A New Moment in the Economy - A New Moment for STARs

Labor markets should be two-way streets, in which both employers and workers can achieve their goals—yet tens of millions of workers' talents, contributions, and priorities have been taken for granted by too many for too long.

Can we rebalance our labor markets in a post-COVID recovery? We’re finding out now.

In the latest “Opportunity Wrap,” Opportunity@Work’s Cheston McGuire notes that May’s job report shows an uneven recovery for STARs compared to workers with four-year degrees; the U.S. Chamber of Commerce calls on businesses to remove barriers from open roles to address perceived  “labor shortages”; and new research offers insights on job progressions for STARs.

• The U.S. economy added 559,000 jobs and the unemployment rate dropped slightly from 6.1% to 5.8% last month, but the Bureau of Labor Statistics found that STARs' and Black Americans' unemployment rate continues to lag far behind that of white Americans and four-year degree holders. buff.ly/2TIO5fF
• This week, the U.S. Chamber of Commerce announced a new initiative, “America Works,” that will prioritize removing barriers workers face and expanding employer-led workforce and training programs to connect to “undiscovered talent.” buff.ly/3yWVrfH
• A new report from the Rework America Alliance analyzes 77 gateway jobs by which 106 million workers without 4-year degrees can advance through work experience. Produced by McKinsey & Company, the Federal Reserve Bank of Atlanta, the National Urban League, and the Markle Foundation, - the report’s findings are consistent with Opportunity@Work’s Navigate with the STARs insights. buff.ly/3ceWAW4

In a conversation with New York Times Senior Economics Correspondent Neil Irwin when I left the Obama White House to start Opportunity@Work, I said the U.S. labor market needed to shift as companies came to realize that screening out talented people based on past pedigree and poaching talent instead of *investing* to build skills was a zero-sum game that nobody wins.

Fast forward to 2021: that zero-sum game is up, and Neil’s reporting is on point in “Workers Are Gaining Leverage Over Employers Right Before Our Eyes." I was happy to share my thoughts.  When workers win, employers don’t need to lose, but they do need to change. Change who and how they hire, train, reward: investing in STARs, workers skilled through alternative routes.

All the best,

Byron

P.S. Next week on Tuesday, June 15, I'll be kicking off JFF Horizons with JFF CEO Maria Flynn to discuss ways to address the disproportionate impact the pandemic-driven economic and health care crises have had on BIPOC workers. Register now at https://www.jff.org/horizons.