in Inclusion the Workforce Positioning the Pitt sburgh Region to Prosper and Compete

1 INCLUSION IN THE WORKFORCE: Research assistance provided by Ralph Original Draft Presented for Discussion POSITIONING THE PITTSBURGH REGION TO Bangs and Robyn Markowitz, at December 11, 2008 PROSPER AND COMPETE University of Pitt sburgh 5th Annual SWPA Regional Equitable Development Summit A strategic report writt en by: Chris Benner, University of California Davis and Radhika Fox, PolicyLink Published by Sustainable Pitt sburgh With Miriam Axel-Lute

Introduction

The stark racial disparities that characterize Greater Pitt sburgh’s labor market weaken the regional economy and levy—much like an onerous tax—high costs on the entire community. Building an urban economy in which everyone participates and prospers is not merely a matt er of altruism or social justice, but rather a crucial step towards transforming an aged industrial center into a dynamic, 21st century city.

This strategic report explains why, in this global information economy, racial equity and inclusion are the cornerstones of sustained development and successful, healthy regional economies. This report analyzes racial disparities in employment in the Pitt sburgh metropolitan area, reviews the critical role that a diverse workforce plays in improving economic competitiveness, and recommends policies for enabling the region to reach its full potential.

2 Why Does Racial Equity Matt er for Pitt sburgh? Economic Inclusion and Economic Competitiveness Are Linked

hy is the racial disparity in and falling levels of poverty improve Wemployment opportunities, metropolitan economic performance.1 and not just the total number of And what’s more, across the United unemployed and underemployed, a States, income gains in central problem for the city and its suburbs? cities between 1970 and 1990 had a Inequity imposes high economic costs positive impact on suburban incomes, on virtually every actor in the regional population growth, and home values.2 economy: investors, government One late 1990s study of 74 urban areas agencies, business managers, found a positive relationship between homeowners, renters, the rich and the reduction of poverty in core cities the poor, the idle, and workers alike. and overall metropolitan growth.3 Sharp regional disparities stifl e growth, slow momentum and eat Essentially, the less segregated and away at the sense of community divided the region, the stronger that historically binds neighbors-- the economy. In a recent analysis of and communities--together. This, in 118 metropolitan areas, researchers turn, oft en leads to “white fl ight” concluded that racial inclusion and and shrinking public investments in income equality are associated with “Inequity imposes high human capital such as when families strong regional economic growth.4 fl ee public school systems and grow In that study, researchers condensed economic costs on virtually increasingly reluctant to contribute a wide range of variables into a every actor in the regional their tax dollars to support the school list of just nine indicators, each system and community. Political encompassing several key variables. economy: investors, government squabbles, oft en pitt ing suburbs Of the nine, “Racial Inclusion and against central cities over subsidies, Income Equality” is the only indicator agencies, business managers, parks, and other public resources, that had a high correlation with all homeowners, renters, the rich frequently become commonplace. four of the researchers’ measures for The resulting infrastructure decline, economic growth (per capita income, and the poor, the idle, and social confl ict, and stagnant economic employment, gross metropolitan opportunities increase the general output, and productivity).5 In fact, workers alike. Sharp regional desire, particularly among younger this indicator had the strongest or 2nd disparities stifl e growth, slow workers who are so important to strongest correlation with three of the future economic prosperity, to jump four economic growth measures used: momentum and eat away at ship in favor of less problematic areas. employment growth, productivity, and change in real output.6 the sense of community that In a global economy that relies more on knowledge, education, Recent research by Manual Pastor historically binds neighbors-- technological skills, urban areas are and Chris Benner confi rm these and communities--together.” not economically competitive when fi ndings that inequity causes urban a large segment of the population economies to “drag.” Perhaps more don’t have the skills or training to importantly, they found that the contribute to the region’s economic eff ect of concentrated poverty, income output. Cities, suburbs, and businesses inequality, and racial segregation all gain a competitive edge by was actually signifi cantly stronger investing in educated, creative, and in regions like Pitt sburgh with a healthy workers who can add value to “weak-market” center city than in products and deliver services across rapidly growing regions. “The overall the region. patt ern suggests that paying att ention to equity is entirely consistent with This is more than a gesture of promoting growth,” they wrote, “and kindness. The hard numbers show may in fact be even more important in that equity and inclusion are directly areas that have experienced economic tied to a region’s economic health. decline.”7 Studies indicate that rising incomes

