People in America’s low-wage jobs, many of whom are Black and Brown and live in under-resourced communities, were already facing the economic threats posed by automation and a changing labor economy. Then came Covid-19. Laura D’Alessandro, director of LISC’s Financial Health programs, explores how the pandemic and resulting massive job losses have accelerated those shifts, and describes what is being done to support workers—and pave the way to recovery—in the midst of the crisis
The pandemic has laid bare many truths about our country’s racial health and wealth gaps, and gaping inequities in work and employment are at the top of the list. Low-wage workers, and employees who are already economically vulnerable, are by far the most susceptible to sudden shifts in the economy and job market, and have the fewest resources to cushion the blow if employment disappears. As business in food service, hospitality and retail has dried up, employees in those sectors, largely people of color from under-resourced communities, are among the hardest hit.
Even before COVID-19 began ravaging sectors of our economy, market and workforce experts predicted that at least 40 percent of the country’s workers would need to reskill by 2030 in order to keep pace with automation and other technological transformations that displace human employees. The pandemic has sped up that timetable by nearly a decade. And it’s becoming increasingly clear that many jobs, especially those involving significant social interaction, won’t return any time soon—as many as 42 percent, according to Brookings, may be gone for good. Again, that leaves behind a workforce that is predominantly Black, Latinx, and female.
These challenges, which impact tens of millions of American families and destabilize the economy as a whole, do seem overwhelming. But with thoughtful, intentional effort we can surmount them. In spite of daunting hurdles, we have seen how staff at the 100-plus Financial Opportunity Center® (FOC) sites and Bridges to Career Opportunities programs (Bridges) we support have been working around the clock to meet the immediate needs of their clients (76% of whom are people of color, 60 percent are female, and 61 percent hold a high school diploma/equivalency or less). They have pivoted job readiness programs, reorienting them toward growth industries and local employers’ skill demands, and rapidly transitioned training to online instruction. That, in addition to providing emergency cash grants to people who’ve been laid off, as well as rental, childcare and unemployment assistance.
Even when COVID no longer has the world in its grip, we will need to be strategic in paving the way for low-wage workers to get from A—any job—to C—the kind of fulfilling and life-sustaining career that also contributes to a healthy economy and society.
To tackle the current employment crisis and prepare for the future, Bridges are identifying expanding industries that promise employment stability and room for growth. And based on those findings, they are restructuring training pathways to help people skill up to take those jobs. The front-runners across the country include transportation, distribution and logistics (TDL), health care and certain types of manufacturing such as machining and welding.
Some of our FOC and Bridges clients, in fact, are already positioned in those growth industries and are connecting clients to these jobs. We have seen positive outcomes for many of our working clients – during this difficult time more than a thousand clients have seen their credit scores increase as a result and we have heard stories of working participants who have additional income due to increased hours or hazard pay. On the other hand, those who have been laid off from troubled industries or who left work to safeguard their and their family’s health are struggling just to get food on the table and keep a roof over their head.
The COVID stay-at-home economy, not surprisingly, has dovetailed with the long-established trend toward ecommerce. So loading, stocking and delivery, all of which are in high demand because of ecommerce, have created some openings for displaced workers whose immediate need is re-employment. A retail clerk whose store closed can get hired by a distribution center. A pivot into a TDL job can mean anything from driving for a food delivery app, to driving for UPS, at $21 an hour with benefits.
Some of those jobs clearly fall into the “A” category of what we call the ABCs of employment pathways: “Any job, Better job, Career.” In a crisis, re-employment—in any job—may be the most important goal.
In some cases, the programs we partner with have been able to shift gears, helping clients take transferrable skills they were honing to work in an industry that has faltered to one that is robust, like health care. In Philadelphia, for example, clients in a culinary pathway with a Bridges program we support through District 1199, the health care workers union, were preparing for jobs in concessions with a local sports arena. When the arena closed, the program immediately pivoted to help those students prepare to work as dietary aides in nursing homes or health centers.
Of course, to move clients from A to the Bs and Cs of employment should be our ultimate goal, as an organization and as a society. To that end, we are developing longer and deeper pathways that can launch people from entry-level positions in health care to career-oriented jobs with better wages and room for advancement, as licensed practical nurses (LPNs) or licensed vocational nurses (LVNs). The Bureau of Labor Statistics predicts those jobs will grow in demand by 9 percent by 2029—and that outlook is based on the aging of the U.S. population. COVID and its aftermath will only increase demand.
Delivering training in a way that is equitable must also be at the forefront of our workforce efforts. After the initial pandemic shutdown in March, nearly all in-person training programs shut down, too. This is where the ingenuity and commitment of our FOC and Bridges partners has really shined: knowing that many clients lack robust technical skills or adequate access to computers and a reliable broadband connection, some of our partners moved training to Facebook LIVE, a platform most clients were familiar with and could easily connect to on their phones. As time went by, they began transitioning to more formal online learning systems, but the smartphone stop-gap was a lifesaver, and speaks to the imperative of inclusion and innovation in job training for a post-COVID economy. Other centers have distributed tablets and portable hotspot devices to their clients in need.
Addressing the broader needs of trainees is imperative and this is where federal policy must play a role. COVID has wiped out the savings of so many Americans, leaving them unable to meet their basic necessities like food, rent and utilities. The time is now for real and sustained support, either through expanded and continued pandemic unemployment benefits or targeted, monthly stimulus payments reaching those most-impacted by job loss. Direct cash transfers give people a cushion that allows them to attend training in in-demand sectors such as healthcare and thereby preparing the nation for a real and sustained recovery.
LISC’s funders understand the need for immediate support – the Wells Fargo Foundation invested in direct cash assistance to LISC clients while the Citi Foundation ensured that existing clients of the Bridges to Career Opportunities training programs have the supports to continue pursuing their long-term career goals. That kind of intentional investment, combined with smart policy at all levels of government, will also help ensure that training is offered equitably—so people can make that next step in their economic lives. Even when COVID no longer has the world in its grip, we will need to be strategic in paving the way for low-wage workers to get from A—any job—to C—the kind of fulfilling and life-sustaining career that also contributes to a healthy economy and society.
ABOUT THE AUTHOR
Laura D'Alessandro, Director of LISC Financial Health
Laura provides technical assistance and support to LISC’s network of over 100 Financial Opportunity Centers. Prior to coming to LISC, she worked with Helen Keller International and has a breadth of experience in program design, non-profit financing and grants management. Laura has a special interest in integrating asset building programs with workforce development initiatives and manages LISC’s Twin Accounts credit-building and savings program. She holds a B.A. from the University of Washington and a master’s in public administration from New York University.