Transcript Insight PowerPoint

Closing the Racial Wealth Gap Through
Sector Workforce Strategies
Employment-Based Strategies for
Closing the Racial Wealth Gap
Tim Lohrentz and Melissa Ramos
September 24, 2008
Insight Center for Community Economic Development
The Insight Center for Community Economic Development is a national research,
consulting and legal organization that develops and promotes innovative
solutions that help people and communities become, and remain, economically
secure. The Insight Center is based in Oakland, California, and was founded in
1969 as National Economic Development and Law Center (NEDLC).
For more information about the Insight Center, visit http://www.insightcced.org
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 2
Defining Sector Strategies
Sector strategies are approaches to workforce development that target lowincome communities. Sector strategies:
 Target a specific industry within a regional labor market
 Intervene through a credible intermediary
 Create jobs with career ladder
 Meet the needs of employers
 Achieve systemic changes that are “win-win” for employers, workers,
and the community.
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 3
How are Sector Initiatives Unique?
Traditional
Workforce Development
Traditional
Economic Development
Sector
Initiatives
Purpose:
Prepare people for jobs
through skills development
and education
Attract, retain and expand
businesses and industries
Create industry change that
strengthens the target industry
and improves job quality and job
access for low-income people
Customer:
Individual job seekers
Businesses or industry
Low-income individuals
and industry
Focus:
General job readiness
Businesses in
one or more industries
Targeted jobs
in a specific industry
Planning:
Often guided by intuition
and general observation
Guided by economic data
or a general strategy of
supporting business
Guided by rigorous research of
industry, demographic data, and
employment training resources
Geographic
Focus:
Local
Local or regional
Regional
Community
Partnerships:
Sometimes
Sometimes
Always
Goals and
Outcomes:
Funder-driven
Funder-driven
Industry and community-driven
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 4
Closing the Racial Wealth Gap through Sector Strategies
Sector strategies generally target a specific industry and develop a regional
workforce strategy. The research we present today is a snapshot of how we
build on the sector approach but add a racial and ethnic component. Traditional
sector research uses labor market data to identify sectors which have
Job Growth
Self-Sufficiency Wages
Career Ladder Mobility
Access to Entry-level Jobs
Racial and Ethnic Component
Access to and exclusion from industry sector occupations with selfsufficiency wages and career ladder mobility potential.
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 5
Occupational Concentration by Wage, African Americans
Occupation by Weekly Earnings Quintile
African American Workers by Occupation Wage-Level Quintile
$968-$1,882
11.9%
$751-$968
17.4%
$599-$751
17.9%
$479-$599
24.2%
$305-$479
28.6%
30%
70%
Source: Bureau of Labor Statistics, based on 2007 Current Population Survey, U.S. Bureau of the Census
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 6
Occupational Concentration by Wage, Asian Americans
Occupation by Weekly Earnings Quintile
Asian Workers by Occupation Wage-Level Quintile
$968-$1,882
34.6%
$751-$968
15.6%
$599-$751
15.5%
$479-$599
14.9%
$305-$479
19.6%
30%
70%
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 7
Occupational Concentration by Wage, Latinos
Occupation by Weekly Earnings Quintile
Portion of Latino Workers by Occupation Wage-Level Quintile
$968-$1,882
8.4%
$751-$968
12.8%
$599-$751
19.3%
$479-$599
26.4%
$305-$479
33.2%
30%
70%
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 8
Most Segregated Occupations in the U.S.
Occupation
Type of Occupation
Percent
African
American,
Asian, or
Latino
Median
Weekly
Earnings
Earnings
Quintile
African
American
Ratio
Asian
Ratio
Latino
Ratio
Farmers & Ranchers
Management
3.9%
$496
2
0.10
0.11
0.16
Aircraft pilots & Flight
engineers
Transportation
5.5%
$1,358
5
0.05
0.64
0.14
Farm, ranch & agricultural
managers
Management
7.0%
$713
3
0.05
0.23
0.38
Lawyers
Legal
11.8%
$1,591
5
0.45
0.55
0.31
Librarians
Educational
12.1%
$861
4
0.55
0.43
0.29
Speech-language pathologists
Healthcare
practitioner and
technical
12.6%
$1,037
5
0.57
0.38
0.32
Construction managers
Management
13.3%
$1,143
5
0.24
0.32
0.66
Producers and directors
Arts and
entertainment
14.0%
$1,008
5
0.43
0.40
0.53
Secondary school teachers
Educational
15.5%
$944
4
0.65
0.30
0.50
Advertising sales agents
Sales
16.3%
$741
3
0.65
0.30
0.55
Note: Only includes occupations with at least 120,000 workers nationally. Overall, 29.7% of workforce is African
American, Asian, or Latino. Median weekly earnings, for all occupations and all workers: $640.
