During times of relative prosperity, such as when the unemployment rate was at a recent historic low of 3.5 percent, it is easy for some to ignore the plight of those that are homeless, unemployed, or even underemployed and stuck in a dead end job. Dismissing these individuals by telling them to pull themselves up by their own bootstraps and get a job fails to acknowledge the dirty truth. Existing workforce development systems do not play in the favor of immigrants or the poor.
In Massachusetts, the MassHire Career Centers have helped countless individuals find better jobs, but like the Asian American Civic Association (AACA), MassHire has their hands tied by the Federal regulations that guide the job training voucher system. Training vouchers help individuals get needed training and education to improve their career pathways and life.
However, depending on federal-funding, the availability of vouchers can be limited, according to the “Catapult Papers”, published by The Boston Foundation SkillWorks, federal-funding for training vouchers has drastically declined over the recent decade in Massachusetts.
Even worse, the thresholds to qualify for a training voucher are very restrictive. For example, if you live in a 4-person household with a household income above $40,000, you exceed the income threshold and may not qualify for a training voucher. According to the MIT Living Wage Calculator, a household of this size needs approximately $70,000 to even survive in the Boston area. Basically, you are earning too much to get needed training to improve your life, and realistically, it would be a stretch for you to pay out of pocket for training or college while still supporting your family. Another way to say it – you are not poor enough to receive financial assistants to develop your job skills.
For the past fiscal year, FY20, AACA has pushed hard to launch next generation workforce development programs to help overcome this major obstacle. Next generation workforce development programs feature four key qualities – being market responsive, focusing on job quality, creating impact, and lifting untapped talent. Reaching these milestones hinges on synergizing from the start with employer partners to develop career pathways and funding sources that directly support the training of new talent. Next generation training requires a shift in corporate recruiting thought processes to view an individual as a long-term investment, not just a disposable cog.
With key employer partners including Casella Waste Systems, EL Harvey & Sons, and US Foods, AACA launched its first next generation workforce development program, Green Automotive Maintenance Skills (GAMS), in February 2020. GAMS students train for 20 weeks to become well-paid, ASE-certified diesel technicians and have the potential to reach a six-figure salary in about two years after placement. Considering some of AACA’s first GAMS recruits were homeless and almost all were unemployed, AACA is literally guiding individuals from nothing to self-sufficiency.
Many GAMS employer partners are directly funding seats in the program to give AACA funding flexibility. Employer-supported contract training allows nonprofits like AACA to train any individual, regardless of residency, income or even social obstacle. In return, the employer partners get better trained and pre-screened individuals for needed positions. As employers outside the partner network see this benefit, it can drive more employers to shift towards directly investing in the training of potential recruits.
In addition to forming these mutually beneficial relationships with employer partners, for FY21, AACA has already been awarded significant grant funds to expand its job training offerings in the Metro-North region. Due to the generosity of ABCD, Commonwealth Corporation, and the City of Somerville Job Creation and Retention Trust, AACA will have even more flexibility and funds to train individuals from Malden, Medford, Everett, Somerville, and beyond.
Many members from these particular communities already were coming to AACA for training and other support services but were facing challenges obtaining vouchers or other funding due to their residential location and other obstacles. In recent history, for example, AACA has counted Malden within its top three catchment areas, based on the number of clients. However, several of the funds supporting our workforce development training programs do not accept individuals residing outside of Boston proper.
With this expanded funding and the support of our forward-thinking employer partners, AACA is ready to continue expanding to Metro-North and into the next generation in the new fiscal year to help even more of the most at need among immigrant and low-income populations, as well as those that are just barely squeaking by. Hopefully, as more next generation workforce development programs launch throughout Massachusetts, those on the federal level will take note and make much needed changes to the voucher system. They need to, especially considering the current situation and recent all-time historic high in unemployment of 14.7 percent in April 2020. The time for next generation workforce development is now.
