Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘economy’

Economy Adds 243,000 Jobs, Unemployment Drops to 8.3 Percent

Friday, February 3rd, 2012

Image: Mike HallThe nation’s unemployment rate in January fell to 8.3 percent, down from December’s 8.5 percent, and the economy added 243,000 jobs, according to the latest figures released this morning by the U.S. Bureau of Labor Statistics (BLS).

The nation’s unemployment rate continues it steady decline, dropping by 0.8 percentage points since August and to the lowest  point since February 2009. The number of jobless workers dropped to 12.8 million, down from December’s 13.1 million. But the number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.5 million, about 42.9 percent of the unemployed.

The unemployment insurance program for the nation’s jobless workers expires Feb. 29.  A conference is now under way between the Senate and House over two very different one-year extensions of the UI program passed late last year and the Republican bill would slash federal benefits, impose harsh new restrictions and move to dismantle the essential lifeline of unemployment insurance.  Click here for details.

Economic Policy Institute (EPI) economist Heidi Shierholz says today’s figures show “a labor market where all the moving parts seemed to be moving in a solidly good direction.”

Strong payroll employment growth was matched by a falling unemployment rate, strong employment growth in the household survey and a growing share of the population with jobs…It’s important to keep this growth in context, however—the jobs deficit is so large that even at January’s growth rate, it would still take until 2019 to get back to full employment.  We need reports this strong and stronger for the next several years to get back to good health in the labor market.

Private-sector jobs grew by 257,000, and government employment was essentially unchanged, but over the past 12 months 276,000 public employee jobs have been lost.

In January, professional and business services add about 70,000 jobs. The leisure and hospitality industry added 44,000 jobs and health care jobs grew by 31,000.

Manufacturing saw an increase of 50,000 jobs, mostly in durable goods, and the construction industry added 21,000 jobs.  There were 10,000 new jobs in the mining industry in January.

The unemployment rates for adult men (7.7 percent) and African Americans (13.6 percent) declined in January. The unemployment rates for adult women (7.7 percent), teenagers (23.2 percent), whites (7.4 percent) and Hispanics (10.5 percent) were little changed.

This blog originally appeared in AFL-CIO Now blog on February 3, 2012. Reprinted with permission.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. “When my collar was still blue, I carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. I’ve also worked as roadie for a small-time country-rock band, sold my blood plasma and played an occasional game of poker to help pay the rent. You may have seen me at one of several hundred Grateful Dead shows. I was the one with longhair and the tie-dye. Still have the shirts, lost the hair.”

Replacing Factories With Jails: Just 44% of Milwaukee’s Black Men in Workforce

Wednesday, February 1st, 2012

Roger BybeeCity has lost three-fourths of its manufacturing jobs since 1960s

MILWAUKEE—Wisconsin’s economic problems are only deepening the political crisis for Gov. Scott Walker, already the target of a massive recall campaign that gathered 1.1 signatures from Wisconsinites.

Despite Walker’s pledge to preside over the creation of 250,000 jobs by 2015, Wisconsin has lost jobs for the past six months as the rest of the country has added them, and job losses have totaled more than 35,000 since he signed his highly controversial state budget last June.

But there is a more specific economic (and social) crisis facing Milwaukee: Just 44.7 percent of African-American males are still part of the workforce, reflecting the long-term decimation and relocation of the city’s industrial based and the lingering effects of the Great Recession.

Even for African-American males in their prime working years (25 to 54), only 52 percent were in the workforce. “That took me aback,” stated Marc Levine, author of the new study illuminating the appalling level of joblessness in the city’s black community.

“The most striking finding was the extent to which black employment rate has declined across all the heavily-industrialized cities of the Northeast and Midwest, like Milwaukee, Chicago, Cleveland, Detroit, and Buffalo,” said Levine, director emeritus of University of Wisconsin-Milwaukee’s Center on Urban Development.

These cities have been hit by three waves of industrial shifts, first to the suburban ring, then to “the right-to-work states of the anti-union South,” and finally offshoring to low-wage, repressive nations like China and Mexico, said Levine.

With 54 percent of Milwaukee’s black workers employed in manufacturing in 1970, “The unraveling of manufacturing affected blacks here more than in other cities,” Levine noted. “All of the old industrial cities have been hit across the board, but Milwaukee with its especially large industrial base was really affected.”

As the study documents,

No metro area has witnessed more precipitous erosion in the labor market for black males over the past 40 years than has Milwaukee. The 2010 data, however, revealed a new nadir for black male employment in Milwaukee.

Milwaukee has lost a three-fourths of its manufacturing jobs since the 1960s, representing a giant canyon of destroyed opportunities. In the city long called “the Machine Tool Capital of the World” in recognition of its highly-skilled industrial workforce, only about 26,000 manufacturing jobs remain.

The loss of these jobs has been accompanied by a substantial drop in family incomes in the city. Milwaukee’s median household income, adjusted for inflation, plummeted
a stunning 21.9 percent since 1999, according to new U.S. Census data. That’s well over twice the national average of 8.9 percent.

