jobstart summary
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2
Acknowledgements
Thisevaluation,conductedbytheSocialIMPACTResearchCenter,wascommissionedbythe
2016FundforChicagoNeighborhoods.
ChicagoNeighborhoodJobStartgranteeprogramdirectors,staff,andparticipants,2016Fund
contributors,keyprojectpartners,and2016Fundstaffwereallgenerouswiththeirtimeand
information,allowingIMPACTtoevaluatetheJobStartinitiativealongmanydimensions.
PrimaryAuthor:
Jonah
Kushner
EvaluationTeam:JonahKushner,AmyRynell,AmyTerpstra,AndrewHull,LindyCarrow,Ian
Mobley,JeffreyFiore,andNicoleJuppe.
SuggestedCitation:Kushner,J.(2012,January).ChicagoNeighborhoodJobStartevaluation
report:Atransitionaljobsresponsetothegreatrecession.Chicago:SocialIMPACTResearch
Center.
Thefullevaluationreportisavailableatwww.heartlandalliance.org/research.
TheSocialIMPACTResearchCenter(IMPACT)investigatestodaysmostpressingsocialissuesandsolutionsto
informandequipthoseworkingtowardajustglobalsociety.IMPACT,aprogramofthenonprofitHeartland
Alliancefor
Human
Needs
&
Human
Rights,
provides
research,
policy
analysis,
consulting,
technical
assistance,
communications,andcoalitionbuildingtoprojectsinIllinois,theMidwest,andnationally.Visit
www.heartlandalliance.org/researchtolearnmore.
33W.GrandAvenue,Suite500|Chicago,IL60654|312.870.4949|[email protected]
Copyright2012bytheSocialIMPACTResearchCenteratHeartlandAlliance
Allrightsreserved
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Table of Contents
Overview 2
Methodology 4
Background 5
NeighborhoodsandParticipants 9
Implementation 11
Outcomes 18
EconomicStimulus 18
ParticipantIncomeandEmployability 20
TransitionalJobsandUnsubsidizedPlacement 21
StakeholderSatisfaction 22
Comparisonwith
Put
Illinois
to
Work
24
Successes,Challenges,andRecommendations 26
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Overview
ThisbriefsummarizestheresultsofanevaluationofChicagoNeighborhoodJobStart,aprogramthat
soughttoplace2,200lowincomeresidentsofhistoricallyhighunemploymentneighborhoodsinto
temporaryjobs
with
local
employers.
The
program
operated
for
approximately
4months
between
June
andSeptember30,2010,usingacombinationofpublicfundingfromtheAmericanRecoveryand
ReinvestmentAct(ARRA)andprivatefundingfromthe2016FundforChicagoNeighborhoods.
JobStartsubsidizedwageandpayrollcostsfortheparticipantsitplacedintotemporaryjobsand
providedcasemanagementandsupportiveservicestohelpparticipantsmaintainemployment.The
programwasintendedtoaccomplishthreeobjectives:
1. Helpparticipantsweatherthelingeringeffectsofthe2007recessionbyprovidingemploymentandincome.
2. Improvetheemployabilityofparticipantsbyprovidingthemwithopportunitiestolearnhowtoworkinsupportiveenvironments.
3. Helpparticipantsgainpermanentemployment.Successes
Withinashortperiodoftime,JobStartrecruitedandtrainedalargenumberofparticipantsandplaced
themintotransitionaljobs.Participantshadapronouncedneedforearnedincome,andsurveyresults
suggestthatlargeproportionsofparticipantshadbarrierstoemployment.
1,618participantscompletedjobreadinesstraining,andgranteesplaced1,518(93.8percent)oftheseparticipantsintotransitionaljobs.
Theaverageparticipantreportedhouseholdincomeof$760uponenteringJobStart,implyingthat
the
typical
participant
lived
well
below
poverty
at
the
time
he
or
she
entered
JobStart.
Commonlyreportedbarrierstoemploymentincludedlackofoveralljobskillsandinterpersonalskills,criminalrecords,andunmetneedsfortransportationandchildcare.
Theaverageparticipantearnedsubstantialincomerelativetohisorherhouseholdincome,andsurvey
resultssuggestthatparticipantssoftskillsimprovedduringtheirtransitionaljobs:
Onaverage,eachadultprogramparticipantworked9.1weeks,or87.6percentofthe10.4weeksavailablegivenhisorherstartdate.Averagemonthlyincomeearnedbyadultprogram
participantswastwicetheiraveragehouseholdincomeuponenteringJobStart.
Amongparticipantswhorespondedtoanevaluationsurvey,77.2percentreportedthatJobStartallowed
them
to
support
their
families
or
pay
their
bills
and
62.8
percent
reported
that
without
JobStarttheywouldlikelyhavebeenunemployed.
AmongJobStartemployerswhorespondedtoanevaluationsurvey,thepercentagewhoratedparticipantsunfavorablyonsixsoftskillsatthebeginningoftheprogramdecreasedattheend
ofthetransitionaljob,whilethepercentagewhoratedparticipantsfavorablyincreased.
SurveyresultsandeconomicimpactanalysissuggestthatJobStartbenefitedemployersintheprogram
andotherbusinessesandtheiremployeesthroughoutCookCounty:
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AmongJobStartemployerswhorespondedtoanevaluationsurvey,themajorityreportedthatemployingJobStartparticipantsresultedinmoderatepositiveeffectsonbusinessperformance.
Assumingthatparticipantsspent70percentofincomeearnedthroughJobStartintheretailsectorofCookCounty,JobStartwageswereassociatedwitha$5.1millionincreaseindemand
forgoodsandservicesacrossallsectors,a$1.2millionincreaseinhouseholdearnings,andan
increasein
employment
of
44
jobs
across
Cook
County.
Theoverwhelmingmajorityofparticipantsandemployerswhorespondedtoasurveyabouttheir
participationinJobStartreportedthattheywouldparticipateinJobStartorasimilarprogramagain.
Challenges
JobStartplacedfewerparticipantsintotransitionaljobsthanplanned.Additionally,programrecords
fromimmediatelyafterJobStartendedindicatethatitdidnotmeetitsgoalfornumberofadult
participantsplacedintounsubsidizedemployment,education,ortrainingbythetimetheprogram
ended.SevenprimaryfactorsappeartoexplainwhyJobStartdidnotmeetallofitsgoals:
1. ThefederalfundsusedforJobStarthadtobespentbySeptember30,2010.Thisfact,combinedwiththerelativelylatetimingofIllinoisapplicationforthefunds,leftgranteeswithlessthanamonthtosetuptheirJobStartprogramsinordertoprovideparticipantswiththemaximum16
weeksoftransitionalemploymentpossible.
2. Therequirementthatgranteesrecruitparticipantsexclusivelyfrom13communityareasimpededtheirabilitytomeetJobStartstransitionaljobplacementgoal.
3. ContemporaneousoperationofJobStartandalargersubsidizedemploymentprogram,PutIllinoistoWork,appearstohavecausedsomeconfusionandcompetitionforemployers.
4. JobStartreliedheavilyonrelativelysmallforprofitandnonprofitemployersfortransitionaljobs.Suchemployerswerelesslikelytohireparticipantspermanently.
5. Absenceoffundingforjobplacementandretentionafterthetransitionaljobsendedappearstohaveimpededunsubsidizedplacement.
6. EconomicconditionsacrossIllinoisandtheUnitedStatesmayhaveimpededplacementofJobStartparticipantsintounsubsidizedjobs.
7. Finally,placementdatafromprogramrecordslikelyunderrepresentthepercentageofadultparticipantswhofoundemploymentafterJobStartended.
Theevaluationindicatesthatsubsidizedemploymentmaybeapromisingresponsetoeconomic
downturnsandaneffectivemeansofengagingdisadvantagedyouthandlowincome,noncustodial
males.Giveninstitutionalleadership,experiencedproviders,andadequatefunding,abeneficial
transitionaljobs
program
can
be
implemented
within
ashort
timeframe.
Theevaluationuseddiversesourcesofinformationtoinvestigatethecircumstancesthatmotivateda
groupofphilanthropicfunders,nonprofitorganizations,andpublicagenciestocreatetheJobStart
programusingARRAfunding;examinethecharacteristicsofJobStartparticipantsandtheir
neighborhoods;understandhowprogramprovidersimplementedtheJobStartprogramdesign;and
exploreprogramoutcomesforparticipantsandemployers.Basedonfindingsintheseareas,the
evaluationreportsetsforthrecommendationsforfuturetransitionaljobsprograms.
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Methodology
TheJobStartevaluationwasdesignedtoanswerfourresearchquestions:
Theevaluationreportsummarizedbythisbriefaddressesthefirstthreequestions.TheSocialIMPACT
ResearchCenterplanstoanalyzeprogramimpactsinafuturereport.Thefollowingsourceswereusedin
thereport.PleaserefertoAppendixAofthefullreportforadetaileddescriptionofevaluation
methodology.
Programdocuments:Tounderstandprogramdesign,theCommunityServicesAgreement(CSA)betweenIDHSandthe2016FundandtheJobStartProceduralManualdevelopedbythe2016
Fundwerereviewed.Thesedocumentsdescribetheservicesthatgranteeswererequiredto
provideand
were
incorporated
into
grant
agreements
between
the
2016
Fund
and
its
grantees.
Programrecords:DataonthepersonalandhouseholdcharacteristicsofJobStartparticipantsweredrawnfromJobStarteligibilitydocumentationthatgranteeswererequiredtocollect.
Interviews:TounderstandthecircumstancesthatledtothecreationofJobStartandshapeditsdesignandimplementation,representativesofkeyorganizationsinvolvedinthedesign,
administration,andfundingofJobStartwereinterviewed.Tounderstandeachgrantees
experienceimplementingJobStart,allgranteeprojectdirectorswereinterviewed.
GranteeStaffSurveyandProjectDirectorSurvey:TounderstandimplementationofeachgranteesJobStartprogram,separatesurveysweresenttoJobStartprojectdirectorsandstaff
whoworkeddirectlywithJobStartparticipantsandemployersateachagency.Allproject
directorsresponded
to
the
Project
Director
Survey,
and
80
of
103
staff
who
were
still
employed
atthegranteesafterJobStartendedrespondedtotheGranteeStaffSurvey.
ParticipantSurvey:Dataonparticipantsemploymenthistory,barrierstoemployment,andsatisfactionwithJobStartweredrawnfromresponsestoa36questionsurveysenttoall
participants.Ofallsurveyssent,238useableresponseswerereceived.Becausethenumberof
responsesconstitutesarelativelysmallproportionofall1,618participants,cautionmustbe
usedingeneralizingaboutthecharacteristicsandexperiencesofallparticipantsfromsurvey
responses.MarginsoferrorareavailablefromtheSocialIMPACTResearchCenteruponrequest.
EmployerSurvey:DataonthecharacteristicsofJobStartemployers,theirassessmentsofparticipantprogress,andtheirsatisfactionwithJobStartarefromresponsestoa35question
surveysent
to
all
employers.
Of
all
surveys
sent,
77
useable
responses
were
received.
