Reform of Poverty and Unemployment in New York City
Introduction
New York City is known as the world’s financial capital but the rising cost of living has left many residents unable to afford to live in the city. The increased cost of rent has also helped push factories out of the city, taking multiple blue-collar jobs with them. As of 2014, the poverty rate in New York City was a shocking 20.7%[1], which includes the homeless, those who are unemployed and those who are working full-time, but still not making enough money to support themselves or their families. Even more shocking is that the Center for Economic Opportunity, an organization created by Mayor Bloomberg that fights poverty in the city, places the portion of New Yorkers at or near the poverty line at 45.2%, including over 648,000 full-time workers.[2] This is 45.2% of 8,550,405 people currently living in New York City.[3]
We would like to propose a number of avenues that the government can take to reduce the poverty in New York City. A major one is to expand vocational schooling programs for the poor so they can obtain skills for blue-collar jobs that are in high demand. Another is to give incentives to large companies to bring jobs to the poorer communities where job opportunities are scant. It is our view that such steps will help lift more New Yorkers out of poverty, and give all residents the chance to succeed economically.
Vocational schooling
Studies have found that people with a high school diploma, or a high school equivalency (HSE) diploma, on average, increase lifetime wages by approximately $331,000 compared to those without a high school diploma. Students who continue on to earn an associate’s degree earn an additional $423,000 on average. [4]
According to city data, poverty hits hardest on those who are immigrants, unemployed, or uneducated. In fact, poverty percentages jump from 18.7 to 29.7 for those who are non-citizens. Similarly, poverty percentages decrease with the more schooling a person receives.[5] These people are normally unskilled minorities who are not able to find decent work. Our plan to end, or at least greatly diminish poverty focuses on two general steps: helping people get the money they need in the present, and a future goal of helping them transcend their current socioeconomic state. Rather than relying solely on the creation of more low-skilled jobs or raising the minimum wage, the city should also look into helping people help themselves. The best way to do that is through education. However, a plan focused on providing financial aid for two- and four-year colleges is insufficient. Many students graduate college and still have a difficult time finding a decent job due to poor job networks, and the poor cannot afford to waste this time searching for a job.[6] In addition, there is an increasing demand for employees to obtain master’s degrees before entering the workforce, making it difficult for students with only a bachelor’s or associate’s degree to find work. It’s even harder for the poor living in inner city neighborhoods to find white-collar work because they don’t have as many business connections as middle-class young adults have. [7]
Most vocational programs are only around $33,000 for the entire degree, and give students marketable skills that are soon going to be in high demand in New York City. According to Forbes, the demand for skilled trade jobs – electronics technicians, plumbers, welders, machinists — is rising and that there will not be enough workers soon. Fifty-three percent of skilled trade workers are over 45 years of age, 9 percentage points more than the regular workforce. [8] This means that there will be a large number of job openings once the previous generation retires.
In today’s education system there is a focus on white-collar professions. While this is definitely necessary in New York City, the home of Wall Street, such jobs are not suitable for everyone.
Many students in such an economic position choose to go to community colleges and earn associate’s degrees. Most associate’s programs focus on preparing students for 4-year colleges, and very few offer trade school programs. By offering vocational schooling in addition to other tracks at 2-year colleges, young adults as well as returning adults can become skilled in professions that can eventually make them a lot of money.
Regularly, low skilled jobs are the first to go with the creation and implementation of new technology and the raise of the minimum wage.[9] By raising minimum wage, employers are less likely to hire more employees, and have more of a chance of finding alternatives in technology or by other means. By creating more vocational schools in high schools and community colleges, students will be able to satisfy the demand for skilled trade jobs. This offers teenagers living in poverty a chance at a better life. Also, implementing vocational programs in community colleges will also provide education for older adults living in poverty, and a chance to better their circumstances.
Currently, students’ interest in vocational schools is on the rise nationally. They see it as a good substitute for a traditional education; graduates are able to begin work right away, and some trade jobs are very lucrative.[10] In fact, the average electrician makes somewhere between $51,000- $65,000 a year, considerably higher than the average high school teacher, who makes roughly $40,000 a year.[11] This is also a definite salary increase from the national
poverty level income of $12,060, and such an increase can move families into the middle class.[12] Another major benefit is that those with skills such as plumbing, or carpentry have the ability to work in companies or open up their own private business. This is a vast differentiation from most minimum wage jobs, where wage increases are scarce, and job promotions are almost nonexistent. Some fields that require a college degree, such as teachers or human resources managers, do not have the opportunity to create a small businesses.
Not only should we give young adults the opportunity to attend vocational schooling, but also middle-aged people who have been juggling minimum wage jobs all their lives. As of 2014, 22.2 percent of the population in New York City consisted of poor families with children under 18.[13] These parents are already in their mid 30 or 40s and struggling to support their family. If we can provide these low-skilled workers with part-time vocational schooling for a maximum of two years, they will be able to enter the workforce relatively quickly, and with the skills to obtain a higher paying job and support their family.
