Put Illinois to Work Evaluation: An Early Look

1. 2010 Put Illinois to Work Evaluation: An Early Look

2. Provides dynamic research and analysis on today's most pressing social issues and solutions to help equip policy decision makers in efforts toward a just global society Social IMPACT Research Center

3. When the program began, there were 764,825 unemployed workers in Illinois and an unemployment rate of 11.5%. • The poverty rate was at 13.3% and household incomes were declining. • Illinois had a meager 1,400 net job increase over the time period of PITW program operation PITW (from April to November 2010) Program Impetus: The Recession

4. 3 sources of data for this report: • The PITW central database • Heartland Human Care Services payroll records • Surveys of employers and trainee-workers carried out by IMPACT • Program and participant data reflect a cutoff date of 9/11/10, and survey data reflect only those received by9/30/10. • All data are subject to change.Subsequent reports will incorporate full data and report final analyses. Important Data Notes

5. PITW has… • put 27,393 low-income people to work, • through 4,280 employers, • paid nearly $107 million in wages, • generated nearly $13.6 million in federal income Medicare and Social Security taxes. Impressive Scale

6. On average: • Each trainee-worker has been employed 5.7 pay periods (almost 11.5 weeks). • Each trainee-worker has worked 384 hours, the equivalent of 48 eight-hour work days. On average, in each two-week pay period: • Nearly $9 million in wages are paid out. • In the peak months of July and August, over $15 million in wages were paid out. • Over $1.1 million are generated in federal income, Medicare, and Social Security taxes. • Over $226,000 are generated in state income tax. Breaking it Down

7. Picture of Employers Majority for-profit or nonprofit Majority very small

8. Over 1 in 4 employers (28%) report that their businesses were financially unhealthy or very unhealthy before PITW. • Around 1 in 6 PITW employers reported experiencing no negative impacts of the recession on their business. • Over two thirds (69%) experienced cash flow problems, over half experienced reductions in sales (53%), and 44% had an increase in customers paying late or not at all. • PITW employers implemented a variety of measures in an attempt to weather the recession, including: • 39% of employers report reducing employee hours, 37% report freezing hiring, and 32% report laying off employees. • 38% operated with a deficit. Recession’s Business Impact

9. 60% are female. • 62% are under the age of 30: • average age of a trainee-worker in the young adult group is 20. • average age of a trainee-worker outside this group is 33. • 53% are responsible for the day-to-day care of their children, and 11% are a non-custodial parent to a child under age 18. • The average number of kids among those with at least 1 child is 2.1. • 81% are African American, 10% Latino, 6% White. • 41% have taken some college courses, but have not earned a higher degree. An additional 33% had just a high school diploma. • Trainee-workers are concentrated in the counties with the highest numbers of unemployed workers. Picture of Workers

10. 39% did not work in the 2 years prior to enrolling in PITW. • The average length of unemployment for all trainees-workers was 15.4 months. • Of those who did work in the 2 years before PITW: • 46% were unemployed at the time of program entry but had never received Unemployment Insurance benefits. • 9% were unemployed and had exhausted their Unemployment Insurance benefits. • 62% earned less than the PITW wage of $10 an hour. • Only 19% earned $12 an hour or more. • Average monthly household income pre-PITW was $710. 32% report their household had no income in the month prior to entering PITW. Worker Struggles Pre-PITW

11. The vast majority of trainee-workers (92%) and employers (88%) indicate they would participate in PITWor a similar program if it were offered again. • If the wage subsidy were halved, 40% of employers report they would participate, and 42% might participate. • Over half (52%) of all employers stated that they are more willing now to hire low-income parents and young adults than before PITW. Employer and Worker Satisfaction

12. 52% of employers would permanently hire half to all of their trainee-workers if they were financially able to do so. • However, considering their financial situation, only 13% reported that they will be able to keep half to all of their trainee-workers. • Of trainee-workers that have discussed staying on permanently with their employer, 95% said they would accept that job if it were offered. Permanent Employment Options

13. 57% report that the financial health of their business was better or somewhat better following participation in PITW, and 47% attributed at least half of that improvement directly to participation in PITW. • 63% have seen the quality of their work improve as a result of having PITW trainee-workers. • 68% have been able to serve more customers as a result of having PITW trainee-workers. • 59% have seen customer satisfaction improve as a result of having PITW trainee-workers. PITW Benefited Employers

14. The majority of trainee-workers expressed that the program: • was important in helping them make ends meet (87%). • put more money at their disposal than they had before (78%). • taught them new skills (78%). • saved them from likely unemployment (75%). • introduced them to new professional contacts who might be resourceful in future job searches (72%). • Of those who worked in the 2 years prior to PITW, 76% reported that their PITW jobs had a skill level at or above that of their prior job. PITW Benefited Trainee-Workers

15. Survey follow-up and analysis • Documentation of the model • Matched comparison group? • State records request and analysis: • Employment and Wage history • Unemployment Insurance history • TANF and SNAP history • Change over time Evaluation Next Steps

16. For More Information: Amy Rynell arynell@heartlandalliance.org www.heartlandalliance.org/research