But along with the impact of de-industrialization and de-unionization affecting the entire working class, African Americans in Milwaukee have faced “hyper-segregated conditions, with 88 percent of the blacks in the metro area concentrated in the central city, said Levine. With many lacking cars and public transportation to the suburbs—where almost all employment increases have occurred—the inner city economy has radically changed over the past four decades.

“In the new economy of the inner city, there are only 4,800 blacks employed in production now,” a small fraction of a once-huge African-American industrial working class, said Levine. “At the same time, every year we have about 5,000 African-American males entering the prison system. … We’ve seen the twin phenomena of the loss of factory jobs and a poorly-conceived war on drugs. As a result, almost 50 percent of Milwaukee’s black males are in jail, in prison, on probation, on parole, somewhere in the system.”

Milwaukee’s corporate leaders and media have continued to promote job training as the central solution to both high unemployment in the central city and a shortage of skilled workers:

The new chairman of Wisconsin Manufacturers & Commerce, the state’s biggest and most vocal business lobby, … vowed to tackle an issue that’s infuriated plant managers for years: a chronic inability to fill manufacturing jobs for lack of qualified or willing candidates.

Todd Teske, president and chief executive of Wauwatosa-based Briggs & Stratton Corp., said he would make the skills mismatch his top priority during the two-year rotating chairmanship of the 101-year old business group….

Industrial jobs are the core of Wisconsin’s middle class, Teske said: “But those jobs are threatened by a number of factors including a shortage of skilled industrial workers to fill existing and expected job vacancies.”

But for Levine, the training strategy championed by Teske and WMC is bound for failure. “It represents the tried and true approach for those who won’t face up to the fact that the private sector isn’t filling the need for jobs, but don’t want to challenge the private sector or their investment decisions.”

Briggs, for example, has moved thousands of jobs to Mexico and China.

“It’s not a skills shortage, it’s a shortage of private-sector job creation,” Levine says.

With Corporate America clearly opting out of domestic job creation—2.9 million jobs were eliminated in the United States since 2000, while 2.4 million were created offshore—local, state, and federal officials could confront the jobs crisis with a strategy that directly creates jobs, boosts consumer demand, and repairs America’s deteriorating infrastructure.

“We need Keynesian measures to build consumer demand, said Levine. “We need direct government involvement to rebuild the infrastructure, renovate our transportation systems, and update our communications system. All of these will also build broader consumer demand.”

The absence of jobs and income so acutely afflicting blacks in Milwaukee—and Americans of all colors across the nation—will not be cured by wishful thinking about the “insourcing” of jobs hailed by President Obama in recent speeches.

“Insourcing is a very, very minor trend,” Levine, pointing out that Milwaukee’s Master Lock (also see here ), although much celebrated (sometimes incorrectly) has only brought back a small share of the jobs it sent to Mexico. Still, the vastly-downsized United Auto Workers Local 469 is grateful for the addition of about 100 jobs over the last year;  a minimum of 800 Master Lock jobs had been shipped off to Mexico and China.

The depth of suffering in Milwaukee’s African-American community and elsewhere caused by the jobs shortage demands urgent action, not hope that “the private sector” to step forward. But when President Obama has talked about the need for job creation in recent months, he has stressed the need for private-sector” involvement.

Meanwhile, indifferent CEOs of major corporations sit on unprecedented trillions in reserves, and continue exporting jobs south of the border and overseas.

This blog originally appeared in Working in These Times on February 1, 2012. Reprinted with permission.

About the Author: Roger Bybee is a Milwaukee-based freelance writer and progressive publicity consultant whose work has appeared in numerous national publications and websites, including Z magazine, Dollars & Sense, Yes!, The Progressive, Multinational Monitor, The American Prospect and Foreign Policy in Focus. Bybee edited The Racine Labor weekly newspaper for 14 years in his hometown of Racine, Wis., where his grandfathers and father were socialist and labor activists. His website can be found here, and his e-mail address is winterbybee@gmail.com.

Building a Green Economy Means Bringing Workers in with a Commitment to Good Green Jobs

Tuesday, January 17th, 2012

Laura ClawsonOne of the weapons the right uses to try to block better policies on energy and the environment is the specter of job loss: regulations or clean energy or the boogeyman of the day will close businesses and put people out of work. In fact, clean energy and environmental regulations could create jobs. But Republicans exploit a legitimate fear on the part of workers, because while jobs could and should be created by improved environmental policies, there would be inevitable reshuffling, jobs shifted around from one industry to another. The people who know their jobs would be on the line have a reasonable fear that they wouldn’t immediately get new jobs, or that the new, clean energy jobs wouldn’t be as good as the ones they lost.

“Reasonable fear” doesn’t mean “reason not to act,” though. For the health of the environment, of people, of the economy, we have to take action to address climate change and more. How, though, do we do that in a way that addresses the legitimate concerns of working people? That’s both a political and a policy problem—workers have to be convinced, and the policy has to follow through and ensure that the shift to a clean energy economy is not taken as an opportunity to drive down wages and working conditions for the average worker.

