Although Rhode Island’s overall economy continues to slowly but steadily recover from the Great Recession, workers of color—particularly Rhode Island’s Latino community— continue to bear the brunt of a vulnerable economy. Some of these economic hardships reflect the lingering effects of the Great Recession – a recession that has left the state with over ten thousand fewer jobs today than at the onset of the recession, relative to the state’s current population. Other effects reflect long-standing systemic barriers facing the Ocean State’s minority populations that have impeded their educational attainment, and have consistently resulted in higher levels of unemployment and lower wages.
This report, “The State of Working Rhode Island: Workers of Color”, highlights the many challenges facing Rhode Island workers, showing the many areas where workers of color fare less well than others. The accompanying Policy Recommendations document shows that there are policy solutions within our grasp that can shift economic trends that have been holding Rhode Island families back.
In response to the federal Workforce Investment and Opportunity Act (WIOA), most states are now in the latter stages of developing federally required plans and policies for operating their systems of workforce development under WIOA. This process creates an unprecedented opportunity to build into each state’s plan concrete ideas for using state and local workforce policy and practice to boost job quality. By developing new policies that help local boards connect workers to the best possible jobs, and supporting employers – individually and in partnerships – with efforts to improve jobs, WIOA implementation can create a “high road in workforce development.” It can make workforce systems an enduring force for better job quality.
In this brief, we propose three concrete disbursement policies that allow for more effective and focused use of WIOA resources, by ensuring that employer partners are the best possible fit for job seekers in the system. Many states or local areas already have some language supporting job quality – for example, seeking to target scarce training dollars to occupations that meet self-sufficiency wage standards (i.e., pay enough to support a family without public assistance). As this indicates, the goal of promoting the highest possible job quality for workers helped by the system is uncontroversial. The next logical step is to make this commitment more concrete and direct investments in ways that help secure the job quality outcomes on which there is strong consensus.
Vermont’s economy began to grow again after the recession, but has since cooled off. Even before the recession, real economic growth was slow. And figures released in December 2015 show
that Vermont’s gross state product—the value of goods and services produced in the state—was essentially the same in 2014 as it was in 2011, after adjusting for inflation.
Vermont’s labor market also faced challenges. Although employers finally replaced all of the jobs lost in the Great Recession, total employment in 2014—which counts farm and nonfarm workers as well as the self-employed—lingered below the 2006 peak and fell for the third year in a row. And while Vermont had the 5th lowest unemployment rate in the country, many Vermonters were underemployed or had given up looking for work.
Among the states, Vermont had the 14th highest percentage of working-age population in the labor force—either working or actively looking for a job. But there were fewer younger people in the labor force, due primarily to a smaller number of 35-to-54-year-olds in the population than prior to the recession. The labor force was more balanced by gender than in other states. However, unemployment for men remained higher than for women.
This report is the eighth in an annual series that examines the state of West Virginia’s economy. While previous editions examined data on employment, income, productivity, job quality and other aspects of the economy as they impact working people, this issue is an in-depth look at one specific economic measure – West Virginia’s labor force participation rate. Read PDF.
The labor force participation rate (LFPR) is the measure of people 16 years or older either working or seeking work, expressed as a share of the adult population. Labor force participation is a complementary measure of labor market conditions to the conventional unemployment rate. The LFPR captures the share of the total adult population that is available to work, whereas the unemployment rate captures the share of the labor force that is unable to obtain employment at a given point in time. Labor force participation varies across demographic characteristics such as age, gender, and race, and can be affected by numerous economic characteristics and public policies. A healthy LFPR is a key driver of a society’s economic output per capita and overall standard of living in the long run.