Research for Equity in Recovery: How Job Skill Development Matters

The first event in the Research for Equity in Recovery series took place on July 1; it focused on the development and training needs of the US workforce as the economy recovers from the effects of widespread state and city shutdown measures. This session featured presentations by Harry Holzer, Professor, Georgetown University, and Former Chief Economist, Department of Labor; Steven J. Davis, Professor, University of Chicago; and Michelle Miller-Adams, Senior Researcher, Upjohn Institute. Theresa Singleton, Senior Vice President and Community Affairs Officer, Federal Reserve Bank of Philadelphia, moderated.

Harry Holzer set the stage by presenting research on the demographic impacts of Covid-19 on the labor market, noting the worsening of existing inequities. With 20 percent of the labor force unemployed, he identified hardest hit groups. These include the temporarily and permanently displaced, who will suffer lower employment and earnings; new labor force entrants, who will experience prolonged effects from entering a depressed labor market. Pointing out that the importance of getting education and training money out for new jobs, Holzer said that any policy proposal should consider the following: 1) Who will benefit? Does it target the most affected groups? 2) What kind of education and training will be provided? Does it target high-demand fields? 3) Does research indicate that the proposal is cost effective?

In his presentation, Stephen Davis shared research demonstrating that the Covid-19 pandemic was resulting in an economic “reallocation shock” that would far outlast the pandemic itself, characterized by major shifts in consumer spending (toward online purchases); working arrangements (toward working from home); and business practices (toward online meetings, among other things). He shared research demonstrating that all three shifts would be permanent. Davis said that these shifts should inform our thinking about what policies will support an inclusive recovery enabling a transition away from declining to growing markets.

In her presentation, Michelle Miller-Adams spoke on strategies local communities and states can use to respond to the economic upheaval with an explicit equity lens. Emphasizing Holzer’s point that the economic fallout from the pandemic is exacerbating existing racial and economic disparities, she noted that the need for job training and re-training will be high while, at the same time, states and cities will be in fiscal crisis. She emphasized that federal emergency relief to help states and local governments close their budget gaps is urgently needed. Meanwhile, she said, states and localities will need to deploy their limited resources more effectively and creatively, and in a more targeted manner. Drawing on examples of successful programs in Tennessee, Adams argued that an emphasis on education—both higher-ed and k-12—is necessary. Better alignment of supply and demand will be an essential component of this strategy: policies and programs should identify and make connections among disconnected workers, employer needs, and the fields and degrees with the highest payoff. Adams noted that community colleges, which have ties to local employers and economies, will be useful players in these efforts.

Following the presentations, Theresa Singleton moderated a conversation among the panelists, drawing on questions submitted by webinar participants. To download the presentation slides, click here.