JPMorgan Chase Announces $75 Million Global Initiative to Address Economic Opportunity Crisis Facing Young People
New Skills for Youth will encourage U.S. states to transform
career-focused education programs and invest in effective strategies for
scaling high-quality, skills-based training and education globally
NEW YORK–(BUSINESS WIRE)–JPMorgan Chase & Co. today announced a new $75 million, five-year global
initiative to address the youth unemployment crisis and expand young
people’s access to economic opportunity. With the global economy
requiring a more skilled workforce, New
Skills for Youth is designed to increase dramatically the number
of young people who complete career pathways that begin in high school
and end with postsecondary degrees or credentials aligned with
good-paying, high-demand jobs.
“Economic opportunity is increasingly out of reach for millions of young
people,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase. “It
is a crisis that only 60 percent of students in high-poverty urban
school districts graduate from high school and that more than five
million young people are out of work and school. Without the right
skills or education, they find themselves stuck in low-skill, low-wage
jobs or unemployed. We are in investing in high-quality career-focused
education programs so that more young people have a shot at real
economic opportunity.”
Young People Need More Opportunity to Access Education and Skills
to Compete for Jobs
Currently, employers are struggling to fill middle-skill jobs in
computer technology, nursing, advanced manufacturing and other fields
that require technical education and training. Too few young people are
receiving the education or training in high school and beyond that would
put them on a track to qualify for these skills-based positions. By the
age of 25, only one out of every two young Americans (52 percent) has a
meaningful postsecondary credential that enables them to compete for a
good-paying job and the U.S. youth unemployment rate is more than double
the national rate. While a four-year college degree is one pathway,
there are many high-demand, skill-based jobs available for young people
that earn a certificate or credentials, participate in an apprenticeship
or receive a two-year associate’s degree. But without the necessary
postsecondary education or training, young people face dwindling job
prospects and lower wages over their lifetimes.
Low-income people and young people of color are most vulnerable to
missing out on opportunities to advance economically because they have
not received the right skills or training. More than one in five young
African American and Latino young people are neither working nor in
school. Because they do not have strong connections to the job market or
the education system, they are earning lower wages and relying more on
social services.
“Career and technical education – also known as CTE – has always been a
passion of mine,” said U.S. Senator Tim Kaine. “From growing up
working in my father’s ironworking shop, to teaching welding and
carpentry to students in Honduras, to co-founding the Career and
Technical Education Caucus in the Senate, I’ve witnessed the incredible
power of CTE to help move people up the economic ladder. The New Skills
for Youth program will help prepare America’s students for the jobs of
the 21st century through hands-on learning experiences. I’m proud to
help announce this program, which will help states make systemic changes
to transform CTE programs and expand partnerships between schools,
businesses, and communities.”
“Education has always been the great equalizer in America, but for far
too many young people access to quality skills training remains out of
reach,” said U.S. Secretary of Labor Thomas E. Perez. “Addressing
this opportunity gap requires that government, community-based
organizations, educators, and employers like JPMorgan Chase & Co. work
together to ensure that zip code does not determine destiny for
America’s young people.”
“Educators know the value of creating and broadening pathways for
students into good jobs, which is one reason the AFT so strongly
supports career and technical education,” said Randi Weingarten,
President, American Federation of Teachers. “But we also know that
successful programs require collaboration with many partners, including
the business community. That’s why the AFT is glad to see JPMorgan Chase
launch this initiative, which can help our nation deliver on the promise
of a high-quality public education for all students.”
“We need private sector leadership to understand the mutuality of
benefits that come in addressing income inequality and wage stagnation
that continues to increase in America,” said Marc Morial, CEO,
National Urban League. “Young African Americans continue to face
profound difficulties gaining access to training and the right jobs. The
National Urban League is deeply engaged in workforce issues and
initiatives like New Skills for Youth are a critical step forward.”
New Skills for Youth Approach and Implementation
To strengthen career education and create pathways to economic success,
JPMorgan Chase will catalyze resources, leverage its expertise and
convene government, business and education leaders. New Skills for
Youth will confront these challenges from two angles:
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U.S. State Competition: To transform how U.S. states design |
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Global Innovation Investments: To promote global innovation |
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“State education leaders have demonstrated a strong commitment to making
sure all children are not only prepared for college but ready for
careers once they graduate from high school,” said Chris Minnich,
Executive Director of the Council of Chief State School Officers (CCSSO).
“Through CCSSO’s Career Readiness Initiative, states are creating bold
plans to reinvent learning so every child has the opportunity to
experience a meaningful career pathway that prepares them for the
high-skill, high-demand needs of today’s economy. This historic
investment from JPMorgan Chase will help states make this vision a
reality in the next several years.”
