 14 11 10 6 6 6 4 3 2 1

Terminationbyemployerwasthemostcommonlyreportedreasonwhysomeparticipantslefttheir transitionaljobsbeforeSeptember30.Table11showsreasonswhysomeparticipantswereterminated asreportedbyEmployerSurveyrespondents.OverhalfofEmployerSurveyrespondentsreportedthat someparticipantswereterminatedforunexcusedabsences.Othercommonlyreportedreasonswere failuretoperformjobdutiessatisfactorily,failuretofollowdirectionsfromsupervisors,comingtowork lateorleavingearlyunexcused,andceasingtoshowupforwork.LessthanonequarterofEmployer Surveyrespondentsreportedthatsomeparticipantswereterminatedforotherreasons. Table11:ReasonsParticipantsWereTerminatedfromTheirTransitionalJobsasReportedby EmployerSurveyRespondents67

Reasonwhysomeparticipantswereterminatedfromtheir transitionaljobs Unexcusedabsences Didnotperformjobdutiessatisfactorily Didnotfollowdirectionfromsupervisors Cametoworklateorleftearlyunexcused Stoppedcomingtowork Argued/foughtwithcustomers/coworkers/supervisors Dressedinappropriately Other/unknown Undertheinfluenceofalcohol/drugsatwork Numberofgranteestaffreportingreason(N =32) 19 16 15 14 12 6 3 3 1

66 67

AnalysisofJobStartGranteeStaffSurveyresponses.N=23.Respondentsselfidentifiedashavingworkedonprovidingcasemanagement. AnalysisofJobStartEmployerSurveyResponses.N=32.Allrespondentsemployedatleastoneparticipantforatleast1hourinsubsidized employment.

50

CaseManagement
TheJobStartprogramdesignrequiredgranteestoprovideparticipantswithjobcoachingandmentoring throughoneononemeetingswithprogramstaffandgroupssessionswithotherparticipantsandwith casemanagementtohelpparticipantsaccesssupportiveservices.Onceeachweekforthefirst4weeks ofthetransitionaljobandonceevery2weeksthereafter,staffwererequiredtomeetindividuallywith participantstoidentifyareasforimprovementortoreinforcesuccess,andtofocusonthe participantswork,training,oreducationalgoalsafterthetransitionaljobended.Staffwerealso requiredtoaddresstheseissuesingroupsessionsheldevery2weeks.68Inadditiontocoachingand mentoring,granteestaffweredirectedtoassessparticipantneedsforsupportiveservicesduringone ononemeetingsandgroupsessions. Figure17showsthefrequencyofindividualcasemanagementreportedbyGranteeStaffSurvey respondentswhoworkedonprovidingcasemanagement.Ofthese,68.3percentreportedthat individualcasemanagementoccurredatleastonceeveryweekduringthefirst4weeksofJobStart. Nearlyathird(31.7percent)reportedthatitoccurredonceevery2weeks.Followingthefirst4weeks, theproportionreportingcasemanagementatleastonceperweekdecreasedto43.9percent,whilethe proportionreportingcasemanagementonceevery2weeksincreasedto41.5percent.Somestaffalso reportedthattheiragenciesbeganprovidingcasemanagementlessthanonceevery2weeks.These surveyresultssuggestthatnotallparticipantsreceivedindividualcasemanagementasfrequentlyas requiredbytheJobStartprogramdesign. Figure17:FrequencyofIndividualCaseManagementasReportedbyGranteeStaffSurvey Respondents69
60.0% 50.0% PercentageofRespondents 41.5% 40.0% 30.0% First4weeks 20.0% 10.0% 0.0% Morethanonceaweek Onceaweek Onceevery2weeks Lessthanonceevery2 weeks 14.6% 7.3% 0.0% 14.6% Afterfirst4weeks 36.6% 31.7% 53.7%

FrequencyofIndividualCaseManagement

Sevengranteesreportedthattheyprovidedgroupcasemanagement.Figure18showsthefrequencyof groupcasemanagementreportedbyGranteeStaffSurveyrespondentswhoworkedonprovidingcase management.Consistentwiththeprogramdesign,themajority(68.0percent)reportedthattheir agenciesprovidedgroupcasemanagementsessionsatleastonceevery2weeks.However,nearlyone third(32.0percent)reportedthattheiragenciesprovidedgroupcasemanagementlessthanonceevery 2weeks.

68 69

ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.16) AnalysisofJobStartGranteeStaffSurveyresponses.N=41.Respondentsselfidentifiedashavingworkedonprovidingcasemanagement.

51

Figure18:FrequencyofGroupCaseManagementasReportedbyGranteeStaffSurveyRespondents70
35.0% 30.0% PercentageofRespondents 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Morethanonceaweek Onceaweek Onceevery2weeks Lessthanonceevery2weeks 12.0% 28.0% 28.0% 32.0%

FrequencyofGroupCaseManagement

Projectdirectorswhoseagenciesprovidedgroupcasemanagementinsistedthatgroupsessions increasedtheeffectivenessofcasemanagement.Severalexplainedthatgroupsessionsoffered participantsanimportantsourceofsupportandencouragement.Theyshowedparticipantsthatthey werenotaloneinconfrontingthechallengesofworkandenabledparticipantstosolvetheproblems ofmaintainingajobtogether.Oneadultprogramdirectorexplainedthatagroupofparticipantshadto waitalongtimeforbackgroundchecksandotherapprovalsbeforetheycouldbeginworkashealth aidesforChicagoPublicSchools.Ingroupsessionsandattheirworksite,theparticipantsmotivatedeach otherandheldeachotheraccountableforthegoalofbecominghealthaidesthroughthewait. Additionally,groupsessionsenabledparticipantstoholdeachotheraccountablefortheirbehaviorand goals,sometimesmoreeffectivelythanoneononesessionswithacasemanager.Forexample,one youthprogramprojectdirectorrecalledagroupsessioninwhichayouthcritiquedanotheryouths inappropriateinteractionwithasupervisor.Thedirectorobservedthatparticipantsoftenresponded morereceptivelytocritiquesfrompeersthantocritiquesfromcasemanagers.Twoprojectdirectors alsoobservedthatgroupsessionshelpedcasemanagersobtaininformationaboutparticipantsbecause participantsrevealmoreabouttheirchallengestotheirpeersthantocasemanagersinoneonone sessions.

SupportiveServices
JobStartrequiredgranteestoprovideorhelpparticipantsaccesssupportiveservicesthattheyneeded tomaintaintheirtransitionaljobs.Whileprogramrulesdirectedgranteestoprovideorhelpparticipants accessanysupportiveserviceidentifiedasnecessarytoobtainandretainemployment,theprogram emphasizedfiveservices:childcare,transportation,assistancewiththecostoflicensingrequiredfora job,assistancewiththecostoftoolsorclothesrequiredforajob,andemergencypaymentsforthecost ofresolvingonetimesituationsthatmightpreventaparticipantfromworking.Granteeswere instructedtohelpparticipantsaccesschildcarethroughtheIllinoisActionforChildrenChildcare ResourceandReferralSystemandtohelpparticipantsplanforemergencychildcare.Granteeswerealso requiredtoprovidetransportationassistanceuntilparticipantsreceivedtheirfirstpaycheckandto
70

AnalysisofJobStartGranteeStaffSurveyresponses.N=25.Respondentsselfidentifiedashavingworkedonprovidingcasemanagement.

52

provideparticipantswithadditionalassistancesuchasbuspasses,vans,orhelpusingtheirown vehiclesonanasneededbasisthereafter.71 WhiletheJobStartprogramrequiredgranteestosubmitreceiptsforthecostofsupportservices providedusingprogramfunding,itdidnotsystematicallyrecordthenumberofparticipantswho receivedservicesoramountsspent.Consequently,datafromtheParticipantSurveyandfrominterviews withgranteeprojectdirectorsaretheonlysourcesofthisinformation. Figure19showsthepercentageofParticipantSurveyrespondentswhoreportedreceivingtypesof supportiveservicesandtrainingcommonlyofferedbyTJprograms.Overhalf(53.3percent)received transportationassistance,30.0percentreceivedhelpwithworkappropriateclothing,and20.1percent receivedhelparrangingchildcare.Relativelyhighproportionsalsoreportedreceivingservicesaimedat helpingthemfindunsubsidizedemployment,includinginterviewpreparation(61.4percent),resume writinghelp(51.4percent),andjobsearchassistance(43.3percent). Figure19:SupportiveServicesReceivedasReportedbyParticipantSurveyRespondents72
Jobinterviewpreparation Transportationassistance Resumewritinghelp Jobsearchassistance Coachingoncommunicationskills SupportiveServiceReceived Careerplanning Computertraining Helpwithworkappropriateclothing Financialliteracyandbankingsupport Helparrangingchildcare Helpwithpublicbenefits None Counseling Helpaddressinghousingproblems Reading,writing,ormathclasses Angermanagementclasses Alcoholorsubstanceabusetreatment 0.0% 2.4% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 8.1% 6.7% 6.7% 6.7% 3.3% 14.8% 21.4% 21.0% 34.3% 31.9% 30.0% 43.3% 42.9% 53.3% 51.4% 61.4%

PercentageofRespondents

Onequarter(25.2percent)ofParticipantSurveyrespondentswhoreportedthesupportiveservicesthey receivedalsoreportedthattheydidnotreceivesomeservicestheyneeded.Figure20showsthe supportiveservicestheyneededbutdidnotreceive.Themostcommonlyreportedservicesneededbut notreceivedwerehelpaddressinghousingproblems(27.8percent),jobsearchassistance(24.1 percent),andcomputertraining(14.8percent).

71
72

ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.1820) AnalysisofJobStartParticipantSurveyresponses.N=210.Allrespondentsworkedatleast1hourinatransitionaljobaccordingtoprogram records.

53

Figure20:SupportiveServicesNeededbutNotReceivedasReportedbyParticipantSurvey Respondents73
Helpaddressinghousingproblems Jobsearchassistance SupportiveServiceNeededbutNotReceived Computertraining Other Transportationassistance Coachingoncommunicationskills Resumewritinghelp Helpattainingeducationalcredential Helpdealingwithcriminalrecord Helparrangingchildcare Helpwithworkappropriateclothing Counseling Financialliteracyandbankingsupport Helpwithpublicbenefits Reading,writing,ormathclasses 0.0% 1.9% 1.9% 1.9% 1.9% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 3.7% 3.7% 5.6% 5.6% 7.4% 7.4% 11.1% 14.8% 14.8% 24.1% 27.8%

PercentageofRespondentsWhoNeededbutDidNotReceiveaSupportiveService

Themostcommonlyreceivedsupportiveservice,transportationassistance,wasadministratively straightforwardtoprovideandappearstohavehelpedparticipantsovercomethebarrierofunmetneed fortransportationduringtheprogramperiod.GranteestypicallyprovidedparticipantswithaChicago TransitAuthoritypassuntiltheyreceivedtheirfirstpaychecksandprovidedpassesonanasneeded basisthereafter. Unmetneedforchildcare,andtheextenttowhichgranteeassistancearrangingforchildcarehelped participantstoovercomethisbarrier,variedacrossgrantees.Severalgranteesreportedthatunmet needforchildcarewasacommonbarriertoemploymentamongtheirparticipants,butthatchildcare referralsmadethroughIllinoisActionforChildrenenabledthemtoovercomethisbarrier.However,one projectdirectorreportedthatmostparticipantswantedchildcareonlythroughfamilyandfriendsand didnotwanttosendtheirchildrentoproviderslocatedthroughIllinoisActionforChildren.Believing thattheseparticipantshadsecuredchildcare,granteestaffenrolledtheminJobStart;however,when participantsfamiliesorfriendswereunexpectedlyunableorunwillingtoprovidechildcare,the participantswereunabletoattendjobreadinesstrainingortheirtransitionaljobs.Theprojectdirector explainedthattheagencycouldhaverequiredparticipantstoarrangeforchildcarethroughIllinois ActionforChildrenasaconditionofenrollinginJobStart,butthatthiswouldhavereducedenrollment. Granteesprovidedotherservicesrelativelyinfrequently.Onegranteeprovidedhelpwithwork appropriateclothingbygivingallparticipantsa$100Targetgiftcard;anotherprovidedparticipantswith vouchersforclothingortoolsfromvendorswithwhichithadestablishedrelationships.Twograntees reportedreferringparticipantstootherprovidersformedicalcare,includingtreatmentforasthma, prenatalcare,andeyeglasses.Onegranteeobservedthatparticipantschangedphonenumbersvery
73

AnalysisofJobStartParticipantSurveyresponses.N=53.Allrespondentsworkedatleast1hourinatransitionaljobaccordingtoprogram records.

54

frequently,makingcasemanagementmoredifficult.Thegranteeencouragedparticipantstoenrollin SafelinkWireless,afederalprogramthatprovidesmobilephoneservicetoincomeeligibleindividuals.

JobPlacementandRetention
JobStartincludedprovisionsintendedtopromoteunsubsidizedjobplacementandretentioninitsjob readinesstrainingandcasemanagementcomponentsandintherequiredmemorandaofagreement (MOA)betweengranteesandemployers.Theprogramencouragedgranteestoextendthejobsearch andapplicationskillsandjobspecificskillstrainingcoveredinjobreadinesstrainingintosubsidized employment,withemphasisinthefinalmonth,inordertoprepareParticipantsforatransitionto unsubsidizedemployment.74Aspreviouslynoted,granteestaffwereinstructedtodiscusswork, training,oreducationalgoalsinoneononemeetingsandgroupsessionswithparticipants.Additionally, theprogramdirectedgranteestobeginprovidingjobleads,helpingparticipantsmakecontactwith employers,andfacilitatinginterviewsbeforesubsidizedemploymentended.Thegranteeswerealso directedtobeginconnectingparticipantswithsupportiveservicesofferedbytheirownagenciesor othersocialserviceagenciesbeforethetransitionaljobended.TheMOAstatedthatJobStartworksites willbeexpectedtoconsiderJobStartparticipantsforunsubsidizedpositionsattheendofthe subsidizedworkprogram,althoughprovidingunsubsidizedemploymentwasnotrequired.75 SomeTJprogramsextendjobplacementandsupportiveservicesforsometimeafterthetransitionaljob ends.TheSeptember30,2010,deadlineforspendingTANFEFfundinginordertoreceive reimbursementmeantthatJobStartwouldfundnoservicesafterthatdateandthatanyplacementand retentionservicesforformerparticipantshadtobesupportedwithotherresources. ConsistentwiththeJobStartprogramdesign,granteesprovidedjobplacementservicesandencouraged participantstoseekunsubsidizedemploymentthroughouttheprogram.Interviewpreparation,resume writinghelp,andjobsearchassistancewereamongtheservicesthattheParticipantSurveyrespondents mostcommonlyreportedreceiving.Mostprojectdirectorsreportedthattheircasemanagersasked aboutparticipantsjobsearchandencouragedparticipantstothinkabouttheircareerinterestsand goalsduringcasemanagementsessions.Onesaidthattheagencyemphasizedfromthebeginningofthe programthatthetransitionaljobwastemporaryandthatitwastheresponsibilityofparticipantsto makeagoodimpressiononemployersandgivethemareasontohireyou.Onegranteedevoteda staffpersonentirelytohelpingJobStartparticipantsfindunsubsidizedjobs,andseveralothergrantees reportedthattheywouldhavehiredadditionalstaffsolelyforjobplacementiftheyweretooperatea JobStartprogramagain. GranteesthatoperatedotheremploymentprogramsforwhichJobStartparticipantswereeligible introducedparticipantstotheseprograms.OnegranteewithaWIAfundedemploymentprogramfor youthandseveralvocationaltrainingprogramsencouragedparticipantswithoutunsubsidized employmentattheendofJobStarttoentertheseprograms.AnothergranteethatoperatedaWIAOne Stopcenterheldadayofjobsearchworkshopsatthecentertointroduceparticipantstoservices offered.AfewgranteesextendedrelativelylowcostplacementservicestoJobStartparticipantsfora shorttimeaftertheprogramended.Onegranteecontinuedtoofferplacementassistanceimmediately afterJobStartended.Anothercontinuedtosendjobleadstoformerparticipants. Accordingtoprogramrecords,12.0percentofadultprogramparticipantswhoworkedinatransitional jobwereknowntohaveenteredunsubsidizedemployment,andslightlylessthan10percentwere
74 75

ChicagoCommunityTrust(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.14) ChicagoCommunityTrust(ChicagoNeighborhoodJobStartworksitememorandumofagreementreceivedNovember3,2010)

55

knowntohaveenterededucation,training,oranotherjobsprogramimmediatelyafterJobStartended. Overall,21.8percentofadultparticipantswhoworkedwereknowntohaveachieveddesiredoutcomes setforthbytheprogramdesign.Amongyouthprogramparticipants,theoverwhelmingmajority(80.7 percent)wereknowntohaveenterededucationortraining(includingreturntohighschoolorcollege), and8.2percentwereknowntohaveenteredotherjobsprograms.Overall,91.8percentofyouth participantswereknowntohaveachieveddesiredoutcomes.Severaldatareportingissuesmayhave resultedindeflatedplacementrates.Theseissuesarediscussedinthefollowingsectionandchapter.76 Figure21showsreasonsthatsomeparticipantswhocompletedtransitionaljobswereunabletofind unsubsidizedemploymentasreportedbyGranteeStaffSurveyrespondentswhoworkedonhelping participantsfindunsubsidizedemployment.Amongtheserespondents,50.0percentreportedthatsome participantshadnotdevelopedtheinterpersonalskillstoobtainanunsubsidizedjob,45.5percent reportedthatparticipantslackedworkexperienceneededtoobtainanunsubsidizedjob,and40.9 percentreportedthattherelativelyfewjobsavailable,lackofeducationalattainment,andinabilityto passacriminalbackgroundcheckpreventedsomeparticipantsfromobtaininganunsubsidizedjob. Figure21:ReasonsSomeParticipantsWhoCompletedTransitionalJobswerenotPlacedin UnsubsidizedJobsasReportedbyGranteeStaffSurveyRespondents77
Lackedinterpersonalskills Lackedworkexperience ReasonWhySomeParticipantsWereNotPlaced Fewjobsavailable Lackededucationalattainment Unabletopasscriminalbackgroundcheck Lackedspecializedskillsortraining Unabletofindajobinareaofinterest Unabletopassalcoholordrugtest Lackoffundingtocontinueplacement Couldnotaccesstransportation Lackedofstafftohelpallparticipants Couldnotaccesschildcare Couldnotaccessothersupportiveservice Mentalhealthdisorder Unabletoprovidereferences 0.0% 4.5% 4.5% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 9.1% 9.1% 13.6% 13.6% 18.2% 22.7% 36.4% 36.4% 40.9% 40.9% 40.9% 45.5% 50.0%

PercentageofRespondents

76

Somegranteeswereunabletoaccountfortheplacementstatusofallparticipants.Acrossallgrantees,18.3percentofparticipantswere unaccountedforafterJobStartended.Someoftheseparticipantsmayhavefoundunsubsidizedemploymentimmediatelyaftertheprogram ended,andothersmayhavefoundemploymentweeksorevenmonthslater.Severalgranteesreportedthatsomeparticipantsfound unsubsidizedemploymentafterJobStartendedbutthattheseplacementswerenotreflectedinprogramrecords. 77 AnalysisofJobStartGranteeStaffSurveyresponses.N=22.Allrespondentsselfidentifiedashavingworkedonhelpingparticipantstofind, gain,andprepareforunsubsidizedemploymentafterthetransitionaljob.

56

Consistentwiththeobservationthatsomeparticipantshadyetnotdevelopedtheworkreadinessskills toobtainanunsubsidizedjob,severalgranteesreportedthatparticipantattitudescontinuedtopresent barrierstoemploymentattheendoftheprogram.Oneprojectdirectorreportedthatsomeparticipants didnottreatthetransitionaljobasarealjoborastrainingforunsubsidizedemployment.Theproject directorbelievedthatadditionalreinforcementduringjobreadinesstrainingoftheideathatthe transitionaljobmightleadtoanunsubsidizedjobwouldhavecounteractedthisattitude.Another projectdirectorattributedlackofpersonalskillsandthedifficultyplacingparticipantsinunsubsidized jobstothedemandingtimelineimposedbytheSeptember30,2010,deadline.Theprojectdirector explainedthattheagencyhadagroupofemployersindemolition,environmentalremediation, manufacturing,andlandscapingallofwhichmaintainedminimumstandardsforworkreadinessthat itusedtoplaceparticipantsinnonJobStartemploymentprograms.However,fewJobStartparticipants wereworkreadybytheendoftheshortprogram,andtheagencycouldnotjeopardizeits relationshipswithitsregularemployersbyplacingunreadyparticipantswiththem.Theprogram timelineimpededtheagencysabilitytoreadyitsparticipantsintworespects.First,itprecludedthe agencyfromcarryingoutitsregularrecruitmentandassessmentprocess,resultinginhigherthan normalproportionsofunmotivatedparticipants.Second,itallowedlesstimeforadjustmentstothe agencysprogramtotakeeffect.Aftertheprogrambegan,theprojectdirectorsaidthathisagency founditneededmorecasemanagers,anditincreasedstaffinginresponse.However,bythetime additionalcasemanagerswereadded,JobStartwashalfover.Unabletoplacemostparticipantswith itsregularemployers,theagencyattemptedtofindthebestplacementspossiblegivenparticipants workreadiness. FourprojectdirectorsreportedthatlackoffundingtocontinueplacementactivitiesafterJobStart endedwasareasonwhysomeparticipantswerenotplacedinunsubsidizedjobs.Onesaidthatthe agencyhadtolayoffstaffhiredtemporarilyforJobStartandreassignpermanentstaffwhoworkedon JobStartbacktotheirregularprograms.Anotherassertedthattheagencysjobdeveloperswouldhave continuedtohelpparticipantsfindunsubsidizedemploymentafterJobStartendediftheprogramhad providedfunding;however,lackoffundingafterSeptember30,2010,forcedtheagencytoend placementeffortsforJobStartparticipants.AthirdidentifiedlackoffundingafterJobStartendedasthe mostsignificantchallengefortheagencyafterthetransitionaljobendedandsaidthatitprecludedthe agencyfromtrackingparticipantsaftertheprogramended. JobStartoperatedimmediatelyfollowingasevererecessionandinvolvedmanysmallnonprofit employersthatmayhavelackedresourcestohireparticipants.Severalprojectdirectorsindicatedthat thiswasthecase.One,whoseagencyusednonprofitemployersheavilyforJobStart,reportedthatthe limitedbudgetsoftheseemployersforhiringwasthemostsignificantchallengefortheagencyafter subsidizedemploymentended.Mostemployersdidnotanticipatehiringparticipantspermanently,and thedirectorwassurprisedwhentwooftheemployershiredparticipantsaftersubsidizedemployment. Anotherprojectdirector,whoseagencyusedmanychurchesasemployers,reportedthatthechurchesit workedwithwereunabletohireparticipants.Thedirectorbelievedthatusingmoreforprofit employerswouldhaveresultedinmoreunsubsidizedplacements. Figure22showstheapproximateproportionofallparticipantsthatrespondentstotheEmployerSurvey wantedtohirebutwerenotabletohire.Amongtheserespondents,38.5percentwantedtoretainmost orallparticipants,20.5percentwantedtoretainabouthalf,and41.0percentwantedtoretainlessthan half.AmongEmployerSurveyrespondents,60.0percentreportedthattheirbusinesseswerenot financiallyabletoretainalltheJobStartparticipantstheywantedtohire.78
78

AnalysisofJobStartEmployerSurveyresponses.N=71.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional job.

