Posts Tagged ‘unemployment’
Monday, May 9th, 2016
Under current law, states aren’t allowed to institute drug tests for unemployment benefits. But that hasn’t kept Wisconsin Gov. Scott Walker (R) from trying.
In July, Walker approved legislation that would implement drug tests for both unemployment benefits and food stamps, neither of which are currently permissible. To get his way, he’s suing the government to allow him to move forward with implementation, arguing that these programs are “welfare” just the same as the welfare cash assistance program, Temporary Assistance for Needy Families, that does in fact allow states to implement drug tests.
But in the meantime, he took steps this week to do as much as he can under his limited authority. On Wednesday he authorized new rules that allow employers to voluntarily submit information about drug tests they made people take as a condition of employment. If any of those employees end up seeking unemployment benefits but failed the employers’ drug tests or declined to take one, they can be denied benefits unless they agree to get taxpayer-funded drug treatment.
“This new rule brings us one step closer to moving Wisconsinites from government dependence to true independence,” Walker said. “We frequently hear from employers that they have good paying jobs, but they need their workers to be drug-free. This rule is a common-sense reform which strengthens our workforce by helping people find and keep a family supporting job.”
But past experience from states that drug test welfare recipients shows they are anything but common sense. The positive test result rates are far lower than the drug use rate for the American population as a whole — last year, some states didn’t turn up any positive tests at all. Meanwhile, they are quite costly: states collectively spent nearly $2 million administering the programs over the last two years.
Walker’s plans to spread drug tests to other programs are mostly on hold. In the meantime, beyond suing the government, he’s asking Congress to give him permission. He’s reached at least one sympathetic ear in Rep. Robert Aderholt (R-AL), who chairs the House Agriculture Appropriations Subcommittee that administers food stamps. He’s put forward a measure that would allowing testing for that program.
This blog originally appeared at Thinkprogress.org on May 6, 2016. Reprinted with permission.
Bryce Covert is the Economic Policy Editor for ThinkProgress. Her writing has appeared in the New York Times, The New York Daily News, New York Magazine, Slate, The New Republic, and others. She has appeared on ABC, CBS, MSNBC, and other outlets.
Monday, March 7th, 2016
The U.S. economy added 242,000 jobs in February and unemployment was 4.9%, unchanged from January, according to figures released this morning by the U.S. Bureau of Labor Statistics. This continues the record string of months with job growth.
In response to the February jobs numbers, AFL-CIO Chief Economist William Spriggs tweeted the following:
Last month’s biggest job gains were in health care and social assistance (57,000), retail trade (55,000), food services and drinking places (40,000), private educational services (28,000) and construction (19,000). The mining industry continued to see losses. According to BLS, other major industries, including manufacturing, wholesale trade, transportation and warehousing, financial activities, professional and business services, and government, showed little change over the month.
Among the major worker groups, the unemployment rate for adult men (4.5%), adult women (4.5%), teenagers (15.6%), whites (4.3%), blacks (8.8%), Asians (3.8%) and Latinos (5.4%) showed little or no change.
The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 2.2 million in January and accounted for 27.7% of the unemployed.
This blog originally appeared in aflcio.org on March 4, 2016. Reprinted with permission.
Kenneth Quinnell is a long time blogger, campaign staffer, and political activist. Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars. He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek. He has over ten years as a college instructor teaching political science and American history.
Tuesday, February 9th, 2016
Chicago schools and teachers are once again under serious attack from Mayor Rahm Emanuel and Illinois Gov. Bruce Rauner, and once again, the Chicago Teachers Union is showing that it is a powerful force. Thousands of teachers and supporters rallied Thursday, with 16 people arrested, protesting massive proposed cuts and layoffs:
Officials with Chicago Public Schools said Tuesday they’re ready to cut $100 million from school budgets and force teachers to pay more pension costs after their union rejected the latest contract offer, ratcheting up the tone of contentious negotiations that have lasted over a year. […]
The latest flare-up followed an offer a CTU bargaining team rejected Monday, after both sides had deemed it “serious.” The proposal included pay raises and job security, but union officials said it didn’t address school conditions or a lack of services.
The teachers have authorized a strike, though that wouldn’t happen until spring if it happens at all.
? Weeks after the West Virginia Senate passed an anti-union bill, the state House followed suit. A PPP poll conducted for the state AFL-CIO found high support for unions and opposition to laws weakening them.
