Ready to work, right out of high school

Ready to work, right out of high school

Georgia’s public-school teachers should be proud of the work they’ve done to raise graduation rates in our state. Since 2011, graduation rates have increased by more than 14 percent, with 81.6 percent of the class of 2018 graduating. It’s an improvement that has moved Georgia, mercifully, out of the bottom tier of states. This is no small achievement and marks a dramatic improvement in the opportunities and prospects for the students who would not have graduated otherwise.

But graduating high school is not enough to ensure that our students succeed as they launch into the critical first years of their adult life. While college attendance is an important next step for many Georgia students, it’s not the route that most take.

According to a recent study from the University of Pennsylvania, only 31 percent of 18-24-year-olds in Georgia are in college. Of those who do attend college, completion isn’t guaranteed. According to research from the Georgia Governor’s Office for Student Achievement, only 27 percent of the class of 2012 (the most recent year available) had a bachelor’s degree, associate’s degree, or certificate five years after graduating from high school.

And then there’s the large number of young adults in the state who are still trying to find their way years after high school. According to the Annie E. Casey Foundation, in 2017 Georgia had 123,000 young adults aged 20-24 who were neither in school nor working. That’s nearly one in five people in that age group.

So, if nearly 70 percent of students are not going to college and a very high percentage are still floundering into their early 20s, what’s the solution for helping them find a path to a rewarding, self-supporting career?

An important answer, according to Dr. Robert Lerman of the Urban Institute, is apprenticeships—where students start working while high school juniors and seniors in fields that lead to credentials and, importantly, careers immediately after graduation. Dr. Lerman’s work researching apprenticeships spans decades and covers most of the globe. His research has shown that apprenticing is one of (if not the most) effective way to ensure that students who are not college bound find their way into a well-paying, sustainable career.

In the last two years, GCO has worked with Dr. Lerman to research the role of apprenticeships in Georgia and to provide recommendations on how to expand an already well-structured program into one that meets student demand.

Dr. Lerman’s most recent report, released just this week, focuses on Georgia’s Youth Apprenticeship program, created in the mid 1990s with fewer than 400 student participants. Today, the program has grown to more than 3,000 students in nearly 350 schools across the state. State funding of the program is relatively modest at $3 million annually and mostly funds program coordinators who oversee student participation and work to attract businesses to offer apprenticeship opportunities.

According to the report, demand for apprenticeships of this kind is high in Georgia. Dr. Lerman has estimated elsewhere that Georgia needs nearly 100,000 apprenticeships in order to meet that demand. Why hasn’t apprenticeship availability kept pace with student demand, according to Dr. Lerman? Based on interviews and surveys of program coordinators, the primary answer is that companies are skittish to offer jobs to high school students. This is due to the fear of liability for such young workers and related costs.

But, according to Dr. Lerman, these fears are largely unfounded and based on inaccurate assumptions about what the law requires and the cost of hiring younger workers. He cites Southwire as a prime example of a company that has successfully embraced apprenticeships since the 1990s and now employs more than 300 students. And Southwire has intentionally sought out students who are known to be at risk of falling into poverty and suffering from related issues, complexities not faced by the majority of students who would seek apprenticeship opportunities.

For the companies that are currently providing apprenticeships, Dr. Lerman points to regular reports of high levels of satisfaction (more than 90 percent) as a reason to be optimistic that, with accurate information and an opportunity to participate, more companies can be convinced to join the effort.

And, at GCO, we believe now is the perfect time to expand apprenticeships in Georgia. As the chart below demonstrates, the job market is tight in a way that hasn’t been seen for nearly two decades, with more job openings than job seekers. Surely now is the time to scale up apprenticeships to create a pathway from high school to work for those hundreds of thousands of students and young adults in our state who are not college-bound but are full of potential and have great things to offer to any company willing to take a chance on them. We owe it to them to make it happen.   

Strategies to reignite the power of work

Strategies to reignite the power of work

The economy is booming: Employment is at record-breaking levels, and income and wages are finally rising again. Yet something is missing. Despite all the positive economic news, a significant percent of Georgians (and Americans broadly) have been left behind.

This group of the economically lost and destitute is the subject of a new book called The Once and Future Worker: A Vision for the Renewal of Work in America, written by Oren Cass, a think tanker and former advisor to Mitt Romney. Cass includes a number of viable solutions to America’s workforce woes in his book.

We know the unfortunate numbers: Even though gross domestic product tripled between 1975 and 2015, median wages haven’t budged. During that same time, government spending on the social safety net quadrupled. Even though our economy as a whole is more productive, many Americans haven’t seen a real rise in wages, while many others have fallen into the social-safety-net system.

This has created a type of society where many people have access to iPhones and other electronic devices once considered luxuries, but fewer and fewer have access to fruitful work, a good education, and a healthy family life. As Cass puts it, during the past few decades, “Cheap goods and plentiful transfer payments ensured that nearly all Americans could afford cable television and air conditioning, but not that they could build fulfilling lives around productive work, strong families, and healthy communities.”

Cass makes a number of recommendations to ameliorate the problem, several of which dovetail with policy prescriptions from the Georgia Center for Opportunity (GCO).

