Labor force participation Archives - For Opportunity Thu, 20 Aug 2026 23:43:45 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.5 GCO Praises Federal Leaders for Empowering States to Strengthen Pathways to Work through the Stronger Workforce for America Act /press-releases/stronger-workforce-for-america-act-empowers-state-pathways-to-work/ Tue, 07 Apr 2026 15:14:57 +0000 https://foroppv2.wpenginepowered.com/press-releases/stronger-workforce-for-america-act-empowers-state-pathways-to-work/ The Stronger Workforce for America Act of 2026 includes an invaluable option for state flexibility, the Make America Skilled Again Grants. Ä¢¹½ÊÓÆµ and other states need this option so they can design workforce and safety net systems that meet families' immediate needs while providing a clearer path to opportunity and self-sufficiency.

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PEACHTREE CORNERS, GA—The Ä¢¹½ÊÓÆµ Center for Opportunity (GCO) offers its full support to the and commends Congressman Tim Walberg, Chair of the House Committee on Education and Workforce, for introducing this significant legislation to reauthorize the Workforce Innovation and Opportunity Act.

GCO is a nonprofit, nonpartisan organization that focuses on ensuring access to quality education, fulfilling work, and healthy family lives through research, policy analysis, and community initiatives. We advance solutions that increase opportunity and give Ä¢¹½ÊÓÆµ families a durable path out of poverty. We are also a founding member of the Alliance for Opportunity, a multi-state coalition focused on improving state-administered public assistance and workforce programs to help Americans achieve lasting opportunity and stability.

The Stronger Workforce for America Act aligns with our work and includes an invaluable option for state flexibility, the Make America Skilled Again Grants. These grants would allow 10 states to implement the model, which would empower them to integrate their safety net and workforce systems.

Utah has had this authority for nearly 30 years, after being grandfathered into the strategy. This has enabled Utah to provide its citizens with both support to meet their immediate needs and a clearer path into the workforce and toward self-sufficiency.

The results of Utah’s One Door policy are impressive. For example, the state has outpaced the national labor force participation (LFP) rate, or the number of working-age people employed or looking for a job, by an average of 5.3%. As of late 2025, Utah’s LFP rate was approximately 67.6%, one of the highest in the nation.

In contrast, Ä¢¹½ÊÓÆµâ€™s LFP rate is 60.6%. Put another way, nearly 40% of Ä¢¹½ÊÓÆµns, many of them prime-age men, who can work are choosing not to.

Eric Cochling, GCO’s Chief Program Officer and General Counsel, emphasized the detrimental impact of these statistics and the critical importance of work for a flourishing life:

“A good job offers more than just a paycheck. It provides purpose and stability and is one of the most durable ways to empower people to break the cycle of poverty.�

He also stressed the need for reform: “If we truly want to expand opportunity in Ä¢¹½ÊÓÆµ and across the country, individual workforce and safety net programs must start functioning as a true system—one that’s designed to support human dignity and flourishing. The Stronger Workforce for America Act is a much-needed step in the right direction.â€�

Ä¢¹½ÊÓÆµ policymakers are paying attention to the success of Utah’s integrated welfare and workforce system and are seeking opportunities like the Make America Skilled Again Grants to implement similar reforms that benefit both Ä¢¹½ÊÓÆµns and the state economy.

As Buzz Brockway, GCO’s Vice President of Public Policy, said:

“The ability to link workforce and safety net systems is key to boosting Ä¢¹½ÊÓÆµâ€™s current trajectory as a leader in economic opportunity. The Make America Skilled Again Grants included in the Stronger Workforce for America Act would give Ä¢¹½ÊÓÆµâ€™s leaders a powerful way to strengthen families, expand the workforce, and set the state on a path to more rapid growth.â€�

Randy Hicks, GCO’s President and CEO, added:

“Every state deserves the ability to design an integrated system that enables people to thrive. Right now, every wasted hour navigating disconnected programs is an hour that could have been spent building a better future. This bill ensures that states can rethink the status quo and create pathways to opportunity for every citizen.�

Through the changes it proposes, the is poised to make meaningful welfare and workforce reforms possible in Ä¢¹½ÊÓÆµ, and GCO strongly urges its enactment.

