Subsidized Employment: A Proven Strategy to Aid an Equitable Economic Recovery

A year after the start of the COVID-19 pandemic, millions of individuals remained out of work. This report presents data on labor market weakness and describes how the COVID-19 recession has exacerbated inequality and how the threat of long-term unemployment particularly impacts people of color. This report makes the case for a permanent subsidized employment program to respond to short-term needs and support disadvantaged workers even in economically better times. It highlights research on the benefits of subsidized employment for program participants and communities. It also highlights lessons learned from the TANF Emergency Fund, enacted during the Great Recession, and the value of subsidized employment in hard economic times as a means to recover from the COVID-19 economic downturn.