CREATING JOBS IN AMERICA’S WEAK MARKET CITIES

BACKGROUND 60% of all jobs in America are in suburbs, not central cities. 60% of all jobs in America are in suburbs, not central cities. National government has virtually no place-based urban or industrial policy National government has virtually no place-based urban or industrial policy Action/innovation to create jobs is at the city and state level Action/innovation to create jobs is at the city and state level No consistent prevailing theory of job creation and economic development. No consistent prevailing theory of job creation and economic development. Some limited instances of transit systems improvements Some limited instances of transit systems improvements

RECURRING THEMES IN CREATING JOBS IN AMERICAN CITIES Strengthen retail/office/residential occupancy in center cities Strengthen retail/office/residential occupancy in center cities Strengthen tourism via hotels, convention centers, sports facilities, etc. Strengthen tourism via hotels, convention centers, sports facilities, etc. Chasing/recruiting businesses via government incentives/subsidies Chasing/recruiting businesses via government incentives/subsidies

BEST PERFORMING JOB GROWTH CITIES Strong services sector, especially business and professional services Strong services sector, especially business and professional services Robust tourism Robust tourism Population growth that leads to home construction and related consumer industries Population growth that leads to home construction and related consumer industries Retirees, leading to increased health care services Retirees, leading to increased health care services

KEY JOB GAINS IN METROPOLITAN AREAS, Administrative and support services680,000 Administrative and support services680,000 Health care620,000 Health care620,000 Accommodations and food services546,000 Accommodations and food services546,000 Construction534,000 Construction534,000 Professional, scientific344,000 Professional, scientific344,000 Retail trade279,000 Retail trade279,000 State/local government264,000 State/local government264,000 Education148,000 Education148,000

Job Growth Strategy: Land Land acquisition and reuse (regeneration) Land acquisition and reuse (regeneration) May be losing public taking powers May be losing public taking powers Building from strength and anchors (universities, hospitals, etc) Building from strength and anchors (universities, hospitals, etc) Locally crafted, with little national support and limited state support Locally crafted, with little national support and limited state support Brownfields clean up and reuse Brownfields clean up and reuse Smart growth constraints to locate jobs in central cities and older suburbs Smart growth constraints to locate jobs in central cities and older suburbs

JOB GROWTH STRATEGY: LABOR School improvement, and growth of charter schools School improvement, and growth of charter schools Job training via “workforce intermediaries” Job training via “workforce intermediaries” National funds for job training National funds for job training Living wage approaches as a double-edged sword Living wage approaches as a double-edged sword

JOB GROWTH STRATEGY: CAPITAL Economic incentives to business Economic incentives to business National tax credits (New Market Tax Credits) National tax credits (New Market Tax Credits) National small business loan guarantees National small business loan guarantees Creative local financing (TIFs, BIDs, etc.) Creative local financing (TIFs, BIDs, etc.) Community development venture capital Community development venture capital

JOB GROWTH STRATEGY: ENTERPRISE “Creative class”: Strategy or fad? “Creative class”: Strategy or fad? Creating favorable business climates Creating favorable business climates Overcoming demise of industrial corporation leadership in weak-market cities via new civic organizations Overcoming demise of industrial corporation leadership in weak-market cities via new civic organizations

JOB GROWTH CONCEPTS Efforts/struggles to reposition local economies Efforts/struggles to reposition local economies Connecting central city work with metro area/regional approaches Connecting central city work with metro area/regional approaches Some emphasis on Inner City job creation and analysis Some emphasis on Inner City job creation and analysis Purchasing power analysis. Purchasing power analysis.

JOB GROWTH STRATEGIES: CONCLUSIONS Job creation is an art, not a science, and a great deal is still being learned about how to accomplish job creation in weak market cities. Job creation is an art, not a science, and a great deal is still being learned about how to accomplish job creation in weak market cities. Job creation and workforce development are two complementary parts of a strategy Job creation and workforce development are two complementary parts of a strategy Entrepreneurship must be enhanced in weak market places as a strategy to create jobs. Entrepreneurship must be enhanced in weak market places as a strategy to create jobs.