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Ä¢¹½ÊÓÆµ Center for Opportunity (GCO) is independent, non-partisan, and solutions-focused. Our team is dedicated to creating durable paths out of poverty for families in Ä¢¹½ÊÓÆµ and beyond. To achieve our mission, we research ways to help remove barriers to opportunity and promote our solutions to policymakers and the public so that public policy and civil society can effectively and innovatively strengthen family stability, economic mobility, and child opportunity in the communities where lives are lived. 

Send media inquiries to:

Rebecca PrimisÄ¢¹½ÊÓÆµ Center for Opportunity
RebeccaP@foropportunity.org 

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Ä¢¹½ÊÓÆµ Candidates for Governor Should Make Welfare Reform a Top Priority /op-ed/georgia-candidates-for-governor-should-make-welfare-reform-a-top-priority/ Mon, 08 Dec 2025 11:58:49 +0000 https://foroppv2.wpenginepowered.com/op-ed/georgia-candidates-for-governor-should-make-welfare-reform-a-top-priority/ In their pitch to voters, the 2026 candidates for Ä¢¹½ÊÓÆµ governor have mentioned they are likely to address tax reform, health care, […]

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In their pitch to voters, the have mentioned they are likely to address tax reform, health care, jobs, immigration, child care and housing issues.

But none have mentioned a priority that is not only connected to those issues but has a significant impact on the well-being of millions of Ä¢¹½ÊÓÆµ families — welfare reform. And with new federal work requirements set to take effect, policymakers will no longer be able to overlook Ä¢¹½ÊÓÆµâ€™s public assistance programs.

With more than struggling to make ends meet, reforms to the safety net should be a top priority for Ä¢¹½ÊÓÆµâ€™s next leader.

These low-income residents turn to Ä¢¹½ÊÓÆµâ€™s safety net programs for help, including Medicaid for health insurance, the Supplemental Nutrition Assistance Program for food support and Section 8 for housing assistance.

System fails to move people out of poverty

Both Republicans and Democrats agree these programs are a critical support system for disadvantaged communities.

But disagreement tends to emerge over whether welfare truly serves these people — helping them move from reliance on public assistance to independence and a more fulfilling life.

On that measure, — and its shortfall should capture the attention of Ä¢¹½ÊÓÆµâ€™s next governor.

Not only does Ä¢¹½ÊÓÆµâ€™s welfare system — like nearly all states’ — fail at its stated goal of moving people out of poverty, but it also compels recipients to stay dependent, keeping them in a cycle of poverty that so often defines generations of low-income Americans.

Welfare discourages recipients from getting married before having children and from working — troubling given those factors align with two of the three indicators in the , a series of life milestones that research has shown are the keys to happier lives, stable families and upward mobility (the other factor is obtaining a high school degree).

Ä¢¹½ÊÓÆµâ€™s next governor would do well to recognize that the implications of this flawed system extend beyond just welfare recipients. It has a significant impact on the state’s budget and economy.

 

Low labor participation rate is a warning

Social safety net programs, particularly Medicaid, are often the biggest expenses in a state’s budget. While the federal government partially funds welfare programs, the states are responsible for a significant share of the costs and are responsible for managing the system. With these high costs, policymakers should assess whether the billions spent on welfare is moving people out of poverty or keeping them on the economic sidelines.

And then there’s the direct impact on Ä¢¹½ÊÓÆµâ€™s workforce. Ä¢¹½ÊÓÆµâ€™s labor force participation rate, or the number of working-age people employed or looking for a job, is . Or put another way, nearly 40% of Ä¢¹½ÊÓÆµns, many of them prime-age men, who can work are choosing not to.

A low labor force participation rate is a warning sign for the state’s economic health. Every nondisabled Ä¢¹½ÊÓÆµn who opts out of work isn’t just losing income — our state loses tax revenue, businesses lose workers and communities lose engaged citizens who are the foundation of thriving neighborhoods.

