Chicago Career Tech

On October 12th, 2009, Mayor Daley announced the creation of TechCorps (later renamed Chicago Career Tech, CCT). On the next day, the Sun-Times reported that “Tech Corps was the most intriguing of three technology initiatives that Daley is asking the private sector to support.” Shortly thereafter, World Business Chicago assumed responsibility, with support from Civic Consulting, for launching Chicago Career Tech.

Background

Nearly 30,000 Chicagoans have lost their jobs in this recession of 2009 and find themselves stuck in a "no-man's land" between government job training services, which are typically aimed at low-wage, low-skill  individuals, and private sector outplacement services, which are typically provided to displaced workers making about $80,000 or more (Exhibit). Many of those in the middle held white collar jobs, were single heads of households, and own (or owned) homes. They have few resources to fall back on as foreclosures loom, and little hope of accessing training that could make them more employable in today's technologically-driven economy.

At the same time, the jobs these workers lost are for the most part gone. Unlike past recessions, where workers were called back after the economy turned around, jobs are being eliminated. Without higher levels of technological competence, these long-working Chicagoans risk joining the ranks of the long-term unemployed. The impact goes beyond the individuals, since these displaced workers also face the highest rates of foreclosures, which are devastating middle class neighborhoods across the city.

Chicago Career Tech is the City's response. CCT is a job retraining path into technology positions for displaced white collar workers. The goal of CCT is also to make Chicago more attractive to prospective employers, by developing a more technologically competent workforce.  As described below, it is a unique program, that could be a model for future efforts across the nation.

Program Overview

Chicago Career Tech targets white-collar industry workers (e.g. administrative assistants, customer service representatives, and bank tellers) with at least a high school diploma who have been recently laid off and could benefit from additional technology training to upgrade their skills. To be elibile, participants need to have been earning 25,000-$75,000 in their previous job.

Unlike academically-based training programs, Chicago Career Tech integrates training with work. Participants work 16 hours per week in targeted community service jobs, plus approximately 32 hours per week in on-the-job technology-related positions in local firms, at no cost to the employer. In addition, participants receive vouchers to participate in technology-based certificate programs relevant to those sectors (e.g., health care and telecom) where market analysis suggests hiring is most likely. Depending on the schedule of the training selected, the program lasts for approximately six months.

Participants receive $400/week in income support during the first 26 weeks of the program. This, plus existing unemployment benefits, allows participants to keep their homes while at the same time upgrading their skills and gaining the experience and networks needed to gain permanent employment.

To fund CCT, the City of Chicago is investing $25 million over the next three years. The City is also pursuing federal matching funds, with the goal of growing the program to serve approximately 10,500 participants over this three-year period.

Private Sector Participation

In the spring of 2009, the Mayor’s Office approached Civic Consulting for help in assessing the feasibility of Chicago Career Tech. With support from Huron Consulting, DeVry, Microsoft, Lee Hecht Harrison, and Challenger, Gray, & Christmas, Civic Consulting staff and our partners analyzed the demographics of recently laid off workers, likely job openings, and opportunities for job retraining. At the same time, Mayer Brown helped to evaluate the legal requirements for allowing participants to receive a stipend without reducing unemployment benefits.

When responsibility for incubation and launch was trasnferred to World Business Chicago, Civic Consulting Principal Marie Lynch moved to WBC to serve as Founding Executive Director. In the meantime, CNA, Microsoft, and other local funders stepped up to provide seed funding that underwrote the first class, which officially launched on May 17, 2010.