1.3 3 Inequity in the Workforce

his overall trend linking regional success relies at least as much on stuck” at the same places the way they Teconomic health with regional equity tapping the creativity and talents of its would if they were all smart people but logically extends to diversity and equity own population, including its young examining a problem from an almost in the workforce. A racially diverse professionals, att racting new ones is also identical perspective. While Page didn’t workforce—including in senior skilled an important tactic. In both cases, when study race per se, the diff erent cultural, positions, management, and executive a workforce is racially segregated and geographical, and social contexts of most levels—strengthens both a company’s black residents are underrepresented blacks and whites means that they bring and the region’s att ractiveness to young in the workforce, it becomes much diff erent experiences, perspectives, and professionals with many choices of more challenging to project the kind of skills to the table. where to work and live. A diverse diversity that appeals to young, educated workforce strengthens companies’ own workers. It is no surprise then, that many They also bring access to diff erent social innovative capacities by introducing into of Pitt sburgh’s leading businesses have networks, which can signifi cantly lower the company a wider range of problem- formally instituted diversity programs a fi rm’s hiring costs. By some estimates solvers, and improves recruitment and and hired diversity offi cers. it costs an average of 25 percent of the retention for entry-level employees by position’s annual salary and benefi ts to allowing management to tap a new set of Diversity in the workforce is not, recruit, hire, and train a new entry-level social networks. however, merely a matt er of projecting employee.10 Hiring oft en occurs through a certain image or public relations. Scott social networks, and businesses without Richard Florida, in his paper for Page, a researcher at the University connections in the African American Sustainable Pitt sburgh, Quality of Place, of Michigan, demonstrated in his community are missing access to—and wrote “Knowledge workers seek cities book The Diff erence: How the Power of good information about—a large pool of and regions with diverse populations, Diversity Creates Bett er Groups, Firms, potential workers. progressive thinking, and inclusive Schools, and Societies that diversity—as att itudes toward a broad range of measured by various cognitive traits Business also suff ers when reduced individual characteristics including such as perspective and interpretation— employment prospects cause many race, nationality, lifestyle, and sexual “trumps” homogeneity and (in large African American adults to drop out preference. Knowledge workers look for enough groups) even straight-up ability, of the workforce, while others remain diversity as a general feature of an area when it comes to both the problem- disconnected from all but dead-end, as well as a company, and as an indicator solving and predictive capacity of low-wage jobs or are ruled out due to a that they will be accepted, welcome, teams of people.9 This is because prison record. All of this constrains the and fi nd people with whom they have diverse teams all come at challenges workforce available to businesses in the shared interests.”8 While Pitt sburgh’s from diff erent angles and don’t “get region.

4 Fiscal Costs of Black Unemployment

igh rates of unemployment among costs increase to $100,000.13 Loss of a increases. Researchers at the University Hany group of residents have parent to incarceration also increases of Pitt sburgh have found that more than negative economic eff ects that are far the risk that their children will commit half of the municipalities in the 10-county ranging. The fi nances of municipalities crimes, drop out of high school, and Southwestern Pennsylvania region face and counties in the region, especially get pregnant early, adding even more structural defi cits.15 While there may those in which the unemployment is to the taxpayers’ tab. Finally, higher be many reasons for such imbalances, concentrated, is one clear eff ect. rates of incarceration —triggered at many communities borrow heavily least in part by high unemployment— to plug the gap in their budget. The Unemployment slows the economy by leads to a vicious cycle, since a prison Pitt sburgh region has the highest levels reducing the spending power of residents record greatly reduces employment of interest debt expenditure per capita and the taxes they pay. The 14,000 jobless, opportunities, especially among black compared to 14 other benchmark cities underemployed, and working poor in the men. identifi ed by the University of Pitt sburgh Pitt sburgh region, for example, would and Carnegie Mellon-linked Pitt sburgh have had $372 million (2008 dollars) in Concentrated unemployment also Regional Indicators Project, spending additional annual earnings in 2008 if increases state and local government’s more than $350 annually for every man, African American men and women were share of social services payments, from woman, and child living in the region employed in full-time and part-time jobs income support to health care. As one simply to pay the interest on municipal at the same rates and at the same wages example, many studies have shown a debt. African-Americans’ suff er as white men and women. “This would correlation between unemployment disproportionately from these high levels have translated into hundreds of millions and mental health problems. Compared of indebtedness for at least two reasons. of dollars added to the regional economy, to both whites in the region and African-American’s are concentrated since these workers would spend nearly blacks nationally, African Americans in jurisdictions with high levels of all of the earnings in the region and in the Pitt sburgh MSA have a higher indebtedness. For example, the counties this spending would have a multiplier rate of serious mental illness (such as with the highest per-capital levels of debt eff ect,” note Ralph Bangs and Robyn depression). African Americans are also in the region are Allegheny ($473) and Markowitz.11 over represented in the utilization of Beaver ($494), the same counties with mental health and drug abuse services in the highest concentrations of African There are also more direct costs borne both the city of Pitt sburgh and Allegheny Americans.16 African-Americans also by the entire community for the County. In the city, blacks represent suff er disproportionately since they oft en marginalization of African American at least half of the clients but only 27 have a higher need for public services, workers. Every one percentage point percent of the population. In the county due to disproportionately high levels increase in joblessness among black they make up 22 to 30 percent of the of poverty. High debt levels constrain men results in a 1.5 percent increase in clients, depending on service type, but counties’ and cities’ abilities to provide black male imprisonment.12 This costs only 12.4 percent of the population.14 needed services. This underscores the Pennsylvania taxpayers about $40,000 urgency and special interest among the annually for a state prisoner and $18,000 High and inequitable joblessness region’s local governments who have annually for a county prisoner. For stretches city fi nances, as revenues much to gain in reducing unemployment elderly prisoners in failing health the decline and demand for services and growing a diverse workforce.

