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NationalInvestmentinSubsidizedandTransitionalJobs fortheHardesttoEmploy: EnsuringAllWorkersBenefitfromaFederalJobsPackage

August2011

TheNationalTransitionalJobsNetwork(NTJN)recommendsthatanyfederaljobspackagedevelopedby theadministrationandCongresssupportthefollowing:

1. Invest$5billionovertwoyearsforSubsidizedEmploymentandTransitionalJobsprograms. Federalagenciesshouldallocatefundsinamannerthat: a. buildsuponandtakesadvantageoftheexistingcapacityandknowledgebasewithinthefield; b. buildsuponinvestmentsinSubsidizedEmploymentandTransitionalJobsprogramsmadeby otherfederalagencies,suchastheDepartmentofLaborandtheDepartmentofHealthand HumanServices;and c. providessupportforprogramsthatdemonstratecapacitytoserveasonrampstothenewjobs beingcreatedthroughrelatedfederalactionstospurjobcreation.

2. Theadministrationandfederalagenciesshouldprovidemaximumflexibilityunderkeyfederal programstofacilitatethedevelopmentandexpansionofSubsidizedEmploymentandTransitional Jobs.TheseprogramsincludetheCommunityDevelopmentBlockGrants,FoodStampEmploymentand Training,TemporaryAssistanceforNeedyFamilies,HEARTHAct,SeniorCommunityServiceEmployment ProgramandtheCommunityServicesBlockGrant.Formoreinformation,see: http://transitionaljobs.net/Policy/NTJNFederalMemo.pdf. FartoomanyAmericanscontinuetofeelthestrainoflongperiodsofunemploymentandhardship,anda disproportionatenumberoflowincomeindividuals,minoritiesandthosewithbarrierstoemployment remaindisconnectedfromthelabormarket.Afederaljobspackagethatincludestheseinvestmentswill ensurethatlargenumbersofunemployedAmericanshaveaccesstoemploymentandincomeandour nationsmostvulnerablejobseekerswillbenefittoaccesstoemploymentopportunities.Tacklingour currentunemploymentcrisisbyaggressivelycreatingandmaintainingjobsfortheunemployedand disadvantagedwhilecreatingtheconditionsbywhichemployerscanmaintainandgrowtheirbusinesseswill drivethenationtowardfulleconomicrecoveryandviability. WeurgetheadministrationandCongresstoleadthecountrybacktoeconomicprosperitybyinvesting injobcreationstrategiesthatincludeSubsidizedEmploymentandTransitionalJobsprogramswhichin turnreinvestinindividuals,employers,andcommunities.

TheNationalTransitionalJobsNetworkistheleadnationalcoalitionofover4,000programproviders, workforceandantipovertyorganizations,andgovernmentofficialsfocusedonsupportingtransitional employmenttohelpthehardesttoemploymovefrompovertytoopportunity.Formoreinformationplease visitwww.transitionaljobs.net.

Formoreinformation,pleasecontactMelissaYoungattheNationalTransitionalJobsNetworkat myoung@heartlandalliance.orgor312.870.4944.

Rationale

Fartoomanyofournationsworkersareexperiencinglongperiodsofjoblessnessandvulnerable populationscontinuetofacesignificantlyhigherunemploymentratesthanthenationalaverage leadingtoprolongedhardshipformillionsofAmericanfamilies.Withthenationalunemploymentrate hoveringatover9percentmillionsofindividualsandfamiliescontinuetostruggletofindemployment andmeetbasicneeds.Moreconcerningisthat6.2millionoftodaysunemployedhavebeenjoblessfor over6monthsandcombinedover26millionAmericansareunemployedandunderemployed.Still staggeringisthedisproportionateimpactunemploymenthashadonalreadylowincomeindividuals, minoritiesandthosewhofacebarrierstoemploymentwhoarefar lesslikelytocollectunemploymentbenefitsthanotherworkers. MillionsofAmericansFace ChallengesinAccessing RecentSubsidizedEmploymentprogramshavebeensuccessfulin EmploymentOpportunities rampingupquickly,employinglargenumbersofunemployedand 44%,or6.2millionoftodays disadvantagedworkersandsupportingtheprivateandpublic unemployedhavebeen sectorsinmaintainingordevelopingjobs.TheTANFEmergency joblessforoverhalfayear Fundplacedover260,000lowincomeparentsandyouthinsubsidized Over26millionAmericans jobsin39states.Forexample,thestateofIllinoisPutIllinoistoWork areunandunderemployed (PITW)programrampedupandemployedover27,000lowincome, unemployedIllinoisanswithover4,000employers.Welloverhalf(57 Unemploymentforyouth percent)ofparticipatingemployersreportedthatthattheirbusiness ages1619isat25%,or5.7 financialhealthwasbetterfollowingPITWparticipationand88 millionyouthunemployed percentreportedthattheywouldparticipateinaprogramlikethis again.PITWpaidover$213millioninwagestoparticipantsoverthe MillionsofAmericansFace courseoftheprogramwhichwaslargelyspentbyparticipantsin BarrierstoGettingandKeeping communitiesacrossIllinoistomakeendsmeet.PITWgenerated$26 Employment millioninfederalincome,MedicareandSocialSecuritytaxeson Over700,000individuals wagesearnedbytraineeworkersand$5millioninstateincometax returnfromprisoneachyear wasleveragedduetotheprogram.Anotherexample,theMississippi 647,000peoplearehomeless STEPSprogram,foundthat55percentofthoseworkingattheendof atanygivenpoint theprogramwerestillworking6monthslater.Theearningsduring thequartersafterSTEPSendedwereover$14million. 25%ofourreturning

veteranshavedisabilities TransitionalJobsprograms,asubsetofSubsidizedEmployment, thathindertheir utilizetemporary,wagepaid,realwork,coupledwithskill employment developmentandsupportiveservicestotransitionpeoplewhoface labormarketbarriersintowork.TJprogramsarespecifically targetedtopeoplewithbarrierstoemploymentsuchasdisconnectedyouth,TANFrecipients,persons whoareformerlyincarcerated,noncustodialparents,individualsexperiencinghomelessnessand veterans.TransitionalJobsareakeyentrypointintotheworkforceformanyhardtoemploy populationsandcanprovidecriticalonrampsandpipelinesforverylowskilledworkerstomoveinto growingindustrysectors.Over30statesandnumerouslocalitiesacrossthecountryhaveimplemented TransitionalJobsprogramsformanyhardtoemploypopulations.CurrentinitiativesbytheUS DepartmentofLaborandUSDepartmentofHumanServicesaresupportingsmallscaleinvestmentsin thisstrategybutmoreresourcesandfederalflexibilityisnecessarytosupportthemillionsof Americanswhocanbenefitfromthestrategy.EvaluationspointtothevalueofTransitionalJobs programsinhelpinggetearnedincomeintothehandsofindividualswhoneeditmost,reducing recidivismbacktothecriminaljusticeandTANFsystems,increasingearningsovertime,reducingtax payerdollars,andimprovingthelivesofchildren.

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