57

Figure22:ProportionofJobStartParticipantsEmployerSurveyRespondentsWantedtoHirebutWere UnabletoHire79
All 10.3%

Lessthanhalf 41.0% Most 28.2%

Abouthalf 20.5%

ConsideringtheJobStartparticipantsthattheydidnotwanttoretain,34.6percentofrespondents reportedthattheseparticipantswouldneed2ormoremonthsinthetransitionaljobbeforetheywere readytohire,and30.8percentreportedthatevenwithadditionaltimeinthetransitionaljobthey wouldnotbereadytohire(Figure23).

Figure23:AdditionalTimeinTransitionalJobNeededforParticipantstoBecomeJobReadyas ReportedbyEmployerSurveyRespondents80

Wantedtohireall 23.1%

Evenwithmore time,wouldbeunready 30.8%

Lessthan1month 3.8% 1month 7.7%

2months 11.5%

Morethan2months 23.1%

79

AnalysisofJobStartEmployerSurveyresponses.N=39.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional job. 80 AnalysisofJobStartEmployerSurveyresponses.N=26.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional job.

58

Administration
UseoffederalfundinganddelaysinconcludingandclarifyingtheCommunityServicesAgreement(CSA) thatgrantedfederalfundingtothe2016FundmadeJobStartadministrationdifficultforthe2016Fund anditsgrantees.BecauseJobStartwaspartiallyfundedbyfederalfunds,the2016Fundmighthave beenrequiredtoreturnmoneytothefederalgovernmentifanauditdeterminedthatgranteeshad servedindividualsineligiblefortheprogramorpaidplacementfeesforbenchmarksnotachievedby participants.Thepotentialformonetaryliabilitytothefederalgovernmentinherentinadministering federalfundsmotivatedthe2016Fundtocreaterigorousproceduresforverifyingparticipanteligibility anddetailedrulesforvoucheringforwagesandplacementfees.TherelativelylatedateonwhichIDHS andthe2016FundconcludedtheCSAandtheneedtoobtainclarificationfromIDHSabouttheCSA afteritwasconcludedmadefollowingtheseproceduresandrulesdifficultduringprogramstartup.

Mostgranteesreportedthattheyreceivedinstructionsfromthe2016Fundtochangetheirprocedures forparticipanteligibilitycriteria,voucheringforplacementfees,orotheraspectsoftheirprogramsafter JobStartbeganoperating.Forexample,mostprojectdirectorsreportedthatthe2016Fundrequired granteestochangefromvoucheringforplacementfeesbasedontheexpecteddurationofsubsidized employmentforallparticipantstovoucheringbasedontheexpecteddurationforindividualparticipants afterJobStartbegan.Anotherprojectdirectorreportedthattheagencybeganpayingparticipantsfor jobreadinesstraining,butthattheagencywaslatertolditcouldnotpayforjobreadinesstrainingafter thefirstweekofthepractice.Severalprojectdirectorsreportedthattheiragenciessometimesreceived contradictoryresponsestoquestionsfromdifferent2016Fundstaffpeople.

Granteesreceivedinstructionstochangetheirproceduresaftertheprogrambeganbecausethefinal CSAwasconcludedonlyshortlybefore(andinsomecases,shortlyafter)thegranteesbegantheir programs.Inordertoprovideparticipantsthemaximumnumberofweekspossibleinsubsidized employment,somegranteeshadalreadystarteduptheirJobStartprogramsatthetimetheCSAwas executed.ComplicatedaspectsoftheCSAandtheJobStartprogramdesign,suchasthestructureofthe placementfeepaid(describedinthefollowingsection),necessitatedclarificationfromIDHSasthe programcontinued.The2016FundobtainedtwoformalamendmentstotheCSAclarifyingthe placementfee,and2016Fundstaffreportedthattheyreceivedotherinformalclarificationsthroughout theprogram.81The2016FundtransmittednewinstructionsorclarificationoftherulesfromIDHStoits grantees,requiringgranteestochangetheirproceduresmidprograminmanyinstances.Whilethese changesmadeJobStartadministrationmoredifficultforgrantees,theywereintendedtoprevent improperuseoffederalfundsthatwouldexposethe2016Fundtomonetaryliability.

Despitethesechallenges,mostprojectdirectorspraisedthe2016FundstafffortheirworkonJobStart. Theyreportedthatthe2016Fundperformedadmirablyincoordinatingdifferentaspectsofthe program,communicatingrulechangespromptly,workingtofixproblemsresultingfromrulechanges, andhelpinggranteesfulfillrequirements.Mostrecognizedthatthedemandingtimelineimposedbythe TANFEFmadeadministrationofJobStartdifficultforthe2016Fundandnecessitatedmidprogram corrections.Oneprojectdirectorcapturedtheobservationsofmostothersbystating,Webelievethe 2016[Fund]staffdidanexcellentjobofpullingittogetheraswellastheydid.Theexternalrestraints putonthem,however,ultimatelytranslatedintosomedifficultprocessesinthefield.

81

ThesecondamendmenttotheCSAwasmadeattherequestofagenciesoperatingyouthprogramsinwhichmostparticipantsreturnedto schoolwellbeforetheprogramdeadline.Itenabledtheseagenciestoearntheplacementfeeintendedtocoverthecostofprovidingservices morequickly.

59

The2016FundstaffstatedthatadditionaltimebetweenconclusionoftheCSAandprogramstartup wouldhavereducedadministrativedifficulties:additionaltimewouldhaveenabledthe2016Fundto reviewandcommunicatethetermsoftheCSAtogranteeswellbeforeJobStartbeganandoffer granteesmoreinstructionandguidanceaboutcomplicatedaspectsofJobStartadministrationsuchas determiningparticipanteligibilityandusingfederalfunding.However,theimpendingSeptember30, 2010deadlineforspendingprogramfundstoreceivereimbursementfromtheTANFEFnecessitated thatthe2016FundmoveaheadwithJobStartimplementationfollowingconclusionoftheCSA.

Funding
TheprimarycostsofJobStartincludedparticipantpayrollcosts(includingwages,FICAtaxes,and workerscompensationtaxes)paidbygranteesastheemployersofrecordandthecostofprovidingthe servicesrequiredundertheprogramdesign.Granteeswererequiredtopaybothcostsupfrontandto submitvoucherstothe2016Fundrequestingpayment.Tocoverthecostofprovidingservices,the2016 Fundpaidgranteesapredeterminedplacementfee.Tocoverthecostofpayroll,the2016Fundsimply reimbursedgranteesforallpayrollcosts.The2016FundthenrequestedreimbursementfromIDHSfor theportionofprogramcostspaidbytheTANFEF.Consistentwithenhancedreimbursementfornew TANFspendingprovidedbytheTANFEF,IDHSreimbursedthe2016Fundfor80percentofthe placementfeesandpayrolltaxesandfor100percentofwagecosts.Theportionofplacementfeesand payrolltaxesnotreimbursedbyIDHSservedasthestatecontributionnecessarytodrawreimbursement forthesecostsfromtheTANFEF,whilesupervisionandtrainingprovidedbyJobStartemployersserved asthestatecontributionneededtodrawreimbursementforparticipantwages.

Granteeswereeligibletoreceiveaportionofthepredeterminedplacementfeeeachtimeaparticipant achievedoneoffivebenchmarks.Table12showsthescheduleofpaymentsforeachbenchmark.The paymentforachievingeachbenchmarkwasreducedforparticipantswhowereexpectedtocomplete fewerthan14ofthe16weeksofthetransitionaljobpossibleundertheprogram.Forparticipantswho enteredtheprogramsolatethattheycouldcompleteonly11to13weeksbeforeSeptember30, granteesreceivedlowerpaymentsthanforparticipantswhoenteredtheprogramsufficientlyearlyto complete14to16weeks.Similarly,forparticipantswhocouldcompleteonly6to10weeksofthe transitionaljobfromtheirtimeofentry,granteesreceivedlowerpaymentsthanforparticipantswho enteredsufficientlyearlytocomplete11ormoreweeks.ThesetwoaspectsoftheJobStartpayment structure(paymentofaportionoftheplacementfeeforachievementofbenchmarksandreduced paymentsforparticipantsexpectedtocomplete11to13weeksand6to10weeks)wereintendedto incentivizerapidenrollmentandplacementofparticipantsintotransitionaljobsandtomaximizeeffort bygranteestohelpparticipantsmaintainthosejobs.Ontheotherhand,theirrelativecomplexity introducedthepossibilityofdifficultiesregardingvoucheringforpayments.

Inadditiontobenchmarkpayments,the2016Fundpaidgranteesa$500advanceforeachparticipant theyplannedtoplaceinatransitionaljobasstatedintheirgrantagreements.Theadvancewaspaid usingprivatefundsandwasintendedtocoverthecostofprovidingservicesuntilparticipantsreached thefirstbenchmarkandcouldvoucherforpayment.Ifagranteeplacedfewerparticipantsintransitional jobsthanagreedtoinitsgrantagreement,the2016Fundcouldrecoveraportionoftheadvance originallypaidtothatgrantee.

60

Table12:JobStartPaymentStructure82
Benchmarkperparticipant Advancebasedonthenumberofplannedtransitionaljob placements Completionofjobreadinesstraining Completionof4weeksintransitionaljob Completionof8weeksintransitionaljobforparticipantsexpectedto complete13ormoreweeks,orcompletionof6weeksintransitionaljobfor participantsexpectedtocompletefewerthan13weeks Completionof12weeksintransitionaljobforparticipantsexpectedto completeatleast14ormoreweeks,orcompletionof11weeksin transitionaljobforparticipantsexpectedtocompletefewerthan13weeks Submissionoffinalreportsto2016Fundandapprovalbystaff Maximumpossiblefeeperparticipant Expectednumberofweeksin transitionaljob 14to16 $500 $595 $1,275 $550 11to13 $500 $441 $928 $371 6to10 $500 $310 $516 $173

$450

$371

$0

$275 $3,645

$209 $2,820

$121 $1,620

ComparedtoWorkforceInvestmentAct(WIA)funding,TANFEFfundingprovedeasytouse.Thelargest federalfundingsourceforworkforcedevelopment,WIAfundingcansupportjobplacement,training, andbasiceducationforadults,dislocatedworkers,andyouth.Overall,WIAfundingsupportsprograms forabroaderandlessdisadvantagedpopulationthanTANF.83AsindicatedinTable6,mostgranteesuse WIAfundingtosupportsomeoftheiremploymentprograms.Severalprojectdirectorswhoseagencies useWIAfundingdescribeddeterminingeligibilityforWIAasstricterandmorelaborintensivethan JobStart.OneexplainedthatWIAfundingimposesmanydifficulttointerpretrequirementson recipients,buttheprocessprovideslittleguidanceonhowtocomplyandaffordsrecipientslittleopen communicationwiththefunder.Bycontrast,requirementsforusingTANFEFfundingthroughthe2016 Fundprovedrelativelyeasytofollow,andthe2016Fundprovidedsubstantialguidanceonhowto comply.TwoprojectdirectorsalsoreportedthatJobStartallowedmuchmorecreativeuseoffunding thanWIA,enablinggranteestouseplacementfeesforavarietyofsupportiveservices.

WhilegranteesfoundJobStartfundingrelativelyeasytouse,theprocessofvoucheringforplacement feesprovedchallenging.Asdescribedpreviously,granteeswereeligibletoreceiveaportionofthe placementfeeeachtimeaparticipantachievedaprogrambenchmark,andwererequiredtosubmit vouchersevery2weeksinordertoreceivethefee.Thevoucheringsystemrequiredgranteestotrack thenumberofweeksworkedbyeachparticipant,toestimatethetotalnumberofweeksthateach participantwouldspendinsubsidizedemployment,torecordthisdatainanelectronicspreadsheet,and tosubmitthespreadsheet,payrollrecords,andreceiptsforsupportiveservicestothe2016Fund.Most granteesfoundtrackingweeksworkedandestimatingtotalweeksthatwouldbeworkedbyeach participantverylaborintensive.Oneprojectdirectorlikenedthelaborintensityofvoucheringto completingfinancialreportingfora9monthemploymentprogramina3monthperiod.Anotherproject directorsaiditfeltliketheagencywasalwaysvouchering.Mostgranteesalsoreporteddifficulty completingtheelectronicspreadsheet.Intheprocessoftransmittingthespreadsheetbackandforthto the2016Fund,thespreadsheetoftenbecamelockedandgranteesfoundthemselvesunabletoenter requiredinformation.Severalprojectdirectorsalsoreportedthattheyexpendedsubstantialeffort correctingoldvoucherswhenthe2016Fundchangedorclarifiedrequirementsforvouchering.
82 83

ChicagoCommunityTrust(scheduleofissuanceofgrantmonies,October18,2010) CenteronLawandSocialPolicy.(2011January).Federalfundingforintegratedservicesdelivery:Atoolkit.Washington,DC:Author.(p.19).

61

AswithotheradministrativeaspectsofJobStart,useoffederalfundingresultedindetailedrulesand proceduresforvouchering.TheJobStartprogramdesigncalledforgranteestopaywagesandpayroll taxesandprovidesupportiveservicestothousandsofparticipantsusingfederalfunding.Ifanaudit determinedthatgranteeshadusedfederalfundingtopayineligibleparticipantsorpayplacementfees forbenchmarksnotachieved,the2016Fundmighthavebeenrequiredtoreturnmoneytothefederal government.Theneedtoaccountforallfundingusedforsubsidizedemploymentresultedinthe requirementthatgranteestrackparticipanthoursandbenchmarksonapersonbypersonbasis, validatevoucherswithtimesheets,payrollrecords,andrecordsofservicesprovided,andcorrectany errorsinthecompletedvouchers.The2016Fundstaffstatedthatadditionaltimebetweenconclusion oftheCSAandprogramstartupwouldhavereducedthedifficultyofvoucheringforwagesand placementfeesbyenablingthemtoconductmoretrainingonvoucheringproceduresforgranteestaff anddesignmoreuserfriendlyvoucheringspreadsheetsandothertools.

Whetherprojectdirectorsbelievedthattheplacementfeewasadequatetofundtheservicesrequired bytheJobStartprogramdesigndependedonthedurationofsubsidizedemploymentthatparticipants attheiragencieswereabletocomplete.AsshowninTable12,theportionofthemaximum$3,645per participantplacementfeethatgranteesmightearndependedontwofactors:thenumberofprogram benchmarksaparticipantachievedandtheexpectednumberofweeksinsubsidizedemploymentthata participantwouldcomplete.Consequently,granteesthatplacedparticipantsintosubsidized employmentrelativelyearlyandhelpedparticipantsmaintainemploymentearnedlargeportionsofthe placementfee,whilethosewithrelativelyshortprogramsearnedsmallerportions.Theprojectdirector whoseagencybeganenrollingparticipantsbeforetheagencyhadbeenawardedagrantdescribed JobStartasverywellfundedandstatedthattheplacementfeeeasilyallowedtheagencytofundthe requiredservices.Bycontrast,aprojectdirectorwhoseagencyoperatedayouthprograminwhichmost participantsreturnedtoschoolwellbeforetheprogramdeadlinestatedthattheagencybarelybroke evengiventheportionofthemaximumplacementfeeitreceived.

Figure24:NumberofAgenciesthatWouldParticipateinJobStartGivenReducedPlacementFee84
NumberofProjectDirectorswhoReportedthat theirAgencieswouldParticipate 7 6 5 4 Yes 3 2 1 0 75% 50% PercentageofActualPlacementFee 25% Maybe No

84

AnalysisofProjectDirectorSurveyresponses.N=11for75percentand50percentand10for25percent.Onegranteesubmittedseparate surveysforitsadultandyouthprograms.

62

Figure24showsthenumberofprojectdirectorswhoreportedthattheiragencieswouldparticipatein JobStartorasimilarprograminthefutureiftheplacementfeewas75percent,50percent,or25 percentoftheactualJobStartplacementfee.Given75percentoftheactualplacementfee,fiveoutof 12projectdirectorssaidtheiragencieswouldstillparticipate,andfoursaidthattheiragenciesmight stillparticipate.MostdescribedtheJobStartfeestructureasfairandadequate.Inpractice,they explained,thedemandingtimelineoftheprogramprecludedthemfromreceivingthefullfeeformost participants. TotalJobStartexpenditureforallparticipantswhocompletedjobreadinesstrainingwas$7.8million, 38.5percentoftheplanned$20.3millionprogrambudget.Itincluded$3.9millionforwages,$379,143 forpayrolltaxes,and$3.5millionforbenchmarkfees.Thelowerthananticipatednumberof participantsandtheshorterthananticipatedaverageTJdurationaccountforthedifferencebetween programexpendituresandtheplannedprogrambudget. Table13:JobStartExpenditureforParticipantswhoCompletedJobReadinessTraining85 Percentageoftotal Costcenter Expenditure expenditure Transitionaljobwages FICAandWorkers'Compensationtaxes Benchmarkfees Total
a

$3,936,423 $379,143 $3,489,834 $7,805,400

50.4% 4.9% 44.7% 100.0%

Includesadvance,fivebenchmarkplacementfees,andadministrativefeepaidtothe2016Fund.

InteractionwithPITW
JobStartoperatedcontemporaneouslywithPutIllinoistoWork(PITW),themuchlargerstatewide subsidizedemploymentprogramalsofundedbytheTANFEF.PITWbeganplacingparticipantsin subsidizedemploymentinApril2010,andlikeJobStart,wasscheduledtoendonSeptember30,2010, thedeadlineforspendingTANFEFfundinginordertoreceivefederalreimbursement.However,the StateofIllinoisextendedtheprogramuntilJanuary15,2011,usingitsownfunds.Bothprograms enrolledparentsorotheradultcaretakersandyouthfromlowincomefamilies,andsevenJobStart granteesalsoservedasPITWsubcontractors,operatingtheirownPITWprograms. WhetherornottheiragenciesparticipatedinPITW,mostprojectdirectorsreportedthatPITWaffected theirJobStartprogramsinsomeway.ThreeJobStartprojectdirectorswhooperatedbothJobStartand PITWprogramsreportedthatparticipantsandemployersconfusedoneprogramfortheother.86One believedthatemployersdelayedpermanentlyhiringJobStartparticipantsbecausetheythought JobStart,likePITW,wouldbeextended.AnotherbelievedthatparticipantsthoughtthatJobStartwould beextended,reducingtheirincentivetofindunsubsidizedemploymentbySeptember30,2010. WhilePITWpaidahigherwagethanthatearnedbytheaverageJobStartparticipant,mostgrantees reportedthatthePITWwagedidnotcreatecompetitionforparticipants.However,severalproject directorsreportedthatPITWcreatedcompetitionforemployers.Attemptingtorecruitemployersfor
85

AnalysisofJobStartprogramrecords.Theanalysisexcludesexpenditureontherelativelysmallnumberparticipantswhodidnotcompletejob readinesstrainingbutforwhomgranteesmayhavebeenpaidadvances. 86 Bycontrast,athirdprojectdirectoratagranteethatoperatedbothprogramsreportedthattheagencymaintainedstrictseparationbetween JobStartandPITW;asaresult,employersdidnotconfusetheprograms.

63

JobStart,theiragenciesfoundthatasubstantialshareofpotentialrecruitswereparticipatinginPITW andlackedthecapacitytoparticipateinanothersubsidizedemploymentprogram.Oneprojectdirector, whoseagencyoperatedaJobStartyouthprogram,believedthatcompetitionforworksites disadvantagedyouthprogramenrollees.Manyemployersdesiredolderemployees,butmighthave hiredyouthifPITWhadnotprovidedasourceofolderworkerswithsubsidizedwages. ProjectdirectorsalsoindicatedthatcontemporaneousoperationofJobStartandPITWhadsome positiveresults.Asnotedpreviously,fourprojectdirectorsreportedthattheiragenciesreferred JobStartapplicantsfromoutsidethedesignatedCCAstoPITW.Inthisfashion,PITWappearstohave servedasanalternativeplacementopportunityforthemanyJobStartapplicantsfromneighborhoods thatborderedthedesignatedCCAs.Additionally,onegranteedirectorstatedthatpublicityaroundPITW facilitatedrecruitmentforJobStart.TheagencycouldrefersomePITWapplicantswithpronounced supportiveserviceneedstoJobStart.