5 Racial Disparities and Growth in the Pitt sburgh Region

ne of the core challenges not lower black unemployment. In Oconfronting Pitt sburgh 2000, black male unemployment is the strikingly diff erent rates were about twice that of white levels of unemployment and males in the city of Pitt sburgh, but underemployment--and all the three times as large as those in att endant social costs--between Allegheny County and the region blacks and whites. With black as a whole. Similarly, black female unemployment in the region soaring unemployment was nearly twice the over the past two years, Pitt sburgh rate of white female unemployment and its suburbs have both a crisis and in the city of Pitt sburgh and nearly a very real opportunity to fi nally fi x three times as high in the Pitt sburgh a problem that has for years troubled region.20 the entire community, like a pothole that has grown so wide and deep that If the black employment rate were no one can drive around it anymore. equal to the white rate, 7,400 more blacks would be employed in the It is worth noting that there is region. Based on national data that nothing diff erent about the economic indicates the number of part-time role of equity for African Americans workers wanting full-time jobs is “With black unemployment and equity for other demographic usually two-thirds the number of groups. The dynamics described unemployed, there are another 5,300 in the region soaring above apply to disparities faced by underemployed black workers in Latinos, Asians, Native Americans, the Pitt sburgh MSA. Based on 2000 over the past two years, and others. In Pitt sburgh, however, census data, there are also about 1,400 inequity is particularly glaring along blacks who are working full-time but Pitt sburgh and its suburbs the black-white divide, primarily continue to live in poverty.21 have both a crisis and a very because the region has an extremely small population of other races. Compared with black workers in real opportunity to fi nally While this is changing--particularly the other 50 largest regions in the with the increasing migration of country, black men in Pitt sburgh had fi x a problem that has for Latinos into the area-- addressing the the ninth lowest median wage for years troubled the entire disparities facing African Americans full-time jobs and the second lowest is the area’s most pressing concern. wage for part-time jobs. Black women community, like a pothole in the region had the eighth lowest In the Pitt sburgh region17 during median wage for full-time jobs and that has grown so wide and 2001–2005, the employment rate for the second lowest wage for part-time deep that no one can drive blacks aged 16–64 was 56 percent, jobs.22 The median income for African meaning that a staggering 44 Americans in the region is only 57 around it anymore.” percent of working age blacks were percent of the median income for unemployed or out of the labor whites and23 in the city of Pitt sburgh, market.18 This is 1.6 times larger blacks account for 27 percent of than the 28 percent of whites that the population, but receive only 18 were unemployed or out of the percent of the income.24 labor market.19 The relative black- white employment gap is somewhat This data places Pitt sburgh squarely smaller in the city of Pitt sburgh than among the most inequitable regions in the rest of the region, but this is in the country. due to higher white unemployment,

6 Slow Regional Employment Growth

Percentage Increase in Employment 1996 - 2008 igh racial disparities in employment Hin the region are compounded by, and contribute to, slow job growth in general. Not only has employment growth in Pitt sburgh consistently underperformed when compared with the United States as a whole, it has also underperformed when compared with similar regions in the northeast and midwest. As shown in the nearby chart, between 1996 and 2008, total non-farm job growth in the Pitt sburgh MSA was 7.8 percent—somewhat slower than jobs in the private sector, which grew 9.1 percent over the same period. Across the United States, however, the total number of jobs increased at a rate of nearly double Pitt sburgh’s rate, or 14.5 percent, while jobs in the private sector grew by 14.4 percent. Even when compared with a group of 14 other cities identifi ed as comparable benchmarks by the Pitt sburgh Regional Indicators Project, Pitt sburgh has performed poorly.25 In these 14 cities, private sector jobs grew, on average, by 11.6 percent and the total number of jobs grew by 11.3 percent between 1996 and 2008. Only three regions performed worse than Pitt sburgh in overall job growth over that span: Detroit, Cleveland, and Milwaukee.26

