The Labor Crunch: Who’s Feeling the Squeeze and What We Can Do about It

The labor market is a hot topic these days. In the wake of an economic crisis, job creation has moved to the fore of social issues. Changes in the reemerging job market are evident as the restructuring process continues. At a breakfast hosted by State Street Foundation, Paul Harrington, Associate Director of Northeastern University’s Center for Labor Market Studies, presented his research on the topic.

Harrington discussed the current labor “crunch” in which entry- to mid-level workers have been forced to work jobs they would be considered overqualified for in “normal” labor markets. As people accept jobs that would otherwise fall below their skill set or experience level, it follows that those with the least education are often pushed out of the running for the limited jobs that do exist. Recent college grads are taking more and lower-paying service jobs, forcing those with only a high school diploma to scrape for whatever they can get, which in turn forces people without degrees completely out of employment.

Fortunately, however, solutions to this problem do exist. Emphasizing their paramount importance in difficult economic times, Harrington said that initiatives such as Project Hope’s Workforce Development & Employer Partnerships program, which trains low-income mothers for entry- and mid-level jobs at local hospitals, provide a critical road map for those in the greatest need of work. The Workforce Development & Employer Partnerships program, a 2010 Social Innovator, trains these women in basic office and administrative skills that make them competitive in the eyes of large employers, such as Brigham and Women’s Hospital.

It’s important to remember, though, that there is not a one-size-fits-all solution for this social issue. Every individual, low-income or not, has a different skill set. The Workforce Development & Employer Partnerships program understands this. They have different training tracks, allowing participants to find jobs that suit their skills and abilities. It is this type of nuanced approach by caring organizations, Harrington concludes, that will help low-income workers reemerge as viable candidates in today’s job market.