Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘unemployment’

Economy Gains 312,000 Jobs in December; Unemployment Rises to 3.9%

Friday, January 4th, 2019

The U.S. economy gained 312,000 jobs in December, and the unemployment rate rose to 3.9%, according to figures released this morning by the U.S. Bureau of Labor Statistics. This report shows an increase in unemployed workers and while wage gains are stronger, they are not consistent with a tight labor market. This ongoing financial and economic volatility means that the Federal Reserve needs to hold off on more rate increases.

Last month’s biggest job gains were in health care (50,000), professional and business services (43,000), food services and drinking places (41,000), construction (38,000), manufacturing (32,000) and retail trade (24,000). Employment in other major industries—including mining, wholesale trade, transportation and warehousing, information, financial activities and government—showed little change over the month.

Among the major worker groups, the unemployment rates rose for blacks (6.6%), adult men (3.6%) and Asians (3.3%). The jobless rate for teenagers (12.5%), Hispanics (4.4%), adult women (3.5%) and whites (3.4%) and showed little or no change in December.

The number of long-term unemployed (those jobless for 27 weeks or more) declined slightly in December and accounted for 20.5% of the unemployed.

This blog was originally published by the AFL-CIO on January 4, 2019. Reprinted with permission. 

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.

Economy Gains 155,000 Jobs in November; Unemployment Unchanged at 3.7%

Friday, December 7th, 2018

The U.S. economy gained 155,000 jobs in November, and unemployment was unchanged at 3.7%, according to figures released this morning by the U.S. Bureau of Labor Statistics. The labor market can be a leading indicator for the economy. Soft wage growth has been accompanied by weaker auto sales than typical for this low level of unemployment, leading General Motors to plan plant closings, and slowing home sales point to stresses for workers and the household sector of the economy. The Federal Reserve needs to move with great caution and hold off on more rate increases.

Last month’s biggest job gains were in health care (32,000), professional and business services (32,000), manufacturing (27,000), transportation and warehousing (25,000) and retail trade (18,000). Employment in other major industries—including mining, construction, wholesale trade, information, financial activities, leisure and hospitality, and government—showed little change over the month.  

Among the major worker groups, the unemployment rates for teenagers (12%), blacks (5.9%), Hispanics (4.5%), adult women (3.4%), whites (3.4%), adult men (3.3%) and Asians (2.7%) showed little or no change in November.

The number of long-term unemployed (those jobless for 27 weeks or more) declined slightly in November and accounted for 20.8% of the unemployed.

This blog was originally published by the AFL-CIO on December 7, 2018. Reprinted with permission. 

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.

Black workers are still not sharing in the bounty of nation-wide employment gains

Wednesday, November 21st, 2018

Embedded in the nation’s increasingly favorable unemployment statistics — the country is currently in the midst of a record decline in the number of out-of-work Americans — is the persistent fact that black workers aren’t sharing equitably in this rampant job growth.

In September, the most recent period when figures are available, approximately 134,000 jobs were created and the national unemployment rate dropped to 3.7 percent, according the Bureau of Labor Statistics. That’s fantastic news for the nation at large.

But if you drill down into the bureau’s figures, you’ll find that black workers are not celebrating on par with their white colleagues. At 6 percent, the black unemployment rate is nearly twice that of white workers, at 3.3 percent. By way of comparison, Latino workers posted a 4.5 percent unemployment rate, and the Asian rate was nearly equal to whites’ at 3.5 percent.

(October’s unemployment figures are scheduled to be released on Friday. Analysts expect a continuation of these trends with little-to-no narrowing of the gap between white and black employment.)

In a recently released state-by-state review of unemployment rates by race and ethnicity for the third quarter of 2018, Janelle Jones, an analyst at the nonpartisan Economic Policy Institute, found that 12 states have a black unemployment rate that is at least twice as large as the white unemployment rate. What’s more, in each of the 21 states and the District of Columbia, for which figures were available, the black unemployment rate was higher in each of them than it was for white Americans.

Jones’ findings further underscore the fact that even as the nation climbs back from its pre-recession unemployment level, the bounty isn’t filling the pocketbooks of black Americans. For instance, she found the nation’s highest black unemployment rate was in the District of Columbia at 12.4 percent, producing a 6.2-to-1 disparity with white workers in the Nation’s Capitol. Worse, the District has the dubious distinction of having the highest black unemployment rate during the previous eight quarters — this despite the fact that Washington, DC and its surroundings are the third-richest metropolitan area in the country and home to the most affluent population on the East Coast.

