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MISALIGNED OPPORTUNITIES


HOW RACIAL INEQUITIES CREATE SKILLS GAPS & COVID’S IMPACT ON MINORITY
COMMUNITIES IN THE NORTHEAST OHIO REGION.


PREPARED BY




IN PARTNERSHIP WITH




WITH GENEROUS SUPPORT FROM




FROM TEAM NEO

Team NEO, as a business and economic development organization, is focused on
building a vibrant economy for our region and is committed to ensuring that all
members of our community have opportunities to participate in our prosperity.


It is clear, however, from both personal accounts of many in our community and
through our robust analysis of data, that economic success has not been
equitable and opportunities to prosper have not been equal for all members of
our community, particularly people of color. Team NEO understands that the
socioeconomic inequities that exist are systemic and that the solutions to this
problem need to be systemic as well. We also know that we have a role to play in
better understanding the challenges and finding or supporting solutions to
address them.


While Team NEO has implemented a number of strategies that support diversity and
inclusion, we – like most organizations – are on a journey to better understand
the issue and the impact our current work has on diversity and inclusion, and to
determine what more we can do to effect change. Team NEO is committed to doing
our part to help understand the challenge and shape solutions that will have a
positive effect on both personal and regional economic growth.


The Aligning Opportunities report – and specifically, this Misaligned
Opportunities: How Racial Inequities Lead to Skills Gaps in Northeast Ohio
report – is just one example of Team NEO’s efforts.


Aligning Opportunities, funded with generous support from Delta Dental, seeks to
help uncover the gap between the region’s in-demand jobs and the available
workforce, and to work toward bridging that gap. As Team NEO’s Aligning
Opportunities research progressed over the past four years, we increasingly saw
a need to better quantify the talent gap in communities of color and distressed
communities.


The 2020 Misaligned Opportunities report includes a robust dataset aimed at
better defining the workforce participation disparities in Northeast Ohio,
particularly among persons of color, using metrics
like educational attainment, entrepreneurship, racial proportionality of
in-demand occupations and more. The following pages provide an initial look at
those metrics.


We hope this report can be used as a starting point to inform local
conversations on how racial
inequities lead to talent gaps in Northeast Ohio, and to influence solutions
that we, as a region, can implement to effect positive change.

Sincerely,



Bill Koehler
Chief Executive Officer, Team NEO



The pandemic magnified what we already knew to be true: inequities exist in
access to health care for
minority communities, as people of color were disproportionately affected by the
virus and its effects.
This problem, along with access to secure employment and upward mobility in the
workforce, has been unearthed over the past year. Delta Dental believes in
building healthy, smart, vibrant communities for all and remains committed to
fostering an organizational culture that celebrates similarities and
differences, and exemplifies inclusion, equity and authenticity. We know
disparities exist, opinions differ and much work still needs to be done to
facilitate meaningful change.


OVERVIEW

In August 2020, Team NEO released the first edition of Misaligned Opportunities.
Our goal was to highlight data showing the gap in economic outcomes between
communities of color* and white communities in the Northeast Ohio region.
Misaligned Opportunities illustrated the unequal footing on which communities of
color stand with regard to historic disinvestment, restricted access to business
resources, and under-representation in high-paying, high-opportunity jobs.

With this year’s edition of Misaligned Opportunities, we leverage new data to
understand further COVID’s effects on communities of color. We show where
minority talent is participating in the workforce against the backdrop of
in-demand occupations, and how talent strategies throughout the region support
the advancement of minorities.

Last year, Misaligned Opportunities included key statistics demonstrating the
disparity between white and minority populations in economic outcomes. We found
that minority groups were underrepresented along each metric. In the United
States, minority residents make up more than 40% of the total population and
more than 37% of the overall workforce. In the Northeast Ohio Region, those
numbers are closer to 23% and 19% respectively.

Historically, our region’s population has been predominately white. However,
minority populations have steadily grown in Northeast Ohio in the past decade:
Asian, Hispanic, and American Indian populations have all increased by more than
30%. Still, the overall share of these minority populations is small in
comparison to our region’s white population. Black (14%), Hispanic (5%) Asian
(2%), and others represent lower percentages of the overall Northeast Ohio
population. Other key observations between this year’s data and last year’s data
include an increase in the median household income for white, Black, and
Hispanic residents and a Hispanic unemployment rate decrease.