? A union has filed a National Labor Relations Board petition to represent New York Uber drivers.
? Speaking of which, New York Uber drivers are pissed, with good reason.
A crowd of 600 drivers gathered outside the Uber office in Long Island City, Queens, to protest a 15 percent reduction in fares last month, which also means 15 percent lower wages. That pay cut is on top of Uber’s 20 percent slashing of fares in 2014. All things being equal, drivers who began less than two years ago have seen their pay tumble a whopping 35 percent.
Actually, it’s not just New York.
Last September, Dallas-area drivers for UberBlack, the company’s high-end car service, received an email informing them that they would be expected to start picking up passengers on UberX, its low-cost option.
The next day, when the policy was scheduled to go into effect, dozens of drivers caravaned to Uber’s office in downtown Dallas and planted themselves outside until company officials met with them.
? Indiana repealed prevailing wage protections to let them lower wages on public construction projects … and costs have gone up since then.
? Not your typical Alabama labor story:
The state’s largest employer – the University of Alabama at Birmingham and UAB Medicine – plans to raise employees’ minimum wage to $11 an hour beginning in March.
UAB employs more than 23,000 faculty and staff. The institution currently pays $8.24 an hour, about a dollar higher than the federally mandated minimum wage.
? For union members: seven steps to opening up bargaining.
Monday, November 16th, 2015
October provided good news for the economy. The economy added 271,000 jobs, according to the U.S. Bureau of Labor Statistics, a big increase over September’s number of 137,000 jobs. The unemployment rate also fell fractionally from 5% to 5.1%.
Average hourly private-sector earnings were up 9 cents, which, if sustained, will finally start producing real wage gains for ordinary working Americans.
In response to the October jobs report, AFL-CIO Chief Economist William E. Spriggs said:
While this month’s numbers are good, job growth has yet to deliver sustained wage gains that working people need to lead better lives. This means we face the deeper challenge of fashioning policy changes to create the institutional structure for shared prosperity; aggressive, progressive solutions, not corporate driven trade deals. Unfortunately, while our economy remains fragile, the now public TPP text proves our fears of just how damaging it could be to our economy. The fight for full employment and rising wages starts with rejecting this bad deal and embracing economic policies that put people and families first.
AFL-CIO Senior Economic Policy Adviser Thomas Palley added:
This report is strong, which is good news. But the report also reveals the contradictions in our economy. Good news for Main Street is interpreted as bad news by Wall Street. The challenge for the Federal Reserve, and the standard by which it will be judged, is to ensure this type of news becomes ‘normal’ and not a one month exception that is used to justify hitting the brakes.
This blog originally appeared at AFL-CIO on November 10, 2015. Reprinted with permission.
About the Author: Jackie Tortora is the blog editor and social media manager at the AFL-CIO.
Friday, October 2nd, 2015
The surprisingly disappointing September unemployment report – 142,000 new jobs created compared to an expectation of more than 200,000 – should break once and for all two illusions about our ability to sustain a robust economy.
The first illusion is that there is no penalty for the continuing lack of public investment in the fundamentals of the real economy – from the schools that develop the skills and creativity of our future workforce to the transportation networks that enable us to move goods and people through our communities.
Years ago we should have had a place a major plan to bring all of our common assets – from schools to roads to water systems to our energy grid – into the 21st century. Not only would this have created millions of jobs, but it would have set the nation up for sustainable, more ecologically responsible, long-term growth. We should have taken advantage of the near-zero borrowing costs and the willingness of the markets – notwithstanding the sky-is-falling bleating of the chattering class – to allow the United States to take on more debt as long as it was wisely used to build for the future.
Labor Secretary Thomas Perez said in an interview on Bloomberg today that the federal spending constraints imposed by the Republican Congress – the “sequester caps” – mean the economy is producing 500,000 fewer jobs a year than it would if those constraints were lifted. Those jobs would range from construction workers to teachers to health care workers.
The second illusion is that we can continue down the road of corporate-driven so-called “free trade” – which has given us month after month of “enormous, humongous” trade deficits – and have a strong Main Street economy. Earlier this year, the White House Council of Economic Advisors issued a report that noted that during the second quarter of the year, “net exports subtracted nearly 2 full percentage points from quarterly GDP growth.” Of course it would: every month of trade deficits running between $40 billion and $50 billion represents that much less economic activity that would benefit American workers and the American economy. Plus, our strong dollar makes our exports more expensive and thus less attractive to potential foreign customers. It is no wonder, then, that this month’s jobs report reflects continued weakness in our manufacturing sector, which would be a source of good=paying jobs if it were stronger.
