Wages Work! An Examination of NYC’s Parks Opportunity Program and Its Participants

1. Wages Work!An Examination of NYC’s Parks Opportunity Program and Its Participants A Research Project by Community Voices Heard March 2004

2. Workfare vs. Transitional Job • Workfare – a welfare recipient “works off” benefits in a job in the public or private sector. Education, training and support services may be available. • Transitional Job – a welfare recipient works in a time-limited job with pay. Education, training and support services are a key part of the program.

3. What is a Transitional Job? • Provides work experience: time-limited, publicly subsidized job with wages • Provides case management: address barriers, assist in accessing work supports • Provides skill development: on the job and through education and training • Provides job placement support: job search assistance & job retention services

4. Transitional Jobs: National Scope • 40 programs nationwide • 3,500 individuals at any given time • 81-94% of individuals completing programs found employment

5. Parks Opportunity Program (POP) • Largest paid transitional jobs program • Run by NYC Dept. Parks & Recreation • Started Spring 2001 • Initial phase of program had: • 3,500 Participants • Paid $9.38 an hour • 11 ½ month positions • Workers were District Council 37 members

6. Distinctions Between POP & WEP

7. POP Testimony #1 Euline Williams

8. Research Design • Multiple contact with 1000+ POP participants • Development of 10-page survey instrument • Personal background, history prior to POP, placement process • Experience during POP: at job site, at job services site, in relation to salary & work supports, quality of life • Experience post-POP, current situation, general feedback • Random sample of 200 former workers from 3,403 list of participants

9. Research Sample • Response Rate: 50% • 101 surveyed - 35 not found at home • 36 had moved - 12 refused • 13 unknown at address - 2 unable to complete • Demographics • Gender: 100 women & 1 man • Age Range: 79% 25 – 44 years old 22% 45 – 64 years old • Race/Ethnicity: 54% African-Americans/Blacks 42% Latinas/Hispanics • Education: 57% less than High School 42% High School / GED / Beyond

10. Major Research Findings • Finding 1: Wages are Important • Finding 2: POP Workers Did Real Work • Finding 3: POP Improved Lives of Participants • Finding 4: POP Prepared People Better than WEP • Finding 5: POP Lacked Critical Elements of TJPs • Finding 6: POP Failed to Connect Many to Jobs

11. Finding 1 Wages are an Important Component in Motivating Welfare Recipients to Move Off Welfare • Wages Matter • POP Motivated Participants to Leave Welfare

12. Finding 1: Wages Important Wages Matter • Best things about POP: • being off of public assistance (90.9%) • getting a paycheck (77.4%) • Program aspects that changed the way POP participants felt about work: • earning a paycheck (97.6%) • having a job title (96.2%) • having a supervisor (83.8%) • having a clear work plan (87.5%)

13. Finding 1: Wages Important POP Motivated Participants to Want to Leave Welfare • 98% would have liked to keep working in a full-time job • 93% would have liked to keep working in a full-time permanent Parks job • 79% were actively looking for work and had applied to an average of 10 jobs each • 78% felt confident that they could get a job post-POP, while only 60% did post-WEP

14. Finding 2 POP Workers Did Real Work Needed for the City A. POP Workers Did Critical Work for the City B. POP Workers Were Often Asked to Work Overtime

15. Finding 2: Real Work POP Workers Did Critical Work for the City

16. Finding 2: Real Work POP WorkersWere Often Asked to Work Overtime • The importance of the work is also reflected in the fact that… • 61% were asked to work overtime • Of those asked to work overtime, 70% asked to work overtime between 3 & 10 times

17. Finding 3 The Parks Opportunity Program Improved the Lives of Most Welfare Recipients Participating in the Program A. POP Workers Had More Monthly Income B. POP Workers Saw their Quality of Life Improve C. POP Workers Gained Greater Self-Esteem

18. Finding 3: Improved Lives POP Workers Had More Monthly Income than Welfare Recipients • 90% had more monthly income during POP • Eligible for up to $3,888 in EITC • 36.4% were even able to save money

19. Finding 3: Improved Lives POP Worker Income Compared to Other Benchmarks

20. Finding 3: Improved Lives POP WorkersSaw Their Quality of Life Improve • 93% felt their quality of life had improved • Responses pointed to: • increased economic security, • rising self-esteem, and • positive family spillover effects

21. Finding 3: Improved Lives POP Workers Gained Greater Self-Esteem • 87.9% of POP respondents felt above average (good or terrific) while in POP • Only 22.4% felt this positive while receiving public assistance

22. Finding 4 The Parks Opportunity Program Prepared People for Work Better than Unpaid Workfare/WEP A. POP Workers Gained Skills On the Job B. A Variety of New Skills Were Learned

23. Finding 4: Prepared People>WEP POP Workers Gained Skills On the Job • 72% considered POP a useful program • 71% said they learned new skills on the job • 39% felt they had learned new skills in WEP

24. Finding 4: Prepared People>WEP A Variety of New Skills Were Learned

25. Finding 4: Prepared People>WEP A Variety of New Skills Were Learned

26. Positive Elements of POP • Wages are an Important Component • POP Workers Did Real Work for City • POP Improved Lives of Participants • POP Prepared People for Work Still, some elements need improving…