Ä¢¹½ÊÓÆµâ€™s next governor should ask, then, why the state’s welfare programs fail to connect beneficiaries to resources they need to help them find a stable job. Unemployment is one of the primary reasons individuals seek assistance in the first place.

And yet when someone in Ä¢¹½ÊÓÆµ turns to the welfare system for support, they are not connected to work. Workforce development programs exist, but they oddly operate separately than the social safety net.

 

Follow other states in integrating workforce aims with welfare

Fortunately, policymakers in Ä¢¹½ÊÓÆµ have a road map to turn to called “â€� which integrates workforce development with welfare. Under this policy, people who access the safety net for help are connected to one caseworker who not only helps them meet their immediate needs but connects them with resources to find a job. Utah passed this reform in the 1990s and now boasts the lowest numbers of people on Medicaid and food stamps — along with consistently low unemployment rates.

Louisiana passed One Door legislation in June. Mississippi created a task force to explore the reform. And Arkansas also recently approved an audit of its workforce and safety net programs to identify needed changes. Ä¢¹½ÊÓÆµ should follow the lead of its southern neighbors to the West.

Welfare reform isn’t a second-tier issue. It’s central to sustaining Ä¢¹½ÊÓÆµâ€™s current trajectory as a leader in economic opportunity. Ä¢¹½ÊÓÆµâ€™s One Door gives the next governor a way to strengthen families, expand the workforce and set the state on a path to growth.

Buzz Brockway is the vice president of public policy at the Ä¢¹½ÊÓÆµ Center for Opportunity.

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Non-Working Adults Concentrated in Ä¢¹½ÊÓÆµâ€™s Distressed Communities /adults-not-working-in-georgia/ Tue, 02 Sep 2025 14:51:53 +0000 https://foroppv2.wpenginepowered.com/adults-not-working-in-georgia/ Many Ä¢¹½ÊÓÆµ counties face high rates of non-working adults, fueling distress and limiting opportunities in struggling communities. See the percentages for your county.

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In 96 of Ä¢¹½ÊÓÆµâ€™s 159 counties, at least a quarter of prime-age (25-54) adults aren’t working, according to the Economic Innovation Group’s recently updated . 

The higher percentage of non-working adults in these counties surpasses the national rate of 20.9%. It also contributes to more Ä¢¹½ÊÓÆµns living in distressed communities, where residents face challenges to accessing opportunities that make it possible to break out of poverty. While the numbers of non-working adults vary significantly throughout Ä¢¹½ÊÓÆµ, they are a strong reminder that communities and lawmakers must continue to support and empower adults who have the ability to enter the workforce.

Workforce participation a key factor in community well-being

The number of adults not working is one of several statistics the DCI uses to determine where communities fall on the spectrum of well-being and economic opportunity. Other factors include the number of people without a high school diploma or equivalent, the housing vacancy rate, the median household income, and the share of the population below the poverty line. 

The latest DCI update shows that 16.8% of Ä¢¹½ÊÓÆµns are living in distressed communities (approximately 1.8 million people), and another 18.3% live in “at riskâ€� communities (approximately 2 million people). 

In particular, the statewide percentage of prime-age adults who don’t work is 28.1%, which is about 7% above the national rate. Some counties significantly exceed the state average. For example, in Stewart County, just south of Columbus, 63.4% of prime-age adults aren’t working. Morgan County, on the east side of Atlanta, has the lowest percentage of non-working adults at 15.3%. 

The numbers of non-working adults correlate with poverty rates in counties across Ä¢¹½ÊÓÆµ. While the national share of the population living below the poverty line is 12.4%, Ä¢¹½ÊÓÆµâ€™s overall rate is 13.5%. Stewart County, discussed above, has a poverty rate of 27.8%. In contrast, Morgan County’s poverty rate is just 7.4%.

Use the table below to see how many adults aren’t working in your community.

Number of non-working adults compared to the unemployment rate

It’s important to note that prime-age adults not working is a separate workforce issue from Ä¢¹½ÊÓÆµâ€™s unemployment rate. The unemployment rate is the percentage of people in the labor force who are actively looking for work but aren’t currently employed. In contrast, non-working adults are people who aren’t employed and are not actively looking for work. 

