Connecting People to Jobs: The Economics of Job Hubs and Employment Access

July 19th, 2017

Glue Cleveland Tour 229

 By Jason Warner, GOPC Manager of Government Affairs

Recent studies have shown that over the past two decades or more, more land is being used today, expanding the places where jobs are located, but this is occurring without a net increase in population or jobs. This new type of urban sprawl, known as “no-growth sprawl,” has the effect of separating workers from the jobs they need to support themselves and their families. Cleveland is one of those cities where this has been an especially troubling trend. Now, a number of groups are working on solutions to the problem of erasing the disconnect between people and jobs. 

Fund for Our Economic Future (“The Fund”), working in partnership with the Northeast Ohio Areawide Coordinating Agency (NOACA) and Team NEO, has been examining the concentration of jobs hubs in Northeast Ohio and the benefits and challenges they present to the region. Job hubs are specific places of concentrated economic activity in a city or region, with specific focus on where “traded sector” companies are located in the region. Traded sector companies are organizations that can sell their goods and services outside of the local economy.  The Fund examined job concentration centers in the five counties that make up the NOACA area, Cuyahoga, Geauga, Lake, Lorain, and Medina Counties, and identified 23 job hubs. These include obvious locations such as Downtown Cleveland, but others as well, including places are far away from the city as Oberlin to the west and Middlefield to the east.

The disbursement of these jobs hubs is at the center of the research the Fund is currently reviewing. Half of the traded sector employment was found to be in a jobs hub in the region.  These jobs are very much in demand and are needed for the local, state and national economy. Additionally, these are jobs that traditionally provide higher income and greater career opportunity than typical service employment jobs. As these hubs move further and further from population centers, transporting people to the jobs is becoming an increasing problem. A survey conducted  by Team NEO found that, when asked to rate what was the biggest challenge to making new employees successful, the most popular answer among employers was employees showing up to work on time and being ready to work when they got there.

This is not to suggest that job hubs are bad things – as the Fund points out, when job hub are integrated into a regional growth strategy, they can improve economic competitiveness and increase opportunities for residents who are currently disconnected from jobs[i]. The biggest obstacle that job hubs present is ensuring that workers have access to these locations. The current pattern of growth that Northeast Ohio and other regions of the state have experienced is increased costs of both time and money for residents. Research by the Brookings Institute shows that the number of jobs within a typical commuting distance fell by 26 percent between 2000 and 2012, which is among the worse measurable rates in the nation[ii]. Furthermore, the research shows many Ohioans spend a disproportionate amount of their income on transportation as opposed to housing[iii].

Most concerning of all is that the Fund’s research shows that 25 percent of Cleveland residents do not have access either to a vehicle they own or, in increasing numbers, to public transportation[iv]. Hence, the challenge the Fund and others face is finding a solution to connect people who lack transportation to job locations, where employers find that their biggest struggle is finding workers who can get to work on time and be ready to work.

Transit agencies statewide are struggling to meet the ever-increasing demands for public transit. Greater Ohio Policy Center (GOPC) is working with groups like Fund for Our Economic Future to ensure that sufficient funding is available for public transportation and that service is designed to ensure that workers can be connected with jobs. For more resources on GOPC’s work in this area, please see our Transportation Modernization webpage.

 

[i]  Fund for Our Economic Future: Why Job Hubs are Important

[ii]Fund for Our Economic Future: Job Access

[iii] Ibid.

[iv]Governing Magazine: Car Ownership Numbers