[House Hearing, 111 Congress]
[From the U.S. Government Publishing Office]
ENSURING ECONOMIC OPPORTUNITIES
FOR YOUNG AMERICANS
=======================================================================
HEARING
before the
COMMITTEE ON
EDUCATION AND LABOR
U.S. House of Representatives
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
HEARING HELD IN WASHINGTON, DC, OCTOBER 1, 2009
__________
Serial No. 111-34
__________
Printed for the use of the Committee on Education and Labor
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COMMITTEE ON EDUCATION AND LABOR
GEORGE MILLER, California, Chairman
Dale E. Kildee, Michigan, Vice John Kline, Minnesota,
Chairman Senior Republican Member
Donald M. Payne, New Jersey Thomas E. Petri, Wisconsin
Robert E. Andrews, New Jersey Howard P. ``Buck'' McKeon,
Robert C. ``Bobby'' Scott, Virginia California
Lynn C. Woolsey, California Peter Hoekstra, Michigan
Ruben Hinojosa, Texas Michael N. Castle, Delaware
Carolyn McCarthy, New York Mark E. Souder, Indiana
John F. Tierney, Massachusetts Vernon J. Ehlers, Michigan
Dennis J. Kucinich, Ohio Judy Biggert, Illinois
David Wu, Oregon Todd Russell Platts, Pennsylvania
Rush D. Holt, New Jersey Joe Wilson, South Carolina
Susan A. Davis, California Cathy McMorris Rodgers, Washington
Raul M. Grijalva, Arizona Tom Price, Georgia
Timothy H. Bishop, New York Rob Bishop, Utah
Joe Sestak, Pennsylvania Brett Guthrie, Kentucky
David Loebsack, Iowa Bill Cassidy, Louisiana
Mazie Hirono, Hawaii Tom McClintock, California
Jason Altmire, Pennsylvania Duncan Hunter, California
Phil Hare, Illinois David P. Roe, Tennessee
Yvette D. Clarke, New York Glenn Thompson, Pennsylvania
Joe Courtney, Connecticut
Carol Shea-Porter, New Hampshire
Marcia L. Fudge, Ohio
Jared Polis, Colorado
Paul Tonko, New York
Pedro R. Pierluisi, Puerto Rico
Gregorio Kilili Camacho Sablan,
Northern Mariana Islands
Dina Titus, Nevada
Judy Chu, California
Mark Zuckerman, Staff Director
Sally Stroup, Republican Staff Director
C O N T E N T S
----------
Page
Hearing held on October 1, 2009.................................. 1
Statement of Members:
Kline, Hon. John, Senior Republican Member, Committee on
Education and Labor........................................ 5
Prepared statement of.................................... 5
Miller, Hon. George, Chairman, Committee on Education and
Labor...................................................... 1
Prepared statement of.................................... 3
Questions for the record................................. 48
Statement of Witnesses:
Austin, Algernon, director, Program on Race, Ethnicity and
the Economy, Economic Policy Institute..................... 29
Prepared statement of.................................... 31
Oates, Hon. Jane, Assistant Secretary for the Employment and
Training Administration, U.S. Department of Labor.......... 7
Prepared statement of.................................... 10
Responses to questions submitted......................... 48
Segal, Matthew, executive director, Student Association for
Voter Empowerment (SAVE)................................... 12
Prepared statement of.................................... 14
Stoneman, Dorothy, President and Founder, YouthBuild USA..... 18
Prepared statement of.................................... 20
Additional submissions:
Ely Flores, ``From Violent to Activist''............. 22
Alischa Ann Singleton, Hope Center, Inc., Gretna, LA. 24
Wayne Whack, YouthBuild Philadelphia Charter School,
Philadelphia, PA, Class of 2006.................... 24
Wilfried Plalum, Youthbuilding Alternatives,
Portland, ME, Class of 1995........................ 25
Wilson, D. Mark, principal of Applied Economic Strategies,
LLC........................................................ 26
Prepared statement of.................................... 28
ENSURING ECONOMIC OPPORTUNITIES
FOR YOUNG AMERICANS
----------
Thursday, October 1, 2009
U.S. House of Representatives
Committee on Education and Labor
Washington, DC
----------
The committee met, pursuant to call, at 9:58 a.m., in room
2175, Rayburn House Office Building, Hon. George Miller
[chairman of the committee] presiding.
Present: Representatives Miller, Kildee, Scott, McCarthy,
Kucinich, Holt, Sestak, Loebsack, Altmire, Shea-Porter, Fudge,
Chu, Kline, Petri, Ehlers, Platts, Guthrie, Roe, and Thompson.
Staff present: Aaron Albright, Press Secretary; Tylease
Alli, Hearing Clerk; Tico Almeida, Labor Counsel (Immigration
and International Trade); Jody Calemine, General Counsel; Lynn
Dondis, Labor Counsel, Subcommittee on Workforce Protections;
Adrienne Dunbar, Education Policy Advisor; David Hartzler,
Systems Administrator; Ryan Holden, Senior Investigator,
Oversight; Jessica Kahanek, Press Assistant; Celine McNicholas,
Labor Policy Advisor; Alex Nock, Deputy Staff Director; Joe
Novotny, Chief Clerk; Rachel Racusen, Communications Director;
Meredith Regine, Junior Legislative Associate, Labor; James
Schroll, Junior Legislative Associate, Labor; Ajita Talwalker,
Education Policy Advisor; Michele Varnhagen, Labor Policy
Director; Daniel Weiss, Special Assistant to the Chairman; Mark
Zuckerman, Staff Director; James Bergeron, Minority Deputy
Director of Education and Human Services Policy; Andrew Blasko,
Minority Speech Writer and Communications Advisor; Casey
Buboltz, Minority Coalitions and Member Services Coordinator;
Cameron Coursen, Minority Assistant Communications Director;
Kirsten Duncan, Minority Professional Staff Member; Ed Gilroy,
Minority Director of Workforce Policy; Rob Gregg, Minority
Senior Legislative Assistant; Richard Hoar, Minority
Professional Staff Member; Alexa Marrero, Minority
Communications Director; Jim Paretti, Minority Workforce Policy
Counsel; Susan Ross, Minority Director of Education and Human
Services Policy; and Linda Stevens, Minority Chief Clerk/
Assistant to the General Counsel.
Chairman Miller [presiding]. A quorum being present, the
committee will come to order. We are kind of caught between two
situations. Both parties, I think, are in caucuses, and we also
anticipate relatively early votes, so I would like to go ahead
and members will be showing up.
But I would like to go ahead and begin this morning's
hearing, the topic of which is ensuring economic opportunities
for young Americans. And I want to thank our witnesses for
being here and I will introduce you all in a moment.
The Education and Labor Committee meets this morning to
examine strategies for ensuring better economic opportunities
for young Americans. The summer or part-time job has
traditionally been a gateway to future success for generations
of Americans.
In fact, every member of the committee can probably look
back fondly on the first job at the corner grocery during high
school or some other job to put gas money in your pocket every
week. In my case, working back-breaking summer jobs at the
local refinery helped me pay for college and escape that
experience debt free. These job opportunities not only provided
me the cash to help pay for school and to save for the first
car, but they also give young workers an introduction to what
it means to work with others, for others, on a shift and try to
make a living.
Unfortunately, these opportunities are scarcer for today's
young workers than ever before. One reason may be that workers
are retiring later because of the shrinking pension benefits
and 401(k) accounts. This means fewer newer opportunities for
younger workers because older workers may stay on longer in
order to rebuild their retirement security.
The dramatic fall in youth unemployment over the last
decade is startling. Sixty percent of 16-to 24-year-olds were
employed in 1999; today, fewer than 48 percent have a job--the
lowest level since World War II.
This situation is grim, especially when you take into
account underemployment. During the first quarter of 2009,
workers younger than 25 had an underemployment rate of 32
percent. That is nearly 20 percent higher than workers aged 35
to 54.
The financial crisis has had a severe impact on employment
prospects for millions of Americans, not just the young.
Indeed, because of the horrible economy, younger workers are
now competing with more experienced workers for positions
traditionally the domain of the young and less experienced.
Until the economy as a whole turns around, younger workers will
continue to be hit the hardest.
But the recession has only made a bad situation worse for
young workers. The falling overall unemployment rate among
younger workers 16 to 24 began more than a decade ago and has
declined nearly every year. Even in periods of economic
stability, fewer young people do not make the transition to the
workforce; they face challenges of completing high school and
obtaining skills that they need to succeed.
For these young people, alternative education and job
training models provide a critical link to the workplace. Today
we will hear about some of these programs and how they are
trying to meet the needs of our nation's most vulnerable youth.
Teens looking for summer jobs have been especially hard-
hit. The unemployment rate among 16-to 19-year-olds during the
summer has increased by 113 percent compared to 10 years ago.
By looking at this data, it is clear that the drop in
employment is not just the result of a sudden shock to the
system, but part of a larger trend. You cannot ignore the fact
that 20 percent fewer younger workers are participating in the
labor market today than in 1999. This tells me that more needs
to be done; perhaps we need to rethink strategies to help
younger workers find meaningful employment in any economy.
The consequence of reduced work opportunities among young
Americans means fewer long-term employment prospects, less
earnings, and decreased productivity. Fewer work opportunities
also result in higher debt--more student loans, credit card
debts, and so on.
If these dramatic trends are not reversed, our nation faces
a potential generation of youth disconnected from the
employment market. That is why as part of the American Recovery
and Reinvestment Act we invested an additional $1.2 billion to
beef up youth job programs, including summer employment
opportunities, under the Workforce Incentive Act.
The additional funding of summer jobs has proved
successful. In fact, the Government Accountability Office found
that most states they reviewed either met or exceeded the
state's goals by nearly a quarter of a million summer jobs
created.
The House also has approved legislation to make an
unprecedented $10 billion investment to help make community
colleges part of our economic recovery. The Student Aid and
Fiscal Responsibility Act will help prepare young workers for
jobs in the future and build 21st century workforces by
strengthening the partnerships among community colleges,
businesses, and job training programs that will align community
college curricula with the needs of high-wage, high-demand
industries.
Today's hearing will also give us an opportunity to look at
other programs that serve young workers and look at ways we can
expand the program that are making real differences. We will
also explore new strategies, some developed by young people
themselves, to ensure that younger workers can compete in the
job market.
I thank the witnesses for joining us, and at this point I
would like to recognize Congressman Kline, the senior
Republican on the Education Committee.
[The statement of Mr. Miller follows:]
Prepared Statement of Hon. George Miller, Chairman, Committee on
Education and Labor
The Education and Labor Committee meets this morning to examine
strategies for ensuring better economic opportunities for young
Americans.
A summer or part-time job has traditionally been the gateway to
future success for generations of Americans.
In fact, every member on this committee can probably look back
fondly on that first job at the corner grocery during high school that
may have put a little gas money in your pocket every week.
In my case, working a back-breaking summer job at the local
refinery helped me pay for college and escape debt free.
These job opportunities not only provide needed cash to help pay
for school or save for a first car; but, they also give young workers
an introduction to what it means work with others on a shift and try to
make a living.
Unfortunately, these opportunities are scarcer for today's young
workers than ever before.
One reason may be that workers are retiring later because of
shrinking pension benefits and 410(k) accounts. This means fewer new
opportunities for younger workers because older workers may stay on
longer in order to rebuild their retirement security.
The dramatic fall in youth employment over the last decade is
startling. Sixty percent of 16 to 24 year-olds were employed in 1999.
Today, fewer than 48 percent have a job; the lowest level since
World War II.
This situation is grim, especially when you take into account
under-employment.
During the first quarter of 2009, workers younger than 25 had an
under-employment rate of 32 percent. That is nearly 20 points higher
than workers ages 35 to 54.
The financial crisis has had a severe impact on the employment
prospects of millions of Americans, not just the young.
Indeed, because of the horrible economy, younger workers are now
competing with more experienced workers for positions traditionally the
domain of the young and less experienced.
Until the economy as a whole turns around, younger workers will
continue to be hit the hardest.
But the recession has only made a bad situation worse for younger
workers.
The falling overall employment rate among young workers 16 to 24
began more than a decade ago and has declined nearly every year.
Even in periods of economic stability, fewer young people do not
make the transition to the workforce. They face challenges completing
high school and obtaining the skills they need to succeed.
For these young people, alternative education and job training
models provide a critical link to the workplace. Today, we will hear
about some of these programs and how they are trying to meet the needs
of our nation's most vulnerable youth.
Teens looking for a summer job have been especially hard-hit. The
unemployment rate among 16 to 19 year-olds during the summer has
increased by 113 percent compared to ten years ago.
By looking at this data, it is clear that the drop in employment is
not just the result of a sudden shock to the system, but a part of a
larger trend.
You cannot ignore the fact that 20 percent fewer younger workers
are participating in the labor market today than in 1999.
This tells me that more needs to be done or perhaps we need to
rethink strategies to help young workers find meaningful employment, in
any economy.
The consequences of reduced work opportunities among young
Americans mean fewer long-term employment prospects, less earnings, and
decreased productivity.
Fewer work opportunities also result in higher debts--more student
loans, credit card debts, and so on.
If these dramatic trends are not reversed, our nation faces the
potential of a generation of youth disconnected from the employment
market.
That's why as a part of the American Recovery and Reinvestment Act,
we invested an additional $1.2 billion to beef up youth jobs programs,
including summer employment opportunities, under the Workforce
Investment Act.
The additional funding for summer jobs have proved successful.
In fact, the Government Accountability Office found that most
states they reviewed either met or exceeded the state's goals with
nearly a quarter million summer jobs created.
The House also just approved legislation to make an unprecedented
$10 billion investment to make community colleges part of our economy's
recovery.
The Student Aid and Fiscal Responsibility Act will help prepare
young workers for the jobs of the future and build a 21st century
workforce by strengthening partnerships among community colleges,
businesses and job training programs that will align community college
curricula with the needs of high-wage, high-demand industries.
Today's hearing will also give us an opportunity to look at other
programs that serve young workers and look at ways we can expand
programs that are making a real difference.
We will also explore new strategies, some developed by young people
themselves, to ensure that younger workers can compete in this job
market.
______
Mr. Kline. Thank you, Mr. Chairman. Thank you for holding
this hearing. I would ask unanimous consent that my entire
opening statement be entered into the record----
Chairman Miller. Without objection.
[The statement of Mr. Kline follows:]
Prepared Statement of Hon. John Kline, Senior Republican Member,
Committee on Education and Labor
Thank you Chairman Miller, and good morning. We're here today to
examine economic opportunities for young Americans. Unfortunately,
those opportunities seem to be few and far between these days.
The Bureau of Labor Statistics reports that youth unemployment has
reached a staggering 25.5 percent. That's the highest level since we
began tracking youth unemployment back in 1948.
These figures are daunting. Although not all young people wish to
pursue employment, we know that a first job can instill critical
values. Jobs breed responsibility and independence. Employment helps
young people understand the value of a dollar, and what it means to
work and save to pursue their goals.
The economic downturn has hit Americans of all ages and
socioeconomic backgrounds. However, young people have been hit
particularly hard.
With more than a quarter of young Americans unable to find a job, I
expect we'll hear proposals this morning to spend more and do more at
the federal level. You see, there's a tendency in Washington to want to
throw money at our problems. I understand that reaction, but I don't
agree with it.
History has shown that federal spending--and the red tape and
regulations that come with it--does not create jobs. More than $1.2
billion in federal stimulus funding has been spent to help teenagers
find employment, yet the youth unemployment rate continues to soar.
Recently, the Government Accountability Office has given us clues
as to why that may be the case. For instance, GAO reports significant
bureaucratic problems in states' implementation of the stimulus plan.
Simply put, bureaucracy is getting in the way of jobs.
The answer is not to throw more taxpayer dollars into the
bureaucratic black hole.
Nor does the answer lie in additional federal mandates. Two years
ago, the majority increased the national minimum wage. They did it
without providing the type of small business relief--health care
assistance, for example--that Republicans advocated at the time.
We warned back then that federal mandates on employers often have
unintended consequences for workers. Unfortunately, our warnings seem
to have come true, as employers find it increasingly difficult to hire
young people without work experience at these higher wages.
Certainly, there is an appropriate federal role to promote economic
opportunity for all Americans, including youth. For instance, the
Workforce Investment Act includes programs that prepare young people
for employment and help them secure jobs.
One of the great strengths of the WIA framework is that it is
rooted in state and local workforce investment boards--a governance
structure that allows states and local communities to nimbly respond to
changing labor market conditions and individual job seekers' needs,
including the needs of young people.
If we want to expand economic opportunities for young Americans,
perhaps we could start by reauthorizing WIA. We have not updated that
law in more than a decade--a glaring omission, particularly given our
current economic challenges.
We should also focus on educational attainment, helping young
people succeed in high school and beyond. An emphasis on youth
employment must not overshadow the importance of education in ensuring
long-term economic opportunity for the next generation.
Finally, we should foster broader policies that will spur job
creation and overall economic growth--proven strategies like tax relief
for small businesses, incentives for job creation, and health care
reform that will reduce costs for businesses working to create and
preserve jobs.
Ensuring economic opportunity is a worthwhile goal, and certainly
those opportunities should include young people. I, for one, believe
the best place to start is with a positive, pro-growth agenda that
recognizes it is American ingenuity and enterprise--and not the federal
government--that creates economic opportunity for all.
Thank you, and I yield back.
______
Mr. Kline [continuing]. And I would like to just briefly
summarize a couple of points.
The chairman underscored the problem that we are facing
now: We have got over 25 percent unemployment amongst our young
people. It is the highest level since 1948. It is an untenable
position.
We know that the economy is struggling. It is down in areas
we haven't seen for decades. The chairman mentioned that the
GAO reported that the stimulus money--the $1.2 billion--was
working.
There is a flip side in that report: It is not working as
it should be, and in some places not working at all. In fact,
sort of paraphrasing or summarizing, the GAO indicated that in
many cases red tape and the bureaucracy is, in fact, getting in
the way.
We know that we increased the minimum wage, and there was a
great deal of fanfare associated with that but many of us
predicted that raising that minimum wage would have an
unusually adverse impact on the young people--people teenagers,
people trying to get their first jobs. And it is difficult to
make such a correlation because of the collapse of the economy,
but it seems clear to me that raising that minimum wage did
exacerbate the problem for young folks.
There are programs in place--federal programs--which I
think we ought to be looking at. The Workforce Investment Act
is long overdue to be reauthorized. We ought to look at that.
It includes programs that prepare young people for employment
and help them find jobs. We ought to be looking at ways of
making that more efficient.
