Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Labor Department’

Labor Department Proposes Legalizing Wage Theft

Friday, December 8th, 2017

The Labor Department is moving quickly to establish a new rule that would make tips the property of restaurant owners instead of workers.

This week, President Donald Trump’s administration proposed getting rid of an existing rule that makes tips the property of servers that restaurant owners cannot take away.

Under the new proposal, restaurant owners who pay their employees as little as $7.25 per hour could do whatever they want with tips left by customers for waitstaff. Restaurant owners could even keep the tips for themselves.

The federal minimum cash wage for tipped workers—at just $2.13 per hour—is already lower than for other workers. This low subminimum wage means that tipped workers depend on tips for virtually all their take-home pay after taxes, so they receive their take-home pay directly from customers. Not surprisingly, tipped workers have higher rates of poverty, discrimination and sexual harassment. Undocumented and immigrant workers in the restaurant industry are particularly vulnerable to wage theft.

The administration’s proposal would take money out of the pockets of some of the lowest-paid workers in our country and hand it over to restaurant owners, many of them big corporations.

Does that sound familiar? This is the same kind of reverse Robin Hood scheme as the disgraceful tax bill now making its way through Congress.

We cannot let them get away with this. The administration is trying to sneak this change through without hearing from workers, customers or even employers who disagree at a time of year when tipped workers are the busiest. The deadline for comments on this proposal is Jan. 4, 2018.

This blog was originally published at AFL-CIO on December 8, 2017. Reprinted with permission. 

About the Author: Kelly Ross is the deputy policy director at the AFLCIO.

With All Eyes on DACA, the Trump Administration Is Quietly Killing Overtime Protections

Thursday, September 7th, 2017

On September 5, the administration of Donald Trump formally announced that they won’t try to save Obama’s overtime rule, effectively killing a potential raise for millions of Americans. This disturbing development has largely slipped under the radar during a busy news week, marked by Trump’s scrapping of the Deferred Action for Childhood Arrivals (DACA) program.

Twenty-one states and a number of business groups sued the Obama administration last September, after the Department of Labor (DOL) announced the new rule, accusing the former president of overreach.

That lawsuit led to Amos Mazzant, a federal Obama-appointed judge in Texas, putting the rule on hold last November, shortly before it was set to become law. On August 31, Mazzant struck the rule down, and—less than a week later—Trump’s Department of Justice (DOJ) declined to challenge the District Court’s decision. In a court filing, a DOJ lawyer said that the administration would not appeal.

The Obama administration’s rule would have raised the overtime salary threshold considerably. The threshold hadn’t been increased by any administration to adequately reflect wage growth or inflation, which means that many workers only see overtime pay if they make less than about $23,660 a year. Obama had scheduled that number to be bumped up to about $47,476 after reviewing 300,000 comments on the subject.

“The overtime rule is about making sure middle-class jobs pay middle-class wages,” former Labor Secretary Tom Perez told reporters on a call after the rule was announced in May 2016. “Some will see more money in their pockets … Some will get more time with their family … and everybody will receive clarity on where they stand, so that they can stand up for their rights.”

While the overtime rule faced predictable opposition from Republicans and business groups, it also received backlash from some liberal advocacy organizations. In May 2016, U.S. PIRG, the popular federation of non-profit organizations, released a statement criticizing Obama’s decision. “Organizations like ours rely on small donations from individuals to pay the bills. We can’t expect those individuals to double the amount they donate,” said the group.

Critics of the statement pointed out that U.S. PIRG’s opposition suggests they have employees not being paid for overtime despite their low wages. The group was slammed by progressives for supporting a regressive policy when it benefited their economic interests.

The DOL claimed that the rule would mean a pay increase for about 4.2 million Americans, but the Economic Policy Institute (EPI) contends that the DOL’s figure is far too low. According to EPI, the DOL’s analysis fails to take the impact of George W. Bush’s overtime policies into account and relies heavily on statistics that were generated before he took power. EPI estimates that, because of changes to employee classifications in 2004, roughly 6 million workers had their right to overtime destroyed.

