The Department of Labor’s most recent job figures revealed that the nation’s unemployment rate remained unchanged for the second month in a row. While there were a little more than 100,000 jobs added last month, it was not significant enough to change the percentage, which hovers now just above 9%. Latinos, with an 11.3% unemployment rate, have been hit especially hard by this crisis. It has also exacerbated the child poverty rate, and with more than 30% of Latino children now living in poverty, this percentage is the highest it has been since 1997. Latinos are the fastest-growing segment of both the labor force and the population overall, and there will be serious implications for us all if this trend continues. Simply put, the success of the entire American middle class in this country will rely upon the implementation of policies that are effective at creating jobs in Latino communities.
One such policy is Project Rebuild, which is part of President Obama’s “American Jobs Act of 2011.” It is also the focus of our latest Monthly Latino Employment Report. The goal of Project Rebuild is to restore and rehabilitate homes and businesses in neighborhoods that have numerous vacancies and foreclosed properties. If implemented correctly, Project Rebuild could be the catalyst for more hires in the construction industry, which has a heavy Latino presence. The concept behind Project Rebuild, as outlined in the report, is to “help heal the double blow the housing crisis dealt Latinos, which has resulted in millions of Latino homeowners losing their homes to foreclosures and millions of construction workers, about a quarter of them Latino, losing their jobs.”
From the Monthly Latino Employment Report:
Realizing the full job creation potential of Project Rebuild will require strengthening or clarifying several provisions of the program. As policymakers consider the “American Jobs Act of 2011,” they should take into account these broad recommendations:Include unemployment in the definition of needy areas. While the link between joblessness and foreclosure is clear, not all geographic areas with high rates of property abandonment and foreclosure overlap with areas of high unemployment. Still, the need for public property maintenance and affordable housing creates employment opportunities in areas where foreclosure rates are relatively stable but unemployment is high. Local unemployment that exceeds state or national rates should be considered an important factor in how Project Rebuild funds are awarded.
Link job creation to job training. As the bill is currently written, entities will have to demonstrate how they will prioritize job creation in their activities. HUD should give preference to applicants that partner with nonprofit, community-based workforce development organizations to ensure that workers are prepared to meet the demands of the jobs that will be created. Training programs that are aligned with the needs of specific projects will enhance the quality of work performed and help projects meet their deadlines.
Prioritize local hiring. Recipients of certain types of HUD financial assistance are required to comply with Section 3 of the Housing and Urban Development Act of 1968. Section 3 requires grantees to strive to train and employ residents of public housing or individuals with low or very low income in the surrounding area of a HUD-funded project. Project Rebuild is an opportunity to strengthen compliance with Section 3 to ensure that high-need individuals are connected to job opportunities.
Include assurances of job quality. Grantees and contractors under Project Rebuild should comply with responsible contractor standards, such as offering full-time, full-year employment and compensation at or above that which was paid to employees who performed similar work in the past. In the case of construction jobs, the prevailing wage for laborers and other workers should be paid in accordance with federal law. Given the inherent risks involved in labor-intensive occupations, Project Rebuild entities should be monitored closely for compliance with occupational health and safety laws and regulations designed to protect workers on the job.
For more about our latest Latino Employment Report, click here.