I am looking forward to your testimony today. It is a
problem that we need to explore. And thank you for attending.
I yield back.
Chairman Miller. I thank the gentleman. Pursuant to
committee rule 7(c) all members may submit an opening statement
in writing which will be made part of the permanent record.
I want to welcome our witnesses, and our first witness will
be Ms. Jane Oates, who is the assistant secretary of the
Employment and Training Administration at the U.S. Department
of Labor. Prior to her appointment, Assistant Secretary Oates
served as executive director of the New Jersey Commission on
Higher Education and senior advisor to Governor Corzine. She
also served for nearly a decade as senior policy advisor on
workforce development to the late Senator Kennedy.
Assistant Secretary Oates received her B.A. from Boston
College and a Master's in education in reading from Arcadia
University.
And at this point I think Mr. Holt has something he wants
to amend my statement with.
Mr. Holt. I would only second your statement, Chairman
Miller, thank you. And I, too, am pleased to recognize and
welcome Jane Oates, a resident of Lambertville, New Jersey, and
current assistant secretary for employment and training.
Many on this committee have known of Jane Oates' skills and
abilities as we watched her put her skills on display with
Senator Kennedy's committee. I have seen her skills and
abilities on display firsthand during her tenure as executive
director of the New Jersey Commission on Higher Education and
as a senior policy advisor to Governor Corzine. She, along with
Lisa Jackson and others, have exemplified the very high level
of quality of the governor's cabinet in New Jersey.
Jane Oates was a strong proponent of New Jersey's excellent
system of higher education and worked with Governor Corzine to
make colleges more affordable. She should be proud of her many
accomplishments, including helping shepherd the credit transfer
legislation that lets community college students transfer to 4-
year universities without paying for duplicate courses,
something that veers our committee's work here on the Student
Aid and Fiscal Responsibility Act.
And I was particularly pleased with her efforts to reform
our state's high school curriculum, sharpening its emphasis on
math and science. I think the committee and the whole country
are lucky to have her, in her words, as she says, as part of a
team that helps America get back to work.
Thank you, Mr. Chairman.
Chairman Miller. Now I really feel bad, Ms. Oates, because
I worked for years to try to get the California state college
system to do that, and it has been years, and you just went
over there and did it in New Jersey.
Ms. Oates. [Off mike.]
Chairman Miller. Oh, I feel better then. I don't think the
students feel any better, but I----
Mr. Holt. Mr. Chairman, she is effective.
Chairman Miller. As opposed to? [Laughter.]
Thank you. Thank you, Mr. Holt. I appreciate that. That is
why we have the ability to revise and extend.
I want to reintroduce the rest of the panel. Matthew Segal
was the founder and national co-chair of the 80 Million Strong,
a coalition of youth organizations committed to addressing the
current youth unemployment crisis. Mr. Segal also serves as
executive director of the Student Association for Voter
Empowerment. Mr. Segal holds a B.A. from Kenyon College.
Dorothy Stoneman is president and founder of YouthBuild
USA, a youth community development program. Prior to finding
YouthBuild USA in 1990, Dr. Stoneman lived and worked for 24
years in New York City, first as a teacher and later as a--for
several community organizations. Dr. Stoneman received a B.A.
from Harvard University, and M.A. and Ph.D. from Bank Street
College of Education.
D. Mark Wilson is a principal at Applied Economic
Strategies. He has served 7 years as deputy assistant secretary
for Employment Standards Administration at the U.S. Department
of Labor under President Bush. Mr. Wilson received his B.A.
from Kent State University and an M.A. from George Washington
University.
Algernon Austin directs the Economic Policy Institute's
program on Race, Ethnicity, and the Economy. Prior to joining
the Economic Policy Institute, Dr. Austin was a senior fellow
at Demos, a think-tank, and assistant director of research at
Foundation Center. He received his B.A. from Wesleyan
University and M.A. and Ph.D. from Northwestern University.
Welcome to all of you. Thank you for taking your time to
share your expertise and your thoughts with us.
And Secretary Oates, we will begin with you.
STATEMENT OF JANE OATES, ASSISTANT SECRETARY, EMPLOYMENT AND
TRAINING ADMINISTRATION, U.S. DEPARTMENT OF LABOR
Ms. Oates. Thank you, Mr. Chairman.
And special thanks to my congressman, Mr. Holt, who I am
very proud of. And he made all my work worthwhile while I was
there, as did Governor Corzine. Thank you very much.
I want to thank all the members of the committee for
holding this hearing. As the ranking member said, this is an
important topic and I so appreciate, Mr. Kline, your mention of
the Workforce Investment Act reauthorization. We are behind you
and we are open to working with this committee to get that done
as soon as possible.
Giving young people--in respect for your time I will not
read my testimony; I will summarize--but giving young people
the opportunity to gain the skills that they need to enter and
be successful in the workplace is critical for their future and
the future of our nation. The harsh situation for young job-
seekers is most felt by low-income youth, and in particular
low-income youth of color.
I know that the members of this committee understand the
hurdles that these young people face. Every piece of
legislation, every speech you give clearly tells the American
public that you get it.
Nearly 3 million young people from 16 to 24 are not in
school and do not have a high school diploma. At least 1.7
million out-of-work youth are unemployed today and actively
looking for work.
They are looking for work without the adequate academic or
occupational skills. They are looking for work without a work
history and without a support system to help them gain the
industry-recognized skills or the degrees that will help them
compete.
According to a 2009 study by the Center for Labor Market
Studies at Northeastern, the nation's teen labor market has
been continuously declining over the last 9 years,
establishing, as Congressman Kline said, a new historical post-
World War II low level of employment for this age group. And in
2009 we add to their hurdles. Many of their parents and
guardians, their grandparents, their aunts and uncles are
unemployed, underemployed, or living in fear of losing their
jobs.
Through the Recovery Act funds, President Obama and this
Congress resurrected a standalone summer employment program
this summer. The recovery dollars provided subsidized work
opportunities to over 280,000 young people.
Governors, mayors, and workforce staff worked on a very
short timeline to organize a program that had not been funded
by the federal government in over 10 years, and in my opinion
they did a remarkable job. At a time when private sector
employers were dealing with downsizing and struggling to stay
in business, they opened their doors to young people to show
them the value and dignity of work, to give them a boost or
sometimes a start to a resume that will be the foundation of
their future.
The impact of this experience is difficult to fully
capture. While we can tell you the numbers, only the young
people can tell you how this one job this summer opening their
eyes and their minds.
I got the chance to meet with some of them, and for those
young men and women with whom I met--and I am sure you had the
same experience--it was a profound experience. Economists
argue, and I am not going to get into that argument, that for
every dollar--I am sure my colleagues on the panel will--for
every dollar a teen earns it has an accelerator of $3 in the
local economy. I will leave that to them to refute or prove.
But what I can tell you is, I brought three binders with
me. I have 30 binders of letters that were sent to the
President this summer by young people without any push from any
adult to thank him and thank you for this experience.
When I met with them and I read these letters, I can tell
you that they are all kinds of kids. They were 14 to 24, they
were white, they were African American, they were Latino, they
were Asian. I met with them and they told me some of them had
stayed in school and some of them had dropped out; some of them
had been incarcerated and some of them were just without a
clear path.
They had no direction for how to get from where they were
that day to where they aspired to be. But in their words, what
did they learn this summer?
They learned that work was hard, but once you learned how
to do it your job got easier. They learned that people are nice
to you on the job. They learned that the more you know the more
you get paid, and that the skills on the job are related to the
stuff they learned in school.
People at the workplace measured and did math. People at
the workplace wrote and edited each other's writing. And when
you forgot to put something on a list or in a memo then
somebody else on the job couldn't do their job.
And everyone told them to take the hard courses. Everyone
told them to take math and science. Everyone told them that
staying in school was easier than going back and getting your
GED and that going to college quite simply meant you got paid
more.
They learned how to dress; they learned how to act; they
learned how to get to work on time; and they learned that if
you miss work your job doesn't get done and you let your team
down.
Some loved their jobs. They wanted to go there and work
there as an adult. And some of them learned they never wanted
to do that job again and it was the only reason they would stay
in school.
And what did they do with their money? Some of them gave it
to their parents to help pay bills. Some of them told me--many
of them, in fact--told me that their parents are afraid of
losing their houses or losing their apartment.
Many of them bought clothes for themselves, and some told
me they bought those clothes for younger siblings. Some of them
told me that they spent the money on movies and McDonald's. And
many of them told me they were using the money to buy gas for
their car or to buy a used car so that they could go to the
community college that fall.
The summer employment program was not perfect. I admit
that. But it was an amazing effort that yielded important
results. It put money into local economies and it taught these
young people, at least the ones that I met with and the ones
that I got the copies of the letters from, it gave them a huge
life lesson.
We are taking a serious look at the lessons we learned with
this summer program. If given the gift of a program in 2010, I
am here to tell you we will present wider opportunities. We
will help local areas more efficiently recruit, screen, and
manage their program. And we will give them a better chance to
customize the jobs they offer young people with their
aspirational levels.
When I meet with them, it is important for me to tell you
that the first thing they do is thank you. They ask me to thank
the Congress and thank the President because they tell me that
I am the closest they are going to get. And I turn back and
tell them, ``Not if you keep going to school. You will be in my
job and in better jobs.''
Thank you so much for this opportunity, and I look forward
to your questions.
[The statement of Ms. Oates follows:]
Prepared Statement of Hon. Jane Oates, Assistant Secretary for the
Employment and Training Administration, U.S. Department of Labor
Good morning, Chairman Miller and Members of the Committee. Thank
you for extending the invitation to appear before the Committee to
discuss youth employment--an issue with critical implications today, as
well as for our nation's economic future.
America's youth often face significant barriers to education and
employment. Our schools struggle to keep young people engaged; and we
applaud the efforts of Secretary Duncan to focus on high school reform
and on ensuring that all students are prepared for education beyond
high school and careers. However, the Department of Labor shares a
responsibility to increase the number of youth attaining degree and
certificates, to re-engage out of school youth and to connect the
learning in school with opportunities in the job market. According to
Northeastern University's Center for Labor Market Studies published in
August 2009, ``The nation's teen labor markets have been in a steep,
nearly continuous decline over the past nine years, establishing new
historical, post-World War II lows during the past three summers'' and
teens will continue to face declining employment rates through 2010. It
is important that we focus on our economic future by ensuring that
young people are prepared for, and have opportunities to experience,
the world of work.
Secretary of Labor Hilda L. Solis has articulated a clear vision to
guide our work--``good jobs for everyone.'' To achieve this goal, young
people need to acquire the work-readiness skills and knowledge to
prepare them to succeed in a knowledge-based economy. Ensuring that all
young people are well-prepared for postsecondary education and the
workforce is a critical factor for their future. It is not always easy
for youth to find good jobs on their own. Young workers historically
have the poorest employment prospects, and those prospects are worse
during difficult economic times. Current data indicate that there are a
number of challenges facing America's youth.
According to the U.S. Census Bureau, Current Population Survey,
2009 Annual Social and Economic Supplement data, approximately 5.3
million 18- to 24-year olds are living in poverty. In addition,
according to Bureau of Labor Statistics Employment and Earnings April
2009 data:
3 million youth ages 16 to 24 years are not in school and do not
have a high school diploma;
4.3 million out-of-school youth ages 16 to 24 who have not gone on
to college are not working; and
1.7 million out-of-school youth ages 16 to 24 who have not gone on
to college are unemployed and looking for work.
President Obama is committed to addressing the challenges facing
youth, both in school and out of school. To reach his goal of being
first in the world in college completion by 2020, we must keep students
on track to graduation, raise graduation rates, and ensure students who
have disengaged have opportunities to re-connect to education and jobs.
Blending work and learning makes education relevant and helps to
prepare youth for successful careers. In addition, the President
supported providing additional funds to provide work experience
opportunities and other employment services to our country's youth
through the American Recovery and Reinvestment Act of 2009 (Recovery
Act).
The Workforce Investment Act (WIA) Title I youth formula program
allocates funds to state and local areas to deliver employment and
training services to low-income youth ages 14 to 21 years who face
barriers to employment. Through the Recovery Act, the Department of
Labor invested an additional $1.2 billion in WIA youth formula funds to
provide subsidized work opportunities to over 280,000 low-income youth
as of the end of August 2009. The Recovery Act also allowed ETA to
increase the age of eligibility for youth services to 24 years of age
and support other services to this population.
By the end of August 2009, approximately $400 million of Recovery
Act youth funds had been spent, a majority of which supported summer
youth work experiences. In line with President Obama and Secretary
Solis' belief that green jobs will be a key driver of America's
economic revitalization and sustained economic stability, ETA
encouraged summer youth programs to develop work experiences that would
expose young people to jobs in the emerging ``green'' economy. For
example, in Philadelphia, Pennsylvania, many youth received a
combination of postsecondary training with worksite experiences in
green jobs. Some of these youth participated in a partnership with
Temple University, which provided them with Environmental Research
Internships and experience working with researchers in the field. In
another project run by Congreso de Latino Unidos and Harcum College, 40
youth were exposed to training and work experiences that promoted
energy efficiency.
Local workforce areas across the country met the challenge to
implement summer youth employment programs in an extremely limited
timeframe. By the end of August, over 280,000 youth had participated in
summer employment funded by the Recovery Act. The Government
Accountability Office (GAO) recently completed a review of the
implementation of the WIA summer youth program funded under the
Recovery Act. GAO found that states were generally successful in
serving increased numbers of youth despite having only four months to
get the program running. Most states met or exceeded their target
numbers for youth to be served by mid-August. However, GAO also found
limited instances where local areas faced challenges in implementing
summer programs, including determining and documenting youth
eligibility and failing to pay youth on time. The Department is working
to address these issues. GAO had two recommendations for the
Department. First, they suggested that we provide further guidance on
what constitutes a green job and, second, that we provide more clarity
on work-readiness outcomes. We always appreciate GAO's work and
continue to use their suggestions for improvement.
The Department is encouraging exposure to green industries,
including green construction, through all DOL youth programs--
YouthBuild, Job Corps, and the WIA formula program--as well as
Registered Apprenticeships, which can provide a pathway for youth into
good jobs. While the Job Corps program is not currently administered by
ETA, it provides an important strategy for serving youth, and the
Department has proposed to move the administration of the Job Corps
program into ETA prior to the start of Program Year 2010 to foster a
comprehensive approach to youth programs. The Recovery Act funding has
enhanced our efforts in these areas with youth programs and will
continue to impact our curriculum.
For example, the Recovery Act provided $50 million for YouthBuild
in the current and upcoming program years. YouthBuild provides job
training and educational opportunities for low-income or at-risk out-
of-school youth ages 16 to 24. They acquire academic and work-related
credentials while constructing or rehabilitating affordable housing for
low-income or homeless families in poor communities. The YouthBuild
program creates opportunities to re-engage out-of-school youth in
education, skills training, and leadership development while serving
their community.
About 20 YouthBuild programs are far ahead of the curve in
providing training in green construction techniques, and knowledge and
use of sustainable building materials. We believe that these
experiences will help young participants compete for jobs in a changing
construction sector.
In addition, the Department has introduced a new Apprenticeship
Training Program, designed specifically for YouthBuild to support the
transition of our young people into apprenticeship opportunities. In
Portland, Oregon, the YouthBuild program created a registered
apprenticeship with the Laborers Union to train its students in
weatherization skills, and created green career tracks in several
fields for its YouthBuild graduates in partnership with Portland
Community College.
In order to maximize the effect of services to young adults, it is
critical that we work with the Department of Education to build a solid
foundation to support career pathways for all youth. The
reauthorization of WIA presents an opportunity to build programs across
funding streams to accelerate our progress. The Departments of Labor
and Education have already been working to articulate a framework for
discussion on WIA reform. While the Administration has not yet put
forth formal reauthorization principles, the Department has held many
listening sessions with stakeholders concerning WIA reauthorization.
Here are some of the ideas we the agencies have about how best to serve
at-risk youth:
Exploring strategies that integrate compensated work activities and
education.
Emphasizing programs that are ``proven'' (through rigorous
evaluation) or ``promising'' (based on a record with positive outcomes
and operation to scale).
Partnerships among the workforce system partners and secondary and
postsecondary school systems. For example, State and locally-based
employers, criminal justice systems, various social service providers,
and others should be engaged to provide services to meet the wide
variety of needs of at-risk youth.
The collection of accountability performance measures that
recognizes gains over time, avoids the selection of participants based
on anticipated performance success, while serving those with employment
needs.
Serving in-school and out-of-school at-risk youth, aged 16-24,
including: 1) young people in high school who are off track and at high
risk of dropping out--especially those with poor reading or math
skills; 2) youth who have already dropped out; and 3) high school
graduates with poor skills who have failed to obtain jobs, noting these
categories are fluid as individuals move in and out of school.
Simplifying program eligibility and creating a convenient and easy
ways to access programs.
Sharing data related to State certification tests and other
performance measures across Federal departments and programs; and
supporting States in improving interoperable data systems that help
identify strategies to increase student persistence and completion and
better meet the needs of the labor market.
We are actively encouraging WIA youth program investments that
address the needs of the hardest-to-serve youth, including a specific
focus on high school dropouts and out-of-school youth disconnected from
education and work. We need to develop strategies for serving these
youth that include a strong academic focus with an opportunity to
obtain a high school diploma or its equivalent and transition into
alternative education and career pathways.
Finally, we need to direct resources to high-quality research and
evaluations of youth programs. The Department is committed to rigorous
evaluations and it is important that we use findings from research and
evaluations to identify and disseminate successful strategies and
promising practices, be brave enough to discontinue programs and
approaches that are not working, find ways to improve existing
programs, and create successful models or blueprints for replication.
The Department is currently investing in a rigorous evaluation of the
YouthBuild program as well as an implementation evaluation of the youth
programs funded through the Recovery Act to better understand how these
programs work and inform policy making. In addition, the Department is
interested in data that will help us understand the long-term effects
of youth training programs. In the FY 2010 budget request, the
Department requested $15 million for the new Workforce Data Quality
Initiative which will leverage Department of Education investments to
support the development of longitudinal data systems that track
individuals' progress through the education system and into the
workforce; a significant increase for ETA's research and evaluation,
and a $5 million Department-wide evaluation initiative.
Research is quite clear that this recession has had a huge impact
on young people seeking employment. It was critical that we intervened
in summer 2009 by providing summer employment experiences and other
services for youth. The lessons we all learned in our first jobs made
lasting impressions on our decisions about work over the course of our
lifetime. For this generation of young people, the education and skills
that they need to fully engage in meaningful work is fundamental to
their success and the future of our country.