This effort, of course, will take place over the well-funded resistance of the 1 percent, seeking to divide us—to make workers desperate for jobs at any cost and to convince them that climate change is less of a threat to their lives than the people who seek to avert its damage; to make environmentalists see workers, not polluting corporations, as their opponent in this battle.

That’s the needle AFL-CIO President Richard Trumka had to thread this week in his address to the UN investor summit on climate risk. Trumka made clear the urgency he and others in the labor movement see in addressing climate change, and doing so comprehensively rather than relying on small fixes:

And to those who say climate risk is a far off problem, I can tell you that I have hunted the same woods in Western Pennsylvania my entire life and climate change is happening now—I see it in the summer droughts that kill the trees, the warm winter nights when flowers bloom in January, the snows that fall less frequently and melt more quickly.

Even so, some will ask, why should investors or working people focus on climate risk when we have so many economic problems across the world? The labor movement has a clear answer: Addressing climate risk is not a distraction from solving our economic problems. My friends, addressing climate risk means retooling our world—it means that every factory and power plant, every home and office, every rail line and highway, every vehicle, locomotive and plane, every school and hospital, must be modernized, upgraded, renovated or replaced with something cleaner, more efficient, less wasteful.

But to do that, he argued, workers have to be included in the dialogue about what to do and how to do it:

Too often, we have failed to consider who bears the cost of change and ensure that change is managed fairly and respectfully. And when we do that, no matter how important the reasons might seem, we sacrifice the chance to build the power to move forward. The only way for our democracy to act is for those who care about climate change to engage with the people whose livelihoods are tied up with carbon emissions. All of us—investors, companies, workers, environmental activists, governments—need to be part of this dialogue. Any other approach to addressing climate risk is not just fundamentally unfair, it simply won’t work in our democracy.

Remember that Trumka was a coal miner, and then the president of the United Mine Workers. The question of what happens to people who work with coal is a very direct and personal one for him. And while developing technologies that use less energy and investing in solar and wind and other forms of cleaner energy will create jobs in the long term:

So why, in an economy without an effective safety net, would the good men and women of my hometown and a thousand places like it surrender their whole lives and sit by while others try to force them to bear the cost of change.
The truth is that in many places – and not just places where coal is mined – there is fear that the “green economy” will turn into another version of the radical inequality that now haunts our society—another economy that works for the 1% and not for the 99%. [...]

So how can all Americans sit down together and develop trust? I think it begins with a commitment—a challenging and difficult commitment—that we are going to measure our approach not by how well it fits the needs of the well-positioned. We must ask ourselves, “How well does this pathway serve the least, the hardest to reach, the most likely to be left behind?” Places like West Virginia and the Ohio Valley must come first, not last.

How can this happen? Let’s think about the new EPA emissions rules for power plants. All of the unions of the AFL-CIO want to see coal fired power plants retrofitted immediately to cut back on mercury and sulfur emissions—those retrofits create good jobs, save lives. We oppose anyone who would take away the Environmental Protection Agency’s authority to keep our air and water clean. But power plant and mine workers want to know that if their employers commit to doing the retrofits, they will get the time to complete them. Surely through dialogue common ground can be found between workers who want the retrofit jobs and clean air and public health advocates.

This is a question the environmental movement has to grapple with. There are good jobs to be created in conservation, in clean energy, in doing things the right way for the planet. But that has to be a priority, not a talking point. As opposed as I am to Keystone XL, as much as I think it’s short-sighted and destructive, it’s distressing to hear opponents of the project dismiss thousands of construction jobs as merely temporary—basically all construction jobs are temporary. The unions that support the project because it will provide jobs for their members must engage seriously with research indicating that Keystone will provide far fewer jobs (PDF) than TransCanada is claiming. But building a LEED building is a temporary construction job. Retrofitting a home is a temporary construction job.

That environmentally bad jobs aren’t all they’re cracked up to be isn’t a helpful thing to say to unemployed construction workers unless you have concrete policies that are going to create better ones, or at least a strong commitment to fight for them, and a reason for the people who stand to lose “gray” jobs to believe that they will get a fair share of the green jobs created. Such jobs are possible. As we all know, it’s not even hard to identify how it could be done—there are members of the Steelworkers working on wind turbines; investments in public transit would create construction jobs as well as longer-term jobs driving trains and buses; on and on, the possibilities for good green jobs exist. But when you advocate for good environmental policy, the political bargain to get it done can’t involve shorting the workers involved. The costs cut to get that last vote in Congress can’t be the cost of workers’ health insurance and retirement. You can’t squeeze more building retrofits out of a block of funding by halving the pay rate of those (again, temporary) jobs.

