Nearly half a million Georgians have given up on work

by David Bass | Nov 8, 2022

Nearly half a million Georgians have given up on work

Key Points

Around 454,100 Georgians are missing from the labor force.
The labor force participation rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether.
We need to answer, how to reintegrate these prime-age, work-capable workers back into the labor force?

A new analysis from the Georgia Center for Opportunity shows that around 454,100 Georgians are missing from the labor force. This figure comes even as pundits celebrate a statewide and national unemployment rate that remains at historic lows.

The startling statistic shows a hidden story behind the unemployment rate that reveals deeper cracks in the labor market that will cause problems for years to come, both in the economy and in individuals’ lives. The reason why this matters is not strictly an economic one — we know that these individuals’ giving up on work has profound social, psychological, and relational impacts that extend well beyond the pocketbook.

When individuals are separated from work, they lose more than just monetary compensation or the food, shelter, clothing, and other basics that money can buy. They also face a loss of social connection, meaningful activity, self-respect, and overall purpose.

The numbers

Here’s a quick deep dive into the numbers. The U.S. Bureau of Labor Statistics announced Nov. 4 that the unemployment rate rose to 3.7%, which is a tick higher than the previous low of 3.5% but still at historic lows. Georgia’s unemployment rate stands at 2.7%, 14th best in the nation.

The troubling trend is in the labor force participation rate, however. This rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether. The U.S. labor force participation rate was at 62.2% in October, down from a pre-pandemic rate of 63.4% in February 2020.

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Those detached from work

It’s important to note that the 454,100 figure developed by the GCO team does not include those unable to work, those who were retired, those in school or college full-time, and full-time caregivers for minor children in the home. In other words, that nearly half-million figure is people who are able to work but have simply decided to detach from the labor force altogether, for some other reason.

As for reasons why workers have quit, they are widespread and complex. The better question is how to reintegrate these prime-age, work-capable workers back into the labor force. That is a primary goal of the Georgia Center for Opportunity’s BETTER WORK initiative, currently operating in Gwinnett County and the Columbus areas of Georgia but soon to expand into many additional regions across the state.

We see success stories like that of Eddie, who spent nearly five years on the street, homeless and working odd jobs, before getting connected with BETTER WORK Columbus and partner organizations to find stable housing, food security, and a long-term job. The goal of such programs is to get people into stable, self-supporting work so they can escape poverty and dependency cycles.

The GCO team also works to educate policymakers on the perils of benefits cliffs that keep people trapped in cycles of dependency and prevent them from moving up the economic ladder. People like Frankie, a single mom who turned down a $70,000-a-year job because it would mean losing essential government benefits that she relied on to support her family. The goal here is for policymakers to make wise decisions about the safety net so that we don’t continue to pour funds into a failing system.

Eddie’s story: Moving from homelessness to a housing and a stable job

by David Bass | Oct 20, 2022

Eddie’s story: Moving from homelessness to a housing and a stable job

Key Points

Eddie was homeless and living on the streets.
With a home secured, Eddie’s next step was to find more permanent work
Eddie is excited and proud to have taken steps toward building the life he wants.

“I look forward to moving on up.”

That’s how Eddie Craig describes his current career aspirations. He has light in his eyes and hope in his heart, now that he has a steady job and a place to call home. But life wasn’t always so good for Eddie.

Eddie spent nearly five years on the street, homeless and working odd jobs. He earned money by raking and mowing yards, but it wasn’t enough to pay for a place to live. Every night, he slept in his car.

Then, he came to Home For Good, where he got in touch with an advocate named Ms. Terry. One morning, Ms. Terry located his car, where she woke him and introduced herself.

“I heard her tap on the car window one morning. To be honest with you, I thought it was the police, because they were white,” Eddie says. “But I stepped out of the car and found out her name was Ms. Terry. She got my name and everything.”

For about a month, Ms. Terry worked with Eddie to find affordable housing.

“The next thing I knew, she was calling me to tell me I had my own place,” he says. “We went over there and checked it out. I didn’t care what it looked like. She said, ‘You like it?’ I said, ‘Yeah, I like it, no problem.’”

With his housing secure, Eddie’s next step was to find more permanent work. That’s where BETTER WORK Columbus stepped in. Eddie attended a job fair hosted by BETTER WORK. Eddie met Kristin, who went on to help him complete his hiring paperwork and get his questions answered.

“Between BETTER WORK and Home For Good, getting Eddie into housing and a steady job was a team effort,” Kristin says.

Unfortunately, once Eddie was hired at his first job through BETTER WORK, reliable transportation proved to be an obstacle. His employer changed his schedule to another shift, and he couldn’t get to work. Still, he was determined to find another job, so he reached back out to BETTER WORK for help any time he encountered a roadblock.

“He succeeded because he didn’t give up,” Kristin says.

Fortunately, Eddie was able to get connected at a new job with the Marriott Hotel, where he’s happily employed and thriving. Since Eddie doesn’t have a formal education, Kristin and Ms. Terry helped him complete and submit his application paperwork. Along the way, he also got help obtaining the identifying documentation he needed to get hired — items such as his birth certificate, ID, and Social Security card.

