Transitional Jobs and TANF

Helping states meet work participation requirements and helping workers succeed

www.transitionaljobs.net

Transitional Jobs and TANF

Transitional Jobs (TJ) is a proven workforce solution to help states meet

TANF requirements while providing hard-to-employ TANF parents with

experiential, on-the-job development, to learn how to succeed in work.

What is Transitional Jobs?

Transitional Jobs (TJ) is a workforce strategy designed to overcome employment obstacles by using

time-limited, wage-paying jobs that combine real work, skill development, and supportive services,

to transition participants successfully into the labor market.

TJ program participants should not displace workers in the for-profit or nonprofit sectors.

History Of Transitional Jobs

1970s: – Public Service Employment Program - created 150,000

transitional jobs for unemployed favoring veterans, those with little or no job training, and unskilled youth.

– CETA programs that created subsidized jobs in public and nonprofit sectors.

– National Supported Work Demonstration – provided individuals with severe employment problems with work experience of a year or so, under close supervision and gradually increasing demands.

1990’s: Welfare to Work Program – many states and cities launched Transitional Jobs programs serving long-term welfare recipients

2000’s: Prisoner Reentry –states and cities began piloting transitional jobs programs for people coming out of prison with great success

Transitional Jobs Program Elements

Orientation & Assessment

Job Readiness/Life Skills Classes

Case Management Support

Transitional Job - Real Work Experience

Unsubsidized Job Placement & Retention

Linkages to Education and Training

Transitional Job Detail

Goal is to provide real work experiencesupported with wages:• Time limited: Lasts 3-9 months (typically 3-4 months)• Subsidized jobs in a non-profit, for profit, and/or

government setting • Work 20-35 hours per week • Wage is usually state or Federal minimum wage• There is weekly review of job performance reports• Support to manage barriers

Transitional Job Detail, Continued

As paid employees, TJ participants are subject to: Minimum wage and other Fair Labor Standards Act

protections

Pay into the Social Security System, thus building quarters of work needed for future eligibility

Qualify potentially for EITC, Child Tax Credit, the new Making Work Pay Tax Credit

Qualify potentially for Unemployment Insurance

Transitional Jobs Program Structures

• Scattered Site – Participants work in for-profit, non-profit or government sites with 1-2 workers per site.

• Work Crew – Crews of 5-7 people work on a project often within maintenance, janitorial, parks, and community renewal projects.

• Social Enterprise – Participants work as an employee of the product or service revenue generating arm of an organization.

How TJ Works for Hard-to-Employ TANF Recipients

Coordinates linkages to community supports (e.g. child care)

Strengthens job placement with an employer reference

Pays wages, Social Security, income taxes and makes eligible for EITC

Builds confidence with success for paid work

Reinforces soft skills to increase job retention

Transitional Jobs

Budgeting for Transitional Jobs programs

Program costs range from $6-10,000 reflecting: • Wages for the Transitional Job (Min. wage x 30 hours)x(targeted

weeks, typically 12-24 weeks);

• Staff costs (salary, fringe, office rent, transportation, phones, computers) for TJ site development, case management, job readiness training and placement, retention services;

• Supportive services (transportation, tools, work clothes, counseling, financial literacy, GED); and

• Any incentive payments (retention, TJ worksite mentor).

Return on Investment

People who have never worked or who have little work experience become gainfully and successfully employed, decreasing reliance on public assistance and increasing family stability.

It is estimated that for public assistance recipients in New York, a $17 million investment in TJ will result in state/local cost savings of $60 million. Fiscal Policy Institute, 2008

TJ programs are also stimulative, providing much-needed earned income that stimulates communities by getting money to low-income people who spend it rapidly to meet their basic needs.

State Example: Washington

• Community Jobs (CJ) Program began in 1997.

• Administered by the Dept. of Community, Trade and Economic Development (CTED).

• CTED contracts with 17 sites, with 19 subcontractors in counties across the state .

• An average of 2,400 TANF recipients enroll in CJ per year, and they expect to serve 3,000 this year.

Washington TJ success

• Community Jobs Program moves people from welfare to a career track.

• When they move into unsubsidized work, participants are earning around $9.00 per hour.

• Average income of post-CJ workers increased 60% during first two years in workforce. Economic Opportunity Institute, April 2002

• Participants income was 148% higher than their pre-CJ income. Economic Opportunity Institute, April 2002

Resources to help start TANF TJ programs

A number of resources are posted at www.transitionaljobs.net including:

Washington State Community Jobs: A Case Example of Statewide Transitional Jobs Efforts Serving TANF Recipients

TANF Transitional Jobs Program Scope of Work. Transitional Jobs Program RFP Example Applicant Scoring Guide Based Upon the RFP Requirements Performance Payment Schedule Example Transitional Jobs Quality Assessment Tool Transitional Jobs Program Cost Estimation Table

National Transitional Jobs Network (NTJN)

The NTJN exists to influence audiences to ensure that policies account for the hard-to-employ, that the public understands

the need to invest in these services, that programs are able to effectively serve as many individuals as possible, and that

best practices and technical assistance are widely shared and implemented throughout the network.

Technical Assistance State and Federal Advocacy Monthly Newsletters National Conference

National Transitional Jobs Network, Continued

The NTJN is made possible through the support of The Joyce Foundation, The Annie E. Casey Foundation, The Mott Foundation and Network members.

Heartland Alliance in Chicago, IL has hosted the NTJN since 2003.

More information can be found at www.transitionaljobs.net