27. Finding 5 POP Program Model Fails to Incorporate Critical Elements Typical of Most Effective Transitional Jobs Programs A. Work Supports Were Not Sufficient or Accessible B. Job Search & Employment Services Were Poor, Education & Training Was Limited C. POP Failed to Address Individual Barriers to Employment D. Program Length is Insufficient to Achieve Stated Goals

28. Finding 5: Missing Elements Work Supports Were Neither Fully Accessible Nor Sufficient • 93% had their cash assistance cases closed • 69% drew on additional benefits to help make ends meet • Even with a wage of $9.38 an hour and up, additional supports were necessary

29. POP Worker Testimony #2 Zoila Almonte

30. Finding 5: Missing Elements Work Supports Were Neither Fully Accessible Nor Sufficient • Without supports, an average family would fall short almost $2,000 each month in paying their expenses [Self-Sufficiency Standard & Calculator, P.26] • Yet, despite clear need for additional supports, not everyone received additional benefits… • Earned Income Tax Credit 88.3% received • Medicaid 81.9% received • Food Stamps 64.7% received • Childcare 45.6% received • Rental Assistance 27.9% received

31. Finding 5: Missing Elements Job Services Were of Poor Quality & Education and Training was Limited • 92% attended JAC & PACT 2-8 times per month • Bulk of services received focused on: • job readiness (time, behavior, hygiene, dress, etc.) • job search (resumes, interviewing, etc.) • Only 50% felt they were better equipped or skilled to get a job at the end of receiving the job services

32. Finding 5: Missing Elements Job Services Were of Poor Quality & Education and Training was Limited

33. Finding 5: Missing Elements POP Program Failed to Address Individual Barriers to Employment

34. Finding 5: Missing Elements POP Program Failed to Address Individual Barriers to Employment Differentials in Disadvantages Mentioned • Based on Education Level • A high percent of non-graduates mentioned their lack of education as a major barrier to employment (80%) • Non-graduates mentioned certain barriers (lack of job experience and pay not being enough to support a family) more often than graduates • Based on Race/Ethnicity • Consistently across categories, Latinas cited each barrier at a higher level than African-Americans • More focused education/training options were not offered as frequently to Latinas as African-Americans

35. Finding 5: Missing Elements POP Program Failed to Address Individual Barriers to Employment

36. Finding 5: Missing Elements Program Length is Insufficient to Achieve All Stated Goals • Participants felt that a year or more was necessary in a transitional job • 49% 2 years • 30% 1 ½ years • 21% 1 year • Extra time can help participants… • Stabilize their finances • Learn to juggle work & family • Complete both basic education and job training • Demonstrate ability to maintain long-term job to prospective employers • Provide increased value job placement sites

37. Finding 6 POP Failed to Connect Most Participants to Paying Jobs Thereby Forcing Many to Return to Welfare A. Design May Have Resulted in Limited Post-Program Placement B. High Unemployment Put Hard-to-Employ at Disadvantage C. When in Need, Program Leavers Return to Public Support

38. Finding 6: Failed Connection Program Design May Have Resulted in Limited Post-Program Placement • Only 15.5% of those surveyed were employed when the surveys were taken • A slightly higher percentage (22%) had held at least one job since POP

39. Finding 6: Failed Connection Program Design May Have Resulted in Limited Post-Program Placement

40. Finding 6: Failed Connection Program Design May Have Resulted in Limited Post-Program Placement • Critical program elements were missing or of a low quality in POP: • Formal screening & assessment at start • Intensive case management with low advisor-participant ratios • Education and job skills training • Job placement assistance • Job retention assistance • Difference in skills participants obtained on the job and jobs available in the market

41. Finding 6: Failed Connection High Unemployment Rates Put Hard-to-Employ at Disadvantage

42. Finding 6: Failed Connection High Unemployment Rates Put Hard-to-Employ at Disadvantage • Unemployment Rates were high • 8.2% in NYC in 2002 • Non-High School Graduates Disadvantaged • 9.7% unemployment in 2002 • People of Color Disadvantaged • 9.6% for Latinas in 2002 • 11.0% for Non-Hispanic Blacks in 2002 • Single Mothers w/ Less than High School • In 2003, only 39.4% employed Figures based on CSS tabulations from Current Population Survey

43. Finding 6: Failed Connection When in Need, Unemployed Program Leavers Return to Public Support • Though most were looking for work throughout (79.1%), some needed public support… • 85% accessed unemployment benefits • 68% were receiving assistance when surveyed • Food Stamps 90.6% • Medicaid 91.9% • Cash Assistance 57.8%

44. Conclusion • The Parks Opportunity Program was an excellent public sector jobs program • Employed large numbers in good paying city jobs • However, as a transitional jobs program, it failed to provide participants with the comprehensive supports necessary for success

45. Needed • Fusion of large-scale living wage paying public jobs initiative with positive elements of higher quality transitional job support elements • Critical improvements to move beyond simply being good temporary jobs program and toward an effective transitional jobs program

46. Recommendations • 1: Diversify positions available • 2: Provide links to long-term employment • 3: Make available training and education • 4: Extend program length • 5: Incorporate flexibility into program model • 6: Expand work supports