Summary
ThedeadlineforusingTANFEFfundingaffectednearlyeveryaspectofJobStartimplementation. CoupledwiththelatenessofIllinoisapplicationforTANFEFfundingandconclusionoftheCSA,the September30,2010deadlineforusingTANFEFfundinglimitedthetimeavailableforgranteesto prepareforJobStart;recruit,assess,train,andplaceparticipants;workwithemployerstohelp participantssucceedintheirtransitionaljobs;andhelpparticipantsfindunsubsidizedemployment. Additionally,thedeadlinemeantthatJobStartfundingwasunavailabletohelpparticipantsfindorretain unsubsidizedemploymentaftertheirtransitionaljobsended. DrawingontheirexperienceoperatingTJorotheremploymentprograms,granteesadaptedtothetime constraintsimposedbyTANFEFfunding.SomegranteesstartedtheirJobStartprogramsorinvested stafftimepreparingforJobStartbeforenotificationthattheyhadreceivedagrant,andmostrecruited participantsfromtheirnonTJprograms.Underthetimeconstraints,granteesfoundresidency requirements,upfrontdocumentationrequirements,andparticipantassessmentchallenging.Despite thesechallenges,granteesplacedtheoverwhelmingmajorityofparticipantswhocompletedjob readinesstrainingintotransitionaljobs,andtheaverageparticipantworked87.6percentofweeks availableinthetransitionaljobgivenhisorherstartdate. Accordingtoprogramrecords,21.8percentofadultparticipantsand91.8percentofyouthparticipants hadenteredunsubsidizedemployment,educationortraining,oranotherjobsprogramatthetime JobStartended.Thefollowingchapterexaminesplacementandotheroutcomesingreaterdetail.

64

Outcomes
JobStartwasintendedtohelpparticipantsweathertherecession thatbeganinDecember2007,improvetheemployabilityof participants,andplaceparticipantsintounsubsidizedemployment orfurthereducationortraining.Thischapterprovidesa preliminaryassessmentoftheseoutcomes.

EconomicStimulus
Intheshortrun,JobStartwasintendedtohelpparticipantsweathertheeffectsoftherecessionthat beganinDecember2007byprovidingthemwithimmediateemploymentandincome.JobStartcould alsohavehelpedparticipatingemployersdirectlybyprovidingthemwithadditionalemployeesatno wagecost,enablingthemtoexpandoutput,servemorecustomersorclients,orundertakeother activitiesthatcouldimprovetheirfinancialhealth.Additionally,totheextentthatJobStartparticipants spentincomeearnedthroughtheprogramlocally,JobStartcouldhavebenefitedotheremployersand theiremployeesindirectly,stimulatingeconomicactivityamongthebusinesseswhereparticipantsspent moneyandamongotherbusinesseslinkedtothem.Thelaterpossibilityrepresentsaneconomic multipliereffectinwhichincreasedspendinginonesectoroftheeconomycallsforthadditional activityinothersectors,resultingingreatertotaleconomicactivitythantheinitialspending.

DirectEffectsonBusiness
Table14showshowEmployerSurveyrespondentsrated changesinbusinessperformanceasaresultofemploying JobStartparticipants.Slightlymorethanhalfreportedthat Asasmallbusinessitwasgreat performanceineachareaincreasedorsomewhatincreased tohavetheextrahelp. asaresultofemployingJobStartworkers,whilebetween41 JobStartEmployer percentand46percentreportednochange. Table14:ChangeinBusinessPerformanceasaResultofEmployingJobStartParticipantsasReported byEmployerSurveyRespondents87
Productivitya Qualityofworkb Numberofcustomersorclientsserved Customerorclientsatisfactionb Workforcesatisfactionwithworkload
a

Decreased 1.4% 1.4%

Somewhat decreased 0.0% 0.0% 2.8% 1.4% 1.4%

Nochange 44.3% 47.2% 41.7% 45.8% 42.3%

Somewhat increased 25.7% 23.6% 22.2% 23.6% 25.4%

Increased 28.6% 27.8% 31.9% 27.8% 29.6%

1.4% 1.4%

1.4%

N=70. N=72. N=71.

EmployerSurveyrespondentsindicatedthattheirbusinesseswererelativelyfinanciallyhealthybefore JobStartbegan,andfewreportedthattheirfinancialhealthchangedbetweenthetimetheybecame involvedinJobStartandtheendoftheprogram.Figure25showsthefinancialhealthofEmployer

87

AnalysisofJobStartEmployerSurveyresponses.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.

65

SurveyrespondentsbeforeJobStart.Amongrespondents,45.1percentdescribedthefinancialhealthof theirbusinessasfair,andanother45.1percentdescribedtheirbusinessesashealthyorveryhealthy. Slightlylessthanonethird(31.5percent)reportedthatthefinancialhealthoftheirbusinessesbecame betterorslightlybetterbetweenthetimetheybecameinvolvedinJobStartandtheendoftheprogram, while64.3percentreportedthatthefinancialhealthoftheirbusinesseshadnotchanged.88 Figure25:FinancialHealthofEmployerSurveyRespondentsbeforeJobStart89

50.0% 45.0% ProportionofRespondents 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Veryunhealthy Unhealthy Fair FinancialHealthBeforeJobStart Healthy Veryhealthy 5.6% 4.2% 14.1% 31.0% 45.1%

OfEmployerSurveyrespondentswhoreportedthattheirfinancialhealthimproved(21,orslightlyless thanonethirdofallrespondents),allbutoneattributedatleastsomeoftheimprovementtotheir involvementinJobStart:16attributedsomeoftheimprovementtoJobStart,threeattributedabouthalf oftheimprovementtoJobStart,andoneattributedmostoftheimprovementtoJobStart. ThemoderateeffectsofJobStartonbusinessperformanceandfinancialhealthreportedbyEmployer respondentsmaybetheresultoftwofactors.Asnotedpreviously,theaverageJobStartparticipant workedonly8.4weeksinatransitionaljob,arelativelyshorttimetoaffectbusinessperformanceand financialhealth.Additionally,Employerrespondentsreported relativelygoodfinancialhealth,suggestingthatrelativelylittle Ibelievethisprogramcouldhave improvementinfinancialhealthwaspossiblewiththeaddition beenmoresuccessfulformy ofafewJobStartparticipantstotheirpersonnel. businessiftheprogramhadmore time.JobStartEmployer IndirectEffectsonBusiness Inadditiontodirectlyprovidingparticipantsandemployers witheconomicbenefits,JobStartmayhavestimulatedeconomicactivityatbusinesseswhere participantsspentJobStartearningsandatbusinessesthatsellgoodsandservicestothosebusinesses wherethefirstroundofspendingoccurred.Thisrepresentsaneconomicmultipliereffect.Whena consumermakesapurchaseatabusiness,thatbusinessmustreplenishitsstockofmaterialsorbuy servicesfromotherbusinessestosupporttheinitialpurchase.Thebusinessmaymakesomesupporting purchaseswithinalocalarea(forexample,CookCounty,inwhichChicagoislocated),stimulating
88 89

AnalysisofJobStartEmployerSurveyresponses.N=70.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob. AnalysisofJobStartEmployerSurveyresponses.N=71.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.

66

economic cactivity.Itm maymakeotherpurchasesoutsidethelocalarea,res sultinginlea akageof economic cactivityfrom mthatareaan ndreducingth hemultipliereffectfromt thefirstround dofspending g.The supportin ngbusinesses, ,inturn,mak kepurchasesfromotherbusinesses,withleakageoc ccurringatev very step.Thesumofecono omicactivityateverystep p,includingth heinitialpurchase,reflects sthetotal economic cactivityasso ociatedwiththepurchase.Analystsinthepublicand dprivatesectorsusethe concepto ofamultiplier reffecttoest timatetheam mountofregio onaleconomi icactivitygen neratedbya varietyof fprojects,suc chasairportc construction,baseclosure es,anddevelo opmentofsho oppingmalls.90 .

Econom micMultipl lierEffectoftheSub bsidizedW Wages

Whenaco onsumermakesapurchaseatabusiness,thatb businessmustre eplenishits stockofm materialsorbuyservicesfromot therbusinessest tosupportthein nitial purchase

Thebusinessmaymakesomesup pportingpurchas seswithinalocalarea(for example,CookCounty),stimulatin ngeconomicact tivityinthatarea a.

Itmaymak keotherpurchas sesoutsidethelocalarea,result tinginleakage of economica activityfromtha atareaandreducingthemultipliereffectfromt thefirst roundofsp pending.

The esupportingbus sinesses,inturn, ,makepurchase esfromotherbu usinesses,with leak kageoccurringa ateverystep.

Thesumofeconomicactivit tyateverystep, ,includingthein nitial purchase,re eflectsthetotaleconomicactivityassociatedwi iththepurchase e.

Lowerinc comeindividu ualsandfamil lieshaveahig gherpropens sitytospendincomeongo oodsandserv vices (asoppos sedtosavingorinvesting),andtospend dlocally,than nthosewithh higherincom 91Studiesof mes. theEarne edIncomeTax xCreditandr recentfederalstimuluspay ymentsfindt thatlowincomehouseholds 92 spentapp proximately70percentofthesepaymentsimmediat telyafterrece eivingthem.9 Accordingly y,the multiplier reffectofJob bStartisestim matedbyassu umingthatparticipantsspe ent70percen ntofincome earnedth hroughtheprogram.Thisr representsac conservativeassumption,asthedefinit tionoflow incomeho ouseholdsusedinthestud diesaresubst tantiallyhigherthanthehouseholdincomesofJobS Start participan nts,suggestin ngthatJobSta artparticipant tsmightspen ndagreaterp proportionofearnedincom meto 93 meetimm mediateneeds.
90

U.S.Depart tmentofCommerce,BureauofEcon nomicAnalysis.(1997March).Regio onalmultipliers:Auserhandbookfo ortheRegionalInp put OutputMode elingSystem(RIMS SII).Washington,DC:Author. 91 P.Orszag& &J.Stigliz.(2001N November).Budgetcutsversustaxin ncreasesatthesta atelevel:isonemo orecounterprodu uctivethantheoth her duringarecession?Washington,DC:CenterforB BudgetandPolicyPriorities.Several lstudiesofthecon nsumerresponsetotaxrebatesfind dthat householdsspendahigherproportio onoftheirtaxreb batesthanthetypi icalmiddleincome ehousehold.D.Jo ohnson,J.Parker,& &N. lowincomeh Souleles.(200 06December).Ho ouseholdexpenditureandtheincom metaxrebatesof2 2001.AmericanEc conomicReview,Volume96,15891610.(p. 1603).J.Park ker,N.Soueles,D.Johnson,&R.McClelland.(2009De ecember).Consum merspendingandt theeconomicstimuluspaymentsof2 2008. RetrievedOct tober27,2011fro omhttp://finance.wharton.upenn.edu/~souleles/rese earch/papers/ESP2 2008_v7b_results. .pdf(p.16). 92 EITCrecipie entsspent70perc centoftheirEITCc checks.Lowincom mehouseholdsspe ent76percentoft their2001income etaxrebatesand7 71.5 percentoftheir2008economic cstimuluspaymen nts.R.Edwards.(2 2003September).Macroeconomicim mplicationsoftheEarnedIncomeTa ax Credit.Retrie evedOctober27,2 2011fromhttp://w www.demog.berke eley.edu/~redwards/Papers/edward dseitc.pdf(p.16). .D.Johnson,J.Par rker,& N.Souleles.(2006December).Householdexpenditureandtheinc cometaxrebateso of2001.AmericanEconomicReview w,Volume96,1589 91610. Parker,N.Soueles, ,D.Johnson,&R.McClelland.(2009 9December).Cons sumerspendingan ndtheeconomicstimuluspaymentsof (p.1603).J.P 2008.Retriev vedOctober27,20 011fromhttp://fin nance.wharton.up penn.edu/~soulele es/research/paper rs/ESP2008_v7b_results.pdf(Table6 6). 93 In2004,the eaverageannualincomeofanEITC Celigiblehousehol ldwas$28,599,eq quivalentto$2,383permonth.Thestudiesofspendin ngfrom the2001inco ometaxrebateand2008economicstimuluspayment tsdefinedlowinco omehouseholdsa asthosewithannu ualearningsequaltoor

67

WhileJobStartparticipantscouldhavespentincomeearnedthroughtheprograminmultipleeconomic sectors,muchoftheirspendingislikelytohaveoccurredintheretailsector.Theretailsector encompassesawidevarietyofbusinessesatwhichparticipantsmighthavespentincomeearned throughJobStart,includinggrocerystores,clothingstores,gasstations,furnitureandhomefurnishings stores,andelectronicsandappliancestores.94ThemultipliereffectofJobStartisestimatedbyassuming thatparticipantsspentincomeearnedthroughtheprogramintheretailsectorinCookCounty. Table15showsestimatesofeconomicactivityinCookCountyassociatedwithJobStartparticipant wagesgiventheassumptionspreviouslynoted.Theseincludeaninitialincreaseindemandof$2.8 millionresultingfromwagesspent;asubsequentincreaseindemandof$2.3millionresultingfrom businessspendingtosupportinitialdemand;$1.2millionofincreasedearningsacrossCookCounty householdsfromincreaseddemandforgoodspurchasedintheretailsector;anda44jobincreasein employmentacrossCookCountyasaresultofincreaseddemandintheretailsector.Assumingthat participantswouldnothavereceivedandspent$2.8millionintheabsenceofJobStart,thisrepresents neweconomicactivityacrossCookCountythatwasstimulatedbyJobStartparticipantwages. Table15:EstimatedEconomicActivityAssociatedWithJobStartParticipantWagesinCookCounty95
TotalwagesearnedbyJobStartparticipants Proportionofwagesspentintheretailsector Increaseddemand Initial Subsequent Total Increasedhouseholdearnings Increasedemployment

$3,936,423 0.70 $2,755,496 $2,327,292 $5,082,788 $1,228,676 44

ARRA,whichcreatedtheTANFEF,wasdesignedtocushionthefallindemandforgoodsandservices andtheattendantdeclinesinconsumerandbusinessconfidenceandhouseholdwealthcausedbythe financialcrisis.96Theestimatedincreasesindemand,householdearnings,andemploymentassociated withJobStartindicatethattheprogramhelpedfulfilltheseARRAgoals.

ParticipantIncomeandEmployability
PriortoJobStart,participantsreportedverylowhouseholdincomes,evenwithpublicbenefitsincluded. Participantsearned$3,936,423intotalwagesoverthecourseoftheprogram.

lessthan$34,298and$32,000,equivalentto$2,858and$2,667,respectively.Asnotedpreviously,averagehouseholdincomereportedby JobStartadultprogramparticipantsuponentrywasonly$609permonth,equivalentto$7,308peryear.A.GoodmanBacon&L.McGranahan. (2008).HowdoEITCrecipientsspendtheirrefunds?Chicago:FederalReserveBankofChicago.(p.21).D.Johnson,J.Parker,&N.Souleles. (2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610.(p.1604).J. Parker,N.Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof2008.Retrieved October27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(Table6). 94 U.S.DepartmentofLabor,BureauofLaborStatistics.RetailTrade:NAICS4445.RetrievedJune28,2011from http://www.bls.gov/iag/tgs/iag4445.htm 95 BureauofEconomicAnalysisRegionalInputOutputMultiplierSystemTypeIImultipliersandanalysisofprogramrecords. 96 CouncilofEconomicAdvisers.(2010November).TheeconomicimpactoftheAmericanRecoveryandReinvestmentActof2009:Fifth quarterlyreport.Washington,DC:Author.(p.1).

68

Table16comparestheaveragemonthlyhouseholdincomeofparticipantsuponenteringJobStartwith averagemonthlyincomeearnedthroughtheprogram. Averagemonthlyincomeearnedbyadultprogram participantswasmorethandoubletheiraveragehousehold [JobStart]providedmeajob incomeuponenteringJobStart,whileaveragemonthly whichinturnhelpedmeprovide incomeearnedbyyouthprogramparticipantswas78.5 formyfamily.JobStartParticipant percentoftheiraveragehouseholdincomeuponentry. Table16:AverageMonthlyHouseholdIncomeUponEnteringJobStartComparedwithAverage MonthlyIncomeEarnedThroughJobStart97
Adults AveragemonthlyhouseholdincomepriortoJobStart Averagewagesperparticipantearnedintransitionaljob(total) Averagenumberofmonthsworkedintransitionaljob Averagewagesperparticipantearnedintransitionaljob(permonth) Averagewagesearnedpermonthasapercentageofpriorhouseholdincome $609 $3,100 2.3 $1,361 223.5% Youth $1,127 $1,523 1.7 $884 78.5% All $760 $2,593 2.1 $1,234 162.5%

AprimaryavenuethroughwhichTJprogramsmayimproveemployabilityisbyhelpingparticipantslearn andpracticesoftskillsneededtomaintainemployment.TheEmployerSurveyaskedrespondentsto ratetheperformanceoftheirJobStartemployeesonsixsoftskillsatthebeginningandendofthe transitionaljob:amountofsupervisionneeded,productivity,personalpresentation,punctuality, communicationaboutabsences,andinterpersonalskills.Thesurveyalsoaskedrespondentstoratethe overallperformanceoftheirJobStartemployeesatthebeginningandendofthetransitionaljob. Table17showshowemployerrespondentsratedparticipant performanceatthebeginningandendoftheirtransitionaljobs. Thebestthingaboutthe Insixperformanceareasandonoverallperformance,the programformewasthatIgotto percentageofemployerswhoratedparticipantsaspoor,very learnnewskillsandget[sic] poor,orfairdecreasedmoderatelyfromthebeginningtothe comfortablearoundpeopleI'llbe endofthetransitionaljob,whilethepercentagewhorated workingwith.JobStartParticipant participantsgoodorverygoodincreasedmoderately. Table17:ChangeinSoftSkillsasReportedbyEmployerSurveyRespondents98
Softskill Needforsupervision Productivity Personalpresentationc Punctuality
d c b a

Poororverypoor Before 19.7% 18.3% 12.5% 20.8% After Change Before 12.1% 12.7% 8.3% 18.1% 7.6% 5.6% 4.2% 2.8% 39.4% 36.6% 30.6% 29.2% 21.4% 32.4% 26.8%

Fair 15.2% 24.2% 23.9% 12.7% 23.6% 20.8% 20.0% 22.5% 18.3% 6.9% 8.3% 1.4% 9.9% 8.5%

Goodorverygood After Change 72.7% 63.4% 68.1% 61.1% 64.3% 70.4% 74.6% 31.8% 18.3% 11.1% 11.1% 11.4% 21.1% 16.9% 40.9% 45.1% 56.9% 50.0% 52.9% 49.3% 57.7%

After Change Before

Communicationaboutabsences 25.7% Interpersonalskills Overallperformance

a

15.7% 10.0% 7.0% 11.3% 7.0% 8.5%

18.3%
b

15.5%

N=66. N=71. N=72. N=70.

97 98

AnalysisofJobStartprogramrecords.N=865adultsand355youthforrecordsofhouseholdincome. AnalysisofJobStartEmployerSurveyResponses.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.

69

Table18showshowparticipantsratedthelikelihoodthattheywouldexercisecertainsoftskillsafter completingJobStart.Forallbutonesoftskill,themajorityofrespondentsreportedthattheyweremore likelytoexercisethesoftskillslistedsincecompletingJobStart.Theproportionreportingthattheywere morelikelytoapplysoftskillssuchasshowingupontimeforwork,cooperatingbetterwithcoworkers, andgettingtheirworkdonewithlesssupervisionrangedfrom48.3to73.5percent.

Table18:ChangeinLikelihoodofExercisingSoftSkillsAfterCompletingJobStartReportedby RespondentstotheParticipantSurvey99
Imoreconsistentlyshowupforworkontimea IcallmysupervisorifI'mgoingtobelateormiss workb Igetalongbetterwithmysupervisorc Ihaveabetterideaofhowtopresentmyselfat workc Icooperatebetterwithmycoworkersd Imissfewerdaysofwork Igetmyworkdonewithlesssupervision I'mbetteratcourteouslydealingwithcustomers orothermembersofthepublicb I'mmoreconfidentinmyabilitytobesuccessful atworkh
a b c d e f

Lesslikely 1.4% 2.4% 4.3% 1.0% 1.9% 19.5%

g

Somewhat lesslikely 1.0% 0.5% 0.9% 0.5% 2.9% 3.9% 1.0% 2.4% 0.9%

Thesame 20.0% 16.3% 22.7% 24.8% 22.4% 20.0% 23.7% 20.1% 18.5%

Somewhat Morelikely morelikely 7.6% 12.0% 14.7% 9.0% 13.3% 8.3% 11.6% 17.2% 5.7% 70.0% 68.9% 57.3% 64.8% 59.5% 48.3% 58.9% 58.4% 73.5%

e,f

4.8% 1.9% 1.4%

N=210. N=209. N=211. N=225. N=205. Themarkeddifferencebetweenresponsestothissoftskillsquestionandallothersoftskills questionssuggeststhatsomerespondentsmisinterpretedthequestion,intendingtoindicatethattheywerelesslikelytomissmoredaysofwork, g h ratherthanlesslikelytomissfewerdaysofwork. N=207. N=226.

