Improve economic mobility and opportunity

A skills-first labor market means more opportunities for American workers.

Definition

What is economic mobility?

The ability to improve economic status in one’s lifetime or from generation to generation. Individuals, families and communities with economic mobility can access their full potential and improve their circumstances.

The American Dream is a broken promise for STARs

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Economic mobility is the cornerstone of the American Dream, yet for millions of workers across the country, that promise is out of reach.

There are 70+ million STARs — workers Skilled Through Alternative Routes — in the U.S. who have gained skills through military service, community college, talent development programs and bootcamps, partial college completion, or, most commonly, on-the-job experience, instead of through a bachelor’s degree.

Not that long ago, STARs provided employers with a reliable pipeline of skilled talent. In exchange, companies provided a pathway to upward economic mobility for STARs. Together, STARs and companies built a thriving economy where both sides prospered. But over the past 3 decades, skills-building paths outside of a bachelor’s degree have been overlooked and undervalued.

But recently, skills-building paths outside of a bachelor’s degree have been overlooked and undervalued.

Our labor market is failing STARs

Over the past 2 decades, STARs have been displaced from 7.4 million middle- and high-wage jobs.- The wage gap between STARs and workers with a bachelor’s degree has doubled over the last 40 years. Today, it takes a STAR 30 years to earn what a recent college graduate earns on day one.

Despite their in-demand skills, STARs’ wages are declining. STARs now earn less — when adjusted for inflation — than they did in 1976.

STARs’ barriers disproportionately impact racial minorities and women. Black, Hispanic and women STARs see even less economic mobility than white and male STARs.

STARs’ lack of mobility is sobering, but the problem is solvable

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STARs make up half of the U.S. workforce, so our economy doesn’t work without them. We can — and must — build a labor market that works for STARs in order to solve our country’s economic mobility problem.

3 million STARs currently work in high-wage jobs today, despite barriers to entry, and are proof of what is possible.

Additionally, Opportunity@Work’s research shows that more than 30 million STARs have the skills that qualify them for jobs paying 70% more than what they make today. What they need is greater access to those jobs. Providing that access requires reorienting our labor market around a fundamental value: that the skills you have matter more than how you got them.

Philanthropic investment is necessary to scale solutions to bring about this change, which will benefit STARs and businesses alike.

We can make an impact for STARs on three dimensions:

Rewire hiring practices to include STARs

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Enhance equity in the labor market

Accelerate solutions to meet the future of work

We need to accelerate employers’ shift to skills-first hiring. Analytics of STARs data, HR technology, and generative AI have given rise to new tools that can facilitate this, allowing employers to purposefully screenSTARs in rather than screening them out.

The current labor market fosters deep-rooted occupational segregation. Understanding the mobility patterns as they are —and where they should be — will help offer a more equitable transition for millions of Americans.

Both emerging and traditional industries are actively solving for the future of work. This presents an opportunity to influence how regional networks fill their pipelines and support their local talent – including STARs – for the better.

Our Solutions

STARs Research and Data

Our analytical and research capabilities inform the nation’s understanding of STARs' potential and uncover insights that show how to make positive economic change within regions and industries.

STARs Talent Category Narrative

We reverse misperceptions and correct the narrative about STARs and their skills through public advocacy, including our national advertising campaign, “Tear the Paper Ceiling.”

STAR-Inclusive Tech Tools

We scale skills-first solutions with our talent tech partners by delivering STARs data and insights – enhanced by generative AI – through our “STARSight” tools and APIs.

STAR-Centered Networks

Opportunity@Work activates multi-sector networks – such as our Tear the Paper Ceiling Coalition and our STARs Public Sector Hub – across public, private, nonprofit, and philanthropic organizations to pilot and mainstream skills-first practices.

Kelly and Danielle, STARs

The window of opportunity is open

Thanks to the growing coalition of skills-first leaders, we’re not starting from scratch. Strategic investments from the philanthropic sector can build on real momentum to accelerate change and scale skills-first solutions across the country.