How Workforce and Economic Policy Can Work Together

The Core Premise:

The cost of living crisis is not just about wages—it’s about the entire economic ecosystem. Housing, wages, job accessibility, and affordability are deeply connected, and workforce policy needs to be designed in tandem with:

• Regional economic planning—ensuring that new jobs align with affordable housing and transit access.
• Public-private collaboration—employers, governments, and communities working together on sustainable solutions.
• Long-term affordability strategies—policies that address structural cost drivers, not just short-term relief.

Public-Private Partnerships in Cost of Living Solutions

The cost of living crisis is straining economies worldwide, with housing, wages, and job accessibility becoming increasingly intertwined. Workforce policies, economic planning, and affordability strategies must be designed in tandem to create long-term solutions, rather than focusing solely on short-term relief.

According to Food Banks Canada's Hunger Count 2024 report, there were over 2 million visits to food banks across the country in March 2024, marking the highest number ever recorded for a single month. This represents a 6% increase from March 2023. [Source]

In the United States, despite a booming economy in 2024, many Americans report not feeling the benefits, as inflation, housing shortages, and wage stagnation continue to challenge economic stability. [Source]

At the same time, public-private partnerships (PPPs) are evolving to become a key part of the solution—leveraging private sector innovation, investment, and efficiency alongside public sector oversight and long-term planning. By integrating regional economic planning, workforce policy, and affordability measures, PPPs offer a sustainable option for tackling cost-of-living pressures.

However, to maximize their impact, these partnerships must be carefully structured to ensure effectiveness, alignment of objectives, and optimal resource utilization for high-quality outcomes. Today, we'll look at some practical steps that might further enhance the effectiveness of PPPs, contributing to a balanced strategy for addressing the cost of living challenge.

Building on Progress: Strengthening Public-Private Partnerships for Greater Impact

Public-private partnerships (PPPs) have been instrumental in addressing the cost of living crisis in the past. Notable initiatives include the Low-Income Housing Tax Credit (LIHTC) program in the United States, which has facilitated the development of over 3.85 million affordable apartments since its inception in 1986. [Source]

Despite these efforts, challenges persist. The Congressional Budget Office reports that PPPs account for only 1% to 3% of spending on highway, transit, and water infrastructure, indicating underutilization in critical sectors. [Source]

Additionally, concerns about cost efficiency have arisen. For example, in the UK, Private Finance Initiative contracts have resulted in payments averaging more than three times the cost of construction. [Source]

While existing PPP initiatives have laid the foundation for public-private collaboration, a stronger focus is needed on regional economic planning to ensure that job creation aligns with affordable housing and transit access.

To enhance the effectiveness of PPPs, it is essential to address these challenges through improved policy frameworks, increased transparency, and a focus on equitable outcomes.

Key Considerations for Strengthening Public-Private Partnerships

While successful collaborations highlight the potential of PPPs, they must evolve to better integrate workforce planning, economic policy, and affordability strategies. Several key factors must be considered:

Regional Economic Planning: Workforce policy should align with housing and transportation initiatives. For example, only 42% of U.S. households earning below the median income live near accessible public transit, limiting job opportunities and economic mobility. [Source]

Sustainability Over Short-Term Relief: Long-term affordability strategies must be prioritized, ensuring that housing, transportation, and workforce development initiatives address structural cost drivers rather than providing temporary relief. [Source]

Community Engagement: Engaging local communities ensures that initiatives reflect real needs and do not create unintended disparities. [Source]

Institutional Capacity: Building on existing public sector expertise in contract management, risk assessment, and stakeholder engagement helps foster even stronger, more effective partnerships. [Source]

These considerations reinforce the need for PPPs that are not only efficient but also aligned with broader economic and workforce development strategies.

Strategies for Optimizing Public-Private Partnerships

To ensure PPPs effectively address the cost of living crisis, policymakers should focus on integrating workforce policy with regional economic planning and long-term affordability measures.

• Develop Clear Policy Frameworks: Establish stronger guidelines for transparency, accountability, and performance metrics to ensure effective collaboration.
• Improve Workforce-Housing Alignment: Encourage partnerships that link affordable housing developments with job centers and transit hubs, reducing economic displacement.
• Expand Incentives for Private Sector Participation: Targeted tax incentives, grants, or subsidies can help align private investment with public interest objectives.
• Enhance Institutional Capacity: Offer training opportunities that build on the existing expertise of public officials, equipping them with additional tools to confidently manage complex PPPs.
• Leverage Data and Technology: Improve data-sharing agreements between the public and private sectors to enhance decision-making and project outcomes.
• Encourage Cross-Sector Collaboration: Involve non-profits, academic institutions, small businesses and all levels of government in the planning process to create more holistic and equitable solutions.

By implementing these strategies, PPPs can become more effective in directly addressing the underlying drivers of cost-of-living pressures.

Successful Model: Apple’s Bay Area Housing Innovation Fund

Apple's Bay Area Housing Innovation Fund is a leading example of a PPP tackling housing affordability. Launched with an initial $50 million investment, the initiative is part of Apple’s broader $2.5 billion commitment to affordable housing in California. [Source]

The fund partners with organizations like the San Francisco Housing Accelerator Fund, Sobrato Philanthropies, and Destination: Home to provide low-cost, flexible loans to nonprofit developers, reducing financial barriers and accelerating affordable housing projects.

A key strength of this initiative is its clear policy framework, with defined goals to deliver units 40% cheaper and within three years—a major improvement over the typical five-year timeline. These transparency measures help ensure efficiency and accountability. [Source]

Additionally, the fund enhances workforce-housing alignment by prioritizing developments near job centers and transit hubs in areas like San Francisco and Santa Cruz. This focus helps essential workers—such as teachers and first responders—access affordable housing near their workplaces.

By embedding clear goals and location-based priorities, the fund demonstrates how private sector investment can accelerate affordability solutions while complementing public policy efforts.

Conclusion

The cost of living crisis requires a coordinated, long-term approach—one that integrates workforce policy, economic planning, and affordability strategies. While PPPs have made progress in housing, transit, and workforce development, more needs to be done to align these efforts into a cohesive, sustainable framework.

By prioritizing affordable housing near job centres and transit—an approach reinforced by Apple’s Housing Innovation Fund—public-private collaborations can drive long-term affordability and strengthen economic resilience.