By Erica Waterford, Vice President of Education & Employment, First Place for Youth 

American businesses are facing a critical labor crisis. In 2025, 70% of U.S. employers reported being unable to fill job vacancies—nearly double the rate from a decade ago.¹ The construction industry needs to attract 499,000 new workers in 2026 alone.² Healthcare faces catastrophic shortages, with more than 40% of nurses considering leaving the profession.³ Manufacturing struggles with vacancy rates above 5%, and skilled trades positions in HVAC, plumbing, and electrical work remain desperately unfilled.⁴ 

Meanwhile, 15,379 young adults aged out of foster care in 2024—motivated, resilient individuals seeking pathways to self-sufficiency.⁵ Yet only 56% of former foster youth are employed by age 21,⁶ and those who do find work earn 50% less than their peers.⁷ 

This disconnect represents a massive, missed opportunity. The solution isn’t complicated: it requires partnership, not charity. 

The Talent You’re Missing 

At First Place for Youth, we’ve spent nearly three decades supporting young adults aging out of foster care, and we’ve learned something employers need to know: these young people aren’t just capable—they’re exceptional employees when given the right support structure. 

Independent research from Chapin Hall at the University of Chicago validates this. In a rigorous evaluation of 2,598 young adults in our My First Place program, researchers found that program completers were 1.7 times more likely to be employed than non-participants in the year they exited—and 1.5 times more likely to be employed three years later. Even more striking: young people who completed our program earned 65% more than non-participants upon exit and 37% more three years later.⁸ 

Our Earn & Learn workforce development initiative shows similar results. When we partner with employers like CVS Health, YMCA, and Coffee With A Cause to create pre-apprenticeship and apprenticeship pathways, foster youth don’t just succeed—they outperform. Youth in our Earn & Learn placements earn an average of $1.50 more per hour than their peers in traditional employment, translating to $3,500 more annually. They’re three times more likely to earn industry-recognized credentials and show wage growth of $2.50 per hour during training, compared to $1.50 for peers in other programs. 

These aren’t outliers. They’re the predictable result when you combine motivated young people with structured training, supportive services, and real career pathways. 

Why the Traditional Hiring Model Fails Foster Youth 

The barrier isn’t talent—it’s infrastructure. Foster youth aging out at 18 face challenges that middle-class young adults rarely encounter: no family financial safety net, unstable housing, limited professional networks, and some trauma histories that – with support – can be worked through. 

Traditional hiring processes screen out these young people before they can demonstrate capability. But what employers miss is this: these same young people have developed remarkable resilience, adaptability, and problem-solving skills. They’ve navigated complex bureaucratic systems most adults never encounter. They want careers, not just jobs, because they understand economic stability isn’t optional. 

The Partnership Model That Works 

Our CVS Health pharmacy technician partnership illustrates what’s possible. CVS provides job-specific curriculum, eight weeks of paid work experience, and direct-hire pathways. We provide housing stability, case management, career coaching, and barrier removal. Thryv Consulting delivers customized training and workplace readiness coaching. 

The result: young people complete the program, earn pharmacy technician certification, and get hired—often at retention rates of 95% among those hired through the partnership. CVS gains a diverse talent pipeline for positions where demand outpaces supply.⁹ The young adults gain $40,000 to $44,000-per-year careers with advancement potential. 

Similar models work across industries. Our YMCA partnership creates associate teacher apprenticeships. Coffee With A Cause trains Hospitality Specialists and Information Technology Specialists. Rising Sun Center for Opportunity provides construction pre-apprenticeships. The formula is consistent: employers provide what they do best (training and employment), community-based organizations provide what we do best (wraparound support), and training partners provide specialized instruction. 

The Business Case 

Beyond solving talent shortages, hiring foster youth makes financial sense: 

• Federal tax credits: The Work Opportunity Tax Credit (WOTC) provides up to $2,400 per qualifying employee, including current and former foster youth. Employers file IRS Form 8850 within 28 days of hire to claim the credit.¹⁰ 

• Wage subsidies: California’s Opportunity Youth Apprenticeship grants provide up to $6,000 per pre-apprentice for training and supportive services. Youth WIOA funding offers additional subsidies. Some workforce boards provide 100% wage subsidies for foster youth employment.¹¹ 

• Reduced recruitment costs: Partnering with organizations like ours means pre-screened, pre-trained candidates ready for employment. We handle recruitment, vetting, and initial training—dramatically reducing your time-to-hire. 

• Superior retention: The Chapin Hall study found that longer program stays, planned exits, and transitions to stable housing were all associated with higher employment rates and earnings¹²—factors that translate to better employee retention for hiring employers. 

What Employers Should Do Now 

First, partner with community-based organizations that specialize in this work to build pre-apprenticeship pathways. Traditional “apply online, start Monday” hiring doesn’t work for young people who need time to address transportation, childcare, or housing barriers. Pre-apprenticeships provide that runway while participants earn stipends. 

Second, develop trauma-informed management practices for your staff. Foster youth may need workplace accommodations for trauma histories and patience as they develop soft skills many young adults learn from family. Trauma-informed management is about clear communication, consistent expectations, and understanding that mistakes are learning opportunities. 

Third, think long-term. These young people aren’t stopgaps—they’re future assistant managers, shift supervisors, and trainers. Invest in their development and you’ll build loyalty that’s increasingly rare in today’s workforce. 

A Workforce Waiting to Be Tapped 

The construction industry needs nearly half a million workers annually. Healthcare faces critical shortages in nursing, pharmacy, and allied health professions. Yet approximately 15,000 to 20,000 young adults age out of foster care each year. 

At First Place for Youth, rigorous third-party research has proven the model works. Chapin Hall’s evaluation of 2,598 participants demonstrates that young people who complete our program achieve employment and earnings outcomes that persist years after exit. Our 259 Earn & Learn participants are thriving, earning living wages, gaining credentials, and building careers. The employers who partner with us aren’t doing charity work—they’re solving their talent shortage with a reliable pipeline of trained, motivated workers. 

The question isn’t whether foster youth can succeed in your workforce. Independent research proves they can—and do. The question is whether you’re willing to partner with organizations that know how to make it work. 

America’s skills gap won’t be solved by chasing the same shrinking talent pools everyone else is competing for. It will be solved by expanding who we see as valuable workers and building the support systems that allow untapped talent to thrive. 

Foster youth are ready to work. Are employers ready to meet them halfway? 

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Erica Waterford is Vice President of Education and Employment at First Place for Youth, a nonprofit that provides housing, education, employment, and case management support to foster youth ages 18-24. She oversees workforce development partnerships with employers including CVS Health, YMCA, Coffee With a Cause, and others. 

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