This concludes my prepared remarks, and I would be pleased to
answer any questions you may have.
______
Chairman Miller. Thank you.
Mr. Segal, welcome.
STATEMENT OF MATTHEW SEGAL, FOUNDER AND NATIONAL CO-CHAIR, 80
MILLION STRONG
Mr. Segal. Thank you. Thank you, Mr. Chairman----
Chairman Miller. You know, I didn't explain--I am sorry I
didn't explain the light system for people who haven't
testified before, but almost everybody has. It is green, orange
with a minute to go, and red when you should wrap up. Thank
you.
Mr. Segal. Thank you, Chairman Miller, Ranking Member
Kline. My name is Matthew Segal and I am the executive director
of the Student Association for Voter Empowerment, otherwise
known as SAVE. I am also a founder and national co-chair of the
80 Million Strong for Young American Jobs Coalition, which has
organized nearly 30 nationally leading youth organizations to
tackle the staggering rate of unemployment, increasing cost of
a college education, and growing debt our generation faces.
Co-chaired by SAVE, the Roosevelt Institute Campus Network,
and Mobilize.org, our aim is to engage and direct or economic
future by discussing the financial challenges of today's
workers, proposing solutions to these challenges, and packaging
these recommendations into legislative proposals at the
federal, state, and municipal level. Born after 1980, the
millennial generation is 80 million strong, as a demographic,
and more than 23 million of us voted in the 2008 election.
As my fellow panelists have exhibited and will exhibit, the
statistics are dire. Youth unemployment is over 18 percent,
income averages are shrinking, especially for young minorities,
and the prospect of affording a higher education is becoming
more of a dream and less of a reality.
As some economists have put it, we 20-somethings are the
first generation likely to be less better off than our parents.
So on July 14th and 15th in the U.S. Capitol Visitors Center,
our coalition assembled over 100 diverse young people from more
than 30 states around the country for a 2-day summit focused on
addressing many of these stark statistics. Numerous members of
Congress spoke with our coalition and we worked collaboratively
to endorse various policy platforms that will create jobs and
economic opportunities for the 80 million members of the
millennial generation.
As one of our summit participants who recently received a
dual after having been on the dean's list throughout college
stated, ``Our first instinct is not to complain. We went to
college to get a job and not to add to the nation's
unemployment statistics.''
And like our summit participant, our coalition is not here
today to complain. We came together because we want to
contribute to the next stage of America's prosperity and we
have ideas on how to do so.
Our proposals center on four areas: increasing
entrepreneurship resources, student debt reform, access to
public service careers, and the creation of mission-critical
jobs that tap young talent. Study after study shows that young
people are more inclined to engage in public service than ever
before.
For instance, 441,000 more young adults volunteered in 2008
than in 2007, but as internships become more of a prerequisite
and less of a distinction with over three-quarters of employers
saying that they are more likely to hire graduates with prior
internship experience, millions of Americans are forced to
forego public service every year because of the low or
nonexistent wages associated with it. This economic divide is
exemplified by students whose parents can afford to subsidize
an internship versus those who cannot.
Mr. Chairman, representative democracy depends on the
participation of all of its citizens, and disallowing the
majority of young people to serve their government because of
financial hardship means condoning a discriminatory system. One
way Congress could exhibit its commitment to socioeconomic
diversity among interns is through the creation of a fellowship
program that would place at least one paid intern in every
congressional office to increase access for qualified, need-
based young people.
Using the D.C. minimum wage standard of $7.25 an hour
combined with a 40-hour work week, a government intern would
get $2,900 in stipends for a 10-week long internship. This can
be implemented in all 435 congressional offices for 52 weeks a
year for approximately $6.5 million, giving over 2,250 young
Americans the unprecedented active citizenship opportunity to
work in their government.
We also support increased scholarships funding and training
programs for critical sectors of the economy, such as the
health care industry. Every 8 seconds one of 78 million baby
boomers will turn 60 years old, and young people want to take--
we young people want to take responsibility for our parents'
and grandparents' health by providing them with the quality and
professional care that they deserve.
An estimated 200,000 nursing positions unfilled at U.S.
hospitals and nursing homes, and we are ready to fill this
shortage, but investment in training programs is necessary so
that those without 4-year college degrees can also enter the
nursing and physician assistance field.
Finally, green jobs are not only a must in terms of
protecting our environment, but they can also reinvigorate the
middle class by providing thousands of new career opportunities
to workers who are traditionally left behind. We applaud many
of the workforce revisions in the American Clean Energy and
Security Act and encourage the House to introduce a version of
the Green Collar Youth Jobs, Education, and Training Stimulus
Act, Senate bill sponsored by Senators Murray and Stabenow,
which gives appropriations to DOL to provide youth with
education, paid jobs, and training in vocations such as the
weatherization and energy retrofitting of low-income homes and
buildings.
In closing, we are confident that many of these proposed
programs will help pay for themselves many times over again in
the strong middle class they build, unemployment gap they fill,
and market value they create. We look forward to working with
the members of this committee to achieve nothing less. Our
futures depend on it.
I thank you for the opportunity to testify and look forward
to your questions.
[The statement of Mr. Segal follows:]
Prepared Statement of Matthew Segal, Executive Director, Student
Association for Voter Empowerment (SAVE)
Chairman Miller, Ranking Member Kline, I thank you for the
opportunity to present testimony today.
My name is Matthew Segal and I am the executive director of the
Student Association for Voter Empowerment, otherwise known as SAVE. A
national non-profit organization founded and run by young people, our
mission is to bring young Americans into the political process by
eliminating barriers to electoral participation and encouraging youth-
led policy solutions that address significant national challenges.
Currently, SAVE represents a constituency of over 10,000 students with
chapters on more than 35 college campuses across the country.
I am also a founder and national co-chair of the 80 Million Strong
for Young American Jobs coalition, which has organized nearly 30
nationally leading youth organizations to tackle the staggering rate of
unemployment, increasing cost of a college education, and growing debt
our generation faces. Co-chaired by SAVE, the Roosevelt Institute
Campus Network, and Mobilize.org, our aim is to engage and direct our
economic future by discussing the economic challenges of today's young
workers, proposing solutions to these challenges, and packaging these
recommendations into legislative proposals at the federal, state, and
municipal level. Born after 1980, the millennial generation is 80
million strong as a demographic, and more than 23 million voted in the
2008 election.\1\
Mr. Chairman, the current economic crisis is disproportionately
affecting young Americans, digging a hole that will place a long-term
burden on our generation as we attempt to build a stronger future
workforce. Among the many national and global challenges today's 20-
somethings face, we are the first generation likely to be less better
off than our parents. In order to reinvigorate our economy, we must
overview the scope of the problem while identifying new fields,
industries, or career pathways that shape a robust 21st century labor
force.
According to the July 2009 Bureau of Labor Statistics, 4.4 million
youth (ages 16-24) were unemployed, up nearly 1 million from the
previous year. The youth unemployment rate stood at 18.5 percent, the
highest July rate on record since 1948, and roughly double the national
average. Among African American youth, unemployment was 31.2 percent,
while for Latinos it stood at 21.7 percent. In terms of summer jobs,
the national employment population for teenagers (ages 16-19) was a
record low 28.9 percent.\2\
Income is also shrinking. According to Demos, the average earnings
of full time workers ages 25 to 34 are lower today than they were a
generation ago, except among women with college degrees. And young men
without a college education are earning 29 percent less than they did
in 1975. Income disparities in recent years are also acute--as typical
incomes for White young adults are 25 percent higher than African
Americans and 30 percent higher than Latinos. Nearly 18 percent of 18-
24 year olds are living below the official poverty line.\3\
The cost of an education is also contributing heavily to our
generation's economic hardship. Two thirds of students holding a
bachelor's degree graduate with more than $20,000 in debt, twice as
much as a decade ago. Law and medical school graduates have it even
worse, with roughly $76,000 and $155,000 dollars of debt respectively.
Approximately 23 percent of freshman borrowers drop out of school
because of debt; and the college enrollment gap between Whites and
African American students is 10 percentage points, while the gap
between Whites and Latino students is 17 percentage points.\4\
Employers expected to hire 22 percent fewer new grads from the college
Class of 2009 than they actually hired from the Class of 2008, and an
additional 7 percent fewer graduates are expected to be hired from the
Class of 2010 according to the National Association of Colleges and
Employers (NACE).\5\
Mr. Chairman, on July 14th and 15th in the Capitol Visitors Center
in Washington, DC, we assembled over 100 diverse young people from more
than 30 states around the country for a two day summit focused on
addressing many of these stark statistics. Numerous members of
Congress, including some members of this committee, such as Mr.
Hinojosa, spoke with our coalition, and we worked collaboratively to
endorse various policy platforms that will create jobs and economic
opportunity for the 80 million members of the millennial generation.
Our proposals center on four areas: increasing entrepreneurship
resources, student debt reform, access to public service careers, and
the creation of ``mission critical'' jobs that tap young talents.
Because several of our entrepreneurship ideas are more salient to the
House Committee on Small Business and because we are thrilled that the
House of Representatives recently passed the Student Aid and Fiscal
Responsibility Act, our recommendations today will mainly focus on
increasing public and civil service opportunities in mission critical
industries.
Recent data shows that young workers and students are highly
compelled to engage in public service more than ever before. As
President Obama reinvigorated the Kennedy call to service throughout
his campaign, over 441,000 more young adults (ages 16-24) volunteered
in 2008 than in 2007, representing an increase from about 7.8 million
to more than 8.2 million. And since Congress passed the Serve America
Act several months ago, there has also been a 217 percent increase in
applications to AmeriCorps programs.\6\
While this data is quite encouraging, there is more that can be
done to establish volunteer to career pathways. Millions of Americans
forego public service every year because of low or non-existent wages
associated with it, and a mounting issue of social stratification is
propagating with regards to civil service and internships. For
instance, the salary for AmeriCorps varies between $7,640 and $15,280
per year, placing participants well below the poverty line.\7\
A recent New York Times article from August 8, 2009 also discussed
the growing number of college graduates whose parents are paying
thousands of dollars to services that will help them accrue a summer
internship. One of the featured internship providers, University of
Dreams, charges $8000 per person, guaranteeing an 8 week internship
placement with dorm housing in New York City. The Washington Center,
here in our nation's Capitol, charges participants a $5,195 program fee
in addition to a $60 application fee. If students choose to pay $3,395
for 10 weeks of prearranged housing, which more than 90 percent do, the
final cost amounts to $8,650. These figures also do not include weekend
meal costs or any entertainment expenses, both of which add hundreds of
dollars to the price of an internship.\8\
An economic divide is exacerbating between students whose parents
can afford to subsidize an internship vs. those whose cannot. Yet
internships are becoming more of a prerequisite and less of a
distinction by the day. This is because students with internship
experiences have a clear leg up in getting hired upon graduating.
According to the National Association of Colleges and Employers, more
than three-quarters of employers say they would prefer to hire new
college graduates who have relevant work experience such as an
internship.\9\ Additionally, according to the career website Vault,
roughly 90 percent of college students plan to complete an internship
before graduating, even though about half of all internships are
unpaid.
As Anya Kamenetz from the New York Times notes, ``Lost wages and
living expenses are significant considerations for the two-thirds of
students who need loans to get through college. Since many internships
are done for credit and some even cost money for the privilege of
placement overseas or on Capitol Hill, those students who must borrow
to pay tuition are going further into debt for internships.'' \10\ And
in a difficult economy, internships without pay are becoming the norm
for the 80.3 percent of young adults who graduate college without a
job.\11\
Above all, and at its core, this is also an issue of
representation. Representative democracy depends on the input,
perspective, and experience of all of its citizens, not just the
privileged few. If the majority of young America is saddled with debt
in order to work pro-bono, or prevented from the active citizenship
experience of serving their government because of financial hardship,
then we are condoning a discriminatory system. This is not to mention
the homogeneity we are institutionalizing or the diversity,
qualifications, or incredible talent we are not tapping. Ironically, it
is the citizens who need representation the most who currently are the
least likely to access these civil service or internship opportunities.
Although there have been some significant reforms in the right
direction such as the $1.2 billion in the economic recovery package to
help find jobs or part time work for those aged 14-24, our coalition
also proposes the following:
1. One way the Congress could exhibit its commitment to socio-
economic diversity among interns is through the creation of a
fellowship program that would place at least one paid intern in each
congressional office to increase access for qualified, need-based young
people. Using the District of Columbia's minimum wage standard of $7.25
an hour and a 40-hour workweek, a government intern could get $2,900
for a ten-week long internship. For less than 1.3 million dollars, this
can be implemented in every congressional office. If this program was
continued for all 52 weeks a year in every congressional office, it
would cost approximately 6.5 million dollars, while giving over 2,250
young Americans the unprecedented active citizenship opportunity to
work in their government.
2. Another way to ensure economic opportunity for low income
Americans who wish to seek advanced degrees is by creating incentives
for them to help pay for school in return for service. Fortunately,
there is an existing amendment that has passed in conjunction with the
Higher Education Opportunity Act that seeks to do this. The John R.
Justice Prosecutors and Defenders Incentive Act of 2008 directs the
Attorney General to repay student loans for borrowers who agree to
remain employed, for at least three years, as federal, state or local
criminal prosecutors or public defenders. It also allows a borrower and
the Attorney General to enter into an additional loan repayment
agreement, after the required three-year period, for a successive
period of service paying back a borrower up to $10,000 per calendar
year and $60,000 total. Unfortunately however, we have not seen any
appropriation towards this platform. We are pleased to see that this
committee backed significant workforce investments in HR 3200 for
aspiring medical students as well, such as increased funding for the
National Health Service Corps, which is similar to the John R. Justice
provision, only applied to medical students.
3. We support increased scholarships, funding, and training
programs for new mission critical health care industry jobs. Since
every 8 seconds, one of 78 million Baby Boomers will turn 60 years old,
geriatric care will create a wealth of jobs to those with proper
training. This area is an excellent way to show that the Millennial
Generation is ready to accept responsibility from the Baby Boomers and
provide them with the quality and professional geriatric care that they
deserve. Electronic medical records, which will increase efficiency in
the medical community, can also provide young American jobs both in the
IT sector and for medical professionals. Creating jobs in preventative
medicine, which will lead to better healthcare and decreased cost, is
another way to adapt to a changing healthcare climate in a manner that
will increase opportunities for Millennials. While we need to create
jobs, we also need to ensure that the job shortages that exist are
filled. Currently, there is a shortage of nursing jobs. An estimated
116,000 registered nurse positions are unfilled at U.S. hospitals and
nearly 100,000 jobs go vacant in nursing homes.\12\ The average age of
a nurse is 47 years old.\13\ Young Americans are ready to fill this
shortage, but we need more investment in training programs so that
those without 4 year college degrees can also enter the nursing and
physician assistance industries. Increasing the payment of nursing
faculty is an imperative step in achieving this. According to a 2006
survey by The Nurse Practitioner, the average salary of a master's
prepared nurse practitioner is $72,480. By contrast, the American
Association of Colleges and Nursing (AACN) says master's prepared
nursing faculty earn an annual average salary of $55,71. AACN also
reports that U.S. nursing schools in 2005 turned away 41,683 qualified
applicants to baccalaureate and graduate nursing programs and nearly
three-quarters--73.5 percent--of these nursing schools blamed faculty
shortages for such rejections.\14\
4. We support creating new mission critical jobs in cyber security
fields. A recent study by the Partnership for Public Service found
broad agreement among federal officials and outside experts that the
government has a cyber security workforce problem--a serious shortage
of technically sophisticated professionals capable of combating the
growing cyber threat from hackers, criminals, foreign governments and
terrorist organizations. Congress should lead a campaign to encourage
universities to offer, and students to pursue, cyber security
educational programs. Congressional funding should also be increased to
expand scholarships in computer science and cyber security in return
for a commitment to government service.
5. Green jobs are not only mission critical in terms of protecting
our environment, curbing pollution and making our infrastructure more
sustainable and energy efficient, but they can also reinvigorate the
middle class by providing thousands of new career opportunities to
workers who are traditionally left behind. We applaud many of the
workforce provisions in the American Clean Energy and Security Act,
such as the Green Construction Careers Demonstration Project, which
will provide grants to low income communities that train workers in
clean energy, including wind, solar and geothermal fields. It will also
provide training in recycling and waste reduction, water and energy
conservation, and sustainable agriculture and farming. We additionally
encourage the House to introduce a version of the Green Collar Youth
Jobs, Education, and Training Stimulus Act, a senate bill sponsored by
Patty Murray and Debbie Stabenow. This legislation gives appropriations
to the Secretary of Labor to provide youth with education, paid jobs,
and training in green-collar industries, including the weatherization
and energy retrofitting of low-income homes and buildings.
6. We propose establishing a youth innovation fund. The Serve
America Act allocated $50 million dollars for FY2010 for the creation
of a social innovation fund. The fund makes grants to existing grant
making institutions which must be matched by the institution. The
groups then make subgrants to different non-profit organizations to
support proven initiatives or promising innovations in low-income
communities. We propose a youth innovation fund that would provide
grants specifically to young entrepreneurs who launch socially
conscious or community development ventures.
We are confident that many of these proposed programs will pay for
themselves many times over again in the strong middle class they build,
unemployment gap they fill, and market value they create by spurring
healthier, safer, and better educated career pathways. We also know
that there are many other fields or industries to grow career
opportunities, but what I have stated today reflects the specific ideas
of our young membership. Working with the non-profit sector to match
government funds is always an effective means of partnership--and we
similarly encourage many philanthropists and corporations to direct
their gifts towards programs that encourage workforce investment in
order to build a more vibrant, 21st century economy.
Mr. Chairman, Mr. Ranking Member: I thank you again for the
opportunity to testify here today and welcome any questions.
endnotes
\1\ http://www.civicyouth.org/?p=323
\2\ http://www.bls.gov/news.release/youth.nr0.htm
\3\ http://www.demos.org/
publication.cfm?currentpublicationID=2C71F2BC-3FF4-6C82-
5C6F2D4C190AA787
\4\ http://www.demos.org/
publication.cfm?currentpublicationID=2C71F2BC-3FF4-6C82-
5C6F2D4C190AA787
\5\ http://www.naceweb.org/press/display.asp?year=&prid=297
\6\ http://www.volunteeringinamerica.gov/assets/resources/
VolunteeringInAmericaResearchHighlights.pdf
\7\ http://www.indeed.com/salary/Americorps-Member.html
\8\ http://www.nytimes.com/2009/08/09/business/09intern.html
\9\ http://www.naceweb.org/press/display.asp?year=&prid=294
\10\ http://www.nytimes.com/2006/05/30/opinion/30kamenetz.html
\11\ http://www.naceweb.org/press/display.asp?year=&prid=306
\12\ http://www.reuters.com/article/domesticNews/
idUSTRE5270VC20090308
\13\ http://findarticles.com/p/articles/mi--m0FSL/is--4--78/ai--
108967612/
\14\ http://www.physorg.com/news79205125.html
______
Chairman Miller. Thank you.
