The COVID-19 pandemic, and the resulting economic recession, have impacted employment in dramatic ways. In the United States, at the start of the pandemic, the unemployment rate more than tripled, disproportionately affecting some groups. Evidence on programs that have effectively improved employment and earnings for people with low incomes during past recessions and recoveries can help policymakers and practitioners target their resources as they seek to improve employment in the wake of the pandemic and beyond.

This brief highlights key findings from a related report that uses a literature scan and a meta-analysis to synthesize the information catalogued by the Pathways Clearinghouse to understand the interventions and types of services with the strongest evidence of improving employment, earnings, and related outcomes for people with low incomes during recessions and recoveries.

Research Questions

  • Do interventions designed to improve employment outcomes for people with low incomes show evidence of effectiveness during recessions and recoveries?
  • What specific types of interventions work to improve employment outcomes for people with low incomes during recessions and recoveries from recessions? Are specific types of interventions more or less effective during recessions or recoveries?
  • How should service providers consider altering operations in response to economic conditions?

Key Findings and Highlights

  • On average, interventions improve employment outcomes among people with low incomes during recessions and recoveries.
  • Specific types of interventions were especially effective during recessions and recoveries.
    • During recessions, interventions that primarily focused on case management or other supports, employment services, and work and work-based learning had evidence of improving outcomes.
    • During recoveries, interventions that primarily focused on education and training, work and work-based learning, employment services, case management or other supports, and incentives and sanctions had evidence of improving outcomes.
  • Providers can consider changing the types of interventions or services they emphasize based on economic conditions.
    • During periods of recession, when unemployment is increasing, practitioners and policymakers should consider placing more emphasis on case management or other supports, and less emphasis on education and training.
    • During periods of recovery, when the unemployment rate is falling, practitioners and policymakers should consider targeting resources toward interventions focused on education and training, work and work-based learning, employment services, incentives and sanctions, and case management or other supports.

Methods

This brief highlights key findings from a related report that uses a literature scan and a meta-analysis to synthesize the information catalogued by the Pathways Clearinghouse.

Citation

Rotz, Dana and Alexandra Stanczyk. (2021). Overview of Findings: What Works During Economic Recessions and Recoveries? Evidence from the Pathways Clearinghouse. OPRE Report # 2021-230, Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services.