7 The 14,000 jobless, underemployed, and working poor in the Pitt sburgh region, for example, would have had $372 million (2008 dollars) in additional annual earnings in 2008 if African American men and women were employed in full-time and part-time jobs at the same rates and at the same wages as white men and women. “This would have translated into hundreds of millions of dollars added to the regional economy,...

8 9 Causes for the Disparity

here are, of course, a range of factors students, who cost more money to are charged with similar crimes and Tthat have contributed to growing teach. Tax rates oft en rise to cover the have similar criminal backgrounds. inequality over the past 30 years. The additional costs, but the quality of As the Sentencing Project report notes, decline of unions and unionized jobs, education still suff ers. Many researchers “Having established a criminal record the erosion of the minimum wage, de- have shown that levels of poverty in a at an early age, both the likelihood of industrialization, technological change, school have a direct eff ect on all students’ their future involvement in the system globalization, low-road corporate academic success. The average African and the likelihood of receiving harsher strategies—have eroded the middle American student in the Pitt sburgh punishments are increased. . . . If law class across the country as well as in region att ends a school that has a poverty enforcement resources are heavily Pitt sburgh. But there are a number of rate of 65 percent; the average white focused in poor neighborhoods, if the other factors that have been particularly student’s school has a poverty rate public safety strategy consists mostly important in contributing to the high of 28 percent.30 Single female headed of arrest and prosecution, and if there levels of racial disparities in Pitt sburgh’s households are much more vulnerable to are insuffi cient economic, educational, employment patt erns. poverty, which in turn limits opportunity and social service resources, racial and impacts educational att ainment. In disparities in criminal justice outcomes First, jobs have spread outward, making the Pitt sburgh region, two-thirds (62 are inevitable.”35 it more diffi cult for African Americans, percent) of African American families who are concentrated in the urban core, with children are single female-headed Incarceration not only interrupts the to access opportunity. In the 1990s, the households.31 educational and career development city of Pitt sburgh added only 16,000 jobs process, but it generates a signifi cant while the region’s suburbs added 81,000. Criminal justice patt erns also aff ect barrier to employment aft er release, Since 2001, Allegheny County has lost employment rates. Black adults in the because many employers have policies over 24,000 jobs, while suburban Butler Pitt sburgh region are arrested for drug- against hiring ex-off enders. One study County gained 1,800.27 related infractions, property crime, showed that a drug arrest record reduced and violent crime at rates 2 to 2.7 times the chances of being hired for an entry Blacks are heavily concentrated in the higher than their representation in the level job more for black workers (11 urban center with most of them located population. For juvenile arrests, the gap percent) than it did for white workers (6 in the City of Pitt sburgh itself. Blacks is 1.6 to 1.9.32 While not all arrests lead percent). The study found that a white make up 8.1 percent of the regional to incarceration, Bangs and Markowitz ex-off ender and black non-off ender had population, 12.4 percent of Allegheny estimate that the incarceration rate for the same chances of being hired.36 County, and 27.1 percent in Pitt sburgh. blacks in the region is 24 percent higher And within the city itself, blacks than it would be otherwise due to racial Finally, who you are and who you know are heavily concentrated in only six disparities in unemployment.33 still matt ers for gett ing your foot in the neighborhoods. In Allegheny County, door. Racial bias in hiring still exists; the largest concentration of blacks Moreover, minority overrepresentation some studies fi nd it to be a factor in as outside of Pitt sburgh is in inner-ring in the justice system is not merely a many as half the cases of blacks applying suburbs bordering one of those city matt er of blacks committ ing more crimes. for employment.37 As NYU Sociology neighborhoods.28 According to the national non-profi t Professor Deirdre Royster found when organization, The Sentencing Project, a she studied black and white graduates of The eff ects of this spatial mismatch are recent review of 32 state-level studies the same trade school, equally qualifi ed compounded by the higher reliance of concluded that, controlling for other workers who lack access to the existing African Americans on public transit relevant factors, African Americans and social networks and mentors in the fi eld and lower rates of car ownership. In the Latinos are more likely to be incarcerated will have a much more diffi cult time Pitt sburgh MSA, 39 percent of blacks do than whites and, in some jurisdictions, gett ing hired.38 Numerous studies have not own a car compared to 11 percent receive longer sentences, even when shown that minorities are particularly of whites; in the city the fi gures are 49 their rates of crime are the same.34 This underrepresented in the skilled trades, percent and 23 percent. In the region, is especially true of drug off enses. which include the highest quality jobs blacks are more than 5 times more likely According to the U.S. Department of for those without a college degree. This than whites to commute using public Health and Human Services, African is true in Pitt sburgh, where the region transportation; in the city they are more Americans in 2006 represented 12 has a 6 percent black-white “employment than twice as likely to.29 percent of the population in the U.S., gap”39 in the construction fi eld and and 14 percent of all drug users, but Allegheny County has a 9 percent Sprawling development patt erns have accounted for 35 percent of all drug- gap, when comparing the percentage also led to educational inequity for related off enses that year and 53 percent of people employed in the industry those remaining in the urban core: as of all drug convictions. Another study compared to their percentage in the middle class families fl ee the city, the found that minority youth are more general population.40 tax base leaves, property values fall, likely than white youth to be detained, poverty becomes concentrated, and formally charged, transferred to criminal public schools take on more challenged court and incarcerated, even when they