Because
thenumberofresponsesconstitutesarelativelysmallproportionofall268JobStartemployers,
cautionmustbeusedingeneralizingaboutallemployersfromsurveyresponses.Marginsof
errorareavailablefromtheSocialIMPACTResearchCenteruponrequest.
EconomicActivityAnalysis:EconomicactivityacrossCookCountyassociatedwithJobStartwasestimatedusingeconomicmultiplierscreatedbytheU.S.DepartmentofCommerce,Bureauof
EconomicAnalysisusingitsRegionalInputOutputModelingSystem(RIMSII).Researchonthe
spendingbehavioroflowincomehouseholdswasalsousedtoestimateeconomicactivity.
1.HowwasJobStartdesigned?
2.HowwasJobStartimplemented?
3.WhatwereJobStart'soutcomes?
4.WhatwereJobStart'simpacts?
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Background
CircumstancesthatledtothecreationofJobStartincludedtherecessionthatbeganinDecember2007,
ChicagosOlympicbid,andpriorworkforceandcommunitydevelopmenteffortsundertakenbyagroup
ofChicago
area
philanthropic
funders,
nonprofit
organizations,
and
public
agencies.
NationalContext
TherecessionthatbeganinDecember2007providedtheimpetusfortheAmericanReinvestmentand
RecoveryAct(ARRA),thesourceoffundingforJobStartandscoresofothersubsidizedemploymentand
transitionaljobsprogramsacrosstheUnitedStates.Thisrecessionprovedtobethelongestandmost
severesincetheGreatDepressionevenafteritendedinJune2009,unemploymentcontinuedto
worsen,peakingat10.1percentinOctober2009.1Therecessionexacerbatedunemploymentamong
minorities,individualswithloweducationalattainment,andyouthevenmoreseverely:unemployment
peakedat16.5percentforAfricanAmericans,15.7percentforindividualswithlessthanahighschool
degree,and19.5percentforindividualsage16to24withintheyearfollowingtherecessionsend.
ARRAincludeda$5billionfundtohelpstatescoverthecostofincreasedspendingonTemporary
AssistancetoNeedyFamilies(TANF)resultingfromtherecession.2CalledtheTANFEmergency
ContingencyFund(TANFEF),itreimbursedapprovedstatesfor80percentoftheirincreasedspending
onthreetypesofTANFfundedbenefitsandservices:(1)basicassistance,(2)nonrecurrent,shortterm
benefits,and(3)programsthatcreatejobsforneedyparentsbysubsidizingtheirwages(subsidized
employmentprograms).Importantly,increasedspendingonsubsidizedemploymentprogramshadto
occurbeforeSeptember30,2010,inordertoqualifyforreimbursementfromtheTANFEF.
UnderTANF,statesmayserveavarietyoflowincomeindividualsthroughsubsidizedemployment,
includingcustodialparentsorotheradultcaretakers,noncustodialparents,andyouthlivingwith
custodialparents
or
other
adult
caretakers.
A
remarkable
expansion
of
subsidized
employment
programsfollowedtheenactmentofARRAandtheestablishmentoftheTANFEF.3 Illinoiscreatedthree
subsidizedemploymentprogramswithTANFEFfunding:PutIllinoistoWork(PITW),thatplacedover
27,000adultsintosubsidizedjobsstatewide;YouthEmploymentfortheSummer(YES),whichplaced
2,586youthintosubsidizedjobsinChicago;andJobStart,whichplaced1,030adultsand488youthinto
transitionaljobsinChicago.UnlikePITWandYES,JobStartwasdesignedtoprovidesupportiveservices
andusedprivatefundingtodrawdownTANFEFfundsfortheseservices.
JobStartandPutIllinoistoWork
InJanuary2008,Chicagobidtohostthe2016OlympicGames.TheChicagoCommunityTrustandother
philanthropicfunders
formed
the
2016
Fund
for
Chicago
Neighborhoods
(2016
Fund)
to
help
Chicagos
southandwestsideneighborhoodsbenefitfroma2016OlympicGames.4The2016Fundraisednearly
1TheBusinessCycleDatingCommitteeoftheNationalBureauofEconomicResearchdefinesthemostrecentrecessionashavingbegunin
December2007andendedinJune2009.NationalBureauofEconomicResearch.(n.d.).USbusinesscycleexpansionsandcontractions.
RetrievedFebruary25,2011,fromhttp://www.nber.org/cycles.html2Enactedin1996,TANFreplacedAidtoFamilieswithDependentChildrenasAmericasprimarysourceofcashassistanceforlowincome
families.ItdramaticallyshiftedtheemphasisofAmericanwelfarepolicyfromprovidingcashassistancetomovingwelfarerecipientsintowork
byimposingworkrequirements onrecipientsoffederalassistanceandbylimitingreceiptoffederalassistancetonomorethan5years.3Pavetti,L.,Schott,L.,&LowerBasch,E.(2011February).Creatingsubsidizedemploymentopportunitiesforlowincomeparents:Thelegacyof
theTANFEmergencyFund.Washington,DC:CenteronBudgetandPolicyPriorities.(p.56).4ThefundersincludedtheBoeingCompany,TheChicagoCommunityTrust,theJoyceFoundation,theJohnD.andCatherineT.MacArthur
Foundation,theMcCormickFoundation,thePolkBros.Foundation,theWieboldtFoundation,theLloydA.FryFoundationandananonymousdonor.
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$5millionandgrantednearly$2milliontojobtraining,businessdevelopment,andcommunity
organizationsbeforetheInternationalOlympicCommitteerejectedChicagosbidinOctober2009.The
2016FundwouldlaterusetheremainingfundstoprovidetheprivatematchrequiredforJobStart.
Figure1:TimelineofKeyEvents
February2009 CongressenactstheAmericanRecoveryandReinvestmentAct(ARRA),whichincludestheTANFEmergencyContingencyFund(TANFEF).
March2009
April2009
May2009
June2009
July2009
August2009
September2009
October2009 Chicagosbidforthe2016Olympicsisrejected. MichelleSaddlerisappointedDirectoroftheIllinoisDepartmentofHumanServices(IDHS).
November2009
December2009 IDHSSecretaryMichelleSaddlerconvenesmeetingsonusingTANFEFfunding.
January2010 MeetingsonusingTANFEFfundingcontinue.
February2010GovernorQuinndirectsIDHStodevelopalargescalesubsidizedemploymentprogramusingTANFEF
funding.
March2010IDHSappliestouseTANFEFfundingforsubsidizedemploymentandtransitionaljobsprograms.TheU.S.
Department ofHealthandHumanServices(HHS)approvestheapplication.
April2010 The2016FundreleasesitsrequestforJobStartproposals.ProposalsaredueonApril30.
May2010 IDHSissuesadraftJobStartcommunityservicesagreement(CSA)tothe2016Fund. GranteesreceivenotificationthattheyhavebeenawardedJobStartgrants.
June2010
IDHSfinalizestheCSAwiththe2016Fund. The2016Fundissuesfinalgrantagreementstograntees. JobStartparticipantsmustbegintransitionaljobsbyJune14toworkthefull16weeksavailable.
July2010
August2010
September2010 AlltransitionaljobsendonSeptember30.
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InOctober2009,anewsecretarywasappointedtotheIllinoisDepartmentofHumanServices(IDHS).
ThenewadministrationwasinterestedinusingTANFEFfundingforsubsidizedemployment
programming.InFebruary2010,the2016Funddecidedtodevote$2.0milliontotheprogramin
Chicago.The$2.0millioncontribution,incombinationwithemployersupervisionvaluedat$2.6million,
leveraged$18.2millionfromtheTANFEFforatotalprogrambudgetof$22.8million.
InMarch2010,IDHSappliedandreceivedapprovalforTANFEFfundingfromtheU.S.DepartmentofHealthandHumanServices(HHS).ItsapplicationincludedplansforJobStartandforthelargescale
subsidizedemploymentprogramthatwouldbecomePITW.However,thefinalCommunityServices
Agreement(CSA)thatgrantedTANFEFfundingtothe2016FundandestablishedtheJobStartprogram
frameworkwasnotexecuteduntilJune7,onlyoneweekbeforethetargetdateforplacingparticipants
intosubsidizedemployment.Bythistime,somegranteeshadalreadystartedtheirJobStartprogramsin
ordertoaffordparticipantsthemaximumamountoftimeinsubsidizedemployment.
TherelativelyshorttimelinefromapprovalofTANFEFfundingtoJobStartimplementation,alongwith
lateexecutionoftheCSA,leftrelativelylittletimeforthe2016FundanditspartnerstoplanJobStart
andcommunicateitsrulesandprocedurestograntees.Moreover,the2016Fundcontinuedtoreceive
clarificationabout
implementing
the
CSA
from
IDHS
after
the
CSA
was
executed.
This
timeline
made
JobStartadministrationdifficultforthe2016Fundanditsgrantees.
SubsidizedandTransitionalJobs
Withtheobjectivesofusingtemporaryjobstoprovideimmediateworkandincometolowincome
Chicagoansand,simultaneously,ofimprovingtheirlongtermemployability,JobStartfitswithinthe
umbrellaofworkforceinterventionscalledsubsidizedemploymentprograms,andwithinthecategory
calledtransitionaljobs(TJ)programs.
Subsidizedemploymentprogramsfundthecreationoftemporaryjobsforindividualswhomightotherwisebeunemployed.
TJprogramscombinetimelimited,wagepayingjobswithsupportiveservicesintendedtohelpparticipantsmaintainsubsidizedemploymentandgainemploymentintheregularlabormarket.
TJprogramstargetindividualswithbarrierstoemployment,suchaslongtermwelfarereceipt,longtermunemployment,acriminalrecord,orhomelessness.Suchindividualsarebelieved
mostlikelytobenefitfromacombinationoftemporarypaidjobsandsupportiveservices.
TJprogramsmayimprovetheemployabilityofparticipantswithbarrierstoemploymentthroughmultipleavenues:
1. Participantsmaybestlearntoworkbyholdingapayingjobwheretheycanmakemistakes,receiveguidance,andimprovetheirperformance.Atransitionaljoballows
participantsto
perfect
critical
soft
skills
before
attempting
to
gain
and
hold
permanent
employmentintheregularlabormarket.
2. TJprogramparticipantsmayalsoacquirehardskills,suchasclericalandadministrativeskills,proficiencywithcomputers,orvocationalskillsthatincreasetheiremployabilityinthe
regularlabormarket.
3. Theearnedincomeprovidedbyatransitionaljobmayhelpparticipantsmeetbasicneedsduringtheinprogramperiod,providingstabilityandimprovingskillacquisition.
4. Atransitionaljobmayenableparticipantstoestablishanemploymentrecordandemployerreferences,whicharecriticaltoasuccessfuljobsearch.
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TJprogramsmayalsobenefitemployersbyprovidingasourceofpotentialpermanentemployeeswith
initialtrainingandsupportprovidedbytheprogram,andbyallowingemployerstotryoutthese
potentialemployeesatnocosttothem.
AvarietyofTJprogramsoperateacrosstheUnitedStates.However,mostprogramsincludesome
combinationofthecomponentsoutlinedinFigure2.5JobStartappliedmostoftheseelements.