There have been strong efforts on the part of both movements, environmental and labor, to address this. Environmental organizations and unions have joined in the BlueGreen Alliance to address exactly this; some environmental organizations supported the Employee Free Choice Act; unions and environmental groups have joined on campaigns to clean up port trucking; Trumka’s speech lists a number of investments that unions and their pension funds have made in job-creating green projects. These alliances are promising, but they must be built into the DNA of both movements. Not just leaders but the majority of rank and file activists have to believe in the partnership and its intertwined goals, no matter how hard the 1 percent tries to divide us.

This blog originally appeared in Daily Kos Labor on January 15, 2012. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos. She has a PhD in sociology from Princeton University and has taught at Dartmouth College. From 2008 to 2011, she was senior writer at Working America, the community affiliate of the AFL-CIO.

It’s All Your Fault, Economy!

Monday, January 9th, 2012

Maria SaabThe beginning of a new year is a time of reflection- what am I going to bring forward into the new year and what I am going to leave behind in the old year. Recently having celebrated a birthday and reaching the “I’m half-way done with law school” milestone, I have found myself reflecting more and more about where I stand as a young adult. While every human has that moment, or has the several moments, where they stop to think about where they are going and what they are doing with their lives, I feel like I spend most of my days pondering these questions. I know what you may be thinking- bring out the violins, another sob story (My comeback, however, is that this is no sob story, but a Saab story. Get it? A little homophone if you will). I largely attribute this feeling to the state of the economy , which at this point is an easy target and a catch-all reason to blame many of our sorrows upon.

However, my problem with the economy is not so much the scarcity of jobs- but the decreasing number of opportunities to follow your dreams, capitalize on your interests, or even develop a passion (I’ll elaborate more on this-just you wait). I recently read an expose in The Washington Post about the  top fourteen college majors with the highest unemployment rates. Lucky for me, my liberal arts degree and my yet-to-be-completed Juris Doctorate help me to occupy two of the fourteen categories for highest unemployment but I digress. Most of the majors in this list can be categorized as part of the social sciences and liberal arts. While the hard sciences like engineering and computer science did make the list, most of the majors with the highest unemployment rates were not of technical backgrounds.

With this in mind, I registered to attend the Center of American Progress’s presentation “Keeping the American Economy Competitive in the 21st Century.” At the presentation, Secretary of Commerce John Bryson unveiled the COMPETES Act report on U.S. economic competitiveness and innovation. The presentation was timed perfectly with President Obama’s announcement that 200,000 jobs had been created in the past month. The report was prepared by the Department of Commerce in consultation with the National Economic Council and addressed topics such as tax policy; general business climate in the U.S., regional issues such as the role of state and local governments in higher education; barriers to set up new firms; trade policy; and science and technology education. Some of the key conclusions of the report outlined the need to invest more money in research and development initiatives, including investment in higher education focused on science, technology, engineering an mathematics (STEM) as well as mediums for increased innovation.

The panelists spoke of innovation as being a key element of our economic success- but elaborating on a sense of stalled innovation in the American economy. For example, Aneesh Chopra, U.S. Chief Technology Officer, spoke of America inventing wireless broadband, but that most broadband headquarters are no longer in the U.S. There is no doubt that innovation and invention are the key cornerstone to economic success. Even Steve Jobs once said “innovation distinguishes between a leader and a follower” and I believe him wholeheartedly- as I type away this blog post on my MacBook Pro, while holding my iPhone, and jamming out on my iTunes (loyal consumer is what you may call me). The report emphasized that by positioning American efforts on innovation, there will increased investment in STEM education, resulting in a greater demand for individuals in jobs within these fields. In order for America to move forward and continue to stay competitive in the global economy, it will need to be able to explore, invent, and create cutting edge technologies.

The presentation was excellent- I really enjoyed listening to the panelists and listening to their responses to questions I never would have thought to have posited myself. I did get to ask a question in the break-out session, where event attendees could ask questions to some of the researchers involved with the report. The question I posed was largely based on the Washington Post article I recently read. If our current economy is lagging because of high unemployment rates, but the highest unemployment rates come from fields not within the hard science background, why choose to invest our federal dollars in a sector that is not ailing? Can we stay competitive and keep our economy afloat by relying solely on innovation and R&D in technology? The response I received was that this report didn’t address that issue, but focused on the topics presented that day. I guess it wasn’t a bad answer- it was the truth, but it left me pondering and I hate to say this, but also a little disheartened. I had the Washington Post and the Department of Commerce telling me I probably would have been better off pursuing a different field of study. This is where I can clarify my statement about the economy- I genuinely enjoyed being a liberal arts major and I have always wanted to become a lawyer. To hear that things are moving in a direction that I am clearly moving the opposite of kind of stings. While things, I know, won’t come easy and perseverance and dedication always are rewarded- for now,  I’ll just blame the economy.

About this Author: Maria Saab is a law student intern at Workplace Fairness. Her Bachelor of Arts in International Studies combined with her career experiences working on Capitol Hill and with Barack Obama’s presidential campaign in 2008 encouraged her to pursue law school. As a hopeful lawyer, she plans on specializing in regulatory law and hopes to one day concentrate her work efforts towards policy development.