Creating more vocational programs throughout the city, especially in areas of concentrated poverty, and allocating government funds so students in poverty can attend is a promising, cost-effective, long-term solution for the city to deal with its poverty problem. In addition, we propose that vocational schools should be paired up with large companies, so that the people who go through the program can enter the workforce immediately.
Work- study program
Countries such as Germany and Japan created a secondary school system where work skills are taught, and teachers have a direct impact on a student’s chance at acquiring a job after graduating. This setup gave teenage students incentives to continue to study, and led to a 98% graduation rate in Japan’s lowest schools.[14] A partnership with companies to offer internships for students meeting specific requirements within the city’s poor neighborhoods may provide incentive for more students to finish school and strive for better jobs in adulthood.[15]
In Chicago, the National Youth Apprenticeship program took students from four low-performing Chicago high schools to participate in an internship-schooling program. Chosen by lottery, the students had separate classes from the rest of the schools, where work skills were integrated into their normal subjects. The promise was that if the students maintained high averages, they would have a par- time job waiting for them at four major companies, with the ability to eventually move into a full-time position. The program produced positive results, and students felt they had a purpose to continue their education. Grades and graduation rates within the program increased.[16]
We propose that New York City promote programs such as these, giving students a reason to continue their schooling, rather than dropping out of school and finding minimum wage jobs. With a work-focused education, students will be better prepared for future employment, where they can bring in a sustainable income for their families. One way in which the government can help support such programs is by creating an organization where youth obtain private internships during high school and get paid through the city. The companies involved would agree to hire the interns part-time upon their completion of high school, on the conditions that they meet certain requirements. The part-time jobs would then be available to them while they attend college so that they can then earn a degree to work in the job of their choice.
This program is similar to the New York City Department of Youth Services’ Summer Youth Employment Program, with one major difference. Instead of hiring teens for the summer, this program will only be available for students, and will focus on internships during the school year. These will replace other minimum-wage jobs that students often take to supplement their family’s income, and will serve as a chance for teenagers to experience job opportunities that they never knew existed. The program will also focus on eventually providing jobs for teens once they leave high school, another major departure from the traditional summer youth job.
SECTION TWO: Strategically creating and reallocating existing jobs
Bringing Jobs to Communities
One major difficulty for those living in poor neighborhoods in New York City is networking for jobs. In poor neighborhoods, there are many people looking for work, and the job pool is too large for managers to sift through applications. Instead, employers often rely on trustworthy employees to recommend friends to fill the available positions.[17] Because of the demand for entry-level jobs in these areas, employers are also able to pay workers minimum wage, with minimal salary raises over time.
Another problem is that there are not enough of these minimum wage jobs to satisfy the needs of the community, leading businesses to pay the bare minimum legally necessary, with little if any increase over time. Also, when people venture to areas outside of their neighborhoods to look for jobs, their previous experiences are often overlooked.[18] Although it is desirable to eventually lift families out of the minimum-wage salary bracket and into the middle class, changes do not happen overnight.
One major strategy is to bring more job opportunities to the inner city. While it would be difficult and controversial to move families to the suburbs where jobs are already open, it may be easier to bring jobs to the poorer neighborhoods.[19] By offering incentives such as tax breaks for private companies to open businesses with blue-collar skills needed in inner city neighborhoods, more people would be able to become self-reliant, as well as confident in their ability to work. If the government makes it easy for private businesses to open in specific neighborhoods and hire workers currently living in poverty, it may be possible to turn the neighborhood into a thriving community.
In addition, the government can work to create jobs for those living below a certain wage level. Jobs can include helping to clean and beautify the city. Work such as this will help participants gain valuable experience that they can use to apply for jobs in the future. Many workers may otherwise be unemployed, so participating in such a program is a way for participants to contribute to the city. It will also give employees a sense of purpose and pride to know that they are working citizens with a job that is helping the city.
Internal Mobility Virginia.gov
Another interesting plan is to promote internal upward mobility within workplaces. While some fast food companies pride themselves on their systems of internal mobility, many businesses are lax because of the extra education needed for higher positions.[20] If employers became willing to train employees for better paying jobs, it would help families support themselves rather than living at or near poverty lines. Most companies are not likely to spend time training employees without government incentives. Therefore, the government should give companies tax breaks reliant upon the training and movement of lower-level employees.
Why We Care
Poverty doesn’t just end with the fact that there is a little money in the bank, but logically it negatively impacts every aspect of life as a result, which is why it is crucial that we implement a plan that will help people bring in more income.
