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The economic impacts of City School
As a bridge to education and employment opportunities, City School generates significant economic and social impacts. These impacts can be understood through three key themes:
Through offering tuition-free courses, with an emphasis on low-income and underserved community needs, City School reduces barriers to postsecondary opportunities. The barriers City School helps students overcome may be material (e.g., cost) or non-material (e.g., selfconfidence).
There is room to improve educational outcomes in Hamilton
Canada is among the most educated countries in the world. Out of the 36 developed countries that make up the Organization for Economic Co-Operation and Development (OECD), Canada ranks first in percentage of adults with a postsecondary degree (56.7%). 7,8,9
Figure 10: Percentage of population ages 25-64 with a postsecondary degree, across select OECD countries
0% South Africa Mexico Turkey Colombia Slovak… Portugal Germany Greece Latvia France OECD -… New Zealand Estonia Lithuania Sweden Switzerland Finland Ireland United States Israel Canada
Source: OECD; Deloitte Analysis Within Hamilton, the percentage of adults with a postsecondary education is even higher, at 65% (~256,000 people). This result is in line with the industry transformation of the city. Jobs in health care, educational services, and professional services commonly require a postsecondary degree.
Yet still, the data also illustrates that 35.3% of Hamilton adults (~14,000 people) do not have a degree above
7 Invest in Ontario. “Canada ranked OECD’s most educated country,” November 22, 2018. 8 Education outcomes are even stronger within Ontario. Within the province, 69% of adults have a postsecondary education. (Statistics Canada. “Education in Canada: Key results from the 2016 Census,” 2017.)
a high school diploma, while 10.3% (~41,000 people) do not have the completion of post secondary education. This segment of the population finds it challenging to secure work. 10 The most recent data illustrates that the unemployment rate for people without any degree was 11.7%, more than double those with college or university degrees (4.9%).
Lower City Hamiltonians face material and nonmaterial barriers to education
Within Hamilton, certain segments of the population are subject to material and non-material barriers to education.
The key material barriers to education are tuition fees and expenses, limited knowledge about financial aid, and the costs and risks associated with leaving a paying job to attending college or university. The non-material barriers to education are more complex. They relate to issues of self-confidence and whether potential students are raised to value higher education.
Both material and non-material barriers to education disproportionately impact low income populations. These segments of Hamilton have less resources for academic costs and taking time off work. Meanwhile, officials of Mohawk College have observed that the non-material barriers to education are more prevalent within low income families. Their hypothesis –which has been evidenced in various academic studies –is that parents in low income families tend to be less educated, and, as such, often do not fully appreciate the benefit of higher
9 In this report, adult populations are categorized as those aged 25-64. This helps mitigate the overestimation or underestimation of statistics that may happen when school-aged populations or retired populations are included in aggregation. 10 These figures are comparative with neighbouring Kitchener-Waterloo-Cambridge region, where 31,420 (11.1%) of adults do not have a degree and 73,415 (26.0%) of adults do not have a degree above their high school diplomas.
education, which impacts the likelihood of children going on the higher education themselves. 11
As reported above, many of Hamilton’s low income families are concentrated in the Lower City neighbourhoods. In these areas of the city, the median income is approximately $26,674, which is roughly $8,000 below the median income across all of Hamilton.
Additionally, postsecondary education attainment is relatively low among residents of Lower City Hamilton, as compared to the rest of the city. This suggests that these neighbourhoods represent an environment in which nonmaterial barriers to education can manifest.
Figure 11: Select population segments of Hamilton, by education level
No certificate, diploma or degree High School diploma College diploma;
Apprenticeship diploma; or University certificate below bachelor level Undergraduate degree or above
Hamilton, all Hamilton, lower city neighbourhoods City School Students
Source: Statistics Canada; Mohawk College Foundation; Deloitte Analysis
City School addresses material barriers to education
By providing tuition-free higher education courses with an easy application process, City School mitigates material barriers to education.
The data illustrates that, from an income perspective, City School addresses low income individuals. The Graduate Survey shows that the 55% of students were from households with an annual income of $30,000 or less. Several respondents highlighted that City School’s cost-free structure was a key factor that influenced their enrollment. These sentiments, along with the low income profile of students, collectively suggest that City School has been successful in helping Hamiltonians overcome material barriers to education.