Jobless Rate Drops, But Pain, Despair Persist in Weak Economy

Monday, December 5th, 2011

David MobergThe headline news on Friday that the unemployment rate in November dropped 0.4 percent to 8.6 percent may help President Obama avoid losing his job next year. But the reality behind the figures will not—and that reality includes a big dose of stress, anger, despair and insecurity even beyond the ranks of the unemployed, according to two new reports.

The number of jobs in the country grew by 120,000 in November, slightly below the rate of the past year (though it could be revised upwards as the Labor Department just did for the previous two months). That’s barely enough to cover the growth of the labor force, and it reflects the loss of 20,000 public sector jobs–a continuing erosion of anemic private sector growth as a result of budget-cutting.

The bad news behind the lower unemployment rate is simply that the labor forcce last month shrank by 315,000 workers, who presumably have given up searching for a job. Although the Great Recession has been particularly rough for men, women–unmarried and disproportionately African-American–more than accounted for November’s labor force decline.

Other trends reinforce the bad news:

* long-term unemployment as a share of joblessness rose, approaching record levels, and the average duration of unemployment reached a record 40.5 weeks;
* underemployment remains fairly steady and high;
* wages are declining for those who have jobs;
* although health care continues to add jobs, most of the new jobs are low-wage, insecure openings in retail and services.

Since the 1980s each recovery from a recession has been slower and more “jobless” than its predecessor. This much deeper recession is no exception; at the current growth rate, economist Dean Baker projects it will take 16 years to return to the less-than-fabulous pre-recession state of the job market.

But the hardships of the recession extend beyond the ranks of the jobless.

Wider Opportunities for Women, just released a report, Living Below the Line: Economic Insecurity and America’s Families. The “line” defines an “economic security” budget level for different households that is higher than the official poverty line but far short of what most Americans might describe as a middle-class standard. (For example, the budget assumes a family of four rents an apartment for $821 a month and has no immediate prospects for buying a house.)

WOW’s study finds that 45 percent of U.S. residents live in a household that lacks economic security. Women, especially single mothers, and then particularly African-Americans and Hispanics, are  most likely to live in economic insecurity. But the study concludes that although it does not directly address the condition of the middle class, there are “fundamental financial weaknesses in the ‘middle’ and problems with the very conception of a middle. That nearly 40 percent of the nation’s adults and 45 percent of adults are their children lack basic economic security incomes suggests that the nation’s economic middle is not very broad and may not, in fact, exist.”

Losing a job is extreme economic insecurity, especially when Republicans are playing “protect the rich” games. In response to the Democratic proposal to finance programs that extend the duration of unemployment compensation through a surtax on millionaires, for example, Republicans reportedly advocate instead funding it by continuing to freeze federal workers’ pay and eliminating many of their jobs.

USAction, a national coalition of citzen groups, captures some of the suffering of the unemployed in a new report based on stories from nearly 1,200 of its laid-off members, “Hardly Working; Stories From Un- and Under-Employed Americans.”
They found three broad themes: frustration at discrimination in hiring (with discrimination on age and against the unemployed standing out, in addition to the usual discriminations; emotional and financial distress; and despair about their futures and the future of the country.

For example, 59-year old Wayne Persons of Mount Laurel, New Jersey, had a successful career as a sales manager until his company went out of business two years ago. “Between the fact that we were in a bad economy with too many people out of work with not enough jobs to go around, combined with my age, combined with the fact that I was unemployed, it became almost impossible for me to get a job interview, let alone get a job,” he said at a teleconference on release of the report, “and I was looking very hard for over two years.”

“I just don’t understand what happened to this country,” says Molly Wasserman, who lost her successful job track when she moved from New York to Ohio to care for her mother, who was ill with cancer. “I don’t recognize my place in it any more. More and more of us are marginalized, ignored or happily forgotten because we’re not working….What exactly is a person supposed to do who is not being hired? Are we just supposed to die? Are we supposed to commit suicide? Are we supposed to die, homeless in the streets?”

Steve Hanken, 61, of Cedar Rapids, Iowa, told In These Times his career has felt like “a steady roll downhill.” Now he has a temporary, part-time job at the local office of the state Department of Human Services where he watches a shrinking staff deal with increased demands as the recession’s toll accumulates. A college drop-out, he moved from one skilled machinst job to another as employers downsized, then switched to an unpredictable career executing archaeological digs, often supervising large crews and doing lab work.

Hanken, a former Democratic party central committee member, now feels like a man without a party—until a third party emerges. “Obama promised to do a lot and did nothing,” he laments. “The other side says they want to do nothing and they will. They’ll protect the wealthy and the rest of us can go to hell.”

“I don’t know where democracy went to in this country,” says Hanken, who wants to see banks more regulated, more bankers and CEOs in jail, and more of the nation’s wealth shared with those who need it and will spend it. “I used to think people in government were looking out for me,” he says. ”Now it seems they’re looking out for themselves and their friends. I’m baffled. I don’t know what to do. I think  it’s a matter of time before we little people are all under the bridge.”