MEDIAN HOUSEHOLD INCOME



SOURCE: American Community Survey 2015-2019 Estimates


POPULATION VS. EMPLOYMENT IN NORTHEAST OHIO



SOURCE: EMSI


PERCENTAGE OF POPULATION WITH A BACHELOR’S DEGREE OR ABOVE



SOURCE: American Community Survey 2015-2019 Estimates

*For the purpose of this report, “Communities of Color” are defined as census
tracts in which 51% or more of the population are people of color.


UNEMPLOYMENT RATE




OCCUPATION BY RACE



  * American Indian and Alaska Native, Native Hawaiian and Other Pacific
Islander,
Some Other Race and Two or More Races
** Food preparation and serving, personal care and service, health care support,
building and grounds cleaning and maintenance, and protective services.

SOURCE: American Community Survey 2015-2019 Estimates




BLACK UNEMPLOYMENT WAS IMPACTED TWICE AS MUCH AS WHITE UNEMPLOYMENT FROM COVID



For the purpose of this report, “Communities of Color” are defined as census
tracts in which 51% or more of the population are people of color.


COVID

Nationally, data showed in early and mid-2020 that people of color were more
likely to become infected with COVID, and more likely to die once infected, with
African American rates of infection over 1.5 times their share of the
population. In addition, Hispanic infection and death rates are even higher, as
are American Indian/Alaskan rates. On top of this alarming statistic,
quarantines, business closures, and layoffs contributed to job insecurity for
minorities. Unemployment rates among all races have been volatile, but for
communities and people of color, the effects have been extreme. According to
data from the Economic Policy Institute (EPI), Ohio workers saw an overall
unemployment rate of 8.8%, with white unemployment hovering around 7% and Black
unemployment exceeding 14%.

The pandemic revealed minority workers’ and residents’ struggle with unequal
access to critical resources, including internet access. According to the 2019
American Community Survey (ACS), almost 20% of all Northeast Ohio households –
including over 100,000 Northeast Ohio minority residents – lack internet access.
To help move the needle, the Ohio State Budget for fiscal year 2022 and 2023
includes a $250 million expansion investment for Ohio’s access to broadband
through grants to internet service providers to expand networks and build more
extensive broadband infrastructure.



1 Daniel Wood, As Pandemic Deaths Add Up, Racial Disparities Persist – And In
Some Cases Worsen, NPR, September 2020.

2 Centers for Disease Control and Preventions, Risk for COVID-19 Infection,
Hospitalization,
and Death By Race/Ethnicity, June, 2021


EDUCATIONAL ATTAINMENT

Educational attainment is a pivotal first step toward a successful career. In
addition, specific programs provide
pathways to higher-wage occupations and career advancement. Last year’s
Misaligned Opportunities report demonstrated the underrepresentation of minority
groups in postsecondary program completions such as the award of a degree,
certificate, or other diploma. This year’s analysis shows subtle changes in the
percentages of 2018 to 2019 minority graduates.

• White and Asian student completions increased 2% while Hispanic and Black
students decreased by 1% and 4% respectively.

• In health care completions, Hispanic and Asian students gained 1% while Black
students decreased by 1%.

• In manufacturing completions, white students decreased by 1%, Hispanic and
Asian students remained the same, and Black graduations decreased by 6%.
Students with Other racial classifications jumped by 7%.

• In computer & IT completions, white graduations fell a percent point while
Asian, Black, and Hispanic graduates rose by 1 or more percentage points.

As a region, Northeast Ohio has an opportunity to encourage emerging and
transitioning minority talent to consider careers in health care, manufacturing,
and IT. While future graduation completions will be affected by COVID’s
disruptions, graduation trends will remain a primary consideration as the region
advocates for more diversity in occupations to drive racial equity, innovation,
and advancement of our minority communities.