Figure 12: Breakdown of household income among Graduate Survey sample of City School students
Over $100,000 $70,000 - $99,999 $50,000 - $69,999 $40,000 - $49,999 $30,000 - $39,999 $20,000 - $29,999 Less than $20,000
0% 10% 20%
Source: Graduate Survey; Deloitte Analysis 30% 40%
City School addresses non-material barriers to education
Importantly, City School also helps students build the self-efficacy and experience needed to pursue higher education. Prior to attending City School, 69% of participants had a high school diploma or no diploma at all (as reported above, across all of Hamilton this percentage is 35%). Several respondents say that City School provided them with a first success in postsecondary education and helped them build confidence in their ability to develop new skills. Table 1 outlines the experiences of a sample of City School participants who document City School’s level of support and impact on their confidence.
Table 1: Graduate Survey responses, as they relate to reducing barriers to education
01
02
I found City School to be an overwhelmingly fabulous experience. It was a self-confidence and esteem booster, it changed my life in ways I didn’t even know it was needing
‘City School’ was so incredible, I learned a lot and felt really supported and lucky to be able to participate.
04
Source: Graduate Survey
03
The education I received ‘from City School’ was fantastic. I feel others could benefit by the confidence gained from the accomplishment of completing a course.
’City School’ is one of the most helpful things in Hamilton… ‘Many’ of my friends don't think they will ever make it so I've already been handing out magnets and papers to people ‘on City School.’ ‘I want to’ help ‘people’ realize their full potential… I thank ‘City School’ for ‘doing so’ as well
Supporting students in taking the leap
Through mitigating material and non-material barriers to entry, City School develops interest and confidence among students to pursue even further education. The Graduate Survey illustrated that City School enabled participants to explore a given subject and test whether they wanted to pursue college before making a firm commitment. Other students said that the program was excellent for older adults who seek to upgrade their skills before registering for full-time studies.
Table 2: Graduate Survey responses, as they relate to reducing barriers to education
I found ‘City School’ to be a good, affordable way to bridge into PostSecondary education. I didn't have the funds to just "jump in". City School also helped me prepare mentally, making me less afraid of failure.
’City School’ allowed me to explore a field I wanted to work in, before ‘deciding’ to attend Mohawk College ‘full-time’.
02 01
City School is an excellent ‘opportunity’ for adults ‘who’ have been out of school to upgrade ‘their’ skills before registering for full time studies.
’City School is’ a great opportunity to challenge yourself and a great trial run before committing or spending money.
Source: Graduate Survey
03
04
It is important to note that City School does not completely resolve material and non-material barriers to education. There are likely potential students that are without the know-how to apply even to a free program. Or, once enrolled, some students are not willing to continue, perhaps a result of any number of factors, such as low self-esteem. Yet, the Graduate Survey is clear that, overall, City School creates an opportunity for low income Hamiltonians to try college in a cost-free and encouraging environment. As the result, there are students that developed the skills and confidence to pursue a full time college education. Of the sample of students captured by the Graduate Survey, 90% report that City School increased their interest in pursuing further education. While City School does not operate at a large scale, this outcome is positive in terms of improving educational outcomes in Hamilton.
90%
90% of respondents to the Graduate Survey report that City School increased their interest in pursuing further education
City School helps to mitigate the skills gap
Hamilton, like many places in Canada, faces a skills gap challenge. Businesses are finding it difficult to find skilled employees, while unemployed and underemployed workers are finding it difficult to secure jobs. Although the program is still in its early stages, City School has mitigated the skills gap challenge for its students and Hamilton businesses.
A call to mitigate the skills gap challenge
As reported above, Hamilton faces a skills mismatch challenge. Businesses are finding it difficult to find skilled employees, while workers are finding it difficult to secure employment. Given this dynamic, there is a need to expand the skillsets of Canadian workers so that they align to the requirements of job vacancies. Evidence of the skills gap challenge was found in both the Business Survey and the Graduate Survey. Within the former, 86% of Hamilton businesses identify that some form of technical or special skill is required to fill vacant positions in their organization, and 69% of these firms report difficulty in filling employment vacancies. At the same time, within the Graduate Survey, 50% of students were unemployed or only secured part-time jobs. Collectively, these statistics suggest a need for skills development and better matching between prospective workers and employment opportunities.
City School answers the market call
While operating at a small scale (i.e., 496 unique graduates to date), City School helps to mitigate the skills gap challenge in Hamilton. Given that the program is still in its early stages, this support cannot be observed within the macroeconomic data. Yet, for its student population, City School helps to provide skills and connections with employment opportunities. Additionally, for Hamilton businesses, City School represents a source of labour capable to fill job vacancies.
