Yesterday, Secretary King provided opening remarks and facilitated a panel with youth and employers at the First Job Compact Implementation Convening. This is the second convening of its kind that seeks to establish best practices and strategies for enabling Opportunity Youth— youth ages 16-24 who are out-of-work and out-of-school—to obtain their first job. Over 100 human resources and talent leaders, as well as non-profits and agency colleagues, gathered to discuss these strategies and how to make them part of their company’s business plan.
Secretary King also announced that the U.S. Department of Education(ED), in consultation with the U.S. Departments of Labor, Health and Human Services, and Housing and Urban Development, intends to provide technical assistance funding to help public housing authorities connect youth who have aged out of the foster care system with high quality career and technical education programs. Through this investment, ED hopes to assist career and technical education programs to better meet the needs of current and former foster youth. The project also seeks to improve coordination among the child welfare system and other federal programs.
About one in seven young people between the ages of 16-24 are either not in school or not working. These individuals are known as Opportunity Youth. The unemployment rate for individuals 16-24 sits at 11 percent and is even higher among African-American and Latino youth (22 percent and 12 percent respectively). Early in the Obama Administration, the White House convened corporations to encourage companies to create pathways for Opportunity Youth to gain their first job. Additionally, in President Obama’s 2016 State of the Union Address, he announced the importance of creating an economy that works better for everybody, including a plan for Opportunity Youth to gain the work experience, skills, and networks that come from having a job. This effort will not only change the lives of youth and communities across the country, but it will also create and build a sustainable and resilient workforce.
Yesterday’s convening included companies such as Gap and Chipotle, who signed on to the First Job Compact. Through a series of engaging panels, corporations share best practices needed to move this work forward. These companies understand that the Compact’s objectives are mutually beneficial to their companies and the youth it serves. Companies often report that young people struggle to find jobs because they lack basic workplace skills and behaviors. By committing to a set of best practices to hire and support these youth, companies will be able to identify and leverage the vital skills and backgrounds these youth bring to the job and in turn increase their interview to hire ratio, retention rate, speed to promotion, and engagement scores to meet company goals. For almost a decade, Gap has engaged in This Way Ahead, which is a paid life skills and internship program that helps low-income youth land a first job at our Old Navy, Gap, and Banana Republic stores.
Through strong collaboration, industry and government will remain committed to reconnecting Opportunity Youth to education and workforce opportunities. Recently, the Organization for Economic Co-operation and Development (OECD) released a report “Work-based Learning for Youth at Risk: Getting Employers on Board” which aims to tackle the common challenge to growing youth job training by establishing the idea that employers first need to see work-based learning as a way to help their business. Read more about this report and further analysis in this blog by New America.
It is clear this this issue has already stirred national interest. President Obama recently released a fact sheet on innovative ways to fund the First Job initiative. In conjunction with ED’s Office of Career, Technical, and Adult Education (OCTAE), the Administration has engaged in a #FirstJob Skills Campaign which seeks to leverage social media and celebrities to connect youth to educational resources to help improve their employability skills. As a part of these efforts, OCTAE released a fact sheet entitled Employability Skills: Supporting Opportunity Youth to Be Successful in Their First Job. This administration firmly believes that these efforts will strengthen our workforce, grow our economy, and change lives.