This blog originally appeared in Working in These Times on December 2, 2011. Reprinted with permission.

About the Author: David Moberg, a senior editor of In These Times, has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy. He can be reached at davidmoberg@inthesetimes.com.

Yes, Public Sector Cutbacks are Hurting the Economy

Monday, October 24th, 2011

yglesias_matthew_bioI’m reading on right-wing blogs that it was somehow “deceptive” of me to post accurate statistical information about the fact that the private sector labor market is showing okay growth while the public sector labor market is deteriorating. You see, net private sector job losses since the start of the recession have been larger! This is true, which is why I never said otherwise. That’s for the very good reason that the total scale of government employment is pretty small relative to private sector employment:

We have, in other words, many more people working at CVS than the DMV. Which is great. That’s your modern day mixed market economy. Most people work in the private sector. That means the scale of private sector shifts is almost always going to outweigh the scale of whatever’s happening in the public sector. But look at growth rates and zoom in on the Obama era:

When the President was inaugurated, we were already in a steep recession with giant private sector job losses. At the time, the government sector was doing its normal non-cyclical thing. The rate of private sector losses slowed, and since the beginning of 2010 private sector employment has been enjoying slow-but-steady growth. It turns out, however, that once you look past the spikes around the census that these private sector gains are being partially offset but steady job losses in the public sector.

In a normal time, you might think of this as “crowding in.” Reduced government spending frees up funds for private purposes. And reduced government employment frees up personnel for private purposes. But that’s not a plausible interpretation of today’s events with high unemployment and lots of economic slack. Nobody is saying “God, my company really needs to hire some janitors but there are no unemployed people around to hire; if only they’d lay off some of the guys who mop floors at the local federal building I’d be able to expand.” Instead what’s happening is people are saying “hey—my company sells goods and services at a profit, so I’d expand operations if some of these unemployed people were hired to repair roads and this had more money to spend at my shop.”

This blog originally appeared in ThinkProgress on October 23, 2011. Reprinted with permission.

About the Author: Matthew Yglesias is a Fellow at the Center for American Progress Action Fund. He holds a BA in Philosophy from Harvard University. His first book, Heads in the Sand, was published in May 2008 by Wiley. Matt has previously worked as an Associate Editor at The Atlantic, a Staff Writer at The American Prospect, and an Associate Editor at Talking Points Memo. His writing has appeared in The New York Times, the Guardian, Slate, The Washington Monthly, and other publications. Matthew has appeared on Fox News and MSNBC, and been a guest on many radio shows.

Studies Show Growing Depravity for Women in this Economy

Wednesday, September 21st, 2011

n6234374_38932211_9560_reasonably_smallNo American has been immune to the challenges caused by the less-than-thrilling state of our economy. However, new statistics show that half of our population may be struggling a bit more than the other, more specifically the female half. The National Women’s Law Center (NWLC), in a new compilation of statistics, reports that a record number of women are living in poverty.In 2010, the poverty rate among women climbed from 13.9 percent in 2009 to an astonishing 14.5 percent, the highest rate reported in over seventeen years. In addition, the percentage of women living in extreme poverty climbed from 2009’s 5.9 percent to 6.3 percent in 2010.

If those statements alone haven’t shocked you enough, the following ratio is even more daunting:

Over 17 million women lived in poverty in 2010, including more than 7.5 million who are living in extreme poverty.

Americans are witnessing a startling and rapid growth in the depravity of a major class of individuals in our nation. This has a large effect on the status of American children as well. Although men and women both play integral roles in the success and survival of a child, child welfare has long been attached to that of their mothers. When the mother suffers, so does the child- or so the numbers show. The NWLC reports that black women, who serve as the heads of black households with children, are continuing to lose jobs while black men are adding jobs during recovery. With fewer jobs, women are unable to provide for their children. The growing number of women in poverty is in turn increasing the number of children in poverty. A survey of child welfare released by the Annie E. Casey Foundation reports that in 2009, 14.7 million children were living in poverty.

The Guttmacher Institute reports that the rate of unintended pregnancies among women who fall below the federal poverty line has risen. With more women in poverty bearing children who will be born into poverty, the problems continue to grow. That’s the sad part-a child doesn’t get to choose what kind of life it is born into.

In an upcoming study in Psychological Science,  a journal published by The Association for Psychological Science reports “the stresses disadvantaged children undergo affect their physiological development, making them permanently vulnerable to infection and disease. One common outcome in adulthood is metabolic syndrome, a cluster of signs, including high blood pressure, impaired regulation of blood sugar and fats, and fat around the waist, that can precede chronic diseases such as diabetes and heart disease.” However, the study posits that the presence of a “good mom” can radically change the fate of these children. We can hope that these women are committing to the job of motherhood, but it can only be expected that the pressures of poverty may prevent them from providing the best for their child.