“I had to start from the bottom,” he says.

Eddie credits Kristin for the job and Ms. Terry for his escape from homelessness.

“Thank God for BETTER WORK,” says Eddie. “I’m a living witness this has helped me.”

“Thank God for BETTER WORK,” says Eddie. “I’m a living witness this has helped me.”

Eddie’s success story at BETTER WORK is largely attributed to the fact that he had a genuine desire to earn an honest living for himself. He knew others in the homeless community who didn’t share his drive, but he was determined to build a better future for himself.

“I consider myself physically healthy and mentally healthy,” he says. “As far as a paycheck, everybody loves a paycheck.”

For others like Eddie who are looking for a steady job, he offers reassurance that the team at BETTER WORK will take their interests and strengths into consideration during the job search process.

“BETTER WORK is going to help you find what you love to do,” he says. “It won’t just be digging ditches — unless you like digging ditches.”

Ultimately, Eddie is excited and proud to have taken steps toward building the life he wants. And BETTER WORK is proud to have played a part in his story.

“It’s just good to be in the workforce,” he says.

GCO welcomes Josh Crawford as senior fellow focused on criminal justice reform

by David Bass | Oct 6, 2022

GCO welcomes Josh Crawford as senior fellow focused on criminal justice reform

The Georgia Center for Opportunity (GCO) is excited to announce a new addition to our team! Josh Crawford joins us as senior fellow focused on criminal justice reform.

GCO has long understood the impact the criminal justice system has had on those experiencing the barriers keeping them in poverty. Josh will fill a crucial role in helping add expertise and focus to address these issues.

Josh is a native of Massachusetts. He went to Penn State for his undergraduate degree and then finished law school in Boston. After a brief stint in Sacramento, California, working in the county district attorney’s office, Josh moved to Kentucky to help start the Pegasus Institute, a nonpartisan organization designed to promote opportunity. In addition to serving as executive director of the organization, Josh had a special focus on criminal justice policy.

Josh first encountered GCO during the 2021 State Policy Network annual meeting in Florida. He was impressed with GCO’s work on welfare cliffs and by the principles the organization lives by.

“GCO’s focus on opportunity and upward mobility for the most left-behind members of our communities very much aligns with my own passions,” Josh says. “Additionally, it became clear to me that GCO understands the holistic nature of prosperity and a life well-lived. Prosperity is too-often discussed in merely economic terms. But true prosperity comes from not only financial security but community, family, and the ability to help one’s children lead better and more prosperous lives than the generation before them.”

One of the top policy issues that motivates Josh is public safety: “The freedom to walk to the corner grocery store after dark or to let your kids play outside without fear of victimization is not a universal experience in American cities. In the absence of the most basic assumptions of personal safety, it becomes very hard to encourage economic growth or upward mobility. In fact, multiple studies have found that increases in violent crime depress private sector job growth and opportunity.”

Josh’s role at GCO will focus on criminal justice reforms and the pathways for ex-offenders transitioning out of prison to attach to work to lower their risk of recidivism.

“Reversing the trend of increased violence in American cities will require a combination of policy seriousness and political courage. It is my hope to bring the existing work I’m doing to GCO and expand upon it,” Josh added. “This means focusing attention on everything from policing and sentencing to the physical environment of a city and re-entry policy. The first city and state that gets these policy areas right will see not only huge public safety gains but will become the 21stt century model. Together we can make that a reality.”

Stress cracks in the labor market

by David Bass | Sep 26, 2022

Stress cracks in the labor market

Key Points

There are more jobs available in America than ever before.
There are more people NOT working in America than ever before.
At Georgia Center for Opportunity, we have created a two-step process to create meaningful, self-supportive work.

“Never has work been so readily available in modern America; never have so many been uninterested in taking it.”

That’s a key point made by social scientist Nicholas Eberstadt in a new column for The Wall Street Journal. Eberstadt points out that even in an environment with historically low unemployment, the truth is that millions of workers are missing from the labor force.

“We now face an unprecedented peacetime labor shortage, with employers practically begging for workers, while vast numbers of grown men and women sit on the sidelines of the economy—even though job applicants have more bargaining power in the ‘Great Resignation’ than at any time in recent history,” he writes.

Eberstadt points to the unprecedented federal government response to the pandemic as a key driver of the current quandary: stimulus payments, expanded child tax credits, and heightened unemployment benefits, to name a few.

The problems were evident before the pandemic but became worse after. “The current manpower shortage highlights the new face of the flight from work in modern America,” Eberstadt writes. “With pre-Covid rates of workforce participation, almost three million more men and women would be in our labor force today. Prime-age men account for only a small share of this shortfall: Half or more of the gap is owing to men and women 55 and older no longer working.”