One of them is to emphasize alternative pathways to work aside from the traditional college route. The fact of the matter is that attempting universal college completion for all is an unrealistic goal—even though Millennials are the most college-educated generation in history, only 40 percent of them have college degrees. Looking across all generations now alive, the vast majority of Georgians lack a four-year (or higher) college degree. Doesn’t it make sense that we should tailor more training solutions to this majority?

For a solution, Cass suggests the reintroduction of “tracking” into our educational lexicon, where one pathway leads toward college enrollment and another “toward occupational training that leaves a twenty-year-old with serious work experience, a marketable skill, and $30,000 in a savings account.” That is a far more favorable outcome than the reality too often true for Millennials today: burdensome student loan debt with a college credential that increasingly lacks labor-market value. GCO invests in these types of pathways through our apprenticeships emphasis.

Welfare reform in Georgia poised to gain ground

Welfare reform in Georgia poised to gain ground

We know that people do better in life when they experience the benefits of meaningful work and healthy relationships. But we also know that so many cultural forces are stacked against success in these two areas. One of the biggest is the American welfare system, which keeps people trapped in cycles of dependence while reducing incentives to climb the economic ladder or form stable relationships.

That’s why the Georgia Center for Opportunity has been on the vanguard of work-focused welfare reform that gives a hand-up to struggling people while preserving the social safety net for those who truly need it. The great news is that we’re seeing growing momentum—both at the state and national level—to make these reforms a reality.

Georgia lawmakers are poised to consider legislation in the General Assembly to take significant steps on welfare reform—what we call the “right to strive”—while nationally we are seeking waivers to expedite the reform package at the state level. In recent months, we’ve presented our welfare research to Georgia’s Rural Economic Development Committee, created by former Gov. Nathan Deal and the legislature to help rural Georgia communities become more competitive economically. The committee was already well aware of the damage caused by welfare cliffs in the lives of individuals and businesses, so they were very welcoming of our input. We’ve also met with policymakers in Washington, D.C., on our welfare reform proposals.

The changes can’t come soon enough. Although the Georgia economy is booming with a historic 3.6% unemployment rate, these trendlines obscure a hidden workforce crisis: Millions of Americans aren’t counted in the official unemployment rate because they’ve simply given up looking for work. A crucial step in the right direction for these non-working individuals is to create a welfare system that helps—rather than hinders—their connection to meaningful work.

The most important changes in our proposal are to reduce welfare “cliffs,” a scenario where benefit drop-offs unfairly punish workers for earning more and moving up the economic ladder. Secondly, our proposals eliminate the marriage penalty that encourages single parenthood.

A big step to accomplish this is by consolidating the major 15 welfare programs hosted by federal, state, and local agencies into five coordinated programs, headed by a sole lead agency. In the end, our reforms stabilize the safety net for those who truly need it, adopt a “work first” approach for those who are able, and create incentives to form marriages and households.

We’re optimistic that we will soon see work- and family-focused “right-to-strive” reforms in Georgia. Interested in learning more? Don’t miss our three-part series of reports on welfare reform: Part 1, part 2, and part 3.

One of the best ways to escape poverty: Full-time work

One of the best ways to escape poverty: Full-time work

It may surprise you to learn that data from the U.S. Census data show that just 2.4 percent of those who work full-time year-round live in poverty. In contrast, 14 percent of those who did work—but not full-time, and not year-round—were in poverty, and fully 32 percent of those who did not work at all lived in poverty.

Surprisingly, these numbers are nothing new. Economist Lawrence Mead noted in his book From Prophesy to Charity: How to Help the Poor that the poverty rate in 2009 for those who worked at least a 35-hour work week for 50 weeks of the year was just 3 percent. Mead summarizes: “The lion’s share of adult poverty is due, at least in the first instance, to low working levels.”

Clearly, the key to escaping poverty isn’t merely raising wages, as important as that might be. It’s full-time (or close to full-time) work. And one of the key ways to help our neighbors escape poverty is straightforward and simple: help them get job training, land a stable job, and advance into higher paying positions over time.

To this end, we are proud of the impressive results flowing out of our workforce initiative, Hiring Well, Doing Good (HWDG). By breaking down the key barriers to full-time employment—lack of education and job skills—HWDG connects local employers and community leaders with job seekers to provide valuable training that leads to stable, good paying jobs that lift people out of poverty and break the cycle of generational poverty and government dependency.

We believe that the best solutions to problems are at the local level. And we believe that the reason HWDG is the most effective job placement program in Georgia is because it moves beyond political grandstanding and offers a real solution to the core problem—the need for sustainable jobs.

In our booming economy, there’s little reason for those who want to work to remain mired in poverty. Job initiatives like HWDG give motivated individuals a second chance and much-needed on-the-job training to get a solid job that leads to a life of dignity and thriving.

A Photo Journey through Breakthrough

A Photo Journey through Breakthrough

On December 5th, some of the nation’s most innovative researchers, policy experts, and community-based practitioners lead a series of discussions at Mercedes-Benz Stadium on solutions that are unlocking human potential in Georgia and around the country, enabling individuals and families to flourish.