In Ä¢¹½ÊÓÆµ, disengagement from work tends to be a bigger issue further outside Atlanta. The map below illustrates that several of the counties surrounding Atlanta have lower percentages of non-working adults, and they typically have unemployment rates close to Ä¢¹½ÊÓÆµâ€™s overall unemployment rate of 3.4%.

Benefits of work beyond the economic aspect

The DCI focuses primarily on economic well-being, showing how it improves as people enter the workforce. But our research has found that there are many other non-financial benefits of work, especially for communities struggling with long-term or generational poverty. 

Evidence shows that working provides a stronger sense of self-esteem, dignity, and purpose for employed people. 

Work also improves mental and physical health. Working adults often experience less anxiety, fewer symptoms of depression, a decreased risk of suicide, and lower mortality rates. Greater opportunities for upward mobility can enhance these positive effects.

The families of those who work are more stable as well, and the children of working adults tend to have stronger academic performance and future income for themselves. 

A thriving workforce also changes entire neighborhoods for the better. More adults working contributes to more positive engagement in the community overall, greater opportunities for job growth, and increases in services and resources. Employment has also been linked to reductions in crime and recidivism.

Helping Ä¢¹½ÊÓÆµns experience the benefits of work

It’s crucial that both policymakers and communities throughout Ä¢¹½ÊÓÆµ continue their steadfast efforts to encourage non-working adults to enter the workforce. Doing so will lift distressed communities and narrow the economic and social gaps that separate them from their more prosperous neighbors. 

As local organizations support and empower people who are considering work, they can also take the opportunity to help those individuals recognize how working can cause a ripple effect of rewarding changes, creating a more hopeful future and a greater quality of life for themselves, their families, and their communities.

Image Credit: Canva

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A Better Way to Get Welfare Recipients Back Into the Labor Force /op-ed/better-way-to-get-welfare-recipients-back-into-labor-force/ Tue, 01 Jul 2025 03:20:11 +0000 https://foroppv2.wpenginepowered.com/media/better-way-to-get-welfare-recipients-back-into-labor-force/ If the One Big Beautiful Bill becomes law, states will quickly discover that their administrative systems are ill-equipped to move recipients from welfare to work. To succeed, states should adopt a more integrated approach.

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This Father’s Day, Men Are Struggling. We Need to Help Them /op-ed/op-ed-this-fathers-day-men-are-struggling-we-need-to-help-them/ Tue, 18 Jun 2024 17:29:40 +0000 https://foroppv2.wpenginepowered.com/media/op-ed-this-fathers-day-men-are-struggling-we-need-to-help-them/ As we celebrate Father’s Day on June 16, it’s time for a renewed call to help men flourish in modern-day America. It’s […]

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As we celebrate Father’s Day on June 16, it’s time for a renewed call to help men flourish in modern-day America. It’s well past time to begin addressing what has emerged as a deep problem in the United States: Aimless, lonely, detached men. The challenge is most deeply experienced in poor, low-income, and working-class communities.

Consider that 6 million prime-age, able-bodied men between the ages of 25 and 54 are absent from the labor force – even in today’s economy with such low unemployment rates last seen in the 1960s. Even many men who are working are underemployed or in low-skill jobs. In 2021, for example, approximately 6.6% of unrelated individuals in the labor force for 27 weeks or more – many of whom are from working-class communities – were classified as working poor, meaning their incomes fell below the official poverty level despite their work efforts.

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9 Benefits of Work for Teens and Young Adults /benefits-of-work-for-teens-and-young-adults/ Fri, 14 Jun 2024 13:12:07 +0000 https://foroppv2.wpenginepowered.com/benefits-of-work-for-teens-and-young-adults/ Our review of the research uncovered nine benefits of work that help young people develop the foundations for success in every area of life.

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In addition to earning money, the benefits of work for teens include positive impacts on mental health, physical health, and relationships.

Key Points

  • Research has shown that there are numerous benefits of work for teens and young adults across all areas of life, including finances, relationships, and physical and mental health.
  • Labor force participation rates show teens and young adults are working less than previous generations.
  • Encouraging teens and young adults to work can be a valuable way of helping them lead meaningful lives and become healthy, resilient adults.