The EPI’s study of the overtime rule determined that about 12.5 million workers would have been impacted if it had been implemented. A wide range of workers would have potentially seen a pay increase, including 6.4 million women, 1.5 million African Americans and 2.0 million Latinos, the EPI concludes.

“Once again, the Trump administration has sided with corporate interests over workers, in this case, siding with business groups who care more about corporate profits than about allowing working people earn overtime pay,” Heidi Shierholz, who leads the EPI’s Perkins Project on Worker Rights and Wages, told In These Times.

The Trump administration’s move might be disappointing for workers’ rights advocates, but it’s hardly surprising. As a presidential candidate in 2016, Trump vowed to kill the overtime rule if elected. “We have to address the issues of over-taxation and overregulation and the lack of access to credit markets to get our small business owners thriving again,” he said in an interview. “Rolling back the overtime regulation is just one example of the many regulations that need to be addressed to do that.”

While many pundits have focused on Trump’s unrelenting series of failures and scandals, his administration has quietly waged a fairly successful war on labor. In addition to nixing one of Obama’s most notable policy achievements, the Trump administration is also poised to stack the National Labor Relations Board with a pro-business majority, has proposed major cuts to the Labor Department and has rolled back safety protections for workers.

Last month, Bloomberg reported that Trump’s Labor Department had created an office specifically designed to reconsider government regulations. The office will be run by Nathan Mehrens, the anti-union lawyer who is also in charge of the department’s policy shop.

Trump geared much of his campaign rhetoric toward the U.S. worker, vowing to dismantle exploitative trade agreements and bring back jobs. However, his administration has simply emboldened the anti-labor forces that have dictated economic policy for decades.

This blog was originally published at In These Times on September 7, 2017. Reprinted with permission. 

About the Author: Michael Arria covers labor and social movements. Follow him on Twitter: @michaelarria

When the Parades Are Over, Who Stands With Unions?

Wednesday, September 6th, 2017

The Labor Day parades are over. The bands have packed up. The muscular speeches celebrating workers are finished. The trash is getting collected from parks across the country.  And now conservative politicians from Trump on down will revive their systematic efforts to weaken unions and undermine workers.

Trump – despite all the populist bunting that decorates his speeches – sustains the deeply entrenched Republican antipathy to organized workers. Their attack is relentless.

Trump’s budget calls for deep cuts in the Labor Department, eviscerating job training programs and cutting – by 40 percent – the agency that does research on workplace safety. It would eliminate the program that funds education of workers on how to avoid workplace hazards. It even savages money for mine safety enforcement for the miners Trump claims to love.

Trump is systematically reversing any Obama rule that aided workers. He signed legislation scrapping the rule that required federal contractors to disclose violations of workplace safety and employment and anti-discrimination laws. His Labor Secretary has announced his intention to strip millions of workers of the overtime pay they would have received under Obama DOL regulations.

Trump is creating a pro-business majority at the National Labor Relations Board, which will roll back Obama’s efforts to make it easier for workers to organize, and make it possible to hold home companies responsible for the employment practices of their franchisees.

The GOP’s Anti-Union Strategy

This is simply standard operating procedure for today’s Republican party. Long ago, Republicans realized that organized labor was a central “pillar,” as Grover Norquist described it, of Democratic Party strength. Now Republican office holders at every level – from county officials to statehouses to judges – know that their job is to weaken labor unions. From right to work laws to administrative regulations to court challenges, Republicans sustain an unrelenting attack.

And aided by our perverse globalization strategies, they’ve been remarkably successful. Unions are down to about 7 percent of the private workforce. Public employee unions, a relative stronghold, are facing court challenges – essentially allowing workers to enjoy the benefits of union negotiations without paying dues — that will decimate their membership.

True conservatives would embrace unions. They are a classic “mediating institution,” a voluntary civic organization between government and the individual. Unions increase the voice and power of workers in the workplace, helping to keep executive accountable, and to protect workers from abuse. They also educate their members, teach democracy, and are central to community volunteer and service efforts. They teach and practice democratic citizenship.