Federal Reserve chair Janet Yellen has warned repeatedly that there was a limit to what the Fed’s zero-interest-rate policy could accomplish without a pro-growth and pro-people fiscal policy to complement it. That was clear even with the sunnier initial summer jobs reports. Now that those reports have been revised to show that we’ve been averaging only an additional 167,000 jobs a month in this past three months – just enough to tread water – the truth of what Yellen has been saying is in even sharper relief.
How the Obama administration and Congress should respond is clear: End the senseless budget sequester caps, get a long-term transportation bill passed this month and don’t approve a Trans-Pacific Partnership trade bill that continues the pattern of chronic trade deficits and outsourced jobs. The political machinery in Washington seems almost hopelessly constipated, but we should still seize the professed shock of this month’s employment news to change the political conversation in a way that could lead to long-term change.
This blog was originally posted on Our Future on October 2, 2015. Reprinted with permission.
About the Author: Isaiah J. Poole has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.
Thursday, August 27th, 2015
The recently released minutes of the last meeting of the Federal Reserve Board’s Open Market Committee revealed there was serious discussion of the fact the labor market still showed signs of weakness. A primary issue was the lack of evidence of strong wage growth, which would be a clear signal the labor market was tightening. This has unleashed the Wall Street bettors, who want a jump on the Fed’s changing monetary policy, giving them more active play on the bond market, where interest rate movements can fuel their gambling addiction. The voices being raised to have the Fed raise interest rates march out lots of theory to predict uncontrolled inflation, despite a global slowdown, falling oil and natural resource prices, and flat real wages. We must hope that the Fed makes policy based on what is good for the economy, not what is good for the reckless gamblers on Wall Street.
The current directive to the Fed comes from the Humphrey-Hawkins Act, which in 1978 established that the nation’s primary economic policy is to achieve full employment, within reason—not by creating unsustainable budget deficits or igniting uncontrollable inflation. Unfortunately, many have twisted the legislation’s purpose to their own ends, changing the act’s intent to balance budgets and maintain low inflation in hopes those policies don’t increase unemployment. The act does not place full employment on equal footing with fighting inflation; it merely constrains full-employment policy to a measure of prudence.
With that in mind, the Fed should understand it is not at full employment. In addition to wages rising with productivity, a main tenant of evidence of full employment, the Fed needs to embrace some additional senses of full employment. One is that discrimination would disappear, since it would become prohibitively costly in a full-employment economy.
A problem for the Fed is that there is little diversity in its staffing, which reflects the low level of diversity among economists. Economists have convinced themselves there is little to explain about the persistence of the disparity in black and white unemployment rates, the ratio of which remains stubbornly at 2-to-1. It is enough to assume there are lower skill levels among African Americans and societal structural issues that permanently disadvantage African Americans, and that these circumstances will persist no matter what the level of unemployment.
Of course, many economists do appreciate that this pat answer is hard to reconcile with the great sensitivity that the black unemployment rate has to the economy—a tightening labor market brings down the black unemployment rate at twice the rate for whites. That makes the structural argument difficult to maintain.
There is another key element. The unemployment rate gaps between blacks and whites are stubborn at every education level, and the gaps are glaring. In fact, what the unemployment rate gaps for blacks suggest is the old adage that blacks must be twice as good to compete in the labor market with whites. The unemployment rate for blacks with more education is similar to that of whites with less education. This is true for blacks at all education levels, from college graduates to associate degree holders to high school graduates. And it is very difficult to argue that those huge gaps do not reflect discrimination.
When the labor market tanks, and the number of unemployed workers per job opening goes up, the gaps faced by better educated blacks to less educated whites get wider. Black college graduates find themselves with unemployment rates closer to white high school graduates, and blacks with associate degrees find themselves with unemployment rates worse than white high school dropouts.
When the labor market tightens, unemployment rates for blacks with more education improve such that they are better than those of less educated whites, though still off the mark compared with equally educated whites. When employers are faced with two unemployed working people for each job opening, many stop seeing color and start seeing qualifications. Employers faced with a growing economy and smaller applicant pools find it would now cost to discriminate by passing over the qualified African American applicant. We don’t know what would happen if the nation maintained its commitment to full employment, because just as the black unemployment rates near parity with whites, our economic policy switches all reverse to slow the economy, increase unemployment and push blacks off the path to equality.