As summer break approaches for many teens and young adults, most will be looking forward to leisurely activities like a trip to the beach, camping, or even summer camp. Kids at this developmental age indeed need relaxation and rejuvenation over summer breaks, but it is also a valuable opportunity to reap lifelong benefits.

Parents, guardians, or even mentors may want to encourage their teen to get a summer job—not just to earn a little spending money but because work has many other benefits to the health and resiliency of teens.

It’s true that the brains and bodies of kids need some time to relax and rejuvenate after a long school year—and taking a much-needed break in the summer months can be a good thing. There’s also a lot to be said for getting a summer job that teaches the value of work and offers benefits that reap dividends over the course of their lives.

Work is good for young people

Research shows that seasonal and part-time employment for teenagers and young adults has almost universally positive impacts. The truth is that holding down a summer job is something that previous generations commonly experienced—and enjoyed—but kids today have been comparatively shielded from working until much later in life.

In fact, according to the, the summer labor force participation rate for 16- to 24-year-olds in July 2023 was only 60.2%—slightly down from the previous year’s rate of 60.4%. By comparison, back in July 1989, the rate peaked at 77.5% before trending downward over the next 20-plus years to settle between 60.0% and 60.6% from 2012 to 2018. 

Since then, the rate dropped significantly to 57.3% in 2020 due to the economic dislocation caused by the COVID-19 pandemic, though it has since returned to pre-COVID levels at around 60%.

Contrasting by gender, the 2023 gap in summer labor force participation was the smallest on record—at only 0.4%—with only 60.4% of young men working compared to 60.0% for young women. Interestingly—and not surprisingly—the gender gap was its widest at 40.9 percentage points back nearly 75 years ago in July 1950. Also not surprising is that today most summer jobs for teens and young adults are in leisure and hospitality (25%), retail trade (18%), and education and health services (13%). 

Clearly, the current generation of teens and young adults is working less than their predecessors. But what’s the impact on their lives?

They not only miss out on the financial benefits of earning money, but also on learning “soft� skills and attitudes that will positively impact them for the rest of their lives, including time management, respect for supervisors, following instructions, being reliable, demonstrating an upbeat attitude, dressing appropriately, accepting constructive criticism, and even using work-appropriate language.

As teens and young adults take on fewer seasonal or part-time jobs, they miss out on the benefits of work.

In July 2023, the summer labor force participation rate for 16- to 24-year-olds was 60.2%. In July 1989, the rate peaked at 77.5%. The drop means more young people are missing out on the benefits of work.

As teens and young adults take on fewer seasonal or part-time jobs, they miss out on the benefits of work.

In July 2023, the summer labor force participation rate for 16- to 24-year-olds was 60.2%. In July 1989, the rate peaked at 77.5%. The drop means more young people are missing out on the benefits of work.

For young people, benefits of work span all areas of a healthy life

Beyond this, the Ä¢¹½ÊÓÆµ Center for Opportunity (GCO) team has thoroughly reviewed the literature and found that there are nine benefits for work that help teens and young men and women develop a strong work ethic that lays the foundation for success in every area of life: 

1. Personal finances: When we think of work, we immediately think of a paycheck. That’s the most obvious benefit. Work enables kids to buy both necessities and luxuries, to pay for education, even to start saving for retirement. Attaching to work early is also important for avoiding the trap of the social safety-net system that can unintentionally keep people mired in poverty.

2. Serving others: Earning money in a free market economy shows the ability to create value by serving others and learning self-reliance.

3. Economic impact: The more people work, the more the economy grows. This creates a more prosperous society and leaves those who work personally better off than those who don’t work. Those who don’t work deny society resources that could have made everyone better off—while simultaneously pulling resources away from other important societal needs.

4. Personal well-being: Work confers dignity and respect. It provides a sense of meaning and purpose in life. In contrast, those who don’t work are, overall, less happy and experience higher levels of personal and familial stress, sadness, despair, hopelessness, apathy, and depression.

5. Mental health: Those who work experience improved mental health outcomes and have higher self-esteem, fewer psychosomatic symptoms, less anxiety, and decreased suicide risk.

