JOHNSTOWN — Appalachians face high rates of joblessness even during periods of low unemployment. But according to a new study, a federal job subsidy program that helps break down barriers to employment could transform the economy in the region.
“Hard-working Americans are the engine of our economy. We want to do well for ourselves and our families, but too many of us who want to work — especially in Appalachian communities that have been left behind — are not able to find a job where we live. And when millions of people can’t find jobs, it holds back our entire economy,” said report co-author Ted Boettner, Senior Researcher with the Ohio River Valley Institute. “We need a federal program that supports working people and businesses — by helping to create good-paying jobs and covering some or all the wages of new hires.”
“Targeted Employment: Reconnecting Appalachia’s Disconnected Workforce” is a new report from ReImagine Appalachia, the Keystone Research Center, and the Ohio River Valley Institute. It examines how to reverse structural problems in the region to build an economy that respects all working people — displaced workers, returning citizens and people with disabilities.
Appalachia has endured high rates of poverty, below-average economic growth, and low labor force participation rates for generations, due largely to its history of resource extraction and exploitation, the collapse of the steel and coal industry and resultant employment loss, and the region’s lack of economic diversity and redevelopment. By improving the skills and experience of potential workers to meet current employer demands in their local labor market — and connecting them with a job, thousands of Appalachians could see their household incomes and quality of life improve.
“We don’t just need more jobs, we need more jobs that boost the economy — by paying people enough to support their families and contribute back to their communities,” said report co-author Claire Kovach, Senior Research Analyst with the Keystone Research Center. “A federal jobs program catered to Appalachia’s unique history and needs could address historic labor force disconnection by leveraging current government resources and programs, and tactfully building new ones. Accessible pathways to employment could also help grow self-esteem and a source of identity, making people feel more connected to their communities.”
The report finds that the prime-age (25 to 54 years-old) employment-to-population ratio — the “gold standard” for evaluating labor force health — of Appalachian Kentucky, Ohio, Pennsylvania and West Virginia is more than four percentage points lower than the US average, highlighting an acute need for policy assistance.
The report also finds that:
In 16 out of 193 Appalachian counties in these states, less than half of prime-age men are employed. (A map in the report provides the prime-age employment rate for each of these 193 counties.)