The Fed needs to see that its policies are part of that problem. Slowing the economy before we reach full employment means employers never have to raise wages nor understand the costs of their discriminatory practices.
This blog originally appeared in AFL-CIO on August 21 ,2015. Reprinted with permission.
About the Author: William E. Spriggs is the Chief Economist for AFL-CIO. His is also a Professor at Howard University. Follow Spriggs on Twitter: @WSpriggs.
Tuesday, May 12th, 2015
I remain in the camp of people who are entirely unimpressed by the economic figures raved about by most pundits, economists and The White House. We all know that pay is not growing. But, there’s another thing to be concerned about: the missing 3.1 million workers. The rebound fans:
The American job market rebounded in April, the government said on Friday, helping to ease worries that the economy was on the brink of another extended slowdown after a bleak winter in which the overall economy stalled. But the growth in jobs failed to translate, once again, into any significant improvement in pay.
Uh, but wait a minute. What about a whole bunch of people who are off the radar screen? The Economic Policy Institute is hunting for the “missing workers”:
In today’s labor market, the unemployment rate drastically understates the weakness of job opportunities. This is due to the existence of a large pool of “missing workers”—potential workers who, because of weak job opportunities, are neither employed nor actively seeking a job. In other words, these are people who would be either working or looking for work if job opportunities were significantly stronger. Because jobless workers are only counted as unemployed if they are actively seeking work, these “missing workers” are not reflected in the unemployment rate.[emphasis added]
What’s the number today?:
Total missing workers, April 2015: 3,140,000 Unemployment rate if missing workers were looking for work: 7.3%[emphasis added]
Which would mean the real unemployment rate–and I’m even leaving out the people who would like full-time work but can’t find it (but are counted as “employed”)–is double what the official number tells us. – See more at: http://www.workinglife.org/2015/05/08/the-missing-3-million/#sthash.m22tUoHe.dpuf
This blog was originally posted on Working Life on May 8, 2015. Reprinted with permission.
About the Author: The author’s name is Jonathan Tasini. Some basics: I’m a political/organizing/economic strategist. President of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years; my goal is to find the “white spaces” that need filling, the places to make connections and create projects to enhance the great work many people do to advance a better world. I’m also publisher/editor of Working Life. 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 more than a decade ago, 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 (slacker), 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). I’m currently working on two news books. My organizational life has brought me the gift of working with many talented, committed people over the past 30 years, principally during the 13 years I had the honor to serve as president of the National Writers Union (UAW Local 1981). Aside from that, it’s baseball, and counting the winter days until pitchers and catchers report.
Wednesday, December 31st, 2014
To wrap up 2014 Workplace Fairness has added 105 new pages to keep you informed about the latest developments in employment law.
We now offer detailed information, by state, on the processes for filing a workers compensation claim, and for filing an unemployment claim. Find out how to file a claim in your state, what deadlines you might face, and what benefits you may be eligible for.
In our Discrimination section we’ve added a new page on genetic information discrimination, including the Genetic Information Nondiscrimination Act (“GINA”). As technology progresses by leaps and bounds, new issues of privacy and discrimination can come up in the workplace. This page answers questions that many workers may have about how accessible their genetic information is to employers.
In our Harassment section our new page on the effects of domestic violence in the workplace helps victims of domestic violence to understand how their situation at home may affect their work and what rights they have when they are treated negatively because of it.
Finally, in our Unions and Collective Action section we’ve added information about the 24 states that currently have right-to-work laws, and what that means for workers. This page provides an explanation of what right-to-work laws are, and what they mean for workers in states that have instituted them.
Tuesday, November 4th, 2014
By Dean Baker and Jared Bernstein
Federal Reserve Chairman Janet Yellen gave a speech a few weeks ago that was doubly unusual.
First, she provided a welcome and trenchant analysis of inequality, focusing on the stagnant income and wealth of middle- and low-income families relative to the top few percent. For the nation’s chief economist to elevate this issue is an important contribution in its own right.
Second, she declined to mention the critical role of slack labor markets in these outcomes. In what is a rare case for her, the word “unemployment” was not even mentioned in the speech. The omission was especially noticeable as Yellen, to her credit, has so consistently pointed out the extent of remaining slack in the U.S. job market.