Dr. Stoneman?
STATEMENT OF DOROTHY STONEMAN, PRESIDENT AND FOUNDER,
YOUTHBUILD USA
Ms. Stoneman. Chairman Miller, Ranking Member Kline, I am
honored to testify and I am also delighted to be in the company
of Assistant Secretary Jane Oates, because we work very
closely. I am the founder and president of YouthBuild USA,
which is a national nonprofit organization which has supported
the development of the 226 local YouthBuild programs in the
United States and has worked toward the evolution of its
becoming a federal DOL program.
Since its first authorization in 1992, 84,000 low-income
young adults have produced 18,000 units of affordable housing
in America's poorest urban and rural communities. DOL's
YouthBuild program is the only federal program that offers
disconnected young adults an immediately productive full-time
role in the community while also providing equal measures of
basic academic education toward a diploma or a GED, skills
training toward a decent-paying job, leadership development
toward civic engagement, adult mentorship and counseling toward
overcoming personal problems, and participation in a supportive
mini-community with a positive set of values.
It attracts the most disadvantaged youth and produces a
reliable shift in their values, attitudes, skills, and personal
identity. The YouthBuild network is also adapting rapidly to
meet the needs of the changing labor market and economy,
teaching green construction skills while building energy-
efficient homes and positioning its graduates as a workforce
prepared to weatherize and retrofit public and private housing.
Some YouthBuild programs are also innovating by multiplying
career paths to include health care and technology.
YouthBuild programs welcome the most disadvantaged youth.
Ninety-three percent enter without a diploma; 73 percent are
young men; 78 percent young people of color; 100 percent poor;
40 percent have been court-involved. Many are gang affiliated;
most have virtually no family support.
Yet just about half of them radically changed their lives.
A Brandeis University study of 800 YouthBuild graduates up to 7
years after graduation found that 75 percent of them were
either in college, which none of them expected to be when they
joined YouthBuild, or in jobs averaging $10 an hour.
Sixty-five percent said they expected to live longer--an
average of 32 years longer. Graduates often say, ``Without
YouthBuild I would probably be dead or in jail. Instead I am in
college, I have a job, I am taking care of my children, I aim
to own my own home. I love YouthBuild. It changed my life.'' I
have been hearing this for 30 years.
In YouthBuild programs, how does it actually work? The
young people split their time evenly. They alternate weeks: a
week in the construction site, a week in the YouthBuild
alternative school. The alternative school has small
classrooms, individualized attention--nothing like what they
experienced prior to that. They alternate a week in the
classroom and a week in the school, they are paid minimum wage
for their time building homes, and increasingly these are built
green.
YouthBuild creates a small, manageable, community-based
community of 30 to 200 students with a high staff-to-student
ratio. And if you ask the students why does it work, they all
say reliably, ``It is the staff. They care about me. The
teachers, they care that I learn. Nobody ever cared about me
like this before. I came here looking for a job or a GED, and
instead I found a family and a future.''
As a result, they develop a deep desire to give back and
they become a positive force. As YouthBuild graduate Antoine
Bennett once said, ``I used to be a menace to my community, and
now I am a minister to it.'' And 10 years ago he was--or 15
years ago he was in prison; now he is the executive director of
a job training program in Sandtown, Baltimore.
The act of building homes for people who need them, being
seen as a hero instead of a hoodlum, changes their identity.
They love being the ones who are doing something good instead
of something bad. They are on the streets with tool belts
instead of drugs. For the first time their grandparents are
proud of them.
Other young people ask, ``How can I do what you are doing?
How do I get into YouthBuild?'' And as a result, in every
community two to 10 times as many young people are lining up at
the door as there is funds to let them in.
Now, there is a formula for success, which I don't have
time to outline, that has 12 components of this program that
have to be in place for it to work. Every YouthBuild program is
run by a nonprofit, community-based organization or local
public agency with deeply rooted leadership.
Some of them are autonomous agencies, like a community
development corporation; some of them are local affiliates of
Urban League, YMCA, the CORE Network. The entire system
operates as a dynamic public-private partnership with national
direction from DOL and YouthBuild USA and local roots, linking
the power of government with the creativity of social
entrepreneurs.
Our goal is to open the doors of YouthBuild to every young
person knocking. The Obama administration and our champions in
Congress have pointed the way to expand from 10,000 young
people a year to 50,000. That would be a great thing.
A recent study showed every dollar spent on a court-
involved youth in YouthBuild provided a return on investment of
a minimum of $10.80, and up to $43, and that the return on
investment for getting a high school dropout back on track to a
high school diploma is at least $300,000. It is an investment
worth making.
My written testimony has four testimonies from young
people. That is really what you should read to get the deeper
spirit of YouthBuild. One of those testimonies is written by
Wayne Whack, from YouthBuild Philadelphia, and I am happy to
have some YouthBuild students here with me.
Thank you very, very much.
[The statement of Ms. Stoneman follows:]
Prepared Statement of Dorothy Stoneman, President and Founder,
YouthBuild USA
Chairman Miller, and Senior Republican Member Kline, thank you for
inviting me to testify today. My name is Dorothy Stoneman. I am the
president and founder of YouthBuild USA, a national non-profit
organization which has guided the development of the YouthBuild network
of more than 225 local programs that act in collaboration to improve
their outcomes and impact. I started the first YouthBuild program in
East Harlem 30 years ago, and have since participated in its evolution
to a federal DOL program enabling tens of thousands of young people to
rebuild their communities and their own lives.
Since 1992, when the first federal YouthBuild authorization was
passed, 84,000 YouthBuild students have produced 18,000 units of
affordable housing in over 225 of America's poorest urban and rural
communities, while pursuing a high school diploma or GED, and preparing
for college or for careers in construction, and internalizing the
values and skills to serve as good citizens.
A Unique Program
DOL's YouthBuild program is the only federal program that provides
disconnected young adults an immediately productive role in the
community while also providing equal measures of basic education toward
a diploma or GED, skills training toward a decent paying job,
leadership development toward civic engagement, adult mentorship toward
overcoming personal problems, and participation in a supportive mini-
community with a positive set of values. It attracts the most
disadvantaged youth, and produces a reliable shift in their values,
attitudes, skills and personal identity.
The YouthBuild network is also adapting rapidly to meet the needs
of the changing labor market and economy, teaching green construction
skills while building energy-efficient homes and positioning its
graduates as a workforce prepared to weatherize and retrofit public and
private housing. We were very proud in March when First Lady Michelle
Obama joined us on the Mall to celebrate YouthBuild's 30th Anniversary
and witness our Green Training Academy.
Some YouthBuild programs are also innovating by multiplying career
tracks beyond construction to add health care and technology,
developing systems to support graduates through to the acquisition of
post-secondary credentials, and under the guidance of the Department of
Labor and the AFL-CIO developing a formal course that will enable
graduates to step fully prepared into union apprenticeships.
Background Data
YouthBuild programs welcome the most disadvantaged youth: 93%
without a diploma; 40% adjudicated; 73% young men; 78% Black, Latino,
or Native American. All are poor; many have been gang affiliated; most
have almost no healthy family support. Yet just about half of those who
enroll in YouthBuild radically change their lives.
A Brandeis University study of 800 YouthBuild graduates up to seven
years after graduation found that 75% were either in college or
employed at jobs averaging $10/hour. 65% said they expected to live
longer as a result of YouthBuild--an average of 32 years longer. In
fact, most disconnected young men do not expect to live beyond age 25.
Graduates often say, ``Without YouthBuild I would probably be dead or
in jail. Instead I am working, going to college, taking care of my
children, aiming to own my own home. I love YouthBuild. It changed my
life.''
How and Why YouthBuild Works
In YouthBuild programs low-income 16 to 24 year olds enroll full-
time for about a year. They split their time evenly between the
YouthBuild alternative school where they work toward their GED or
diploma in a highly individualized and supportive classroom, and the
construction site where they build affordable housing for homeless and
low-income people under skilled supervisors, often union journeymen,
who teach them the skills they need to succeed at work. They generally
alternate a week in the classroom with a week on the construction site.
They are paid minimum wage for their work building homes. Increasingly
these homes are built green and the students are obtaining industry-
recognized certifications and learning the skills to be employed in the
new green economy.
At the same time, students are offered personal counseling to help
solve all manner of personal problems. They are members of a supportive
community of peers and adults dedicated to each other's success. They
internalize the ethic of service and are given leadership roles. They
recite a daily pledge to become responsible caring leaders who respect
others as they would like to be respected. For most, it is the first
time they have experienced a safe, healthy, supportive, goal-oriented
community that respects their inherent value and draws out their
talents. There are many very talented young people who have lost their
way, and who can become a real resource to their communities if offered
the right opportunities to take charge of their lives.
YouthBuild creates small manageable communities of 30 to 200
students, with a high staff to student ratio. If you ask the students
why YouthBuild worked for them, they always say, ``It's the staff and
the teachers. They care about us. They teach us how to act. They give
us structure and help us set our own goals, and they show us that they
really care that we succeed. Nobody ever cared about me like this
before. I came to YouthBuild looking for a job and a GED, but I found a
family and a future.''
We encourage the staff to show they care by doing things that will
surprise the students. For example, when a student doesn't show up,
someone will call him, or go knock on his door. When a student is found
through random drug testing to be using drugs he will be taken off the
construction site and required to get counseling. When a student has to
go to court for an offense committed prior to enrollment, a staff
member will go with him, and maybe take a group of students dressed in
suits to demonstrate social attachment to a respectable group. When he
is applying for college, someone will drive him there and if necessary
pay the application fee. When he is going for a job interview, someone
will make sure he has the proper attire.
As a result, YouthBuild students develop a deep desire to give
back. They want to help others as they have been helped. They become a
positive force. As YouthBuild graduate Antoine Bennett once said, ``I
used to be a menace to my community; now I am a minister to it.'' Sure
enough, Antoine is now the executive director of a local job training
program in Sandtown, Baltimore; ten years ago he was in prison for a
violent crime.
The act of building homes for people who need them, being seen in
the community as a hero instead of a hoodlum, changes their identity
and relationship to society. They love making a difference. They love
being the ones who are doing something good instead of something bad.
They are on the streets with tool belts instead of drugs. For the first
time in their lives their grandparents are proud of them and their
neighbors admire them. Other young people ask, ``How can I do what you
are doing? How can I get into YouthBuild?'' It's contagious. The result
is that in every community 2 to 10 times as many young people apply as
can be accepted, purely through word of mouth. In North Philadelphia
1,000 young people apply annually for just 200 openings. Where will the
other 800 go? There are precious few options. I have watched them leave
the waiting room, crying.
The Formula for Success
What attracts disconnected young people to YouthBuild is the
comprehensiveness of the program coupled with the philosophy of
profound respect for their intelligence and inherent value. The
necessary program components are as follows:
1) a way to resume their education toward a high school diploma and
college;
2) skills training toward decent-paying, family supporting jobs;
3) an immediate, visible role contributing to the community that
gains them respect from family, neighbors and adults generally;
4) stipends or wages to sustain themselves and their children;
5) personal counseling from admired and deeply caring adult role
models, some of whom have the same background as the young people, who
are committed to the young people's success, who also firmly challenge
self-defeating behavior and attitudes;
6) positive peer support with an explicit value system strong
enough to compete with the streets;
7) a mini-community to belong to that stands for something they can
believe in and in which everyone is committed to everyone else's
success;
8) a role in governance, participating in making important
decisions regarding staff and policies in their own program;
9) leadership development and civic education that provide a vision
of how they can play an important role in the neighborhood and society
by changing the conditions that have harmed themselves and the people
they love, and that gives them the skills to do so;
10) assistance in managing money and building assets, as in
scholarships, and personal budgeting;
11) linkages and placements with colleges and employers; and
12) support after graduation that goes on, sometimes for years, as
a member of a supportive community.
These program elements need to be implemented with profound respect
for the intelligence and value of the young people, as well as for
their culture. This comprehensive set could be adopted by many other
programs for youth beyond YouthBuild.
YouthBuild as an Example of a Public-Private Partnership for Social
Innovation
Each YouthBuild program is run by a non-profit community-based
organization or local public agency with deeply rooted leadership and
commitment to community development in America's poorest communities.
Some of them are autonomous agencies and some are local affiliates of
large national non-profits like Goodwill, YMCA, Urban League, or the
United Way. The entire system operates as a dynamic public-private
partnership, with national direction from DOL and YouthBuild USA and
local roots, linking the power of government with the creativity of
social entrepreneurs to create solutions to social problems. The non-
profit entities bring private funds into the system to generate
innovation and flexibility. Most of the major private foundations have
supported innovation in the YouthBuild network. The YouthBuild network
is a well developed model of what will be created by the Fund for
Social Innovations authorized in the Edward M. Kennedy Serve America
Act.
Goals
YouthBuild USA's goal is to open the doors of YouthBuild to every
youth that is knocking and provide the resources to every community-
based agency competent to sponsor a YouthBuild program. Over 1,800
communities have applied for YouthBuild funds and thousands of young
people are turned away each year. The Obama Administration and our
champions in Congress have proposed a steady expansion of YouthBuild to
50,000 young adults per year. I ask your help in making that possible
through a steady increase in the YouthBuild appropriation. DOL's
YouthBuild program received $120M in FY'09; to reach 50,000 youth/year
it will need $1B. It does cost about $20,000 per full year per student,
but this includes wages for the housing they produce, and is still less
than the other full-time options for out-of-school youth: less than the
military, college, Job Corps, or prison. The return on investment is
enormous. One recent study by Professor Mark Cohen documented that
every dollar spent on a court-involved youth in YouthBuild provided a
return on investment of at least $10.90. This is an investment worth
making.
Attached are testimonies from YouthBuild graduates that will give
you the full picture.
Thank you very much for your support over the years.
______
Youth Testimonies
From Violent to Activist
By Ely Flores
As a child, I was abandoned by my father and I grew up in both
south Hollywood and South Central L.A.--in a under resourced, oppressed
community where more youth are sent to prisons rather then
rehabilitation programs. Our mothers were so overwhelmed they could do
little to prevent us young men from searching for meaning on streets
that led straight to prison or death. Violence was my learned
resolution for all the challenges I faced. Like many young people who
grow up in poor, disenfranchised communities with few opportunities, I
lived by the law of ``dog eat dog'' and ``survival of the fittest''.
I raised my fists in violence over nothing. Maybe someone made fun
of my shoes or clothes. Perhaps someone talked negatively about my
mother, brother, or sister. Perhaps someone challenged my so called
``man hood.'' A fight was always the conclusion. Where I'm from, being
scarred and bruised was like wearing military stripes or medals won on
a battlefield. Whenever the pain was too much to bear, a dose of
Marijuana relieved me. The older gangsters found it fun to pit a kid
against another kid by instigating little disagreements that devolved
into a fight. Violence was normal. It was entertainment and to us kids,
it seemed normal.
Violence plus the lack of resources made it easy for me and other
kids to pursue fantasy lives--to emulate gangster lifestyles and drug
dealing. My brother and I slipped into that, too. I've been in
situations where I was forced to fight individuals for ``claiming''
(stating) their membership to another gang that we did not get along
with. My anger and violence led me to use weapons; to hurt people. I
conditioned myself not to care whether or not my victim ended up in the
hospital or dead. The same rules my homies and I lived by, also ruled
the people I thought of as my enemy.
One of the experiences that changed my life was when one of my
homies was shot dead at the age of 14. He used to be a skate boarder.
He always promised that he'd never join a gang. But one day peer
pressure--and a lack of other options--got the best of him. He joined
the local gang. A month later he was shot and killed next to my
Grandmother's house. The cycle continued with years of retaliation.
Life stories alike mine are common amongst poor and disenfranchised
youth everywhere in the U.S. First we begin to hang out with gangs and
eventually this road takes us to places like prison, drug addiction,
and homelessness and for some death.
As I began developing my consciousness about social issues, I asked
myself, ``Why are there so many poor people in prisons and especially
black and brown people? And why do they keep going back? Is it the
people's fault, the community's fault, or the parents?'' Then I
realized that I was trying to come up with answers from an oppressed
and deficit perspective. Of course there has to be some accountability
for the people but accountability also must lie with institutions that
contribute to the issue and don't help solve this issue.
South Central LA is already a poor community but continuously
prisons and police continue the criminalization of many colored
communities. I agree that there needs to be law enforcement and
incarceration for the extreme but I also believe that there needs to be
an equal amount of resources, programs, jobs and rehabilitation coming
to the community as police, incarceration, and the building of more
prisons.
As my life turned into a gang life style, incarceration followed.
For four years I was going in and out of prison. Some people say I was
just a knuckle head but I say that the mission statements of jails that
claim to rehabilitate people skipped me. I was never given any
resources to better my life or those of my community. I had to go hunt
and find resources out of my community because there weren't any in
mine. I was hungry for a change but jail and probation officers never
believed me. I found organizations like the Youth Justice Coalition and
LA CAUSA YouthBuild that believe in the empowerment of young people to
better their lives and their communities.
LA CAUSA YouthBuild, an affiliate of YouthBuild USA, and a grantee
of the US Department of Labor's YouthBuild program, introduced me to a
life of positive transformation, self accountability, and leadership.
They offered me resources with the only cost of bettering myself. I
participated full-time and earned my GED, while I learned job skills by
building affordable housing for homeless and low income people while
they offered me personal counseling, positive role models, a safe
environment, and leadership skills. I even earned an AmeriCorps
education award. They offered me resources that jails and probation
officers never did. They offered me a key to open a door to a new road.
A road that would forever change my life.
Because of that key they offered me, I became an activist. Because
of that key, I have developed a passion for community work and helped
numerous people in diverse and challenging communities. That
opportunity that is rarely given to people was given to me and has
enabled me to become an expert in the field of Youth Development,
Leadership development, and Community Organizing and has allowed me to
train others across this nation. That opportunity and handing of
resources has given me congressional recognition by Hilda Solis and
recognition from the city of Los Angeles. That recognition has even
given me the opportunity to fly to Israel and devote my time to try and
build peace amongst Israeli and Palestinian Youth. Imagine that; an ex
gang member, drug addict and ex criminal that now offers his life and
time to serve for the cause of peace and the people.
