June 7, 2019
In the last survey round we had 230 portfolio companies weighing in from across the industry spectrum. Our questions again focused not only on the number of jobs created or retained as a result of our investment and the company’s growth, but also on the secondary effects of those jobs. We uncovered some interesting comparisons between our last two survey periods, but overall what we found continues to back our central belief – that a good job can have a core stabilizing effect on individuals, families, communities and local economies.
A quick glance at the last survey findings of the year shows a similar picture to what we found at midyear. The vast majority of the businesses we invest in offer strong wages, comprehensive benefits – including health insurance, retirement savings plans and performance-based bonuses – and employee training and development.
As we dug into the findings, we began to see a few outliers. In our most recent survey, the number of jobs supported soared by 15 percent since the previous survey. Is this reflective of a robust economy – and businesses up and down Main Street, in urban cores and rural America – gaining even more steam? Could be. Regardless of the reason – because we know that a good-paying job is critical to economic security – this was reinforcement that our way of investing in the growth of job-generating businesses is working.
We also found a pronounced uptick in job accessibility. Nearly 90 percent of all companies at year end reported that at least some of their jobs were accessible to those with a high school degree or equivalent, compared with 81 percent at midyear.
Lower barriers to entry associated with accessible jobs mean more people may have the opportunity to earn a paycheck and provide for their families. This impacts schools, housing, health care, and services of every kind and stripe. Pulling more Americans into the workforce just makes sense – especially at a time when workforce participation rates have been lingering around a four-decade low.
While average wages in the latest survey fell 4 percent from our last survey, at more than $53,600 they still trend much higher than the average national full-time wage of $46,444. Overall, the jobs in our portfolios are higher-paying, benefit-laden, attainable jobs. A good mix when it comes to economic inclusion and the factors that help form the foundation of healthy and resilient households and communities.
As we look back at some of our early 2019 investments, though we don’t yet have formal survey results, we can anticipate more of the same characteristics that unlock impact potential. A biotech company in rural Georgia is expanding its headquarters and creating as many as 50 new jobs. Three-fourths of these positions will be accessible, helping to grow the local work force. All will include specialized training to help close any local skills gaps and ready employees for growth and upward mobility.
In Las Vegas, a manufacturing company is adding 50 high quality, skilled jobs, after retaining nearly 100 others. Training offers the opportunity for significant career advancement and income mobility, especially important in an area of the country where wage growth has been limited.
Stay tuned for our mid-year 2019 survey results, where we’ll confirm how companies like these and others are expanding opportunities in distressed communities and powering local economies.
The investments, portfolio companies and recommendations listed on this website represent only a sample of companies that have received investment capital from Advantage Capital-related entities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities highlighted herein or contained in any other information provided by Advantage Capital. Past performance is no guarantee of future results. For a full list of companies, please click here.