The modern Republican Party, of course, is the party of big business and big money. It isn’t conservative; it is partisan. And weakening unions is a constant target.

While Republicans understand how important unions are to Democrats and to workers, Democrats don’t seem to get it. Sure, they line up to get union donations; most will vote to defend unions and worker programs. But as the money in politics has gotten bigger and the unions have gotten weaker, the Wall Street wing of the Democratic Party has become more powerful.

The result is clear. When Republicans get control, they attack unions relentlessly. When Democrats gain control, as they did in 2012 with the election of Barack Obama and Democratic majorities in both houses, labor law reform, empowering workers to organize is not a priority. Obama essentially told unions that if they could get the votes, he’d sign the law, but he wasn’t leading the charge. And so as under Carter and Clinton, changing the law to make it easier for workers to organize and bargain collectively didn’t happen.

Unions Under Siege

Now unions are under siege. Yet it is hard to imagine how a small “d” democracy can be robust, or a large D Democratic Party can regain its mojo without a revived movement of workers. It’s time for Democrats at every level to realize: strengthening workers and their unions isn’t an elective; it’s a requirement and a first priority.

The loop works like this: Unions are in decline. As a result, unions lose influence inside the Democratic Party. The Democrats then feel no pressure to stem unions’ decline, and the economically disadvantaged lose what was once their most powerful advocate. Then the cycle continues. We cannot revive unions, and we have no template for egalitarian politics without them.

Unions aren’t simply economic actors. They’re political actors. Labor still needs the Democrats. The Democrats, more than they realize, still need labor. But most of all, all those who want to build a fairer society need their partnership.

Republican elites understand the doom loop. Big business, small business, and Tea Party alike have pushed hard against unions. As the parties have polarized, Republicans have taken the gloves off, risking the votes of the 40 percent of union members who back Republicans in order to crush a pillar of the Democratic coalition. Even President Bernie Sanders would have real trouble rebuilding unions in the face of a Republican Congress and a federal judiciary eager to swat down pro-labor executive action.

Even without Republican politicians digging their graves, labor unions face deep challenges. In the private sector, unions must sign contracts workplace by workplace. Gawker writers here and home-care workers there will continue to organize their workplaces, but the barriers remain dauntingly high. In the public sector, unions have stood steady. But cops and teachers alike face blowback for putting their own prerogatives above the public interest. And if the Supreme Court bans the collection of agency fees in the public sector (thus imposing “right to work”), public-sector union membership could halve in a decade.

This blog was originally published at OurFuture.org on September 5, 2017. Reprinted with permission. 

About the Author: Robert Borosage is the founder and president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future. The organizations were launched by 100 prominent Americans to develop the policies, message and issue campaigns to help forge an enduring majority for progressive change in America. Mr. Borosage writes widely on political, economic and national security issues. He is a Contributing Editor at The Nation magazine, and a regular blogger at The Huffington Post. His articles have appeared in The American Prospect, The Washington Post,Tthe New York Times and the Philadelphia Inquirer. He edits the Campaign’s Making Sense issues guides, and is co-editor of Taking Back America (with Katrina Vanden Heuvel) and The Next Agenda (with Roger Hickey).

Labor Department wants to reward financial advisors at the expense of consumers

Thursday, August 10th, 2017

The Labor Department would like to delay a rule that would require financial advisors to act in the best interest of their customers and their retirement accounts.

The federal court filing, made on Wednesday, said the department wants to delay implementation of the rule to July 2019. The full implementation of the rule is currently set for January 2018.

In February, President Donald Trump ordered a review of the Obama-era regulation. Financial companies and lobbyists representing them have opposed the rule. On the same day of the order, White House advisor Gary Cohn, who is a former Goldman Sachs executive, told the Wall Street Journal he thought it was a “bad rule.” Congress has introduced bills trying to kill the rule on multiple occasions.

