2024 Highlights: Insights Driving Inclusive Growth

As 2024 comes to a close, we're reflecting on the key policy debates, data-driven insights, and publ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Evidence-Based Insights Driving Inclusive Growth As 2024 comes to a close, we're reflecting on the key policy developments, data-driven insights, and public-private partnerships we see fueling inclusive growth in communities around the country. Our experts across the JPMorganChase Institute, PolicyCenter and Corporate Responsibility teams are constantly analyzing our proprietary data to better understand and explain the inner workings of the economy in real time. Their findings give decision makers the evidence and real-world examples they need to make more informed decisions. Below we share the big questions we asked, the answers we found, and the policy conversations we aimed to inform. Economics amid uncertainty: Small businesses & consumer resilience Mixed economic data and an often-pessimistic consumer outlook made it difficult to assess the health of the U.S. economy in 2024. The COVID-19 pandemic and the recent highly inflationary macroeconomic environment reset the financial trajectory of entrepreneurs and consumers alike. 1. Leveraging data to identify small business challenges Why it matters: Small businesses are the backbone of the U.S. economy. Yet entrepreneurs face well-documented challenges to growing their business. For example, data shows that scaling to $1 million in annual revenues is still rare — especially for Black, Hispanic, and female owners. Despite a surge in business formation since 2020, small businesses continue to face significant barriers to sustainable growth. "Necessity entrepreneurs" — who launch businesses due to downturns or unemployment and made up a larger share of new firms during the pandemic — have faced worse business outcomes and have seen a more muted economic impact compared to those who start new businesses to take advantage of the opportunity created by robust demand. The takeaway: Providing entrepreneurs of all backgrounds with the access to capital, connections, customers, and other resources they need to grow is critical. 2. Household financial resilience amid uncertainty As consumers continue to feel the impact of an uncertain economic landscape, changes in saving and investing trends could reshape household financial health. Cash savings continue to drop from their pandemic highs for all but the lowest-income households. Gains in take-home pay have fallen short of expectations given the stronger overall economy. Yet data shows most U.S. households are financially resilient when it comes to covering unexpected expenses — a trend that's held steady since 2022. And more people are investing — and taking on more risk — driven by a diverse group of individuals shifting money from savings to brokerage accounts. The takeaway: Amid the current macroeconomic and market environment, consumers continue to evolve how they are saving and spending their money. These trends reveal critical connections between financial markets and household financial health – with important implications for policymakers and business leaders alike. Housing affordability: Scalable solutions shaped by local data Decision makers across the public and private sectors see housing as a top priority for 2025 in the face of high housing costs and low supply affecting communities nationwide. Here's what our data and work with partners on-the-ground in Detroit, Baltimore, and beyond suggests they tackle... 1. Address housing decline & disrepair Vacant homes can fuel a cycle of economic decline — depressing property values, muting economic activity, and destabilizing whole neighborhoods. Why it matters: The worse these issues get, the harder it is for families to stay in their homes, find quality education or job opportunities, or build wealth. The lack of housing supply underscores the importance of helping people preserve their homes. What works: Our insights point to a range of effective place-based strategies, starting with public-private partnerships that build housing capacity through Community Development Financial Institutions. 2. Help families pass on and maintain wealth through property Housing equity represents 60% of Black and Hispanic homeowners' net worth in the U.S. — but a lack of estate planning education puts much of this generational wealth at risk. The problem: Without a will, homes can pass to multiple descendants, raising the risk of property loss due to land speculation, partition sales, or tax default. It's an issue called "heirs property." The scale: The total assessed value of such properties is estimated to be over $32 billion across 44 states and Washington, D.C. What works: We support initiatives that provide affordable legal services and estate planning options, alongside a suite of policy recommendations to resolve and prevent these issues. 3. Close the mortgage literacy gap Soaring home prices have put homeownership out of reach for many Americans, but the obstacles stretch beyond sky-high down payments. The (other) problem: Hidden costs like appraisals and other closing fees vary widely by lender type. What works: Better mortgage literacy initiatives help borrowers of all backgrounds understand and avoid such costs, while financial institutions can tailor their services to expand access to more affordable loans. Go deeper: Learn more about our research-driven community development solutions for sustainable, equitable housing. The future workforce: Partnerships that grow pipelines As the labor market evolves, employers have an important role to play in helping to prepare the workforce for a shifting workplace. Why it matters: Some six in ten workers will need skills training by 2027, yet only half have access to adequate opportunities. What works: Regional talent partnerships that tie education and job training opportunities to business needs are one of the best ways to grow an inclusive hiring pipeline. Across six cities where we support such partnerships, we've identified 10 key elements for success — starting with engaged employers that offer insight into job trends and in-demand skills. Partnerships vary widely, but the best have a collective vision, shared goals, adequate resourcing, and a clear roadmap to expand access to career pathways that offer a living wage. The bottom line: By centering the needs of both workers and employers, these partnerships can boost regional economies, job mobility, and equitable growth nationwide. Go deeper: See why we support modernizing and expanding access to apprenticeship programs and other earn and learn strategies. What's Next? The bottom line: In 2025 and beyond, business and evidence-based policy will continue to play a vital role in driving inclusive economic growth. Through our data-driven insights and policy solutions powered by the firm's global business resources and expertise, we look forward to collaborating with key partners to advance the wellbeing and resilience of the communities we serve. Our focus remains on local solutions that advance on-the-ground expertise and lessons learned. We'll continue to engage communities across the country to keep learning and building public-private partnerships that scale solutions that work. Stay tuned for exciting announcements and partnerships in this space. Data, data, and more data. As we gear up to celebrate the 10-year anniversary of the JPMorganChase Institute in 2025, we will continue to identify and answer with our unique data the most pressing economic questions to help inform policy and other decision makers across the country. Stay in touch! We'd love to hear from our partners about big ideas you are tackling in the year ahead – and how we can work together in 2025 and beyond. To learn more about JPMorganChase, please visit JPMorganChase.com. If you received this email from a friend, subscribe now to receive future updates. To unsubscribe, please click here. © 2024 JPMorgan Chase & Co. | 383 Madison Avenue, New York, New York JPMorganChase is not responsible for the information contained on third-party websites, nor do we guarantee their accuracy and completeness.