Other high unemployment states for black workers included Illinois (9.3 percent), Louisiana (8.5 percent), Alabama (7.1 percent, and New York (7 percent). The lowest unemployment rate for black Americans were Massachusetts and Virginia, both with (3.8 percent).

Among Latino workers, the highest state unemployment rate is in Nebraska (5.9 percent), followed by Connecticut (5.7 percent), Arizona (5.6 percent), Pennsylvania (5.6 percent), and Washington (5.6 percent).

In two states — Colorado and Georgia — the Hispanic unemployment rate was lower than the white unemployment rate. In Colorado, Latino workers’ 2.3 percent unemployment rate was lower than the 2.9 percent rate for white workers, and in Georgia, Latino unemployment rate was 2.8 percent, compared to 3 percent for white workers.

“As the economy continues to recover, all racial and ethnic groups are making employment gains,” Jones said in a statement released with her report earlier this week. “But policymakers should make sure that the recovery reaches everyone before taking their foot off the gas.”

Bloomberg columnist Justin Fox agreed, writing recently that “[b]lack Americans really have been making employment gains in recent years – and they’ll probably keep making them as long as this expansion continues. Which is one more reason to root for it to keep going.”

As Fox described it the falling unemployment rate is, on the whole, a positive development for all Americans, especially black workers in their “prime working” ages between 25 and 54. At present, he said the gap between black and white workers in that realm is at an “all-time low” (noting that such figures can only be compared since 1994 when the federal government began reporting “prime working age” economic figures).

But Andre Perry, a Brookings Institution Metropolitan Policy Program Fellow, cautioned against celebrating too soon. In a recent U.S. News & World Report interview he argued it’s way too early to cheer the economy’s recovery so long as a racial gap exists in employment.

“We need to start talking about prosperity and not whether people have a job. We need to start looking more deeply at equality,” said Perry, who focuses his research on majority-black populated cities in the U.S. “Because when black folks are doing well, that really means America is doing well.”

In other words, Perry says the celebratory narrative on the economy is almost exclusively the story of impressive gains for white workers and tolerance for black workers who continually lag behind.

“Right now, when we’re looking at full employment, what we’re really saying is this is a state of white employment,” Perry said. “We’re willing to base our monetary policy upon that stage and not really cater to the black unemployment rate that is still wanting. You can be at full employment in one population and be in a recession in another. . . . We need to start recognizing these disparities, or we’re going to become more comfortable with them.”

This article was originally published at ThinkProgress on November 2, 2018. Reprinted with permission. 

About the Author: Sam Fulwood is a columnist for ThinkProgress who analyzes the influence of national politics and domestic policies on communities of color across the United States.

New Arizona law pushes unemployed people to work at poverty wages or else

Thursday, May 17th, 2018

Arizona Republicans have hit on a way to make life worse for unemployed people. Currently, to collect unemployment insurance, people have to be looking for work and to accept “suitable” work if it’s offered. Under a new law, scratch that “suitable” part. People will have to accept any job they’re offered as long as it pays more than 20 percent more than their unemployment check—which means any job paying $288 a week or more.

You could be an engineer or a graphic designer or a skilled carpenter, but if McDonald’s or Walmart says they’ll have you, you have to take it or lose your benefits. Forget about looking for a job in your field that will pay you a living wage. You also don’t get to consider what’s suitable in terms of the “risk involved to the individual’s health, safety and morals.”

[Republican Gov. Doug Ducey’s] press aide Daniel Scarpinato called it “common-sense reform.”

“It’s a job that the individual’s been offered, and it pays,” he noted, adding that Ducey supports the idea of people finding employment “who are getting off of benefits and finding value in work.”

Bear in mind that people don’t get unemployment insurance automatically: anyone collecting unemployment in Arizona was laid off or fired for reasons that weren’t their fault. No one just walked off the job to collect that sweet $240-a-week check. No one was fired for dealing drugs at work.

These are people who had jobs within the last few months and lost them without doing anything wrong. To keep getting UI, they are spending four days a week looking for work. They should be the poster children for the Republican obsession with the value of work. But instead, they’re being devalued and treated as shirkers whose professional skills do not matter—because in fact, Republicans just hate anyone who’s struggling. And they’d rather sentence people to low-wage jobs that don’t make use of their specific skills than pay for a few extra weeks or months of unemployment insurance to make sure that people’s skills are maximized in the economy.