“High quality career and technical education rooted in equity principles
is critical to growing our economy, matching employers with skilled
workers, and expanding economic opportunity for all,” said Wade
Henderson, President and CEO, The Leadership Conference on Civil and
Human Rights. “I am encouraged that JPMorgan Chase will be investing
in this important work and appreciate their thoughtful approach and
consultation with the civil rights community. We stand ready to help
state, education, and industry leaders ensure that the missteps of the
past in tracking students and denying access to the full range of
college and career options are not repeated and that career and
technical education is a path toward equity.”
With New Skills for Youth, JPMorgan Chase builds on a
comprehensive set of philanthropic investments in promising approaches
to increasing economic opportunity. Over the last several years,
JPMorgan Chase has developed several initiatives to drive more inclusive
growth, including:
-
New Skills at Work: A $250 million, five-year effort to tackle the
skills gap by investing in data-driven approaches to middle skills
training for job seekers who have a high school degree, but lack
postsecondary credentials. -
Summer Youth Employment: A $5 million investment in 14 U.S. cities to
address the youth employment crisis by providing young people with
skills-based early work experience. -
The Fellowship Initiative: A program in New York City, Chicago and Los
Angeles that provides young men of color with hands-on academic,
social and emotional support to help them achieve personal and
professional success. -
J.P. Morgan Residential Aspiring Professional Programme: A program
with the Social Mobility Foundation through which J.P. Morgan provides
more than 50 low-income students from across the United Kingdom with
work-placements and mentoring from top executives to help equip
students with vital workplace skills.
Additional Notable Statements of Support
“In an increasingly digital world, companies that want to remain
competitive need to step up and provide the training necessary to create
a highly-skilled workforce for today’s advanced manufacturing
environment,” said Eric Spiegel, President and CEO, Siemens USA.
“At Siemens, we invest millions in training and apprenticeships each
year to support our employees and our businesses. Through New Skills for
Youth, JPMorgan Chase is creating new opportunities for young Americans
to gain the education and training they need to thrive in exciting,
well-paying careers in advanced manufacturing and other fields and I
commend them for their efforts.”
“Upskilling our young is critical to the growth of the economy and is
the seminal issue of our time,” said Nick Pinchuk, Chairman and CEO
of Snap-on Incorporated. “JPMorgan Chase’s investment in improving
career and technical education will go a long way to putting future
generations on a pathway to rewarding jobs and fulfilling lives.”
“We applaud JPMorgan Chase’s investment in careers and technical
education,” said Joanna Geraghty, President, JetBlue Foundation and
Executive Vice President, Customer Experience, JetBlue. “Engaging
students and peaking their interest in technical education early on is
key to helping them stay in school and graduate with a higher earning
potential – this is even more important for students from
underrepresented groups.”
“A bachelor’s degree is still as important as ever, but we need to
recognize that people take different paths at different points in their
lives,” said Freeman Hrabowski, President, University of Maryland,
Baltimore County. “JPMorgan Chase is working to align education
pathways with the skills employers need and better prepare young people
to succeed in the labor market.”
“Transforming career and technical education is an essential part of
enabling students to acquire the skills they need to compete for good
jobs and follow a clear pathway to the middle class,” said Johan
Uvin, Acting Assistant Secretary for Career, Technical and Adult
Education, U.S. Department of Education. “Effective, high-quality
CTE programs offer students opportunities for career awareness and
preparation by providing them with the academic and technical knowledge
along with the work-related skills necessary to succeed in postsecondary
education, training, and employment. I applaud JPMorgan Chase’s
commitment to expanding and improving career-focused education through
the New Skills for Youth initiative. Their leadership will help support
states in implementing systems reform and expanding promising new
approaches to the design and delivery of education that prepares young
people for careers in high-skill, high-wage jobs.”
“We know firsthand that high-quality career-focused education can be a
game changer for students and put them on a pathway to lifelong
success,” said Kimberly Green, Executive Director of National
Association of State Directors of Career Technical Education Consortium
(NASDCTEc). “We are thrilled to be a part of JPMorgan Chase’s New
Skills for Youth initiative, the largest private investment in
high-quality CTE I’ve witnessed in my 20-plus years in the field. This
infusion of resources and technical assistance has the potential to be
transformative and ensure more students than ever before have access to
quality programs that prepare them for the careers of their choice.”
For more information visit: www.jpmorganchase.com/newskillsforyouth
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services
firm with assets of $2.4 trillion and operations worldwide. The Firm is
a leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction processing,
and asset management. A component of the Dow Jones Industrial Average,
JPMorgan Chase & Co. serves millions of consumers in the United States
and many of the world’s most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands. The firm uses
its global resources, expertise, insights and scale to address some of
the most urgent challenges facing communities around the world including
the need for increased economic opportunity. Information about JPMorgan
Chase & Co. is available at www.jpmorganchase.com.
Contacts
JPMorgan Chase & Co.
Steve O’Halloran, 302-282-5699