Figure2:TransitionalJobsProgramElements
5Kirby,G.,Hill,H.,Pavetti,L.,Jacobsen,J.,Derr,M.,&Winston,P.(2002,April).Transitionaljobs:Steppingstonestounsubsidizedemployment.
Princeton,NJ:MathematicaPolicyResearch,Inc.(TableII.2).Bloom,D.(2010,February).Transitionaljobs:Background,programmodels,and
evaluationevidence.NewYork:MDRC.(p.2122).
Orientationand
Initial
Assessment
TJprogramsprovideanoverviewofprogramrulesandassesseachparticipants
skills,interests,andbarrierstoemployment.Assessmentmayhelpprogramstaff
matchparticipantswithtransitionaljobsthatfittheirinterestsandidentify
supportiveservicesthatwillhelpthemmaintaintheirtransitionaljobs.
JobReadiness
Training
Grouptrainingaboutthesoftskillsnecessarytomaintainemploymentoften
precedesplacementintransitionaljobs.Subjectscommonlycoveredinclude
appropriateworkplacebehavioranddress,jobsearchtechniques,resumewriting,
interviewing,andcomplementarylifeskills.
Subsidized
Employment
AdefiningcomponentofaTJprogram,subsidizedemploymentconsistsofatime
limited,wagepayingjobfundedbytheprogram.Mostprogramsrequire
participantstoworkbetween20and35hoursperweek,payatorslightlyabovethe
stateorfederalminimumwage,andoffer3to9monthsofsubsidizedemployment.
Academicor
HardSkills
Training
TJprogramsvaryontheextenttowhichtheyofferorrequireparticipantsto
undergobasicacademicskillstraining,trainingtowardanacademicdegreeor
credential,ortraininginajoboroccupationspecificskill.Onlyahandfulofprograms
offer
paid
vocational
trainings.
Case
Management
TJprogramsincluderegularmeetingsbetweenparticipantsandprogramstaffto
monitorparticipantsprogress,addressquestionsorproblems,andhelpparticipants
accesssupportiveservices.Programsmaysupplementthesemeetingswithgroup
casemanagementsessionsthatofferpeersupport.
Supportive
Services
MostTJprogramsoffersomecombinationofsupportiveservicestohelpparticipants
maintainemploymentintheirtransitionaljobs.Thesemayincludeassistancewith
transportation,childcare,workrelatedclothingorequipment,medicalcare,
housing,counseling,andtreatmentofalcoholordrugabuse.
JobPlacement
andRetention
MostTJprogramsbeginofferingservicestohelpparticipantsfindunsubsidizedjobs
wellbeforethetransitionaljobends.Forthosewhofindunsubsidizedjobs,TJ
programsmayextendsupportiveservicesforalimitedtimetohelpthemmaintain
unsubsidizedemployment.
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Neighborhoods and Participants
JobStartwasintendedtoserveparticipantsresidingin13Chicagoneighborhoodswithhistoricallyhigh
levelsofunemployment.Granteesweredirectedtoprioritizeenrollingparticipantswithmultiple
barriersto
employment
who
might
benefit
from
supportive
services
offered
by
the
program.
Neighborhoods
TheCityofChicagoisdividedinto77ChicagoCommunityAreas(CCAs).JobStartgranteeswererequired
toenrollparticipantsfrom13CCAsonChicagossouthandwestsides.Figure3showstheshowsthe
designatedCCAsandtheresidentialaddressesofparticipants.
Figure3:ResidentialAddressesofJobStartParticipants6
AcrosstheseCCAs:
Unemploymentwas14.3percent,comparedwith9.9percentacrossnonJobStartCCAs. Nearlyonethirdofresidentslivedinpoverty,comparedwithonefifthacrossnonJobStartCCAs. Overhalfofresidentslivedinlowincomehouseholds(householdsbelow200percentofthe
povertyline)comparedwith39.1percentofindividualsacrossnonJobStartCCAs.7
6Analysisofprogramrecords.Mapreflects1,112addressesthatcouldbeplotted.
7SocialIMPACTResearchCenteranalysisofU.S.CensusBureau20052009AmericanCommunitySurvey.
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JobStartParticipants
JobStartestablishedseparateprogramsforadultcaretakersandnoncustodialparents,ontheonehand,
andforyouthlivingwithadultcaretakersontheother.Becauseyouthprogramsattemptedtoengagea
differentpopulationthanadultprograms(thatis,highschoolorcollegeagedyouth),dataforadultsand
youtharepresentedseparately.
Theaverageagesofadultandyouthprogramparticipantswere28and17,respectively.Themajorityofparticipantswerefemale,andtheoverwhelmingmajoritywasAfricanAmerican.
MorethanhalfofadultprogramparticipantshadearnedonlyahighschooldegreeorGED,andslightlymorethanonequarterhadnotearnedahighschooldegreeorGED.
Amongadultprogramparticipants,62.2percentreportedeligibilityforJobStartasparentsoradultcaretakers,while18.1percentreportedeligibilityasnoncustodialparents.
AveragehouseholdincomereportedbyadultparticipantsuponentryintoJobStartwas$609permonth,equivalentto$7,308peryear.GiventhataveragefamilysizeofaJobStartparticipant
wasfourandthatthefederalpovertyguidelineforafamilyoffourwas$22,050in2010,the
typicaladult
participant
household
lived
well
below
poverty
at
the
time
of
entry
into
JobStart.
TheParticipantSurveyaskedparticipantsabouttheiremploymenthistory.
AmongParticipantSurveyrespondents,89.9percentofadultsreportedtheyhadheldajobbeforeJobStart.Ofthose:
o 76.5ofadultsreportedtheyhadheldajobformorethanoneyear.o Theseadultsalsoreportedthattheyhadbeenunemployedfor1.3yearsonaverageat
thetimetheyenrolledinJobStart.
TheParticipantSurveyalsoaskedparticipantsaboutchallengesfindingsteadyemployment.Among
adultrespondents,
84.5
percent
reported
facing
at
least
one
challenge
to
finding
steady
employment.
Themostcommonchallengesreportedbyadultrespondentswerelackofjobopeningsforwhichtheywerequalified(33.1percent),acriminalrecord(31.1percent),balancingworkor
familyobligationsotherthancaringforasickordisabledrelative(18.9percent),lackoftransit
fareorgasmoney(17.6percent),andlackofahighschooldiplomaorGED(16.2percent).
Bycontrastwithadultrespondents,only52.4percentofyouthrespondentsreportedatleastonechallengetofindingsteadyemployment.Themostcommonchallengereportedbyyouth
respondentswaslackofjobopeningsforwhichtheywerequalified.
ChallengesmostcommonlyreportedbyGranteeStaffSurveyrespondentsincludedunmetneedfor
transportation,no
prior
work
experience,
poor
overall
jobskills,poorinterpersonalskills,nohighschool
diplomaorGED,acriminalrecord,andunmetneedfor
childcare.
Insummation,thetypicalJobStartparticipantbelongedtoa
householdwithverylowincome.ResultsfromtheParticipant
andGranteeStaffSurveyssuggestthatsubstantialproportionshadbarrierstoemployment,including
lackofeducationalattainment,poorjobandinterpersonalskills,criminalrecords,andunmetneedsfor
transportationandchildcare.
The
most
significant
challenge
wasteachingworkethicstoa
groupofyoungadultsthathad
neverhadjobsbefore.JobStartEmployer
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Implementation
TheevaluationexaminedthewaysinwhichgranteesimplementedtheJobStartprogramdesign,the
employersusedtoprovidetransitionaljobs,andthechallengestheyfacedoperatingtheirprograms.
GranteesandProgramStartup
The2016Fundselected12nonprofitagencies(grantees)toimplementJobStart.
EightgranteesoperatedJobStartadultprograms,twogranteesoperatedJobStartyouthprograms,andtwogranteesoperatedadultandyouthprograms.
SevengranteesranPutIllinoistoWork(PITW)programscontemporaneouslywithJobStart. TheChicagoHousingAuthority(CHA)subcontractedwith10agenciestooperateitsJobStart
program.TwooftheseagencieswerealsodirectJobStartgrantees.
SomegranteesdevotedsubstantialresourcestotheirJobStartprogramsbeforetheyreceivedafinal
grant
agreement
in
order
to
afford
participants
the
maximum
amount
of
time
in
subsidized
employment.Othersdidnotstarttheirprogramsuntiltheirfinalagreementswereinplace.
ProjectdirectorsreportedthatexperienceoperatingpriorTJorjobreadinessprogramsfacilitatedstartupoftheirJobStartprograms.
RecruitmentandEligibility
Toachievetheambitiousgoalofplacing2,200participantsintosubsidizedemployment,grantees
neededtorecruitandverifyeligibilityofhundredsofprospectiveparticipants.Granteeswererequired
tosubmitcopiesofdocumentsdemonstratingeachparticipantseligibilityforJobStarttothe2016Fund
andreceiveapprovalfromthe2016Fundbeforeplacingtheparticipantinsubsidizedemployment.The
2016Fund
implemented
this
review
procedure
because
it
might
be
required
to
return
money
to
the
federalgovernmentifanauditfoundthatJobStarthadservedTANFineligibleparticipants.
SeveralprojectdirectorsreportedasubstantialresponsetotheirrecruitmenteffortsfromoutsidetheJobStartCCAsandindicatedtheycouldhaveenrolledmanymoreparticipantsinthe
absenceoftheresidencyrequirement.
Theresidencyrequirementalsocreatedconfusionamongneighborhoodresidentsandotherstakeholdersandcontributedtothealreadysubstantialburdenofdemonstratingeligibility.
The2016Fundwascreatedtoservecommunitiesthatwouldhavebeenimpactedbythe2016OlympicGamesanduseofitsresourceswaslimitedtotheJobStartCCAswithoutpriorapproval
fromcontributors.Staffofthe2016Fundreportedthatmostgranteesdidnotexpressdifficulty
withthis
requirement
until
it
was
too
late
to
seek
approval
for
expanding
program
boundaries.
Theyalsoreportedthatthe2016Fundmadeaccommodationsintwocases,includingreducing
thenumberofparticipantsandexpandingtheCCAboundariestoadjacentareas.
Underthedemandingtimelineoftheprogram,granteesfounditchallengingtomeettheupfrontrequirementsfordemonstratingeligibility.However,severalprojectdirectorsperceived
upfrontreviewbythe2016Fundaspositivebecauseiteliminatedmistakesearlyonand
ensuredthatparticipantswouldnotlaterbedeemedineligibleandremovedfromtheprogram.
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Severalprojectdirectorssaidthatthattheiragencieswouldhaveexpandedrecruitingeffortsifmoretimehadbeenavailable.
Assessment
Beforejobreadinesstrainingandsubsidizedemployment,granteeswererequiredtoassessparticipants
educationalattainment,
skills,
work
experience,
occupational
interests,
career
goals,
and
service
needs.
ThemostcommonlyusedtypesofassessmentweretheTestofAdultBasicEducation(TABE),individualinterviews,andgroupinterviews.
Mostprojectdirectorssaidthatadditionaltimeforassessmentwouldhaveenabledthemtoacquiremoreinformationaboutparticipantsandprovidesupportiveservicesmoreeffectively.
