Looking through the Holes in NYC’s Workforce Development Policy

At Jackrabbit LX, we understand that effective workforce development isn’t just about training- it’s a cornerstone for economic mobility and growth. As experts in scalable learning experiences and learning strategic clarity, we find NYCETC’s “Putting Our Dollars to Work” report particularly compelling because it reveals significant gaps and opportunities in New York City’s workforce development strategies. 

Our intention in sharing insights from this report is twofold: to illuminate areas where targeted, outcome-driven training solutions can bridge critical skill gaps, and to highlight the urgent need for continuous, lifelong learning infrastructure. 

By analyzing the report’s findings through our lens of scalable and efficient training models, we aim to spark meaningful dialogue around optimizing workforce investments, supporting the ‘missing middle,’ and building a resilient labor market for all New Yorkers.

Three insights from this report particularly resonate with our work in building learning programs that transform lives:

• • • NYC’s workforce system is fundamentally misaligned with the realities of modern work, concentrating 48% of its $640 million budget on youth while leaving the majority of working-age adults underserved- an approach that might have worked when careers followed linear paths but fails in today’s economy of constant transitions and reskilling needs.
    • The “missing middle”- working adults who need upskilling but don’t qualify for existing programs- represents exactly the population that benefits most from well-designed, employer-aligned, learner-optimized learning experiences that can be delivered at scale.
    • The fragmentation across three agencies (DYCD, HRA, and SBS) reflects a systems problem that learning infrastructure can help solve by creating consistent, coordinated pathways that transcend organizational boundaries.

Why Workforce Investment Matters More Than Ever?

New York City is home to one of the most dynamic labor markets in the world, yet many residents remain cut off from meaningful employment, fair wages, or the training needed to advance. With every elected city position up for grabs in 2025, the NYC Employment and Training Coalition’s (NYCETC) March 2025 report, “Putting Our Dollars to Work”, arrives at a critical juncture-offering an in-depth look at how the city allocates its workforce development dollars, and who benefits.

The post-pandemic economy has fundamentally altered work patterns, with remote and hybrid opportunities creating new pathways for some while deepening digital divides for others. Meanwhile, automation and AI are reshaping entire industries, making reskilling beneficial and essential for economic survival. 

Before we dive deeper into the findings and learnings from the report, let’s look at some hard hitting facts about New York City, which will help us analyze this report more deeply:

• • • NYC has a population of approximately 8.8 million people, the most populous city in the US by a big margin.
    • 61.7% of NYC population, i.e., 5.4 million, are of working age with approximately 5% unemployment rate, which is significantly higher than the national average of 4.1%.
    • Boasting a GDP of $1.28 trillion, NYC is the richest city in the world and could well be placed among the top 20 richest countries in the world.
    • With an average cost of living for an individual at $4000/month and median annual income of just $74,000, most New Yorkers are living paycheck to paycheck.
    • The top 20% of earners in NYC make at least 5.77 times more than the bottom 20%, highlighting significant income inequality.
    • Of those who are 25 years or older, only 43.4% have a college degree or higher, whereas 14.1% do not even have a high school diploma. 
    • While college graduates make $78,000 annually, high school graduates earn only $40,000 per year on average, putting those without a high school diploma at an even higher risk of extreme financial difficulty and poverty.

Who’s Being Served- and How?

NYC’s workforce funds are funneled primarily through three agencies:

• • • DYCD (Department of Youth and Community Development)
    • HRA (Human Resources Administration)
    • SBS (Department of Small Business Services)

The three-agency model reflects an outdated view of work and workers. Modern careers rarely follow linear paths from education to employment to retirement. Instead, they involve continuous transitions, pivots, and upskilling. Yet NYC’s system treats workforce development as discrete interventions rather than ongoing infrastructure. Cities like Singapore and Amsterdam have pioneered “lifelong learning accounts” that give workers credits for continuous reskilling-an approach NYC should seriously consider.

