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PRESS RELEASE Contact: Carmon Cunningham (617) 728-4446 ccunningham@jff.org    Matt Maurer (202) 955-9450   LOW-WAGE WORKERS SEE EDUCATION AS KEY TO ADVANCEMENT, BETTER PAY Workers Report Direct Benefits from Private and Public Opportunities for Job Placement and Career Training, But Lack Awareness of Available Programs Boston, MA, September 5, 2003   Most low-wage workers want to upgrade their skills and move up to better jobs, but they lack access to information on programs that can help them. A national survey of low-wage workers, released today by Boston-based nonprofit Jobs for the Future, shows that 70 percent of workers who earn less than 200 percent of the federal poverty level want access to education and training programs that can help them advance to well-paid positions. Nearly one out of four low-wage workers (24 percent) have paid for their instruction out of their own pocket despite competing financial commitments and family obligations, a strong indication of the importance they place on advancing their education. The low-wage worker survey reveals that while 77 percent of low-wage workers identify getting ahead in their jobs and careers as a personal priority, less than a third are very satisfied with their opportunities for workplace training (32 percent), promotion (30 percent), or increased pay (19 percent). Two-thirds (67 percent) say that getting training in a specific skill would help them advance, while 62 percent say that obtaining a GED or an Associates or Bachelor’s degree would help them secure a better job and better pay. The study, a national survey of 1,002 adults with household incomes near the poverty line, was commissioned by Jobs for the Future as part of the Workforce Innovation Networks (WINs) initiative with funding from the U.S. Department of Labor. Its findings show that most low-wage workers: Want to upgrade their skills and move up to better jobs. Among those interviewed, 45 percent have participated in education or training programs, and nearly half (49 percent) have realized a direct benefit of their participation in the form of a new job, pay raise, or promotion. Most feel that getting more training or a degree would enhance their prospects for getting ahead in their careers. Who have used government-sponsored or other workforce development programs for job placement, education, and career training have found them useful. However, the survey results also suggest a gap in workers’ awareness of the public system and their use of its services, a gap that better outreach and marketing might narrow. While low-income Americans want access to affordable education and job training, more than half of low-wage workers (55 percent) say they know little about government-sponsored or other workforce development programs or how to access them. Are relatively satisfied with their current job situations. Also, most feel their jobs are secure. They are less satisfied with their earnings and opportunities for growth. They see a lack of job opportunities where they live and their own lack of skills as significant barriers to advancement. Say they face multiple barriers to participating in job training and education programs. Their concerns include the expense, schedule conflicts, and lack of knowledge about how to find out about and enroll in education or training programs. Think help is either unaffordable or beyond their reach. Nearly two-thirds (65 percent) of these workers worry that services are unaffordable – even though many programs are offered free of charge. A significant number also believe that the training they want is not available through local career centers (45 percent) or that they lack the skills to needed to benefit from training programs (45 percent). Significantly, only 21 percent of low-wage workers have used One-Stop Career Centers or other government services funded under the Workforce Investment Act to elevate the skills of Americans living near the poverty line. WIA provides states and local governments with funding that supports 7,533 One-Stop Career Centers across the United States. One-Stops are designed to provide job seekers with a wide range of career development services, including information from employers on local job openings, assistance with resume and interview preparation, training and skill development, and information on how to obtain affordable education and training. "The survey shows that helping workers secure services they want is the key to making this billion-dollar investment pay off," said JFF President Marlene B. Seltzer. "Good workforce investment programs can spark the economy by filling skills gaps, raising productivity and boosting personal income, but they can’t succeed if people don’t know about them or have misconceptions about their availability and value." Enacted in 1998 to overhaul the nation’s public workforce development system, WIA is scheduled for reauthorization this year. Seltzer urged Congress to make outreach to low-wage workers—and the businesses that employ them—a top policy priority as it moves to reauthorize WIA. Significantly, employers of low-wage workers agree with their employees on a number of issues, according to recent WINs interviews with organizations representing 78,000 employers across the United States. Employers and employees alike see community colleges as the preferred provider of education and training, a finding that suggests federal workforce development programs would benefit from cultivating close partnerships with local two-year colleges. Overall, low-wage workers identify community colleges (46 percent) above local training agencies (20 percent), employers (17 percent), and government agencies (10 percent) as the best source for education and job training in their community, mirroring employer assessments. Both low-wage workers and the firms that employ them agree that they see information gaps and inadequate marketing as a barrier to more effective publicly funded workforce development services. Yet most low-wage workers still see want-ads and referrals from friends as the best way to find a good job. Low-wage workers look for new jobs through referrals from family and friends (66 percent) or the newspaper want ads (64 percent), rather than through temporary employment agencies (38 percent), local training agencies and organizations (21 percent), or government employment offices like One-Stop Career Centers (21 percent). Low-wage workers tend not to look to churches or religious organizations as education and training providers: only 4 percent preferred them over other public and private-sector providers. Among those who have experience with the various job search options, family and friends were rated as the most useful source of employment leads (94 percent). Nevertheless, two out of three (66 percent) low-wage workers who received job search help from a government agency or One Stop center viewed their experience favorably. Survey Methodology and Sample The survey was conducted between February 18 and March 18, 2003, among 1,002 low-wage Americans who work at least 30 hours per week outside the home and earn incomes less than 200 percent of the federal poverty limit. The poll has a margin of error of +/- 3.1 percent and includes statistically significant oversamples of African-Americans and Hispanics. Among the respondents, 16 percent had not completed high school, 43 percent had completed high school, 27 percent had some education after high school but without completing a college degree, and 13 percent had completed a college degree. A non-profit research, consulting, and advocacy organization, Jobs for the Future works to strengthen our society by creating educational and economic opportunity for those who need it most. JFF believes that all young people should have a quality high school and postsecondary education, and that all adults should have the skills needed to hold jobs that pay enough to support a family. On the Internet: www.jff.org. Jobs for the Future commissioned Getting Ahead in conjunction with Workforce Innovation Networks (WINs), a partnership with the Center for Workforce Preparation at the U.S. Chamber of Commerce and the National Association of Manufacturers’ Center for Workforce Success. Launched in 1997, WINs works with local employer organizations across the country to improve the economic prospects of disadvantaged job-seekers and workers while meeting the needs of their member firms for employees at the entry-level and above.