COMBINED IN-DEMAND POSTSECONDARY COMPLETIONS* BY RACE




POSTSECONDARY COMPLETIONS* BY RACE


MANUFACTURING




HEALTH CARE




COMPUTER & IT



 * Postsecondary completions is a program resulting in a degree,
certificate or other diploma.
** Persons of two or more races or whose race/ethnicity is unknown,
or nonresidents of the United States

SOURCE: Integrated Postsecondary Education Data System (IPEDS), 2018


CASE STUDIES


HIGHER-EDUCATION INSTITUTIONS, BUSINESSES AND COMMUNITY ORGANIZATIONS ARE COMING
TOGETHER ON PROGRAMS DESIGNED TO BOOST EDUCATIONAL ATTAINMENT AMONG
UNDERREPRESENTED GROUPS. THE FOLLOWING EFFORTS EXEMPLIFY THEIR COMMITMENT.

IBM & Youngstown State University

YSU IT Workforce Accelerator, in partnership with IBM, has moved to a
cohort-based model working with several community-based organizations, career
and technical centers and employers throughout the region. This cohort model has
helped to increase engagement and completions of training programs.



To further advance opportunities for their participants, students who complete
the IBM IT Pre-apprenticeship programs and enroll at YSU will now be eligible to
receive credit articulation though prior learning assessments (PLA). For
students looking for jobs, YSU has launched a series of virtual career fairs to
connect those students with opportunities within the region.



The IBM partnership continues to offer foundational training for data science,
software engineering, cybersecurity and IT support, in addition to new programs
around blockchain and big data. YSU has further expanded its tech and tech
adjacent workforce training programs to offer free and paid industry recognized
credentials through the YSU Skills Accelerator. This online platform is open to
all and provides on-demand training for in-demand skills focused on information
technology, advanced manufacturing and professional business skills. Early
demand for this YSU program demonstrated a need and interest in flexible
learning pathways, something that has become increasingly critical to learning
and career development in the time of COVID-19.

Lorain County Community College

In an effort to uphold our longstanding goal of providing equitable access not
only to higher education, but to high-wage, in-demand careers, Lorain County
Community College launched our Free Fast Track program during the summer of 2020
with a goal of impacting those most affected by the pandemic. With nearly 30
program offerings focused on Northeast Ohio’s high-demand fields IT, healthcare,
and manufacturing, the program has seen great success. Since fall 2020, 811
people completed the Fast Track program, making a tangible impact on minority
communities hit hardest by the economic crisis. Among the program graduates, 13%
are Hispanic/Latino and 12% are Black/African American.

Simone Yalanty, who was laid off from a job as a machine operator due to
COVID-19 in spring 2020, decided to use the unexpected time off to change
careers. She enrolled in the Fast Track program to earn a short-term certificate
in Computer Information Systems – Software Development. She says the program’s
flexibility made it easy to remain enrolled, even when she was rehired by her
employer.

“For other busy people, especially adults like myself who work and have other
obligations, this is the best opportunity I could have ever asked for,” Yalanty
says. “I’m on my way to a brighter future than I thought I’d get, and it gives
me motivation to keep going.”

In addition to career counseling and on-the-job training, each fast track
program aligns with additional certificates, associate degrees, and even
bachelor’s and master’s degrees through our University Partnership. According to
a recent survey of participants, 60% plan to continue their education upon
completion of their short-term program.

College Now Greater Cleveland

While COVID has no doubt impacted our workforce in a very immediate way, the
effects have likewise been intense on young people and students, which may set
the stage for an equally challenging future. College Now has seen this firsthand
in the challenges faced by graduates of the Cleveland Metropolitan School
District and recipients of the Say Yes Cleveland scholarship. In operation since
2018, Say Yes Cleveland provides wraparound services for CMSD students in grades
K-12, including services related to counseling, medical essentials, housing,
food, and legal supports, as well as a gap-closing tuition scholarship for
graduates pursuing postsecondary education. College Now serves as the fiscal
agent for Say Yes Cleveland and manages the Say Yes Cleveland scholarship
program and has witnessed hardships families faced during COVID, including a
lack of internet access, food and housing insecurity after the closing of
college campuses, and more, particularly for minority students and families.
Many minority students have chosen to delay enrollment in higher education, or
stopped out of a current degree program, due to the inability to access remote
learning or because of the need to support families due to job loss of other
family members or to provide child care. College Now worked tirelessly to help
keep students engaged throughout the pandemic, making sure they had a plan to
return to college when the opportunity presented itself and knew their options
to reenroll and continue their degree programs. It is imperative for
organizations like College Now to keep these students engaged and thinking about
their next steps in the college-going process, even during the pandemic, to
ensure that they are prepared to fill future workforce needs and to keep
Northeast Ohio competitive in the regional and national economy.

