3 posts categorized "Workforce Development"

[Review] 'The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class — and What We Can Do About It'

August 10, 2017

In The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class — and What We Can Do About It (Basic Books: 2017), urban studies theorist Richard Florida offers a mea culpa of sort for the back-to-the-city movement he has long championed. In books such as The Rise of the Creative Class, and How It's Transforming Work, Leisure and Everyday Life (Basic Books, 2002) and Cities and the Creative Class (Routledge, 2005), Florida argued that, if cities hoped to thrive in a competitive global economy, they needed to attract and retain talent — "[t]he knowledge workers, techies, and artists and other cultural creatives who [make] up the creative class.:

Book_the_new_urban_crisis (002)If nothing else, Florida's timing was impeccable. By 2000, the ranks of the creative class in the United States had grown to 40 million — a third of the U.S. workforce — and many of its members had left the suburban or rural communities of their childhood and headed to cities such as New York, Boston, Washington, D.C., San Francisco, Los Angeles, and Seattle, where they moved into neighborhoods that had been written off by the professional class and city officials. That story was repeated around the globe, as knowledge workers and creatives flocked to already vibrant cities such as London, Paris, and Tokyo; booming Asian metropolises such as Hong Kong, Shanghai, and Seoul; and sprawling, emerging mega-cities such as Lagos, Mexico City, and Mumbai.

Indeed, today — in a stunning illustration of the power of urban centers to transform societies through what Florida dubs the "3Ts of economic development" (technology, talent, and tolerance) — more than half the population of the globe lives in cities, and the United Nations estimates that by 2050 upwards of 70 percent of the global population will live in urban areas. Little wonder, then, that in recent decades urbanists have proclaimed "the triumph of the city" (the title of an excellent book by Harvard economist Edward Glaeser), or that the future of humanity is urban.

And yet this newfound appreciation for the richness, convenience, and stimulation provided by city living has not been without costs, as gentrification, rising rents, and real estate speculation have squeezed blue-collar and service workers out of neighborhoods and livelihoods, contributed to the re-segregation of public schools, and driven huge increases in wealth and income inequality. It is an economic failure that we should have seen but didn't, and from the Brexit vote in England, to the election of Donald Trump, to the growing popularity of far-right populist parties in Europe, we are living with the consequences of that failure. The New Urban Crisis is Florida's attempt to diagnose where things went wrong — and offer a prescription for how we can recover an urbanism that works for all people, not just elites and the creative class.

If that's too conceptual, allow me an anecdote by way of illustration: As I was finishing Florida's book in Washington Square Park in Manhattan earlier this summer, surrounded on all sides by buildings belonging to New York University (where Florida is a fellow), I could see, firsthand, his 3Ts at work. Across the way, diverse crowds of college students walked to their next class or appointment while sending photos to friends on the latest app; on the corner, a well-heeled couple waited impatiently for their Uber driver; and, a group of foreign tourists were listening to their guide about the history of the square. To the "urban optimist," it was a perfect illustration of "the stunning revival of cities and the power of urbanization to improve the human condition," while for the pessimist, it might suggest just how profoundly "modern cities [are] being carved into gilded and virtually gated areas for conspicuous consumption by the super-rich...."

And that's not the half of it. The juxtaposition of boundless opportunity and desperate poverty found in so many cities has led to mounting alienation and resentment. Indeed, Florida, who counted himself among the optimists "not too long ago," argues that to truly understand this new urban crisis (as opposed to the mid-twentieth-century urban crisis of deindustrialization and white flight), we need to recognize and come to grips with the fact that cities are both "the great engines of innovation, the models of economic and social progress," and "zones of gaping inequality and class division."

Florida identifies five key factors that have combined to create this crisis: 1) the growing economic gap between so-called superstar cities — where a disproportionate share of high-value industries, high-tech startups, and top talent are concentrated — and struggling industrial cities, or what he calls "winner-take-call urbanism"; 2) the steep rise in urban housing costs, which has resulted in the displacement of countless numbers of blue-collar and service workers, not to mention the poor and disadvantaged; 3) a rapid increase in inequality and segregation driven in part by "sorting" — a phenomenon in which creatives and the well-off congregate in neighborhoods formerly favored by the working middle class, creating a patchwork of relatively small areas of privilege surrounded by large tracts of poverty; 4) the growing crisis in the suburbs, where problems typically associated with urban areas — poverty, economic insecurity, crime, and segregation — are growing and becoming entrenched; and 5) the urbanization of the developing world, often without the improvements in standards of living that accompanied an earlier wave of urbanization in the U.S., Europe, Japan, and China.