Twoprojectdirectorssaidthattheywouldhavelikedtoassessenrolleeaptitudesandcareerinterestsmoreeffectively.Thiswouldhavehelpedstafftoprovidejobcoachingandfacilitated
planningforafterthetransitionaljobended.
Job
Readiness
Training
JobStartrequiredparticipantstocompleteatleast30hoursofjobreadinesstrainingwithinthe2weeks
priortobeginningsubsidizedemployment.Granteeswereinstructedtocoverworkplacebehavior,
financialliteracyandbanking,customerservice,jobsearchandapplicationskills,andjobspecificskills.
Granteescouldelecttoprovidemorethan30hoursofjobreadinesstraining.
Granteestaffreportedtheiragenciescoveredmostrequiredtopicsbeforeorduringthetransitionaljob.
Severalprojectdirectorssaidthatlongerinitialjobreadinesstraining,oralternately,followuptraining
duringthetransitionaljobwouldhavehelped
participants
maintain
their
transitional
jobs
and
increasedtheirjobreadiness.Somegrantees
providedadditionaltraining.
Severalprojectdirectorsrecommendedpayingparticipantsforjobreadinesstraining,arguingthatitwouldincentivizeattendanceandreduceretentionproblems.Becausewagespaidforjob
readinesstrainingdidnotqualifyforTANFEFreimbursement,granteeswerenotallowedtopay
wagesforjobreadinesstrainingusingJobStartfunds.
Oneprojectdirectorrecommendedhavingsupervisorsandmanagersfromlocalemployersexplaintheirexpectationsforworkethictoparticipantsaspartofjobreadinesstraining.
Case
Management
JobStartrequiredgranteestoprovideparticipantswithjobcoachingandcasemanagement.Staffwere
requiredtomeetoneononewithparticipantsonceeachweekforthefirst4weeksofthetransitional
jobandonceevery2weeksthereafter,andingroupsessionsevery2weeks.
AmongGranteeStaffSurveyrespondents,68.3percentreportedthattheiragenciesprovidedoneononecasemanagementatleastonceaweekinthefirst4weeks,and85.4percent
reportedthattheiragenciesprovideditatleastonceevery2weeksthereafter.
Ilearnhowtogetreadyforajob
andhowtointeractonan
interview. JobStartParticipant
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Sevengranteesreportedthattheyprovidedgroupcasemanagement.AmongGranteeStaffSurveyrespondents,68.0percentreportedthattheiragenciesprovidedgroupcase
managementatleastonceeverytwoweeks.
Projectdirectorswhoseagenciesprovidedgroupcasemanagementreportedthatitofferedparticipantssupportandencouragement,enabledparticipantstomotivateandholdeachother
accountablefor
goals,
and
helped
case
managers
obtain
information
about
participants.
SupportiveServices
JobStartrequiredgranteestoprovideorhelpparticipantsaccesssupportiveservicesthattheyneeded
tomaintaintheirtransitionaljobs.
Amongparticipantrespondents,53.3percentreportedreceivingtransportationassistance,30.0percentreportedreceivinghelpwithworkappropriateclothing,and20.1percentreported
receivinghelparrangingchildcare.
Granteesprovidedothersupportiveservices,suchasassistancewiththecostoftoolsorclothesorreferralsformedicalcare,relativelyinfrequently.Onegranteeencouragedparticipantsto
enrollin
afederal
program
that
provides
mobile
phone
service
to
income
eligible
individuals.
Onequarterofparticipantrespondentsreportedthattheydidnotreceivesomeservicestheyneeded.Themostcommonlyreportedservicesneededbutnotreceivedwerehelpaddressing
housingproblems,jobsearchassistance,andcomputertraining.
TransitionalJobsandEmployers
Thetransitionaljobwastolastupto16weeksandprovidebetween30hoursand40hoursofwork
eachweek.Granteeswererequiredtosetwagesforadultparticipantsbetween$8.25and$10.00per
hour.Allyouthparticipantsweretobepaid$8.25perhour.Toensurethatparticipantswouldhave
meaningfulworkexperiences,the2016Fundcommittedtoreviewingjobdescriptionsandgrantees
wererequired
to
visit
each
worksite
at
least
once
during
the
first
2weeks
of
the
transitional
job
and
at
leastonceduringtheremainderoftheprogram.Employerswererequiredtosignamemorandumof
understanding(MOU)inwhichtheyagreedtoprovideparticipantswithmeaningfulworkactivities,
sufficientworktooccupytheirhours,andmentoringandsupervision.Thenumberofparticipantsat
eachworksitewaslimitedto10inordertoallowforadequatesupervision.
Participantscouldworkforforprofit,nonprofit,orgovernmentagencies.Acrossallgrantees,268
employerswereusedtoprovidetransitionaljobs.
Amongemployerrespondents,56.8percentwerenonprofit,40.5percentwereforprofit,and2.7percentwerepublic.
Onaverage,employerrespondentsemployed29peoplepriortoJobStart.Overhalfemployed10orfewerpeopleandtheoverwhelmingmajorityemployed50orfewerpeople. Overall,JobStartemployerswereheavilyconcentratedinservices,includingchildcarecenters,
churches,schools,propertymanagementandlandscapingcompanies,forprofitandnonprofit
retailstores,fastfoodandfullservicerestaurants,andbeautysalons.
OnthebasisoftheirexperiencewithJobStartandotherprograms,projectdirectorsobservedthat
differenttypesofemployersofferuniqueadvantagesanddisadvantagesastransitionaljobemployers.
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Smallforprofitandnonprofitemployerstendtoaccommodatebarrierstoemploymentandofferparticipantsmoreindividualattention.However,theywerelesslikelytohireparticipants
aftersubsidizedemploymentasaresultofrelativelysmallbudgetsandfewjobopenings.
Largeforprofitemployersareabletobringonrelativelylargenumbersofparticipantsandofferdifferenttypesofjobswithinoneworksite.Theyarealsomorelikelytohireparticipantsafter
subsidizedemployment.
However,
they
were
more
difficult
to
enroll
into
JobStart
and
less
likely
totakeonparticipantswithbarrierstoemployment.
Usingadiversesetofemployersappearstohavehelpedseveralgranteesprovidesuitableplacementsforparticipantswithdifferentskillandworkreadinesslevels.
Granteesplaced93.8percentofparticipantswhocompletedjobreadinesstrainingintotransitionaljobs.
Table
1
shows
hours
worked
and
wages
earned
in
transitional
jobs.
Theaverageadultworked319hoursover9.1weeks(35hoursperweekonaverage),whiletheaverageyouthworked184hoursover6.9weeks(27hoursperweekonaverage).
Onaverage,adultparticipantsworkedfor9ofthe10weekspossible(87.6percentofweekspossible)giventhetimebetweentheirstartdatesandSeptember30.
EmployerrespondentsreportedthatthemostcommontasksperformedbyJobStartparticipantswereadministrativeandclericaltasksandjanitorialandmaintenancetasks.
Severalprojectdirectorsobservedthatpossessionofadditionalhardskillswouldhavehelpedparticipantsintheirtransitionaljobs.Theseincludedbasiccomputerskills,administrativeand
clericalskills,childcarelicensureandexperience,andbasicquantitativeskills.
Approximatelytwothirds(61.6percent)ofparticipantsremainedintheirtransitionaljobs
throughSeptember30.
GranteeStaffSurveyrespondentsreportedthatthemostcommonreasonsparticipantslefttheir
transitionaljobsbeforeSeptember30were
terminationbyemployers,thatparticipantswerenoshowanddidnotreengagewiththeir
Iwasworkingeverydayproudly.
IfeltlikeIwasimportanttomy
workplace. JobStartParticipant
TransitionalJobataMetalsFinishingCompany
TheexperienceofalocalmetalsfinishingcompanywithJobStartappearstoexemplifytheuseofa
TJprogramasasourceofpotentialemployeesbyaforprofitemployer.Agranteeplacedfour
participantswiththisemployer.Participantsstartedtheirtransitionaljobscleaninguparoundthe
worksiteand
painting
and
gradually
progressed
to
performing
some
manufacturing
tasks.
The
projectdirectordescribedtheemployerasassessingandscreeningtheparticipantsthroughout
theirtransitionaljobs.Attheendofsubsidizedemployment,theemployerpermanentlyhiredone
ofthefourparticipants,anexoffenderreferredtothegranteefromahousingprogram.The
participantwasearningawageof$12.00perhourbyearly2011.Thisexperiencerepresentsa
successfulinstanceofaforprofitemployerusingJobStarttomeetitsbusinessneedswhilehelping
aparticipantwithbarrierstoemployment(i.e.,housinginstabilityandacriminalrecord)acquire
softskills,industr s ecificskillsandex erience,andafootholdinthelabormarket.
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agencies,andthatparticipantsdidnotliketheirsubsidizedjobsorworksites.Themostcommon
reasonsreportedforterminationwereunexcusedabsences,failuretoperformjobduties
satisfactorily,failuretofollowdirectionsfromsupervisors,comingtoworklateorleavingearly
unexcused,andceasingtoshowupforwork.
Table1:
Hours
Worked
and
Wages
Earned
in
JobStart
Transitional
Jobs
8
Adults Youth Total
Numberofparticipantswhoworkedinatransitionaljoba
1,030 488 1,518
Percentageofparticipantswhoworkedinatransitionaljobb
94.0% 93.5% 93.8%
Totalhoursworked 328,747 89,754 418,500
Averagehoursperparticipant 319 184 276
Averagenumberofweeksworkedc 9.1 6.9 8.4
Averagenumberofhoursworkedperweek 35 27 33
Maximumnumberofweekspossibleinprogramd
16 16 16
Averageweeksworkedasapercentageofmaximum 57.0% 43.1% 52.5%
Averageweeks
possible
given
participant
start
date
e
10 11
10Averageweeksworkedaspercentageofaverageweekspossible 87.6% 65.1% 80.3%
Totalwagesearned $3,193,201 $743,223 $3,936,423
Averagewagesperparticipant $3,100 $1,523 $2,593
Averagewagesperhourf $9.71 $8.28 $9.41
TotalFICApayments $240,219 $56,898 $297,117
TotalWorkers'Compensationpayments $75,527 $6,499 $82,026aAllparticipantsworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords.
bNumberwhoworkedinatransitionaljobasa
percentofparticipantswhocompletedjobreadinesstraining,worked1ormorehoursinatransitionaljob,orbothaccordingtoprogram
records.cWeeksbetweenstartandendofsubsidizedemploymentwerecalculatedusingprogramrecords.
dWeeksbetweenJune14and
September30,2010.eWeeksbetweenstartofsubsidizedemploymentandSeptember30,2010.
fOnegranteethatservedyouthparticipants
paidwagesof$8.50perhourinsteadof$8.25perhourtomaintainwageparitywithanotherprogram.
JobPlacementandRetention
Tohelpparticipantsfindunsubsidizedemploymentaftertheirtransitionaljobsended,JobStartdirected
granteestoprovidejobsearchandapplicationtraining;discusswork,training,oreducationgoalsduring
casemanagement;providejobleadsandhelpparticipantsmakecontactwithemployers;andconnect
participantswithsupportiveservicesofferedbytheirownagenciesorothersocialserviceagencies.
