Return on Investment Study Reveals Ready to Work Program Impact
Published on October 03, 2023
Return on Investment Study Reveals Year 1 of Ready to Work Program Yields $1.7 Billion in Local Economic Impact
SAN ANTONIO (October 3, 2023) – Now in the program’s second full year, Ready to Work (RTW) is making dramatic economic impacts on the local economy according to a recent study titled Economic Impacts of Ready to Work, conducted by Dr. Steve Nivin, Economic Research and Consulting, and Dr. Belinda Roman, Roman Economics.
The study examines the Return on Investment (ROI) per individual enrolled in the program through June 30, 2023. The ROI is broken into categories that include 1) Increase in Incomes of Ready to Work Participants, 2) Economic Impact of Spending, and 3) Social Savings, for a grand total of $61 ROI per dollar spent or planned to be spent on the training of those participants. This equates to a $1.7 billion economic impact on the careers of the participants served during the first year of the program.
As of June 30, 2023, 3,345 participants had enrolled and had actively engaged with approved RTW training and education programs, with 511 participants having graduated from their training programs. To date, 4,343 participants have enrolled in training and education pathways with 697 participants completing their training programs.
The impact measures look closely at how much RTW increases an individual’s income over a lifetime. By the end of RTW’s first year, participants were earning a median of $15.38/hour more than they had earned before joining RTW. Economic impacts of spending include how much a person affects the economy due to earning higher wages. Finally, social savings is defined as spending saved on social programs that helps support an individual when they are unemployed or underemployed, such as Medicaid and CHIP programs.
“When you think about the impact that Ready to Work is having on our local economy, that pales in comparison to the impact that the program will have on a person’s future and their family,” said Mike Ramsey, executive director for the City of San Antonio’s Workforce Development Office which oversees RTW. “We see Ready to Work as having a true impact on our city, which is helping people overcome generational poverty one participant at a time.”
The study shows average entry-level wages by occupation, including management jobs starting at $26.29; life, physical and social science occupations beginning at $20.53; and community and social service occupations starting at $16.18 per hour. The study says that increased income for workers who complete their respective training programs through RTW will also result in additional economic activity as they spend money in the local economy, including supporting 5,560 additional jobs.
Nivin and Roman include analysis in other categories such as diversity, equity and inclusiveness. Women, the study shows, experienced wage increases in most categories like business and financial operations, healthcare and transportation industries. Men experienced wage gains across the board in categories like architecture and engineering, computer and mathematical occupations and sales.