Right now, there are two standards investors must be aware of — the fiduciary standard and suitability standard. A financial advisor operating under what is called the “suitability standard” is only required to make sure a client’s investment is suitable for the client’s finances, age, and risk tolerance at that point in time, but they don’t have a great legal obligation to monitor the investment for the client.

But under the fiduciary standard, an advisor has to keep monitoring the investment as well as the customer’s overall financial picture. Under the fiduciary standard, advisors also must disclose all of their conflicts of interest, fees, and commissions. Essentially, this makes it more difficult for advisors to push investments that will make them money but may not be in the best interest of their clients.

Retirement plans have changed a lot since the 1970s, when more private workers were enrolled in defined-benefit plans funded by their employers that promised a certain monthly benefit once they retired. Now more people have defined-contribution plans, which don’t promise a specific benefit for people when they retire, requiring them to contribute money to an account they are responsible for. Only 10 percent of workers older than 22 have a traditional pension and only 6 percent of Millennials do. Most workers have to choose how to invest these contributions and manage their own retirement savings but most Americans aren’t knowledgeable on investment decisions.

A 2016 Prudential Investments survey of more than 1,500 Americans showed 42 percent of Americans surveyed didn’t know how their assets were allocated in their portfolios, and 40 percent said they didn’t know how to prepare for retirement. Investment terms are often difficult to understand and investors may be overwhelmed by choices.

The financial industry argument against the rule is essentially that a commission system is necessary to pay for financial advice for the average investor, despite the adverse incentives it creates. Gary Burtless, an economist and senior fellow at the Brookings Institution, has disputed this argument.

“This claim does not seem terribly compelling. There are alternative ways to compensate financial advisors that do not create an obvious conflict between the interests of advisors and retirement savers,” Burtless writes.

The financial industry tried to persuade the public that investors were up in arms over the rule. The Financial Services Institute claimed that consumers sent over 100,000 letters with opinions on the rule. But Money reviewed 100 of the letters FSI claimed were from investors, and found that 64 percent came from financial advisors and people involved in financial companies.

The Trump administration would have to jump through numerous hoops to reverse the progress made on the rule, however, just as Obama officials did when they first wanted to advance the rule. The final rules were issued last year, but first the department took thousands of public comments, held four days of hearings, and 100 stakeholder meetings. The administration would have to field all of these comments and go through this process again to justify whatever changes it would make. It took about six years for the Obama administration to advance the fiduciary rule.

This article was originally published at ThinkProgess on August 10, 2017. Reprinted with permission.

About the Author: Casey Quinlan is a policy reporter at ThinkProgress. She covers economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.

Trump has bad news for millions of workers in line for overtime pay under Obama

Friday, July 28th, 2017

Donald Trump’s major life goal at this point seems to be rolling back everything good President Barack Obama did for the country and its people—and now he’s coming for your overtime pay. Obama had sought to raise the overtime eligibility threshold to include millions more workers, a change that was supposed to go into effect in December but was blocked at the last minute by a judge. Now, of course—of course—Mr. Populist is rolling back Obama’s expansion. Trump’s Labor Department announced Tuesday that it would be doing something to the overtime eligibility threshold, but it’s not clear what, and they’re definitely not going to be raising the threshold to $47,000 like Obama proposed.

In the final days of the Obama administration, the Labor Department had appealed the judge’s decision blocking implementation of the raise, and Trump’s Labor Department agreed in court that it has the power to set the eligibility threshold. But Labor Secretary Alexander Acosta plans to use that power in a very different way than Tom Perez did under Obama:

On Tuesday, the department said in light of the pending appeal, it decided to issue a request for comments rather than skip immediately to rescinding or revising the rule.

The agency asked for input on whether the current threshold of $23,660 set in 2004 should be updated for inflation, and whether there should be multiple levels based on region, employer size, industry or other factors. […]

The department also asked employers to explain how they prepared for the rule to take effect and whether it has had an outsize impact on small businesses and particular industries.

The department said it was considering eliminating the salary threshold, leaving overtime eligibility to be based on workers’ job duties.