For the purpose of this report, “Communities of Color” are defined as census
tracts in which 51% or more of the population are people of color.


RACIALLY PROPORTIONALITY OF IN-DEMAND OCCUPATIONS

Our Aligning Opportunities series focuses on 20 jobs that offer
family-sustaining wages and job security (due to low likelihood for automation).
However, the residents filling these occupations in Northeast Ohio today are
disproportionately white. Raising the visibility of these fields to emerging and
transitioning minority talent pools is critical to the region’s efforts to
remain competitive and advance minority communities.


* Business professionals working on energy audits, security assessments,
international or online commerce, sustainability and disaster recovery

** Computer-savvy professionals working to design video games, develop computer
solutions, build geospatial programs or analyze data

*** Managers working on organizational compliance, risk, supply chain,
investments and security, often in the green economy

SOURCE: Burning Glass Labor Insights; Economic Modeling Specialists
International; Team NEO Calculations


WHERE ARE MINORITY WORKERS CONCENTRATED AND HOW CAN THEY BE INTRODUCED TO
IN-DEMAND JOBS IN YOUR REGION?



In Northeast Ohio, White workers hold a majority of the most in-demand jobs. But
where are our minority workers concentrated? In Northeast Ohio, Asian, Black or
African American, and Hispanic
workers are concentrated in the respective ten occupations, accounting for over
300,000 jobs in the region.

Asian
• Manicurists and Pedicurists
• Medical Scientists, Except
Epidemiologists
• Software Developers and
Software Quality Assurance
Analysts and Testers
• Postsecondary Teachers
• Physicians, All Other;
and Ophthalmologists,
Except Pediatric
• Computer Programmers
• Chefs and Head Cooks
• Sewing Machine Operators
• Teaching Assistants,
Postsecondary
• Biological Technicians

Black or African American

• Barbers
• Postal Service Mail Workers
• Parking Attendants
• Nursing Assistants
• Public Transit drivers
• Home Health and Personal
Care Aides
• Residential Advisors
• Security Guards
• Orderlies
• Industrial Vehicle Operators

Hispanic or Latino

• Meat Processing Packers
• Farmworkers (Animal)
• Farmworkers (Crops)
• Meat Processing Preparers
• Packers and Packagers, Hand
• Production Workers
• Packaging and Filling Machine
Operators and Tenders
• Maids and Housekeeping
Cleaners
• Military occupations
• Fast Food Cooks

For the purpose of this report, “Communities of Color” are defined as census
tracts in which 51% or more of the population are people of color.


BUSINESS OWNERSHIP

Based on available data from the U.S. Census Bureau’s 2017 Annual Business
Survey, minority-owned Business Enterprises in Northeast Ohio account for just
7% of firms with paid employees in the region. An October report from the
Federal Reserve Bank of Cleveland showed that Black-owned businesses closed
twice as frequently as their White counterparts, while Black-, Latino-, and
Asian-owned businesses all struggled at higher rates with closure and downward
revenue throughout the pandemic.

Nationally, over 3 million small business owners left their posts between
February and April of 2020, according to a National Bureau of Economic Research
study on Businesses Owners completed at the pandemic’s onset. The disparity in
size and scale of business is further reinforced by data from Crain’s Cleveland
Business, which show that the 20 largest privately held companies in the region
employ over 79,700 individuals compared to the 20 largest MBEs which employ just
over 2,600 individuals. Compared to last year, the largest privately held
companies have almost doubled their employee counts while MBEs only increased by
25%.

In 2020, the Federal Reserve’s Small Business Credit Survey provided data that
could depict how well employers would be positioned to weather the pandemic. The
survey found that collectively, Black- and Latino-owned firms were half as
likely to obtain bank financing as their majority-owned counterparts. We
reference this data point because our business ecosystem’s processes are
critical to minority business owners’ success. Lack of access to credit and
capital for MBEs has inhibited the success and expansion of minority communities
in the past.

