RELEASE OF REPORT HIGHLIGHTING MAJOR IMPACT OF COMMUNITY-BASED JOB TRAINING IN THE COMMONWEALTH

RELEASE OF REPORT HIGHLIGHTING MAJOR IMPACT OF

COMMUNITY-BASED JOB TRAINING IN THE COMMONWEALTH

Independent Groundbreaking Report Documents Significant Taxpayer Savings

January 26, 2016- Today, members of the Job Training Alliance (JTA), a network of twenty non-profit, community-based, workforce development organizations, released the findings of a first of its kind study demonstrating that job training provides enormous benefits to recipients and significant cost savings to the Commonwealth. The report has major implications for those interested in assisting unemployed and underemployed individuals in Massachusetts as well as for those interested in cost-effective state government.

Under the banner, “Job training works, pays and saves,” the report found that 76% of the graduates of the 12 participating job training programs, examined over the course of one year, were employed following graduation.  These results are all the more impressive given that nearly all of the participants had significant barriers to employment such as limited English, inconsistent work histories and lack of computer and occupational skills.

Funded by a grant from Skillworks and conducted by nonprofit strategy and assessment firm Root Cause, the report found that on average, formerly unemployed individuals who found work following completion of a training program earned $13.95 per hour- a wage significantly higher than the current or even future Massachusetts minimum wage.

Moreover, the report found that job training also benefits those who are already employed in low-wage dead end jobs. Participants who were employed at the time of their training saw a 65% increase in their earnings following completion of their training for an average of $14.20 per hour. 

Employers who work with Job Training members explained why they support job training as well as the higher wage for graduates of these programs.  “I have found the experience with job training programs to be enriching from both a personal and professional standpoint,” says Mitchelle Frederick, Marketing Coordinator of Peabody Properties.  “Job training programs send us great candidates for hire.  And it is so rewarding to have such an impact on someone’s life, with the goal toward economic self-sufficiency.  A win-win for Peabody Properties!”  Carmine Guarino, Senior Vice President at Citizens Bank, felt similarly, “Job training providers send us well trained candidates that met all our hiring specifications, savings us time and money on recruitment.”  

Sunny Schwartz of the Asian American Civic Association, a provider of job training services, said, “Without job training, our clients would be unemployed or stuck in part-time low-wage jobs. With job training, they launch excellent careers which dramatically increase their lifetime earnings, turning them from being reliant on unemployment insurance or public benefits into tax paying citizens.”

The report also found that the benefits of job training extend well beyond the individual participant or the employer who hire them. Not only did those studied see significant increases in the wages they earned, government saw a 515% increase in taxes paid and, perhaps just as notable, a 67% reduction in their use of public benefits.  The report comes a day after Governor Baker announced that his budget will provide grants to community-based organizations and others that partner with businesses to develop job training and employment opportunities for populations that face higher unemployment rates.

“One of the first Executive Orders Governor Baker signed created the Task Force on Populations Facing Chronically High Rates of Unemployment, which I chaired.  We, in the Baker administration, wanted to look at the reasons why certain populations, such as African-Americans, Latinos/Hispanics, recently returned veterans, and people with disabilities face higher unemployment rates,” Secretary Ronald L. Walker, II said.  “Through our work on the Task Force we reconfirmed the vital role community-based organizations play in helping people with barriers to employment get the skills they need to find good jobs.”

Shukrullah Fnu, a graduate of job training provider Asian American Civic Association, shared how he is now living his dream of working in the banking industry in Massachusetts.  Originally from Afghanistan, Fnu worked as an interpreter with the U.S. Army in Afghanistan during combat operations.  Fnu enrolled and completed AACA's Careers in Banking & Finance Training Program. "I learned a lot of things in that program about banking regulations, policies and procedures, cash handling methods, and customer service..." he said. "This was my dream to work in the bank. I love my job, I love the environment and job training helped me to reach my dreams."