Relativelyhighproportionsofparticipantrespondentsreportedreceivingservicesaimedathelpingthemfindunsubsidizedemployment.
Acrossallgrantees,21.8percentofadultsand91.8percentofyouthwereknowntohaveentered
unsubsidized
employment,
education
or
training,
or
another
jobs
program
immediately
afterJobStartended.Thefollowingoutcomessectionexaminestheseplacementratesingreater
detail.
GranteeStaffSurveyrespondentsreportedthatthemostcommonreasonsparticipantswerenotplacedintounsubsidizedjobswerelackofinterpersonalskills,lackofworkexperience,fewjobs
available,lackofeducationalattainment,andinabilitytopassacriminalbackgroundcheck.9
8AnalysisofJobStartprogramrecords.
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Projectdirectorsreportedthatparticipantattitudes,lackoffundingtocontinueplacementactivitiesafterJobStartended,anduseofsmallnonprofitemployersthatlackedtheresources
tohireparticipantsweresubstantialobstaclestounsubsidizedplacement.
Amongemployerrespondents,60.0percentreportedthattheirbusinesseswerenotfinanciallyabletoretainalltheJobStartparticipantstheywantedtohire.10
Consideringparticipantsthattheydidnotwanttoretain,46.1percentofemployerrespondentsreportedtheywouldbereadytohirewithmoretimeintransitionaljobs,and30.8percent
reportedthatevenwithmoretimeintransitionaljobstheywouldnotbereadytohire.11
Administration
UseoffederalfundinganddelaysconcludingandclarifyingtheCommunityServicesAgreement(CSA)
thatgrantedfederalfundingtothe2016FundmadeJobStartadministrationdifficult.
IfanauditdeterminedthatJobStarthadservedineligibleparticipantsorpaidgranteesforbenchmarksnotachieved,the2016Fundmighthavebeenrequiredtoreturnmoneytothe
federalgovernment.Thismotivatedthe2016Fundtocreaterigorousproceduresforverifying
participanteligibility
and
detailed
rules
for
vouchering
for
wages
and
placement
fees.
ThefinalCSAwasexecutedonlyoneweekbeforethetargetdateforplacingparticipantsintosubsidizedemployment,andthe2016Fundcontinuedtoreceiveclarificationabout
implementingtheCSAfromIDHSaftertheCSAwasexecuted.
MostprojectdirectorsreportedthattheyreceivedinstructionstochangetheirproceduresafterJobStartbeganoperating.Severalprojectdirectorsreportedthattheiragenciessometimes
receivedcontradictoryresponsestoquestionsfromdifferent2016Fundstaffpeople.Most
likely,lateimplementationoftheCSAandcontinuedclarificationsresultedinthesechallenges.
Despiteadministrativechallenges,mostprojectdirectorsreportedthatthe2016Fundperformedadmirablyincoordinatingtheprogram,communicatingrulechangespromptly,
workingtofixproblems,andhelpinggranteesfulfillprogramrequirements.
The2016FundstaffreportedthatearlierexecutionoftheCSAwouldhavereducedadministrativedifficultiesbyenablingthemtooffergranteesmoreinstructionandguidance
aboutcomplicatedaspectsofJobStartadministrationwellbeforeJobStartbegan.
Funding
Granteeswererequiredtopayparticipantpayrollandsupportiveservicescostsupfrontandsubmit
voucherstothe2016Fundrequestingpaymentforthosecosts.The2016Fundreimbursedgranteesfor
payrollandpaidgranteesaplacementfeetocovertheirothercosts.Itthenvoucheredfor
reimbursementfromIDHSfortheportionofprogramcostspaidbytheTANFEF.
Granteeswereeligibletoreceiveaportionoftheplacementfeeeachtimeaparticipantachievedoneof
fivebenchmarks.Theamountpaidforeachbenchmarkdependedonthenumberofweeksaparticipant
9AnalysisofJobStartGranteeStaffSurveyresponses.N=22.Allrespondentsselfidentifiedashavingworkedonhelpingparticipantstofind,
gain,andprepareforunsubsidizedemploymentafterthetransitionaljob.10
AnalysisofJobStartemployersurveys.N=39.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.11
AnalysisofJobStartEmployerSurveyresponses.N=26.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitional
job.
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wasexpectedtocompleteinsubsidizedemployment.Thispaymentstructurewasintendedto
incentivizerapidenrollmentandplacementintotransitionaljobsandtomaximizeefforttohelp
participantsmaintainthosejobs.
Tocoverthecostofprovidingservicesuntilparticipantsreachedthefirstbenchmark,the2016Fundpaidgranteesanadvanceforeachparticipanttheyplannedtoplaceinatransitionaljobas
statedin
their
grant
agreements.
The
advance
was
paid
using
private
funding.
ComparedtoWIAfunding,projectdirectorsfoundTANFEFfundingprovidedthroughJobStartrelativelyeasytouseandflexible.
Granteesfoundthevoucheringprocessverychallenging:mostfoundtrackingweeksworkedandestimatingweeksexpectedinsubsidizedemploymentverylaborintensive,andmost
reporteddifficultycompletingtheelectronicvoucherspreadsheetprovidedbythe2016Fund.
Theneedtoaccountforallfundingpaidtoparticipantsinordertoavoidliabilitytothefederalgovernmentforimproperuseoffundsdrovethedetailedandlaborintensivetrackingof
participanttimeinsubsidizedemploymentrequiredbythe2016Fund.
The2016Fundstaffreportedthatadditionalstartuptimewouldhavereducedvoucheringdifficultiesbyenablingthemtotraingranteesmorethoroughlyonvoucheringproceduresand
designamoreuserfriendlyvoucheringspreadsheet.
ProjectdirectorswhoseagenciesoperatedlongerJobStartprogramsdescribedtheplacementfeeasgenerous.Given75percentofthefee,fivesaidtheiragencieswouldparticipateagain,
foursaidtheiragenciesmightparticipate,andtwosaidtheiragencieswouldnotparticipate.12
TotalJobStartexpenditureforallparticipantswhocompletedjobreadinesstrainingwas$7.8million,
34.2percentoftheplanned$22.8millionprogrambudget.Itincluded$3.9millionforwages,$379,143
forpayrolltaxes,and$3.5millionforbenchmarkfees.Thelowerthananticipatednumberof
participantsandtheshorterthananticipatedaverageTJdurationaccountforthedifferencebetween
program
expenditures
and
the
planned
program
budget.
InteractionwithPITW
JobStartoperatedcontemporaneouslywithPITW,amuchlargersubsidizedemploymentprogram.The
twoprogramsweresupportedbytheTANFEFandwereoriginallyscheduledtoendonSeptember30,
2010.However,theStateofIllinoisextendedPITWuntilJanuary15,2011usingitsownfunds.
SomeprojectdirectorsreportedthatparticipantsandemployersconfusedJobStartandPITW,andbelievedthatJobStartwouldalsobeextended.TheybelievedthatthisdiscouragedJobStart
participantsandemployersfromformingemploymentrelationshipsbySeptember30,thereby
contributingtolowerthanexpectedplacementratesintounsubsidizedemployment.
SomeprojectdirectorsreportedthatPITWcreatedcompetitionforemployers,asemployersthatwererecruitedforPITWlackedthecapacitytoalsoparticipateinJobStart.
SomeprojectdirectorsreportedthatPITWservedasanalternativeplacementopportunityforJobStartapplicantsoutsidetheJobStartCCAs,andoneprojectdirectorsaidthatpublicity
aroundPITWfacilitatedrecruitmentforJobStart.
12AnalysisofProjectDirectorSurveyresponses.N=11for75percent.Onegranteesubmittedseparatesurveysforitsadultandyouth
programs.
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Outcomes
JobStartwasintendedtohelpparticipantsweathertheeffectsoftherecessionthatbeganinDecember
2007,improvetheemployabilityofparticipants,andplaceparticipantsintounsubsidizedemployment
orfurther
education
or
training.
It
may
also
have
helped
participating
employers
and
stimulated
businessactivity.Thissectionprovidesapreliminaryassessmentoftheseoutcomes.
EconomicStimulus
EmployerSurveyresultsindicatethatJobStarthadmoderate
positiveeffectsonbusinessperformanceandfinancialhealth:
Justoverhalfofrespondentsreportedbusinessperformanceimprovedasaresultofemploying
participants,whileslightlylessthanhalfreportedno
change.13
NearlyonethirdreportedthatthefinancialhealthoftheirbusinessesimprovedfromthetimetheybecameinvolvedwithJobStarttotheendoftheprogram.Ofthosewhoreportedthattheir
financialhealthimproved,allbutoneattributedatleastsomeoftheimprovementtotheir
involvementwithJobStart.14
ThemoderateeffectsofJobStartonbusinessperformanceandfinancialhealthreportedbymaybethe
resultoftwofactors:therelativelyshorttimeworkedby
participants(8.4weeksonaverage)andtherelatively
goodfinancialhealthofrespondentsbeforeJobStart.
Inadditiontodirectlyprovidingparticipantsandemployerswitheconomicbenefits,JobStartmayhave
stimulatedeconomic
activity
at
businesses
where
participants
spent
income
earned
through
the
programandatbusinessesthatsellgoodsandservicestothosebusinesseswherethefirstroundof
spendingoccurred.Thisrepresentsaneconomicmultipliereffect.Whenaconsumermakesapurchase
atabusiness,thatbusinessmustreplenishitsstockofmaterialsorbuyservicesfromotherbusinesses
tosupporttheinitialpurchase.Thebusinessmaymakesomesupportingpurchaseswithinalocalarea,
stimulatingeconomicactivity.Itmaymakeotherpurchasesoutsidethelocalarea,resultinginleakage
ofeconomicactivityfromthatareaandreducingthemultipliereffectfromthefirstroundofspending.
Thesupportingbusinesses,inturn,makepurchasesfromotherbusinesses,withleakageoccurringat
everystep.Thesumofeconomicactivityateverystep,includingtheinitialpurchase,reflectsthetotal
economicactivityassociatedwiththepurchase.
Lowerincome
individuals
and
families
have
ahigher
propensity
to
spend
income
on
goods
and
services
(asopposedtosavingorinvestingincome),andtospendincomelocally,thanthosewithhigher
incomes.15StudiesoftheEarnedIncomeTaxCreditandrecentfederalstimuluspaymentsfindthatlow
13AnalysisofEmployerSurveyresponses.N=70foraquestionaboutproductivity,72forquestionsaboutqualityofwork,numberof
customersorclientsserved,andcustomerorclientsatisfaction,and71foraquestionaboutworkforcesatisfactionwithworkload.All
respondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.14
AnalysisofJobStartEmployerSurveyresponses.N=70.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.15
P.Orszag&J.Stigliz.(2001November).Budgetcutsversustaxincreasesatthestatelevel:isonemorecounterproductivethantheother
duringarecession?Washington,DC:CenterforBudgetandPolicyPriorities.Severalstudiesoftheconsumerresponsetotaxrebatesfindthat
lowincomehouseholdsspendahigherproportionoftheirtaxrebatesthanthetypicalmiddleincomehousehold.D.Johnson,J.Parker,&N.
