JPMorgan Chase Invests $350 Million to Help Workers Improve Technical Skills and Find High-Wage Jobs

JPMorgan Chase announced a new five-year, $350 million investment in work-force efforts to support community-college graduates and career-pathway programs. The new investment is a follow-up to a five-year, $250 million commitment made in 2013.

The largest portion of the new funds, $200 million, will help pilot education and training programs that could lead to high-wage digital and technical jobs. The remaining $150 million will go toward boosting existing training programs and funding labor-market research studies.

Research says hundreds of millions of workers globally may need to change jobs or upgrade their skills to keep up with the times. Jennie Sparandara, who leads JPMorgan’s global work-force portfolio, said the company increased its commitment to the “New Skills at Work” program because more people need help preparing for the jobs of tomorrow.

“There are good jobs for people at the sub-bachelor’s degree level,” she said, but those jobs aren’t being filled “because there’s a labor-market disconnect.” She blames the skills gap and problems with global economic mobility.

With the investment, “the point is to not just get people to that first job,” she added, “but to really think about how they continue to build and upgrade their skills for real career advancement and real wage progression.”

Skills, Not Degrees

Jamie Dimon, the bank’s chief executive, said in a news release that the new world of work is about skills, not necessarily degrees. He continued: “Unfortunately, too many people are stuck in low-skill jobs that have no future, and too many businesses cannot find the skilled workers they need. We must remove the stigma of a community college and career education, look for opportunities to ‘upskill’ or ‘reskill’ workers, and give those who have been left behind the chance to compete for well-paying careers today and tomorrow.”

The first effort by JPMorgan, in 2013, and the revitalized program is centered on making specific long-term investments with community colleges. Leading examples include efforts at Columbus State Community College, Dallas County Community College District, and Northern Virginia Community College.

Also, JPMorgan is continuing its partnership with the Aspen Institute to recruit around 200 current, aspiring, or recently appointed community-college presidents to help them develop curricula, share best practices with other leaders, and improve community-college graduation rates and post-graduation success in securing good jobs.

“The quality of the leader at a community college is directly related to how well that institution connects with businesses and employers,” Sparandara said.

JPMorgan will also partner with the Massachusetts Institute of Technology. MIT’s Initiative on the Digital Economy will help JPMorgan use research findings to help the company assist its own workers, Sparandara said. “Our aim is to provide a detailed understanding of how technologies including A.I. are transforming jobs, skills, and the work force,” said Erik Brynjolfsson, the director of the MIT institute, in a news release.

To measure the success of the five-year commitment, Sparandara said they want to know how many workers improved their credentials, if on aggregate they earned more money, and how many businesses participated and benefited from the program.