The report maps NYC’s workforce development investments across three key populations:

• • • Youth and young adults (under 25)
    • Priority adults (recipients of public assistance or residents of public housing)
    • General working-age adults (18–65, not receiving public benefits)

The data reveals a troubling pattern: NYC is essentially running a youth development program masquerading as comprehensive workforce policy. While investing in young people is crucial, the dramatic imbalance leaves the majority of the working-age population underserved. This approach might have made sense in an era of stable career trajectories, but today’s economy demands support across all life stages.

Workforce Policy Across Administrations (2002–2024): Learning from Fragmentation

From 2002 to the present, NYC’s workforce policy has undergone several strategic shifts. The early 2000s prioritized rapid job placement through a demand-driven, employer-centric lens, favoring efficiency and volume over long-term worker advancement.

By the mid-2010s, the city pivoted toward worker empowerment, emphasizing equity, training, and career pathways-particularly for underserved youth. Programs expanded, but outcomes for adults remained flat, and the focus drifted from general working-age populations. 

Most recently, beginning in 2022, the city centralized its fragmented efforts under a new coordinating office, aiming to align workforce programs with economic recovery, industry needs, and inclusive access. 

This administrative whiplash reveals a deeper problem: workforce development has become a political football rather than essential infrastructure. Each mayor has pursued their vision without building on predecessors’ successes or learning from failures. Contrast this with cities like Boston or Seattle, which have maintained consistent workforce strategies across multiple administrations through independent workforce boards with multi-year funding commitments.

Across these transitions, the core issue persisted: systemic underinvestment in the broad working-age adult population. It meant that, while youth programs flourished, millions of adults remained underserved, highlighting a persistent gap between vision and impact.

FY2024 Budget Snapshot: Following the Money

NYC allocated $640 million to workforce development in FY2024- just 0.6% of its $107 billion city budget. The bulk of this funding ($589 million) is concentrated in three agencies: DYCD, HRA, and SBS.

Here’s how those funds broke down:

The remaining $51 million were allocated to other smaller city agencies that operate workforce-related programs, including: Department of Education (DOE), New York City Economic Development Corporation (NYCEDC) & Mayor’s Office of Talent and Workforce Development (NYC Talent).

Bridging the Gaps: A Strategic Blueprint for Inclusive Workforce Development

NYC’s workforce system must evolve to meet the realities of a rapidly shifting labor market. Below, we break down the most pressing challenges and align each with actionable, scalable solutions that combine policy reform with smart learning design.

1. Underinvestment in General Working-Age Adults

Problem: Despite making up over half the labor force, general working-age adults receive only 16% of NYC’s workforce funds- most of which are tied to rigid federal grants like WIOA. 

Solution: Significantly increase city investment in this group, especially through accessible, credential-based pathways for high-demand industries such as healthcare, green energy, and tech. Prioritize flexible formats (e.g., part-time, online, modular) that allow working adults to learn while earning. 

2. The “Missing Middle” Problem

Problem: Workers who don’t qualify for youth or public assistance programs- career changers, part-time workers, caregivers, and reentrants- are largely excluded from current services. 

Solution: Design bridge programs and microcredential offerings that serve this diverse group. Offer stackable, short-term learning that is recognized by employers and tailored for real-world transitions (e.g., reentry, mid-career pivots, immigrant credential conversion). 

3. Persistent Racial and Geographic Disparities

Problem: Black and Latino New Yorkers face double the unemployment rates of their white peers. The Bronx continues to suffer high joblessness compared to other boroughs. 

Solution: Ground programs in community contexts. Partner with local organizations to co-design culturally relevant, neighborhood-specific solutions. Add wraparound supports like language access, childcare, and transportation. Use data-driven personas to personalize outreach and curriculum. 

4. Fragmented Governance Weakens System Performance

Problem: NYC’s workforce programs are spread across DYCD, HRA, and SBS- leading to duplication, misalignment, and missed opportunities. 

Solution: Build true cross-agency coordination under NYC Talent. Align goals, metrics, and budget priorities across agencies. Use common learning standards and integrated data dashboards to reduce friction and improve system-wide visibility and accountability. 