Ibelievethisprogramcouldhave
beenmoresuccessfulformy
businessiftheprogramhadmore
time. JobStartEmployer
Asasmallbusinessitwasgreat
tohavetheextrahelp.JobStartEmployer
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19
incomehouseholdsspentapproximately70percentofthesepaymentsimmediatelyafterreceiving
them.16Accordingly,themultipliereffectofJobStartisestimatedbyassumingthatparticipantsspent70
percentofincomeearnedthroughtheprogram.Thisrepresentsaconservativeassumption,asthe
definitionoflowincomehouseholdsusedinthestudiesaresubstantiallyhigherthanthehousehold
incomesofJobStartparticipants,suggestingthatJobStartparticipantswouldspendagreaterproportion
ofearnedincometosatisfyimmediateneeds.17
WhileJobStartparticipantscouldhavespentincomeearnedthroughtheprograminmultipleeconomic
sectors,muchoftheirspendingislikelytohaveoccurredintheretailsector.Theretailsector
encompassesawidevarietyofbusinessesatwhichparticipantsmighthavespentincomeearned
throughJobStart,includinggrocerystores,clothingstores,gasstations,furnitureandhomefurnishings
stores,andelectronicsandappliancestores.18ThemultipliereffectofJobStartisestimatedbyassuming
thatparticipantsspentincomeearnedthroughtheprogramintheretailsectorinCookCounty.
Table2showsestimatesofeconomicactivityinCookCountyassociatedwithJobStartparticipantwages
giventheassumptionspreviouslynoted.Theseincludeaninitialincreaseindemandof$2.8million
resultingfromwagesspent;asubsequentincreaseindemandof$2.3millionresultingfrombusiness
spendingto
support
initial
demand;
$1.2
million
of
increased
earnings
across
Cook
County
households
asaresultofincreaseddemandforgoodspurchasedintheretailsector;anda44jobincreasein
employmentasaresultofincreaseddemandintheretailsector.Assumingthatparticipantswouldnot
havereceivedandspent$2.8millionintheabsenceoftheprogram,thisrepresentsneweconomic
activityacrossCookCountythatwasstimulatedbyJobStartparticipantwages.
Table2:EstimatedEconomicActivityAssociatedWithJobStartParticipantWagesinCookCounty19
TotalwagesearnedbyJobStartparticipants $3,936,423
Proportionofwagesspentintheretailsector 0.70
Increaseddemand
Initial $2,755,496
Subsequent
$2,327,292
Total $5,082,788
Increasedhouseholdearnings $1,228,676
Increasedemployment 44
Souleles.(2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610.(p.
1603).J.Parker,N.Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof2008.
RetrievedOctober27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(p.16).16
EITCrecipientsspent70percentoftheirEITCchecks.Lowincomehouseholdsspent76percentoftheir2001incometaxrebatesand71.5
percentoftheir2008economicstimuluspayments.R.Edwards.(2003September).MacroeconomicimplicationsoftheEarnedIncomeTax
Credit.RetrievedOctober27,2011fromhttp://www.demog.berkeley.edu/~redwards/Papers/edwardseitc.pdf(p.16).D.Johnson,J.Parker,&
N.Souleles.(2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610.
(p.1603).
J.
Parker,
N.
Soueles,
D.
Johnson,
&
R.
McClelland.
(2009
December).
Consumer
spending
and
the
economic
stimulus
payments
of
2008.RetrievedOctober27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(Table6).17
In2004,theaverageannualincomeofanEITCeligiblehouseholdwas$28,599,equivalentto$2,383permonth.Thestudiesofspendingfrom
the2001incometaxrebateand2008economicstimuluspaymentsdefinedlowincomehouseholdsasthosewithannualearningsequaltoor
lessthan$34,298and$32,000,equivalentto$2,858and$2,667,respectively.Asnotedpreviously,averagehouseholdincomereportedby
JobStartadultprogramparticipantsuponentrywasonly$609permonth,equivalentto$7,308peryear.A.GoodmanBacon&L.McGranahan.
(2008).HowdoEITCrecipientsspendtheirrefunds?Chicago:FederalReserveBankofChicago.(p.21).D.Johnson,J.Parker,&N.Souleles.
(2006December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610.(p.1604).J.
Parker,N.Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof2008.Retrieved
October27,2011fromhttp://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf(Table6).18
U.S.DepartmentofLabor,BureauofLaborStatistics.RetailTrade:NAICS4445.RetrievedJune28,2011from
http://www.bls.gov/iag/tgs/iag4445.htm19
BureauofEconomicAnalysisRegionalInputOutputMultiplierSystemTypeIImultipliersandanalysisofprogramrecords.
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20
ParticipantIncomeandEmployability
Onaverage,JobStartparticipantsearnedasubstantialamountofincomerelativetotheirhousehold
incomesuponenteringtheprogram.ParticipantandEmployersurveyresultsindicatethatparticipant
employabilityimprovedmoderatelyfromthebeginningtotheendofJobStart.
Table
3
compares
the
average
monthly
household
income
of
participants
upon
entering
JobStart
with
averagemonthlyincomeearnedthroughtheprogram.Averagemonthlyincomeearnedbyadult
programparticipantswasmorethandoubletheiraverage
householdincomeuponenteringJobStart,whileaverage
monthlyincomeearnedbyyouthprogramparticipantswas78.5
percentoftheiraveragehouseholdincomeuponentry.Among
ParticipantSurveyrespondents,77.2percentreportedthat
JobStartallowedthemtosupporttheirfamiliesorpaytheirbills
whentheymightnototherwisehavebeenableto,and62.8
percentreportedthatwithoutJobStarttheywouldlikelyhavebeenunemployed.20
Table3:AverageMonthlyHouseholdIncomeUponEnteringJobStartComparedwithAverage
Monthly
Income
Earned
Through
JobStart
21
Adults Youth All
AveragemonthlyhouseholdincomepriortoJobStart $609 $1,127 $760
Averagewagesperparticipantearnedintransitionaljob(total) $3,100 $1,523 $2,593
Averagenumberofmonthsworkedintransitional job 2.3 1.7 2.1
Averagewagesperparticipantearnedintransitionaljob(permonth) $1,361 $884 $1,234
Averagewagesearnedpermonthasapercentageofpriorhouseholdincome 223.5% 78.5% 162.5%
OneoftheprimaryavenuesthroughwhichTJprogramsmayimproveemployabilityisbyhelping
participantslearnandpracticesoftskillsneededtomaintainemployment.
Amongemployerrespondents,thepercentagewhoratedparticipantspoor,verypoor,orfaironsoftskillsdecreasedmoderatelyfromthebeginningtoendofthetransitionaljob,
whilethepercentagewhoratedparticipantsgoodor
verygoodincreasedmoderately.22
Themajorityofparticipantrespondentsreportedthattheyweresomewhatmorelikelyormorelikelyto
exercisesoftskillsaftercompletingJobStart.23
ThemajorityofParticipantrespondentsagreedorsomewhatagreedthatJobStarthadincreasedtheir
20
Analysis
of
Participant
Survey
responses.
N
=215.
All
respondents
employed
at
least
one
participant
for
at
least
1hour
in
atransitional
job.
21AnalysisofJobStartprogramrecords.N=865adultsand355youthforrecordsofhouseholdincome.
22AnalysisofEmployerSurveyresponses.N=68forthebeginningofthetransitionaljoband71forendofthetransitionaljobforaquestion
aboutamountofsupervisionneeded,72forquestionsaboutproductivityandinterpersonalskills,73forthebeginningofthetransitionaljob
and72fortheendofthetransitionaljobforaquestionaboutpersonalpresentation,72forbeginningofthetransitionaljoband73forendof
thetransitionaljobforaquestionaboutpunctuality,71forbeginningofthetransitionaljoband72forendofthetransitionaljobforaquestion
aboutcommunicationaboutabsences,and73forbeginningofthetransitionaljoband71forendofthetransitionaljobforaquestionabout
overallperformance.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.23
AnalysisofParticipantSurveyresponses.N=210foraquestionaboutconsistentlyshowingupforworkontime,209forquestionsabout
callingasupervisoriftheparticipantwillbelateormissworkandcourteouslydealingwithcustomersorothermembersofthepublic,211fora
questionaboutgettingalongbetterwithasupervisor,225foraquestionaboutcooperatingbetterwithcoworkers,205foraquestionabout
missingfewerdaysofwork,207foraquestionaboutgettingworkdonewithlesssupervision,and226foraquestionaboutconfidenceinability
tobesuccessfulatwork.Allrespondentswereemployedatleast1hourinatransitionaljob.
Thebestthingaboutthe
programformewasthatIgotto
learnnewskillsandget[sic]
comfortablearoundpeopleI'llbe
workingwith. JobStartParticipant
[JobStart]providedmeajob
whichinturnhelpedmeprovide
formyfamily. JobStartParticipant
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21
attractivenesstootheremployersandintroducedthemtousefulcontacts.24
ThevastmajorityofEmployerrespondents(91.9percent)reportedthattheywouldprovideareference
foratleastafewoftheirJobStartemployees,and66.2percentreportedthattheywouldprovidea
referenceforhalformoreoftheirJobStartemployees.25Additionally,44.6percentreportedthatthey
weremorelikelytohirelowincomeparentsoryouththantheywerebeforeJobStart,andonly8.1
percentreportedthattheywerelesslikelytohirelowincomeparentsoryouth.26
TransitionalJobsandUnsubsidizedJobPlacement
TheevaluationexaminedplacementofJobStartparticipantsintounsubsidizedemployment,education
ortraining,andotherjobsprogramsusingdatafromrecordsmaintainedbyeachgrantee.Theserecords
likelyunderrepresentthepercentageofparticipantswhofoundemploymentafterJobStartendedfor
tworeasons.First,someparticipantsmayhavefoundunsubsidizedemploymentbeforeJobStartended
butmaynothaveinformedtheirJobStartagency.Onceaparticipantfindsajob,heorshemayhave
littleincentivetomaintaincontactwithanemploymentprogram,withtheresultthatplacementrates
reportedbyemploymentprogramsgenerallyunderrepresentactualplacementrates.Theplacement
statusof
18.3
percent
of
adult
participants
was
unknown
at
the
time
JobStart
ended
and
some
of
these
participantsmayhavefoundunsubsidizedjobs.
Second,granteerecordsgenerallyreflectplacementatthe
timeJobStartended.Participantsreportedasunemployed
orplacedineducation,training,oranotherjobsprogram
mayhavefoundunsubsidizedemploymentafterJobStart
ended.Severalprojectdirectorsindicatedthatsome
participantswhowereunemployedwhenJobStartended
foundunsubsidizedemployment.
Initially,the
2016
Fund
allocated
2,270
subsidized
employment
slots
across
all
grantees.
It
was
hoped
thatatleast60percentofadultsand75percentofyouthintounsubsidizedemployment,further
educationortraining,orsomecombinationoftheseactivitiesafterunsubsidizedemploymentended.
Table4showsplacementintounsubsidizedemployment,education,ortrainingacrossallgrantees.
