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Secretary of Labor Robert B. Reich today announced an $8.9
million grant for pilot projects in Los Angeles, Houston and Chicago to boost
the employment rate for dropouts in specific high-poverty areas from less than
50 percent to 80 percent.
The three cities were among 54 communities that competed
for the grant targeted for their highest-poverty neighborhoods. They will
provide an additional $12 million to fund the program of intensive training and
job placement for as many as 6,000 young people, ages 16-24.
The Clinton Administration has requested an additional $250
million for the FY 1997 budget to extend the program to other communities.
"It is important for us to help high-school dropouts finish
school, get training and land a job. By lending a hand today, we can provide
hope for a brighter tomorrow," said Vice President Albert Gore.
"These are young people who have failed in school or whose
communities have failed them," Reich said. "Without help their failures will
multiply and so will their costs to society." Reich said dropouts are more
likely to become permanently unemployed, have children out of wedlock, and turn
to welfare, drugs and crime.
The average high-school dropout earns and therefore
contributes $230,000 less than a high-school graduate to the economy The
average high-school dropout pays $70,000 less in taxes than a high-school
graduate.
The three cities will target specific high-poverty
neighborhoods with programs to keep the young people in school, help them get
their degrees and train them for good jobs in the area. Local companies will
help design the training for occupations in demand locally and commit to a
specific number of career track jobs.
"We know from experience that helping these troubled young
people will not be easy or quick," said Reich. "They need to learn more than
just job skills--many need to learn how to overcome abusive families, resist
dangerous companions, get off drugs, finish high school and learn the simple
demands of work life--punctuality and discipline."
Houston expects as many as 1,499 out-of-school youth to be
served by the program designed to reduce the youth unemployment rate from 70
percent to less than 20 percent and reduce the high school dropout rate by more
than 50 percent. The city will combine the $2,895,055 in federal grant funds
with $4,442,252 in other funds.
Los Angeles will add $4.5 million in public and
private-sector funds to the $3 million in federal funds to serve as many as
3,145 out-of-school youth. More than 700 jobs have been pledged by
private-sector employers.
Chicago will add $3,464,035 to the $3 million federal grant
to serve more than 1,300 young people. Area businesses and corporations have
committed 200 work-based learning positions for out-of-school youth and 50 part
or full-time jobs.
Archived News Release--Caution:
information may be out of date.
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