Report will help Detroit Workforce Development Board and other
private and public efforts to remove barriers and expand opportunities
for local job seekers and employers
DETROIT–(BUSINESS WIRE)–JPMorgan Chase & Co. and the Corporation for a Skilled Workforce (CSW)
today released the second
report of a two-part series that examines the state of Detroit’s
workforce development system. The report identifies specific
opportunities for the city’s workforce infrastructure, funding,
organizations and programs to work together to help job seekers and
Developed as part of JPMorgan Chase’s $100 million commitment to the
city’s economic recovery, the report is intended to help focus and align
different workforce development efforts and investments, including those
made by the Mayor’s Detroit Workforce Development Board. The first
Untapped Talent,” mapped out major challenges facing the city’s
workforce, including a shortage of jobs suitable for Detroit workers’
skill levels and the need for training programs to help workers attain
the skills sought for available jobs.
“JPMorgan Chase and CSW are great partners in our efforts to help
Detroiters prepare for and obtain good paying jobs,” said Detroit
Mayor Mike Duggan. “Their reports continue to help us identify our
challenges and opportunities as we develop our workforce to be prepared
not just for jobs that exist today, but also for the opportunities we
know will exist tomorrow.”
“Detroit’s job training programs are critical to the city’s continued
growth, and investments in skill development must keep pace with the
city’s changing economy,” said Chauncy Lennon, Head of Workforce
Initiatives, JPMorgan Chase. “Our analysis shows that many of the
city’s biggest workforce problems are solvable, but only if we work
Removing Key Barriers Offers Greatest Hope
The report noted several specific obstacles that prevent Detroit from
making greater progress on jobs, including:
Institutional barriers make it especially hard for Detroit’s
lowest-skilled job seekers to find jobs: Too many of the programs
that aspiring workers need function in siloes and are unnecessarily
hard to access. For example, only a few workforce organizations are
offering foundational skills, such as literacy training, GED or high
school equivalency programs and English for other language speakers.
Those seeking post-secondary education, more often than not, may have
to travel to the Tri-County to obtain it. Meanwhile, only about half
of service providers offer targeted programming designed to address
the needs of special populations, such as ex-offenders. The good news
is that these are all problems that can be addressed, especially
through greater coordination between partners and across services.
Employer engagement is still low, but improving: Too many job
training programs lack information about actual workforce needs and
the career pathway opportunities that local employers have to offer.
Meanwhile, too many employers lack useful information about the local
labor market. These trends suggest greater employer engagement would
accelerate the pace of job growth and job placement.
Data, information and knowledge sharing are inconsistent: Like
many other cities across the U.S., Detroit lacks common ways to
collect or evaluate data and outcomes for the workforce development
system as a whole. There is also no clear line-of-sight between what
the system promotes, measures or rewards. Solving the data problem and
using that data to drive metrics and outcomes would help the city
leverage more of its current and future efforts and investments in
Detroit’s Sectors Present Mix of Opportunities
The report also identifies the associated training and skills needs for
major industries in Detroit, including retail/hospitality, health care,
manufacturing, and transportation, distribution and logistics,
construction and information technology.
Retail, Hospitality, Arts and Recreation: Jobs in these
industries require minimal workforce preparation, yet typically do not
pay a living wage. Even so, as of April 2015, there are more
unemployed Detroiters holding only a high school diploma (41,000) than
there are total job openings in this sector (38,000 openings). These
jobs are more plentiful in the suburbs. But the lack of transportation
options puts an additional burden on employees in these industries.
Healthcare: Job opening data suggests that healthcare training
programs for minimal and moderate preparation jobs, such as Certified
Nursing Assistants, may be over-producing graduates. At the same time,
healthcare employers are having a hard time finding people to fill
entry level and middle skills jobs. These trends speak to the need for
better coordination between those who are providing the training and
those who are hiring.
Manufacturing: Manufacturing has seen steady growth in both the
city of Detroit and the surrounding Tri-County area. But there are
only a few manufacturing-specific work readiness programs in Detroit.
Transportation, Distribution and Logistics: This sector makes
up 6 percent of all employment in the city, and grew by 12 percent
from 2009 to 2014, although recent growth has been slower. Forty-one
percent of jobs in the industry require only minimal preparation, yet
almost 60 percent of jobs pay moderate wages, making it a potentially
good pathway for lower-skilled residents of the city.
Construction: The construction industry represents only a small
percentage of Detroit’s overall economy and the job opening count has
decreased over the last few years. However, with large
infrastructure projects in Detroit’s near future, training in the
construction sector maps well to the hiring trends.
Information Technology: Software developers and other
information technology workers are in high demand in Detroit. But
there are no minimal-preparation level job openings. While training
programs are available, a high level of education and literacy is
required for success in these programs, making them out of reach for
many of those in need.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2.4 trillion and operations worldwide. The Firm is
a leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction processing,
and asset management. A component of the Dow Jones Industrial Average,
JPMorgan Chase & Co. serves millions of consumers in the United States
and many of the world’s most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands. The firm uses
its global resources, expertise, insights and scale to address some of
the most urgent challenges facing communities around the world including
the need for increased economic opportunity. Information about JPMorgan
Chase & Co. is available at www.jpmorganchase.com.
About Corporation for a Skilled Workforce
Corporation for a Skilled Workforce is a national nonprofit that
partners with government, business, and community leaders to connect
workers with good jobs, increase the competitiveness of companies, and
build sustainable communities. For more than 24 years, we have been an
effective catalyst for change. We identify opportunities for innovation
in work and learning and provoke transformative change in policy and
practice. We have worked with dozens of workforce investment boards,
state and local workforce agencies, community-based organizations,
foundations, federal agencies, and colleges to create lasting impact
through their collaborative action.