I want you to imagine for a minute that me, Ely Flores of Los
Angeles, CA, the person that stands in front of you today, was never
given that key for transformation. What would have I become? A long
term prisoner, a wanted felon or just another city and national
statistic of incarcerated people of color. Your guess is as good as
mine. But that key was given to me by a group of colored people that
looked like me, that created an organization that offered me resources
and empowerment in East Los Angeles and deterred my direction of
destruction towards a direction of productivity. The resources to give
me that key came from the federal government, thanks to decisions of
legislators like you, who decided to fund the federal YouthBuild
program. The problem is, that the 226 YouthBuild programs that have
been created with federal funds and serve just 8,000 youth a year are
turning away many thousands of young people like me every year for lack
of funds, and 1,000 organizations have applied to the federal
government for YouthBuild funding and most have been turned away for
lack of funds. This is a sin and a tragedy, as I think of the young
people coming behind me who will not have the opportunity I have had.
I urge you all to offer keys of transformation to the thousands of
youth and adults with a potential like mine. With the potential to
become agents for change to their communities and the future of this
nation. Think about my story and use it as proof that change is
possible in communities dominated by the gang culture if you just
provide and offer well-designed and well-managed resources and
opportunities to communities in poverty. Equalize resources and
opportunities to those of the rising prison systems. Be the producers
of those keys that will open thousands of doors of hope, doors of
transformation, and doors of change to people like me.
I thank you for your time and always keep in mind that it is
possible for a gang member to become a productive member of society and
it is possible for a gang member to become an agent for positive
change. Thank you.
______
Alischa Ann Singleton
Hope Center, Inc., Gretna, LA
Hi, my name is Alischa Ann Singleton and I'm a 20-year-old proud
participant of the YouthBuild program of Hope Center, Inc.
My future was so promising. I was a senior in high school with some
of the best opportunities awaiting me. Hurricane Katrina came and I
lost sight of what was most important. Katrina totally destroyed my
home and made me feel hopeless. After the storm things were really
tough so I decided to take on a job to help out with my circumstances.
The job I took on was during school hours and I really needed this job
to help out with my siblings. So I decided to drop out of school. At
that time I felt I was making the best choice for my family.
Before enrolling in the program at Hope Center, my life was headed
for destruction. I was working a dead end job that was paying me
minimum wage. I felt like I could work my way up to the position I
wanted at work but my spirit would not let me settle for just a job.
Something inside of me said that I needed to go back to school, so that
I could fulfill my dreams. I did not want to be the person who could
have made it, but didn't. So I made up my mind that no one was going to
stop me from achieving my goal.
One day I was at home thinking about how I can make a change in my
life and then I heard the Hope Center being broadcast on the radio.
They were saying that they were giving young teens a second chance to
finish their high school education. At that very moment something
inside of me said that this was my second chance to make myself and my
community proud.
So because of Hope Center's YouthBuild Program I have completed my
high school education. I'm becoming a positive leader in my community,
and I'm on my way to college. This program has given me so much. Hope
Center's YouthBuild has helped me realize that no matter what you've
done in your past, that there's always a chance to better your future.
Hope Center has made me a better person. My perspective about my
community and life has matured. Through this program I can honestly say
that I'm proud that I'm a part of it.
Due to Hope Center's YouthBuild program I'm in a position where
I've been offered a job upon graduation. I give thanks to everyone
that's a part of the organization and for giving me the opportunity to
give back to my community even though I'm not rich and famous.
______
Wayne Whack
YouthBuild Philadelphia Charter School, Philadelphia, PA, Class of 2006
As I reflect back on my experience at YouthBuild Philadelphia
Charter School, I am reminded of the process that I went through to
become a student in the program. The high school I attended before
gaining acceptance at YouthBuild was not meeting my needs. The support
in the school was lacking, as was the sense that you were even cared
about as a student. The caliber of the teachers was sub par; they would
hand out crossword puzzles rather than give the students work to do
during the period. To top it off, each class had about 38 to 40
students, which was very distracting. Most of the teachers approached
the students as if the students knew why they were there and were
expected to teach themselves. There was also a lack of supplies for the
students and this was a huge turn off. Due to these factors, I stopped
attending class because I felt I needed more and deserved more.
I learned of YouthBuild Philadelphia and began to pursue the
acceptance process. Being a student at YouthBuild allowed me to have
the level of comfort to let my guard down. Initially, I entered the
school under the pretense that the school ``owed'' me something and
that I was entitled to whatever services that were offered. It was not
until becoming further acquainted with the school and the staff that I
realized that the program was all about uplifting me as a person. I
discovered how to become a learner at YouthBuild. I discovered that
there were talents that existed inside of me that were not able to be
brought to the surface elsewhere. I wanted to become a part of Youth
Congress, editor of the yearbook, etc., because other schools simply
did not have the opportunities for me to grow and expand. The biggest
thing about YouthBuild, however, is the genuine love and dedication
that the staff exudes. As a student you feel cared for, nurtured,
valued and are pushed to become the best you can possibly be. The
support that I received from the staff members enabled me to become a
strong, capable, and efficient student.
Since graduating in 2006, I have been able to give back to
YouthBuild Philadelphia through an internship and by assisting various
department programs within the school. This has allowed me to have a
behind the scene glance as to how the school and personnel are solely
dedicated to the mission at hand. Part of me wishes all of the students
could have a behind-the-scene moment in order to witness all of the
hard work and commitment that goes into each day to ensure that the
students get the best education they can. I have witnessed that it is
not just a ``job'' to the staff at YouthBuild, it is a calling. As a
graduate, I made a promise to myself that I would keep in touch with
the school. The school constantly speaks of YouthBuild as a family and
it truly is. It is a very positive thing for me to stay in contact and
I consider YouthBuild my family. I chose to participate in Youth
Congress because I want to remain on the scene with the program. I talk
with people on Facebook who are former students, and I am constantly
looking to engage myself in YouthBuild activities. My sister and cousin
are currently students here because I could not imagine not passing
this experience on to others. I wanted to introduce my new family to my
blood family so that their lives could forever be enriched and changed
like mine.
In closing, the future of YouthBuild is not only bright because of
the personnel and the way in which the staff are seemingly handpicked
to guarantee the right people are teaching and working in the program.
But it is also bright because of the vision of a new-found movement
entitled A Thousand Leaders. This movement is in place to bring forth a
thousand leaders of YouthBuild students from all over the country to
help enhance the vision and the drive of the mission. It will be my
honor and duty to be a voice within the National Alumni Council and
bring to the forefront all of those students that will speak for the
cause. There are leadership qualities and capabilities in everyone and
nothing will please me more as a YouthBuild alum than to encourage and
support those students that can stand with me and lead for a stronger
and better YouthBuild.
______
Wilfried Plalum
Youthbuilding Alternatives, Portland, ME, Class of 1995
YouthBuild has helped shape my life for the last thirteen years.
The oldest of seven children, I came to the US not by choice but as
part of the lost boys of Sudan. Both my parents were killed in the
civil war in 1997. My parents were refugees when I was born, and when
they were repatriated to Sudan, another war had begun. I was eleven. By
the time I was seventeen years old I had lived in displacement camps
inside Sudan, jailed by the government in Khartoum, escaped and lived
in refugee camps in Uganda and Kenya, and after years in the camps I
finally came to the US in 1994.
While playing soccer, I met one of the YouthBuild staff who
introduced a group of us to the program where I immediately enrolled
and got my GED and got a certificate in construction. In my country of
origin I was unable to complete my education and in total, only ten
years of school were completed. After program completion I was awarded
an AmeriCorps scholarship which encouraged me to apply to college and
in 1997 was enrolled at the University of Maine, where I graduated in
2002 with a BA in International Relations. Upon graduation, I returned
to Portland, Maine, where I volunteered as a community leader in the
Sudanese community and have been helping Sudanese file for green cards,
teaching citizenship classes, being an adult education volunteer
teacher, establishing youth soccer teams, helping write resumes,
helping Sudanese women get their drivers permits, and most importantly
helping them file for financial aid and college applications and
college tours. In 2004 I volunteered for the Kerry Campaign where I did
a voter registration drive and most importantly, I voted for the first
time in my life!!
After working as a Refugee and Immigrant Children's Case Manager
for a year I decided to enroll in a Masters Intensive Program at
Southern New Hampshire University School of Community Economic
Development. Thanks to the Helene D. Stoneman scholarship and an IDA
account, YouthBuild USA helped pay part of my first and second
semesters at Southern New Hampshire University.
After eighteen years, I returned to south Sudan to start a youth
development project modeled after YouthBuild. It engages war-affected
youth ex-combatants in reconciliation, conflict resolution, and
reconstruction of the country through building and construction while,
at the same time, getting basic education, job training, and leadership
practice and entrepreneurship. Initially, the pilot project was for
fifteen students but it has since been overwhelmed with more than it
can absorb.
While in south Sudan, I volunteered as a high school teacher
teaching evening classes. As a research assistant I helped establish
the office of South Sudan Human Rights Commission, and I helped prepare
the budget and strategic plan for the Commission, among other things.
In this past election, I helped in registering new voters from my
community who voted for the first time. Currently, I keep in touch with
the local YouthBuild program where the staff act as mentors to me in my
daily life. What is stated above would not have been possible without
YouthBuild, to whom I offer all the credit of my success and of many
other youth in the program that continues to touch many in different
shapes and forms. It is also one that can give hope to youth in post-
conflict Sudan and the world over that we can be productive and be part
of ``change we believe in.''
______
Chairman Miller. Would the YouthBuild students just stand
up so the members of the committee might recognize you? Thank
you for being with us today. Thank you. [Applause.]
Thank you.
Mr. Wilson?
STATEMENT OF D. MARK WILSON, PRINCIPAL, APPLIED ECONOMIC
STRATEGIES, LLC
Mr. Wilson. Chairman Miller, Ranking Member Kline, and
distinguished members of the committee, the current state of
the labor market for young Americans is not very good. Since
August--well, I should say, over the past 4 months young
Americans have lost an average of 165,000 jobs per month,
compared to a loss of 94,000 jobs a month from January through
April.
And the employment rate for young Americans is at an
historical low level. About the only good thing you can say is
that this group typically has a shorter duration of
unemployment and that over time eventually things will get
better.
Although I understand the desire to include funding for a
summer jobs program in the stimulus package, the hasty passage
of the bill and its implementation resulted in duplicative
standalone programs in many areas that, according to a recent
GAO report, resulted in a number of unnecessary startup
problems, and we may never know if the program was effective or
not.
For example, many states and local areas had difficulty
determining and documenting the youth eligibility, particularly
for older youth, and some local areas did not always verify
participants' eligibility or collect the necessary
documentation. In one state, GAO found that less than 42
percent of the participants were placed in summer employment
activities, and in one city none of the youth received any
academic training through the summer program.
Perhaps most troubling, the GAO also found that one city
had significant internal control problems with paying youth and
20 percent of the participants were either owed a paycheck or
were not paid on time. Further, the GAO found that the
methodologies used to measure the effectiveness of the program
varied widely, calling into question the comparability and
usefulness of the performance measures. Although many program
officials believe that the summer program was successful,
measuring actual outcomes has proven challenging and may
actually reveal very little about the effectiveness of the
program.
Recent increases in the minimum wage have also reduced
economic opportunities for young Americans. A decade after Card
and Krueger's book, ``Myth and Measurement,'' the preponderance
of economic research on the minimum wage supports the consensus
view held prior to 1995 that a 10 percent increase in the
minimum wage reduces the employment opportunities for young
Americans by 1 to 3 percent. This research suggests that the 40
percent increase in the minimum wage over the past 3 years has
reduced the job opportunities for teenagers by 12 percent, or
about 750,000 jobs.
Young minimum wage workers usually earn low wages because
they lack skills and experience. When they become less
employable because the minimum wage rises, their loss goes well
beyond the wages that they are not earning; they also lose the
opportunity to gain skills that would allow them to move up the
career ladder without the need for a job training program.
The purpose of the Workforce Investment Act and the youth
program is to provide low-income youth with the services that
lead to successful employment and higher earnings. However,
previous studies of job training programs raise serious
questions about their effectiveness.
Moreover, an evaluation of this summer's job training
program is not expected to be completed until 2011, and a
rigorous evaluation of the WIA youth programs is not expected
to be completed until 2015. Before Congress expands these
programs with large funding increases or enacts new youth
programs, it should reauthorize WIA and address the issues that
have arisen in that program since its enactment. Without
knowing how effective the current youth programs are, Congress
should proceed very carefully.
Finally, in the long run the best way to ensure economic
opportunities for young Americans is to improve the quality and
rigor of K through 12 education. That will reduce the need for
remedial education and job training programs in the future.
Policymakers at all levels should be promoting the value, and
dignity, and the importance of trade occupations.
And finally, community colleges should be working very
closely with all of the employers in their area. Reducing
marginal income taxes, payroll taxes, and keeping them as low
as possible will increase the economic growth and job
opportunities for all Americans, both young and old.
Thank you, and I will be happy to answer any questions you
might have.
[The statement of Mr. Wilson follows:]
Prepared Statement of D. Mark Wilson, Principal of Applied Economic
Strategies, LLC
Chairman Miller, Ranking Member Kline, and distinguished members of
the Committee: The current state of the labor market for young
Americans is dismal. The labor force participation rate for 16 to 24
year olds is at its lowest level since the Vietnam War and the
employment rate is at an historic low of 47.2 percent. In August, the
unemployment rate for this group stood at 18.2 percent, its highest
level since 1983, and close to the record high of 19.0 percent set in
1982. Over the past four months (May to August), young Americans have
lost an average of 165,000 jobs per month, compared to a loss of 94,000
jobs per month from January to April. About the only good thing you can
say is that this group typically has a shorter duration of unemployment
than older workers and over time these numbers will improve.
Serious Problems with the Stimulus Package
Although the Workforce Investment Act (WIA) Youth Program requires
state and local workforce investment boards to include a summer
employment component in their year-round programs, after the stimulus
package was enacted the Department of Labor issued guidance indicating
that local areas could implement stand-alone summer youth employment
activities with the $1.2 billion provided in the bill. According to a
recent Government Accountability Office report this unnecessary and
costly duplication led to a number of start-up problems. For example,
many states and local areas that no longer offered a stand-alone summer
program had difficulty determining and documenting youth eligibility,
particularly for older youth, and some local areas did not always
verify participants' eligibility or collect the necessary
documentation. Moreover, in one state the GAO found that less than 42
percent of participants were placed in summer employment activities,
and in one city none of the youth received academic training through
the summer youth employment programs funded by the Recovery Act.
Perhaps most troubling, the GAO also found that one city had
significant internal control problems with paying youth and 20 percent
of the participants in its summer youth program were owed a paycheck or
were not paid on time. The GAO also found problems with employers when
participants reported to work for the first time. Some participants
were left stranded because their prospective employers had pulled out
of the program, others employers had asked for more workers than they
needed and sent participants back to the workforce board.
Finally, the stimulus package only required that a work readiness
measure be used to assess the effects of the summer-only youth
employment activities, and under DOL's guidelines, states and local
areas were permitted to determine their own methodology to make this
assessment. The GAO found that the methodologies used to measure work
readiness varied widely, calling into question the comparability and
the usefulness of the performance measure when rolled up to the
national level. While many program officials, employers, and
participants GAO spoke with believe the summer youth activities were
successful, measuring actual outcomes has proven challenging and may
reveal little about what the summer activities actually achieved.
Increasing The Minimum Wage Reduced Economic Opportunities for Young
Americans
A decade after Card and Krueger's book, Myth and Measurement: The
New Economics of the Minimum Wage, the preponderance of economic
research on the minimum wage supports the consensus view held prior to
1995 that a 10 percent minimum wage increase reduces the employment of
teenagers and other low-skilled workers by 1 to 3 percent. This
research suggests that the 40.8 percent increase in the minimum wage
over the past three years, from $5.15 to $7.25 per hour, has reduced
the job opportunities for teenagers by 12.2 percent, or 746,000 jobs;
with the last increase in July 2009 leading to further reductions in
the hiring rate for teenagers this past summer.
Young minimum wage workers usually earn low wages because they lack
skills and experience. When the minimum wage forces employers to pay
higher wages, they are more likely to substitute higher-skilled and
productive workers for lower-skill workers, particularly when labor
markets are very weak.
When young Americans become less employable because the minimum
wage rises, their loss goes beyond the wages they are not earning. They
also lose the opportunity to gain the skills that would allow them to
move up the career ladder. Minimum-wage jobs are often entry-level
positions that teach inexperienced workers the skills that make them
more productive employees and enable them to earn more, without the
need for job training programs. Skills like how to interact with
coworkers and customers have to be learned on the job, and minimum-wage
jobs provide young workers the opportunity to learn these skills.
If Congress is really interested in ensuring economic opportunities
for young Americans, it will refrain from raising the minimum wage for
quite some time.
Federally Funded Job Training Programs Are Expensive
Increasing job training programs can be a costly way to train young
adults. For example, this past summer's job training program cost an
average of $4,000 per participant compared to an average of $2,400 for
one year of community college classes. On average, the WIA youth
programs cost an average of $3,700 compared to an average of $6,200 for
one year at a public university. And the most intensive youth program,
Job Corps, costs more than some four-year private schools.
Reauthorize and Fix WIA Before Expanding Job Training Programs
The purpose of the WIA youth program is to provide eligible low-
income youth with services that lead to successful employment and
higher earnings. However, previous studies of job training programs
raise serious questions about their effectiveness. For example, a 2003
evaluation of the Quantum Opportunity Program found it did not increase
the likelihood of graduating from high school, going on to college,
entering an apprenticeship, or going into the military. Nor did the
program increase employment and earnings outcomes. And the Summer
Training and Education Program had no lasting effects on the
educational attainment, employment, or welfare participation of
participants 2 to 3 years after the program.
Moreover, an evaluation of this summer jobs program is not expected
to be completed until 2011, and a rigorous evaluation of the WIA youth
program is not expected to be completed until 2015. Before Congress
further expands these programs with large funding increases or enacts
new programs, it should reauthorize WIA and address the issues that
have arisen since its enactment. Without knowing how effective the
current WIA youth programs are Congress should proceed very cautiously.