In her book “Hand to Mouth: Living in Bootstrap America,” Linda Tirado gave a personal account of life below the poverty line. Tirado is married and has two daughters, and at best their joint annual income was $25,000 before taxes.[21] After paying rent and utility bills, they weren’t left with much to afford basic necessities such as toilet paper and dinner. She described how she and many of her friends had to hold multiple jobs at once (all paid minimum wage), which didn’t pay off in the long run because the employers became angered for a number of reasons, causing them to lose one or more of their jobs. For example: when they couldn’t work extra hours during peak times because they had a job somewhere else.[22] At the end of the day, it doesn’t matter how many jobs someone holds because if they aren’t bringing in enough money then that trickles down and negatively impacts every aspect of their life.
Tirado writes that one major criticism directed at the poor is that if only they took care of their health and presented themselves a little more professionally, then maybe they can obtain a better paying job. However, she points out, it takes money to maintain health and appearance. Nourishing and fresh food that will contribute to a healthy appearance is expensive and if they can only afford the food that is on sale because it is near its expiration, then that is better than starving. Fashionable and refined clothing requires extra money. Clothing is a luxury and is not even at the bottom of the list of the poor when they are struggling to put food on the table for their family. It is also very difficult to obtain decent health care, even with programs such as Medicaid. Those using Medicaid must spend time finding a doctor that will accept them when there is a serious issue. [23]
Not only does this book give an account of the rut that poor people find themselves in, but it also lends insight into how poverty, and specifically minimum wage jobs, shapes people’s mental health, attitudes and personality as well as outlook on life. Tirado wrote, “The attitude I carry as a poor person is my armor, and after so many years of fighting and clawing and protecting myself and my family from impending disaster, that armor has become a permanent part of me.”[24] The combination of their insufficient salary and the hardships that it brings along, horrible treatment at work, and being looked down upon by society can lead to a pessimistic outlook, opening the poor to further criticism over attitude.
Conclusion
Many people find themselves in a cycle of poverty without the opportunity to advance their education or find a better job. They spend their time working long hours at a low-skills job, often unable to meet their basic needs, and must supplement their income with government help. This is especially true when they must pay for expenses such as medical care, which can become a disaster for families in need.
By putting our proposals into action we will give the poor the means to become independent. Through vocational schooling the poor will obtain skills for jobs that are in high demand. Bringing large companies into poorer communities will help people acquire jobs without the obstacles that job-hunting presents. After all, the best help to give someone is not money, but the means for them to help themselves.
[1] 1. “CEO – Poverty Data & Research – Poverty Data Tool.” CEO – Poverty Data &
Research – Poverty Data Tool.
http://www.nyc.gov/html/ceo/html/poverty/lookup.shtml.
[2] New York City Center for Economic Opportunity Fiscal Year 2015 Performance Data,” NYC Center for Economic Opportunity. http://www.nyc.gov/html/ceo/downloads/pdf/CEO-FY15-Performance-Data.pdf, accessed May 1, 2017
[3] “New York City Population.” New York City Department of City Planning, http://www1.nyc.gov/site/planning/data-maps/nyc-population/population-facts.page, accessed May 1, 2017
[4] ibid.
[5] ibid.
[6] Katherine S. Newman, No Shame in my Game, The Working Poor of the Inner City (New York: Vintage Books, 1999), page 284
[7] ibid. page 284
[8] Joshua Wright, “America’s Skilled Trades Dilemma: Shortages Loom As Most-In-Demand Group Of Workers Ages,” Forbes.com, May 23, 2014. Accessed February 27, 2017. https://www.forbes.com/sites/emsi/2013/03/07/americas-skilled-trades-dilemma-shortages-loom-as-most-in-demand-group-of-workers-ages/#98042b66397c.
[9] [i] Four Reasons Not to Raise the Minimum Wage . PDF. The Cato Institute. May 1, 2017
[10] Mark Phillips, “Why Should We Care About Vocational Education?” Edutopia, May 29, 2012. Accessed February 27, 2017. https://www.edutopia.org/blog/vocational-education-benefits-mark-phillips.
[11] “Electrician III Salaries.” Salary.com. Accessed February 27, 2017. http://www1.salary.com/Electrician-III-Salaries.html.
[12] “Federal Poverty Level (FPL) – HealthCare.gov Glossary.” HealthCare.gov. Accessed March 14, 2017. https://www.healthcare.gov/glossary/federal-poverty-level-FPL/.
[13] “Basic Fact about Low income Children.” National Center for Children in Poverty. http://www.nccp.org/publications/pdf/text_1100.pdf. January 2015. accessed May 1, 2017
[14] Newman, No Shame in my Game, pages 284-289
[15] ibid. pages 284-289
[16] ibid. pages 284-289
[17] Newman, No Shame in my Game, page 78
[18] ibid. pages 76-77
[19] ibid. pages 272-273
[20] ibid. page 289
[21] Linda Tirado, Hand to Mouth: Living in Bootstrap America (Berkley: New York, 2015), page 9
[22] ibid. page 6
[23] ibid. pages 45-46
[24] ibid.page 74