TJprogramsmayalsoimproveemployabilitybyhelpingparticipantsestablishanemploymentrecord, acquireemployerreferences,andmakecontactsthatmightbeabletohelpthemintheirjobsearches. AmongParticipantrespondents,67.1percentagreedorsomewhatagreedthattheirtransitionaljobs hadincreasedtheirattractivenesstootheremployers,and68.4percentstronglyagreedorsomewhat agreedthattheyhadmetusefulcontactsthroughthesejobs.100MostEmployerrespondents(91.9 percent)reportedtheywouldprovideareferenceforatleastafewoftheirJobStartemployees,and 66.2percentreportedthattheywouldprovideareferenceforhalformore.101Additionally,44.6percent reportedthattheyweremorelikelytohirelowincomeparentsoryouththantheywerebefore JobStart,andonly8.1percentreportedtheywerelesslikelytohirelowincomeparentsoryouth.102

Inaddition,TJprogramsmayhelpparticipantslearnnewskillsandexplorecareeroptionsbyexposing themtoanewtypeofwork.AmongParticipantrespondents,72.7percentstronglyagreedorsomewhat agreedthattheirtransitionaljobtaughtthemnewskills,and73.9percentstronglyagreedorsomewhat agreedthattheywereexposedtoanewtypeofworkthroughtheirtransitionaljobs.103

99

AnalysisofJobStartParticipantSurveyresponses.Allrespondentsworkedatleast1hourinatransitionaljob. AnalysisofJobStartParticipantSurveyresponses.N=213forresponsestothestatementMyJobStartjobhasincreasedmyattractiveness tootheremployersand212forresponsestothestatementImetcontactsthroughmyJobStartjobwhoImaybeabletouseinthefutureif Imlookingforanewjoboropportunity.Allrespondentswereemployedatleast1hourinatransitionaljob. 101 AnalysisofJobStartEmployerSurveysresponses.N=74.Allrespondentsemployedatleastoneparticipantforatleast1hourinaTJ. 102 AnalysisofJobStartEmployerSurveyresponses.N=74.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob. 103 AnalysisofJobStartParticipantSurveyresponses.N=214forresponsestothestatementMyJobStartjobtaughtmenewskillsand215for responsestothestatementMyJobStartjobexposedmetoanewtypeofwork.Allrespondentswereemployedatleast1hourinaTJ.
100

70

TransitionalJobsandUnsubsidizedJobPlacement
ThissectionexaminesplacementofJobStartparticipantsintounsubsidizedemployment,educationor training,andotherjobsprogramsusingdatafromrecordsmaintainedbyeachgrantee.Theserecords likelyunderrepresentthenumberofparticipantswhofoundemploymentfortworeasons.First,some participantsmayhavefoundunsubsidizedemploymentbeforeJobStartendedbutmaynothave informedtheirJobStartagency.Onceaparticipantfindsajob,heorshemayhavelittleincentiveto maintaincontactwithanemploymentprogram,withtheresultthatplacementratesreportedby employmentprogramsgenerallyunderrepresentactualplacementrates.Theplacementstatusof18.3 percentofadultparticipantswasunknownatthetimeJobStartendedandsomeoftheseparticipants mayhavefoundunsubsidizedjobs.Second,granteerecordsgenerallyreflectplacementatthetime JobStartended.Participantsreportedasunemployedorplacedineducation,training,oranotherjobs programmayhavefoundunsubsidizedemploymentafterJobStartended.Severalprojectdirectors indicatedthatsomeparticipantswhowereunemployedwhenJobStartendedfoundunsubsidized employment.Onereportedthat12participants(asubstantialproportionofallwhoworkedina transitionaljob)foundunsubsidizedemploymentnearly3monthsaftertheprogramended. Initially,the2016Fundallocated2,270subsidizedemploymentslotsacrossallgrantees.Astheprogram progressedandsomegranteesexperienceddifficultyenrollingthenumberofparticipantstowhichthey hadcommittedintheirgrantagreements,the2016Fundreallocatedsomeprogramslotsandreduced thetotalnumberofslotsto2,154. Table19showsthenumberofJobStartparticipantswhoworkedintransitionaljobsasapercentageof initialprogramslotsallocatedbygrantee.Acrossallgrantees,66.9percentofallinitialprogramslots werefilled;excludingtheChicagoHousingAuthority,88.8percentofallinitialprogramslotswerefilled. Eightgranteesfilledover100percentoftheirinitialslotsandwereallocatedadditionalslotsafterthe programbegan.

Table19:JobStartPlacementIntoTransitionalJobsbyGrantee104
Grantee AlternativeSchoolsNetwork AssociationHouse CentersforNewHorizons CentralStatesSER ChicagoHousingAuthority HeartlandHumanCareServices InspirationCorporation NationalAbleNetwork OAI,Inc. PhalanxFamilyServices SaferFoundation WestsideHealthAuthority Total
104

Initialtransitionaljobslots Adult 32 50 125 500 75 25 90 42 100 20 1,059 Youth 206 900 30 75 1,211 Total 206 32 50 125 1,400 75 25 90 42 130 20 75 2,270

Transitionaljob participants Adult 44 52 179 303 94 23 131 30 149 25 1,030 Youth 77 235 45 131 488 Total 77

Percentageofinitial transitionaljobslotsfilled Adult Youth 37.4% Total 37.4% 137.5% 104.0% 143.2% 26.1% 38.4% 92.0% 71.4% 125.3% 145.6%

44 137.5% 52 104.0% 179 143.2% 538 23 30 60.6% 92.0% 71.4% 94 125.3% 131 145.6%

194 149.0% 150.0% 149.2% 25 125.0% 131 1,518 97.3% 125.0% 40.3% 66.9% 174.7% 174.7%

Analysisofprogramrecords.Allparticipantsworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords.

71

Itwashopedthatatleast60percentofadultsand75percentofyouth(atleast600adultsand900 youth),wouldenterintounsubsidizedemployment,furthereducationortraining,orsomecombination oftheseactivitiesaftertheprogramended.Table20shows thenumberofparticipantswhowereknowntohaveentered unsubsidizedemployment,educationortraining(including [JobStart]provideduswithtwo highschoolorcollege),oranotherjobsprogramattheendof goodworkerswhichwestillhave JobStartasapercentageofallthosewhoworkedina onstafftoday.JobStartEmployer transitionaljob.

Table20:PlacementRatesforJobStartParticipants,EndofProgram105
Adults Workedinatransitionaljob Enteredunsubsidizedemployment Enrolledineducationortraining Enrolledinanotherjobsprogram Oneormoredesiredoutcomesc Unemployed Unknown
a

Youth 100.0% 12.0% 6.0% 3.8% 21.8% 59.9% 18.3% 488 14 394 40 448 16 24 100.0% 2.9% 80.7% 8.2% 91.8% 3.3% 4.9%

Total 1,518 138 456 79 673 633 212 100.0% 9.1% 30.0% 5.2% 44.3% 41.7% 14.0%

1,030
b

124 62 39 225 617 188

Aparticipantiscountedashavingworkedinatransitionaljobifheorsheworkedforatleast1hourinatransitionaljobaccordingtoprogram records. Includesfiveadultparticipantsandfiveyouthprogramparticipantswhoenteredbothunsubsidized employmentandeducationortraining. Sumofunsubsidizedemployment,educationortraining,unsubsidizedemploymentandeducationortraining,andanotherjobsprogram. Postprogramstatusismarkedunknowninprogramrecordsorisotherwiseindeterminatefromprogramrecords.

Amongadultprogramparticipants,21.8percentachievedoneormoredesiredoutcomesattheendof theprogram:12.0percententeredunsubsidizedemployment,6.0percententerededucationor training,and3.8percententeredanotherjobsprogram.Overhalf(59.9percent)ofadultprogram participantswereunemployedaccordingtoprogramrecords.Amongyouthprogramparticipants,91.8 percentachievedoneormoredesiredoutcomes:theoverwhelmingmajority(80.7percent)entered educationortraining,andanother8.2percententeredanotherjobsprogram.

OveralleconomicconditionsmayalsohaveimpededplacementofJobStartparticipantsinto unsubsidizedjobsbeforetheprogramended.Figure26showsChicagosunemploymentratein September2010andtheunemploymentratesofAfricanAmericanswithahighschooleducationorless acrosstheUnitedStatesin2010.Unemploymentwas10.6percentinChicagoinSeptember2010,the monththatJobStartended.AcrosstheUnitedStates,unemploymentwasevenhigherforAfrican Americanswithloweducationalattainment,thedemographicsoftheoverwhelmingmajorityofJobStart participants.Persistenthighunemploymentamongthesepopulationssuggeststhateconomic conditionsin2010contributedtothedifficultyJobStartparticipantsfacedfindingunsubsidizedjobs.

105

Analysisofprogramrecords.Allparticipantsworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords.

72

Figure26:UnemploymentRatesofChicagoandofU.S.AfricanAmericansWithLowEducational Attainment106
25.0% UnemploymentRate(Unadjusted) 22.5%

20.0% 15.8% 15.0% 10.6% 10.0%

5.0%

0.0% Chicago,September2010 U.S.,AfricanAmericansage25andover withoutahighschooldiploma,2010 Population U.S.,AfricanAmericansage25and over,highschoolgraduate,2010

Lackoffundingtocontinuecasemanagementandjobplacementactivitiesmayhaveimpeded placementofparticipantsintounsubsidizedjobsafterJobStartended.Researchsuggeststhatthe durationandintensityofretentionservicesispositivelyrelatedtoemploymentoutcomes:anevaluation ofemploymentandretentionprogramsfoundthatparticipantswhoreceivedretentionservicesfor6 monthsorlongerandthreeormorecontactspermonthweremorelikelytobeconsistentlyemployed, workfulltime,andexperiencegreaterincreasesinhourlywagesandannualearnings.107Fourproject directorsreportedthatlackoffundingtocontinueplacementactivitieswasareasonwhysome participantswerenotplacedinunsubsidizedjobs. TodeterminewhichJobStartparticipantsfoundemploymentinthemonthsfollowingtheendofthe programandtoimproveunderstandingofJobStartemploymentoutcomes,theSocialIMPACTResearch CenterhassubmittedarequestfordataontheemploymentandearningsofparticipantsfromIllinois UnemploymentInsurancesystem.Currently,JobStartprogramrecordsaretheonlysourceof informationavailableontheemploymentoutcomesofparticipants;however,theyrepresentarelatively incompleteandunreliablesourceforassessingemploymentoutcomes.Programrecordsshowonlythe numberofparticipantsplacedatthetimetheprogramended,andasnotedpreviously,participantswho foundunsubsidizedemploymentaroundthetimethattheprogramendedmostlikelyhadlittleincentive toreporttheirplacementstotheirJobStartagency.DatafromtheUnemploymentInsurancesystem, whichrequiresemployerstoreportemployeeearningsandcoverstheoverwhelmingmajorityofpublic andprivatesectoremployees,willofferamuchmorecompletepictureofemploymentoutcomes.Plans forusingthisdatatoinvestigateplacementoutcomesandestimateprogramimpactsonemployment andearningsaredescribedinthefinalchapterofthisreport.

106

SocialIMPACTResearchCenteranalysisofdatafromtheU.S.BureauofLaborStatistics,CurrentPopulationSurveyandIllinoisDepartment ofEmploymentSecurity,LocalAreaUnemploymentStatistics. 107 Clymer,C.,Roder,A.,&Roberts,B.(2005September).Promotingopportunity:FindingsfromtheStateWorkforcePolicyInitiativeon employmentretentionandadvancement.Philadelphia:Public/PrivateVentures.(p.21).

73

EffectsonGrantees
ProjectdirectorsidentifiedthreeprimaryavenuesthroughwhichJobStartaffectedtheiragencies.First, severalexplainedthatthedemandsofsettinguptheirJobStartprogramsoverarelativelyshorttimeline testedthecapacityoftheiradministrativesystemsandtheirabilitytoexecuteaprogram.Inthisway, JobStarthelpedagenciesvalidatesystemsandproceduresthatworkedandidentifyaspectsoftheir operationsthatcouldbeimproved.

Second,JobStartenabledgranteestocreateorstrengthenrelationshipswithemployersandprospective participants.Whilemostgranteesrecruitedfromamongemployerswithwhichtheyhadworkedbefore, manygranteesalsorecruitednewemployersforJobStart,andseveralreportedthattheywould continuetousetheseemployersforotherprograms.OneprojectdirectornotedthatJobStartprovided anopportunityfortheagencytorepairitsrelationshipwithanemployer.Anotherexplainedthat JobStartaffordedtheagencynewpublicity,helpingneighborhoodresidentslearnthattheagency existedtoservetheirneeds.

Third,experiencewithJobStartpromptedsomeagenciestointroduceinnovationsusedforJobStartinto otherprograms.OneprojectdirectorexplainedthatexperiencewithJobStarthadmotivatedtheagency toaddtransitionaljobstoitsexistingjobtrainingandplacementprogram: Thiswasourprogramsfirstopportunitytorunatransitionaljobsprogram,and wehavelearnedatremendousamount.Wehavelearnedthatsomeofour participantsneedthisopportunitynotjustforthemoneybutfortheirself confidence.Alotofourparticipantshavenotworkedinquitesometime,and wefeelthatiftheycanhaveanopportunitytogetintoatransitionaljob,they aremoremotivatedandenergizedtoseekanunsubsidizedplacement.

Contingentonavailableresources,thedirectorstatedthattheagencywouldaddatransitionaljobs componenttoanexistingemploymentprogram.

StakeholderSatisfaction
Figure27showsthepercentagesofParticipantandEmployerSurveyrespondentswhoindicatedthat theywouldparticipateinJobStart,orinasimilarprogram,ifitwereofferedagain.Theoverwhelming majorityofrespondentsto(91.7percentofparticipantsand85.1percentofemployers)indicatedthat theywouldparticipateagain. Communityresidentsbecame familiarwith[ouragency]andwhat itiswedohere.Wewereableto expandourrelationshipswith employers.Weprovedtoourselves thatweareinfactabletoruna programlikeJobStartandimprove thequalityoflifeofmanypeople. JobStartProgramStaffPerson
74

JobStartwasanexcellent experience.Itmadeasignificant impactonoursummerprogram.I wouldstronglyadvocateforthis programtocontinue.Itnotonly impactedourbusinessandprogram butalsothelivesoftheyoung adultswhowewereabletohire. JobStartEmployer

Figure27:ProportionofParticipantandEmployerSurveyRespondentsWhoWouldParticipatein JobStartAgain108
Participants
1.9% 6.3%

Employers

2.7% 12.2%

91.7%

85.1%

Table21showsresponsestoParticipantSurveyquestionsaboutsatisfactionwithunsubsidizedjob placementservices.ThemajoritystronglyagreedorsomewhatagreedthatJobStartprovidedquality placementservices.However,overonequarterofrespondentsdidnotfeelthattheyhadmany opportunitiestoapplyforjobsinwhichtheywereinterestedorthatprogramstaffgavethemleadsto employersthatwerehiring,andslightlylessthanonequarterdidnotfeelthatstaffspentenoughtime helpingthemfindajob.Thesubstantialminorityofrespondentswhoexpresseddissatisfactionwith theseaspectsofplacementservicesmayreflecttheinabilityofprogramstocontinuehelping participantsfindunsubsidizedemploymentafterreimbursementended.

Table21:ParticipantSatisfactionwithJobPlacementServicesasReportedbyParticipantSurvey Respondents109
JobStartstaffspentenoughtimehelpingmefinda joba JobStartstaffconsideredmyinterestsinjob planningb IhadlotsofopportunitiestoapplyforjobsIwas interestedinc Ilearnedskillsthatmadememoreconfidentin myabilitytofindajobd JobStartstaffgavemeleadstoemployersthat werehiringe
a

Strongly disagree 17.9% 13.7% 21.9% 9.1% 19.3%

Somewhat disagree 7.1% 3.3% 7.1% 3.8% 7.7%

Neither agreenor disagree 11.8% 10.0% 17.6% 16.3% 10.6%

Somewhat Strongly agree agree 22.6% 29.4% 21.0% 18.3% 24.2% 40.6% 43.6% 32.4% 52.4% 38.2%

N=212. N=211. N=210. N=208. N=207.

108 109

AnalysisofJobStartParticipantandEmployerSurveyresponses.N=206participantsand74employers.Allparticipantrespondentswere employedforatleast1hourinatransitionaljob,andallemployerrespondentsemployedatleastoneparticipantforatleast1hourinaTJ. AnalysisofJobStartParticipantSurveyresponses.Allrespondentsworkedatleast1hourinatransitionaljob.

75

Table22showsresponsestoEmployerSurveyquestionsaboutsatisfactionwithgranteeperformance. Amongrespondents,84.9percentreportedthattheoverallperformanceoftheJobStartgranteethey workedwithwasgoodorverygood.Ineachindividualarea,75percentormoreofrespondents reportedthattheperformanceoftheirgranteewasgoodorverygood. Table22:EmployerSatisfactionWithGranteePerformanceasReportedbyEmployerSurvey Respondents110

Verypoor Knowledgeofprogramrulesandprocedures Responsivenesstophonecallsandemails Timelinessinplacingparticipants Willingnesstohelpaddressproblemsituations Supportgiventoparticipantsa Overallsatisfaction
a

Poor 1.4% 2.8% 4.1% 1.4% 4.1% 1.4% 1.4%

Fair 17.8% 21.1% 12.3% 15.1% 16.4% 20.5% 12.3%

Good 45.2% 28.2% 27.4% 26.0% 24.7% 28.8% 27.4%

Verygood 34.2% 46.5% 54.8% 54.8% 53.4% 47.9% 57.5%

1.4% 1.4% 1.4%

a

2.7% 1.4% 1.4% 1.4%

Effectivenessinaddressingproblemsituationsa
a

N=73. N=71.

Table23showsthesatisfactionofgranteeprojectdirectorswiththe2016Fundregardinghowthe2016 FundhelpedtheiragenciesoperatetheirJobStartprograms.Projectdirectorsreportedarelativelyhigh levelofoverallsatisfactionwiththe2016Fund.Elevenreportedthatitsoverallperformancewasvery goodorgood,andonlytworeportedthatitsoverallperformancewasfair.However,ratingsdiffered acrossperformanceareas.Consistentwithreportsthatthe2016Fundissuedchangestoprogramrules andproceduresaftergranteeshadstartedoperatingtheirJobStartprogramsandthatagencystaff sometimesreceivedcontradictoryresponsestoquestionsfromdifferent2016Fundstaffpeople,six projectdirectorsratedthe2016Fundasfair,poor,orverypoorintheareasofclearandtimely communicationofrulesandprocedures.Bycontrast,mostgranteesratedthe2016Fundasverygoodor goodintheareasofwillingnessandeffectivenessataddressingproblemsandinprovidingpayroll reimbursementandplacementfeesquickly. Table23:GranteeSatisfactionWith2016FundPerformanceasReportedbyProjectDirectorSurvey Respondents111
Verypoor Clearcommunicationofprogramrulesandprocedures Timelycommunicationofruleandprocedurechangesa Clearandtimelyresponsestoquestionsa Willingnesstohelpaddressproblemsituations Effectivenessinaddressingproblems Timelinessofpayrollandplacementfeepayment Overallperformancea
a

Poor 0 1 1 0 1 0 0

Fair 5 4 2 2 2 1 2

Good 4 5 6 5 5 4 7

Verygood 3 2 4 6 5 6 4

1 1 0 0 0

0 0

N=13. N=11.

RelativelylateconclusionoftheCommunityServicesAgreement(CSA)betweenIDHSandthe2016Fund andclarificationfromIDHSabouttheCSAafteritwasexecutedappeartohavecontributedtoproblems
110 111

AnalysisofJobStartEmployerSurveyresponses.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob. AnalysisofJobStartProjectDirectorSurveyresponses.Onegranteesubmittedseparatesurveysforitsadultandyouthprograms.

76

withthecommunicationofprogramrulesandproceduresfromthe2016Fundtothegranteesandto somegranteedissatisfactionwiththeseaspectsofthe2016Fundsperformance.Asnotedpreviously, theCSAwasexecutedonlyoneweekbeforethetargetdateonwhichparticipantswouldhavetobegin theirtransitionaljobsinordertoworkthefull16weeksofsubsidizedemploymentavailable.Bythat date,somegranteeshadalreadystarteduptheirJobStartprograms.ComplicatedaspectsoftheCSA necessitatedclarificationfromIDHSaftertheCSAwasexecuted,andtheseclarificationsrequired granteestochangetheirproceduresmidprogram.Theneedformidprogramchangesappearstohave contributedtoproblemswithcommunicationreportedbygrantees.Whilesomeprojectdirectors expresseddissatisfactionwiththeseaspectsofJobStart,mostrecognizedthattheywerecausedlargely bythelateexecutionoftheCSA.

Summary
Intherelativelyshorttimeitoperated,JobStartenabledparticipantstoearnsubstantialincomerelative totheirincomesuponenteringtheprogram.Itisestimatedthatparticipantsstimulated$5.1millionof increaseddemand,$1.2millionofincreasedearnings,anda44jobincreaseinemploymentacrossCook Countyastheyspentthisincome.Surveyrespondentsreportedthatparticipantsoftskillsandbusiness performanceincreasedmodestlyduringtheprogram,andtheoverwhelmingmajorityofrespondents indicatedthattheywouldparticipateagain.Accordingtoprogramrecords,21.8percentofadult participantsand91.8percentofyouthparticipantshadenteredunsubsidizedemployment,educationor training,oranotherjobsprogramatthetimeJobStartended.Someparticipantswhoseplacement statusisunknownmayhaveenteredunsubsidizedemploymentwithoutnotifyingtheirJobStartagency andothersmayhavefoundunsubsidizedemploymentsometimeaftertheprogramended.Overall economicconditionsandlackoffundingtocontinueservicesaftertheprogramendedmayhave impededplacementintounsubsidizedjobs.DatafromtheUnemploymentInsurancesystemwillenable theSocialIMPACTResearchCentertoconstructamorecompletepictureofemploymentoutcomesand estimateprogramimpacts.