Thenumberofslotswasreducedto2,154aftersomegranteesexperienceddifficultyenrollingparticipants.Acrossallgrantees,66.9percentofallinitialprogramslotswerefilled;excluding
theChicagoHousingAuthority,88.8percentofallinitialprogramslotswerefilled.Eight
granteesfilledover100percentoftheirinitialslotsandwereallocatedadditionalslotsafterthe
programbegan.
Amongadults,21.8percentwereknowntohaveenteredoneormoredesiredactivitiesafterJobStartended:12.0enteredunsubsidizedemployment,6.0percententerededucationor
training,and
3.8
percent
entered
another
jobs
program.
Amongyouth,91.8percentwereknowntohaveenteredoneormoredesiredactivities:80.7percententerededucationortraining,8.2percententeredanotherjobsprogram,and2.9
percententeredunsubsidizedemployment.
24AnalysisofJobStartParticipantSurveyresponses.N=213foraquestionaboutincreasedattractivenesstoemployersand212foraquestion
aboutmeetingcontactsthroughJobStart.Allrespondentswereemployedatleast1hourinatransitionaljob.25
AnalysisofJobStartEmployerSurveysresponses.N=74.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.26
AnalysisofJobStartEmployerSurveyresponses.N=74.Allrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.
[JobStart]provideduswithtwo
goodworkerswhichwestillhave
onstafftoday. JobStartEmployer
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22
Table4:PlacementRatesforJobStartParticipants,EndofProgram27
Adults Youth Total
Workedinatransitionaljoba 1,030 100.0% 488 100.0% 1,518 100.0%
Enteredunsubsidizedemploymentb 124 12.0% 14 2.9% 138 9.1%
Enrolledineducationortraining 62 6.0% 394 80.7% 456 30.0%
Enrolledin
another
jobs
program
39 3.8% 40 8.2%
79
5.2%
Oneormoredesiredoutcomesc 225 21.8% 448 91.8% 673 44.3%
Unemployed 617 59.9% 16 3.3% 633 41.7%
Unknownd 188 18.3% 24 4.9% 212 14.0%
aAparticipantiscountedashavingworkedinatransitionaljobifheorsheworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords.
bIncludesfiveadultparticipantsandfiveyouthprogramparticipantswhoenteredbothunsubsidized employmentandeducationortraining.
cSumofunsubsidizedemployment,educationortraining,unsubsidizedemploymentandeducationortraining,andanotherjobsprogram.
dPostprogramstatusismarkedunknowninprogramrecordsorisotherwiseindeterminatefromprogramrecords.
OveralleconomicconditionsmayhaveimpededplacementintounsubsidizedjobsbeforeJobStart
ended.28Lackoffundingtocontinuecasemanagementandjobplacementactivitiesmayhaveimpeded
placementof
participants
into
unsubsidized
jobs
after
JobStart
ended:
research
suggests
that
the
durationandintensityofretentionservicesprovidedbyemploymentprogramsisrelatedto
employmentoutcomes,andfourprojectdirectorsreportedthatlackoffundingtocontinueplacement
activitieswasareasonwhysomeparticipantswerenotplacedinunsubsidizedjobs.29
StakeholderSatisfaction
Overall,respondentstothesurveysindicatedhighsatisfaction
withJobStart.
TheoverwhelmingmajorityofParticipantrespondents(91.7percent)andEmployerrespondents(85.1percent)
reportedthat
they
would
participate
in
JobStart
again.
30
AmongEmployerrespondents,84.9percentreportedthattheperformanceoftheJobStartgranteetheyworked
withwasgoodorverygood.31
Projectdirectorsreportedhighoverallsatisfactionwiththe2016Fund.Someweredissatisfiedwithcommunicationofprogramrulesandprocedures.
The2016FundcontinuedtoreceiveguidancefromIDHSaboutimplementingJobStartafterthe
27Analysisofprogramrecords.Allparticipantsworkedforatleast1hourinatransitionaljobaccordingtoprogramrecords.
28
Unemployment
was
10.6
percent
in
Chicago
in
September
2010,
the
month
that
JobStart
ended.
Across
the
United
States,
unemployment
wasevenhigherforAfricanAmericanswithloweducationalattainment,thetypeofindividualswhoconstitutedtheoverwhelmingmajorityof
JobStartparticipants.Persistenthighunemploymentamongthesepopulationssuggeststhateconomicconditionsin2010contributedtothe
difficultyJobStartparticipantsfacedfindingunsubsidizedemployment.SocialIMPACTResearchCenteranalysisofdatafromtheU.S.Bureauof
LaborStatistics,CurrentPopulationSurveyandIllinoisDepartment ofEmploymentSecurity,LocalAreaUnemploymentStatistics.29
Clymer,C.,Roder,A.,&Roberts,B.(2005September).Promotingopportunity:FindingsfromtheStateWorkforcePolicyInitiativeon
employmentretentionandadvancement.Philadelphia:Public/PrivateVentures.(p.21).30
AnalysisofJobStartParticipantandEmployerSurveyresponses.N=206participantsand74employers.Allparticipantrespondentswereemployed
foratleast1hourinatransitionaljob,andallemployerrespondentsemployedatleastoneparticipantforatleast1hourinatransitionaljob.31
AnalysisofJobStartEmployerSurveyresponses.N=73forquestionsaboutknowledgeofprogramrulesandprocedures,timelinessinplacing
participants,willingnesstohelpaddressproblemsituations,effectivenessinaddressingproblemsituations,supportgiventoparticipants,and
Overallsatisfaction,and71foraquestionaboutresponsivenesstophonecallsandemails.Allrespondentsemployedatleastoneparticipant
foratleast1hourinatransitionaljob.
JobStartwasanexcellent
experience.Itmadeasignificant
impactonoursummerprogram.
Iwouldstronglyadvocateforthis
program
to
continue.
It
not
only
impactedourbusinessand
programbutalsothelivesofthe
youngadultswhowewereable
tohire. JobStartEmployer
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23
programbegan,andthisappearstohavecontributedtoproblemscommunicatingrulesand
procedurestograntees.
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8/3/2019 JobStart Summary
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24
Comparison with Put Illinois to Work
AsprogramssupportedbytheTANFEF,JobStartandPITWhadsimilareligibilityrequirements.They
differedsubstantiallyindesign,timeframe,andscale.Theircontemporaneousoperationallowsfora
sideby
side
comparison
of
aTJ
program
with
asubsidized
employment
program.
32
ProgramDesign:SimilaritiesandDifferences
BothJobStartandPITWenrolledcustodialparentsandguardians,noncustodialparents,andyouthfrom
lowincomefamilies.Theydifferedontwoeligibilityrequirements:
JobStartparticipantsmusthaveresidedinoneofthedesignatedCCAs.Bycontrast,PITWparticipantscouldresideanywhereinIllinois.
JobStartdirectedgranteestoprioritizeenrollingparticipantswithmultiplebarrierstoemploymentandreferrelativelyworkreadyparticipantstoPITW.However,workreadiness
appearsnottohaveaffectedgranteedecisionsaboutreferringparticipantstoJobStartorPITW.
JobStartandPITWemployedsimilarorganizationalstructures,butdifferedsubstantiallyintermsof
supportiveservices,timeframe,andscale.
UnderPITW,IDHScontractedwithHeartlandHumanCareServices(HHCS),anIllinoisnonprofitwithexperienceoperatingTJprograms,tooverseetheprogramandserveastheemployerof
recordforparticipants.HHCScontractedwith26publicandnonprofitorganizations,called
subcontractors,torecruitparticipantsandplacethemwithemployers.Inthisway,HHCSandits
subcontractorsperformedsimilarfunctionstothe2016Fundanditsgrantees,althoughHHCS
notitssubcontractorsservedastheemployerofrecordandpaidparticipantwages.33
UnlikeJobStart,PITWdidnotrequiresubcontractorstoprovidesupportiveservicestoparticipants,
although
some
subcontractors
did
provide
some
supportive
services.
PITWoperatedforalongerdurationthanJobStart.ItbeganplacingparticipantsinsubsidizedemploymentinApril2010andwasextendedusingstatefundsaftertheSeptember30deadline
forusingTANFEFfunding.PITWendedinmidJanuary2011.34
PITWandJobStartemployeddifferentsystemsforpayingsubcontractorsandparticipants.PITWsubcontractorswerepaidaflat,onetimefeeforeveryparticipantplacedinasubsidizedjob.
HHCSadministeredparticipantpayroll,obviatingtheneedforavoucheringsystem.PITWalso
employedacentralizedonlinedatabasewhereallsubcontractorsenteredapplicantinformation,
placementinformation,andhoursforpayroll,resultinginstandardizedreimbursementprocess
acrossallsubcontractorsandgreatlyreducingpaperwork.TheseaspectsofthePITWpayment
processmadePITWrelativelysimpleforsubcontractors.
PITWoperatedonafargreaterscalethanJobStart,employingover27,000participantsin71of102Illinoiscounties.35
32TheSocialIMPACTResearchCenterisalsoevaluatingPITW.ThePITWdatainthischaptercomefromafewkeysourcesoftheongoing
evaluation:theprogramscentraldatabase,payrollrecords,andsurveysofparticipantsandemployersthatcontainedmanyofthesame
questionsastheJobStartsurveys.33
SocialIMPACTResearchCenter.(2010October).PutIllinoistoWorkevaluation:Anearlylook.Chicago:Author.(p.1315).34
PITWwasinitiallyextendeduntilNovember30,2010,onlyafewdaysbeforetheoriginalSeptember30expirationdate.Itwasthenagain
extendedbythestateafewdaysbeforethisnewNovemberexpirationdateuntilJanuary15,2011.35
SocialIMPACTResearchCenter.(2010October).PutIllinoistoWorkevaluation:Anearlylook.Chicago:Author.(p.5).
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25
ParticipantCharacteristics
ThecharacteristicsofJobStartparticipantswerecomparedtothoseofPITWparticipantsresidinginthe
JobStartCCAswhorespondedtoasurveyabouttheirexperienceswiththeprogram.
AmuchhigherproportionofJobStartparticipantswereunderage18,mostlikelybecauseofJobStarts
distinct
youth
programs.
36
AmongadultJobStartparticipants,amuchhigherpercentagedidnothaveahighschooldiplomaorGEDandamuchlowerpercentagehadsomecollege.37
JobStartandPITWparticipantsdifferedrelativelylittleonothercharacteristics.Outcomes
BecausePITWoperatedfromApril2010tomidJanuary2011,itallowedparticipantstoworkmuch
longerinsubsidizedemploymentthanJobStart.
Onaverage,PITWparticipantsacrossIllinoisworkedmorethantwicethenumberofhoursasJobStartadultparticipantsandmorethanfourtimesthenumberofhoursasJobStartyouth
participants.
OfJobStartandPITWparticipantswhorespondedtoasurvey,ahigherproportionof
PITWparticipantsstronglyagreedthatthe
programhelpedthemmeettheirfinancial
obligationsandbecomeemployable.38This
maybebecausePITWallowedparticipantsto
worklongerinsubsidizedemploymentand
paidahigherwage.
