The Good Economist 5
“Rustbelt cities are experiencing an uptick, but can the turnaround count on us to provide the workforce?” In this line of questioning, Commerce Director Harold T. Epps foreshadowed the central pillar of a multifaceted strategy for achieving his vision of Philadelphia commerce in 2020 when he joined the Entrepreneurs' Roundtable this month. His strategy is derived from lessons learned over the course of more than 30 years in the private sector.
It was Epps’ significant experience and credibility as a local business leader that led Mayor Jim Kenney to tap his leadership to carry forward Philadelphia’s economic resurgence while bringing equity to the forefront. His time as a local business leader affords Epps a unique understanding of the present challenges inherent in Philadelphia that limit business growth and job creation.
Strengthening the local ecosystem is the heart of his economic development agenda. “Do what you do and do it well. Government does not create jobs but it can create the right ecosystem,” said Epps. Cultivating the right supportive climate hinges on building a talent pipeline - helping local companies and institutions hire from within Philadelphia. Skills attainment and job readiness are the biggest issues confronting employers in the region. And it is for this reason that earlier this year the Commerce Department launched a Talent Development Unit to address the gap between employer workforce needs and the large population of unemployed, under-qualified residents in Philadelphia - with a focus on low-skilled jobs and vocational training.
But here’s the question: What does 2020 hold for the job landscape in the region should this ecosystem become aligned properly? The education and medical sectors currently support more than one-third of the jobs in the region and account for more than half of the jobs generated. Philadelphia features more than 15 hospitals and research universities, such as Drexel, Penn, and Temple, which create jobs for workers of varying skills and education levels - from doctors to custodians. Employment in this sector has shown little signs of decline, and trends project future growth in these core areas. Epps does, however, foresee increased sector diversity as innovation, technology, professional services, and hospitality continue to surge. He pointed to Philadelphia hosting marquee events like the papal visit and the Democratic National Convention as demonstrative of a city on the rise as an attractive destination.
While projections of future growth are promising news, the elephant in the room is that economic and social mobility are at an all-time lows. To alleviate persistent poverty in the region, the development of high-quality career pathways must be an essential component of any job creation strategies. The career pathway approach reorients existing education and workforce services from a myriad of disconnected programs to a structure that focuses on clear transitions, strong supports, and other elements critical to the success of participants.