10 Recommendations

o move itself toward a strong, the long-term such as retrofi tt ing Tequitable, and resilient economy, buildings for energy effi ciency Pitt sburgh needs to reduce its racial and developing, building, selling, employment disparity. To achieve this, and installing greener forms of we recommend action in three broad power, transportation, and fuel. areas: With suffi cient training and job ladders, green jobs are accessible 1. Promoting job growth in a diversity to those with modest educational of living-wage sectors; achievement, but can represent a 2. Helping African Americans step out of poverty into a growth overcome systemic barriers to sector that provides living wage jobs. employment; and Firms can cut their costs and expand 3. Generating demand for diverse this sector by reviewing the design employees. of their own plants, buildings, and job sites while investments in Promote Job Growth in a residential weatherization can both Diversity of Living-Wage generate jobs and lower utility bills (and therefore public payments for Sectors utility assistance) for low-income households. To address the black employment gap, it is critical to increase the total number “To move itself of jobs in the Pitt sburgh region, and to Help African Americans focus on sectors of the economy that Overcome Systemic Barriers to toward a strong, are accessible to African Americans. Employment Some areas where investment could equitable, and resilient foster economic growth while • Strengthen coordination among generating living wage employment workforce programs. The Greater opportunities include: Pitt sburgh region has dozens economy, Pitt sburgh of workforce development • Infrastructure spending. As in many programs, which remain somewhat needs to reduce its older regions of the country, fragmented, despite initiatives Pitt sburgh’s physical, transportation, to coordinate eff orts. Refocusing racial employment and communications infrastructure these various programs toward needs signifi cant upgrading. Done common and complementary disparity.” right, such jobs can take advantage goals, improving communication, of likely federal investment in specialization, and focus on living- this area, provide good jobs, and wage sectors where job growth is improve the region’s att ractiveness occurring, can substantially improve to other types of business and the economic prospects of African workers. Improving the public Americans in the region. The Job transportation infrastructure, over Ready Pennsylvania initiative to time, will also help address the promote industry partnerships and spatial mismatch between where align local workforce spending African Americans live and where with state funds provides a good employment is concentrated in the starting point. Some important region. next steps in this area include: strengthening links between these • Green jobs. Related to infrastructure eff orts and regional educational upgrading, green jobs refer to institutions, including both K-14 the work that needs to be done to and higher education institutions: make our economy more viable in link workforce development with