The Long-Term Solution
In the long-run, the best way to ensure economic opportunities for
young Americans is to improve the quality and rigor of K-12 education,
which will reduce the need for remedial education and job training
programs in the future and provide a better basic skill-set for the
future workforce. Policymakers at all levels should be promoting the
value, dignity, and importance of the trade occupations; and our
current job training system should encourage community colleges to work
very closely with all employers in their area. Finally, reducing
marginal income tax rates and payroll tax rates and keeping them as low
as possible at both the corporate and individual levels will increase
economic growth and create more private sector jobs for all Americans
both young and old.
Mister Chairman, this concludes my prepared remarks. I will be
happy to answer any questions that you or the Members of the Committee
may have.
______
Chairman Miller. Thank you.
Dr. Austin?
STATEMENT OF ALGERNON AUSTIN, DIRECTOR OF THE RACE, ETHNICITY,
AND ECONOMY PROGRAM, ECONOMIC POLICY INSTITUTE
Mr. Austin. Good morning Chairman Miller, Ranking Member
Kline, and members of the committee. I am honored to speak with
you today about ensuring economic opportunities for young
Americans.
Today, young Americans face a particularly difficult labor
market, but the difficulties are not simply due to this
recession. Even during the low unemployment year of 2000 the
job market for youth was significantly worse than for older
workers. While the youth employment picture is bad generally,
it must be noted that it is even worse for Hispanic American
and African American youth.
High unemployment rates for young workers have both short-
and long-term negative effects. Current research suggests that
the labor market consequences of graduating from college in a
bad economy are large, negative, and persistent. Thus, when
thinking about ensuring opportunities for young Americans, we
need to think about what can be done to help them recover from
the negative effects of this recession even a decade or 2 into
the future.
What can be done to increase the economic success of
America's youth? I have four fairly simple recommendations:
number one, provide broad labor market education to high school
students; number two, link job training to jobs; number three,
increase the educational attainment of America's youth,
particularly Hispanic and Black youth; number four, provide
adequate financial aid for older college students.
Number one, provide broad labor market education to high
school students: More than a decade ago Ray Marshall, the
former secretary of labor in the Carter administration, stated
that ``we have no systematic processes to assist high school
graduates to move smoothly from school into employment.''
Unfortunately, this statement is still largely true today.
About 60 percent of today's youth, the majority of young
Americans, will not obtain a college degree. Who educates these
youth about their job options and the world of work?
Students tend to learn about jobs from friends and family.
This means there is tremendous variation in the quantity and
quality of information that students receive. Typically,
students from more advantaged backgrounds receive better
information. In order to begin to level the playing field,
education about the labor market should be part of the formal
high school curriculum.
Number two, link job training to jobs: The common criticism
of job training programs is that they often provide training
for nonexistent jobs. The Registered Apprenticeship program
provides on-the-job training, and thus is the ideal jobs
training program.
The Registered Apprenticeship program should be expanded
into nontraditional areas outside of manufacturing and
construction. Other jobs training programs should also be
designed for jobs that actually exist.
Number three, increase the educational attainment of
America's youth, particularly Hispanic and Black youth: Current
research suggests that the choice of a college can decrease or
increase the likelihood that a particular student obtains the
college diploma. A study of Chicago public school graduates
found that the average student's likelihood of graduating
varied dramatically depending on the college attended.
The six most popular in-state colleges graduated Chicago
public school students at a rate of 26 percent. Less popular
in-state colleges, however, had a Chicago public school
graduation rate of 46 percent--20 percentage points higher.
High school students should be educated about the
importance of considering the college graduation rate in
choosing a college. It is a small step that has the potential
to have a big effect on college graduation rates.
Number four, provide adequate financial aid for older
college students: The recession will have lasting negative
economic effects on young workers. The economic success of
young workers will be affected by the amount of opportunities
they have to acquire additional education and training over
their lifetime.
In 2007, 20 percent of students pursuing and undergraduate
degree were over 29 years old. Over time we are seeing fewer
and fewer college students who fit the traditional stereotype.
We have to adapt the financial aid resources that we provide
for college students to match this increasingly age-diverse
population.
Thank you. I am happy to answer any questions.
[The statement of Mr. Austin follows:]
Prepared Statement of Algernon Austin, Director, Program on Race,
Ethnicity and the Economy, Economic Policy Institute
Good morning, Chairman Miller, Ranking Member Kline, and members of
the committee. I am honored to speak with you today about ``Ensuring
Economic Opportunities for Young Americans.''
The current recession is taking a toll on all Americans, but young
Americans face a particularly difficult labor market. In August of this
year, the unemployment rate for young workers under 25 years old was
significantly higher than for older workers. The unemployment rate for
workers 25-to-54 years old was 8.7%. For 20-to-24 year olds, the August
unemployment rate was 15.1%. For 16-to-19 year olds, it was 25.5%. (See
Figure 1.) Even youth who have recently completed college are facing
historically high unemployment rates.\1\
These greater difficulties for young workers are not simply due to
this recession. Even during the low-unemployment year of 2000, the job
market for youth was significantly worse than for older workers. In
August of 2000, workers 20-to-24 years old were more than twice as
likely to be unemployed as workers 25-to-54 years old. Workers in their
teens were more than three times as likely as 25-to-54 year olds to be
unemployed. (See Figure 1.)
High unemployment rates for young workers have both short- and
long-term negative consequences. When many young people who would like
to work cannot find work for an extended period of time, there is the
risk that some of them will give up on the formal labor market
completely and become discouraged workers. For males, higher youth
unemployment rates are strongly associated with higher crime rates.\2\
In the long-term, work experience acquired as a youth is correlated
with better social and economic outcomes in later years.\3\
Recessions bring specific harm to young workers. Current research
suggests that ``the labor market consequences of graduating from
college in a bad economy are large, negative and persistent.'' \4\
College graduates who enter the labor force in a bad economy see lower
starting wages relative to wages in more fortunate times. Wages for
these young workers in a recession are 6% to 8% lower for each
additional percentage point increase in the national unemployment rate.
This negative wage effect does decrease with each passing year, but
even 15 years after college graduation, wages are lower for those who
graduated during times of higher unemployment.\5\ Thus, when thinking
about ``Ensuring Opportunities for Young Americans,'' we need to think
about what can be done to help them recover from the negative effects
of this recession a decade or two into the future when they are middle-
aged Americans.
While the youth employment picture is bad generally, it is even
worse for Hispanic-American and African-American youth. For example,
the black youth unemployment rate for 16-to-19 year olds and for 20-to-
24 year olds are both more than ten percentage points higher than the
comparable white rate. (See Figure 2.) All of the negative effects that
accompany high youth unemployment can therefore be assumed to be more
strongly felt among Hispanic and African-American youth.
What Can be Done to Increase the Economic Success of America's Youth?
Although the current recession has been a particularly deep and
long one, eventually it will end. As mentioned previously, the problem
of high youth unemployment is not specific to our current situation. In
the area of education and job training, there are specific policies
that will improve youth economic outcomes in non-recessionary labor
market situations. Also, we should be thinking about what can be done
to improve the economic circumstances of young workers who have been
set back by this recession in the years to come.
Provide Broad Labor Market Education to High School
Students
More than a decade ago, Ray Marshall, the former secretary of labor
in the Carter administration, stated that ``we have no systematic
processes to assist high school graduates to move smoothly from school
into employment.'' \6\ Unfortunately, this statement is still largely
true today.
In fact, the situation may be worse today because of changes in the
American labor market. As one analyst argues, ``The need for career
coaching and planning support * * * is undeniable. Gone are the days
when workers were hired by big, vertically integrated companies and
then climbed identifiable company career ladders. Today's labor market
is far more dynamic.''\7\ This dynamism makes the labor
market more difficult for all workers to understand and navigate. But
one can imagine that making wise career decisions are especially
difficult for students still in high school.
While we should work to increase the educational attainment of all
Americans and particularly of Hispanic and black youth (more on this
topic below), it is also important to realize that not every student
obtains a college degree. Who educates these students about their job
options?
Students tend to learn about jobs from friends and family. This
means that there is tremendous variation in the quantity and quality of
information that students receive. Typically, students from more
advantaged backgrounds receive better information.\8\ In order to begin
to leveling the playing field, education about the labor market should
be part of the formal high school curriculum.
We need to formalize the process by which high school students
learn about things such as which high-paying jobs do not require a
college degree, how to prepare a resume or job application, job
interviewing skills, as well as other information about the labor
market.
Knowing how to acquire a job is important. Knowing how to keep one
is also important. Employers are currently stressing ``soft skills'' as
job requirements.\9\ Do high school students know what ``soft skills''
are and how to demonstrate that they have them? This information should
be part of every state's high school curriculum.
Labor market education should begin with a broad overview of
different types of jobs, their typical pay, and their typical
requirements. This knowledge should help students select a career path
rather than stumble upon one. Ideally, labor market education should
open up students to consider jobs and career paths beyond those of
their family and friends.
Given the dynamism of the labor market due to technological
advances and global competition, it is important for students to
integrate the idea of a dynamic labor market into their thinking.
Students should be educated about which occupations are expected to
experience strong job growth as well as their expected salaries, so
that they are more equipped to set their sights on the economy of
tomorrow and not the economy of yesterday.
Broad labor market education would help provide the many students
who do not obtain a college degree with some guidance in starting and
succeeding in their careers. It should also level the playing field a
bit, by ensuring that the most advantaged students do not have
exclusive access to the most desirable jobs.
Link Job Training to Jobs
A common criticism of job training programs is that they often
provide training for non-existent jobs. The Registered Apprenticeship
program provides on-the-job training and thus is the ideal jobs
training program. The program has an impressive track record. As one
assessment states:
Registered Apprenticeship trains more workers for high-skilled,
high-wage careers than any other public workforce investment program in
the nation, at a fraction of the cost. Sponsors express great
satisfaction with their programs, with an employer satisfaction rate of
87 percent * * * * There is also high satisfaction among apprentices
particularly with wages. The Upjohn Institute conducted a net impact
and cost-benefit analysis of the Washington State workforce system in
2006 and found that earnings increases associated with apprenticeship
training were substantially higher three to four years after leaving
the program than other post-secondary educational programs (community
colleges, private career schools and career and technical
education).\10\
Registered Apprenticeships provide excellent training for real jobs
in a cost-efficient manner.
The Registered Apprenticeship program should be expanded into non-
traditional areas outside of manufacturing and construction. Currently,
the majority of apprentices are working in traditionally male, blue-
collar occupations.\11\ More occupations in growing fields should be
incorporated into the program.
Other jobs programs should also be designed for jobs that actually
exist. Pre-apprenticeship programs are good when they can funnel
students directly into Registered Apprenticeship programs. Green jobs
training programs should also ideally be linked to actual green jobs.
At the very least, job training programs should be designed with the
current and future needs of the local labor market in mind.
Increase the Educational Attainment of America's Youth,
Particularly Hispanic and Black Youth
Higher educational attainment is associated with lower unemployment
rates and higher income. The educational attainment of Hispanic-
American and African-American youth, in particular, should be
significantly higher than it is. In 2008, 37.1% of whites 25-to-29
years old had obtained a bachelor's degree or higher. The corresponding
rate for Hispanics was 12.4% and for blacks 20.4%.\12\ We could improve
the economic outcomes for Hispanic and black youth by improving their
educational attainment.
Current research suggests that the choice of a college can decrease
or increase the likelihood that a particular student completes college.
A study of Chicago Public School graduates found that the average
student's likelihood of graduating varied dramatically depending on the
college attended. Unfortunately, the six most popular in-state colleges
graduated Chicago Public School students at a rate of 26%. This rate is
adjusted for student socioeconomic status, demographic characteristics
and academic achievement. Less popular in-state colleges, however, had
a Chicago Public School graduation rate of 46%, 20 percentage points
higher. An average student from a Chicago Public School could,
therefore, significantly increase their likelihood of college
completion by choosing one of the less popular schools.\13\
Too many students begin college but never obtain a college degree.
This problem seems to be exacerbated among lower-income students who
``even when they are better qualified--often go to colleges that excel
in producing dropouts.'' \14\
High school students should be educated about the importance of
considering the college graduation rate in choosing a college. Detailed
college graduation rate data by race and ethnicity is now widely
accessible through the Education Trust's College Results Online data
tool.\15\ This information needs to be incorporated into high school
student college decision-making. It is a small step that has the
potential to have a big effect on college graduation rates.
Provide Adequate Financial Aid for Older College Students
The recession will have lasting negative economic effects on young
workers, and young workers today find themselves in a far more dynamic
and globally competitive labor market than previous generations. The
economic success of young workers will be affected by the amount of
opportunities they have to acquire additional education and training
over their lifespan.
Just because an individual did not obtain a college degree in his
twenties doesn't mean that he cannot obtain a college degree later in
life. Many Americans are well aware of this fact. In 2007, 20% of
students pursuing an undergraduate college degree were over 29 years
old.\16\ Over time we are seeing fewer and fewer college students who
fit the traditional stereotype of a late-teens-to-early-twenties
individual, attending a residential college full-time.
Because we want American workers to have the opportunity to change
careers and increase their earnings over time, it is encouraging that
individuals 30 years and older are pursuing undergraduate degrees.
However, we have to adapt the resources that we provide for college
students to match this increasingly age-diverse population.
The student financial aid system is still designed with the
``traditional'' college student in mind. We have to design financial
aid packages for students who are not attending college full-time.
These students are increasingly working full-time and supporting a
family. We also have to consider ``micro-lending'' aid models for
students who need a few technical courses but not a college degree.\17\
We will make higher education more accessible and increase the
human capital of American workers to the extent that we acknowledge and
support the increasingly common ``non-traditional'' college student.
Conclusion
The economic fates of young workers are ultimately tied to the
strength of the American economy. Beyond overall economic conditions,
much can be done to improve the educational and training outcomes of
young workers and thereby improve their likelihood of economic success.
We have to begin with high school curricula. Students need better
information and guidance about finding good jobs that do not require a
college degree and they also need better advice concerning college
selection. Our jobs training programs need to be connected to the
current and future labor market and ideally connected to real jobs. If
we can expand the Registered Apprenticeship program into new and
growing fields we will provide an avenue for upward mobility for many
young workers. Young workers will be set back by this recession. Many
of them, in years to come, will return to school to acquire new skills
and credentials. The financial aid system should be modernized to
provide them with the assistance they need to advance their careers.
endnotes
\1\ Kathryn Edwards, ``Commencing Unemployment,'' Economic
Snapshot, June 10, 2009. Washington D.C.: Economic Policy Institute.
\2\ See for example, Ming-Jen Lin, ``Does Unemployment Increase
Crime? Evidence from U.S. Data 1974-2000,'' Journal of Human Resources
XLIII, no. 2, 2008: 413-436.
\3\ Andrew Sum, Ishwar Khatiwada, Joseph McLaughlin, and Sheila
Palma, ``The Collapse of the National Teen Job Market and the Case for
An Immediate Summer and Year Round Youth Jobs Creation Program,''
(Prepared for the U.S. House of Representatives, Subcommittee on Labor,
Health, Human Services and Education), Center for Labor Market Studies,
Northeastern University, March 2008.
\4\ Lisa Kahn, ``The Long-Term Labor Market Consequences of
Graduating from College in a Bad Economy,'' Working Paper, electronic
version, Yale School ofManagement, June12, 2009. .
\5\ Ibid.
\6\ Quoted in William Julius Wilson, When Work Disappears: The
World of the New Urban Poor (New York: Alfred A. Knopf, 1996), 216.
\7\ Louis Soares, Working Learners: Educating Our Entire Workforce
for Success in the 21st Century (Washington D.C.: Center for American
Progress, 2009), 17.
\8\ James Rosenbaum, Beyond College for All: Career Paths for the
Forgotten Half (New York: Russell Sage Foundation, 2001), 40.
\9\ Ibid.
\10\ Advisory Committee on Apprenticeship, The Future of the
National Registered Apprenticeship System: A Workforce Strategy for
Main Street America (Washington D.C: U.S. Department of Labor, 2008),
ii.
\11\ Ibid., iii.
\12\ Digest of Education Statistics, ``Table 8. Percentage of
persons age 25 and over and 25 to 29, by race/ethnicity, years of
school completed, and sex: Selected years, 1910 through 2008''
(Washington D.C.: National Center for Education Statistics, 2008).
\13\ Melissa Roderick, Jenny Nagaoka, and Elaine Allensworth, From
High School to the Future: A First look at Chicago Public School
Graduates' College Enrollment, College Preparation, and Graduation from
Four-Year Colleges (Chicago, IL: Consortium on Chicago School Research,
2006), 72-82.
\14\ David Leonhardt, ``Colleges Are Failing in Graduation Rates,''
New York Times, September 9, 2009.
\15\ The Education Trust, College Results Online, http://
www.collegeresults.org/.
\16\ Digest of Education Statistics, ``Table 191. Total fall
enrollment in degree-granting institutions, by level of enrollment,
sex, age, and attendance status of student: 2007'' (Washington D.C.:
National Center for Education Statistics, 2008).
\17\ For more on this issue, see Soares, Working Learners.
______
Chairman Miller. Thank you very much.
And thank you to each of you.
Secretary Oates, you talked about doing an after-action
review and looking--anticipating looking forward to the next
tranche. Can you tell us what that is going to be, how you see
that happening?
Ms. Oates. Certainly. You know, and Chairman Miller, one of
the things I want to point out is that, you know, under
Secretary Solis we always know we can do more and do better, so
we are never going to be satisfied. But some of the things we
are looking at are some of the things that some of the panel
members brought up today.
You know, there were problems with eligibility
verification. Some of the young people, particularly ARRA
allowed us to extend the age to 24. Some of those people had
disconnected with their parents, so to get tax verification
that they were low-income became very difficult and often a
hurdle that local areas couldn't surmount. So we would like to
come to you and talk about other ways that we could verify that
these young people were low-income without always tying it to
their parents' previous year taxes.
On the other hand, you know, I think when--I think I would
ask our critics to keep criticizing because that is how we
learn, but at least to be fair about this. You know, if I
employed a 16-year-old in the local area this year, it is going
to take me at least 2 years to figure out whether that young
person finished high school, and it is going to take me at
least 4 years to see if that young person went directly on from
high school to finish an Associate's Degree.
So some of the measures of the effects of these summer
youth experiences are going to be current and real time, and
some are going to be longer time. And while we could look at
wage and hour data to see if these young people earned more in
their part-time jobs, I think we want to be very careful about
encouraging local areas to do that. I think for too long work
has competed with academics and school, and we need to partner
with our Department of Education friends to make sure that work
and education aren't competing, that they are aligned.
