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Abstract

This report presents findings from a new, nationally representative survey of private-sector employers, focusing on the labor market for less-skilled workers. We gathered information on employer characteristics, job requirements, wages and benefits, hiring practices, and potential for advancement. The survey focuses on employers' most recently filled jobs that require no more education than a high school degree or GED; we refer to these jobs as noncollege jobs. This group of jobs includes both entry-level jobs—those requiring minimal skills and experience—as well as "next-level" jobs—noncollege jobs demanding higher skill and experience and potentially offering higher wages and benefits.

Introduction

Over the past decade, state and federal welfare policies have increasingly emphasized moving welfare recipients into the work force. Policies limiting the length of time families can remain on welfare, requiring work in exchange for benefits, and sanctioning families for non-compliance all promoted work. These welfare reforms, combined with the strong economy of the 1990s, led to a dramatic decline in the welfare rolls and a dramatic increase in the employment rates of welfare recipients. However, over the past decade, research has shown that the jobs welfare recipients and former recipients move into provide relatively low wages and benefits (Acs and Loprest 2001, 2004 and Loprest and Zedlewski 2006).

As welfare recipients enter the labor market, they join other groups of disadvantaged workers seeking work, including ex-offenders, high-school drop-outs, less-educated young black men, and single mothers who are not receiving welfare. These workers all face similar challenges in the labor market: finding jobs that offer benefits and relatively high wages, retaining jobs once found, and finding opportunities for advancement. Increasingly, policy makers and researchers are addressing some of these issues for less-skilled workers (e.g. Rangarajan and Novak (1999), Andersson, Holzer, and Lane (2005), and ACF’s on-going Employment Retention and Advancement project (Bloom et al. 2005)).

Most past research in this area has focused on the workers themselves—the supply side of the labor market. This is only half the equation. Understanding the hiring practices, job requirements, and workplace policies of employers—the demand side of the labor market—can provide considerable information to policy makers interested in promoting work and advancement among welfare recipients and other less-skilled workers.

To this end, we have fielded a national survey of employers to gather information about employers’ practices and workplace policies relevant for less-skilled workers. Specifically, we obtained information about how employers identified workers for noncollege jobs, the skill demands of these jobs, how they train and compensate the workers that fill these jobs, and the extent to which recent hires into these jobs advance with the firm. In addition, we collected data on the characteristics of the employers as well as of the most recently hired worker.

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The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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