11 11 other important supports, such as part of addressing the black-white especially fathers, to work. First, state transportation assistance and childcare employment gap will require fi nding child support orders are oft en so high availability; emphasize and build real employment for ex-off enders. Literacy, that workers can’t aff ord to work cross-fi rm career ladders; and help skills training, and degree programs because so much money is taken that make the business case for investments for inmates can lower recidivism there is litt le left to live on. Second, in workforce training initiatives. and improve employment prospects. large child support debts oft en build Employer participation in restorative up while a parent is imprisoned, • Link industry partnership programs justice (prison diversion) programs can which further discourages work since between employers, unions, and other also achieve these ends. so much of the take-home pay would workforce representatives with targeted not go to the worker. Third, these recruitment eff orts in African American • Invest in youth workforce and internship workers see litt le reason to work and communities. Working with agencies programs. Real career education with pay child support since almost none from multiple workforce sectors in an emphasis on practical applicability of the money goes directly to their targeted industries, and improving will help prepare young people for children. Federal and state laws need recruitment and support eff orts for careers. Enforcing the Pennsylvania to make child support orders fairer and African American job seekers can Department of Education’s Career and more realistic, reduce arrearages, and help open new pathways to work Employment Standards will provide distribute child support payments to for the unemployed, and help low- schools with valuable resources to families.41 wage workers move to bett er paying accomplish this. The K-12 education opportunities in other industries. The system needs to form strong links Generating Demand for Diverse Labor-Management Clearinghouse with employers so that students will initiative, started by a network of know who the regional employers Employees unions, employers and training are and what training is needed to • Work with regional institutions to develop providers in the Pitt sburgh area, and work for them. Mentorship programs, supplier diversity policies that increase managed by World-Class Industrial such as the Career Literacy for spending with locally-owned, minority- Network, works as a liaison between African American Youth (CLAAY) owned businesses, which are more likely the construction, building services, program developed by the Center for to hire African Americans and women. hospitality, and utilities industries, and a Competitive Workforce at Duquesne Diverting spending to more local provides one valuable example of how University, are a good way for building businesses will also directly improve such systems can be built. such links. the local economy through the local multiplier eff ect. Working to expand • Consider prisoner and ex-off ender • Change child-support policies to remove access to municipal contracting education programs as part of workforce disincentives to work. Child support systems in the region is one important development. Until the disparity in orders and rules create disincentives step in this area. black-white arrest rates disappears, for non-custodial black parents,

12 • Link new developments near African American neighborhoods • Actively recruit from minority communities outside Pitt sburgh with specifi c funding and programs for local fi rst-source hiring, if there are no qualifi ed applicants from the Pitt sburgh area. The workforce training, education youth services, and support services shortage of talent in the Pitt sburgh region is becoming critical for disadvantaged job seekers. The Hill District Community for local employers. Groups like the Hispanic Center, The Benefi t Agreement—signed in August 2008 in relation to World Aff airs Council of Pitt sburgh, and the Pitt sburgh the new Pitt sburgh Penguins’ sports arena, anticipated Council for International Visitors have developed specifi c arena hotel and adjacent redevelopment projects—provides programs to recruit and support diverse immigrants and one example of how such connections between new Latino migrants from other parts of the country. Such eff orts developments and benefi ts for neighboring African American could be broadened to other organizations and strengthened. communities can be built.42 • Improve outreach to black communities. Research shows that • Support entrepreneurship programs and capacity building young black male applicants who have personal contact programs for minority and women’s business enterprises (MBE/ with employers have much more positive outcomes, such MBEs). One promising initiative along these lines is the as gett ing called back for a second interview or gett ing a job Metropolitan Loan Fund of Pitt sburgh, a partnership led by off er. Specifi cally, positive responses for young black male a unit of the Pitt sburgh History and Landmarks Foundation applicants with personal contact with employers have been which has raised at least $1.75 million to increase minority shown to be 5 to 16 times higher than for those with no personal entrepreneurship in the region. The fund provides fl exible contact.43 fi nancing and technical assistance to new and existing businesses in the region. • Promote local hiring. Because African Americans are very tightly clustered residentially, neighborhood institutions can • Identify model corporate and institutional policies that increase petition fi rms doing business in the community to hire local workforce diversity (especially at management levels), and the workers when possible. Local hiring policies carry other hiring of ex-off enders. Modify drug testing policies and advantages, as they reduce transportation challenges for improve outreach eff orts to black communities. In addition, employees, improve the economic conditions over time and employers can eliminate the question about the applicants’ make the neighborhood more appealing to businesses. criminal history on initial application forms to allow ex- off enders to advance further into the interview process. This improves ex-off enders chances to make a good impression on management and allows for the “personal contact” benefi ts that are so important for fi nding and retaining employment. Help regional companies adapt these policies to fi t their own needs.

13 ConclusionRecommendations

Addressing Pitt sburgh’s black unemployment crisis is a necessity, a prerequisite for building the kind of robust and vigorous region that

Pitt sburgh—with its natural, institutional, historical, and business assets—can and should become.