6. Alcohol and substance abuse: Those who work generally have reduced drug use and improved treatment outcomes. The impact of substance abuse appears to be greater on those who don’t work.

7. Physical health and lifespan: Those who don’t work generally have poorer physical health, including disrupted sleep patterns, higher risk for cardiovascular disease and respiratory infections, and shorter longevity.

8. Family relationships: Working has a particularly positive impact on males when it comes to family formation. Young men who work are much more likely to marry and have a family.

9. Crime: Working typically has a positive effect on teens and young adults by increasing future wages, building human capital, and reducing criminal behavior and recidivism—especially for economic crimes involving property damage, theft, and drugs. 

Taken together, the evidence is strong for teens and young adults to start working on a seasonal or part-time basis. Whether it’s learning to manage a summer job in between camps, family vacation, and other enrichment activities or working during the academic year after school or on the weekends, the benefits of employment go far beyond earning money. 

While it may be fashionable for parents to shelter their children from the working world as long as possible to allow them to enjoy a more carefree and leisurely adolescence, the data—and generational wisdom—show that we do kids more harm than good by unduly delaying their exposure to the workforce.

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A new bill in KY legislature simplifies expungement process /press-releases/a-new-bill-in-ky-legislature-simplifies-expungement-process/ Thu, 23 Feb 2023 16:47:40 +0000 https://foroppv2.wpenginepowered.com/media/a-new-bill-in-ky-legislature-simplifies-expungement-process/ A new bill has been introduced in the Kentucky Legislature, House Bill 589, that simplifies the process of having criminal records expunged […]

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criminal justice josh Crawford media statement header

A new bill has been introduced in the Kentucky Legislature, House Bill 589, that simplifies the process of having criminal records expunged for people who have been convicted of a misdemeanor or class C felony that does not involve violence, sex, a child victim, or public corruption.Under current Kentucky law, such individuals are eligible for expungement after the completion of their sentence and a five-year crime-free period. Unfortunately, a confusing and sometimes burdensome process prevents many people who are eligible from having their records expunged.

The Center for Opportunity’s take:Ìý“This bill does not change the crimes for which expungement is eligible nor the requirements of a crime free period once the sentence is completed. Everyone who will benefit from this bill is a non-violent offender who has made it clear their interest is in re-entering civil society,” saidÌýJosh Crawford, director of criminal justice initiatives for the Center for Opportunity.

“Importantly, prior convictions can be impediments to finding meaningful work. This matters for two reasons. The first and more important is that meaningful work, in particular the amount of time someone spends working in a job and building a work community, significantly reduce the likelihood that person will recidivate. Reducing recidivism means less crime and fewer victims. Second, Kentucky has one of the worst labor force participation rates in the country. With such a large percentage of our population having a criminal conviction, we cannot afford to exclude from the labor force those who are attempting to turn their lives around and live on the straight and narrow. Kentucky business benefits from an engaged and motivated workforce — those who have earned an expungement under Kentucky law are these exact kind of employees.”

 

Josh media statement

 

 

 

 

 

To learn more about the work we’re doing to increase public safety and assist citizens in getting back to work, click here.

Josh media statement

To learn more about the work we’re doing to increase public safety and assist citizen in getting back to work, click here.Ìý

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Nearly half a million Ä¢¹½ÊÓÆµns have given up on work /nearly-half-a-million-georgians-have-given-up-on-work/ Tue, 08 Nov 2022 13:31:42 +0000 https://foroppv2.wpenginepowered.com/nearly-half-a-million-georgians-have-given-up-on-work/ A new analysis from the Ä¢¹½ÊÓÆµ Center for Opportunity shows that around 454,100 Ä¢¹½ÊÓÆµns are missing from the labor force. This figure comes even as pundits celebrate a statewide and national unemployment rate that remains at historic lows.

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People working

Key Points

  • Around 454,100 Ä¢¹½ÊÓÆµns are missing from the labor force.
  • The labor force participation rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether.
  • We need to answer, how to reintegrate these prime-age, work-capable workers back into the labor force?

