Bridging The Employment Gap: Sector Partnerships and Black Workers' Economic Mobility

The Joint Center for Political and Economic Studies suggests that more data is required to determine the effectiveness of sector partnerships in assisting Black workers facing employment and wage disparities. The report highlights that these collaborations can potentially increase job retention and wages, but current legislation lacks specific funding provisions for such initiatives.

New research from the Joint Center for Political and Economic Studies indicates a need for additional data to evaluate the impact of sector partnerships on Black workers who encounter employment and wage disparities. The workforce system, according to the report, aggravates these disparities by channeling Black workers into low-wage jobs with limited career advancement and economic mobility.

The study points to sector partnerships—collaborations amongst industry employers, educational institutions, community organizations, and unions—as a viable solution for developing skills and connecting workers with job opportunities. 'This model has shown it can increase pay and job retention for Black workers,' said Justin Nalley, senior policy analyst at the Joint Center.

Signed into law in July 2014, the Workforce Innovation and Opportunity Act mandates local and state boards to gather and analyze labor market data to create sector initiatives for in-demand sectors or occupations. However, the Act does not allocate specific funding for these partnerships, although states can use job training budgets for this purpose, the report notes.

'It is a required Workforce Strategy to have sector partnerships, but there's no funding attached to it, so funding needs to be attached to it,' said Nalley. The Department of Labor did not immediately respond for comment.

In April, the U.S. House of Representatives passed a bipartisan bill, A Stronger Workforce for America Act, which aims to expand skills development and formalize sector partnerships along with their funding eligibility. The Joint Center recommends that the Senate version of the bill include a requirement for reporting program outcomes by race. Black Americans make up 13% of the workforce, the Bureau of Labor Statistics reports.

Agencies like the U.S. Equal Employment Opportunity Commission are underfunded, limiting their capacity to enforce anti-discrimination policies effectively, says Algernon Austin, director of the Center for Economic and Policy Research. 'Our ability to identify and counteract discrimination in the labor market has been systematically weakened over time,' he noted.

A 2021 study by the U.S. Department of Labor revealed that Black workers in training programs, including sector partnerships, earn significantly less than white counterparts, and the wage disparity increases over time. 'The opportunity to acquire the necessary skills for higher-paying jobs has often been limited due to discriminatory practices,' commented Democratic Representative Bobby Scott, who co-sponsored the bill with Republican Representative Virginia Foxx.

(With inputs from agencies.)