At the core of these challenges, writes Florida, is an economic divide that shapes our built environment and determines where we live. "Simply put," he adds, "the rich live where they choose, and the poor where they can." This reality creates a host of related problems with both short- and long-term consequences (e.g., "people who live in far-flung suburbs and endure long commutes have higher rates of obesity, diabetes, stress, insomnia, and hypertension and are more likely to commit suicide or die in car crashes").

Florida illustrates each of these challenges using the latest demographic and economic data, much of it pulled from the Martin Prosperity Institute at the University of Toronto, which he leads. In fact, the book is filled with interesting graphs and charts, including one showing the number of houses one could buy in various U.S. cities for the price of a single apartment in Manhattan's chi-chi SoHo neighborhood (Memphis, Tennessee, tops the list with 38!). He also highlights his institute's New Urban Crisis Index, which reveals high levels of combined economic segregation, wage inequality, income inequality, and housing unaffordability not only in superstar cities such as Los Angeles, New York, and San Francisco, but in Chicago, Miami, and Memphis. (While interesting, many of the maps and charts could have benefited from better graphic design, and most of the data cited are for U.S. cities — a weakness in a book that purports to be about global trends.)

But what most readers will be looking for is a solution (or solutions) to this complex crisis of inequality. On that score, the glass is half full (or empty, depending on one's perspective). Florida points to the tension between the kind of "urban density and clustering that innovation and economic progress require" — and a "New Urban Luddism" — as the greatest impediment to the kind of equitable development and opportunity needed to overcome rising inequality. He has little sympathy for these twenty-first-century Luddites, who live in well-off communities and neighborhoods and are quick to say no to projects that may pose inconveniences but whose benefits in terms of the greater public good are indisputable. As he writes at one point, "If we are to...enjoy a widely shared and sustainable prosperity, we must become a more fully and fairly urbanized nation."

With that tension in mind, Florida sets out seven strategies designed to foster a "more productive urbanism for all": 1) make clustering work more efficiently by switching from a property tax to a land value tax; 2) invest in urban infrastructure to support greater density and growth; 3) build more affordable housing; 4) convert low-wage service jobs into living-wage work by raising the minimum wage; 5) address urban and suburban poverty by investing in people and places and providing a universal basic income; 6) shift development policies from nation-building to city-building and mobilize behind a global effort to build more resilient, prosperous cities; and 7) empower cities and communities by devolving political power from states and national governments to cities themselves.

As wide-ranging as these solutions are, the recommendations at the core of Florida’s books are fairly straightforward: governments and the private sector need to make investments in new and upgraded infrastructure and adopt tax and land-use policies that encourage increased density. Around the world, he writes, "strategic investments in basic infrastructure can help connect [poor people] to jobs; leverage their talent and productive capabilities and enable them to become more fully engaged; and, ultimately, turn the vicious cycle of urban isolation and poverty into a virtuous cycle of urban progress." In an American context, that means moving beyond the longstanding practice of encouraging suburban sprawl and expansion into rural areas and, instead, putting a new focus on the country’s neglected urban cores — a re-urbanization movement, if you will — that creates jobs and opportunities for all Americans.

While The New Urban Crisis may not be the twenty-first-century equivalent of Jane Jacobs' The Death and Life of Great American Cities or Lewis Mumford's The City in History, it is an interesting and highly readable update of Florida's creative class concept and an excellent introduction, for those not familiar with his earlier work, to how a new generation of knowledge workers and creative class types are shaping our economy, our cities, and, for better or worse, our future. The challenges posed by this development are profound, both in the U.S. and around the world, and The New Urban Crisis is a welcome contribution to the conversation around the best ways to address those challenges.