A new analysis from the Ä¢¹½ÊÓÆµ Center for Opportunity shows that around 454,100 Ä¢¹½ÊÓÆµns are missing from the labor force. This figure comes even as pundits celebrate a statewide and national unemployment rate that remains at historic lows.Ìý

The startling statistic shows a hidden story behind the unemployment rate that reveals deeper cracks in the labor market that will cause problems for years to come, both in the economy and in individuals’ lives. The reason why this matters is not strictly an economic one — we know that these individuals’ giving up on work has profound social, psychological, and relational impacts that extend well beyond the pocketbook.

When individuals are separated from work, they lose more than just monetary compensation or the food, shelter, clothing, and other basics that money can buy. They also face a loss of social connection, meaningful activity, self-respect, and overall purpose.

 

The numbers

Here’s a quick deep dive into the numbers. , which is a tick higher than the previous low of 3.5% but still at historic lows. .

The troubling trend is in the labor force participation rate, however. This rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether. The U.S. labor force participation rate was at 62.2% in October, down from a pre-pandemic rate of 63.4% in February 2020.

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Those detached from work

It’s important to note that the 454,100 figure developed by the GCO team does not include those unable to work, those who were retired, those in school or college full-time, and full-time caregivers for minor children in the home. In other words, that nearly half-million figure is people who are able to work but have simply decided to detach from the labor force altogether, for some other reason.

As for reasons why workers have quit, they are widespread and complex. The better question is how to reintegrate these prime-age, work-capable workers back into the labor force. That is a primary goal of the Ä¢¹½ÊÓÆµ Center for Opportunity’s BETTER WORK initiative, currently operating in Gwinnett County and the Columbus areas of Ä¢¹½ÊÓÆµ but soon to expand into many additional regions across the state.Ìý

We see success stories like that of Eddie, who spent nearly five years on the street, homeless and working odd jobs, before getting connected with BETTER WORK Columbus and partner organizations to find stable housing, food security, and a long-term job. The goal of such programs is to get people into stable, self-supporting work so they can escape poverty and dependency cycles.

The GCO team also works to educate policymakers on the perils of benefits cliffs that keep people trapped in cycles of dependency and prevent them from moving up the economic ladder. People like Frankie, a single mom who turned down a $70,000-a-year job because it would mean losing essential government benefits that she relied on to support her family. The goal here is for policymakers to make wise decisions about the safety net so that we don’t continue to pour funds into a failing system.

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GCO analysis: Nearly half a million Ä¢¹½ÊÓÆµns have given up on work /press-releases/gco-analysis-nearly-half-a-million-georgians-have-given-up-on-work/ Tue, 08 Nov 2022 13:09:16 +0000 https://foroppv2.wpenginepowered.com/press-releases/gco-analysis-nearly-half-a-million-georgians-have-given-up-on-work/ The post GCO analysis: Nearly half a million Ä¢¹½ÊÓÆµns have given up on work appeared first on For Opportunity.

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In The News

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Key Policy Takeaways from 30 years of Child Poverty Decline /key-policy-takeaways-from-30-years-of-child-poverty-decline/ Tue, 25 Oct 2022 10:37:39 +0000 https://foroppv2.wpenginepowered.com/key-policy-takeaways-from-30-years-of-child-poverty-decline/ Childhood poverty leads to worse educational attainment, worse future labor market outcomes, worse mental and physical health and development, and increased risk of engaging in delinquent behavior.

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child poverty

Key Points

  • Childhood poverty leads to worse educational attainment, worse future labor market outcomes, worse mental and physical health and development, and increased risk of engaging in delinquent behavior.
  • ÌýA reduction in child poverty is tied to government programs which incentivize work.Ìý
  • The key takeaway from the Census data which shows child poverty rates are falling and the Child Trends report which studied the causes of the decline is that, despite massive social safety net expansions, work and self-sustainability still played a larger role in lifting children out of poverty than government spending did.