This blog was originally published at DailyKos on May 17, 2018. Reprinted with permission.

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

Trump’s Bid to Pit Black and Brown Workers Against Each Other

Monday, August 7th, 2017

President Trump has resurrected an old canard in his effort to sell a new effort to restrict immigration into the United States. The legislation he backs, he said at a White House ceremony, was necessary in part to protect “minority workers competing for jobs against brand-new arrivals” under the current immigration system.

This theme is a hardy perennial in right-wing media and think-tank reports, often featuring members of a small but persistent cadre of conservative black people willing to be the face of the pernicious idea that in order to boost the fortunes of African Americans, we have to keep new immigrants out of the country.

This notion keeps getting debunked, but Trump trotted it out anyway as his administration launches key assaults against the core concerns of African-American people.

This comes the same week as news reports that the Justice Department is gearing up a new assault on affirmative action programs at colleges, based on the lie that these programs discriminate against white and Asian college applicants.

Career civil-rights lawyers in the Justice Department are so aghast at the idea that their agency’s efforts are being redirected from addressing the continuing effects of structural racism that Attorney General Jeff Sessions plans to use political appointees and outside lawyers to lead the effort.

Remember that this pronouncement also is in the shadow of a speech Trump gave before police officers in Long Island, New York, in which he encouraged police officers to rough up criminal suspects.

“[W]hen you see these thugs being thrown into the back of a paddy wagon — you just see them thrown in, rough — I said, please don’t be too nice,” Trump told the assembly of law enforcement officers.

Even people in his own administration denounced the speech as inappropriate, as did prominent police chiefs. Later, White House press secretary Sarah Huckabee Sanders dismissed Trump’s comment as a joke.

But in African-American communities around the country, where the drumbeat of stories of police officers using clearly unwarranted deadly force against African Americans continues to reverberate, no one was laughing.

Vice senior editor Wilbert Cooper convincingly took on the black-people-harmed-by-immigration myth in a 2016 essay. Not only is it false that immigration of lower-skilled people harms African-American employment prospects, he wrote that “counter to what Trump and others contend, there’s evidence that immigration can actually help low-skilled blacks get back to work.”

Denver University economist Jack Strauss analyzed a wide breadth of data from metropolitan areas across the US in 2013 to determine whether blacks in particular lose out when it comes to immigration. He found there to be a “one-way causation from increased immigration including Latinos to higher black wages and lower poverty.” In other words, immigration is good for black workers. According to Strauss’s summary of his findings, a “1 percent rise in Latino immigration contributes to a 1.4 percent increase in employment rates among African Americans,” and “for every 1 percent increase in a city’s share of Latinos, African median and mean wages increase by 3 percent.”

The reality is, as Cooper writes, cities like Cleveland and Detroit are working to attract immigrants, because of the impact immigrants have on the overall economic vitality of the communities they make their home.

Jobs Tell The Story

On Friday, the federal government will release an updated picture of the nation’s employment situation. The previous report, covering June, showed that the nation’s unemployment rate was 4.4 percent, and African-American unemployment was 7.1 percent, down significantly from 8.8 percent in June 2016.

The significant decrease in black unemployment is in itself a direct rebuke to the idea that drastic measures to restrict immigration are necessary to lower unemployment rates in African-American communities.

What that progress affirms that economic growth combined with economic justice and fairness is essential to closing the gaps between black, brown and white employment prospects.

What The Nation Needs

What the nation needs is not an assault on immigration, but an assault on the effects of structural racism and economic inequality. Instead of dismantling affirmative action, we need investments in schooling for African-American children that start at preschool – and before.

We need to reinvest in communities that have been left behind by the free-market idolatry of too many state governments and, now, the federal government itself. We need every worker to have a living wage and access to affordable housing.

Above all, we need to end the assaults on the fundamental dignity of African-American people – from the coded reference to “thugs” who need to be roughed up by police to the active exalting by White House officials of the nostrums of white nationalism.

Thanks but no thanks, President Trump. The overwhelming majority of African Americans don’t want your faux paternalism at the expense of our immigrant brothers and sisters.

This blog was originally published at OurFuture.org on August 3, 2017. Reprinted with permission.

About the Author: Isaiah J. Poole is communications director of People’s Action, and 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.