Georgia is at a crossroads. We are enjoying the rewards of a growing economy and vibrant communities that make Georgia one of the country’s most popular places to do business and raise a family. However, hundreds of thousands of seemingly invisible men, women, and children are facing barriers that prevent them from achieving their dreams and reaching their potential, including the stain of a criminal record, being trapped in a welfare system that discourages work and family formation, and being ill-prepared for work or college as a student. The challenges are multi-dimensional and pose threats not just to individual well-being, but also to continued economic growth, opportunity, and mobility.

 

 

 

GCO takes over the Mercedes-Benz Stadium with Breakthrough!

Dr. Robert Lerman, Institute Fellow in the Center on Labor, Human Services, and Population at the Urban Institute discusses innovative measures to educate today’s students and the positive results they garner.

Jamie Lord leads the conversation about Education to What Degree: The Promise of Education Innovation with special guest interview Jack Harris, President of Junior Achievement, and panelists Ben Scafidi, Director of the Education Economics Center; Tyler Thigpen, Co-Founder and Head of School at the Forest School; Anthony Flynn, Executive Director and COO of 100 Black Men of Atlanta;  Dr. Robert Lerman, Institute Fellow in the Center on Labor, Human Services, and Population at the Urban Institute.

Randy Hicks and Bellhops CEO Luke Marklin talk about the importance of dedicated employees and creating an atmosphere of loyalty. 

GCO’s Joyce Whitted leads the panel discussion on Healthy Families: Incubators of the Next Generation, with Brian Amero, Henry County Superior Court Judge; Julie Baumgardner, President and CEO of First Things First; Brad Wilcox, Director of the National Marriage Project at the University of Virginia; and Erin Norman, Senior Solutions Consultant at Heart+Mind Strategies

The Delta SkyClub at Mercedes-Benz Stadium never looked so good. 

Anthony Flynn, Executive Director and COO of 100 Black Men of Atlanta chats about the importance of educational choice for students to have every opportunity to succeed. 

It was wonderful to have such a great group of sponsors in attendance at Breakthrough. We really enjoyed the time with our friends and the opportunity to make new ones. 

GCO’s Bill Rogers leads the panelist in the conversation about “Business! Mankind was my Business.”: How Some Georgia Companies are Bringing Solutions and Hope to Disadvantaged Communities with panelists Greg Beadles, COO, AMB Sports and Entertainment; Chris Clark, President and CEO of Georgia Chamber of Commerce; Rodney Bullard, Vice President of Corporate Social Responsibility at Chick-Fil-A and Executive Director of the Chick-Fil-A Foundation.

Eric Cochling and panelists Dave Derocher, Managing Director of The Other Side Academy; Stacey Howell, Executive Director of Every Woman Works; Phillip Hunter, Executive Director of Georgia Works!; and Lloyd Martin, VP of Manufacturing and IT for CKS Packaging, Inc., discuss A Bolder Bottom Line: Work as the Most Effective Antipoverty Intervention and exactly what that looks like for their businesses. 

New Study on Black Men Shows Improvement in Achieving American Dream

New Study on Black Men Shows Improvement in Achieving American Dream

There’s an old saying that a rising tide lifts all boats. This seems to be true in today’s booming economy—with low unemployment rates at the state and national levels translating into historical lows in communities that often lag behind. For example, economic fortunes for African Americans are showing sustained signs of improvement, with the most recent June 2018 unemployment rate coming in at 6.5 percent, up slightly from May’s all-time low of 5.9 percent.

And while improving employment prospects are certainly encouraging signs for a community that continues to experience unacceptably disparities on most socioeconomic measures compared to other groups, a new study from the American Enterprise Institute (AEI) offers even more evidence that African American men are making steady gains toward achieving the American Dream.

In Black Men Making It in America: The Engines of Economic Success for Black Men in America, well-known marriage and family researchers Brad Wilcox and Wendy Wang team up with fatherhood expert Ronald Mincy to examine the institutional engines that form the foundation for black male success.

Some key takeaways from this AEI report:

  • The economic standing of black men has improved dramatically, with 57% now in the middle class or higher as adults today—up from 38% in 1960. Even better, the share of black men who are poor has fallen from 41% in 1960 to 18% in 2016.
  • While higher education and full-time work are powerful engines of success for black men in America, so, too, is participation in institutions such as marriage, church, and the military.
  • Contact with the criminal justice system remains a significant obstacle to success for black men. By midlife, only 28% of black men who had contact with the criminal justice system when they were young have moved into the middle or upper class, compared to 52% of black men who had no contact with the criminal justice system at a younger age.

Here at Georgia Center for Opportunity, we believe in a simple concept called the “success sequence,” which says that a good education leads to a stable job—which in turn leads to a flourishing home life and personal success.

Clearly, this AEI report reinforces GCO programs like Hiring Well, Doing Good and our Prisoner Reentry Initiative, which aim to remove barriers to opportunity and put Georgians back on a rising tide—or sequence—of success that lifts individuals, then families, out of generational poverty into flourishing communities.