Mind you, the Obama administration already had a lengthy comment period and took 300,000 comments. But we know the Trump regime will be listening to comments from one set of people in particular: bosses who want to exploit their workers.

This blog was originally published at DailyKos by Laura Clawson on July 26, 2017. Reprinted with permission.

About the Author: Laura Clawson is labor editor at DailyKos.

Tell the Labor Department Not to Repeal the Persuader Rule

Monday, June 19th, 2017

The Labor Department issued a proposal on Monday that would rescind the union-buster transparency rule, officially known as the persuader rule, designed to increase disclosure requirements for consultants and attorneys hired by companies to try to persuade working people against coming together in a union. The rule was supposed to go into effect last year, but a court issued an injunction last June to prevent implementation. Now the Trump Labor Department wants to eliminate it.

We wrote about this rule last year. Repealing the union-buster transparency rule is little more than the administration doing the bidding of wealthy corporations and eliminating common-sense rules that would give important information to working people who are having roadblocks thrown their way while trying to form a union.

AFL-CIO spokesman Josh Goldstein said:

The persuader rule means corporate CEOs can no longer hide the shady groups they hire to take away the freedoms of working people. Repealing this common-sense rule is simply another giveaway to wealthy corporations. Corporate CEOs may not like people knowing who they’re paying to script their union-busting, but working people do.

If the rule is repealed, union-busters will be able to operate in the shadows as they work to take away our freedom to join together on the job. Working people deserve to know whether these shady firms are trying to influence them. The administration seems to disagree.

A 60-day public comment period opened Monday. Click on this link to leave a comment and tell the Labor Department that we should be doing more to ensure the freedom of working people to join together in a union, not less. Copy and paste the suggested text below if you need help getting started:

“Working people deserve to know who is trying to block their freedom from joining together and forming a union on the job. Corporations spend big money on shadowy, outside firms that use fear tactics to intimidate and discourage people from coming together to make a better life on the job. I support a strong and robust persuader rule. Do not eliminate the persuader rule.”

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.

Sometimes hiring discrimination is committed by a bigot—and sometimes it's by standardized test

Monday, May 29th, 2017

You might think that a standardized test would be a way to eliminate discrimination from job hiring—everyone gets the same questions, and everyone’s answers are graded in the same way. But you’d be wrong. In fact, some standardized tests used widely by employers looking to screen job-seekers can be instruments of discrimination, Will Evans reports. One test alone caused illegal discrimination against more than 1,000 people, according to the Labor Department:

At a California factory for Leprino Foods Co., the world’s largest producer of mozzarella cheese, WorkKeys put 253 Latino, black and Asian applicants at a disadvantage, the department found. Leprino Foods eventually agreed to pay $550,000 and hire 13 of the rejected job seekers.

At a chemical plant in Virginia, an auto parts factory in upstate New York and an engine plant in Alabama, the tests also illegally screened out minority applicants, according to Labor Department records. At a General Electric Lighting plant in Ohio and an aluminum factory near Spokane, Washington, WorkKeys unfairly hurt the chances of female applicants, officials found.

The tests didn’t adequately measure whether an applicant would be good at the job, violating civil rights protections, according to the government. The employers paid a settlement to unsuccessful applicants and scrapped the tests.

But other employers—including local and state governments in many places—continue to use tests that aren’t relevant to the jobs they’re hiring for, potentially screening out people who are qualified for the jobs they’re trying to get.

While some workers have gotten settlements for the test-based discrimination they faced, they’re a drop in the bucket. And Evans’ story includes a warning for the future:

The cases faulting WorkKeys represent just a sample of potential problems in the job market, because the government agency that brings them audits a small fraction of federal contractors each year. That office could shrink under President Donald Trump, who has called for slashing the Labor Department budget overall by 21 percent.

Of course.

This blog was originally published at DailyKos.com on May 29, 2017. Reprinted with permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and labor editor since 2011.

Trump Labor Department has a message to employers: Workplace safety? Not a priority.

