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Goal: retrain workers displaced from automation of factory jobs. Three year program ... 80% still retain jobs 2 years later. Strive continues follow up and ...
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"Large scale unemployment during a recession is bad enough, but large scale unemployment during a period of prosperity would be intolerable." John F. Kennedy, 1961
Manpower Development and Training Act of 1962 • Goal: retrain workers displaced from automation of factory jobs • Three year program • Authorized training allowance for unemployed participants • Failure: training given in the wrong skills
Work Incentive Program 1967 • Goal: encourage welfare recipients to work through • regulatory requirements • incentives • Success rate: 2-3% • WIN II served to force participants into low status work
Comprehensive Employment and Training Act of 1973 • Target population: economically disadvantaged, unemployed, or under-employed • Block grants to state and local governments • Supporting public & private job training: Job Corps and Summer Youth Employment
Job Training Partnership Act 1982 • Goals: • To prepare youth and unskilled adults for entry into the labor force • Make job training affordable to those economically disadvantaged individuals • Provisions: • Vocational education • On the job training between 2-6 mo.
Family Support Act 1988 (Job Opportunity & Basic Skills Training Program) • Comprehensive welfare-to-work program • Goal: give AFDC recipients the chance to participate in job training, work, and education leading to economic self-sufficiency • Provides transportation & child care
Policy Issues Leading to Improvement of Lower Class • Job creation • Improvement of income from work (EITC, wage subsidies, minimum wage, etc) • Adjustments of tax rates • Subsidized child care & child support • Health insurance extended to low wage workers • Unemployment insurance accounting for changing employment conditions
Job Training Programs • Functions: • Enhance job specific skills • Assist with job search • Access to jobs • Failures: • Skills valued • Connect trainees to best job opportunities
Changes Making Job Training Programs Essential • From 1979-1993: gap between earnings of people with 4 year college degrees and high school diplomas increased from 38% to an 80% difference • GED/High school diploma does not certify basic skills
Social Capitol • Granovetter social networks play an important role in maintaining limited access to good employment opportunities for low-wage workers • Holzer isolation from informal referral networks excludes disadvantaged populations from the work force
Job Training is More than Skill Acquisition • To end poverty, what is need “is more than a job skill-more than job training. An attitudinal change is needed: a need for self-esteem, incentive to train in a skill, family counseling, and above all, a subjective feeling of competence and equality with others” Father Soto • Employers in low-skill market look at: • Attitude towards work • Discipline (through work history) • Punctuality
Essential Characteristics of Job Training Programs • Human assets: assist disadvantaged people in developing skills for private sector jobs • Social assets: access to employment in expanding industries
Personal Responsibility and Work Opportunity Reconciliation Act August 22, 1996 • strong work requirements • performance bonuses for states • support for families (incl. child care)
Results achieved by Clinton: • Since Jan ’93: welfare rolls fell from 14.1 mil to 6.6 mil (fewest number since 1968) • 2.4 % of all Americans are on Welfare (lowest level since 1966)
$200 mil for top 10 states States with best record moving parents on welfare into jobs: Indiana Minnesota Washington Florida
Oct ’97 – Sep ‘98 1.3 mil welfare recipients went to work 80% were still working 3 months later 23% increased of their income
“The Welfare to Work Partnership” 1997: 105 businesses 1998: 15,000 businesses hiring 65,000 welfare recipients
“Federal Government’s Hiring Initiative” By August 1999: 14,000 By May 2000: 29,000
“Father’s work” Grants for low-income fathers who are not able to support their children financially $ 125 mil for 40,000 grants
Tax credits for Employers “Welfare-to-Work-Tax-Credit” offers a credit equal to: - 35% of the first $10,000 in wages for the first year - 50% for the first $10,000 in the second year - total credit up to $8,500
Bush Administration High Growth Job Training Initiative -A strategic effort to prepare workers to take advantage of new and increasing job opportunities -Aimed at high growth/high demand and economically vital industries -The foundation of this initiative is partnerships that include the public workforce system, business and industry, education and training providers, and economic development
Community College Initiative • Budget of $250 million dollars • Employer-focused competitive grant program for training in community and technical colleges • Combined through the Partnership for Jobs Program
Partnership for Jobs • Done in order to assist businesses in recruiting, training,and retaining a skilled work force • Designed to ensure that large multi-state businesses remain connected to the full range of services through local and state workforce systems • Trying to develop national business partnerships
Employment and Training Administration Demand Driven Incubator Sites: -Using specific locations to train employees in areas where growth is considered possible Goals: -Working examples of state and local workforce investment that focus on high growth, demand industries -Model for the public workforce system and its education training partners to develop workforce solutions -Strategies and approaches to achieve success with the public workforce system to facilitate replication -Value of leveraging public workforce dollars to implement solutions for local employers and provide career opportunities for local workers
Online Training Programs • Not feasible for impoverished • Just as expensive, if not more expensive than regular programs • Lower class don’t have access to computers in most cases • People are told to use a public library
Job Training Opportunities • Application and Fees • Michigan Works-NAFTA • Program Length • Soft and Hard Skills • Internships available • Job Placement
Cost • $52 per credit 25 credits a year = $1300 per year • NAFTA and programs affiliated with the Dislocated Workers Program cover total tuition and book fees • KVCC pairs up with Michigan Works to cut-costs for low-income individuals
Internships • 8 of the degree programs require an internship to graduate • 50 students per year • Paid and unpaid available • 50-70% retain internship and gain employed at site • KVCC administration visits site mid-way through semester -Student graded on pass or fail basis
Strive “Either Fail or Grow”
General Info • Deals with the hardest people to employ • Has placed 15,000 people into jobs (1997) • First located in New York • Funded by corporate and charitable funds • Free for attendees • Three weeks of intense training
Education • Boot camp and group therapy • 50% of the people that show up the first day end up completing the three week program • Soft skills are the main focus
Attitude • It is not the lack of skills that keep these individuals from being successful, but their attitude • Many of the unemployed see themselves as victims and the victim attitude is not tolerated there
Soft Skills • Do not be late • Structure and accountability • Appearance and presentation • Handshake 101 • Teamwork • Mock job interviews
Strive success • 75% of graduates find work after graduating from program • 80% still retain jobs 2 years later • Strive continues follow up and support for 2 years
CET • Core Mission: assist disadvantaged population in gaining access to the job market • Target population: farmers, mothers on welfare, out of school youth, past criminals, ESL, etc. • Effective Aspects: • Motivates student to learn job-specific skills • Part of employer recruiting network
Michigan works Adult training program: Income based (70% of poverty line) People receiving cash assistance are obliged to participate (Work First Program) Teachers: social workers & teachers
Common struggles:transportationchild caremaking decisionspunctualityorganizing one‘s own life
Soft skills: -social behaviour -behaviour at work -conflicts @ work Hard skills: based on the program they participate short term - goal: to get a job Skills training