jobstart summary

8/3/2019 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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1

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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2

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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3

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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4

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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5

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.


8/36

6

$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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7

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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8

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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9

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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10

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


13/36

11

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.


14/36

12

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


15/36

13

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.


16/36

14

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.


17/36

15

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.


18/36

16

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.


19/36

17

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.


20/36

18

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


21/36

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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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).


30/36

28

andpurposesdidnotallowforsuchlearningtohappenduetotherushed

natureoftheprogram.

Consistentwiththisexplanation,46.1percentof

EmployerSurveyrespondentsreportedthat

participantswhowerenotreadytohirewouldbe

readywithmoretimeinthetransitionaljob,including34.6percentwhosaidthatthese

participantswouldbereadywith2ormoremonths

inthetransitionaljob.

2. TherequirementthatgranteesrecruitparticipantsexclusivelyfromthedesignatedCCAsalmostcertainlyimpededtheirabilitytomeetJobStarts

transitionalplacementgoal.AmongGranteeStaffSurveyrespondents,37.0percentreported

difficultyrecruitingfromthedesignatedCCAs.Severalprojectdirectorsreportedthattheir

jobstart summary

Documents