Public transportation is a jobs and equality issue

Monday, June 12th, 2017

Public transportation is a jobs issue. If you don’t believe that, take a look at Philadelphia, where lack of efficient mass transit from the city to the suburbs is keeping a lot of people out of work—and a coalition of progressive and religious groups is pushing the city to offer improved options:

The coalition says SEPTA’s system centers on an outdated reality: suburban dweller commuting to city job. In 1970, about half of the region’s jobs were based in Philadelphia, the coalition said in a letter to Council. By 2013, only one in four jobs were in Philadelphia, as urban employment declined and suburban jobs increased. Meanwhile, the city has a higher unemployment rate, 6 percent in March, compared to suburban rates of 3.5 percent to 4.4 percent.

Workers trying to get from the city to the suburbs for jobs face long commutes. Looooong. Just 24 percent of jobs in the area are accessible within 90 minutes on public transit. That’s a major obstacle:

Another survey, by Temple University’s Institute of Survey Research, found that lack of transportation was the biggest barrier to employment, with 39 percent of respondents below the poverty line saying that not being able to get to work was more of an obstacle than a criminal history, child care problems or language barriers.

That’s just one more way infrastructure investment—the kind Donald Trump isn’t interested in making—boosts employment.

This blog was originally published at DailyKos on June 10, 2017. Reprinted with permission.

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

98,000 Jobs Added to the Economy in March, Unemployment Is 4.5%

Tuesday, April 11th, 2017

The U.S. economy added 98,000 jobs in March and the unemployment rate declined to 4.5%, according to figures released this morning by the U.S. Bureau of Labor Statistics.

While the job growth was tepid in March, and the revisions for the numbers for January and February are weaker than earlier reported, the economy is continuing close to the trend of job growth that started under President Barack Obama. If we continue the trend of job growth over the past seven years he established, the economy will add another 25 million jobs in eight years. Oddly, the claim President Donald Trump has made is that he will create 25 million jobs.

Still, wage growth needs time to recover as does the share of workers employed so household incomes can recover to their 1999 peak. With modest job gains in March, the Federal Open Market Committee of the Federal Reserve that sets monetary policy needs to pause ahead of its proposed interest rate hike in June. The higher interest rates are meant to signal a return to normal, but we are not there, yet.

The biggest gains were in professional and business services (+56,000) and in mining (+11,000), while retail trade lost jobs (-30,000). Other sectors of note include health care (+14,000) and financial services (+9,000). According to BLS, construction employment saw little change in March (+6,000).

Employment in other major industries, including manufacturing, wholesale trade, transportation and warehousing, leisure and hospitality, and government, showed little or no change over the month.

Among the demographic groups of working people, the unemployment rates for adult women (4.0%), white people (3.9%) and Hispanic people (5.1%) declined in March. The jobless rates for adult men (4.3%), teenagers (13.7%), black people (8.0%) and Asian people (3.3%) showed little or no change.

This blog was originally posted on aflcio.org on April 7, 2017. Reprinted with permission.

The Economy Adds 227,000 Jobs in January, and Unemployment Little Changed at 4.8%

Monday, February 6th, 2017
The U.S. economy added 227,000 jobs in January in the last employment report of the the Barack Obama administration. Unemployment was little changed at 4.8%, according to figures released this morning by the U.S. Bureau of Labor Statistics. President Donald Trump is inheriting a relatively strong economy based on years of work that Barack Obama and his administration did to bring us out of the horrible recession brought on, in part, because of George W. Bush-era deregulation and weak enforcement. Obama inherited a failing economy, with 589,000 jobs lost in January 2009 and an unemployment rate in February 2009 of 7.6%. Trump, on the other hand, is inheriting a much stronger jobs market, with 227,000 jobs added in January 2017 and an unemployment rate of 4.8%. Trump’s challenge is to continue the pattern of job growth and rising wages. The administration needs to create policies benefiting working people so the recovery continues.
The Economy Adds 227,000 Jobs in January, and Unemployment Little Changed at 4.8%

In response to the January jobs numbers, AFL-CIO Chief Economist William Spriggs tweeted:

 

Last month’s biggest job gains were in retail trade (46,000), construction (36,000), financial activities (32,000), food services and drinking places (30,000), professional and technical services (23,000), health care (18,000), transportation and warehousing (15,000), professional and business (15,000), and financial activities (13,000). Employment in other major industries, including mining and logging, manufacturing, wholesale trade, transportation and warehousing, information, and government, showed little change over the month.

