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Multiple challenges face lowwage workers and low-income families
in Americas new economy. Many of these challenges are the
result of policies and programs purported to be in their benefit.
Rather than identifying far-sighted strategies that build a future
of good jobs, successful industries and strong communities, federal
policy has reverted to a work- first approach that
pushes people in search of skills and job training into jobs at
any cost. Instead of gaining the skills they need to join the
new economy, job seekers are too often being left behind.
Community organizations, not content with this situation, are
organizingoften with unions, congregations, businesses,
local governments, foundations and other alliesto make sure
that the new economy will still be in reach of needy families
and low-wage workers. Together, this body of substantial and growing
work has the potential of bringing thousands of low income people
into high road partnerships and opportunities.
Work First Doesnt Work!
Two separate but related federal laws have established work
first as the nations dominant workforce development
strategy. In 1996 Congress enacted the Personal Responsibility
and Work Opportunity Reconciliation Act (PRWORA), which ended
welfare as we knew it. The new law eliminated the federal entitlement
to cash assistance, established a set of work requirements for
needy families and states, and set up a system of time limits
and sanctions to force people off of welfare rolls.
Studies show that while many former welfare recipients left welfare
due to work or increased earnings, they often do not remain employed.1
As part of its Assessing the New Federalism project,
The Urban Institute found that 69 percent of former welfare recipients
left welfare because they found jobs, although as many as 30 percent
returned to the rolls.2 However, a review of state studies on
employment outcomes reported that those who have left welfare
are not earning enough to raise their income above the poverty
level. In 1997, the poverty threshold for a three-person family
with two dependent children was $12,932, the equivalent of Continued
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