Local sector employment programs are effective in helping economically disadvantaged Americans find quality jobs, according to a new study.

The study was published in August by Public/Private Ventures (PPV), a nonprofit organization that supports low-income communities, and was funded by the Charles Stewart Mott Foundation.

It found that low-income, low-skilled people who used the programs generally fared better at finding and keeping good jobs, compared with those who did not participate in the programs.

Sector employment programs go beyond mere job-training programs, in that they concentrate their skills training within specific occupational sectors, such as construction, computer repair, or health care.

Findings of Study

The PPV study, entitled Tuning into Local Labor Markets, evaluated three sector employment programs — one each in Milwaukee, Boston, and New York City.

PPV charted the progress of nearly 1,300 study participants for two years. Half of them used one of the three sector employment programs, while the other half — the control group — did not.

Compared with the control group, participants in the sector employment programs:

• earned significantly more money;
• worked significantly more hours;
• found work more consistently; and
• were more likely to work at a job that included benefits, such as health insurance and paid time off.

Implications for Direct-Care Workforce

Sector employment programs that include health care components can be a boon to aspiring direct-care workers, the study shows.

For example, one of the three sector employment programs included in PPV’s study — the Milwaukee-based Wisconsin Regional Training Partnership — includes a health care track. Program participants trained within this track were “significantly more likely” to earn their certified nursing assistant (CNA) certification than members of the control group, the PPV study found.

PHI has long been considered a national example of sectoral employment strategies targeted to the direct-care workforce. PHI’s affiliates, Cooperative Home Care Associates of the South Bronx and Home Care Associates of Philadelphia, have modeled this type of sectoral training for more than 20 years, and together annually enroll more than 500 training participants.

“This PPV study used the ‘gold standard’ of social research — randomized control — to prove that sectoral employment strategies create measurable financial benefits for low-wage workers,” noted Steven Dawson, president of PHI.

“The timing of its release is exceptionally important, given the country’s desperate need to help low-income workers find solid employment. It is a strong rebuttal to those in Washington, D.C. policy circles who have long claimed that ‘training doesn’t work.’

“Yet, training focused on a particular occupation is only one half of an effective sectoral strategy,” added Dawson. “The other half is strengthening the employment practices of that sector’s employers — from improved supervision and peer mentoring, to better compensation and career ladder development.”

– by Matthew Ozga