OfJobStartandPITWemployerswhoresponded
to
asurvey,
ahigher
proportion
of
PITWemployersreportedthatbusiness
performanceincreasedorsomewhatincreasedasaresultofemployingparticipants.39By
employingparticipantslonger,PITWemployersmayhavehadmoretimetousethemfor
activitiesthatincreasedbusinessperformance.
AlthoughPITWwasnotspecificallyintendedtohelpparticipantsfindunsubsidizedemployment,itmayhavehelpedparticipantsfindemploymentbyhelpingthemlearnandpracticesoftskills
andestablishanemploymentrecord.OfparticipantswhowerestillinaPITWjobwhenthe
programended,20percentwereknowntohaveenteredunsubsidizedemployment.
36AnalysisofJobStartandPITWprogramrecordsandPITWparticipantsurveyresponses.N=1,023JobStartadultprogramenrollees,478
JobStartyouthprogramenrollees,and3,671PITWparticipants.AllJobStartparticipantsworkedatleast1hourinatransitionaljob.37
AnalysisofJobStartandPITWprogramrecordsandPITWparticipantsurveyresponses.N=962JobStartadultprogramenrollees,483
JobStartyouthprogramenrollees,and118PITWenrollees.AllJobStartparticipantsworkedatleast1hourinatransitionaljob.38
AnalysisofJobStartParticipantSurveyresponsesandPITWparticipantsurveyresponses.N=215JobStartparticipantsand120PITW
participants.AllJobStartparticipantsworkedatleast1hourinatransitionaljob.39
AnalysisofJobStartEmployerSurveyresponsesandPITWemployersurveyresponses.N=70JobStartparticipantsand217PITWparticipants
foraquestionaboutproductivity,72JobStartparticipantsand219PITWparticipantsforaquestionaboutqualityofwork,72JobStart
participantsand217PITWparticipantsforaquestionaboutnumberofcustomersorclientsserved,72JobStartparticipantsand216PITW
participantsforaquestionaboutcustomerorclientsatisfaction,and71JobStartparticipantsand220PITWparticipantsforaquestionabout
workforcesatisfactionaboutworkload.AllJobStartrespondentsemployedatleastoneparticipantforatleast1hourinainatransitionaljob.
Thepositiveaspectofparticipatingin
both[JobStartandPITW]wasthatitgave
ahugearrayofpeopleachancetobein
theworkingclass.Thesepeoplevaried
fromsingleparents,exfelons,peoplewho
havenothadanyworkexperienceaswell
asthosewhohavebeendislocated
workers.Itgavethesepeopleasecond
chanceandforsomeafirstchance. JobStart Pro ram Sta Person
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26
Successes, Challenges, and Recommendations
Successes
Withinashortperiodoftime,JobStartrecruitedandtrainedalargenumberofparticipants,placedthemintotransitionaljobs,andhelpedthemaccesssupportiveservices.1,618participantscompletedjobreadinesstraining,andgranteesplaced1,518(93.8percent)into
transitionaljobs.ExperienceoperatingTJprogramsandjobreadinessandplacementprograms
forTANFrecipientshelpedgranteesstartuptheirJobStartprogramsunderthequicktimeline.
Theindividualsrecruited,trained,andplacedintotransitionaljobshadapronouncedneedforearnedincome,andsurveyresultssuggestthatlargeproportionsofparticipantshadbarriers
toemployment.Theaverageparticipantreportedhouseholdincomeof$760uponentering
JobStart.Commonlyreportedbarrierstoemploymentincludedlackofoveralljobskillsand
interpersonalskills,criminalrecords,andunmetneedsfortransportationandchildcare.
Theaverageparticipantworkedtheoverwhelmingmajorityofweeksavailablegivenhisorher
start
date.
On
average,
each
adult
program
participant
worked
9.1
weeks
in
atransitional
job,or87.6percentofthe10.4weeksavailabletotheaverageparticipantgivenherstartdate.
AveragemonthlyincomeearnedthroughJobStartwassubstantialrelativetoaveragehouseholdincomeuponprogramentry.Averagemonthlyincomeearnedbyadultparticipants
wasmorethandoubletheiraveragehouseholdincomeatJobStartentry,whileaveragemonthly
earningsofyouthparticipantswas78.5percentoftheiraveragehouseholdincomeuponentry.
ThemajorityofEmployerSurveyrespondentsreportedthatemployingJobStartparticipantsresultedinmoderatepositiveeffectsonbusinessperformance.Slightlymorethanhalfof
Employerrespondentstothereportedthatperformancesomewhatincreasedorincreasedin
theseareasasaresultofemployingJobStartparticipants.Thismaybebecausetheirbusinesses
were
relatively
financially
healthy
before
the
program
began,
and
because
the
average
JobStart
participantworkedarelativelyshortperiodoftime(8.4weeks)foranemployer.
Inadditiontoitsdirecteffectsonparticipantsandemployersintheprogram,JobStartmostlikelyaffectedotherbusinessesandtheiremployeesthroughoutCookCountythroughan
economicmultipliereffect.Assumingthatparticipantsspent70percentofincomeearned
throughJobStartintheretailsectorofCookCounty,JobStartwageswereassociatedwitha$5.1
millionincreaseindemandforgoodsandservicesacrossallsectors,a$1.2millionincreasein
householdearnings,andanincreaseinemploymentof44jobsacrossCookCounty.
ParticipantandEmployerSurveyrespondentsreportedthatparticipantssoftskillsimprovedfromthebeginningtotheendoftheirtransitionaljobs.ThepercentageofEmployer
respondentswhoratedparticipantsaspoor,verypoor,orfairinsixperformanceareasat
thebeginning
of
the
program
decreased
at
the
end
of
the
transitional
job,
while
the
percentage
whoratedparticipantsgoodorverygoodincreased.ThemajorityofParticipant
respondentsreportedtheyweresomewhatmorelikelyormorelikelytousecertainsoftskills
aftercompletingJobStart,andthatJobStartincreasedtheirattractivenesstoemployers,taught
themnewskills,introducedthemtousefulcontacts,andexposedthemtoanewtypeofwork.
ParticipantandEmployerSurveyrespondentsindicatedahighlevelofsatisfactionwithJobStart.MostParticipantrespondents(91.7percent)andEmployerrespondents(85.1percent)
reportedthattheywouldparticipateinJobStartorasimilarprogramifitwereofferedagain.
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27
Challenges
JobStartprovidedparticipantswithmuchneededearningsandappearstohavebenefitedbusinesses
directlyandindirectly.However,itdidnotmeetitsgoalfornumberofparticipantsplacedinto
transitionaljobs.Additionally,programrecordsfromimmediatelyafterJobStartendedindicatethatit
didnotmeetitsgoalfornumberofadultparticipantsplacedintounsubsidizedemployment,education,
ortraining
by
the
time
the
program
ended.
JobStartplaced1,518participantsintotransitionaljobs.Thisrepresents69.0percentoftheplanned2,200transitionaljobplacementsand70.5percentofthe2,154finaltransitional
employmentslotsallocatedbythe2016Fund.
Programrecordsindicatethat91.8percentofyouthenteredunsubsidizedemployment,education,ortraining.However,JobStartdidnotmeetits60percentplacementgoalforadults
bythetimetheprogramended:itplacedonly21.8percentofadultsintounsubsidized
employment,education,training,orsomecombinationofthoseactivities.
SevenprimaryfactorsappeartoexplainwhyJobStartdidnotmeetallofitsgoals:
1. TheTANFEFrequirementthatstatesmakeallreimbursableexpendituresbySeptember30,combinedwiththelatetimingofIllinoisapplicationforTANFEFfundingandlateexecutionof
theCSAbetweenIDHSandthe2016Fund,leftgranteeswithlessthanamonthtosetuptheir
JobStartprogramsinordertoprovideparticipantswiththemaximum16weeksofsubsidized
employmentpossibleunderJobStart.Thistimelineaffectedmultipleaspectsoftheprogram.
Severalprojectdirectorssaidthatthattheiragencieswouldhaveexpandedrecruitingeffortsif
moretimehadbeenavailable.Mostprojectdirectorssaidthatadditionaltimewouldhave
improvedtheirassessmentprocedures,enablingthemtoacquiremoreinformationabout
participantstoguideprovisionofcasemanagementandsupportserviceslaterintheprogram.
Mostimportantly,perhaps,thetimelineimpededtheachievementofplacementgoalsby
limitingthe
duration
of
transitional
jobs
for
many
participants.
While
no
consensus
exists
on
the
optimaltransitionaljobduration,mostTJprogramsoffer3to9monthsinatransitionaljob.For
example,inastudyofsixTJprogramsforTANFrecipientsandotherlowincomeindividuals,
participantswhofoundunsubsidizedjobsaveragedbetween3.9and8.2monthsinthe
programs.EarlierTJprogramsthatyieldedsustainedpositiveimpactsonemploymentand
earningsamongwelfarerecipientsincludedayearormoreofsubsidizedemployment.40By
contrast,JobStartadultprogramparticipantsspentonly2.3monthsonaverageintransitional
jobs.Forparticipantswithpoorinterpersonalskillsandunderstandingofworkplace
expectations,atransitionaljobmustaffordsufficienttimetolearnandpracticesoftskills,make
mistakes,receiveguidancefromcasemanagers,workplacesupervisors,andpeers,andimprove
theirperformance.ThehardenddateforJobStartmayhaveprecludedmostparticipantsfrom
havingsufficient
time
to
take
these
steps.
As
one
project
director
explained:
[A]TJprogramisabouttrials[and]errorsandmultiplechances.An
individualisinalearningprocesswhichsometimesmustallowforthemto
makemistakes,learnfromthemandmoveforward.[JobStart]forallintents
40Kirby,G.,Hill,H.,Pavetti,L.,Jacobsen,J.,Derr,M.,&Winston,P.(2002,April).Transitionaljobs:Steppingstonestounsubsidizedemployment.
Princeton,NJ:MathematicaPolicyResearch,Inc.NationalTransitionalJobsNetwork.(2010,January).(AppendixC).TheNationalSupported
WorkDemonstration(19751980)included12to18monthsofhighlystructuredpaidworkexperience,andtheAFDCHomemakerHealthAid
Demonstration(19831986)includedupto1yearofsubsidizedemployment.Bloom,D.(2010,February).Transitionaljobs:Background,
programmodels,andevaluationevidence.NewYork:MDRC.(Table1).
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8/3/2019 JobStart Summary
30/36
28
andpurposesdidnotallowforsuchlearningtohappenduetotherushed
natureoftheprogram.
Consistentwiththisexplanation,46.1percentof
EmployerSurveyrespondentsreportedthat
participantswhowerenotreadytohirewouldbe
readywithmoretimeinthetransitionaljob,including34.6percentwhosaidthatthese
participantswouldbereadywith2ormoremonths
inthetransitionaljob.
2. TherequirementthatgranteesrecruitparticipantsexclusivelyfromthedesignatedCCAsalmostcertainlyimpededtheirabilitytomeetJobStarts
transitionalplacementgoal.AmongGranteeStaffSurveyrespondents,37.0percentreported
difficultyrecruitingfromthedesignatedCCAs.Severalprojectdirectorsreportedthattheir