CREATING JOBS CREATING JOBS IN AMERICA’S IN AMERICA’S

WEAK MARKET WEAK MARKET CITIESCITIES

BACKGROUNDBACKGROUND 60% of all jobs in America are in suburbs, 60% of all jobs in America are in suburbs,

not central cities.not central cities. National government has virtually no National government has virtually no

place-based urban or industrial policyplace-based urban or industrial policy Action/innovation to create jobs is at the Action/innovation to create jobs is at the

city and state levelcity and state level No consistent prevailing theory of job No consistent prevailing theory of job

creation and economic development.creation and economic development. Some limited instances of transit systems Some limited instances of transit systems

improvementsimprovements

RECURRING THEMES IN RECURRING THEMES IN CREATING JOBS IN AMERICAN CREATING JOBS IN AMERICAN

CITIESCITIES Strengthen retail/office/residential Strengthen retail/office/residential

occupancy in center citiesoccupancy in center cities

Strengthen tourism via hotels, Strengthen tourism via hotels, convention centers, sports facilities, convention centers, sports facilities, etc.etc.

Chasing/recruiting businesses via Chasing/recruiting businesses via government incentives/subsidiesgovernment incentives/subsidies

BEST PERFORMING JOB BEST PERFORMING JOB GROWTH CITIESGROWTH CITIES

Strong services sector, especially Strong services sector, especially business and professional servicesbusiness and professional services

Robust tourismRobust tourism Population growth that leads to home Population growth that leads to home

construction and related consumer construction and related consumer industriesindustries

Retirees, leading to increased health Retirees, leading to increased health care servicescare services

KEY JOB GAINS IN KEY JOB GAINS IN METROPOLITAN AREAS, 2003-METROPOLITAN AREAS, 2003-

20052005

Administrative and support servicesAdministrative and support services680,000680,000

Health careHealth care 620,000620,000 Accommodations and food servicesAccommodations and food services

546,000546,000 ConstructionConstruction 534,000534,000 Professional, scientificProfessional, scientific 344,000344,000 Retail tradeRetail trade 279,000279,000 State/local governmentState/local government 264,000264,000 EducationEducation 148,000148,000

Job Growth Strategy: Job Growth Strategy: LandLand

Land acquisition and reuse Land acquisition and reuse (regeneration)(regeneration)

May be losing public taking powersMay be losing public taking powers Building from strength and anchors Building from strength and anchors

(universities, hospitals, etc)(universities, hospitals, etc) Locally crafted, with little national Locally crafted, with little national

support and limited state supportsupport and limited state support Brownfields clean up and reuseBrownfields clean up and reuse Smart growth constraints to locate jobs Smart growth constraints to locate jobs

in central cities and older suburbsin central cities and older suburbs

JOB GROWTH STRATEGY: LABORJOB GROWTH STRATEGY: LABOR

School improvement, and growth of School improvement, and growth of charter schoolscharter schools

Job training via “workforce Job training via “workforce intermediaries”intermediaries”

National funds for job trainingNational funds for job training Living wage approaches as a double-Living wage approaches as a double-

edged swordedged sword

JOB GROWTH STRATEGY: JOB GROWTH STRATEGY: CAPITALCAPITAL

Economic incentives to businessEconomic incentives to business National tax credits (New Market Tax National tax credits (New Market Tax

Credits)Credits) National small business loan National small business loan

guaranteesguarantees Creative local financing (TIFs, BIDs, Creative local financing (TIFs, BIDs,

etc.)etc.) Community development venture Community development venture

capitalcapital

JOB GROWTH STRATEGY: JOB GROWTH STRATEGY: ENTERPRISEENTERPRISE

““Creative class”: Strategy or fad?Creative class”: Strategy or fad? Creating favorable business climatesCreating favorable business climates Overcoming demise of industrial Overcoming demise of industrial

corporation leadership in weak-corporation leadership in weak-market cities via new civic market cities via new civic organizationsorganizations

JOB GROWTH JOB GROWTH CONCEPTSCONCEPTS

Efforts/struggles to reposition local Efforts/struggles to reposition local economieseconomies

Connecting central city work with Connecting central city work with metro area/regional approachesmetro area/regional approaches

Some emphasis on Inner City job Some emphasis on Inner City job creation and analysiscreation and analysis

Purchasing power analysis.Purchasing power analysis.

JOB GROWTH STRATEGIES: JOB GROWTH STRATEGIES: CONCLUSIONSCONCLUSIONS

Job creation is an art, not a science, and Job creation is an art, not a science, and a great deal is still being learned about a great deal is still being learned about how to accomplish job creation in weak how to accomplish job creation in weak market cities.market cities.

Job creation and workforce development Job creation and workforce development are two complementary parts of a are two complementary parts of a strategystrategy

Entrepreneurship must be enhanced in Entrepreneurship must be enhanced in weak market places as a strategy to weak market places as a strategy to create jobs.create jobs.