Wednesday, March 15th, 2017

Donald Trump’s Labor Department is sending employers a message that it’s open season on worker safety—by cutting off public messages about enforcement of worker safety rules. What Fair Warning noticed 10 days ago is still going on today:

In a sharp break with the past, the department has stopped publicizing fines against companies. As of Monday, seven weeks after the inauguration of President Trump, the department had yet to post a single news release about an enforcement fine. […]

“The reason you do news releases is to influence other employers” to clean up their acts, said David Michaels, who was an administrator of the Occupational Safety and Health Administration, the agency within the Labor Department that oversees workplace safety, during much of the Obama administration.

If there aren’t news releases, people are much less likely to hear which local companies are endangering their workers, which means that much less pressure on the companies to keep workers safe. That’s not the only red flag about the direction Trump and his people will take the Occupational Safety and Health Administration:

Industry groups are pushing back against an Obama-era regulation meant to exert pressure on companies to better comply with record-keeping rules. A provision of that rule, which was supposed to take effect last month, would require companies to electronically submit accident data to OSHA so the agency could post the information on a public website. As recently as early January, OSHA said on its website that it expected the site to be live in February.

But in recent weeks, the agency changed the wording so that it now states, “OSHA is not accepting electronic submissions at this time.”

“That was not an accident,” said Mr. Conn, the lawyer. “That was a big signal to employers that even if they report the data, it will not be published online.”

Republicans are also rolling back increased workplace safety fines; delaying a new rule limiting exposure to beryllium, which can cause a chronic lung disease; and in other ways weakening OSHA’s enforcement powers. But hey, the public is less likely to know about the deaths that result, so politicians are less likely to get pressure from people who care about dead workers, while industry lobby groups will stay just as active pushing for less and less enforcement. So Republicans have got it all worked out.

This article originally appeared at DailyKOS.com on March 14, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

President Obama’s Latest Manufacturing Push

Tuesday, October 28th, 2014

Dave JohnsonThe White House unveiled new executive actions on Monday
directing federal money toward new technologies, apprenticeship programs and competitions designed to assist small manufacturers. The idea is to make the U.S. a magnet for new jobs and investment.

 

The new executive action will:

  • Allow the Pentagon, NASA, and the Energy and Agriculture departments to spend $300 million to develop advanced materials and new technology for sensors and digital manufacturing.
  • Direct $100 million in Labor Department funds for apprenticeship programs aimed at advanced manufacturing.
  • Authorize the Commerce Department to spend $150 million over five years in 10 states to help manufacturers adopt and market new technologies.
  • Give manufacturers access to state-of-the-art facilities like those at national labs – to connect industry and universities on research and development and develop ‘technology testbeds’ where companies can design, prototype and test new products and processes.

President Obama began the Advanced Manufacturing Partnership in June 2011. The administration so far has launched four manufacturing innovation institutes – “hubs” – and there are four more on the way. They have also invested nearly $1 billion for community colleges to train workers for advanced manufacturing jobs.

There is expanded investment in applied research for emerging manufacturing technologies, and a new initiative to get returning veterans into jobs in advanced manufacturing.

This blog originally appeared in Ourfuture.org on October 27, 2014. Reprinted with permission. http://ourfuture.org/20141027/president-obamas-latest-manufacturing-push

About the Author: Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

 

The Phony Jobs Report Hype, A Very Sick Economy & Millions of Workers Who Don’t Count

Tuesday, October 7th, 2014

jonathan-tasiniThis was almost predictable: the traditional media, and too many bloggers who regurgitate what they read in the traditional media, are buying into the “rebound” in the economy because of today’s Labor Department report; the stock market goes up; and, I’m certain, pretty soon, the White House will be taking credit for all this and, subtly or not so subtly, arguing that, see, aren’t we great, vote for us. It’s nonsense. So, here is the visual to remember:

rate

 

 

 

 

 

 

 

 

That chart does not reflect the 5.9 percent number being touted today–but the point is still the same: we have a very sick economy where people cannot find meaningful, solid, decent-paying work and are dropping out of the workforce. As Dean Baker of the Center for Economic and Policy Research points out, in an email just landing in my inbox:

“…there was no change in the employment-to-population ratio which remained fixed at 59.0 percent. In fact, labor force participation fell by 0.3 percentage points for white men in September and 0.2 percentage points for white women.”