So we will--we are talking with the mayors and the local
participants right now about other things about the management
of it. If given the other--if given an opportunity next year,
we would also work with employers. We would work with them on a
national scale as well as on local scales to talk about how
these summer experiences were key and how, in many instances,
they did this summer anecdotally and they will in the future
lead into full employment for those older youth.
Chairman Miller. Thank you.
On another issue, as you point out in your testimony--I
think it is Dr. Stoneman--Mr. Segal--you have a significant
number of youth engaged in these programs that have not really
thought about their going on to higher education, or maybe even
getting their GED or returning to and getting their diploma.
How do you interface that in this--you know, we have made some
very substantial changes in the loan programs with respect to
choices of careers and occupations, and loan forgiveness, and
income determinant repayment programs, where all of a sudden
people who would ask, ``Why would I borrow to go into this
profession because it has such a low starting point,'' may be
good over the long term of the career.
Now they can see their way clear that they are not going to
have to pay more than 15 percent of their income in loan at any
given time, and 25 years that loan goes away, if they are in
public service it goes away, or nonprofit it goes away after 10
years.
You are talking about a universe of people that assume that
their income status just ruled out their ability to go to
school, or the long time since they have been in school. I just
wondered, how do we successfully incorporate this information?
And Mr. Segal, I want--you work with many of these people
Mr. Segal. Sure. Well, first off, we do support a lot of
existing bills and legislation in Congress. For instance, there
is a provision that passed under the Higher Education
Opportunity Act called the John R. Justice proposal that would
give loan reimbursement to law school graduates who, say from
even greater amount of debt than undergraduates. I think two-
thirds of undergraduates have over $20,000 in debt. Well, the
average law school debt exceeds $70,000.
So a way to make that debt a little bit more manageable is
to help incentivize public service, such as being a public
prosecutor or a public defender, and then paying back the
money. It also did that for the--I think you are trying to do
that through H.R. 3200 with the Health Conservation Corps
program in terms of paying for medical school as well. So
service in order to pay for education is something that our
coalition definitely backs.
Chairman Miller. Ms. Stoneman--Dr. Stoneman?
Ms. Stoneman. Thank you. We have made an effort in the
YouthBuild network to link the YouthBuild experience building
housing to the AmeriCorps system so that low-income young
people leave with an education award. It makes a huge
difference.
The loan system has been onerous, and if you are poor and
you are burdened with these loans it has been very, very
difficult. So the Pell Grant and what you have done to make
it----
Chairman Miller. So I think that you could argue--and I
don't want to pretend that this is simple--but in a state like
California, depending on sort of year to year what they do with
the Cal Grants program, a low-income individual can really see
the way to cobble together between grants and some loans, not a
lot of loans, to go to a public--to the public system all the
way through the University of California.
Ms. Stoneman. And the community colleges also are----
Chairman Miller. But the awareness of an individual that
that is possible is a different issue----
Ms. Stoneman. Right.
Chairman Miller [continuing]. And, you know, I represent a
community 20 minutes down the road from University of
California Berkeley. I can go into the schools and many of
those students have--don't know that Berkeley exists.
Ms. Stoneman. Right.
Chairman Miller. And they don't know that they have--that
they can cobble together--I just think as we have their
attention with the employment programs--you do, obviously,
because you are taking them back and forth into the academic
setting, but even in the summer programs, they ought to leave
with a complete understanding of what their options might be,
whether they want to go to Contra Costa Community College or do
they want to go to San Jose State, if that is possible, to see
that. I just think we have to weave that into the very fabric
of this program.
We do it with a lot of year-round programs that we run and
various nonprofits run, but our word on the episodic one that
it is not part of that. But I made my point.
Ms. Stoneman. You are absolutely right.
Chairman Miller. Thank you.
Mr. Kline?
Mr. Kline. Thank you, Mr. Chairman.
My thanks to the panel for being with us today, for your
testimony, and now for discussing with us these issues. Let me
start with Secretary Oates.
Mr. Wilson mentioned the Workforce Investment Act, I did,
you did express the administration's support for it. Can you
give us some idea what the administration's timeline is for
this? Are you asking for reauthorization of this? Are you
proposing language for it? How are you addressing the
reauthorization of WIA?
Ms. Oates. Mr. Kline, we don't know each other yet, but you
will know I have great respect for Congress, so I think that
the United States Department of Labor stands ready when you
tell us what the timeline is to give you whatever technical
assistance you need. Having spent 10 years on the Senate side,
I always hate it when somebody else told us when to do a bill.
So we are waiting for you to tell us, and ready and willing
to give you technical assistance. We definitely have some
ideas.
The administration has sent some clear ideas about
simplifying eligibility, about making sure--mandating that I
work much more closely with my colleagues at the Department of
Education. So in broad strokes I think the administration has
sent clear signals, but the clearest one I would like to give
you today is, we are ready to work with you whenever you are
ready.
Mr. Kline. But you don't feel any sense of urgency? I mean,
it is clear that the administration has not been afraid to
express urgency for the Congress to do on a number of issues,
some of which we are wrestling with right now. And I am just
trying to get a sense from you about the administration's sense
of urgency on reauthorizing WIA, and you are saying you don't
have any.
Ms. Oates. Well, I think the administration's first
priority is health care, and we think that is directly related
because for us a good job for anyone means getting health care,
and I think as long as--the administration has been clear that
it is able to multitask and you have been clear that you are
able to multitask, so I can just repeat for you, we are ready
whenever you need us to work as a full partner on the
reauthorization of the Workforce Investment Act.
Mr. Kline. Okay. Thank you.
Mr. Wilson, we have heard today and seen reports of the
successes of the stimulus package through the summer program.
We are trying to get the youth engaged in employment, and I
will ask you and then maybe Secretary Oates has a comment as
well about--these job savings, this job creation, how much of
that--do you know or does the secretary know--how much of that
went to public sector government jobs and how many of it went
to the private sector?
Mr. Wilson. Secretary Oates may actually have some specific
numbers on that, but the results that I have seen so far
strongly suggest that the majority of the jobs that were saved
and/or created--and I have some question about how saving jobs
is measured--are primarily public sector positions--safety and
health positions, education positions. Many of the summer job
training program positions involve placing young adults in
positions in the public sector or in public nonprofits.
So I would say that I don't think there is any actual--
there may not be any actual specific data about this past
summer's job training program, but typically in the past the
majority of the positions has involved placing students, or
placing young adults in public sector positions.
Mr. Kline. Secretary Oates, do you know or do you have any
sense yet?
Ms. Oates. We will be able to give you more information
after the October 10th reporting deadline, but anecdotally I
would tell you that I agree, that a lot of the jobs were in
public sector. People worked in community colleges; people
worked in municipal government and did internships.
But there were a significant number of interesting jobs
that came up this summer in emerging industries. Lots of new
career lines were built in terms of health care; lots of young
kids got exposed to jobs in health care that they didn't know.
Some local areas did surveys, you know, ``What are the jobs
in health care?'' and kids responded, ``Nurses and doctors.''
But after their summer experience they were given access to
knowledge about all the careers that are the tech jobs in
hospitals as well as the back office jobs in hospitals in
things like accounting and customer service that they had
never, you know, aligned with working in a hospital.
But I will not be surprised, honestly, if we still see a
lot of emphasis on just what Mr. Wilson said--lots of people
going into nonprofits and going into local things, like I said,
community colleges, only because I think there was not the time
to build those relationships in a better way with the private
sector because of the timeline, as you brought up, and also
because some of those jobs really were being downsized so much
that opportunities for mentoring and oversight of young people
in summer work experiences weren't available. Hopefully it will
get better in the future.
Mr. Kline. Okay.
Thank you, Mr. Chairman. I yield back.
Chairman Miller. Thank you.
I would just take 1 minute--one of the reasons that the
reauthorization of WIA has been held up is because of me,
because I have not--and Mr. McKeon raised this numerous times
when he was chair of the committee--I am not satisfied that we
have a system that integrates all of the partners necessary in
a community, you know, in terms of the business community and
others. And I am encouraged by the passage of the community
college money that directs that these partners be created. Many
states have P-16 councils and the rest of that.
But in terms of trying to develop a relatively smooth and
evolving system as the economy has changed the local
communities, in many areas it sort of fits and starts, and in
many areas it is just not as much outreach. And we have been
working with members on both sides of the aisle to try to see
how we can do this so we don't just reauthorize the past but we
really think about what are the economic factors that come to
bear in a local community when either an old industry leaves or
shuts down or new opportunity presents itself?
I am kind of surprised from time to time when I go to these
organizations and everybody says they all work really well
together but they are all introducing themselves to one
another. I think there is something wrong around this table.
Mr. Kline. Would the gentleman yield for--I don't want this
whole hearing to be you and me debating the Workforce
Investment Act, but we would argue that this is a place where
you have the best opportunity for integration----
Chairman Miller. I agree.
Mr. Kline [continuing]. Where you have relationships built,
where community colleges are already engaged and career
colleges can be engaged and should be engaged, and employers.
And so we are looking forward to working with you, Mr.
Chairman, and with the administration----
Chairman Miller [continuing]. I am just a bit of a skeptic
here, as I have traveled and visited in different localities--
--
Mr. Kline. But we are starting new programs.
Chairman Miller. I just----
Mr. Kline. Okay. I won't debate this for the whole hearing.
I yield back.
Ms. Fudge. Thank you, Mr. Chairman.
And thank you to each of you on the panel. I have two
questions, the first one being that--first, I am from Cuyahoga
County, Ohio, which is the Cleveland area, and we received
approximately $14 million for workforce training from the
Recovery Act.
Approximately $6 million of that went to summer youth
programs. We hired more than, or approximately, 5,000 young
people. Would you not say that that was fairly successful?
Mr. Wilson, and then any other person on the panel.
Mr. Wilson. Well, it depends on the quality of the
positions that they received and what--in terms of being
successful, there is a number of different ways you can measure
outcomes for----
Ms. Fudge. But the goal was to get young people jobs.
Mr. Wilson. The goal is to get them jobs, but then how long
does that effect last? Do they carry that effect forward? Does
participating in that position improve their long-term
education and earning potential----
Ms. Fudge. Let me just say this to you----
Mr. Wilson [continuing]. Or is it just a very short-term 4-
or 6-week summer job program that puts extra money in their
pocket?
Ms. Fudge. Let me say this: I had a summer job. Many of
them. Each one was significant to me, whether it was for 1 week
or 2 months, they were all significant to me as a young person
growing up in a single-family home in a minority neighborhood.
My second question is, this fall I am going to be hosting a
financial literacy and leadership program for high school
seniors to teach them about money management, and I am just
curious as to whether any of the programs that we have read
about or were discussed today--Job Corps, YouthBuild,
Reintegration of Ex-Offenders--have any of those components in
those programs?
Ms. Oates. The WIA youth program encourages local areas to
include financial literacy in terms of anything they do in the
year-round programs, and to include in that cost-benefit
analysis. We need to do more in terms of getting people to
understand the cost benefit of going to school or going to a
training program in terms of their lifelong earnings.
And Congresswoman, if I may, you know, I would just like to
comment on the summer youth program. I believe that the
Recovery Act was an economic stimulus program, and I don't
think there is any doubt the 5,000 kids who were in your area
contributed to your local economy.
So while I agree with Mr. Wilson that there--it is
difficult to measure the long-term gains--and we will commit to
doing that--but boy, a short-term gain was they spent their
money and they were able to engage in things like buying books,
like buying gas for their car to get to school, that they
wouldn't have been able to do without that, and that is without
even doing the nightmare of what would have happened if they
had nothing to do all summer, and I say that not just for your
district but for kids--for the 280,000 kids all over the
country. What would they have done with all of that free time
instead of 40 hours a week preparing and attending work
opportunities?
Ms. Fudge. Thank you.
Let me also say that it gives you a sense of pride to get
up every day and know that you have somewhere to go that is
productive, that you are accomplishing something, that you are
putting money in your pocket. There is a sense of well-being
about working no matter how much you make.
So I may be looking at this very differently. I know that
there were issues with the program; I know that there are
things we could have done better. But I think that it was a
tremendous start to get these young people to understand how
important it is to work, to put yourself in a position to work,
to discipline yourself to go to school every day, to get up and
know how to dress and how to speak. It takes you throughout
your life, it doesn't just take you through that job.
And the last question I have is, my colleague, Congressman
Loebsack, and I introduced an amendment to H.R. 3221, the
Student Aid and Fiscal Responsibility Act of 2009, that would
encourage colleges and businesses to work together to train
students on the jobs available in a particular region. For
example, Sherwin Williams is a major employer in our area, and
we have worked with Tri-C, our community college, to make
certain that their students are trained for the jobs that
Sherwin Williams has available.
I would like to just have you just comment and let me know
if these kind of fixed sector programs are helpful to our young
people.
Ms. Oates. I think the sector programs are more than
promising. You know, we use the term ``promising practices''
all the time and it gets to have no meaning any more, but these
are incredibly important on several levels: one, they give kids
training in jobs that we know exist; and two, it keeps well-
educated, trained young people in our communities.
And I think the tertiary point would be that in communities
of long-term poverty, long-term hopelessness, we need to make
sure that we are beefing up not only the individuals but the
businesses there. We need to make sure those businesses stay
invested in our communities so those communities can become
vibrant again.
Ms. Fudge. Thank you.
Thank you, Mr. Chairman. I yield back.
Chairman Miller. Thank you.
Mr. Thompson?
Mr. Thompson. Thank you, Mr. Chairman.
Thank the panel for bringing your expertise here today on
this very important topic. You know, currently the job market
is definitely challenging. We have seen continued unemployment,
double-digits nationally, and unfortunately getting ready to
pop over 20 percent in some of my counties in my district, and
that is despite, you know, over a $1 trillion stimulus plan
that was put into place.
The future prospects, I will say, I see as promising,
though, but it is not based on government. I actually see that
it is based on the demographics of my generation, the baby
boomers, which I am proud to be a part of that generation.
But as we are retiring and beginning to retire in mass, and
the real solution I see is employment and opportunity.
Opportunity for growth and employment is clearly by
strengthening the private sector, where the significant needs
for a qualified workforce will be critical, and is critical
today in certain areas. So I stop by the businesses and
industries--it is finding the qualified workforce.
And so with that, Secretary Oates, I wanted to see, has the
department began to factor in the attrition of the baby boomer
generation in strategic plans to address the, well, what we are
talking about today, the economic opportunities for young
Americans?
Ms. Oates. Congressman, we are trying to do several things
at one time. I actually was with the AARP people yesterday and
they are very concerned about four generations of people in the
workforce because they think all their workers who are not
forced to leave because of illness or some other thing are--or
some other issue--are staying in the workforce longer, and
their concern is, are they still going to be welcome when they
are 64? You know, I mean, is that still going to be something--
so it is a balancing act looking at respecting all ages of
workers.
But I can tell you specifically--and in your home state, I
believe, Pennsylvania--it is very interesting to me how states
have kind of evolved a sectoral strategy of their own. In
central Pennsylvania they have become like the food packaging
center of the world. You had a lot of snack food people there,
but they have worked now with community colleges in that area
to really get young people and older workers who need
retraining into that food packaging industry and food safety
industry.
Well, Pennsylvania was never a leader in that, so I think
some states have become really innovative in not only working
with a sector where they have some presence, but building the
workforce there. And while it doesn't respond to your question
exactly of what do we do when people retire and there are
needs, Pennsylvania shows that they are retraining and training
workers of all ages.
Now, I would agree with you that there are nationally some
sectors who are graying very quickly, and I would point to the
utilities sector, number one. I don't know how long people can
stay at some of the utility jobs as they age, so the utility
folks have been working with me since I was confirmed to really
address this problem and to look at some possible solutions.
For instance, you know, a national credential for certain
pieces in the utility industry, for certain jobs in that
industry, so that people had the mobility if they had to to
move to get a utility job in an area where they knew they had
the credentials.
And the second thing that I want to applaud them for--you
know, I had very little to do with this except now I am
promoting it--they have aligned utility job codes in the
civilian sector with military jobs, meaning that as our young
people and not-so-young people come back from military service
they can transition into those open utility jobs.
So I think that is a model that we could use in other
growing sectors. You know, we haven't even tried to do that yet
in health care, but obviously many people who are serving are
doing things that are directly related to the health care
field, so my hope is in the months to come we could work with
that industry to do the same thing and steal the good ideas
from the utility sector. I hope that answers you question.
Mr. Thompson. It helps. I think I certainly would encourage
the department to look at that, because I think there is
incredible opportunity there that is a matter of facilitating,
not necessarily takes a lot of financial resources.
I want to tie just a question back into the summer youth
program with the question, the summer youth program, are we
systematically providing exposure to strategic workforce
needs--and there is a lot of industries out there: health care,
manufacturing, education, much of it tied back again to the
baby boomer generation retirement--in terms of placement, or is
the program by design have more generic goals?
Ms. Oates. The current program has been dormant for 10
years. We haven't had a standalone summer program since 1999.
So the two sectors in which we tried to help local areas were
the two sectors that are growing nationwide: education and
health care. The rest of it was really built on local labor
market information.
And I would tell you quite honestly, Congressman, I think
the Department of Labor has work to do there. We need to
improve our labor market information; we need to improve the
ability of local areas to use that information; we need to work
with states as they better define job codes. Sometimes, you
know, the state job codes are so broad that a young person
can't figure out what job they mean.
So we have work to do there. I hope in a year I can tell
you that we have made significant progress there. But this is
really about working in partnership at the national level with
our friends and the Department of Education to send a clearer
example of what jobs exist, give kids better career exploration
using technology instead of using time, because time is so
scarce in a young person when they are in high school or when
they are doing a job search, and finally, making sure that
there is a clearer pathway through--more clearly defining the
credentials you need to qualify for those jobs and where you
can get those credentials in your local area.
Mr. Thompson. Okay.
Thank you, Mr. Chairman.
Ms. Chu. Assistant Secretary Oates, my area of Los Angeles
County received about $9 million in stimulus funds for the
summer youth employment program and about 5,500 youth
participated. Nearly half were the most needy of youth, both
that were on probation or in households that received food
stamps or cash aid or were in foster care.
L.A. County believes the program was a great success.
Certainly personal stories from these youth indicate that these
were successes.
Yet, as you mentioned, summer youth programs haven't been
offered by the Department of Labor for nearly a decade, since
year 2000. Is the department considering--is it considering
making a long-term commitment to summer employment programs and
what criteria would you be using to consider this a success? I
know that you are looking at the successes and failures of this
past program, but it appears to me that summer youth programs
are very important.