The poor status of our economy continues to raise unemployment figures, lower the number of jobs available, and eliminate funding for welfare, health care, and other aid organizations. Women may not be climbing out of poverty anytime soon - Neither will their children. With that in mind, it seems apparent that some Americans are in the midst of a very vicious cycle.

About this Author: Maria Saab is a law student intern at Workplace Fairness. Her Bachelor of Arts in International Studies combined with her career experiences working on Capitol Hill and with then-Senator Barack Obama’s presidential campaign in 2008 encouraged her to pursue law school. As a hopeful lawyer, she plans on specializing in regulatory law and hopes to one day concentrate her work efforts towards policy development.

Paid Sick Days – an Important Job Saving Strategy in a Weak Economy

Friday, March 18th, 2011

EileenThe latest government report on job openings and labor turnover – the JOLTS report – makes an important point. Recent improvements in the labor market – employment gains and the falling unemployment rate – owe little to an increase in hiring by employers. Instead, they result mainly from a decline in involuntary separations – layoffs and firing – of workers. Making it possible for workers to keep their jobs is important to the economic recovery.

Routine illnesses can threaten workers’ employment. Too many workers still face an impossible choice: take off from work to care for themselves or their kids when illness strikes and risk losing their jobs or risk their health or that of their children and come into work. A surprisingly high two-fifths of all workers, and three-quarters of low-wage workers, have no paid sick days at all. And most workers who do have paid sick days can’t use them to care for a sick child. Routine illnesses create a crisis for these workers and their families.

Workers too sick to come into work or unable to leave a sick child unattended face the very real threat that they will be fired. And workers know very well what the loss of a job means for them and their families. New evidence confirms the high cost of starting over when you lose your job. Even if a worker who is let go because illness forces them to miss work manages to find another job – no easy task in an economy with nearly 14 million unemployed workers – job displacement results in years of lower pay. Indeed, time out of work to care for family members still falls mainly on women, and is one reason that they earn less, on average, than their male counterparts.

As the JOLTS report shows, the recovery is still too weak to support robust hiring by employers. Workers who are fired for not showing up on the job when they are too sick to get out of bed will not be readily replaced. The employer may choose to leave the position vacant until the recovery gathers strength. Advocates have long argued that access to paid sick days so a worker can stay home and recover from the flu or care for a child with a high fever is more important than ever when the job market is weak. Keeping workers in their jobs is an important factor in improving the labor market. A paid sick days standard that guarantees every worker access to time off when they or a family member come down with a serious cold or flu is good for workers, good for business, and good for an economy still struggling to put people to work.

About the Author: Eileen Appelbaum is a Senior Economist at the Center for Economic and Policy Research with over 20 years of experience carrying out empirical research on workplace practices and labor-management cooperation. Full Bio.

This blog originally appeared in CEPR on March 15, 2011. Reprinted with Permission.

The State of Native America: Very Unemployed and Mostly Ignored

Friday, January 14th, 2011

R.M. ArrietaAs the new year begins, it’s as good a time as any to look at a topic almost completely ignored by mainstream media: how Native American people are faring in the U.S. labor market. The economy and its paucity of jobs dominated U.S. headlines throughout 2010, but news media overlooked the particularly difficult experiences of native peoples.

In late November, the nonpartisan think tank Economic Policy Institute released a report looking at unemployment figures among American Indians. According to Algernon Austin of EPI, unemployment in Indian Country is bleak.

For instance, the national unemployment rate among Native people spiked from 7.7 percent in the first half of 2007 to 15.2 percent in the first half of 2010. Whites experienced a 4.1 percent and 9.1 percent unemployment rate respectively, in the same time period. In his brief “Different Race, Different Recession: American Indian Unemployment in 2010,” Austin writes that:

We find some of the largest disparities in employment between American Indians and whites in Alaska, the Northern Plains, and the Southwest.

These are also the regions of the country where the ratio of the Native to non-Native population is among the highest.

The unemployment numbers are different from those released by the Bureau of Indian Affairs Labor Force Report, whose sample and methodology is different than that used by EPI. The BIA bases its numbers on the American Indian and Alaska Native population that lives on or near the reservation and are eligible for BIA-funded services.

This population, however, according to Austin, is only about one-third of the total American Indian and Alaska Native population.

Austin’s report, based on statistics from Current Population Survey (CPS) data, uses the total American Indian and Alaska Native population, including biracial individuals. Here are his research’s key findings:

  • By the first half of 2010, the unemployment rate for Alaska Natives jumped 6.3 percentage points to 21.3%—the highest regional unemployment rate for American Indians.
  • Since the start of the recession, American Indians in the Midwest experienced the greatest increase in unemployment, growing by 10.3 percentage points to 19.3%.
  • By the first half of this year, slightly more than half—51.5%—of American Indians nationally were working, down from 58.3% in the first half of 2007.
  • In the first half of this year, only 44% of American Indians in the Northern Plains were working, the worst employment rate for Native Americans regionally.
  • The employment situation is the worst for American Indians in some of the same regions where it is best for whites: Alaska and the Northern Plains.

