Job Creation & Job Readiness

The District can, we believe, do a better job in creating jobs and in helping District residents get ready to fill existing and new jobs. As Mayor Gray has noted, accelerating job creation and job readiness would help reduce unemployment rates that, especially in our most under-resourced wards, are approaching 30%.

According to the figures provided by the DC Department of Employment Services (DOES) and the U.S. Department of Labor, the current number of jobs in the District of Columbia is 728,301. Of those, only 41% (298,100) are held by District residents, while 59% (430,201) are held by residents of surrounding jurisdictions. Similarly troubling is the number of new jobs created between November and December 2010 (23,901 new jobs), only 20% (4,800) of which went to District residents, further worsening the gap. Where previously, the District had maintained a healthy construction industry, construction has slowed and growth has shifted into professional and business services jobs for which a large number of District residents are unprepared.

To help reduce DC’s unemployment rate, the Federal City Council plans to focus on increasing total jobs by supporting new industries and enhancing adult literacy and job readiness of DC residents through the community college and other workforce development initiatives.

Attracting new industries

The Federal City Council anticipates working with District leaders to identify and support new initiatives to attract new industries to the city and broaden the District’s private sector employment base. This is an effort which we believe would attract a number of our members to be engaged. Where appropriate, we would also work with local universities, several of which have been active in this area. One example of a growing industry segment would be health information technology (IT) and research. A recent study predicts that the health IT and research industry segment could add 1,700 to 4,900 jobs to the District by 2012. This figure is based on 1,050 to 3,000 direct jobs, 300 to 800 indirect jobs from supporting services, and 350 to 1,100 indirect jobs created from induced spending. In addition to focusing on identifying new industries as a job creation strategy, the Federal City Council will work aggressively with local government to leverage opportunities created by expansion and relocation of federal agencies into transitioning communities outside the federal government downtown footprint.

One such opportunity is the 10 acres adjacent to the new Department of Homeland Security (DHS) in Ward 8. The Federal City Council could work with the DC Deputy Mayor for Economic Development to help develop a strategy to support business hubs that would support services to DHS. This strategy should be modeled after the U.S. Department of Transportation which relocated to the Navy Yard in Southeast DC or after the area north of Massachusetts Ave (NoMa) where the Internal Revenue Service, the Office of Personal Management, and other federal entities have begun to lease space. These are specific areas that are targeted not just for commercial and residential development, but for long-term job creation.

To drive this effort forward, Mayor Vincent Gray plans to establish at least five industry groups or councils. These groups will bring together business leaders from major companies of emerging industries in and around the city. These groups will engage private and public sectors leaders to identify job growth opportunities, measures the DC government can take to promote job growth and commitments they can make. The FCC can help identify leaders to serve on these groups and help support their operation.

Proposed Outcomes:

Attraction of new industries to the District that will result in job creation
New opportunities for the Community College and other DC universities to develop graduates trained for the jobs created
Creation of “business hubs” that provide a direct link between job market and unemployed residents.

Improving adult literacy and job readiness

In order for DC residents to compete for jobs both in and outside of the District, residents must acquire needed skills and certifications. The FCC will work with DC officials to focus on and develop strategies for educating DC residents that need literacy and job readiness skills. The goal is not to just focused on the DOES but to include private schools, the summer youth program, experts on adult literacy within DCPS, and the Community College of the District of Columbia (CCDC). CCDC has the potential to be a key entity in preparing residents for the workforce. Already CCDC has seen enrollment surpass that of the University of the District of Columbia, under whose umbrella CCDC resides. Going forward, CCDC will benefit from greater autonomy and the ability to focus resources on helping prepare and align its graduates to the needs of the job market. Two years ago, the Federal City Council contributed $25,000 for the initial feasibility study for the creation of the Community College. The next phase will be to assist CCDC in obtaining independence from UDC and strengthening its role in developing an able and ready workforce.

Proposed Outcomes:

A strong and sustainable community college
Effective two-year degree programs that prepare DC residents for the job market
Opportunities to help more DC residents prepare for four-year programs in area universities.