77

ComparisonwithPutIllinoistoWork
PutIllinoistoWork(PITW)andJobStarthadsimilareligibility requirements,andbothenrolledparticipantsfromtheJobStart CCAs.PITWdifferedfromJobStartinthatitservedparticipants fromacrossIllinoisandthatproviderswerenotinstructedtotarget participantswithmultiplebarrierstoemploymentorrequiredto providesupportiveservices.Thecontemporaneousoperationof thetwoprogramsallowsforasidebysidecomparisonofaTJ programwithasubsidizedemploymentprogram.112

ProgramDesign:SimilaritiesandDifferences
AsprogramssupportedbyTANFEF,JobStartandPITWsharedimportanteligibilityrequirements. Participantsinbothprogramsmusthavebeencustodialparentsorguardians,noncustodialparents,or youthages16to21fromhouseholdswithincomesbelow200percentofthefederalpovertylevel.The programsdifferedontwoeligibilityrequirements.First,JobStartparticipantsmusthaveresidedinthe designatedCCAs.Bycontrast,PITWparticipantscouldresideanywhereinIllinois.Second,JobStart directedgranteestoprioritizeenrollingparticipantswithmultiplebarrierstoemploymentwhomight benefitfromthesupportiveservicesofferedandtoreferrelativelyworkreadyapplicantstoPITW.Six JobStartgranteesreferredsomeJobStartapplicantstoPITW.Fourmadethesereferralsbecausethe applicantsresidedoutsidethedesignatedCCAs,andonemadereferralsbecauseJobStarthadended. ThreegranteesthatoperatedbothJobStartandPITWprogramsreferredsomePITWapplicantsto JobStartbecauseapplicantshadbeenwaitlistedforPITW,becausePITWstoppedenrollingapplicantsin midsummer,orbecausetheapplicantscouldnotenrollinPITWotherreasons.Overall,workreadiness appearsnottohaveaffecteddecisionstoreferapplicantsfromoneprogramtotheother.

JobStartandPITWemployedsimilarorganizationalstructures,butdifferedsubstantiallyintermsof supportiveservices,timeframe,andscale. UnderPITW,IDHScontractedwithHeartlandHumanCareServices(HHCS),anIllinoisnonprofit withexperienceoperatingTJprograms,tooverseetheprogramandserveastheemployerof recordforparticipants.HHCScontractedwith26publicandnonprofitorganizations,called subcontractors,torecruitparticipantsandplacethemwithemployers.Inthisway,HHCSandits subcontractorsperformedsimilarfunctionstothe2016Fundanditsgrantees,althoughHHCS notitssubcontractorsservedastheemployerofrecordandpaidparticipantwages.113 UnlikeJobStart,PITWdidnotrequiresubcontractorstoprovidesupportiveservicesto participants,althoughsomesubcontractorsdidprovidesomesupportiveservices. PITWoperatedforalongerdurationthanJobStart.Theprogrambeganplacingparticipantsin subsidizedemploymentinApril2010andwasextendedusingstatefundingaftertheSeptember 30deadlineforusingTANFEFfunding.PITWendedinmidJanuary2011.114

112

TheSocialIMPACTResearchCenterisalsoevaluatingPITW.ThePITWdatainthischaptercomefromafewkeysourcesoftheongoing evaluation:theprogramscentraldatabase,payrollrecords,andsurveysofparticipantsandemployersthatcontainedmanyofthesame questionsastheJobStartsurveys. 113 SocialIMPACTResearchCenter.(2010October).PutIllinoistoWorkevaluation:Anearlylook.Chicago:Author.(p.1315). 114 PITWwasinitiallyextendeduntilNovember30,2010,onlyafewdaysbeforetheoriginalSeptember30expirationdate.Itwasthen extendedagainbythestateafewdaysbeforethisnewNovemberexpirationdateuntilJanuary15,2011.

78

PITWandJobStartemployeddifferentsystemsforpayingsubcontractorsandparticipants.PITW subcontractorswerepaidaflat,onetimefeeforeveryparticipantplacedinasubsidizedjob. HHCSadministeredparticipantpayroll,obviatingtheneedforavoucheringsystem.PITWalso employedacentralizedonlinedatabasewhereallsubcontractorsenteredapplicantinformation, placementinformation,andhoursforpayroll,resultinginstandardizedreimbursementprocess acrossallsubcontractorsandgreatlyreducingpaperwork.TheseaspectsofthePITWpayment processmadePITWrelativelysimpleforsubcontractors. PITWoperatedonafargreaterscalethanJobStart,employingover27,000participantsin71of 102Illinoiscounties.115

ParticipantCharacteristics
ThissectioncomparescharacteristicsofJobStartparticipantsandPITWparticipantswithinthe13 JobStartCCAs.Additionally,itcompareschangeinbusinessperformancereportedbyJobStart employersandPITWemployerswithinChicago.Thisallowsforacomparisonoftheexperiencesof participantsandemployersfromsimilareconomicandcommunityenvironmentsworkingunder differentprograms.IntablescomparingcharacteristicsofsamplesfromJobStartandPITWparticipants, differencesarestatisticallysignificantatthe95percentconfidencelevelunlessotherwisenotedinthe table.WheredataforonlythosePITWparticipantsresidingintheJobStartCCAsareunavailable, JobStartparticipantsarecomparedtoallPITWparticipantsandthedataissueisnoted.Figure28shows thelocationofPITWparticipantresidenceswithinthe77CCAs.

Figure28:JobStartCCAsandResidentialAddressesofPutIllinoistoWorkParticipants116

115 116

SocialIMPACTResearchCenter.(2010October).PutIllinoistoWorkevaluation:Anearlylook.Chicago:Author.(p.5). AnalysisofPutIllinoistoWorkprogramrecords.

79

Table24comparesthepersonalcharacteristicsofJobStartparticipantsandPITWparticipantswho respondedtoasurveyabouttheirexperienceswiththeprogram.AmuchhigherproportionofJobStart respondentswereunderage18(23.4percentcomparedto0.5percentforPITW),mostlikelybecauseof JobStartsdistinctyouthprograms.However,theproportionofparticipantsunder18amongJobStart adultprogramparticipantswascomparabletothatofPITWsurveyrespondents.117Amuchhigher percentageofJobStartparticipantshadnotearnedahighschooldiplomaorGED(44.8percent comparedto11.0percentforPITW),andamuchlowerproportionhadsomecollege(12.1percent comparedto40.7percentforPITW).Evenamongadultparticipants,ahigherproportionofJobStart participantshadnotearnedahighschooldiplomaorGED(27.7percentcomparedto11.0forPITW)and alowerproportionhadsomecollege(14.7percentcomparedto40.7percentforPITW). Table24:PersonalCharacteristicsofJobStartParticipantsandPutIllinoistoWorkParticipants ResidinginJobStartCCAs118
JobStart Adults Malea Female Under18 18to21 Over21b AfricanAmerican White Other LessthanahighschooldiplomaorGED HighschooldiplomaorGEDd,f Somecolleged Associate'sorbachelor'sdegree Averagemonthlyhouseholdincome
a b

Youth 42.1% 57.9% 73.0% 27.0% 0.0% 97.9% 1.6% 0.4% 78.9% 13.9% 7.0% 0.2% $1,127

Total 34.6% 65.4% 23.4% 31.5% 45.1% 95.8% 0.9% 3.3% 44.8% 41.5% 12.1% 1.7% $760

PITW 38.3% 61.7% 0.5% 40.9% 58.6% 81.7% 0.8% 17.5% 11.0% 39.8% 40.7% 8.5% $742

31.0%
a

69.0%
b

0.2% 33.6% 66.2%

c

94.8% 0.5% 4.7%

d

c,f

27.7% 55.3% 14.7%

2.4%
e

$609

N=1,022JobStartadultprogramenrollees,484JobStartyouthprogramenrollees,and118PITWparticipants. N=1,023JobStartadultprogramenrollees,478JobStartyouthprogramenrollees,and3,671PITWparticipants. N=1,023JobStartadultprogramenrollees,486JobStartyouthprogramenrollees,and3,625PITWparticipants. N=865JobStartadultprogramenrollees,355JobStartyouthprogramenrollees,and3,696PITWenrollees. N=962JobStartadultprogramenrollees,483JobStartyouthprogramenrollees,and118PITWenrollees. ThedifferencesbetweenproportionsforJobStartandPITWparticipantsarenotstatisticallysignificantatthe95percentconfidencelevel.

c d

e f

Table25comparestheemploymenthistorycharacteristicsofJobStartandPITWparticipantsthatwere availableforbothgroups.FewerJobStartparticipantsreportedthattheyhadeverheldajobbeforethe programbegan(86.7percentcomparedto96.0percentforPITW).Participantswhohadheldajob beforetheyenteredJobStartreportedcomparablewagestoPITWparticipantsintheirmostrecentprior jobs.

117

Asnotedpreviously,granteescouldenrollyouthage16to21inJobStartadultprogramssolongastheymettheTANFeligibility requirements. 118 AnalysisofJobStartandPITWprogramrecordsandPITWparticipantsurveyresponses.AllJobStartparticipantsworkedatleast1hourina transitionaljob.

80

Table25:EmploymentHistoryCharacteristicsofJobStartParticipantsandPutIllinoistoWork ParticipantsResidinginJobStartCCAs119
JobStart Everemployed Lessthan$9.00 $9.00to$9.99 $10.00to$10.99 $11.00to$11.99 $12.00ormore
a b c

Adults 89.9% 47.0% 15.0% 16.0% 4.0% 18.0%

Youth 76.5%
b,c

Total 86.7% 54.8% 13.5% 14.3% 3.2% 14.3%

PITW

Wasparticipanteveremployedbeforeprograma 96.0% 49.2% 13.8% 21.5% 0.0% 15.4% Wageinmostrecentpriorjob

84.6% 7.7% 7.7% 0.0% 0.0%

N=109JobStartadultprogramenrollees,34JobStartyouthprogramenrollees,and101PITWparticipants. N=98JobStartadultprogramenrollees,25JobStartyouthprogramenrollees,and65PITWparticipants.

ThedifferencesbetweenproportionsforJobStartandPITWparticipantsarenotstatisticallysignificantatthe95percentconfidencelevel.

SubsidizedEmployment
BecausePITWoperatedfromApril2010tomidJanuary2011,itallowedparticipantstoworkmuch longerinsubsidizedemploymentthanJobStart.Datareportinglimitationsdonotallowforcalculationof averagehoursinsubsidizedemploymentworkedbyPITWparticipantswhoresidedintheJobStartCCAs, rulingoutadirectcomparisonofthetimethatJobStartandPITWparticipantsworkedinsubsidized employment.AcrossIllinois,PITWparticipantsworked773hoursinsubsidizedemployment,morethan twicetheaveragenumberofhoursworkedbyJobStartadultprogramparticipantsandmorethanfour timestheaveragenumberofhoursworkedbyJobStartyouthprogramparticipants.

Outcomes
PITWwasnotspecificallyintendedtoincreasetheemployabilityofparticipantsorhelpthemfind unsubsidizedemployment.Theprogramdidnotrequiresubcontractorstoprovidejobreadinesstraining orservicestohelpparticipantsfindunsubsidizedjobsanddidnotincludespecificgoalsforunsubsidized placement.Evenso,PITWmighthaveimprovedemployabilityofparticipantsandhelpedthemfind unsubsidizedemploymentthroughsomeofthesameavenuesasaTJprogram,helpingthemlearnand practicesoftskills,establishanemploymentrecordandmakecontactwithemployers,learnnewskills, andexplorecareeroptions. Ofthe13,694PITWparticipantswhowerestillinaPITWjobwhentheprogramfinallyendedinJanuary 2011,20percentwereknowntohaveenteredunsubsidizedemployment. Asnotedpreviously,theSocialIMPACTResearchCenterhassubmittedarequestfordataonthe employmentandearningsofJobStartparticipantsfromIllinoisUnemploymentInsurancesystem.The samedataforPITWparticipantswerealsorequested.Thesedatawillbeusedtoestimatetheimpactsof bothprogramsonparticipantsemploymentandearningsandtocomparetheseimpacts.Thefinal chapterofthisreportdescribestheplannedmethodologyforimpactestimation.
119

AnalysisofJobStartParticipantSurveyresponsesandPITWparticipantsurveyresponses.AllJobStartparticipantsworkedatleast1hourina transitionaljob.

81

Table26comparestheextenttowhichJobStartandPITWparticipantswhorespondedtoasurvey believedthattheprogramshelpedthemmeetfinancialobligationsandbecomemoreemployable.The overwhelmingmajoritystronglyagreedorsomewhatagreedthattheprogramshelpedthemachieve theseends.AmuchhigherpercentageofPITWrespondentsstronglyagreedthattheprogramallowed themtomeetfinancialobligations,althoughnotalldifferenceswerestatisticallysignificantatthe95 percentconfidencelevel.ThismaybebecausetheaveragePITWparticipantworkedmorehoursin subsidizedemploymentthantheaverageJobStartparticipant,andbecausePITWpaidahigherwage. Table26:SatisfactionofJobStartandPutIllinoistoWorkParticipantsResidinginJobStartCCAsWith SelectedAspectsoftheirPrograms120

Stronglydisagree JobStart/PITWallowedmeto supportmyfamilyorpaymybills whenImightnototherwisehave beenabletoa WithoutJobStart/PITW,Iwould likelyhavebeenunemployedb MyJobStart/PITWjobtaughtme newskillsc MyJobStart/PITWjobexposedme toanewtypeofworkd Imetcontactsthroughmy JobStart/PITWjobwhoImaybe abletouseinthefutureifIm lookingforanewjobor opportunitye
a

Somewhat disagree

Neitheragreenor Somewhatagree disagree

Stronglyagree PITW 75.0%

JobStart PITW JobStart 11.2% 2.5% 4.2%

PITW JobStart 2.5% 7.4%

PITW JobStart PITW JobStart 4.2% 21.4% 15.8% 55.8%

13.0% 12.1% 9.8% 13.7%

10.0% 5.0% 6.7% 6.7%

8.8% 5.6% 4.7% 5.7%

4.2% 5.0% 5.8% 5.9%

15.3% 9.8% 11.6% 12.3%

7.5% 6.7% 6.7% 10.9%

17.7% 19.2% 18.6% 20.8%

20.8% 15.8% 15.0% 21.8%

45.1% 53.3% 55.3% 47.6%

57.5% 67.5% 65.8% 54.6%

N=215JobStartparticipantsand120PITWparticipants.ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforSomewhat disagree,Neitheragreenordisagree,andSomewhatagreearenotstatisticallysignificantatthe95percentconfidencelevel.

N=215JobStartparticipantsand120PITWparticipants.ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforStrongly disagree,Somewhatdisagree,andSomewhatagreearenotstatisticallysignificantatthe95percentconfidencelevel. N=214JobStartparticipantsand120PITWparticipants. ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforSomewhat disagree,Neitheragreenordisagree,andSomewhatagreearenotstatisticallysignificantatthe95percentconfidencelevel.

N=215JobStartparticipantsand120PITWparticipants. NoneofthedifferencesbetweenproportionsforJobStartandPITWparticipantsare statisticallysignificantatthe95percentconfidencelevel.

N=212JobStartparticipantsand119PITWparticipants. NoneofthedifferencesbetweenproportionsforJobStartandPITWparticipantsare statisticallysignificantatthe95percentconfidencelevel.

Table27showshowJobStartandPITWemployerswhorespondedtoasurveyratedchangesin businessesperformanceasaresultofemployingparticipants.Inallareasofbusinessperformance,a higherproportionofJobStartrespondentsreportednochangeasaresultofemployingparticipants, whileahigherproportionofPITWrespondentsreportedthatperformancesomewhatincreasedor increased,althoughnotalldifferenceswerestatisticallysignificantatthe95percentconfidencelevel. Thisdifferencemayberelatedtothedifferentlengthsofthetwoprograms.PITWstartedplacing participantsinsubsidizedemploymentearlierthanJobStart,andPITWparticipantsworkedmorehours

120

AnalysisofJobStartParticipantSurveyresponsesandPITWparticipantsurveyresponses.AllJobStartparticipantsworkedatleast1hourina transitionaljob.

82

andweeksinsubsidizedemploymentonaveragethanJobStartparticipants.Byemployingparticipants longer,PITWemployersmayhavehadmoretimetousethemforactivitiesthatincreasedbusiness performance. Table27:ChangeinBusinessPerformanceasaResultofEmployingJobStartParticipantsandPut IllinoistoWorkParticipantsResidinginJobStartCCAs121

Decreased JobStart Productivity Qualityofwork Numberof customersor clientsservedc Customerorclient d satisfaction Workforce satisfactionwith workloade
a

Somewhatdecreased JobStart 0.0% 0.0% 2.8% PITW 2.8% 6.4% 0.9%

Nochange JobStart 44.3% 47.2% 41.7% PITW 21.7% 31.5% 30.9%

Somewhatincreased JobStart 25.7% 23.6% 22.2% PITW 40.6% 37.9% 38.2%

Increased JobStart 28.6% 27.8% 31.9% PITW 33.2% 22.8% 29.0%

PITW 1.8% 1.4% 0.9%

1.4%
b

1.4% 1.4%

1.4% 1.4%

1.4% 1.4%

1.4% 1.4%

2.8% 2.3%

45.8% 42.3%

37.5% 27.7%

23.6% 25.4%

35.6% 39.5%

27.8% 29.6%

22.7% 29.1%

N=70JobStartparticipantsand217PITWparticipants.ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforDecreased, Somewhatdecreased,andIncreasedarenotstatisticallysignificantatthe95percentconfidencelevel.

N=72JobStartparticipantsand219PITWparticipants.ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforDecreasedand Increasedarenotstatisticallysignificantatthe95percentconfidencelevel.

N=72JobStartparticipantsand217PITWparticipants.ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforDecreased, Somewhatdecreased,Nochange,andIncreasedarenotstatisticallysignificantatthe95percentconfidencelevel.

N=72JobStartparticipantsand216PITWparticipants.NoneofthedifferencesbetweenproportionsforJobStartandPITWparticipantsare statisticallysignificantatthe95percentconfidencelevel. N=71JobStartparticipantsand220PITWparticipants.ThedifferencesbetweenproportionsforJobStartandPITWparticipantsforDecreased, Somewhatdecreased,andIncreasedarenotstatisticallysignificantatthe95percentconfidencelevel.

Summary
JobStartandPITWparticipantswhorespondedto surveysabouttheprogramsdifferedmostnoticeablyon educationalattainment,withahigherproportionof JobStartparticipantsnothavingearnedahighschool diplomaorGEDandahigherproportionofPITW participantshavingsomecollege.Onaverage,JobStart participantsspentlesstimeinsubsidizedemployment thanPITWparticipants.Thismayhelpexplainthe higherlevelofsatisfactionexpressedbyPITW participantsandthehigherproportionofPITW employerswhoreportedthattheirbusiness performanceincreased. Thepositiveaspectofparticipatingin both[JobStartandPITW]wasthatitgave ahugearrayofpeopleachancetobein theworkingclass.Thesepeoplevaried fromsingleparents,exfelons,peoplewho havenothadanyworkexperienceaswell asthosewhohavebeendislocated workers.Itgavethesepeopleasecond chanceandforsomeafirstchance.
JobStartProgramStaffPerson

121

AnalysisofJobStartEmployerSurveyresponsesandPITWemployersurveyresponses.AllJobStartrespondentsemployedatleastone participantforatleast1hourinainatransitionaljob.

83

Successes,Challenges,andRecommendations
Withinits4monthsofoperation,JobStartplacedalargenumberof lowincomeindividualsintosubsidizedemployment.Most EmployerSurveyRespondentsreportedthattheprogramimproved businessperformanceandthatparticipantssoftskillsimproved. Additionally,JobStartmostlikelyaffectedotherbusinessesthrough aneconomicmultipliereffect.JobStartfellshortofitsgoalsfor transitionaljobplacementandplacedfewerparticipantsinto unsubsidizedemploymentthanhopedforbythetimetheprogram ended.Thisappearstohaveresultedfromthedemandingtimeline, thegeographicboundaries,contemporaneousoperationof JobStartandPITW,thetypesofemployersthatparticipatedinthe program,lackoffundingforjobplacementandretentionafter transitionaljobsended,andeconomicconditionsinChicagoand acrosstheUnitedStatesatthetimeJobStartended.Thesuccesses andchallengeswithJobStartmayhelptoinformthedesignand implementationoffutureTJprogramswithinandoutsideofan economicrecoverycontext.

Successes
Withinashortperiodoftime,JobStartrecruitedandtrainedalargenumberofparticipants, placedthemintotransitionaljobs,andhelpedthemaccesssupportiveservices.1,618 participantscompletedjobreadinesstraining,andgranteesplaced1,518(93.8percent)ofthese participantsintotransitionaljobs.ExperienceoperatingTJprogramsandjobreadinessand placementprogramsforTANFrecipientshelpedgranteesstartuptheirJobStartprogramswithin thetimelineimposedbythedeadlineforusingTANFEFfunding,Illinoislateapplicationfor TANFEFfunding,andrelativelylateexecutionofthecommunityservicesagreement(CSA) betweenIDHSandthe2016Fund. Theindividualsrecruited,trained,andplacedintotransitionaljobshadapronouncedneedfor earnedincome,andsurveyresultssuggestthatlargeproportionsofparticipantshadbarriers toemployment.Theaverageparticipantreportedhouseholdincomeof$760uponentering JobStart.Commonlyreportedbarrierstoemploymentincludedlackofoveralljobskillsand interpersonalskills,criminalrecords,andunmetneedsfortransportationandchildcare. Theaverageparticipantworkedtheoverwhelmingmajorityofweeksavailablegivenhisor herstartdate.Onaverage,eachadultprogramparticipantworked9.1weeksinatransitional job,or87.6percentofthe10.4weeksavailablegivenhisorherstartdate. AveragemonthlyincomeearnedthroughJobStartwassubstantialrelativetoaverage householdincomeuponenteringtheprogram.Averagemonthlyincomeearnedbyadult programparticipantswasmorethandoubletheiraveragehouseholdincomeuponentering JobStart,whileaveragemonthlyincomeearnedbyyouthprogramparticipantswas78.5percent oftheiraveragehouseholdincomeuponentry.