14 Footnotes

1 Mark Muro and others, Investing in a Better Future: A Review of the Fiscal and Competitive Advantages of Smart Growth and Development Patterns (Washington, D.C.: The Brookings Institution, 2004). 2 Richard Voith, “Do Suburbs Need Cities?” Journal of Regional Science Vol. 29, No. 3 (1998): 445–464. 3 Manuel Pastor, Jr., and others, Regions that Work: How Cities and Suburbs Can Grow Together (Minneapolis: University of Minnesota Press, 2000). 4 Randall Eberts, George Erickcek, and Jack Kleinhez, “Dashboard Indicators for the Northeast Ohio Economy,” Working Paper 06-05 (Cleveland, Ohio: Federal Reserve Bank of Cleveland, 2006). 5 Austrian, Ziona, Afi a Yamoah and Iryna Lendel (2008) “Regional Dashboard of Economic Indicators 2008: Comparative Performance of Midwest and Northeast Ohio Metropoli- tan Areas” (Cleveland Ohio: Center for Urban Economic Development, Cleveland State University) 6 Eberts, Erickcek, and Kleinhez, “Dashboard Indicators,” 20. 7 Manuel Pastor and Chris Benner, “Been Down So Long: Weak-Market Cities and Regional Equity,” Retooling for Growth (New York: American Assembly and Columbia Univer- sity, 2008), 100. 8 Richard Florida, Quality of Place & the New Economy: Positioning Pittsburgh to Compete (Pittsburgh, Penn.: Carnegie Mellon University, 2000). 9 Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies (Princeton, N.J.: Princeton University Press: 2007), 10. 10 Sarah Treuhaft, Connecting Working Families to Economic Opportunities in the Philadelphia Region: The Role of Employers (Oakland, Calif. and Philadelphia: PolicyLink and Greater Philadelphia Urban Affairs Coalition, 2007), 4. 11 Bangs and Markowitz, “Black Employment Problems and Solutions,” 3. 12 Center on Race and Social Problems, Pittsburgh’s Racial Demographics, 42. 13 Justice and Mercy, Inc, “Goals and Facts,” www.justicemercy.org/goals-facts.html. 14 Center on Race and Social Problems, Pittsburgh’s Racial Demographics, 42. 15 Dougherty Jr., George (2008) “Fiscal Health of Municipalities in the Pittsburgh Region” Pittsburgh Economic Quarterly, March 2008. 16 From US Census Bureau Census of Local Governments 2002, as reported at: http://www.pittsburghtoday.org 17 The Pittsburgh region is defi ned here as the Pittsburgh metropolitan statistical area (MSA), which includes Allegheny, Beaver, Butler, Fayette, Lawrence, Washington, and West- moreland counties. 18 Unemployment numbers only count people who are actively seeking work. Those who are not employed but are not seeking employment, whether because of the demands of single parenthood, poor health, fi nancial disincentives to work, or obstacles to employment such as a prison record, are considered out of the labor market. 19 Ralph Bangs and Robyn Markowitz, “Black Employment Problems and Solutions” Briefi ng Paper for Sustainable Pittsburgh (Pittsburgh, Penn.: Center on Race and Social Prob- lems, School of Social Work, University of Pittsburgh, November 13, 2008), 1. 20 Center on Race and Social Problems, Pittsburgh’s Racial Demographics: Differences and Disparities (Pittsburgh, Penn.: Center on Race and Social Problems, School of Social Work, University of Pittsburgh, June 2007), 41-42. 21 Ralph Bangs and Robyn Markowitz, “Black Employment Problems and Solutions” Briefi ng Paper for Sustainable Pittsburgh (Pittsburgh, Penn.: Center on Race and Social Prob- lems, School of Social Work, University of Pittsburgh, November 13, 2008), 1. 22 Ibid, 2. 23 Center on Race and Social Problems, Pittsburgh’s Racial Demographics, 46. 24 Center on Race and Social Problems, Pittsburgh’s Racial Demographics, 48. 25 The other cities, most of which are East of the Mississippi River and in the northeast or Midwest, are: Baltimore, Boston, Charlotte, Cincinnati, Cleveland, Denver, Detroit, Indianapolis, Kansas City, Milwaukee, Minneapolis-St. Paul, Philadelphia, Richmond (VA) and St. Louis. See http://www.pittsburghtoday.org 26 Based on Current Employment Statistics data from the Bureau of Labor Statistics, as downloaded from http://www.pittsburghtoday.org/web/downloads/jobs.xls (for Pittsburgh and Benchmark regions) and http://www.bls.gov/ces/ (for national fi gures) on May 21, 2009. 27 powell, john a. “Equity and Regionalism: The Impact of Government Restructuring on Communities of Color in Pittsburgh,” PowerPoint presentation accompanying keynote address to Sustainable Pittsburgh, 19 November 2004 (http://tinyurl.com/powell-equity), slide 13. 28 Center on Race and Social Problems, Pittsburgh’s Racial Demographics, section 1. The Pittsburgh region has very small numbers of Asian and Latino residents (2.7 percent Asian and 1.3 percent Hispanic in the city and even less outside it). 29 Center on Race and Social Problems, Pittsburgh’s Racial Demographics, 50–51. 30 powell, “Equity and Regionalism,” slide 19. 31 Center on Race and Social Problems, Pittsburgh’s Racial Demographics: Differences and Disparities (Pittsburgh, Penn.: Center on Race and Social Problems, School of Social Work, University of Pittsburgh, June 2007), 97. 32 Center on Race and Social Problems, Pittsburgh’s Racial Demographics. Arrest rates from section 7, “Criminal Justice,” 72–84. Tables on race and age distribution (pages 5 and 8) used to calculate that blacks make up 45 percent of the city of Pittsburgh’s juvenile population and 26 percent of its adult population. 33 Bangs and Markowitz, “Black Employment Problems and Solutions,” 3. 34 The Sentencing Project, Reducing Racial Disparity in the Criminal Justice System: A Manual for Practitioners and Policymakers, 2nd ed. (Washington, D.C.: The Sentencing Project, 2008), 6. 35 Ibid. 36 Devah Pager and Bruce Western, Discrimination in Low-Wage Labor Markets: Evidence from an Experimental Audit Study in New York City (Princeton, N.J.: Princeton Uni- versity, 2005). 37 Bangs and Markowitz, “Black Employment Problems and Solutions,” 5. 38 Deirdre A. Royster, Race and the Invisible Hand: How White Networks Exclude Black Men from Blue-Collar Jobs (Berkeley: University of California Press, 2003). 39 Todd Swanstrom, in The Road to Good Jobs: Patterns of Employment in the Construction Industry (St. Louis: Transportation Equity Network, Public Policy Research Center, University of Missouri, September 30, 2008), 5, identifi es a 6 percent gap, which is above the median of just over 4 percent for the top 25 metro areas. 40 Non-Hispanic blacks were 3.4 percent of those employed in Allegheny County in “construction and extractive trades,” compared to their being 12.4 percent of the population. “Table 1: Employment by EEO Occupation Group and Race,” EEO Employment Data for Allegheny County and the Pittsburgh Region (Pittsburgh, Penn.: University Center for Social and Urban Research, University of Pittsburgh, February 2008). 41 Bangs and Markowitz, “Black Employment Problems and Solutions,” 5. 42 See: http://www.communitybenefi ts.org/article.php?id=1281

