Good Jobs Policy Framework
An agenda for good jobs in Puerto Rico requires all of us. It starts with this fundamental belief: the purpose of an economy is to invest in its greatest asset: its people. Our innovative idea is that families with children are assets and worthy of investment. If we get this right, the economic future of Puerto Rico is bright. It all starts here.
A good job is the foundation for economic mobility
• A good job is the most important aspect in the economic mobility journey of families.
• It brings the income that makes possible not only consumption in goods and services but also investments. It brings resources that can be used to enhance the education of children and parents. It allows for a savings account for emergency funds, it provides access to other financial instruments like a loan or a better credit, eventually opens the opportunity to become a homeowner, and save for retirement.
• It also has immediate effects on the whole family and community. We know that the devastating effects of economic hardship on children’s development can be avoided by lifting families out of poverty.
• While it is not the only support a family may need to be cleared out of poverty and economic hardship, the persistence of good employment opportunities are one of the most important assets for upward economic mobility.
Getting a good job is dependent on three broad conditions: supply, demand and the institutional framework where work happens.
• On the side of workers: workers are willing, ready and able to work. They have a full set of skills that are valuable in the labor market, such as education credentials, work experience, soft skills, industry-recognized credentials and resources to invest in working (job placement services, clothing, transportation, etc.). Work is a net benefit meaning that the benefits of work are greater than the costs.
• On the side of employers: employers have job openings, and offer good pay and good jobs.
We are proposing a partnership between workers, employers and government to ensure the economic mobility of families and a prosperous economy. 1
• Market conditions, economic sector performance are solid.
• On the institutional side: government programs and incentives that make work pay, laws and regulations that protect workers are a baseline to ensure good jobs.
• All these three conditions must be optimal to a worker to get a good job and an employer to find a good worker consistently across the market.
The Puerto Rico context
Low-income families want to work
85%
of those not employed reported a desire to work
66% of those working part-time would work more hours if their current workplace offered them the opportunity.
Persistent barriers close off employment opportunities for upward economic mobilityi
• Child care and inconvenient or variable hours are the most important obstacles cited for not for not working.
• Seventy-five percent (75%) of respondents report childcare as a major obstacle to employment.
• Seventy-two percent (72%) report that lack of after-school is a major problem impacting their ability to work.
• Mothers with preschool-age children are more likely to face childcare access problems in order to work than mothers with schoolage children (82% vs. 70%).
• Inconvenient, varying, or unpredictable schedules also present a major problem; 71% to 74% of households report this reason as a major obstacle to work.
• Low wages were also cited by heads of households as a factor limiting job placement (70%).
• Access to jobs, either because of lack of transportation or because workplaces are too far away, is a major problem for two out of three unemployed heads of household.
Work often offers insufficient income
51% of households did not have enough food to last the whole month several times in the last 12 months.
25% of employed women and 30% of employed men are full time workers that make $25k or less a year. This has been consistent over time.ii
42% of families indicate that their income was insufficient to meet their needs.
There are positive signs of policy and practice that can support a good jobs agenda.
• Puerto Rico has set a goal to reduce child poverty in half through law 84 of 2021. Adoption of recent tax credits like the local Earned Income Tax Credit and the Child Tax Credit offer an investment in families that make work pay. Also, new “whole family approach” or 2 Gen centers across the island are an important lever that can connect families with basic needs and jobs.
Government should adopt a family investment agenda focused on jobs
IDJ’s policy roadmap offers an evidence based, impactful and efficient pathway for government to create jobs and reduce child poverty. This agenda includes policies that
• Remove barriers to work through child care, early childhood education and 2Gen models of service.
• Connect people with jobs through sector-based workforce training, subsidized work and tax incentives for businesses.
27% of recipients of expanded CTC said they were able to afford better nutrition with the money brought by credit.iii
The rebound in the economy since 2018 has not translated into less poverty among children and it appears to be the result of the progressive influx of federal funds.
• Post-Hurricane María the earthquakes in the southwest of the island and the pandemic has fueled a significant amount of federal investment in Puerto Rico and stimulating macroeconomic indicators like employment, unemployment and GDP showing progress. However, this may be driven by time bound federal government investments.
• Optimize government support for workers through tax benefits for families, child allowance programs and safety net improvements.
• Promotes employers value of workers through improvements in scheduling, use of business best practices and increase in workers voice.
We believe that the government’s role as the steward of our economy should use this framework to establish policies that connect people with work, support business as creators of good jobs and promote economic growth. Thus, our agenda:
Capitalizes on private sector engagement
• Employers are part of the solution. By adopting practices in scheduling, employee benefits and hiring that can optimize operations and deliver better jobs for families seeking employment.
• Private sector trade associations and key stakeholders can use their presence to advocate for a better jobs pipeline by:
1) committing to a set of good jobs principles and 2) enabling changes in government and practice.
2 | Good Jobs Policy Framework
Ensures that workers are heard
• While it is tempting to fall on a singular definition of what a job is and can be for a family, the reality is that job seekers and workers should always be heard when describing what a good job is at any particular moment in time.
• Considering their input through formal ways can inform business decisions and policies. This can be done through existing mechanisms like unions, employee-own companies, profit sharing, culture change initiatives and opening direct lines of communications with business leaders.
Uses a whole of government and private sector approach for a life learning human capital investment strategy
• From early childhood education, k-12, higher education and other human capital investment actors must produce high quality education opportunities that match skills needed in the labor market.
Engages local and federal authorities to foster innovation in our safety net
• Making the safety net an ally not an enemy of the economic mobility of families by constructing programs that supports economic mobility by improving eligibility thresholds, intense case management, integrating services, minimizing the benefit cliff effect and addressing gaps created by federal and local policy. Agencies should use data, keep a focus on outcomes and implement a culture of continuous improvement for the betterment of families.
i Arroyo-Quijano, C., Enchautegui, M. E., Rivera, A., & Rosa-Rodríguez, B. (2023, September 4). La Movilidad Económica de las familias con niños y niñas en Puerto Rico: Barreras Al Empleo. Instituto del Desarrollo de la Juventud. Retrieved from https://www.juventudpr.org/publicaciones/la-movilidad-economica-de-las-familias-conninos-y-ninas-en-puerto-rico-barreras-al-empleo
ii Toro, H. J., Rosa, B., García, C., & Aguirre, V. (2024). El Trabajo digno como ruta hacia un Puerto Rico sin pobreza. [Forthcoming].
iii Enchautegui, M. E., García, C., Blakely-Vallecillo, V., Carrasquillo-Vázquez, L., Rodríguez, C. I., & Arroyo-Quijano, C. A. (2022, December). Child Tax Credit (CTC): The Child Tax Credit in Puerto Rico: Impacts on Poverty and the Lives of Families. San Juan: Instituto del Desarrollo de la Juventud. Retrieved from https://www.juventudpr. org/publicaciones/ctc-puertorico
3 | Instituto del Desarrollo de la Juventud
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