84

ThemajorityofEmployerSurveyrespondentsreportedthatemployingJobStartparticipants resultedinmoderatepositiveeffectsonbusinessperformance.Slightlymorethanhalfof respondentstotheEmployerSurveyreportedthatperformancesomewhatincreasedor increasedintheseareasasaresultofemployingJobStartparticipants.Thismaybebecause theirbusinesseswererelativelyfinanciallyhealthybeforetheprogrambegan,andbecausethe averageJobStartparticipantworkedonly8.4weeksforanemployer,arelativelyshortperiodof timetoaffectbusinessperformanceandfinancialhealth. Inadditiontoitsdirecteffectsonparticipantsandemployersintheprogram,JobStartmost likelyaffectedotherbusinessesandtheiremployeesthroughoutCookCountythroughan economicmultipliereffect.Assumingthatparticipantsspent70percentofincomeearned throughJobStartintheretailsectorofCookCounty,JobStartwageswereassociatedwitha$5.1 millionincreaseindemandforgoodsandservicesacrossallsectors,a$1.2millionincreasein householdearnings,andanincreaseinemploymentof44jobsacrossCookCounty. ParticipantandEmployerSurveyrespondentsreportedthatparticipantssoftskillsimproved fromthebeginningtotheendoftheirtransitionaljobs.Thepercentageofemployer respondentswhoratedparticipantsaspoor,verypoor,orfairinsixperformanceareasat thebeginningoftheprogramdecreasedattheendofthetransitionaljob,whilethepercentage whoratedparticipantsgoodorverygoodincreased.Themajorityofparticipant respondentsreportedthattheyweresomewhatmorelikelyormorelikelytoexercisecertain softskillsaftercompletingJobStart,andthatJobStartincreasedtheirattractivenessto employers,introducedthemtousefulcontacts,taughtthemnewskills,andexposedthemtoa newtypeofwork. ParticipantandEmployerSurveyrespondentsindicatedahighlevelofsatisfactionwith JobStart.Mostparticipantrespondents(91.7percent)andEmployerrespondents(85.1percent) reportedthattheywouldparticipateinJobStartorasimilarprogramifitwereofferedagain.

Challenges
JobStartprovidedparticipantswithmuchneededearningsandappearstohavebenefitedbusinesses directlyandindirectly.However,itdidnotmeetitsgoalfornumberofparticipantsplacedinto transitionaljobs.Additionally,programrecordsfromimmediatelyafterJobStartendedindicatethatit didnotmeetitsgoalfornumberofadultparticipantsplacedintounsubsidizedemployment,education, ortrainingbythetimetheprogramended. JobStartplaced1,518participantsintotransitionaljobs.Thisrepresents69.0percentofthe planned2,200transitionaljobplacementsand70.5percentofthe2,154finaltransitional employmentslotsallocatedbythe2016Fund. Programrecordsindicatethat91.8percentofyouthenteredunsubsidizedemployment, education,ortraining.However,JobStartdidnotmeetits60percentplacementgoalforadults bythetimetheprogramended:itplacedonly21.8percentofadultsintounsubsidized employment,education,training,orsomecombinationofthoseactivities.

SevenprimaryfactorsappeartoexplainwhyJobStartdidnotmeetallofitsgoals: 1. TheTANFEFrequirementthatstatesmakeallreimbursableexpendituresbySeptember30, combinedwiththelatetimingofIllinoisapplicationforTANFEFfundingandlateexecutionof

85

theCSAbetweenIDHSandthe2016Fund,leftgranteeswithlessthanamonthtosetuptheir JobStartprogramsinordertoprovideparticipantswiththemaximum16weeksofsubsidized employmentpossibleunderJobStart.Thistimelineaffectedmultipleaspectsoftheprogram. Severalprojectdirectorssaidthatthattheiragencieswouldhaveexpandedrecruitingeffortsif moretimehadbeenavailable.Mostprojectdirectorssaidthatadditionaltimewouldhave improvedtheirassessmentprocedures,enablingthemtoacquiremoreinformationabout participantstoguideprovisionofcasemanagementandsupportserviceslaterintheprogram. Mostimportantly,perhaps,thetimelineimpededtheachievementofplacementgoalsby limitingthedurationoftransitionaljobsformanyparticipants.Whilenoconsensusexistsonthe optimaltransitionaljobduration,mostTJprogramsoffer3to9monthsinatransitionaljob.For example,inastudyofsixTJprogramsforTANFrecipientsandotherlowincomeindividuals, participantswhofoundunsubsidizedjobsaveragedbetween3.9and8.2monthsinthe programs.EarlierTJprogramsthatyieldedsustained positiveimpactsonemploymentandearningsamong welfarerecipientsincludedayearormoreof Themostdifficulttimewas subsidizedemployment.122Bycontrast,JobStartadult gettingpastthelengthoftime programparticipantsspentonly2.3monthson thatIhadtotrainthemforthe averageintransitionaljobs.Forparticipantswithpoor jobbeforetheprogramexpired. interpersonalskillsandunderstandingofworkplace JobStartEmployer expectations,atransitionaljobmustaffordsufficient timetolearnandpracticesoftskills,makemistakes, receiveguidancefromcasemanagers,workplacesupervisors,andpeers,andimprovetheir performance.ThehardenddateforJobStartmayhaveprecludedmostparticipantsfromhaving sufficienttimetotakethesesteps.Asoneprojectdirectorexplained: [A]TJprogramisabouttrials[and]errorsandmultiplechances.An individualisinalearningprocesswhichsometimesmustallowforthem tomakemistakes,learnfromthemandmoveforward.[JobStart]forall intentsandpurposesdidnotallowforsuchlearningtohappendueto therushednatureoftheprogram. Consistentwiththisexplanation,46.1percentofEmployerSurveyrespondentsreportedthat participantswhowerenotreadytohirewouldbereadywithmoretimeinthetransitionaljob, including34.6percentwhosaidthattheseparticipantswouldbereadywith2ormoremonths inthetransitionaljob. 2. TherequirementthatgranteesrecruitparticipantsexclusivelyfromthedesignatedCCAs almostcertainlyimpededtheirabilitytomeetJobStartstransitionalplacementgoal.Among GranteeStaffSurveyrespondents,37.0percentreporteddifficultyrecruitingfromthe designatedCCAs.Severalprojectdirectorsreportedthattheiragenciesreceivedmany applicationsforJobStartfromoutsidethedesignatedCCAsandthattheycouldhaveenrolled manymoreparticipantsintheabsenceoftheresidencyrequirement.Inadditiontoimpeding theabilityofgranteestorecruitparticipantsforplacementintosubsidizedjobs,theresidency
122

Kirby,G.,Hill,H.,Pavetti,L.,Jacobsen,J.,Derr,M.,&Winston,P.(2002,April).Transitionaljobs:Steppingstonestounsubsidized employment.Princeton,NJ:MathematicaPolicyResearch,Inc.NationalTransitionalJobsNetwork.(2010,January).(AppendixC).TheNational SupportedWorkDemonstration(19751980)included12to18monthsofhighlystructuredpaidworkexperience,andtheAFDCHomemaker HealthAidDemonstration(19831986)includedupto1yearofsubsidizedemployment.Bloom,D.(2010,February).Transitionaljobs: Background,programmodels,andevaluationevidence.NewYork:MDRC.(Table1).

86

requirementaddedtothealreadysubstantialburdenofdeterminingparticipanteligibilityand createdconfusionamongneighborhoodresidentsandotherstakeholdersaboutwhocould participateinJobStart.Useof2016FundresourceswaslimitedtotheJobStartCCAswithout priorapprovalfromcontributors,andthe2016Fundstaffreportedthattheymade accommodationsinthetwocasesinwhichgranteesreporteddifficultiesrecruitingfromthe JobStartCCAs. 3. ContemporaneousoperationofJobStartandPITWappearstohaveimpededplacementof JobStartparticipants.First,participantsandemployersatsomegranteesthatoperatedboth programsappeartohaveconfusedJobStartandPITW.Thismayhavecausedsomeparticipants andemployerstobelievethatJobStart,likePITW,wouldbeextendedafterSeptember30,2010, andconsequently,discouragedparticipantsfromsearchingforemploymentandemployers fromhiringJobStartparticipantsintounsubsidizedpositions.Second,severalprojectdirectors reportedthatPITWcreatedcompetitionforemployers,absorbingworksitesatwhichJobStart participantsmighthavebeenplaced. 4. JobStartreliedheavilyonrelativelysmallforprofitandnonprofitemployerstoprovide transitionaljobs.Whilethesetypesofemployerstendedtoaccommodateparticipantswith barrierstoemploymentandofferparticipantsindividualattentionmorereadilythanlargefor profitemployers,theywerelesslikelytohire participantspermanentlyaftersubsidized Ithinkit'saverybeneficial employmentasaresultoftheirrelativelysmall programtotheemployerandthe budgetsandfewjobslots.Amongrespondentstothe worker.Itwasveryhardtosee EmployerSurvey,60.0percentreportedthatthey [theparticipants]go.Ijustwish werenotfinanciallyabletoretainalltheJobStart wehadthecapacitytokeeptwo participantstheywantedtohire.Severalproject ofthethreeweweregiven. directorsindicatedthatrelativelysmallnonprofit JobStartEmployer employerstheyusedforJobStartlackedresourcesto hireparticipants.Severalprojectdirectorsalsosaid theiragenciestriedtorecruitlargeforprofitemployers,butthattheywereunabletoobtain approvalthroughthecompaniesbureaucraciesintime. 5. Absenceoffundingforjobplacementandretentionafterthetransitionaljobsendedappears tohaveimpededunsubsidizedplacement.SomeTJprogramscontinuetohelpparticipantsfind unsubsidizedjobsaftertheirtransitionaljobsend;however,spendingonplacementand retentionserviceswouldnotbereimbursedbytheTANFEFafterSeptember30,andJobStart didnotincludefundingfortheseservices.TheJobStartprogramdesigndirectedgranteesto beginconnectingparticipantswithservicesbeforethetransitionaljobbutcouldnotrequire themtoprovideservicesafterSeptember30. 6. EconomicconditionsmayhaveimpededplacementofJobStartparticipantsintounsubsidized jobs.UnemploymentratesforChicagoandforAfricanAmericanswithahighschooldiplomaor lesseducationacrosstheUnitedStateswereathistorichighsin2010.Thesefactssuggestthat populationswiththepersonalcharacteristicsofJobStartparticipantswerestillfacing pronounceddifficultyfindingemployment. 7. Finally,placementdatafromprogramrecordslikelyunderrepresentthepercentageofadult participantswhofoundemploymentafterJobStartended.Placementratesreportedby

87

employmentprogramsgenerallyunderrepresentactualplacementrates.Asnotedpreviously, theserecordslikelyunderrepresentthenumberofparticipantswhofoundemploymentfortwo reasons.First,someparticipantsmayhavefoundunsubsidizedemploymentbeforeJobStart endedbutmaynothavenotifiedtheirJobStartagency.Theplacementstatusof18.3percentof adultparticipantswasunknownatthetimeJobStartendedandsomeoftheseparticipantsmay havefoundunsubsidizedjobs.Second,someparticipantsmayhavefoundunsubsidized employmentsometimeaftertheprogramended.

TransitionalJobsinaRecoveryContext
ConsideringthesuccessesandchallengesofJobStart,sixoveralllessonsaboutthepossibilitiesand limitationsofsubsidizedemploymentandTJprogramsemergeabouttheimplementationandpotential valueoftransitionaljobsprograms: ThesubstantialamountofincomeearnedbyJobStartparticipantsandtheexpectedeconomic activityassociatedwiththatincomesuggeststhatsubsidizedemploymentmaybeapromising responsetoeconomicdownturns.Theaverageadultparticipantreportedhouseholdincomeof $609permonth(includingpublicbenefits)uponenteringtheprogram;onaverage,heorshe earned$1,361permonthduringtheprogram,overtwicehisorheraveragehouseholdincome.The majorityofParticipantSurveyrespondentsindicatedthatthisincomewasimportantandthatthey wouldnothaveearnedincomeintheabsenceofJobStart:77.2percentsomewhatagreedor stronglyagreedthatJobStartallowedthemtosupporttheirfamiliesorpaytheirbillswhenthey mightnototherwisehavebeenabletodoso,and62.8percentsomewhatagreedorstronglyagreed thattheywouldhavebeenunemployedwithoutJobStart.Assumingthatparticipantsspent70 percentofincomeearnedthroughJobStartintheretailsectorofCookCounty,JobStartparticipant wagesassociatedwitha$5.1millionincreaseindemandforgoodsandservices,a$1.2million increaseinhouseholdearnings,andanincreaseinemploymentof44jobsacrossCookCounty. ThenumberofyouthservedbyJobStartandthepercentageofyouthwhoreturnedtoschoolafter theprogramendedsuggestthatsubsidizedemploymentmaybeaneffectivemeansofengaging disadvantagedyouth.Summeremploymentmayfulfillcriticalneedsforyouthinlowincome neighborhoods:itmayfostersoftskillsandearlyattachmenttothelabormarket,providesafespace fromgangactivityandviolence,andhelpyouthsuccessfullytransitionbacktoschool.Therecession beginningin2007wasassociatedwithadramaticdeclineintheyouthlabormarket.Teenage employmentdeclinedfrom45percentinsummer2000to25percentinsummer2011.123Despite thisweaklabormarket,JobStartengaged488youthwhoworkedintransitionaljobs.Theaverage youthparticipantworked184hoursfor6.9weeks,or27hoursperweek.Aftertheprogramended, 91.8percentofyouthwhoworkedinatransitionaljobreturnedtoschool,enteredanotherjobs program,orenteredunsubsidizedemployment. Subsidizedemploymentmaybeaneffectivemeansofengaginglowincome,noncustodialmales. Pooreducationalattainment,unstableworkhistory,andincarcerationlimittheabilityofmany noncustodialfatherstopaychildsupport,andnoncustodialfathersareoftenoutsideofsocial serviceandworkforcedevelopmentsystemsthatmighthelpthemtoovercomethesebarriers.124
123 124

Austin,A.(2011July).Getteensbacktowork:whythefederalgovernmentmustinvestnowinteenjobs.RetrievedAugust23,2011from http://www.spotlightonpoverty.org/ExclusiveCommentary.aspx?id=0418662d948b40478e1c5f093e5709b9 Martinson,K.,Trutko,J.,&Strong,D.(2000December).Servingnoncustodialparents:Adescriptivestudyofwelfaretoworkprograms. Washington,DC:UrbanInstitute.(p.35)

88

Evenpriorprogramsemphasizingservicestohelpnoncustodialparentsgainemploymenthave founditverydifficulttorecruitparticipantsfromthispopulation.125NearlyonethirdofJobStart adultprogramparticipantsweremaleandnearlyhalfofthese(48.2percent)reportedthatthey werenoncustodialparents.Thissuggeststhatsubsidizedemploymentmaybeapromisingavenue forengaginglowincomeandnoncustodialmaleparents. Initially,thenewnessofmanystakeholderstousingTANFfundingforsubsidizedemployment mayhaveimpededuseofTANFEFfundingforJobStart.Atthefederal,state,andlocallevels, importantJobStartstakeholderswerenewtotheuseofTANFfundingforsubsidizedemployment. Atthefederallevel,newleadershipatHHSmayhavecontributedtodelaysinissuingguidanceto thestatesontheuseofTANFEFfunding.Atthestatelevel,theIDHSadministrationthatappliedfor TANFEFfundingwasappointedinOctober2009,lessthanayearbeforethedeadlineforspending TANFEFfunding.The2016Fundhadneverusedfederalfundingbeforeandwaschallengedbyits substantialreportingrequirements.Whilesubsidizedemploymenthadbeenanallowableuseof TANFfundingsince1996,thenewnessofstakeholdersateverylevelmayhavecontributedtoa situationinwhichmanyimportantstakeholderslackedinstitutionalmemoryabouttheuseofthis funding.InIllinois,thisdelayedthestatesapplicationforTANFEFfunding,leadingtoashort timeframebetweenapprovalofthestatesapplicationandthedeadlineforspendingthisfunding. InChicago,longstandingcooperationamongagroupofphilanthropicfunders,nonprofit organizations,andpublicagenciesfacilitatedimplementationofJobStartwithinashort timeframe.Despitetheshorttimeframe,thepreexistingrelationshipamongthefunders,nonprofit organizations,andpublicworkforcesystemenabledthesestakeholderstorapidlyplanand administerJobStart.TherobustnetworkofChicagoareaworkforceproviderswithexperience operatingsubsidizedandtransitionalemploymentprogramsofferedreadytousecapacityto implementtheprogram.Importantly,thefiscalenvironmentpreventedtheStateofIllinoisfrom planningandadministeringalargesubsidizedemploymentprogramdirectly.Inthisenvironment, hiringthepersonnelneededtoplanandadministerPITWandJobStartwouldhaveprovenfiscally challengingandpoliticallyinfeasibleforthestate.Theexistenceofnongovernmentalstakeholders withpreexistingrelationshipsandworkforceexperienceenabledIllinoistoimplementJobStart withoutaddingtothestateadministrativebureaucracy. Giveninstitutionalleadership,experiencedproviders,andadequatefunding,abeneficialTJ programcanbeimplementedwithinashorttimeframe.Within7monthsofreceivingapprovalfor TANFEFfunding,agroupofphilanthropicfunders,nonprofitorganizations,andpublicagencies designedandimplementedaprogramthatplaced1,518participantsintotransitionaljobs.The averageJobStartparticipantworked80.3percentofweeksavailableintheprogramandearneda substantialamountofincomerelativetohisorherhouseholdincomeonprogramentry.Thesedata suggestthatstateandlocalgovernmentswithcapableleadershiporganizationsandworkforce providerscanrapidlyimplementbeneficialTJprograms.

Recommendations
ThefollowingrecommendationsforfuturesubsidizedemploymentandTJprogramsreflectaspectsof theJobStartprogramthatgranteesfoundeffective,aspectsoftheprogramthatgranteesfound challenging,andpracticesthatmighthavehelpedthe2016Fundanditsgranteesimplementand
125

Trutko,Johnetal.(1999July).EarlyimplementationoftheWelfaretoWorkgrantsprogram.Washington,DC:TheUrbanInstitute.(p.20).

89

administerJobStartmoresuccessfully.SomerecommendationsapplytosubsidizedemploymentandTJ programsinanycontext;otherspertainspecificallytoaneconomicrecoverycontext,inwhichtimeto planandimplementprogramsmaybeinshortsupply.Governmentagenciesthatfundsubsidized employmentandTJprograms,programadministrators,andprogramprovidersshouldconsider implementingtheserecommendations.

Forgovernmentagencies:
Issueandcommunicateaboutrulesandguidelinesforuseofprogramfundinginadvanceof theprogramstartdate.Subsidizedemploymentprogramsinvolvesubstantialspendingon participantwages;inthecaseofTJprograms,theyalsoinvolvespendingonjobreadiness training,supportiveservices,andjobplacementandretention.Usingfederalfundingtocover thesecosts,the2016Fundanditsgranteeshadtotrackparticipanteligibilityandspendingin detailinordertoavoidliabilitytothefederalgovernmentforimproperspending.Tofacilitate detailedandlaborintensivetrackinginvolvedinafederallyfundedsubsidizedemployment program,governmentfundersshouldissuerulesandguidelinesforusingprogramfundswellin advanceoftheprogramstartdate.Thiswouldenableprogramstothoroughlycommunicate rulesfortrackingandspendingfundingtostaffandtrainstaffontrackingproceduresbeforethe programbegins.InthecaseofJobStart,relativelylateexecutionoftheCSAandcontinued clarificationfromIDHSaboutimplementingtheCSAafteritwasexecutedmadeadministration difficultforthe2016Fundanditsgrantees. Provideflexibilityforstatestodesignandimplementprogramsthatmeettheirneeds.The creationofJobStartandPITWdemonstrateshowtheTANFEFprovidedstateswithflexibilityto meettheirneedsusingenhancedreimbursementforincreasedTANFspending:theTANFEF enabledIllinoistodesignsubsidizedemploymentprogramstailoredtodifferentsegmentsofthe lowincomepopulationreadytoworkIllinoisansinthecaseofPITWandChicagoanswith barrierstoemploymentinthecaseofJobStartandfundthecombinationofsubsidizedwages andsupportiveservicescalledforineachprogram.SeveralJobStartprojectdirectorsvaluedthe flexibilityofTANFEFfundingprovidedthroughJobStartandreportedthatitallowedthemto fundawidevarietyofsupportiveservices.