Among the major worker groups, the unemployment rate for Asians (3.7%) increased in January. The jobless rates for adult men (4.4%), adult women (4.4%), teenagers (15.0%), whites (4.3%), blacks (7.7%) and Hispanics (5.9%) showed little or no change over the month.

The number of long-term unemployed (those jobless for 27 weeks or more) was little changed in January and accounted for 24.4% of the unemployed.

This blog originally appeared in aflcio.org on February 3, 2017.  Reprinted with permission.

Kenneth Quinnell: I am a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, I 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.  My writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.  I am the proud father of three future progressive activists, an accomplished rapper and karaoke enthusiast.

More U.S. Workers Have Highly Volatile, Unstable Incomes

Tuesday, January 3rd, 2017

The U.S stock market may be at record highs and U.S. unemployment at its lowest level since the Great Recession, but income inequality remains stubbornly high.

Contributing to this inequality is the fact that while more Americans are working than at any time since August 2007, more people are working part time, erratic and unpredictable schedules—without full-time, steady employment. Since 2007, the number of Americans involuntarily working part time has increased by nearly 45 percent. More Americans than before are part of what’s considered the contingent workforce, working on-call or on-demand, and as independent contractors or self-employed freelancers, often with earnings that vary dramatically month to month.

These workers span the socioeconomic spectrum, from low-wage workers in service, retail, hospitality and restaurant jobs—and temps in industry, construction and manufacturing—to highly educated Americans working job-to-job because their professions lack fulltime employment opportunities given the structure of many information age businesses. As Andrew Stettner, Michael Cassidy and George Wentworth point out in their new report, A New Safety Net for an Era of Unstable Earnings, what all these workers have in common are highly volatile, unstable incomes and a lack of access to the traditional U.S. unemployment insurance safety net.

“The programs we have to help people are very biased toward traditional incomes,” says Stettner, senior fellow at The Century Foundation. “Volatility in earnings is a really big problem.”

“Those with the least to lose are most likely to lose it”

Published by The Century Foundation, a progressive, nonpartisan think tank, in collaboration with the National Employment Law Project (NELP), which advocates for policies that expand access to work and labor protections for low-wage workers, the report found that those in the contingent or nontraditional workforce “experience nearly twice as much earnings volatility as standard workers.”

It also found that because of this situation, between 2008 and 2013, three out of five prime earners experienced at least as much as a 50 percent drop in their month-to-month income. Half experienced month-to-month income drops of more than 100 percent.

“This broad issue of underemployment,” says NELP senior counsel George Wentworth, “there’s less of a light on it and these people are not showing up in national unemployment figures. But these workers are struggling and many of them are not making ends meet.”

Central to this problem is that most workers now employed part time are making less than what they made previously, working full time. At the same time, their part-time or independent contractor status means they are likely not eligible for a full complement—if any, in the case of self-employed freelancers—of standard employment benefits, including employer paid health insurance or any form of unemployment insurance, explains Wentworth.

As the report notes, “Those with the least to lose are most likely to lose it.”

Policy recommendations

Both Stettner and Wentworth explain that historical policy responses—and those set up to help workers laid off during the Great Recession—focus on traditional employment situations. Typical unemployment insurance is also biased against those who take up part-time or self-employment gigs while they’re looking for new full-time jobs by reducing unemployment payments. Some states have partial unemployment benefits designed for part-time workers, including those who’ve involuntarily had their hours reduced, but these vary widely. The report found that for workers whose hours are cut from full time to part time, “ten states would replace half of their lost earnings while fourteen states would provide no benefits at all.”

To address what’s becoming the new normal for U.S. workers, the report makes several recommendations. It proposes that states offer partial unemployment benefits to workers earning less than 150 percent of what they’d qualify for weekly if they were laid off (rather than working part time). This would substantially improve coverage for workers whose hours have been cut or who take part-time jobs after losing fulltime jobs.

“It also should be easier to file for these benefits,” says Stettner, explaining that current work documentation requirements don’t necessarily reflect the reality of how part timers work and get paid.

The report also recommends broadening unemployment insurance support for work-sharing programs. Work-share programs, explains Wentworth, are designed to help employers avoid layoffs by retaining their existing workforce but with reduced hours.

The report proposes beefing up existing financial support for work-share programs to reduce the impact to employees of reduced hours. “This is basically for high road employers,” says Wentworth.