5. Lack of Employer Alignment and Feedback Loops

Problem: Training providers, employers, and city agencies operate in silos, each with different incentives and timelines- resulting in skills mismatches and underemployment. 

Solution: Create employer advisory boards that co-design curriculum based on real hiring needs. Define shared success metrics like wage gains, job retention, and advancement. Fund intermediaries to manage these relationships and ensure training programs lead to actual job placements. 

6. Outdated Learning Infrastructure and Delivery Models

Problem: Adult learners face barriers like rigid schedules, outdated training content, and a lack of learner support. Many city programs still operate with one-size-fits-all classroom models. 

Solution: Invest in modern learning platforms and “human infrastructure” (career navigators, employer liaisons, content designers). Use hybrid delivery, mobile-first content, and on-demand modules to reach learners at scale. Embrace just-in-time learning models that focus on speed-to-skill. 

7. Disconnect Between Education and Workforce Systems

Problem: High school graduates often face dead ends if they don’t go to college, while adult learners struggle to re-enter education or reskill mid-career. 

Solution: Build seamless pathways from K-12 to adult education and workforce training. Expand initiatives like Student Pathways to include community colleges, apprenticeship programs, and lifelong learning accounts that support career-long upskilling. 

 8. Insufficient Funding and Strategic Prioritization

Problem: NYC spends less than 1% of its budget on workforce development- less than it does on parks. The current funding model undervalues workforce as economic infrastructure. 

Solution: Treat workforce development as a capital investment. Launch a “Talent Investment Fund” that pools public, private, and philanthropic dollars to support innovation, scale effective models, and respond quickly to labor market shifts.

The National Context: What NYC Can Learn from Other Cities

While NYC’s challenges are significant, other cities offer promising models:

• • • Seattle’s “Seattle Jobs Initiative“ demonstrates how sustained, employer-driven partnerships can create career pathways in high-growth sectors while addressing equity goals.
    • Austin’s “Opportunity Austin“ shows how regional economic development and workforce development can be integrated to attract businesses while preparing local workers.
    • Boston’s “SkillWorks“ illustrates how philanthropy can catalyze systems change by funding coordination and innovation that the government alone cannot achieve.

The common thread: successful workforce systems treat economic development, education, and social equity as interconnected challenges requiring coordinated solutions.

Conclusion: A Wake-Up Call in an Election Year

“Putting Our Dollars to Work” isn’t just another budget breakdown-it’s a call to action. As NYC approaches a pivotal election, the report urges leaders and voters alike to reconsider how and where we invest. Are we preparing New Yorkers for tomorrow’s jobs-or just managing today’s crises?

But the stakes extend beyond NYC’s borders. As automation accelerates and the nature of work continues evolving, every major city faces similar choices. NYC’s decisions will influence national workforce policy, just as its innovations in other areas have shaped urban policy nationwide. The city has an opportunity and responsibility to model what inclusive economic development looks like in the 21st century.

The path forward requires three fundamental shifts:

• • • From crisis management to infrastructure investment – Treating workforce development as essential infrastructure, not discretionary spending
    • From population-specific programs to universal access – Creating systems that serve all workers throughout their careers
    • From agency-driven to employer-anchored approaches – Aligning training with real job opportunities and career pathways

The 2025 elections offer a rare opportunity for systemic change. Voters should demand that candidates articulate not just what they’ll fund, but how they’ll transform NYC’s approach to preparing workers for an economy in constant flux. It’s time for bold, inclusive investments that reflect both the challenges of the present and the promise of the future. Workforce development is not a cost- it’s an investment in our collective potential.

At Jackrabbit LX, we help organizations across healthcare, education, government, manufacturing, and beyond tackle complex workforce challenges- from designing scalable credential programs to rapidly building training after safety incidents. Our work often centers on building scalable learning programs, clarifying strategy through our GPS framework, and strengthening internal capacity to deliver training that drives real outcomes. These challenges may look different in every context, but the need for thoughtful, systems-level solutions is universal. If your organization is navigating similar complexity, we’d love to help. Let’s build learning that works- for everyone.

Read the full report at nycetc.org.