Forprogramadministrators:
Ensurethatprogramdesignandresourceallocationreflectintendedgoals.SomeTJprograms continuetohelpparticipantsfindunsubsidizedjobsaftertheirtransitionaljobsend. Additionally,researchsuggestsofferingretentionservicestoprogramparticipantswhofindan unsubsidizedjobimprovestheiremploymentoutcomes.WhileJobStartwasintendedtoplace participantsintounsubsidizedemploymentandhelpthemsucceedinthelabormarket,itdid notincludefundingforjobsearchassistanceandretentionservicesafterSeptember30,2010. Theprogramdesignandavailableresourcesdidnotentirelyreflectitsgoals. Assessthecapacityofprospectiveproviderstoimplementtheprogram.MostJobStart granteeswereoperatingotherARRAfundedemploymentprogramscontemporaneouslywith JobStart:sevengranteeswereoperatingPITWprogramsandtwooftheseagencieswerealso operatingJobStartandPITWprogramsfortheChicagoHousingAuthority.Additionally,some granteeswereoperatingARRAfundedemploymentprogramsforyouth.Insomecases,the demandsthatmultipleprogramsplacedongranteesmayhaveaffectedtheirabilitytooperate

90

JobStartprograms.Tothoroughlyassessthecapacityofprospectiveproviderstoimplementa subsidizedemploymentorTJprogram,programadministratorsshouldrequirethemtolistother subsidizedemploymentandTJprogramstheywillbeoperatingintheirapplications,andto describeanyinteractionbetweentheprospectiveprogramandtheotherprograms. Additionally,programsshouldincludeastaffingplanasarequirementthatshowsthenumberof staffwhowillbeworkingontheprogram,thenumberofhourseachstaffpersonwilldevoteto theprogram,andwhetherthestaffwillbeneworarealreadyinplace. Includeprovisionsforthirdpartyprocessevaluation.TheJobStartimplementationexperience suggeststhatobservationandinputfromapartyoutsidetheimplementingorganizationwould havebeenbeneficial.Feedbackfromathirdpartymighthavehelpedimprovesomeaspectsof theprogramwhileitwasoperating.Thirdpartyprocessevaluationmayproveespecially valuableinaneconomicrecoverycontext,inwhichprogramadministratorsandprovidershave littletimetoexpendprogramfunding,learnfrommistakes,andmakemidcoursecorrections. Establishclearanddetailedrequirementsfordatareportingbeforetheprogrambegins. JobStartrequiredgranteestorecordbasicoutcomemeasures,suchasnumberofparticipants whocompletedjobreadinesstraining,numberofparticipantsplacedintransitionaljobs, numberofparticipantsplacedintounsubsidizedemployment,andreasonsparticipantsexited theprogram.However,theprogramrulesdidnotprovidestandarddefinitionsforalldata elementsrequired,resultingindifferentprovidersrecordingsimilaroutcomesdifferently. Additionallygranteestaffhadtoretroactivelyrecordsomedatathatwouldtypicallybe recordedatenrollment.FuturesubsidizedemploymentandTJprogramsshouldestablishclear anddetailedrequirementsfordatareportingwellbeforetheybeginenrollingparticipants. Programsmightalsoincentivizecompleteandaccuratedatareporting. Employauserfriendlywebbaseddatabasetorecordandtransmitparticipantoutcomeand paymentrelateddata.TheexperienceofJobStartgranteeswithvoucheringforpayroll expensesandplacementfeesshowsthatthetasksassociatedwithrecordingparticipant progressthroughaTJprogramandconveyingthisinformationtoafunderforreimbursement canbecomplicatedandfrustrating.Auserfriendly,secure,webbaseddatabasethatallows programstafftoenterparticipantbenchmarksandpayrolldataandallowsaprogramfunderto accessthisinformationelectronicallywouldreduceprogramstafftimespentondatareporting andvouchering,allowingstafftoconcentrateonotheraspectsoftheprogram.

Forprogramdesign:
TheserecommendationsreflectaspectsoftheJobStartprogramorotherpracticesthatgrantees describedaseffective,andpracticesthatgranteesreportedwouldhavehelpedthemto overcomechallengestheyexperiencedduringJobStart.Theyshouldbeconsideredforinclusion infuturesubsidizedemploymentandTJprogramsand,totheextentthatprogramdesignand datacollectionresourcesallow,evaluatedfortheirimpactsonparticipantearningsand employment. EligibilityDetermination Streamlineeligibilitydetermination:Somegranteesfounditdifficulttomeetupfront requirementsforeligibilitydocumentation,especiallyfornoncustodialparentsand

91

youth.SubsidizedemploymentandTJprogramsshouldreducethenumberof documentsnecessarytodemonstrateeligibilityandimplementsystemstoease documentsharing.Programsmayuseparticipationinotherprogramsforlowincome people,suchasSNAPorMedicaid,toestablisheligibility;allowapplicantstoselfattest tocertaineligibilitycriteriaandprovidedocumentationaftertheyentertheprogram; anduseelectronicsystemstotransmitdocumentswhennecessary. Assessment Includeassessmentofparticipantaptitudesandcareerinterests:Assessmentof participantaptitudesandcareerinterestsmayhelpprogramstaffprovidejobcoaching moreeffectively,improvetransitionaljobmatches,andengageparticipantsinplanning foracareeraftertheirtransitionaljobsend. JobReadinessTraining Provideongoingjobreadinesstrainingduringthetransitionaljob:Followinginitialjob readinesstrainingprecedingthetransitionaljob,scheduleonefullorpartialdayofjob readinesstrainingeachweek.Trainingdayscouldincludereinforcementofsoftskills andjobsearchskillstrainingfromtheinitialtrainingperiod,presentationsbyemployer representativesandprogramgraduates,andopportunitiesforparticipantstoask questionsanddiscusschallengesatwork. Providepaymentorotherincentivesforjobreadinesstraining:Effectivejobreadiness trainingrequiresparticipantstodevotesubstantialtimeandefforttolearningto preparefortransitionaljobs.Paymentforjobreadinesstrainingmayincentivize attendance,reduceretentionproblemsduringjobreadinesstraining,andreinforcethe associationbetweenworkandwageearning. Featureemployerrepresentativesandprogramgraduatesinjobreadinesstraining: Invitesupervisorsandmanagersfromlocalemployersandformerprogramparticipants whohavesuccessfullytransitionedintounsubsidizedemploymenttotalkwithcurrent participantsaboutthesoftskillsandattitudestowardworkneededtosucceedina regularjob.Employerrepresentativesandprogramgraduatesmayoffercompelling narrativesneededtocounterinappropriateattitudesandunrealisticexpectationsabout work. SubsidizedEmployment EnsurethatemployersunderstandtheTJprogrammodel:Selectemployerswhoview theTJprogramasasourceofpotentialpermanentemployeesandasameanstotrain theseemployeesatnocost.Provideparticipatingemployerswithguidanceon supportingparticipantswhilemaintaininganauthenticworkenvironment. Includeanemployermemorandumofagreement(MOA)thatdefinesemployerand programresponsibilitiesandestablishesabeneficialframeworkforemployers.An MOAthatsetsforthemployersresponsibilitytoprovideparticipantswithmeaningful work,supervision,andopportunitiesforskilldevelopmentcanhelpensurethat employersunderstandtheTJprogrammodel.TheMOAcanalsomaketheprogram

92

moreattractivetoemployersbydescribingtheprogramsresponsibilitytoprovidejob readinesstraining,jobcoaching,andsupportiveservicesandtohelpresolveworksite problems. Useavarietyofemployerstoaccommodateparticipants:Adiversesetofemployers mayhelpTJprogramsaccommodateparticipantswithdifferentworkreadiness,career interestsandskilllevels.Largeforprofitemployersmayofferthebestfitfor participantswithmoreadvancedhardandsoftskills,whilesmallforprofitornonprofit employersmayoffertheindividualizedattentionandsupportneededbymoreseverely disadvantagedparticipants.AsetofemployersfromdifferentindustriesmayhelpaTJ programmaintainparticipantinterestandmotivationbyenablingtheprogramtomatch participantswithjobsthatfittheirvocationalinterests.Programsthathopetouselarge forprofitemployersshouldbudgetextratimeforrecruitingtheseemployersand navigatingtheirbureaucracies. Selectemployerswhoareopentopermanentlyhiringparticipantswithacriminal record:TJprogramsmayhelpsellsuchparticipantstoemployerswhoarecautious abouthiringexoffendersbyemphasizingsoftskillsattained,successfulTJwork experience,andothersupportsthattheyprovide.Theymayalsohelpsellexoffenders byhelpingemployersaccesstheU.SDepartmentofLaborBondsforJobsprogram, whichinsuresagainstcertaindamagescausedbyexoffenders,andtheWork OpportunityTaxCredit,whichprovidesataxcreditforhiringanexoffenderwithinone yearafterconvictionorreleasefromprison. Provideinstructionandincentivesthathelpemployerssupportparticipants:Active supportfromemployersmayhelpparticipantsacquiresoftskillsandappropriate attitudestowardworkthroughatransitionaljob.Importantformsofemployersupport includeinformaltrainingorguidancefromfrontlinesupervisors,assigningamore experiencedcoworkertoserveasapeermentororcoach,ormodifyingregular disciplinaryprocedurestoenableparticipantswithlittleworkexperiencetorecoverand learnfrommistakes.126Whileimportantforparticipants,thesesupportsmayabsorb employerstafftimeandresourcesand,inthecaseofmodifyingdisciplinaryprocedures, elicitanegativereactionfromregularemployees.Technicalandfinancialassistance fromTJprogramsmaybenecessarytohelpemployersprovidethesesupports. AcademicorHardSkillsTraining Usesubsidizedemploymenttoincentivizeacquisitionofeducationalcredentialsand crosscuttinghardskills:ThesubsidizedemploymentcomponentofaTJprogramcould beusedasanincentiveforparticipantstocompletecourseworkforahighschool degreeorGEDortoengageincrosscuttingorvocationalskillstraining.Forparticipants wholackbasicquantitative,computer,andclericalandadministrativeskills,trainingin theseareascouldimprovetheirattractivenesstoemployersandhelpthemfind unsubsidizedemployment.Earningameaningfulacademiccredentialormarketable hardskillwouldlikelyrequiresubstantialtimeoutsidethetransitionaljobandwould
126

Warland,C.(2011).Ensuringthatthetransitionaljobisadevelopmentalexperience.Chicago:NationalTransitionalJobsNetwork.(p.46).

93

requireparticipantsandcasemanagerstobalancethetrainingcomponentofthe programwiththetransitionaljobandongoingjobreadinesstraining. CaseManagement Providegroupsessions:Groupsessionsmayofferparticipantsanimportantsourceof support,encouragement,andaccountabilityforachievingtheiremployabilitygoalsand helpprogramstaffobtaininformationaboutparticipantsthattheywouldnotbeableto obtainfromoneononesessions. SupportiveServices Provideparticipantswithtransportationassistance,helparrangingchildcare,and mobilephoneservice:TheChicagoTransitAuthoritypassesandchildcarereferrals throughIllinoisActionforChildrenappeartohaveenabledparticipantswithmost JobStartgranteestoovercomeunmetneedsfortransportationandchildcare.FutureTJ programsshouldcontinuetoprovidetheseorsimilarsupportiveservices,andshould provideorhelpparticipantswholackconsistentmobilephoneserviceobtainit. Consistentphoneservicemayhelpcasemanagersmaintaincommunicationwith participantsandmonitortheirprogress. JobPlacementandRetention Provideandfundjobplacementandretentionservices:Extendingjobplacementand supportiveservicesforadefinedperiodaftertransitionaljobsendmayhelpformer participantsstillsearchingforanunsubsidizedjobfindone,andhelpensurethatthose whofoundanunsubsidizedjobretainitpermanently.Researchsuggeststhatthe durationandintensityofretentionservicesispositivelyrelatedtoemployment outcomes.127

127

Clymer,C.,Roder,A.,&Roberts,B.(2005September).Promotingopportunity:FindingsfromtheStateWorkforcePolicyInitiativeon employmentretentionandadvancement.Philadelphia:Public/PrivateVentures.(p.21).

94

NextStepsfortheEvaluation
Thisreportreliedonprogramrecords,surveys,andinterviewstoinvestigateJobStartimplementation andjobplacement,employability,andeconomicstimulusoutcomes.Whilethesesourcesprovidea generalpictureofoverallprogramoutcomes,theyrepresentrelativelyincompletesourcesforassessing employmentoutcomesandprovidenodataontheemploymentandearningsofparticipantsafter JobStartended. Theimpactofaprogramisthedifferencebetweentheaverageoutcomeforindividualswho participatedintheprogramandtheestimatedaverageoutcomeforthesameindividualsiftheyhadnot participatedintheprogram.Forexample,ifaverageemploymentamongparticipantswas10percent beforeaprogramand50percentafteraprogram,theoutcomeoftheprogramwouldbea40percent increaseinemployment;ifevaluatorsestimatedthatemploymentwouldhaveincreasedfrom10 percentto20intheabsenceoftheprogram,thentheimpactoftheprogramwouldbea30percent increaseinemployment(50percentminus30percent).JobStartwasintendedtoplaceparticipantsinto unsubsidizedemploymentandmayhaveincreasedearningsandreducedreceiptofmeanstestedpublic benefitsasaresult.Changesintheseparticipantcharacteristicsrepresentimportantprogramoutcomes, andtheSocialIMPACTResearchCenterhopestoestimateJobStartsimpactintheseareas. TheSocialIMPACTResearchCenterplanstouserecordsfromIllinoisUnemploymentInsurancesystem andotherpublicprogramstoinvestigatetheemploymentandearningsoutcomesofparticipants,andto estimatetheimpactofJobStartontheiremployment,earnings,andpublicbenefitsreceipt.Additionally, IMPACTwillusetheserecordstocompareoutcomesandimpactsofJobStarttothoseofPITW. ArequesthasbeensubmittedfordataontheemploymentandearningsofJobStartandPITW participantsfromtheIllinoisDepartmentofCommerceandEconomicOpportunity(DCEO),anddataon thereceiptofTANF,SNAP,medicalassistance,andLIHEAPbenefitsfromtheIllinoisDepartmentof HumanServices,theIllinoisDepartmentofHealthcareandFamilyServices,andDCEO.Toobtaina sufficientbaselineofparticipantcharacteristicsbeforeJobStartandtoestimatechangesinprogram impactsoverthetwoyearsafterJobStartended,therequestcovereddatafromthebeginningof2006 totheendof2012.TheSocialIMPACTResearchCenterplanstousethesedatatoidentifythe associationbetweenoutcomesandparticipationinJobStartorPITWandassignimpactson employment,earnings,andpublicbenefitsreceipttoeachprogram.Thiswillallowforamorerigorous investigationofprogramoutcomesthanthedatausedinthisreport.

95

AppendixA
EvaluationMethodology
Fourprimarysourceswereusedinthisevaluationreporttoinvestigatetheimplementationand outcomesofChicagoNeighborhoodJobStart:programdocumentsdescribingthedesignandfundingof JobStart;programrecords,includingparticipanttrackinglogs,eligibilitydocuments,andwageand placementfeevouchers;surveysofparticipants,employers,granteeprojectdirectors,andgranteestaff; andinterviewswithprojectdirectorsandrepresentativesofthekeyorganizationsthatplanned, implemented,andfundedJobStart.Toestimateeconomicactivityassociatedwithspendingofearned byJobStartparticipants,theevaluationusedwagespaidtoJobStartparticipantdrawnfromprogram recordsandeconomicmultipliersfromtheU.S.DepartmentofCommerce,BureauofEconomicAnalysis.

ProgramDocuments
TounderstandtheJobStartprogramdesign,twoprogramdocumentswerereviewed:thecommunity servicesagreement(CSA)betweentheIDHSandthe2016Fundthatsetforththeconditionsunder whichthe2016wouldreceiveTANFEFfundingforJobStart,andtheJobStartProceduralManual developedbythe2016Fund.TheCSAestablishedtheessentialservicesthatJobStartgranteeswere requiredtoprovideandenabledthe2016Fundtocontractwithgranteestorecruitparticipantsand employersandprovideservices.TheProceduralManualdescribedtherequiredservicesingreater detail.TheCSAandtheJobStartProceduralManualwereincorporatedintograntagreementsbetween the2016Fundandeachgrantee.TheexplanationoftheJobStartprogramdesigninthisreportrelies primarilyonthesedocuments.

ProgramRecords
Fourtypesofprogramrecordswereusedfortheevaluation.Datafromtheserecordswereusedto investigatethepersonalcharacteristicsofJobStartparticipantsandtodeterminewages,hours,and weeksworkedintransitionaljobs.

ParticipantTrackingLog
Granteeswererequiredtorecordinformationabouteachparticipantspersonalcharacteristicsand achievementofprogrambenchmarksonaparticipanttrackinglog,anExcelspreadsheetdeveloped bythe2016Fund.128Thisinformationincludedresidentialaddress,ChicagoCommunityAreaof residence,gender,age,race,ethnicity,transitionaljobemployer,worksiteaddress,andpost programstatus(i.e.,unsubsidizedemployment,educationortraining,unsubsidizedemployment andeducationortraining,anotherjobsprogram,unemployed,orunknown).Fromthe2016Fund, IMPACTobtainedtrackinglogssubmittedbyeachgranteefortheentireprogramperiod.Tracking logdatawereavailablefor1,608participants,althoughnotalldataelementswereavailablefor eachparticipant.Thesedatawereusedtoinvestigatethepersonalcharacteristicsandtomapthe residentialaddressesofparticipants,tocountthenumberoftransitionaljobemployers,andto describeplacementoutcomesfollowingthetransitionaljob.
128

2016FundforChicagoNeighborhoods(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.25).

96


Granteeswerealsorequiredtorecordwhethereachparticipantcompletedthetransitionaljob(i.e., workeduntilSeptember30,2010),withdrewfromthetransitionaljob,orwasterminatedbythe grantee,andtoindicatethereasonforprogramexitiftheparticipantwithdreworwasterminated. However,IMPACTfoundthatreasonsforprogramexitwerenotrecordedconsistentlyacross grantees.Consequently,IMPACTdidnotreportonthepercentageofparticipantswhocompleted, withdrewfrom,orwereterminatedfromthetransitionaljobasrecordedonthetrackinglog, insteadusingwagevoucherdatatocompareaverageweeksinthetransitionaljobtoaverageweeks availablegivenparticipantstartdatestogaugehowsuccessfullyparticipantsretainedtheir transitionaljobs.

EligibilityChecklist
Foreachparticipant,granteeswererequiredtocompleteaneligibilitychecklistshowinginformation neededtodetermineeachparticipantseligibilityforJobStart(e.g.,identity,householdcomposition, householdincome,eligibilitytoworkintheUnitedStates).129Thecompletedchecklistandcopiesof documentsneededtoverifyinformationshownonthechecklist(e.g.,driverslicense,public benefitsrecords)weresubmittedtothe2016Fund,reviewedby2016Fundstafftoverifythe participantseligibility,andstoredinthe2016Fundsparticipantfiles.IMPACTreviewedalleligibility checklistsavailableintheparticipantfilesandrecordedhouseholdcomposition,householdincome, andwhethertherewasanadditionalearnerinthehousehold.Datawereavailablefor1,596 participants,althoughnotalldataelementswereavailableforallparticipants.Thesedatawereused toinvestigatethepersonalcharacteristicsofparticipants.

WageVouchers
Granteeswererequiredtorecordhoursworkedbyparticipantsonawagevoucher,intheformof anExcelspreadsheetprovidedbythe2016Fund,andtosubmitwagevoucherstothe2016Fundin ordertoclaimreimbursementforthecostofpayrollexpenses.130Informationonwagevouchers includedthestartandenddatesofwagepaymentsforeachparticipant,hoursworkedandwages voucheredforbygrantees,andFICAandWorkersCompensationpaymentsvoucheredforby grantees.Fromthe2016Fund,IMPACTobtainedwagevoucherssubmittedbyeachgranteeforthe entireprogramperiod.Wagevoucherdatawereavailablefor1,525participants,althoughnotall dataelementswereavailableforallparticipants.Thisinformationwasusedtodeterminewages paid,hoursworked,andweeksworkedintransitionaljobs,andtoestimatetotaleconomicactivity acrossCookCountythatwasassociatedwithJobStart(seeEconomicActivitybelow).Numberof weeksworkedwascalculatedbyfindingthenumberofdaysbetweenaparticipantsstartdateand enddateonthewagevoucher.

PlacementFeeVoucher
Granteeswererequiredtorecordprogrambenchmarksthatparticipantsachievedonaplacement feevoucher,anExcelspreadsheetprovidedbythe2016Fund,andtosubmitplacementfee voucherstothe2016Fundinordertoclaimreimbursementforthecostofservicesprovidedto participants.131Fromthe2016Fund,IMPACTobtainedplacementfeevoucherssubmittedbyeach
129 130

2016FundforChicagoNeighborhoods(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.9). 2016FundforChicagoNeighborhoods(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.2728). 131 2016FundforChicagoNeighborhoods(ChicagoNeighborhoodJobStartProceduralManual,May25,2010,p.28).

97

granteefortheentireprogramperiod.Placementfeevoucherdatawereavailablefor1,592 participants,althoughnotalldataelementswereavailableforallparticipants.Thenumberof participantsthatgranteesclaimedcompletedjobreadinesstrainingasrecordedontheplacement feevoucherswasusedtocalculateparticipantswhoworkedinatransitionaljobasapercentageof allparticipantswhocompletedjobreadinesstraining,workedoneormorehoursinatransitional job,orboth.

Datafromtheparticipanttrackinglogs,eligibilitychecklists,wagevouchers,andplacementfeevouchers weremergedusingauniqueidentificationnumberbasedoneachparticipantsSocialSecuritynumber. Formostanalyses,datawereusedfromonlythoseparticipantswhohadworkedatleastonehourina transitionaljobaccordingtothewagevouchers.

Surveys
SurveysweresenttoJobStartparticipants,employers,granteeprojectdirectors,andgranteestaff. Thesesurveysaskedquestionsaboutthecharacteristicsofparticipants,employers,andgrantee agenciesthatparticipatedinJobStart,programimplementation,programoutcomes,andsatisfaction withselectaspectsofJobStart.