Unemployment is down and gross domestic product is up, yet there isn’t much progress in real wages and incomes of most working families. While many reasons have been set forth to explain this unfortunate disconnect, including globalization and technological change as well as unmet skill demands and the Federal Reserve’s asset-buying program, our research suggests that the main factor behind both stagnant real wages and rising inequality is the absence of full employment. Truly tight labor markets — an unemployment rate closer to 4 percent than 6 percent — would not only boost real wages, but would give a larger lift to the lowest-paid workers and those with the least bargaining clout, pushing back on stagnation and inequality.
It’s true, as noted, that the unemployment rate has fallen quite sharply, from 10 percent in late 2009 to just below 6 percent now. This decline is partly due to job creation, but it’s also a function of people giving up looking for work and therefore not being counted as unemployed.
That’s important because it means there’s more slack in the labor market than we would usually associate with a 5.9 percent unemployment rate. And when there is lots of slack, most American workers lack the bargaining power they need to press for wage gains. With wages growing close to the rate of inflation — about 2 percent — since 2009, most workers have been stuck with stagnant real earnings.
By contrast, corporate profits have risen sharply in the recovery, with the profit share of national income hitting the highest level in many decades and the stock market also has hit new highs. Meanwhile, real median household income is still down 3 percent since the current expansion began in the second half of 2009.
To use a seasonal analogy, growth has been doing an end run around most households.
The impact of a falling unemployment rate on real wages at different points in the wage scale demonstrates why this relationship is so germane right now. Looking at a large data set with observations across all 50 states for more than 30 years, we find that a sustained 10 percent drop in the unemployment rate, say from 6 percent to 5.4 percent (10 percent, not 10 percentage points) does not have a uniform effect on real wages.
Instead, it leads to real wage gains of 10 percent for low-wage workers, 4 percent for middle-wage workers and does nothing for high-wage workers. That’s why full employment is such an important antidote to earnings inequality. By forcing employers to bid compensation up to get and keep the workers they need, it re-channels growth away from the top and back toward the bottom and middle of the pay scale.
But don’t both wage stagnation and inequality predate the recession? Does the fact that these are ongoing phenomena diminish the explanatory power of labor market slack?
Not at all, because a broad look over our history shows that the income stagnation period generally matches the slack period (we’re switching to income here because our wage data don’t go back far enough). From the late 1940s to the late 1970s, the job market was at full employment 70 percent of the time and incomes doubled for low, middle, and high-income families. Working families at all points in the income distribution shared in the gains of growth.
Since then, we’ve been at full employment only 30 percent of the time, and all that slack has been accompanied by periods of wage stagnation and rising inequality.
Of course, the absence of full employment is not the only difference between these periods of growing together and growing apart. For example, we engaged in much less and much more balanced global trade in the earlier period, a point we will return to in a moment.
So, let’s not make this any more complicated than it needs to be. We must plot a policy course back to full employment ASAP. Given Washington’s partisan fever, here are three ideas that might plausibly be enacted, even in these divided times.
1.) A deep dive into infrastructure investment is warranted to replenish our deteriorating stock of public goods and to absorb slack among the underemployed in production and building occupations. Historically, such investments have garnered bipartisan support.
2.) The trade deficit, a serious drag on employment growth in our factory sector, should be reduced by pushing back on competitors who deliberately keep down the value of their currencies to get a price advantage in global markets. Again, joining this fight is favored by both parties, although the White House tends to get squeamish on the issue.
3.) With fiscal stimulus sidelined by gridlock, the Fed is the only game in town. Yellen’s slack attack has been strong and consistent, but the central bank is facing pressures to tighten sooner rather than later. Given the striking absence of inflationary pressures and wide room for non-inflationary wage growth, Yellen and Co. should continue to tack toward full employment.
Economists tend to come up with all kinds of complexities when sometimes a shave with Occam’s razor is all that’s needed. The bargaining power of most American workers is at a historical low point. The best way to restore it is to get the economy back to full employment.
This blog originally appeared on CEPRE.net and on OurFuture.org. on November 3, 2014. Reprinted with permission. http://ourfuture.org/20141103/full-employment-the-recoverys-missing-ingredient
About the Author: Dean Baker is an American economist whose books have been published by the University of Chicago Press, MIT Press, and Cambridge University Press.
Tuesday, October 7th, 2014
This 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:
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.”
“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).