FACT:Springfield has the lowest rate of employment in New England

Jobs in Springfield, Massachusetts: Understanding and Remedying the Causes of Low Resident Employment Rates 

Federal Reserve of Boston, 2010 

FACT: Families NOT Earning an Economic Independence

Wage [1]MEDIAN INCOME

Neighborhood Number of Households

Household Income Family Income

Nation 112,611,029 $51,425 $62,363

Massachusetts 2,465,654 $64,496 $80,822

Citywide 56,055 $34,113 $41,476

South End 1,484 $14,764 $13,962

Brightwood 2.003 $15,573 $19,247

Memorial Square 2,363 $16,226 $17,540

Maple High/Six Corners

3,737 $17,283 $17,583

Metro Center 4,531 $21,161 $20,184

McKnight 2,866 $24,909 $27,009

Bay 2,347 $26,563 $27,448

Upper Hill 3,281 $32,778 $35,360

[1] Census, America Community Survey (2009) 2005-2009 Median Income

• Example: Health and social assistance jobs (2006)

– 10,300 jobs in Springfield

– Only 1,500 held by Springfield residents

Skills Gap

The Need

• Entry level jobs matched to residents in need of employment

• Place-based jobs for the center city

• Jobs that provide a living wage• Revitalized, healthy neighborhoods with higher employment

The Available Resource:Anchor Institutions

• $1.5 billion a year in goods and services– Spent mostly outside the region

• Estimate: 90% spend outside the region

• Can we harness this for job creation?

A National Model for Job Creation:

Cleveland’s Evergreen Cooperatives

• A network of worker-owned green businesses supported by anchor institutions– Cleveland Clinic, Case Western University

• Economic development in Cleveland University Circle, with poor surrounding neighborhoods:– $18,500 median household income– unemployment 20%

• Providing jobs for hard-to employ people– 50% of employees are formerly incarcerated

Cleveland’s Evergreen Cooperatives

Launched 2009-2011

• Evergreen Cooperative Laundry• Ohio Cooperative Solar• Green City Growers Cooperative• Evergreen Business Services• GUC Neighborhood Voice

Pipeline

• 3-4 Next-Generation Businesses Annually

Key Lessons

• Anchor institution participation ensures steady demand

• Cooperatives are part of a business group that provides support, training, helps raise capital

• Long-term commitment to neighbor-hoods due to worker ownership

Wellspring Development Model

• Shift anchor institution purchases to center city neighborhoods

• Create a network of worker-owned companies– Place based – Provide a livable wage and benefits– Build assets

• Provide job training in skills and self-management

• Organize strong community ownership• Green development for healthy environment

Wellspring InitiativePartner Organizations

 Lead Agencies

Center for Public Policy and AdministrationUniversity of Massachusetts Amherst

Center for Popular EconomicsUniversity of Massachusetts Amherst

Partners for a Healthier Community

Anchor Institution Partners

Baystate HealthMassachusetts Higher Education Consortium

Providence Health SystemSpringfield College

Springfield Technical Community CollegeUniversity of Massachusetts Amherst

Western New England University

Community Partners

GreenWorksJobs with Justice

New North Citizens CouncilPioneer Valley AFL-CIOPioneer Valley Project

Development and Technical Partners

Common CapitalFederal Reserve Bank of Boston

Michael Kane ConsultingRegional Employment Board of Hampden County

Funding Partners

Baystate HealthMassMutual Foundation

Providence Health SystemRegional Employment Board of Hampden CountySpringfield Technical Community College

Third Sector New EnglandUnited Way of Pioneer ValleyUniversity of Massachusetts

Timeline2012

Research, development and finance

2013Creation of the first cooperative business