Eberstadt has also written quite a bit on how people are spending their time as non-workers:

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020—possibly a new record in the inactivity olympics and nearly 300 hours more than a typical fulltime job requires in year. Prime-age women who are both work-free and child-free exhibit similar traits—especially those neither employed nor in education or training (called NEETs by economists). In 2020 they reportedly devoted even less time to household chores, taking care of other household members or getting out of the house than prime male labor-force dropouts—and allocated almost 11.5 hours a day to “personal time” (mainly sleep), more than any other group.”

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020.”

So, what’s the bottom-line conclusion of all of this? Here at the Georgia Center for Opportunity, we are striving to create a culture that values work and helps all people — particularly disadvantaged populations — find meaningful, self-supporting work. There is a two-step process here:

Policy solutions

A big problem standing in the way is a failing welfare system, one that traps people instead of serving them. Even if well-intentioned, the existing collection of complex and inefficient welfare programs is vast, disconnected, and dehumanizing. Tragically, it deprives people of the hope and dignity that comes with steady work and the government’s response to the pandemic only made these problems worse. That is why GCO advocates for welfare reform that streamlines and simplifies the safety net, while doing away with benefit cliffs that punish people for earning more and climbing the economic ladder.

Community solutions

The solutions don’t stop at policy reform, however. We also need on-the-ground help. That’s what GCO’s BETTER WORK program is all about. Now operating in Gwinnett County and Columbus — but soon spreading to other areas of the state — BETTER WORK is about collaboration between key stakeholders in our communities to help people find work.

The mission of BETTER WORK has never been more important than it is today. As we continue to emerge from the economic fallout of the COVID-19 pandemic, the labor market will keep shifting in significant ways. No matter what that looks like, BETTER WORK’s approach and mission will play an important role.

Q&A: Andre and Takara explain how GCO’s Elevate class changed their relationship

by David Bass | Sep 12, 2022

Elevate Your Relationship with (1300 × 600 px)

Q&A: Andre and Takara explain how GCO’s Elevate class changed their relationship

Key Points

Andre and Takara Knighton have been married for 15 years.
The couple was facing some challenges in their relationship, and Elevate turned out to be just what they needed!
Learn more about Elevate at https://foropportunity.org/elevate/

Andre and Takara Knighton stumbled across the Georgia Center for Opportunity’s Elevate relationship enrichment class purely by accident. But it was a wonderful accident! The couple was facing some challenges in their relationship, and Elevate turned out to be just what they needed. Check out this Q&A for more.

Q: Please introduce yourselves – your family background, kids, jobs, school, work, where you live, etc.

We are Andre and Takara Knighton. We have been married for 15 years and produced two beautiful and funny children. We currently live in Georgia but have lived in other states before deciding to reside here. We both have done social work in different fields, but after the pandemic we decided to focus more on our multimedia company, Vizion Image Media.

Q: How did you first learn about Elevate?

Takara learned about the program randomly at a county office. She was registering the car tags and while she was waiting saw a flier for Elevate. So she went home and started researching more about it.

Q: What prompted you to want to attend Elevate?

We were in a tight spot in our relationship. We had been allowing little things to bother us and had been a little distant from one another. We kind of lost ourselves in just life and slowly began to lose our friendship. So when Takara saw this flier and did her research on the program, we decided to just go for it. We went with expectations to try something new and honestly have set dates for ourselves that would also be a building block for our relationship.

To learn more about Elevate and how you can participate, visit:

foropportunity.org/elevate

Q: What was your experience like in the class? What did you learn?

The class was eye opening. We saw couples who had been married for 20 years to newly married couples that also had the same stories. It was encouraging to know that there are couples—especially couples married longer than us—that just needed a little extra help to learn to reconnect. We learned how to look at each other again, but in a new light. The major thing we learned is how to stop and refocus our negative thoughts back to the positive. Sometimes when you have been with someone for so long you tend to focus on all the negative attributes of the person instead of the good qualities that brought you two together. Also, you forget to tell your spouse how much they mean to you and remind them of why you feel in love. Now we are telling each other almost two to three times a week what we appreciate about one another.

Q: Of the seven core relationship skills and qualities for success, which one did you find most impactful for your own relationship?

Definitely “Enlighten.” We weren’t dealing with each other in a healthy manner because we only focused on the past. We forgot that people can change and likes and dislikes can change. We still looked at each other as the 20-somethings we used to be. So we had to become enlightened about who our spouse was again. We had to discover our passions and loves separately and apart. We had to be more sensitive to each other’s feelings and listen. We had to rediscover “us.”

Q: What are some reasons you can think of for other couples to attend Elevate?

We believe that everyone should experience this class because it does open your eyes to some questions that you may never have thought to talk about before. You can be married for two years or 25 years and still never think to ask your partner some of these questions. This class allows you to explore a new part of you, and the you in your relationship. People change over time and so does your relationship. So instead of ditching it because you changed, learn how to deal with the new you in your relationship and discover how you both can make the changes work.

Q: What are your future goals and plans?

We plan on dating each other more and trying new things together. We definitely want to travel overseas again and take our kids on their first overseas adventure so they can learn about life and other cultures.