Michael Weston-Murphy is a writer and consultant based in New York City. For more great reviews, visit the Off the Shelf section in PND.

Most Popular PhilanTopic Posts (September 2016)

October 01, 2016

As we enter the homestretch of another year that has flown by, we have good news and bad news. First the bad: There are still thirty-seven days left in this election cycle. On the good-news front, you all dug into the PhilanTopic archive and surfaced a couple of wonderful items from the past, including a terrific post by Small Change author Michael Edwards (one of three in an excellent series Michael wrote for us) and a sharp review of Fareed Zakaria's In Defense of a Liberal Education by Michael Weston-Murphy. You also liked Stephen Pratt's sensible advice vis-à-vis metrics and measurement, Kris Putnam-Walkerly's exhortation to grantmakers, and Matt's Q&A with Markle Foundation president Zoë Baird. As for that pesky thing called time, I like (but don't always follow) the great Satchel Paige's advice: Don't look back. Something might be gaining on you....

What did you read/watch/listen to in September that made you pause, made you think, made you hopeful? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

5 Questions for...Zoë Baird, CEO/President, Markle Foundation

September 12, 2016

We've all heard that necessity is the mother of invention. And like most clichés, there is plenty of truth to it. But for every other UpWork professional using Uber to a get to a client meeting, there's a CEO who would prefer to convert that freelancer into a full-time employee. Or so shows a recent survey conducted by the Markle Foundation, the Aspen Institute's Future of Work Initiative, Burson-Marsteller, and TIME magazine. While employers recognize the benefits of hiring "contingent workers" and embrace the principles of the "on-demand economy," the survey found, among other things, that 56 percent of employers believe full-time employees provide more long-term value to their businesses and are more invested in the company.

Recently, Philanthropy News Digest spoke with Zoë Baird, who has led the Markle Foundation since 1998, about the results of the survey, the foundation's Skillful initiative, and how the job market in the U.S. is changing.

Headshot_Zoe Baird_MarklePhilanthropy News Digest: Markle recently released the results of a Workforce of the Future Survey, which examined new employment models in what many people have taken to calling the "gig economy." What, if anything, surprised you about the findings?

Zoë Baird: What really surprised us was the extent to which employers preferred to have full-time employees. It's clear that employers are using independent contractors, but over 60 percent of them really prefer full-time employees, which we view as a very positive finding. The concern that twenty-first century employers have no loyalty to their employees did not come through in the survey. Employers want full-time employees, and the main reason they hire independent contractors seems to be that they need specific skills or have a surge in work and need to hire people faster than the people they already have can acquire new skills.

PND: Did respondents say why they prefer full-time employees to part-time or contract employees?

ZB: Loss of productivity and the cost of replacing a skilled employee are factors, but the main reason seems to be that full-time employees are more loyal and committed than part-time employees. And that fits well with the work we are doing with Skillful, which is designed to get people who have a high school diploma but no college degree on a path to attain the skills they need to thrive in the twenty-first century economy.

PND: You don't have to look far these days to find someone willing to talk about the lack of skilled employees in the marketplace. Have we made progress in closing the so-called skills gap?

ZB: What we’re finding, both in the work we’re doing and in the research, is that jobs and the nature of work are changing, but people aren't getting retrained fast enough to keep up with those changes. Increasingly, employers are eager and willing to re-train workers, whether or not those workers have a college degree. And what we're trying to do is to work with employers to define the skills they need and then help job seekers demonstrate to potential employers that they have those skills.

With Skillful, we've created a platform that lets everyone, employers and job candidates, see what they need to see. Individuals who are interested in a career path can see what a particular job pays and watch videos showing them what it looks like to do a particular job. We also have videos of people talking about what a job in, say, advanced manufacturing is all about. People often end up doing the same kind of job a parent did, in part because it's often the path of least resistance. Skillful enables you to see what different jobs look like and what they pay. Then you can sit with a career counselor at a workforce center, or at Goodwill, which is partner­ing with us on the initiative, and talk with them about how to get the training you need to get onto a career path that leads to a brighter future. It's designed to be a "begin-again" system and remove the mystery of how you go about switching gears.

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