job training

THE PROBLEM

Wages earned by the lowest-income DC residents have barely changed over the past 30 years, while wages for top earners have increased substantially. Median-wage workers have seen moderate gains. In 2006, the gap between the highest paid and lowest-paid workers reached its largest level since 1979.⁴

Low-wage working DC residents⁵ earned an average of $11.34 an hour in 2007. This was 8 percent higher, after adjusting for inflation, than hourly earnings for this group in 1979. In contrast, high-wage DC residents earned $34.77 an hour on average in 2007. This was 33 percent higher, after adjusting for inflation, than hourly earnings for this group in 1979.

Research has demonstrated the success of well-implemented training programs tailored to a specific industry sector’s workforce needs. A recent study found that participants of “sector-focused” training worked more hours in jobs with higher wages and benefits than did their peers in a control group.⁶ This research suggests that DC’s low-income residents will have a better chance finding a high-paying job if they participate in skills training relevant to Washington’s dominant industries. While there are some individual organizations running sector-focused training, the District has not invested significantly in the development of such programs.

WHAT IS BEING DONE NOW

Education and skills training tied to the District’s dominant industries are critical to helping working-poor families get better-paying jobs. Yet there is a shortage of training targeted to Washington’s growth industries.

• The District provides job search assistance and job training at its “One-Stop” centers, using federal funds. However, these programs provide training to only a fraction of adults needing assistance. In recent years, fewer than 1,000 residents have completed training under these programs
• DC’s FY 2010 budget included new local funding for adult training, but mid-year budget cuts have put that funding at risk.
• The District supports some work programs aimed at adults with severe barriers to work, including the Transitional Employment Program operated by the Department of Employment services and job readiness services for participants in the city’s TANF program. These programs can help residents prepare to enter the labor market, but they generally do not provide training that prepares residents for living-wage jobs.
• The University of the District of Columbia (UDC) recently established a community college division—the Community College of the District of Columbia. Previously, Washington was the only major city in the U.S. without a community college. These institutions are a cornerstone of education and career training for low-income adults across the country. As a new institution, the Community College of DC is currently in a growth phase and is looking to expand its career-specific training programs.

LEARN MORE

• DC Appleseed and DC Fiscal Policy Institute’s Working Poor Families Project
• Greater Washington Research at Brookings
• DC Jobs Council at Wider Opportunities for Women
• Greater Washington Workforce Development Collaborative
• Building a Strong, Independent DC Community College, JBL Associates, 2009
• Hometown Prosperity: Increasing Opportunities for DC’s Low-Income Working Families, DC Appleseed and DC Fiscal Policy Institute, April 2008
• Bridging the Gaps in DC: Strategies to Support Low-Income Working Families, DC Fiscal Policy Institute, November 2008
• Voices for Change: Perspectives on Strengthening Welfare-to-Work from DC TANF Recipients, So Others Might Eat and DC Fiscal Policy Institute, November 2009
• Reducing Poverty in Washington, D.C. and Rebuilding the Middle Class from Within, Greater Washington Research at Brookings, 2007

[4] Ed Lazere, “DC’s Two Economies: Many Residents Are Falling Behind Despite the City’s Revitalization,” DC Fiscal Policy Institute, October 24, 2007.

[5] Low-wage is defined as the 20th percentile wage, meaning that 20 percent of DC workers earn this wage or less. High-wage is defined as the 80th percentile wage, meaning that 20 percent of DC workers earn this wage or more. Wage information from an Economic Policy Institute analysis of Current Population Survey data.

[6] Sheila Maguire, Joshua Freely, Carol Clymer, and Maureen Conway. “Job Training that Works: Findings from the Sectoral Employment Impact Study,” (Public/Private Ventures, May 2009).