This year, President Obama made efforts to work toward building a better relationship with native people, ordering his administration to seek the advice of native people on the best ways that federal programs and policies could serve them.

In 2010, the Department of Labor’s Employment and Training Administration’s Indian and Native American Program awarded $53 million to 178 grantees to provide employment and training services geared toward unemployed, under-employed and low-income Native American adults.

And it awarded an additional $13.8 million in grants to 78 tribes, tribal consortiums, and tribal nonprofit organizations to offer summer employment and training activities for native youth to offer basic and occupational skills training and job placement assistance.

As outlined in the 2010 White House Tribal Nations Conference Progress Report, Obama requested $55 million in his 2011 fiscal year budget for the Indian and Native American Program, which grants funding to tribes and Native American nonprofits to provide employment and training services to unemployed and low-income Native people.

That’s a 4-percent increase over fiscal year 2010. Whether it will be approved or not is another matter, of course.

This article was originally published on Working In These Times.

About The Author: Rose Arrieta was born and raised in Los Angeles. She has worked at three dailies and two television stations. She currently lives in San Francisco, where she is editor of the Bay Area’s independent community bilingual biweekly El Tecolote. She can be reached at rmarrieta@inthesetimes.com.

Why We Need A Job Party–Today’s Jobs Figures

Friday, January 7th, 2011

Jonathan TasiniIt is still very grim out there for those people who want decent paying work. Not just a job–but a job that pays a fair wage. Today’s numbers make even more clear–we need a Job Party.

I’ll talk about the Job Party a bit more. But, first, let’s look at the numbers:

While the overall picture showed improving job growth, the additions in the private sector in December were not enough to significantly reduce the ranks of the unemployed or keep pace with people entering the work force. The outlook remains bleak for many workers. More than 14.5 million people were out of work in December.

The Department of Labor says the “official unemployment rate” is now at 9.4 percent. Even The Wall Street Journal points out:

The U.S. unemployment rate has now been above 9% since May 2009, or 20 months. That is the longest stretch at such an elevated level since the Second World War. In the recession of the early 1980s, the jobless rate crept to 9% in March 1982 and remained above that mark until September 1983.[emphasis added]

But, the depth of the crisis is better seen here by looking at the U-6 level, which measures “Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force”.

That number is at 16.7 percent.

And that doesn’t even reflect how bad things are. I have pointed out that the minimum wage–which millions of people work for–is a poverty-level wage and a national scandal that covers up the depth of the economic crisis. It should be more than $19 an hour if we took in account the productivity rises over the last 30 years–that is, how hard people have worked compared to the rise in wages.

So, it isn’t just the number of jobs but the QUALITY OF JOBS.

I’m guessing that at least one in five Americans–20 percent–in the U-6 and minimum wage categories does not have decent full-time paying work. And I think the crisis is far bigger if you really look at what it takes to get by in today’s world of higher prices.

Which brings me to the Job Party. Several of us concluded recently that we needed a movement that is focused entirely on the job crisis:

The Job Party is a nationwide grassroots movement to demand an Emergency Jobs Bill for 15 million jobs so every unemployed American can go to work, feed their families, and put a roof over their head.

In December, Congress passed a $900 billion tax bill for 2 years that will produce only 1 million jobs through “trickle-down” economics for the rich. For that same $900 billion, Congress could create 15 million jobs paying $30,000 per year for 2 years!
Not only is that morally right, but it’s economically right too – because those 15 million paid workers would massively increase consumer spending, fuel growth for the whole economy, and greatly reduce the national debt.

It’s a revolutionary change from the failed “trickle-down” policies of the past 30 years that created the Great Recession that’s killing us. We call it “gusher-up” and we demand the politicians in Washington DC embrace it before we all starve and the nation goes broke.

And if this current Congress doesn’t act, we’ll elect a new Congress in 2012 that will.

Move over, Tea Party – the Job Party has arrived. Join us today!

We would like to have people help build this. This is the economic crisis of our times. We can’t wait for the current political system to act.

We are gathering together the best ideas for creating jobs–and we want your ideas. Please contribute YOUR IDEAS.

We are collecting YOUR storiesabout your experience trying to get a decent job.

We are gathering the people who will take to the streets to demand that we start creating real jobs in this country. Sign up!.

This article was originally posted on Working Life.

About the Author Jonathan Tasini: is the executive director of Labor Research Association. Tasini ran for the Democratic nomination for the U.S. Senate in New York. For the past 25 years, Jonathan has been a union leader and organizer, a social activist, and a commentator and writer on work, labor and the economy. From 1990 to April 2003, he served as president of the National Writers Union (United Auto Workers Local 1981).He was the lead plaintiff in Tasini vs. The New York Times, the landmark electronic rights case that took on the corporate media’s assault on the rights of thousands of freelance authors.

Your Rights Job Survival The Issues Features Resources About This Blog