Finding Balance, Not Compromise

A summary of the Illinois Future of Work’s First Task Force Meeting

Written by Hannah Gregor, University of Chicago

On September 28, 2021, the Illinois Future of Work Task Force met for the first time at Olive-Harvey City College on the South Side of Chicago. The task force, which was created by Governor Pritzker and is led by Senator Ram Villivalam and Leader Marcus Evans, is exploring ways to make the state’s workforce more inclusive and resilient. The task force’s charge is broad: to consider and produce a set of evidence-based policy recommendations that help the state create equitable, long-term economic growth; and to ensure all Illinoisans share in that success.

The first meeting featured multiple speakers from different backgrounds. They addressed economic trends in our state and across the nation, future outlooks for employment, and the rights and challenges of workers in a variety of settings. The meeting speakers included Felicia Wong, CEO and President of the Roosevelt Institute, Shelly Steward, Director of the Future of Work Initiative at the Aspen Institute, Brian Fabes, Managing Director of the Corporation Coalition of Chicago, and a workers roundtable. The speakers all agreed that Illinois is at a pivotal point in its history, as it survives a pandemic and economic crisis and attempts to take bold action to reform workplaces and workforces, while increasing economic prosperity for everyone. The speakers also urged the task force to capitalize upon this pivotal moment and fight for bold changes that benefit workers and employers in Illinois.

One particular charge came from Brian Fabes, who challenged the task force to think about balance — as opposed to compromise — in proposing new policies. Employees, businesses, and governments each have a pivotal role to play in the future of work in Illinois. These roles are also interdependent, co-existing in a complex system that, when operating effectively, can provide for mutual prosperity. Fabes challenged the task force to look for paths that balance the needs of all parties, rather than compromising the need of one in exchange for the other. For example, many workers are unable to participate in the labor market because of a lack of access to affordable childcare. Rather than compromising the size of a childcare subsidy for workers, the task force might develop policies that expand on-site, flexible childcare options, which would support both workers and employers, who would benefit from expanded availability of workers due to on-site childcare options.

In looking for the right balance, Fabes outlined four current “truths” about work and the labor market that he encouraged the task force to consider:

1. The labor market is providing fewer paths out of poverty.

Between 2005 and 2014, high-income and low-income jobs grew in Northeastern Illinois by 3.5% and 9.5%, respectfully. During the same time, middle-wage jobs — those that have the potential to lift workers out of poverty — shrunk by 6.7%. The task force was urged to develop policies that can grow and sustain these critical, middle-wage jobs.

2. Technology will play a central role in our economy, and the State needs to ensure it is a force for shared prosperity.

Technology is not reducing the number of jobs. However, jobs are shifting to different sectors and arrangements, and policy has not kept up. To put this in context,, the largest employment sectors in the 1940’s were production, farming, and mining. Today those sectors represent a small fraction of our economy, while personal services and professional jobs, which were virtually nonexistent in 1940, are exploding. Employment arrangements have also changed so that employees are less likely to stay with one employer long-term, and many work as independent contractors. But today’s worker protections and safety nets reflect the needs of mid-20th century workers, not the reality of 21st century life. Paid sick time, family leave, retirement benefits, and health insurance need to follow the employee rather than the employer. Technology will continue to change what employers are looking for. Fabes urged the task force to consider the structure of work and safety nets more than specific sectors or jobs when recommending solutions. While we do not know what jobs will exist in 40 years, we know many of the things workers and families need, regardless of the job, to thrive.

3. The pandemic has taught some basic truths about the labor market.

Humans are not “econs,” the mythical creatures in economic textbooks that make decisions by maximizing fictional utility functions. Rather, humans are complex beings, balancing multiple needs of themselves, their families, and their communities. This has never been more apparent than in the impact of terminating expanded unemployment benefits over the past year. States that eliminated expanded benefits early saw little to no difference in employment rates compared to states that retained expanded benefits. As research from UChicago and other institutions revealed, workers refused to re-enter the labor market even after losing benefits for a combination of reasons, including fear of contracting COVID, difficulty securing childcare, and growing interest in new careers. Economic policy, for its part, needs to reflect real human needs, and the reality that jobs are more than a paycheck and benefits. Jobs also bring dignity, meaning, creative outlet and community to workers.

4. The private sector must play an active role in defining job quality and worker success.

The challenge for the task force to create a robust economy and thriving workers will be won or lost in private, for-profit sector jobs. In 2019, 76% of jobs in Illinois were in the private sector. While improving public and mission-driven sector jobs will help, businesses must lead the charge. Currently, many firms are struggling to find the skilled workers they need, which provides an opportunity to both solve a business problem while improving worker wellbeing. Rethinking job requirements (moving from credential- to competency-based hiring); expanding the pool of recruiting sources; improving job quality through better family supports, scheduling predictability and benefits; investing in worker training; and creating clear, reliable career paths are all strategies that companies can use to attract and retain employees while improving employee success, business success, and economic growth across the State.

The Illinois Future of Work Task Force has a considerable charge before it. As its north star, let it consider this advice to find balance in responding to the needs of both employees and employers.