by Alexander Adams

Ìý

In a world marred by clickbait media headlines portending disaster, it’s always a relief when some rosy news can sneak its way into a major publication: “â€� was the title of a recent New York Times newsletter. Fortunately, there happens to be strong backing for such a direct headline: According to a by the firm Child Trends, a nonpartisan research center, in 1991 27.9% of children lived at or below the Census’. Today, that number has fallen to 11.4%.Ìý

This is undoubtedly fantastic news. The research is: children living in poverty face worse lifetime outcomes on a whole host of measures. Childhood poverty leads to worse educational attainment, worse future labor market outcomes, worse mental and physical health and development, and increased risk of engaging in delinquent behavior. The reduction in child poverty makes the lives of millions of children better off and has positive externalities for everyone in the country.ÌýÌý

The Child Trends report asked a few fundamental questions regarding this amazing decline in child poverty, the key one being: what exactly caused this massive decline in child poverty?

According to the media’s portrayal of the report, the reduction was due to expanded social safety net and increased social safety net spending. Another New York Times on the Child Trends report was headlined: “Expanded Safety Net Drives Sharp Drop in Child Poverty.â€� Opinion writers at the Washington Post took it a , arguing that the decline in child poverty since the 1990s debunks “arguments that…government help must be accompanied with work requirements.â€�ÌýÌý

But does it really?Ìý Ìý Ìý

According to the Child Trends report itself, many of the programs proven to be successful in reducing poverty—the Earned Income Tax Credit (EITC), the Child Tax Credit, the Supplemental Nutrition Assistance Program (food stamps)—have work requirements. The EITC is actually an earnings supplement which has been shown to. The expansion of work requirements for welfare programs in the 1990s increased labor force participation, according to research, which translated into more income and less poverty.Ìý

In 1991 27.9% of children lived at or below the Census’. Today, that number has fallen to 11.4%.Ìý

In 1991 27.9% of children lived at or below the Census’. Today, that number has fallen to 11.4%.Ìý

The increased post-tax income due to work incentives and requirements has not only reduced poverty and increased income, but has had nonfinancial impacts as well such as for children. The Ä¢¹½ÊÓÆµ Center for Opportunity has previously published work on the deleterious nonfinancial impacts of nonwork. of the Child Trends report also shows that child poverty was stagnant from the beginning of the War on Poverty to the mid-1990s. The decline in child poverty occurred after we replaced our no strings attached welfare system with a system replete with pro-work incentives and requirements (though, work remains to be done).Ìý

Given all of this, it should be argued, based on the results of the report, that it was pro-work reforms and expansions to earnings supplement programs which directly promote work and self-sustainability that reduce child poverty — not unrestricted government spending.

Not only that, but according to the Child Trends report itself, the vast majority of the decline in child poverty is attributable to increases in earned income and not expanded social safety net programs. According to the report, child poverty fell 16.5 percentage points — from 27.9% to 11.4% — between 1993 and 2019. In 2019, they argue the child poverty rate would be 44% higher in the absence of social safety net expansions. This means, of that 16.5% drop, approximately 6% can be attributed to social safety net spending and over 10% is due to non-governmental factors.[1]Ìý

These other factors represent the effect of earned post-tax income not provided by aid. While the social safety net played a role in material child poverty reduction, we can see that private income played an even larger role in that decline.Ìý

At GCO, we promote self-sustainability and work precisely because we understand that work plays a larger role in lifting oneself up from poverty than government aid — and the Child Trends report supports that argument.

The key takeaway from the Census data which shows child poverty rates are falling and the Child Trends report which studied the causes of the decline is that, despite massive social safety net expansions, work and self-sustainability still played a larger role in lifting children out of poverty than government spending did. Further, among the programs which did measurably help the poor, it was policies oriented towards promoting work, not programs without work requirements, which usually had the largest impact.

[1] As the child poverty rate in 2019 was 11.4% in 2019, and it would be 44% higher without social safety net expansions, this means, without social safety net expansions, child poverty would be approximately 16.4% (11.4*1.44 = 16.4). 16.4 (no welfare) minus 11.4 (reality) = 6%. This means approximately 10.5 percentage points of the 16.5% decline in child poverty was due to increases in earned income, and only 6 percentage points due to social safety nets (16.5 – 10.5 = 6).Ìý

 

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