July 9, 2026

Research found city permitting and licensing hinder block club employment opportunities

PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Nate Miller (312) 607-4977

Neighborhood block clubs connect thousands of Chicagoans to jobs
Research found city permitting and licensing hinder block club employment opportunities

CHICAGO (July 9, 2026) — New research finds that local grassroots organizations are helping fight unemployment in Chicago’s most impoverished neighborhoods on the South and West Sides.

According to a report from the Illinois Policy Institute’s Center for Poverty Solutions, grassroots neighborhood organizations called block clubs have found creative, community-driven solutions to help Chicagoans find and keep meaningful work. They have aided residents with criminal backgrounds and transportation barriers by connecting them to jobs through trusted community relationships.

In one case, the report found, a block club leader has helped around 3,000 people in 11 years find warehouse work.

“Employment is one of the most effective ways out of poverty. However, many Chicagoans face barriers that they can’t overcome alone,” said LyLena Estabine, senior policy analyst at the Illinois Policy Institute. “Block club leaders succeed in earning employers’ trust from their willingness to invest time and resources in order to help their neighbors get and keep jobs.”

Block clubs are volunteer-run, non-government bodies registered with the city. However, despite some success, their effectiveness has been hindered by city regulations related to vacant lots and job licensing.

The center found that Chicago could strengthen the work of block clubs by expanding access to vacant lots with a smoother permit process and easing occupational licensing requirements for smaller projects to employ those who are skilled but not credentialed.

“Chicago doesn’t need to rethink these employment opportunities, it needs to stop standing in their way,” Estabine said. “Removing these undue barriers that prevent block clubs from creating jobs would help more residents find work and strengthen neighborhoods. Chicago needs more block clubs on the South and West sides to reduce unemployment, fight poverty and build safer neighborhoods. The city should clear the obstacles that stand in their way of making the greatest possible impact.”

Key findings from the report include:

  • Chicago’s 26 highest-poverty community areas and 34 neighborhoods with the highest unemployment rates are concentrated on the South and West sides.
  • High parole population on the South and West sides increases unemployment rates. Between June 20, 2024, and June 30, 2025, the South Side had 2,186 residents on parole and the West Side had 1,352, compared with 356 in the third-highest community zone, the Near West Side.
  • Employment is linked to lower recidivism. Formerly incarcerated Illinois residents employed one year after release have recidivism rates as low as 16%, compared with the statewide recidivism rate of nearly 37%.

To read the Center for Poverty Solutions report, “Fighting poverty with employment: Chicago block clubs,” visit illin.is/block-clubs.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.