The WorkPlace and Citi Community Development to Expand Platform to Employment Program for Connecticut’s Long-Term Unemployed

Today, The WorkPlace and Citi Community Development announced a new collaboration to expand the successful Platform to Employment (P2E) program by providing those experiencing long-term unemployment with financial counseling and credit rebuilding assistance. P2E clients will now not only receive job readiness skills and enter a system to get matched with local career opportunities, but with guidance from the nationally recognized Housing Development Fund (HDF), they will also improve their household money management skills and begin to rebuild their credit during a time when many lack regular income and are financially overextended.

There is a critical need to restore the long-term unemployed to the labor force. The WorkPlace notes that, during the period from May 2010 through October 2011, 11,338 people in Southwest Connecticut exhausted the maximum 99 weeks of unemployment benefits. By January 2012, the total is expected to increase to 13,000. These residents face daunting challenges, with evidence showing that prospective employers are often unwilling to hire workers who have been unemployed for an extended time. That stigma is often compounded by atrophy of job skills and a collapse of confidence.

In addition, the long-term unemployed frequently grapple with the deterioration of their finances. Many prospective employers review credit reports to qualify candidates, but the long-term unemployed often have damaged credit due to the length of time they have been out of the workforce and inadequate restructuring of finances to account for drastically reduced incomes. Many lack the financial capacity to retain assets, including homes or cars needed to go to work, or to rebuild their credit scores.

The WorkPlace’s new collaboration with Citi addresses this need.

"Today’s challenging economic climate presents a need for innovative solutions to assist those most in need,” said U.S. Representative Jim Himes (CT-4). "The WorkPlace, Citi, and HDF are providing a vitally important service to Connecticut residents who are most at risk of slipping out of the financial mainstream. It is a great example of the business and nonprofit sectors working together for the greater good.”

P2E provides a customized system of job readiness training and access to potential jobs with local employers in a range of industries. Now those services will be complemented by financial recovery training and coaching for P2E participants, funded by a $100,000 grant from Citi Community Development and provided by HDF, a Stamford-based organization with extensive experience in providing free, multilingual financial counseling for at-risk families.

"Platform to Employment is the only project of its kind in the nation and it already has shown promising results in placing participants in jobs,” said Joe Carbone, President & CEO of The WorkPlace. "By adding the coaching and credit-building that Citi’s grant is enabling, we can dramatically improve participants’ likelihood of financial success and long-term stability.”

"With this program, we can enable unemployed individuals to get back on track by rebuilding their credit and, more importantly, their lives and their pride,” said Lily Lopez, Connecticut State Director for Citi Community Development. "We are very pleased to partner with The WorkPlace, which has demonstrated tremendous leadership and impact, to respond in a holistic way to the pressing national issue of long-term employment.”

Citi’s funding also includes support for study and documentation of the newly-expanded P2E program, so that its holistic approach can be scaled and replicated. The program will be evaluated by the Harvard Business School Club of Connecticut Community Partners, which will examine a number of variables to determine whether P2E is a factor in reducing payments made by government and social services agencies to support the community "safety net.” In addition, the study will follow participants for up to six months after they secure employment, to validate the impact of the program on their overall financial health, including rebuilding credit; reducing credit card rates; timely payments; and establishing and maintaining a realistic budget and a savings plan.

Currently, P2E enrolls 100 people at a time in five cohorts of 20, each of whom attend five weeks of mandatory workshops on resume writing, interview preparation, self-marketing and other skills. Participants are then matched with employers who have job openings. The program allows for a trial period by providing eight weeks of P2E-subsidized employment, with the expectation that employers will permanently hire worthy participants to their own payrolls. In the program’s first two graduating cohorts, 34% of participants were placed in jobs, and the remaining individuals all have been interviewed. The organization expects to run the program twice each year, to serve a total of 600 people over three years.

"This collaboration draws on the complementary strengths of nonprofit and private sector organizations, which is a proven formula for economic empowerment,” said Joan Carty, President & CEO of Housing Development Fund. "We are pleased to work with The WorkPlace and to deepen our partnership with Citi by participating in this important program.”

HDF is a HUD-certified financial counseling agency and is also a participant in the national demonstration project by NeighborWorks and the Citi Foundation to expand and strengthen financial capability services for low-income Americans. The organization also finances affordable housing, manages a loan fund and operates various down payment assistance programs for low- and moderate-income households.

About The WorkPlace

The WorkPlace conducts comprehensive planning, and coordinates regional workforce development policy and programs to prepare people for careers while strengthening the workforce for employers. As national leader in the field, The WorkPlace regularly shares ideas and best practices with lawmakers, foundations, think tanks and other workforce development organizations around the country. For more information, visit www.workplace.org.

About Citi Community Development

Citi Community Development (CCD) is leading Citi’s commitment to achieve economic empowerment and growth for underserved individuals, families and communities by expanding access to financial products and services, and building sustainable business solutions and innovative partnerships. Our focus areas include: commercial and philanthropic funding; innovative financial products and services; and collaborations with institutions that expand access to financial products and services for low-income and underserved communities. For more information, visit www.citicommunitydevelopment.com.

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