Even the centrist, Clinton-Administration-in-waiting-awash-in-corporate-donations, free-market-cheerleaders, the Center for American Progress said yesterday:

“Policymakers and pundits have taken far too much comfort in the decline in the headline unemployment rate. The extent to which unemployment has dropped depends on how it’s measured, especially in this recovery. The typical measure, called U-3 by economists, is pretty restrictive: It counts the percentage of people who are actively looking for work but cannot find it. There are other, broader measures we can look at. Perhaps the most complete picture, called U-6, includes marginally attached workers—those who have looked for work recently but are not looking currently—and those working part time who would prefer full-time work. U-6 is always higher than U-3, but it has gotten a lot higher since the recession, and the gap has been essentially unchanged since January.”

And:

“Another reason that the traditional unemployment rate is less informative about the overall health of the labor market is the fact that today the number of long-term unemployed, while down sharply from its postrecession peak, is still almost 50 percent higher than its highest prerecession level on record. There are still 3 million Americans who have been unemployed for half a year or longer and are still actively searching for work. Thirty-three percent of all unemployed fall into this long-term unemployed category. The average length of time someone has spent unemployed is about seven-and-a-half months, almost double what it was before the recession.[emphasis added]”

Back to Dean Baker:

“The number of people involuntarily employed part-time by fell 174,000 to 7,103,000. This is extraordinarily high given the unemployment rate. The number of people choosing to work part time rose slightly and now stands 642,000 above its year-ago level. This presumably is the result of people taking advantage of Obamacare and getting insurance through the exchanges or expanded Medicaid rather than their employers.[emphasis added]”

So, this means: A persistent, large core of workers–real people–are in part-time jobs because they can’t find full-time work. This is a trend that goes back way before the financial crisis. It is, in fact, the result of a conscious corporate decision to REDUCE the number of full-time, good-paying jobs, and to work off of part-time workers.

It means more people have dropped out of the job market, over time, because it’s just too damn depressing to look for real, meaningful, stable work.

What really has happened here is that the frame has shifted. For example, when elites, including Democrats, talk about “full employment”, they mean 5.5 percent or so–which, back in the day, would be seen as unconscionably high; full employment, at worse, was pegged at 4 percent (and could probably go a bit lower).

But, there is an acceptance of a certain level of desperation now and exploitation that would have been seen as immoral say 30-40 years ago.

In my opinion, it is much more helpful, for the sake of long-term political chance, to challenge the chatter of these jobs reports, pointing out the realities facing millions of people.

The economy is very sick because people can’t make a decent living. This is not recovery.

This blog originally appeared in Workinglife.org on October 3, 2014. Reprinted with permission. http://www.workinglife.org/2014/10/03/the-phony-jobs-report-hype-a-very-sick-economy-millions-of-workers-who-dont-count/.

About the author Jonathan Tasini: On any given day, I think like a political-union organizer or a writer — or both. I’ve done the traditional press routine including The Wall Street Journal, CNBC, Business Week, Playboy Magazine, The Washington Post, The New York Times and The Los Angeles Times. One day, back when blogs were just starting out, I created Working Life. I used to write every day but sometimes there just isn’t something new to say so I cut back to weekdays, with an occasional weekend post when it moves me. I’ve also written four books: It’s Not Raining, We’re Being Peed On: The Scam of the Deficit Crisis (2010 and, then, the updated 2nd edition in 2013); The Audacity of Greed: Free Markets, Corporate Thieves and The Looting of America (2009); They Get Cake, We Eat Crumbs: The Real Story Behind Today’s Unfair Economy, an average reader’s guide to the economy (1997); and The Edifice Complex: Rebuilding the American Labor Movement to Face the Global Economy, a critique and prescriptive analysis of the labor movement (1995).

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