New York has reclaimed many jobs lost in the midst of the COVID-19 pandemic, with some industries expanding amid a changing economic landscape. But unemployment and inequality remain high, and there is often a mismatch between employers seeking labor to drive growth in areas such as healthcare, technology and the life sciences and those who need jobs. It’s a challenge and an opportunity that Mayor Eric Adams often talked about when he ran last year.
Against this backdrop, staff development service providers — career services programs and many additional educators — have seen their budgets cut in recent years, while demand for the social protection services they provide has skyrocketed. The situation has created a “pressure cooker” environment for the industry, according to a new survey by the New York City Employment and Training Coalition (NYCETC), the Jobs Training Institute and New Schools.
“Due to the pressure of the pandemic, supplier budgets have been slashed, making it difficult for some (or many) to survive,” the report said, citing city, state and philanthropic funding cuts.
Annie Garneva, acting CEO of NYCETC, said that as the largest contributor to the workforce program, the city has a duty to intervene. “This report, and our experience over the past two years, reaffirms that our City still has a lot of work to do to ensure that every New Yorker has the opportunity to acquire the skills and training they need to thrive,” she said, accompanying the report. wrote in a statement.
According to the survey, the most common type of employment service is job placement. Organizations also often offer industry training, mid-career “skills”, and digital and financial literacy.
In the 2021 NYCETC Supplier Survey, 96% of respondents said they experienced a drop in revenue in the first year of the pandemic. Many of them are currently struggling to provide critical services to their clients, which include the lowest income New Yorkers, immigrants, public housing residents, justice professionals, and women who have been evicted from New York. , shows a new study. . The labor force ratio is higher than that of men. For workforce development organizations that also provide direct cash assistance or housing services, 90% and 88%, respectively, are able or unable to meet demand.
The combination has put pressure on workforce development departments, making it difficult to retain low-paid employees and clients, many of whom are now forced to forego vocational training to pay their bills, and the pandemic has prevented people from focusing. Potential benefits for New York City’s long-term economic prosperity.
“As the Workforce Report highlights, the New York City Workforce Development Community has played and will continue to play an important role in strengthening the world’s most dynamic economy,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. accompany the release of the report. “The administration looks forward to working with the New York Jobs and Training Coalition and its members to advance the common goal of building a workforce that can not only recover from the effects of the pandemic, but thrive in its aftermath.”
Workforce development has been a recurring theme in Adams’ statements about the economy and the plight of marginalized New Yorkers, and he promises to be a major issue. Part of his economic recovery “plan” is dedicated to supporting the workforce through investments in career development, adult education, related services, and worker protection. While many of the proposals are yet to be implemented, labor experts generally agree on the spirit behind them.
“Producing the quality workers of the future cannot stop because of COVID-19,” Adams told reporters in August after announcing a plan to hire 2,300 construction and industrial workers. “You can’t let the city go because of the crisis.” Pause.”
While the city’s new FY 2023 (FY23) budget “returns funding levels to FY 2020 levels, the results of the report show that financial pressures and their consequences are even harder to overcome,” according to a new workforce report. should be provided by the respondents of this survey”.
Nearly two-thirds of the 143 workforce development organizations surveyed in the new report provide services that go beyond career and employment programs. City funds account for 39 percent of the budget revenues of these multi-vendor service providers and 25 percent of workforce-only organizations, with the rest coming from state, federal, and private funding. In a 2021 survey, 64% of respondents who received city funding said they were seeing a reduction in city contracts, and 72% said they were seeing a reduction in city council discretionary funding.
Nearly a third of respondents to the new survey said funding and staffing have become more difficult during the pandemic. The report states that the lack of competitive salaries and the personal nature of many training programs can lead to shortages. It notes that despite a disproportionate number of people with a bachelor’s degree or higher, 58% of workforce development professionals in 2020 were making less than $55,000 a year. Black, Hispanic, and Asian workers are more likely to earn below this threshold than their white counterparts.