Equal access to capital, enhanced communications, financial education, and
networking are mechanisms to help advance business owners. However Black- and
other minority-owned business owners have faced challenges in these areas. We as
a region must continue to ask ourselves how resource providers can help minority
and other business entrepreneurs to navigate the complexities of growth and
decline post-COVID.

3 Lucas Misera, An Uphill Battle: COVID-19’s Outsized Toll on Minority-Owned
Firms, Cleveland Fed October 2020



MBES INCREASED EMPLOYEE COUNT 25% COMPARED TO NEARLY 50% INCREASE IN
NON-MINORITY BUSINESSES




BUSINESS OWNERSHIP IN NORTHEAST OHIO



SOURCE: 

Survey of Business Owners (US Census Bureau), 2017


RACIAL BREAKDOWN OF MINORITY BUSINESS




CASE STUDIES

Hall of Fame Resort & Entertainment Company

Last year, we highlighted the Hall of Fame Village (HOFV) and the Stark County
Minority Business Association (SCMBA), specifically their commitment to Stark
County and minority contractors. That has not changed. The Hall of Fame Resort &
Entertainment Co., parent to the Hall of Fame Village powered by Johnson
Controls, has persisted despite the pandemic’s impacts on the construction and
entertainment industries. One way HOFV demonstrates this is by using an in-house
consultant to support all efforts related to DE&I, including supporting the
company as it builds its team for the future.

HOFV has also grown their community ecosystem through partnerships with the
SCMBA, Moving Community Forward, Trade Unions, and others to pull from a local
pool of qualified contractors and businesses. They support these and all other
Stark County businesses by providing access to educational webinars, mentoring,
and networking opportunities for businesses in the county.

Through these partnerships, HOFV also uses a Stark County minority business
directory to help when selecting contractors within all facets of Phase II of
their current development project, projected to be in excess of +$300 million.
With a nation-wide effort being made by companies to use minority contractors
and support minority businesses, having this type of resource available can work
to offset the negative impacts COVID has left on minority businesses and
workers.

Greater Akron Chamber & Conxusneo

RAISE: Good Jobs for Greater Akron increases access to economic opportunity by
bringing employers, wraparound services, education and workforce partners
directly into neighborhoods where residents
are underrepresented in high-demand, good-paying jobs. Information sessions
highlight industries, occupations, career opportunities and necessary skills.
Residents visit employer, education/training and resource tables to learn more,
connect and register with OhioMeansJobs. Job preparation workshops are offered
at local libraries, and success coaches support residents to persist as they
prepare for job/training fairs in their neighborhoods. Employers also benefit by
accessing a more diverse talent pool

Visit raisegoodjobs.org for more information.

NOTE: Governor DeWine issued a stay-at-home order soon after the program launch,
so RAISE retooled its
website to include COVID-related information, resources to access the internet,
and links to upskill training
and job openings. Virtual job/training fairs are being planned to help displaced
workers and those in
low-wage front line jobs access better jobs.

Ohio To Work

Ohio To Work (ohiotowork.com) is an initiative that provides Ohio job seekers
with a mix of job training, tools, and resources to help them increase their
income and improve their quality of life.

Across the state, Ohioans are looking for jobs and new careers. Employers need
skilled and work-ready employees. And organizations across the state are already
doing great work to empower job seekers. Ohio To Work, an initiative led by
JobsOhio, Ohio’s Economic Development Corporation, is the culmination of partner
organizations at the regional level to connect job seekers to long-term career
opportunities with Ohio’s employers.

Below is a sampling of results from a participant in the program:

“Before the pandemic I was performing well in my career field. Then COVID hit.
At first I was just furloughed but then my job went away. And it wasn’t coming
back.

I attended an Ohio To Work information session and learned about the We Can Code
IT program. I knew another opportunity like this would never come along again. I
was able to get scholarships through Ohio To Work and We Can Code IT so there
were no costs to me except books. My career coach from Ohio Means Jobs has been
wonderful, he feels like a best friend because he’s always rooting for you; he
has great suggestions. If it wasn’t for him I wouldn’t have known about We Can
Code IT.

The training from We Can Code IT is different than my college career. In college
I developed skills to be a jack-of-all-trades but with We Can Code IT, now I
have a profession that nobody can take from me. And, I know exactly what type of
jobs to look for.