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 9
Occupations with lowest African American representation
Occupation
Aircraft pilots and flight engineers
Occupation
Type
Percent of
Workforce
that is African
American
Median
Weekly
Earnings
Wage
Quintile
Transportation
0.5
$ 1,358
5
Farm, ranch, and other agricultural managers
Management
0.6
$
713
3
Farmers and ranchers
Management
1.1
$
496
2
Health Practitioners
1.4
$
946
4
Artists and related workers
Arts and
Entertainment
2.6
$
953
4
Writers and authors
Arts and
Entertainment
2.6
$
999
5
Management
2.6
$ 1,143
5
Civil engineers
Architecture and
Engineering
2.9
$ 1,337
5
Engineers, all other
Architecture and
Engineering
3.0
$ 1,350
5
Dental hygienists
Construction managers
Overall
11.0
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 10
Occupations with lowest Asian American representation
Percent of
Workforce
that is Asian
American
Median
Weekly
Earnings
Occupation
Occupation
Type
Roofers
Construction
0.1
$
550
2
Drywall installers, ceiling tile installers, and tapers
Construction
0.2
$
511
2
Farming/forestry
0.2
$
471
1
Sales
0.3
$
598
2
Construction
0.4
$
765
4
Protective services
0.4
$
648
3
Management
0.5
$
496
2
Production
0.6
$
576
2
Brickmasons, blockmasons, and stonemasons
Construction
0.7
$
609
3
First-line supervisors/managers of construction trades workers
Construction
0.7
$
901
4
Emergency medical technicians and paramedics
Health practitioners
0.7
$
704
3
Lifeguards and other protective service workers
Protective services
0.8
$
410
1
Fire fighters
Protective services
0.9
$
901
4
Pipelayers, plumbers, pipefitters, and steamfitters
Construction
1.0
$
721
3
Education administrators
Management
1.0
$ 1,131
5
Logging workers
Parts salespersons
Operating engineers and other construction equipment operators
Bailiffs, correctional officers, and jailers
Farmers and ranchers
Painting workers
Overall
Wage
Quintile
4.7
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 11
Occupations with lowest Latino representation
Occupation
Aircraft pilots and flight engineers
Occupation
Type
Percent of
Workforce
that is Asian
American
Median
Weekly
Earnings
Wage
Quintile
Transportation
2.0
$ 1,358
5
Management
2.3
$
496
2
Health practitioners
2.5
$ 1,838
5
Computer
2.8
$ 1,455
5
Science
2.8
$ 1,098
5
Industrial engineers, including health and safety
Architecture and engineering
3.0
$ 1,223
5
Aerospace engineers
Architecture and engineering
3.1
$ 1,557
5
Arts and Entertainment
3.2
$
999
5
Management
3.4
$ 1,553
5
Science
3.5
$ 1,170
5
Mechanical engineers
Architecture and engineering
3.8
$ 1,354
5
Electrical and electronics engineers
Architecture and engineering
4.1
$ 1,454
5
Librarians
Education
4.1
$
861
4
Postsecondary teachers
Education
4.2
$ 1,131
5
Legal
4.3
$ 1,591
5
Farmers and ranchers
Pharmacists
Computer software engineers
Medical scientists
Writers and authors
Computer and information systems managers
Psychologists
Lawyers
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 12
Health care career ladder access, African Americans
Pharmacists –
0.54
Professional
degree
Speech-language
pathologist – 0.57
Master’s degree
Bachelor’s
degree
Associates
degree
Post-secondary
award
Physicians and
surgeons – 0.51
Dieticians and
nutritionists – 1.44
Registered
nurses – 0.90
LPN/LVN – 2.04
Moderate On-the-job training or
post-secondary award
Short-term On-the-job training
Respiratory
therapist – 1.00
Physical
therapist – 0.32
Physician
assistant – 0.65
Diagnostic
tech – 0.73
Medical records
tech – 1.63
Medical
Assistants
– 1.07
Occupational
therapist –
0.13
Clinical laboratory
technician – 1.66
EMTs and
paramedics – 0.78
Dental
hygienists
– 0.13
Miscellaneous health
technician – 2.34
Dental
Assistants
– 0.62
Health support
technicians – 1.27
Nursing
Aides – 3.05
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 13
Insight Center for Community Economic Development
For general information about sector strategies, visit the National Network of
Sector Partners’ website (http://www.nnsp.org). To adapt a sector approach to a
certain racial or ethnic group, please contact Susie Suafai
([email protected]) to discuss the necessary research and planning.
Our services include (but are not limited to):
 Best practices materials
 Conferences and convenings
 Links to others working in your sector
 Resource Materials
 Trainings
 Technical Assistance in sector research and analysis, program design
Closing the Racial Wealth Gap through Sector Workforce Strategies
September 24, 2008
Page No. 14