ParticipantSurvey
TheParticipantSurveywassentto1,757individualswhosenamesandmailingaddressesoremail addresseswereprovidedbythe2016Fund.132Itconsistedof36questionsaboutpersonal characteristicsandbarrierstoemployment,characteristicsofthetransitionaljob,activitiesafterthe programended,andsatisfactionwiththeprogram.SurveysweresentbymailandemailonOctober 19,2010,andresentbymailtoallparticipantswhohadnotalreadyrespondedafter1month. Additionally,IMPACTstafffollowedupwithnonrespondentsbyphoneandemailtoencourage themtocompletethesurvey. IMPACTendedParticipantSurveycollectiononApril16,2011,andParticipantSurveydata presentedinthisreportreflectsonlythosesurveysreceivedbythatdate.IMPACTreceived238 useableresponses,althoughnotallsurveyquestionswereansweredbyallrespondents.Factors thatpresentedchallengestosurveycollectioninclude:difficultymaintainingcommunicationwith individualsinalowincomepopulationwhooftenchangephonenumbersandaddressesandwho maylackconsistentemailaccess;ahighproportionofbadphonenumbers;releaseofsurveysafter JobStartendedonSeptember30,2010;andreleaseofsurveysclosetotheholidays. Thefollowingtablecomparesthenumberofparticipantsfromeachgranteewhoworkedina transitionaljobasapercentageofallparticipantswhoworkedinatransitionaljob,andthenumber ofuseableparticipantsurveysbygranteeasapercentageofallparticipantsurveysreceived.Overall, thepercentageoftransitionaljobparticipantsfromeachgranteeiscomparabletothepercentageof surveysreceivedbygrantee,suggestingthatParticipantSurveyrespondentsarebroadly representativeoftheparticipantpopulation.

132

Thisnumberexceedsthe1,618participantswhocompletedjobreadinesstraining,workedatleast1hourinatransitionaljob,orboth accordingtoprogramrecords.Individualswhomadecontactwithgranteesandprovidedtheircontactinformationbutdidnotcompletejob readinesstrainingmayaccountforthedifference.

98

AppendixATable1:NumberofParticipantsWhoWorkedinaTransitionalJobandNumberofUseable ParticipantSurveysbyGrantee
Grantee AlternativeSchoolsNetwork AssociationHouseofChicago CentersforNewHorizons CentralStatesSER ChicagoHousingAuthority HeartlandHumanCareServices InspirationCorporation NationalAbleNetwork OAI,Inc. PhalanxFamilyServices SaferFoundation WestsideHealthAuthority Allgrantees 1,030 100.0% 174 100.0% 44 52 179 303 94 23 131 30 149 25 4.3% 5.0% 17.4% 29.4% 9.1% 2.2% 12.7% 2.9% 14.5% 2.4% 6 12 30 45 15 5 25 5 25 6 3.4% 6.9% 17.2% 25.9% 8.6% 2.9% 14.4% 2.9% 14.4% 3.4% 131 26.8% 24 37.5% 488 100.0% 64 100.0% 45 9.2% 6 9.4% 235 48.2% 24 37.5% Adults TJ Survey TJ 77 15.8% Youth Survey 10 15.6% TJ 77 44 52 179 538 94 23 131 30 194 25 131 5.1% 2.9% 3.4% 11.8% 35.4% 6.2% 1.5% 8.6% 2.0% 12.8% 1.6% 8.6% All Survey 10 6 12 30 69 15 5 25 5 31 6 24 4.2% 2.5% 5.0% 12.6% 29.0% 6.3% 2.1% 10.5% 2.1% 13.0% 2.5% 10.1%

1,518 100.0%

238 100.0%

ResponsesfromtheParticipantSurveyweremergedwithdatafromparticipanttrackinglogsand wagevouchers.Onlythosesurveyresponsesfromparticipantswhohadworkedatleastonehourin atransitionaljobaccordingtowagevoucherrecordswereincludedinanalysesofsurveydata.

EmployerSurvey
TheEmployerSurveywassenttothe268employerswhoparticipatedinJobStart.Itconsistedof35 questionsaboutthecharacteristicsofemployersinvolvedinJobStartandreasonswhyemployers becameinvolvedwiththeprogram,employerassessmentsofparticipantprogress,effectsofthe programonbusinessfinancialhealth,andemployersatisfactionwiththeprogram.TheEmployer Surveywassenttocontactpeoplelistedonworksitetrackinglogscompletedbyeachgranteeand providedtoIMPACTbythe2016Fund.Contactpeoplewereaskedtocompletethesurveyifthey wereknowledgeableabouttheactivitiesofJobStartworkersandtheimpactofJobStartontheir businesses.IftheywerenotknowledgeableaboutJobStart,theywereaskedtoforwardthesurvey tosomeoneelseattheirbusinesswhowouldbebetterequippedtocompleteit.TheEmployer SurveywassentbyemailonDecember6,2010,andresentbymailtoallemployerswhohadnot alreadyrespondedafter1month.Additionally,IMPACTstafffollowedupwithnonrespondentsby phoneandemailtoencouragethemtocompletethesurvey. IMPACTendedEmployerSurveycollectiononApril16,2011,andEmployerSurveydatapresentedin thisreportreflectsonlythosesurveysreceivedbythatdate.IMPACTreceived77useableresponses, althoughnotallsurveyquestionswereansweredbyallrespondents.AswiththeParticipant Surveys,factorsthatpresentedchallengestosurveycollectionincludereleaseoftheemployer surveysaftertheprogramendedandthesurveybeingsentclosetotheholidays. ResponsesfromtheEmployerSurveyweremergedwithdataonhoursworkedintransitionaljobs. Onlythosesurveyresponsesfromemployerswhoemployedatleastoneparticipantforatleastone hourinatransitionaljobaccordingtowagevoucherrecordswereincludedinanalysesofsurvey data.

99

ProjectDirectorSurvey
TheProjectDirectorsurveywassenttogranteeprojectdirectorsonDecember15,2010.Itconsisted of69questionsaboutprogramimplementation,theeffectofJobStartongrantees,andgrantees experiencewiththe2016Fund.Completesurveyswerereceivedfromallprojectdirectors,although notallsurveyquestionswereansweredbyeachrespondent.Onegranteesubmittedseparate surveysforitsadultandyouthprograms.

GranteeStaffSurvey
TheGranteeStaffSurveywassenttoprojectdirectorsateachofthe13grantees.Projectdirectors wereaskedtoforwardthesurveytoallstaffwhoworkeddirectlywithJobStartparticipantsor employers.Basedonthenumberofstaffpeoplewhoprojectdirectorsreportedhadworkedon JobStart(includingthosehiredfortheprogramandthoselaidoffaftertheprogramended),103 staffpeopleeligibletocompletethesurveywerestillemployedatgranteeagenciesatthetime surveysweresent.SurveysweresentbyemailonJanuary4,2011.IMPACTstafffollowedup periodicallywithprojectdirectorstoaskthattheyencouragestafftocompletethesurvey. TheGranteeStaffSurveyconsistedof60questionsaboutparticipantcharacteristicsand implementationofeachagencysJobStartprograms.Thesurveyaskedgranteestafftoidentify whichareasofprogramimplementationtheyworkedon:recruitingparticipants;assessing participantsusingformaltests,interviews,orothermethods;providingorhelpingparticipantsto accessjobreadinesstrainingorothertraining;recruitingandenrollingemployers;placing participantsintransitionaljobs;providingparticipantswithcasemanagement;worksitevisitsand communicatingwithemployersduringthetransitionaljob;providingorhelpingparticipantsto accesssupportservicesduringtheirtransitionaljobs;andhelpingparticipantstofind,gain,and prepareforunsubsidizedemployment.Basedontheareasofprogramimplementationidentified, staffpeoplewerepresentedwithquestionsspecifictothosepartsoftheprogram. SurveycollectionendedonMarch31,2011,andGranteeStaffSurveydatapresentedinthisreport reflectsonlythosesurveysreceivedbythatdate.IMPACTreceived80useableresponses,although notallsurveyquestionswereansweredbyallrespondents.Thefollowingtableshowsthenumber ofstaffwhorespondedtothesurveybyimplementationarea.

AppendixATable2:GranteeStaffPeoplebyArea
Programimplementationarea Recruitingparticipants Providingorhelpingparticipantstoaccessjobreadinesstrainingorothertraining Providingparticipantswithcasemanagement Assessingparticipantsusingformaltests,interviews,orothermethods Providingorhelpingparticipantstoaccesssupportservices Worksitevisitsandcommunicatingwithemployersduringthetransitionaljob Recruitingandenrollingemployers Placingparticipantsintransitionaljobs Helpingparticipantstofind,gain,andprepareforunsubsidizedemployment Notreported Totalresponses Staffpeople 54 51 49 48 47 45 39 39 36 10 80 67.5% 63.8% 61.3% 60.0% 58.8% 56.3% 48.8% 48.8% 45.0% 12.5% 100.0%

100

Interviews
TounderstandthenationalandlocalcircumstanceswhichmotivatedthecreationofJobStartand shapeditsdesignandimplementation,2016FundprogramofficerswhoworkedonJobStart administrationwereinterviewed.Initialinterviewswerecarriedoutinfall2010,andIMPACTcontinued tocommunicatewith2016Fundprogramofficersthroughouttheevaluation.Representativesofthe followingorganizationswerealsointerviewed:IllinoisDepartmentofHumanServices,theChicagoJobs Council,theChicagoWorkforceInvestmentCouncil,andthreeofthephilanthropicfundersthat contributedprivatefundingtoJobStart.TheseinterviewswerecarriedoutinAprilandMay2011. TogainanindepthunderstandingofeachgranteesexperienceimplementingJobStartandtoclarify responsestotheProjectDirectorsurvey,projectdirectorsfromeachofthe12granteeswere interviewed.ProjectdirectorinterviewswerecarriedoutbetweenDecember2010andApril2011.

EconomicActivityAnalysis
EconomicactivityacrossCookCountyassociatedwithJobStartwasestimatedusingeconomic multiplierscreatedbytheU.S.DepartmentofCommerce,BureauofEconomicAnalysisusingits RegionalInputOutputModelingSystem(RIMSII).Multipliersaredefinedforspecificgeographies,such asindividualcounties,groupsofcontiguouscounties,andstates,andforindustrialsectorswithin geographies,suchasconstruction,healthservices,andretailtrade.Theyexpresstherelationship betweenincreaseddemandforgoodsandservicesinonesectorwithinageographyandincreased economicactivity(i.e.,demand,householdincome,andemployment)acrossallsectorswithinthat geography. MultipliersforretailtradeinCookCountywereusedtoestimateeconomicactivityassociatedwith spendingofincomeearnedbyJobStartparticipants.Theretailtradesectorencompassesmanyofthe businessestablishmentsatwhichparticipantsmighthavespenttheirincome.Theseincludemotor vehicleandpartsdealers,furnitureandhomefurnishingsstores,electronicsandappliancestores, buildingmaterialandgardenequipmentandsuppliesdealers,foodandbeveragestores,healthand personalcarestores,gasolinestations,clothingandclothingaccessoriesstores,sportinggoods,hobby, book,andmusicstores,generalmerchandisestores,miscellaneousstoreretailers,andnonstore retailers(i.e.,retailersthatsellthroughinfomercials,catalogs,doortodoorsolicitation,portablestalls, anddistributionvendingmachines).133 ThreetypesofRIMSIImultipliersforretailtradeinCookCountywereused: Outputmultiplier:Anoutputmultiplierexpressestherelationshipbetweenincreaseddemandin onesectoroftheeconomyandincreaseddemandacrossallsectorsoftheeconomy.Itcanbe usedtotranslateincreasedsalesinonesectorintoincreasedsalesacrossallsectors.Increased salesacrossallsectorsarecomposedoftwoquantities:theinitialspendingthatsetsinmotion otherspendingacrosstheeconomyandthesubsequentspendingneededtosupporttheinitial spending(e.g.,subsequentspendingmayincludespendingbybusinessestoreplaceinventories depletedasconsumersboughtgoodsintheinitialroundofspending).

133

U.S.DepartmentofLabor,BureauofLaborStatistics.RetailTrade:NAICS4445.RetrievedJune28,2011from http://www.bls.gov/iag/tgs/iag4445.htm

101

Incomemultiplier:Anincomemultiplierexpressestherelationshipbetweenincreaseddemand inonesectoroftheeconomyandincreasedincomereceivedbyhouseholdsacrossallsectors.It canbeusedtotranslateincreasedsalesinonesectorintoincreasedincomereceivedby households. Employmentmultiplier:Anemploymentmultiplierexpressestherelationshipbetween increaseddemandinonesectoroftheeconomyandincreasedemploymentacrossallsectors.It canbeusedtotranslateincreasedsalesinonesectorintoincreasedemploymentacrossall sectors.

AllmultipliersusedwereTypeIImultipliers,meaningthattheycountdemandforgoodsandserviceson thepartofhouseholdsascontributingtodemandinothersectors,ratherthanasendsinthechainof economicactivityinitiatedbyinitialspending. Lowerincomeindividualsandfamilieshaveahigherpropensitytospendincomeongoodsandservices (asopposedtosavingorinvestingincome),andtospendincomelocally,thanthosewithhigher incomes.134StudiesoftheEarnedIncomeTaxCreditandrecentfederalstimuluspaymentsfindthatlow incomehouseholdsspentapproximately70percentofthesepaymentsimmediatelyafterreceiving them.135Accordingly,themultipliereffectofJobStartisestimatedbyassumingthatparticipantsspent 70percentofincomeearnedthroughtheprogram.Thisrepresentsaconservativeassumption,asthe definitionoflowincomehouseholdsusedinthestudiesaresubstantiallyhigherthanthehousehold incomesofJobStartparticipants,suggestingthatJobStartparticipantswouldspendagreaterproportion ofearnedincometosatisfyimmediateneeds.136

134

P.Orszag&J.Stigliz.(2001November).Budgetcutsversustaxincreasesatthestatelevel:isonemorecounterproductivethantheother duringarecession?Washington,DC:CenterforBudgetandPolicyPriorities.Severalstudiesoftheconsumerresponsetotaxrebatesfindthat lowincomehouseholdsspendahigherproportionoftheirtaxrebatesthanthetypicalmiddleincomehousehold.D.Johnson,J.Parker,&N. Souleles.(2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610.(p. 1603).J.Parker,N.Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof2008. RetrievedOctober27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(p.16). 135 EITCrecipientsspent70percentoftheirEITCchecks.Lowincomehouseholdsspent76percentoftheir2001incometaxrebatesand71.5 percentoftheir2008economicstimuluspayments.R.Edwards.(2003September).MacroeconomicimplicationsoftheEarnedIncomeTax Credit.RetrievedOctober27,2011fromhttp://www.demog.berkeley.edu/~redwards/Papers/edwardseitc.pdf(p.16).D.Johnson,J.Parker,& N.Souleles.(2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610. (p.1603).J.Parker,N.Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof 2008.RetrievedOctober27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(Table6). 136 In2004,theaverageannualincomeofanEITCeligiblehouseholdwas$28,599,equivalentto$2,383permonth.Thestudiesofspending fromthe2001incometaxrebateand2008economicstimuluspaymentsdefinedlowincomehouseholdsasthosewithannualearningsequal toorlessthan$34,298and$32,000,equivalentto$2,858and$2,667,respectively.Asnotedpreviously,averagehouseholdincomereported byJobStartadultprogramparticipantsuponentrywasonly$609permonth,equivalentto$7,308peryear.A.GoodmanBacon&L. McGranahan.(2008).HowdoEITCrecipientsspendtheirrefunds?Chicago:FederalReserveBankofChicago.(p.21).D.Johnson,J.Parker,&N. Souleles.(2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610.(p. 1604).J.Parker,N.Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof2008. RetrievedOctober27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(Table6).

102

AppendixB
HoursWorkedandWagesEarnedinJobStartTransitionalJobs
AppendixBTable1:HoursandWeeksWorkedinSubsidizedEmploymentbyJobStartParticipantsby ChicagoCommunityArea
ChicagoCommunityArea Douglas EastGarfieldPark Englewood GrandBoulevard Kenwood LowerWestSide NearSouthSide NearWestSide NorthLawndale Oakland SouthLawndale WashingtonPark Woodlawn Other Unknown Total
Source.Analysisofprogramrecords.

Numberofenrolleeswhoworked Adults 56 119 122 37 14 8 16 178 257 30 44 50 71 11 17 1,030 Youth 37 57 45 29 11 8 0 96 98 28 18 31 18 10 2 488 Total 93 176 167 66 25 16 16 274 355 58 62 81 89 21 19 1,518 Adults

Totalhoursworked Youth 5,736 12,038 8,720 4,698 2,354 1,768 0 16,424 19,248 4,035 3,514 6,354 3,501 1,254 112 89,754 Total 20,479 56,952 46,928 14,577 6,567 4,824 3,634 68,577 112,717 11,932 18,407 22,003 23,438 5,128 2,338 418,500 14,743 44,915 38,208 9,879 4,214 3,057 3,634 52,154 93,469 7,898 14,893 15,649 19,937 3,874 2,226 328,747

103

AppendixBTable2:HoursandWeeksWorkedinSubsidizedEmploymentbyJobStartParticipantsby ChicagoCommunityArea
ChicagoCommunityArea Douglas EastGarfieldPark Englewood GrandBoulevard Kenwood LowerWestSide NearSouthSide NearWestSide NorthLawndale Oakland SouthLawndale WashingtonPark Woodlawn Other Unknown Total
Source.Analysisofprogramrecords.

Averagehoursworked perparticipant Adults 263 377 313 267 301 382 227 293 364 263 338 313 281 352 131 319 Youth 155 211 194 162 214 221 0 171 196 144 195 205 195 125 56 184 Total 220 324 281 221 263 302 227 250 318 206 297 272 263 244 123 276

Averagenumberofweeksworked perparticipant Adults 8 10 9 8 9 10 8 9 10 8 10 9 8 10 5 9 Youth 6 7 7 6 6 5 8 7 7 7 8 8 5 4 7 Total 8 9 8 7 8 8 8 9 9 8 9 9 8 8 5 8

104

AppendixBTable3:HoursandWeeksWorkedinSubsidizedEmploymentbyJobStartParticipantsby ChicagoCommunityArea
Chicago CommunityArea Douglas EastGarfieldPark Englewood GrandBoulevard Kenwood LowerWestSide NearSouthSide NearWestSide NorthLawndale Oakland SouthLawndale WashingtonPark Woodlawn Other Unknown Total Totalwagesearned Adults $146,459 $435,749 $371,554 $94,923 $38,577 $30,330 $34,853 $505,974 $909,055 $77,382 $146,285 $150,536 $192,648 $36,619 $22,258 $3,193,201 Youth $47,320 $99,311 $72,827 $39,100 $19,637 $14,582 $0 $135,548 $33,287 $28,991 $53,161 $29,204 $10,348 $966 Total $193,779 $535,060 $444,381 $134,023 $58,214 $44,912 $34,853 $641,522 $110,669 $175,275 $203,697 $221,852 $46,966 $23,224 Averagewagesper participant Adults $2,615 $3,662 $3,046 $2,565 $2,755 $3,791 $2,178 $2,843 $3,537 $2,579 $3,325 $3,011 $2,713 $3,329 $1,309 $3,100 Youth $1,279 $1,742 $1,618 $1,348 $1,785 $1,823 $1,412 $1,622 $1,189 $1,611 $1,715 $1,622 $1,035 $483 $1,523 Total $2,084 $3,040 $2,661 $2,031 $2,329 $2,807 $2,178 $2,341 $3,008 $1,908 $2,827 $2,515 $2,493 $2,236 $1,222 $2,593 Averagewagesperhour Adults $9.93 $9.70 $9.72 $9.61 $9.16 $9.92 $9.59 $9.70 $9.73 $9.80 $9.82 $9.62 $9.66 $9.45 $10.00 $9.71 Youth $8.25 $8.25 $8.35 $8.32 $8.34 $8.25 $8.25 $8.26 $8.25 $8.25 $8.37 $8.34 $8.25 $8.63 $8.28 Total $9.46 $9.39 $9.47 $9.19 $8.86 $9.31 $9.59 $9.35 $9.48 $9.27 $9.52 $9.26 $9.47 $9.16 $9.93 $9.41

$158,942 $1,067,997

$743,223 $3,936,423

Source.Analysisofprogramrecords.

105

AppendixBTable4:HoursandWeeksWorkedinSubsidizedEmploymentbyJobStartParticipantsby ChicagoCommunityArea
ChicagoCommunity Area Douglas EastGarfieldPark Englewood GrandBoulevard Kenwood LowerWestSide NearSouthSide NearWestSide NorthLawndale Oakland SouthLawndale WashingtonPark Woodlawn Other Unknown Total
Source.Analysisofprogramrecords.

TotalFICApayments Adults $11,204 $31,588 $28,428 $7,262 $2,913 $2,320 $2,666 $38,317 $67,819 $5,920 $11,142 $11,506 $14,628 $2,801 $1,703 $240,219 Youth $3,620 $7,597 $5,574 $3,030 $1,502 $1,116 $0 $10,369 $12,159 $2,546 $2,218 $4,067 $2,234 $792 $74 $56,898 Total $14,824 $39,186 $34,002 $10,292 $4,415 $3,436 $2,666 $48,687 $79,979 $8,466 $13,360 $15,573 $16,862 $3,593 $1,777 $297,117

TotalWorkersCompensationpayments Adults $1,533 $13,577 $10,443 $1,606 $618 $1,165 $306 $8,789 $24,009 $1,269 $4,817 $3,280 $3,117 $996 $0 $75,527 Youth $152 $1,922 $269 $137 $87 $65 $0 $171 $3,016 $35 $164 $277 $185 $18 $0 $6,499 Total $1,686 $15,499 $10,713 $1,744 $705 $1,229 $306 $8,960 $27,025 $1,304 $4,981 $3,557 $3,303 $1,014 $0 $82,026

106

33W.GrandAvenue,Suite500 Chicago,IL60654 312.870.4949 research@heartlandalliance.org