The pandemic and Ohio to Work gave me the opportunity and the means to make the
change I only dreamed of previously.

The future looks very bright.”

– Amiyra Alveranga

Fund For Our Economic Future

Legacy industries, declining job access, concentrated poverty and systemic
racial exclusion have long undermined Northeast Ohio’s global competitiveness.
The downturn caused by the coronavirus intensifies the need for equitable
growth. In response, the Fund for Our Economic Future is working with regional
partners to build up and reinforce job hubs.

Job hubs are places of concentrated economic activity, defined and identified
based on four characteristics: high concentrations of traded-sector jobs,
multiple employers, alignment with local development priorities, and potential
economic development opportunities.

Job hubs can make Northeast Ohio more competitive and more equitable. They
benefit businesses: Physical proximity to other businesses spurs creativity and
collaboration. They benefit taxpayers: Utilizing existing infrastructure means
paying for fewer new roads or sewers. And they drive equity: Bringing jobs
closer to people combats distance discrimination.

The Fund for Our Economic Future believes that the road to a stronger tomorrow
for all Ohioans
starts with growing job hubs.

Greater Cleveland Partnership

As a leading voice on the subjects of equity and inclusion, the Greater
Cleveland Partnership (GCP) advances racially equitable strategies to create
inclusive organizational cultures within the region. In 2019, GCP launched a new
initiative, CommitCLE, to engage the business community. This initiative
is focused on not only heightening the acumen and access for small MBEs, but
also growing scalable MBEs and ultimately elevating how Cleveland does business.

As CommitCLE strives to facilitate significant growth for MBEs, a cohort of
companies has committed to increasing supplier diversity spend with
growth-oriented minority firms. These companies will grow local and diverse
spend, mentor two to three MBE firms and utilize the Inclusion Marketplace, an
online portal connecting MBEs with demand for goods and services.

The Inclusion Marketplace was developed to close the gap between supply and
demand to increase
the number of scalable MBEs. On the supply side, MBEs promote their
goods/services, find business opportunities and bid on work. On the demand side,
buyers can post opportunities and source
suppliers to diversify their vendor bases. Additionally, the portal connects
MBEs to resources, capital
and outreach events.


STAY INFORMED




MOVING FORWARD

So where do we go from here?

Increasing job access, providing resources to the underemployed, and investing
capital in communities and businesses of color are all large-scale approaches to
drive change for communities of color. In June of 2020, Cleveland City Council
declared racism a public health crisis to address the many factors contributing
to poor health and economic outcomes of minorities in the region including
inequities around education, workforce, income, housing, health care, and other
day-to-day factors.

Northeast Ohio businesses are looking for diverse talent, especially in growing
industries like health care, IT, and manufacturing. Attracting talent within our
own ecosystem, equitably by race and gender, must be a priority.


ABOUT ALIGNING OPPORTUNITIES


THIS REPORT IS A SUPPLEMENT TO TEAM NEO’S ANNUAL ALIGNING OPPORTUNITIES REPORT,
WHICH SERVES AS THE FOUNDATION OF THE ORGANIZATION’S TALENT STRATEGY. FIRST
RELEASED IN 2017 THROUGH THE GENEROUS SUPPORT OF THE CLEVELAND FOUNDATION,
ALIGNING OPPORTUNITIES IDENTIFIES THE SUPPLY AND DEMAND MISALIGNMENT WITHIN
NORTHEAST OHIO’S TALENT PIPELINE, SPECIFICALLY WITHIN THE IN-DEMAND, HIGH-GROWTH
SECTORS OF HEALTH CARE, IT AND MANUFACTURING. SINCE 2019, TEAM NEO HAS PARTNERED
WITH DELTA DENTAL TO INCREASE AWARENESS OF ALIGNING OPPORTUNITIES AMONG THE
BUSINESS AND HIGHER-EDUCATION COMMUNITIES. WE ENGAGE KEY DECISION-MAKERS IN
MEANINGFUL DISCUSSIONS TOWARDS RESOLVING THE TALENT SUPPLY AND EQUITY GAP, WHILE
ALSO PROVIDING STUDENTS WITH GREATER AWARENESS OF, AND ACCESS TO, IN-DEMAND
CAREERS.

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