43 Bangs and Markowitz, “Black Employment Problems and Solutions,” 3.

15 Acknowledgements

Funding for this report was provided by the Center for Inclusion in Healthcare at UPMC, Regional Opportunity Center, Falk Foundation and also Sustainable Pitt sburgh through support by Claude Worthington Benedum Foundation, The Heinz Endowments, and Richard King Mellon Foundation.

The report was writt en by: Chris Benner, University of California Davis and Radhika Fox, PolicyLink with Miriam Axel-Lute. Research assistance was provided by Ralph Bangs and Robyn Markowitz, University of Pitt sburgh. Layout and design by OMNI Associates.

The original draft was presented for discussion at December 11, 2008 Regional Equitable Development Summit. The Summit was presented by some twenty organizations around the Pitt sburgh region that share commitment to increasing employment of communities of color as a material strategy for regional prosperity and competitiveness. These organizations, many of which provided helpful comments during draft ing of the report, include:

African American Chamber of Commerce; Allegheny Conference on Community Development; Allegheny County Department of Human Services; David Berg Center for Ethics and Leadership, University of Pitt sburgh, Katz/CBA School of Business; Center on Race and Social Problems, University of Pitt sburgh; Coro Center for Civic Leadership; Falk Foundation; Graduate School of Public and International Aff airs: Johnson Institute for Responsible Leadership; Graduate School of Public and International Aff airs: Public and Urban Aff airs Program and Innovation Clinic; Heritage Health Foundation, Inc.; Highmark; Local Government Academy; Mon Valley Initiative; POISE Foundation; Regional Opportunity Center; Remaking Cities Institute; School of Social Work at the University of Pitt sburgh; Sustainable Pitt sburgh’s Sustainable Community Development Network; The Black Political Empowerment Project and Coalition Against Violence; Three Rivers Workforce Investment Board; UPMC; Urban League of Pitt sburgh, Inc.; Welcome Center for Immigrants & Internationals; Western Pennsylvania Diversity Initiative; Women and Girls Foundation

For more information on these issues, contact Sustainable Pitt sburgh at (412) 258-6642 or www.sustainablepitt sburgh.org.

Printed on 100% Recycled Postconsumer Paper, Processed Chlorine Free and FSC Certifi ed using vegetable based inks.

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