Benefits Cliffs as a Barrier to Career Advancement for Low-Income Adults: Insights from Employment Services Providers

Abstract

How do employment service providers explain benefits cliffs to clients who want to advance in their careers? To answer this question, the authors conducted three focus groups with a range of employment service providers. Focus group participants report that counselors and clients struggle to manage benefits loss because of a lack of clarity on program rules and difficulty finding appropriate jobs that pay enough to outweigh the loss of benefits. When advising clients about career advancement, counselors use a range of intake processes to determine clients’ immediate needs and assess their skills and occupational interests. Career counseling activities typically focus on short-term goals and immediate needs rather than longer-term career planning, though participants acknowledge the value of labor market information that shows the long-term gains of advancing up career pathways. The authors conclude with several recommendations to help counselors manage complex benefits eligibility rules, the short-term needs of clients who face barriers to employment, and labor market information to guide training and employment decisions.