Ms. Oates. Well, we think they are very important. As you
are aware, Congresswoman, the current legislation, the
Workforce Investment Act, does not allow for a standalone
summer youth program. It instead dictates year-round youth
programs of which summer youth could be a part. But it has been
a very small part since WIA was reauthorized--was authorized in
1998.
We would be more than willing to work with you about
revitalizing a standalone summer youth program, and with the
Appropriations Committee on that. We think that this summer,
given a 3-month timeline to kind of get it up and running, we
think it was incredibly successful.
We think it could be better if there were a long-term
commitment to it and employers knew that this was not a one-
shot deal and that they had the opportunity not only to build
their infrastructure at their business to support temporary
summer employees, but also had the ability to move those older
youth who were looking for full-time employment into that.
That does take a concentrated effort by employers. It was
one that many were not ready for this year. But anecdotally, we
know that a number of older youth did move into permanent
employment this year and we will be looking at wage record data
to verify that as we move on this fall.
So we really do look forward to it. And Los Angeles, by the
way, did a wonderful job. We had lots of stories from there and
the community college system there was a huge partner in making
sure that those jobs were meaningful.
Ms. Chu. Thank you for that.
Another program that seems to be very successful is
ConnectEd. It is a program that is in my local area in the
Montebello and Pasadena school districts, and it prepares high
school students for both college and career using multiple
pathways to help students gain an advantage in high school,
college, and career by connecting academics with real-word
experience so that they can do internships in those areas and
get exposed to it. And those that are able to link their
student interests with job preparation can--well, actually they
do have excellent results with higher graduation rates,
increased college enrollments, and higher earning potential.
So it seems to be the kind of thing that we should be
doing. I am wondering what the Department of Labor is doing to
coordinate with the U.S. Department of Education on programs
like this.
Ms. Oates. Congresswoman, programs like ConnectEd are clear
examples of areas where we think Perkins Vocational Education,
the high school dollars, and the WIA youth dollars should be
working together. And while the assistant secretary for the
Office of Vocational Adult Education has not yet been
confirmed, we have been working already with Undersecretary
Martha Cantor to discuss ways that we could better align.
We are making significant--for instance, we both have
sectoral advisory groups, oftentimes in the same career
clusters. We are under discussion right now about combining
those so that employers who come in to offer advice to the
Department of Education and the Department of Labor don't have
to do it twice and don't have to say different things to
different departments.
We think that since 1998, when the Workforce Investment Act
was created, we kind of said to the local areas, ``You have to
work together,'' but at the federal level we never did. We
think we have to work together on eligibility, we think we have
to work together on better aligned program content, and we
think we definitely have to work together on better aligned
reporting. Local areas shouldn't be working double time to
report one way for Perkins Secondary and another way for WIA
youth, or Perkins Post-Secondary, or adult literacy.
So I think it is too early to be overly-optimistic, so let
me say I am cautiously optimistic that our conversations will
result in real working, and I hope this committee will push us
to do that. Right now the personalities at the two departments
don't need the push. We work together naturally under the
direction of Secretary Solis and Secretary Duncan; this has
become standard operating procedure.
But I think this committee should--and the Senate committee
should also--be watching very carefully. If we don't do
something, if we don't have clear and marketable results, all
these efforts meant nothing.
Ms. Chu. Thank you for that.
And finally, let me ask about this----
Chairman Miller. [Off mike.]
Ms. Chu. Oh, thank you.
Mr. Roe. Very quickly--and thank you, Mr. Chairman--you
know, there are obviously values in jobs, and I think the most
valuable thing I learned in a job is what I didn't want to do.
I didn't want to be a farmer or a dishwasher or a shoe
salesman; I learned a lot of things in jobs, so they do have
benefit.
But I think your point, Ms. Secretary, was the fact that if
you could mentor someone or get in--where the businesses
thought they would have a recurring workforce, that you could
actually--that makes a lot more sense than just a make-work job
in the summer. Any job has some value if you have a job. I
totally agree with that.
What we did, and I just--a question I want to pose to the
panel: Has the change in the minimum wage made any difference?
And let me--as a mayor of the city, Johnson City, Tennessee,
where was, we changed our minimum wage long before the federal
government did.
What I did was, I went down to a local fast food chain and
I figured during lunch hour you ought to be--if you worked an
hour you ought to be able to buy lunch, so 5 years ago we
changed it to $7 an hour because that is what it costs to buy
lunch. And it seemed fairly logical to me to do that.
And I just wonder, though, if in this tough economic time,
if the minimum wage--has that hurt young people and teenagers
getting jobs? And any of you can grab this.
Mr. Austin. I can respond to that. I would say no. One
thing that we have found that--at EPI, and this is based on
some research with the Federal Reserve, is that raising the
minimum wage has a stimulus effect. It reaches low-wage workers
who, in turn, spend those monies. So it is good for the economy
overall.
The other thing to keep in mind is that in 1968 the federal
minimum wage in 2009 dollars was $1.46 above what it is now. So
we are, you know, historically we are still not at a high
minimum wage, and in 1968 the unemployment rate was 3.4
percent, you know, so we basically had full employment, and the
teen unemployment rate was also quite low.
Some other research done by the Fiscal Policy Institute
found that states with minimum wages above the federal level
had faster small business and retail job growth. So the
research shows very positive effects from, you know, having the
minimum wage maintain its relationship with the overall average
wage.
Mr. Roe. Well, it didn't affect where we were. I mean, the
$7--I mean, we did that--this was at 5 years ago.
I guess the other question that I have--and certainly the
jobs that are being created in--I am a physician, and the jobs
have been created in health care and education, as you pointed
out. And certainly to direct these young people, because we
have a huge opportunity and infrastructure in health care that
we need right now. You have got half the nurses can retire in
10 years.
In the next 10 years we will have more doctors retiring and
dying, and the point you made is is that that is only the tip
of the iceberg with the jobs that are there. I mean, there are
a tremendous number of other jobs--good jobs with health
insurance, retirement, and on. So I think if we could hook
these young people in and mentor them, that would be a--to me
that is a very positive use of the money.
Ms. Oates. Thank you, Congressman, and I think it gives us
another example of how we have to work with the Department of
Education, because we can't even talk to young people about
aspiring to any career in health care if they haven't had a
strong laboratory science background in high school. You know,
they can't take science out of a book; they have to be able to
know how to use instrumentation and how to react with that.
So that is a clear example. We are happy to train them. We
are happy to help, but we can't do it alone. So we are doing it
in partnership with the Department of Education so not only the
next generation will be ready, but also some of our folks can
use some of those facilities to train, because as you know, the
community colleges, even in your home state of Tennessee, are
packed. And if we can get some of these training programs going
on in the wonderful high school laboratories in the evenings
and things like that, we are able to accelerate these programs
to the degree we need the workers.
Mr. Roe. We keep making health care more complicated, we
are going to need more coders, too. I can tell you that.
Ms. Oates. And the--I.T. workers.
Ms. Stoneman. And sir, 15 local YouthBuild programs have
actually expanded the career track from construction to health
care just for the reasons that you say. They use private funds
to innovate in that way. So as the YouthBuild funding expands,
the field is ready to do a parallel track into health care and
will thereby attract even more young women--focused on young
men.
Mr. Roe. Thank you, Mr. Chairman.
Chairman Miller. Thank you.
Mr. Scott is recognized for 3 minutes.
Mr. Scott. Ms. Oates, you indicated that there was--we talk
about jobs and training. Is there a mismatch or a scarcity of
jobs? I mean, are the jobs there that people aren't qualified
for, or are there just few jobs and training may move you up
the list a little bit? Are there not just too few jobs out
there?
Ms. Oates. Congressman, I think there is both. I think that
in any local area there are jobs available, so what you
described as the mismatch exists almost everywhere. And the
point of that is, we need to get better labor market
information to young people so that they can qualify for those
jobs.
But clearly in this recession there are too few jobs, and
our training under our formula programs as well as our
competitive programs have been urging people to go for longer-
term training so that people get the qualification, the
credential, the degree, so that when this economy rebounds and
instead of looking and tracking job losses every month we are
back to tracing job gains, those people will be ready and able
to take those jobs.
There is clearly a need to align the job training with the
modeling that we are seeing about openings, whether in health
care or education or the utility industry or other emerging
green industries. So there is a little bit of a gamble there,
but we are hoping that the training will be sufficient that
people will be flexible enough to not just be qualified for a
narrow job but for a sectoral job.
Mr. Scott. The Recovery Act, you said you were able to
create 280,000 jobs. Did you spend all the money that was
appropriated?
Ms. Oates. The money has been appropriated to local areas,
and on October 10th I will know exactly how much they spent.
But my guess would be that every local area spent about 70
percent, at least, of their 2-year money----
Mr. Scott. If you had more money could you have created
more jobs?
Ms. Oates. Yes, sir.
Mr. Scott. Is there any barrier to--I mean, if we have got
all these kids looking for jobs in recreation, education,
winterization--if we had more money could we have created more
jobs?
Ms. Oates. I believe we could have created more jobs,
particularly, and more work experiences in the health care
field and in the education field. I hear routinely from
community colleges that they loved having the young summer
employees there, they loved the fact that they were so willing
to learn, they loved the fact that they were able to then
recruit them into classes in the fall, and many of them said
they could have handled more.
Mr. Scott. And I would just point out, in terms of the
value of a job, there is a group in Los Angeles that has a
slogan, a gang prevention slogan, that ``nothing stops a bullet
like a job,'' so----
Ms. Oates. Let us get t-shirts on that one. That is----
Mr. Scott. They have t-shirts.
Chairman Miller. Thank you.
And thank you very much. I was originally going to have us
come back, but I think it is going to take too much of your
time. I appreciate your testimony and your expertise here with
us.
You heard me mention that we are still trying to make sure
that we have WIA right for this reauthorization, because I
think we have, you know, with the administration we have a lot
of potential to do some things that we haven't been doing, and
I would just like to make sure that we have that--that the law
allows for some of that opportunity, some of that flexibility,
and some of that trying to do these longer-term connections,
certainly with respect to the summer programs that you have
discussed here today.
So thank you very much, and with that the members will have
14 days to submit additional material and questions to the
hearing record. And if there is no objection we will adjourn,
and I will see if I can beat 200 of my members to the floor.
Thank you.
[Questions for the record and their responses follow:]
Questions Submitted to Assistant Secretary Oates
Dear Assistant Secretary Oates: Thank you for testifying at the
Thursday, October 1, 2009, Committee on Education and Labor hearing on
``Ensuring Economic Opportunities for Young Americans.''
One of the Republican Committee members had additional questions
for which she would like written responses from you for the hearing
record.
Congresswoman Cathy McMorris Rodgers (R-WA) asks the following
questions:
(1) As you know, disabled workers have been particularly impacted
by the downturn in the nation's economy. In fact, the current
unemployment rate among members of the disability community (ages 16
and up) reached 16.9 percent in August--most of whom are minimum wage
workers. What actions has the Department taken to ensure that funds
provided to State and local organizations under the American Recovery
and Reinvestment Act (ARRA), including funding allocated to summer
youth initiatives, are used to support employment opportunities for
disabled youth and young adults?
(2) Next year, the Committee is expected to consider the
reauthorization of the Workforce Investment Act of 1998, which
authorizes the nation's job training programs for unemployed and
displaced adults and youth. Does the Department intend to send a
legislative proposal to Congress on the reauthorization of WIA? What
changes could be included in WIA that would assist disabled individuals
better prepare for employment?
(3) I have been made aware that the Department, through the
Employment and Training Administration (ETA) and the Office of
Disability Employment Policy (ODEP), is currently in the process of
conducting a listening session for the disability community to weigh in
on their recommendations for the reauthorization of WIA. Can you
provide my office with more information on the Department's initiative
(i.e. the meetings that have taken place to date, any upcoming
meetings, a summary of the recommendations, etc)?
Please send your written response to the Committee on Education and
Labor staff by COB on Thursday, October 22, 2009--the date on which the
hearing record will close. If you have any questions, please contact
the Committee. Once again, we greatly appreciated your testimony at
this hearing.
Sincerely,
George Miller, Chairman.
______
Responses to Questions Submitted
Representative Cathy McMorris Rodgers
1. As you know, disabled workers have been particularly impacted by
the downturn in the nation's economy. In fact, the current unemployment
rate among members of the disability community (ages 16 and up) reached
16.9 percent in August--most of whom are minimum wage workers. What
actions has the Department taken to ensure that funds provided to State
and local organizations under the American Recovery and Reinvestment
Act (Recovery Act) including funding allocated to summer youth
initiatives, are used to support employment opportunities for disabled
youth and young adults?
The Department recognizes that the recession has increased
challenges for individuals with barriers to employment, including youth
with disabilities, and that part of the intent of the Recovery Act is
to help address these challenges. The Department also acknowledges that
much more still needs to be done to increase employment opportunities
for youth with disabilities. To help ensure states and local
organizations are using Recovery Act funds to support employment
opportunities for youth with disabilities, the Employment and Training
Administration (ETA) has utilized a combination of formal guidance,
workforce system assessments, and technical assistance, which are
discussed in further detail below.
On March 18, 2009, ETA issued Training and Employment Guidance
Letter (TEGL) 14-08 to provide guidance to states and local areas on
the implementation of the Recovery Act. The TEGL encourages state and
local areas receiving Recovery Act funds to focus Workforce Investment
Act (WIA) Youth resources on the neediest youth populations eligible
for services, including youth with disabilities.
The TEGL also required states to modify their WIA/Wagner-Peyser Act
State Plans to reflect new strategies and activities related to
Recovery Act implementation and the downturn in the economy. As part of
this modification, states were asked to describe how they will ensure
that the full range of employment and training services delivered
through the One-Stop system are accessible to and meet the needs of
individuals with multiple barriers to employment, including individuals
with disabilities. States were further required to specifically
indicate how they would use their Wagner-Peyser resources to support
individuals with disabilities. The State Plans explain how states
intend to use Recovery Act funds to improve services to individuals
with disabilities through both preexisting programs and new projects
that target training and supportive services to adults and youth with
disabilities. ETA uses the State Plans to monitor progress and offer
technical assistance in specific initiatives, such as efforts to
improve services to individuals with disabilities.
In addition to TEGL 14-08, ETA engaged in a nationwide assessment
and technical assistance consultation process to identify technical
assistance needs related to the implementation of Recovery Act funds.
The assessment tool included questions regarding accessibility and
availability of assistive technology for people with disabilities to
help ensure states and local areas were ready to serve individuals with
disabilities. ETA's Regional Offices have been actively engaged in this
initiative and provide technical assistance to states and locals where
needs are identified.
As of August 31, 2009, over 43,000, or 13.4%, of participants
served with Recovery Act funds through the WIA Youth program were youth
with disabilities. These youth participated in summer work experiences
and received supportive, follow up, and leadership development
services. For example:
In Bismarck, North Dakota, the Job Service North Dakota
program targeted youth with disabilities and provided employment
opportunities for over 70 youth. Participants were placed in a variety
of work experiences, participated in a career exploration workshop, and
received individualized assistance in transitioning to career and
education pathways at the end of the summer. Youth with severe
disabilities received help in developing stable support systems.
In Southwestern Connecticut, The WorkPlace, Inc.,
(Southwestern Connecticut's Regional Workforce Board) matched 170 youth
with disabilities with summer employment experiences. At the beginning
of the program, participants completed a full week of ``work
readiness'' workshops to learn what is expected in professional work
environments. For some youth, this program was their first meaningful
and paid work experience.
In Greenwood, Colorado, as part of the Arapahoe/Douglas
Works Program, 11 youth with disabilities worked in a variety of jobs,
including assisting with event set-up and break-down, gardening,
working on grounds and general maintenance, where they received on-the-
job training and developed skills that will be transferable to other
employment opportunities in the future.
2. Next year, the Committee is expected to consider the
reauthorization of the Workforce Investment Act of 1998, which
authorizes the nation's job training programs for unemployed and
displaced adults and youth. Does the Department intend to send a
legislative proposal to Congress on the reauthorization of WIA? What
changes could be included in WIA that would assist disabled individuals
better prepare for employment?
ETA believes that the reauthorization of WIA provides an important
opportunity to introduce innovative initiatives that build on the
current strengths of the public workforce system, and address areas of
the system that should be bolstered. ETA has worked to articulate ideas
to help frame WIA reauthorization discussions, in partnership with the
Department of Education, and reauthorization should consider strategies
to support a workforce system that is fully inclusive, accessible and
available to all workers, including persons with disabilities. ETA has
also consulted with a broad array of stakeholders through a series of
WIA reauthorization listening sessions that will help to further inform
reauthorization discussions. In particular, ETA and the Office of
Disability Employment Policy (ODEP) co-hosted a national listening
session via webinar with the disability community. ETA will work
closely with ODEP in preparing for and supporting WIA reauthorization,
and is looking forward to working with the Congress on the
reauthorization of WIA.
3. I have been made aware that the Department, through the
Employment and Training Administration (ETA) and the Office of
Disability Employment Policy (ODEP) is currently in the process of
conducting a listening session for the disability community to weigh in
on their recommendations of WIA. Can you provide my office with more
information on the Department's initiative (i.e., the meetings that
have taken place to date, any upcoming meetings, a summary of the
recommendations etc.)?
As part of a series of listening sessions being held by ETA on WIA
reauthorization, a listening session for disability stakeholders was
held on October 1, 2009. The event was hosted jointly by Assistant
Secretary for Employment and Training Jane Oates and Assistant
Secretary for Disability Employment Kathy Martinez. Over 400
participants attended the listening session in person or virtually via
webinar. Participants included representatives from the workforce
system, regional councils of government, economic development agencies,
national disability organizations, disability advocates and users of
various disability services, foundations, local education agencies,
universities, vocational rehabilitation agencies, employers, veterans
agencies and organizations, criminal justice organizations, and
disability and business technical assistance centers.
During the listening session, participants were asked to address
what is working well in WIA and should be continued; what is not
working well and should be discontinued or altered; and what
opportunities reauthorization presents for innovation and change. The
recorded webinar and a written transcript of the session are currently
available on ETA's online portal, Workforce3One. To access this
website, users must have an account on Workforce3One, which is free and
open to the public. New users can create an account online by visiting:
http://www.workforce3one.org/register.aspx. The transcript is also
available in hard copy, and the Department would be pleased to transmit
a copy to Representative Rodgers upon request. ETA is also reviewing
comments received after the session and will use them to help guide and
inform future WIA reauthorization discussions. ETA is working with ODEP
in this process.
______
[Whereupon, at 11:20 a.m., the committee was adjourned.]