The report also recommends a pilot program to provide unemployment insurance to freelancers who don’t have a traditional employer relationship. This is perhaps the most challenging of the report’s proposals since it seeks to address circumstances that extend well beyond the issue of reduced hours. Ideas include giving freelancers better access to certain tax credits in ways that help even out swings in earnings. It could also involve building on international examples such as professional guilds in Europe, where people contribute in order to draw benefits when needed, Stettner explains.

These proposals go beyond and build on those already being discussed at the state, local and federal level to require employers to provide more stable scheduling, pay a minimum number of hours if workers are called for a shift and that protect workers who request schedule changes. They would also begin to address the situations of the estimated 19.1 million Americans who depend solely on freelance income and are currently without any employment safety net.

“We’re just scratching the surface to understand how to come up with a better set of market-based and government solutions,” says Stettner. “We’ve created a whole view of the world that now applies to only about half the working people in America,” he says. “We have this huge divide we need to hammer on. It should concern everyone.”

This article originally appeared at Inthesetimes.com on December 28, 2016. Reprinted with permission.

Elizabeth Grossman is the author of Chasing Molecules: Poisonous Products, Human Health, and the Promise of Green Chemistry, High Tech Trash: Digital Devices, Hidden Toxics, and Human Health, and other books. Her work has appeared in a variety of publications including Scientific American, Yale e360, Environmental Health Perspectives, Mother Jones, Ensia, Time, Civil Eats, The Guardian, The Washington Post, Salon and The Nation.

The letter from Carrier to its employees that Donald Trump doesn’t want you to read

Monday, December 5th, 2016

aaron ruparOn Thursday, President-elect Donald Trump traveled to the Carrier factory in Indianapolis, Indiana to tout the deal he helped orchestrate to keep about 800 manufacturing jobs in the United States in exchange for state and federal incentives, including $7 million from Indiana.

“Companies are not going to leave the United States anymore without consequences. Not going to happen. It’s not going to happen, I’ll tell you right now,” Trump said during a speech at the factory.

What Trump didn’t mention, either then or during a subsequent “thank you” rally later Thursday in Cincinnati, is that the deal he and Vice President-elect Mike Pence helped broker won’t prevent Carrier from outsourcing more jobs than are being saved in Indiana. The company will keep about 800 jobs at the Indianapolis plant, but will still move 600 jobs from Indianapolis to Mexico. Another 700 jobs are being moved to Mexico from a separate factory in Huntington, Indiana, which will be closed.

In sum, about 800 American jobs are being saved, but another 1,300 are disappearing. Those painful details were acknowledged in a letter Carrier sent to affected workers on Thursday that was posted to Twitter by Indianapolis-based journalist Rafael Sánchez.

screen-shot-2016-12-06-at-11-57-12-pm

Trump’s deal with United Technology, the company that owns Carrier, is good news for the workers who will keep their jobs, of course. But doling out huge tax breaks and other incentives to entice companies to keep jobs in the United States is bad economics, as Trump himself acknowledged on the campaign trail when he denounced government officials for believing that providing economic incentives to corporations keeps jobs in the United States.

During a Thursday appearance on CNBC, conservative economic policy analyst Jimmy Pethokoukis went so far as to call Trump’s speech at the Carrier plant “absolutely the worst speech” about economics in more than 30 years.

“The idea that American corporations are going to have to make business decisions, not based on the fact that we’ve created an ideal environment for economic growth in the United States, but out of fear of punitive actions based on who knows what criteria exactly from a presidential administration,” Pethokoukis, a scholar with the conservative-leaning American Enterprise Institute, said. “I think that’s absolutely chilling.”

On Friday, the latest jobs numbers reinforced that Trump’s Carrier deal comes amid a long-term downturn in manufacturing jobs in the country. While a net 178,000 private and public positions were added in November and the unemployment rate fell to 4.6 percent, the lowest since August 2007, manufacturing jobs fell by 4,000. For the year, manufacturing jobs across the country have fallen by 78,000.

If the trend continues into 2017—manufacturing jobs in the country have been declining since before George W. Bush took office—Trump would need to strike roughly 100 Carrier-equivalent deals to stem the tide, at an untold cost to taxpayers.

This blog originally appeared in ThinkProgress.org on December 1, 2016. Reprinted with permission.

Aaron Rupar is a Journalist at ThinkProgress. Twitter: @atrupar. Email: arupar@americanprogress.org

Your Rights Job Survival The Issues Features Resources About This Blog