While multiservice agencies have experienced a boom in their vital services, they have struggled to attract clients for workforce development programs. The survey shows that 42% of career, college, and employment plans fall short.
The report attributed the low demand to the need for direct or “survival work” employment, as well as a lack of additional support, such as childcare or scholarships, to help low-income New Yorkers enroll in training programs.
Restrictions on most public funding sources often prevent organizations from providing a full range of services. These conditions, along with staff shortages, are making it difficult for HR providers to adjust their programs to accommodate a mixed office environment and meet the new demands of a growing sector. 39% of respondents said updating the curriculum for the post-pandemic economy is a moderate to extreme challenge.
“You can’t continue your education and employment if you’re not sure if you’ll have housing next month,” said Eli Dworkin, editorial and policy director for the Center for the Urban Future, a research and advocacy center. a group that focused on economic opportunities not covered in the study.
“The effectiveness of the services of these providers really depends on meeting the full range of needs that their customers face. It’s really impressive,” Dvorkin said.
Mayor Adams has made workforce development a key component of his economic recovery program, which is still underway.
“While the issues highlighted in this report reflect many labor issues across the country, Mayor Adams is committed to ensuring that all New Yorkers receive a living wage and participate in the prosperity of our city,” press release said in a statement. Mayor’s Secretary, emailed to Gotham. communiqué.
“That’s why this administration is prioritizing strategic collaboration between City agencies and key external partners,” the spokesperson wrote. of all citizens as the highest priority.”
In an economic recovery “plan” released in March, the mayor set goals to expand childcare services, high-speed internet, financial counseling and benefits for participants in the employment program. A few months later, the government unveiled another plan, fueled by new public funding, to expand child care in underserved areas, which is directly related to job opportunities. The goal is to increase the number of childcare centers by 41,000 over two years (to bring the city’s total childcare spending to $2 billion over four years) with an additional $800 million investment.
Adams set lofty goals for this campaign, including a digital portal to match local talent and connect employers with job seekers, internships and apprenticeships through public-private partnerships, engagement and business development, DOE and CUNY courses, a free community. college and a commitment to allocate 10% of the city’s economic development funding to workforce programs. Some of these proposals have made little progress and it is not clear to what extent the government has implemented them.
Adams’ recovery plan also includes expanding digital literacy and adult education through CUNY and the public library system, as well as tech, healthcare and STEAM careers. And, in response to a call from vendors, the plan highlights the need to break silos in the workforce development ecosystem, which is currently funded through separate programs from 21 city agencies. This makes it difficult to align career services with industry trends and scale effective programs. Adams has recently given supporters more reason to hope that the government will be able to follow through.
On August 15, the mayor announced a new program called Pathways to Careers in Industry and Construction (PINCC), which is supported by $18.6 million in federal grants and aims to grow to 2,300 low-income New Yorkers. industry – for public assistance recipients and NYCHA residents – in high-paying or union positions.
Adams also signed an executive order to streamline city agencies that provide these services.
Executive Order 22 requires the Mayor’s Office of Talent and Workforce Development to develop strategies and reports for inclusive workforce development and makes it responsible for coordinating contracts between multiple agencies. The order moves industry partnerships from Small Business Services to the office portfolio. He also created an interagency cabinet for talent and workforce development, and formalized a “Future of Workers” task force made up of industry leaders, educators, labor suppliers, and workers to guide the decision-making process.
The office’s new powers (“it’s not one of the most powerful city halls,” he said) could bolster its position in the workforce, Dvorkin said.
“So far, these are not significant changes, but they show a real intention to build a more reliable infrastructure in order to make future investments more efficient and, ideally, more responsible,” he said.
He added that the next big question is: “Can the city come up with a budget for the next fiscal year that invests significant new resources in workforce development and helps meet the city’s commitment to the most effective programs?”
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Post time: Oct-02-2022