Jobs for New York Task Force Retail Sector Development Initiative
In November 2014, Mayor de Blasio released New York City’s (NYC) comprehensive workforce development strategy, as recommended by his Jobs for New Yorkers Task Force (Task Force). The Task Force, which was established in response to growing income inequality in NYC, identified six industries that offer the strongest prospects for economic mobility and mutual employer-worker benefits through job quality improvements. The Capstone team was asked to provide recommendations on the design and development of the retail and food service sectors since these two industries were highlighted for their high employment, high-growth, and low-wages.
The first two sections of the report addressed the characteristics of the food service and retail industries. At a high level, some of the main challenges for food service businesses include problems with high turnover and employee retention, tough competition from other businesses and high operational costs. Consequently, tight cash flow and thin margins mean that any solutions targeting job quality in these industries must also consider how improvements can be attained alongside cost management techniques.
Similarly, in the retail industry, employers face tight margins, retention challenges and increased competition from e-commerce. These challenges have translated into low advancement opportunities and unpredictable schedules for retail workers. Like the food service industry, recommendations related to improvements in retail job quality must be connected to operational improvements as well.
The third section of the report explored best practices and approaches to the various ways to design a successful Industry Partnership. The fourth section of the report reviewed insights gathered in the first three report sections and provided discrete recommendations for the food service and retail Industry Partnerships. This was followed by the final section, which provided a list of areas for future research and consideration.