Mitigating the skills gap for City School students
According to the Graduate Survey, 92% of City School participants report that their knowledge and skills have improved as a result of their coursework, and 62% report that the program connected them with employers
following graduation. The Graduate Survey also illustrates that one in four students find a job directly related to their City School education and, when this match is made, the jobs tend to be associated with higher incomes. Ultimately, it is highly challenging for City School to facilitate employment for all of its participants. This is because a lack of skills is not the only barrier to good jobs. In the Stakeholder Consultations, Hamilton businesses also identified language and material costs (e.g., having a car) as reasons why they could not hire more City School graduates. To achieve 100% employment directly related to their education –these challenges will need to be addressed.
Mitigating the skills gap for Hamilton businesses
Within the Business Survey data, over 60% of respondents reported that City School had a positive impact on business growth and the ability to address labour shortages. Additionally, over half of firms surveyed indicated that the program improved the diversity of their workforce and improved the quality of their workforce. In a Stakeholder Consultation, one business said that City School gave them the opportunity to access communities and individuals whom may not have known to apply to their job vacancies. They added that their involvement with the program prompted them to initiate their own training program so that they can upskill their existing workers.
Addressing the skills gap challenge mitigates fiscal pressure
While still operating at a small scale, City School’s support in mitigating the skills gap challenge provides relief to government spending. Among the respondents to the Graduate Survey, 56% of students were reliant on Ontario Works support prior to the program, while 42% were reliant on Ontario Works support following graduation. Through City School, these participants need less social assistance from the government and move into jobs that generate tax revenue, thereby providing fiscal relief.
Figure 13: Percentage of Graduate Survey respondents reliant on Ontario Works Support
56%
42%
A step in the right direction for people and businesses
The skills gap challenge hurts both workers and businesses. To date, City School has graduated 496 students, which will not create a macroeconomic impact in a city the size of Hamilton. Yet, the data is clear that the program represents a model that can help to mitigate the challenge. As one respondent to the Business Survey writes, “City School is a step in the right direction.” Another adds that the program helps to ensure “the slack in the labour supply is being used,” representing the idea that unemployed or underemployed Hamiltonians can find a good job through City School.
Prior to City School After City School
Source: Graduate Survey; Deloitte Analysis
City School promotes greater well-being and quality of life among its students and stronger, healthier, and more resilient communities within Hamilton.
Helping to reverse the trends revealed by “Code Red”
It is well documented that families facing economic challenges, such as unemployment and poverty, also experience social challenges. This association is core to the revelations of “Code Red”. Residents of Lower City Hamilton tend to struggle financially and in terms of social outcomes, such as health, housing, and ability to support their children, among others. As reported in the chapters above, City School helps to generate positive economic outcomes for its students, by removing barriers to education, enhancing their employment opportunities, and, in some cases, alleviating dependency on social assistance programs. Building on these insights, the data also shows that, by second order, City School also generates positive social outcomes for its students.
Promoting well-being and quality of life among students
Figure 14: Sentiments of Graduate Survey sample of City School students
City School has increased my interest in pursuing education I would recommend City School to friends and colleagues
City School has increased my overall wellbeing
City School has improved my quality of life
City School has increased my ability to support my family I feel more fulfilled in my job as a result of City School
73% 80% 90% 97%
68%
60%
Source: Graduate Survey; Deloitte Analysis The Graduate Survey illustrates that the vast majority of respondents report higher levels of well-being, quality of life, job fulfillment, and ability to support their families since participating in City School. These results are especially notable given that typically City School students come from difficult economic and social circumstances. City School makes a meaningful and positive impact on the lives of those who face the deepest challenges. This data is consistent with the viewpoints of Hamilton leaders in private business, non-profits, and government. Through the Stakeholder Interviews, they report that positive education outcomes is a critical first step in achieving stronger, healthier, and more resilient communities. As one stakeholder explained, “City School is one of the strongest pathways to remove individuals or families from low-income and poverty existence, and elevate their social well-being.”
Elevating Hamilton communities
Building on its contribution to individual students, City School has potential to elevate families and communities. A key predictor of a child’s educational attainment is the education level of their parents. Through expanding access to college courses, City School can play a role in promoting higher education within the families of its students. While this is not an exact measurement of parenthood, 51% of Graduate Survey respondents live in households with children under the age of 15, creating scope for participants to influence the next generation. Additionally, data from a sample of City School participants indicates that over 90% of City School participants have an interest in pursuing further education as a result of their involvement with City School and almost 97% of City School participants indicate that they would recommend City School to friends or colleagues. Overall the benefits of City School involvement extend beyond the individual participants. Equipped with new skills, new confidence, and new employment opportunities, past students may inspire future generations or their fellow community members, creating a positive multiplier effect.
