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APRIL JOBS REPORT: STRONG JOB GROWTH AS WORKERS DEMAND BETTER JOBS

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Home - National Employment Law Project

Nationwide—The unemployment rate remained at 3.6% in April according to this morning’s monthly jobs report.  Approximately 428,000 jobs were produced, and 5.9 million workers remained unemployed. The unemployment rate for Black workers declined slightly, from 6.2% to 5.9%, yet the Black unemployment rate remained substantially higher than the rate for white workers (3.2%). The unemployment rate for Latinx workers was 4.1% and the unemployment rate for Asian workers was 3.1%. These disparities are a result of structural racism embedded in the U.S. labor market. 

“We continue to see sustained job growth today as a result of the critical relief and recovery measures passed by Congress,” said Rebecca Dixon, executive director of the National Employment Law Project. “Yet faced with inflation, global conflict, and the continuing pandemic, we cannot take economic recovery for granted. Congress must act to fix the nation’s flawed and exclusionary unemployment insurance system before the next recession. While federal policymakers fail to act, states from Missouri to New Hampshire are moving to further cut and downgrade unemployment benefits, undermining the system’s ability to support workers and help the nation recover from the next downturn.”   

Strengthening unemployment insurance is critical to racial equity, as unemployment and labor force participation rates continue to be uneven.  One bright spot was the decline in unemployment for Black men and women: 309,000 more Black men and 68,000 more Black women were employed in April 2022 than in the first month of the year.  

Growing sectors of the economy included leisure and hospitality, which added 78,000 jobs in April, and transportation and warehousing, which added 52,000 jobs. Employment in retail increased by 29,000 jobs. Yet workers in these service industry jobs—which too often underpay employees, offer unstable schedules, and provide few benefits—are demanding not just employment, but better pay, benefits, and working conditions. From Starbucks, to Amazon, to the Apple Store and a host of smaller employers across the country, workers are standing together to call for recognition of the unions they have formed and improvements on the job. 

Forming unions is a vital way to promote racial equity in the economy. Strengthening unemployment insurance also helps to build power for workers of color by supporting jobless workers as they seek employment that matches their skills and qualifications, rather than forcing them to settle for an unsuitable job.  

Policymakers must implement permanent, structural reform of the unemployment insurance system before the next recession. Senator Ron Wyden’s Unemployment Insurance Improvement Act would begin to address some significant ways the unemployment insurance system disproportionately excludes Black and Latinx workers, women workers, and workers with disabilities. It does so by ensuring states provide at least 26 weeks of unemployment benefits, increasing coverage for part-time workers, and expanding eligibility by requiring states to consider workers’ most recent earnings and standardizing earning requirements. These reforms lay the groundwork for transforming our unemployment insurance system and enabling all workers to thrive. 

This blog originally appeared at NELP on May 6, 2022. Reprinted with permission.

About the Author: The National Employment Law Project is a non-partisan, not-for-profit organization that conducts research and advocates on issues affecting underpaid and unemployed workers.


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The Art of Writing a Resignation Letter – For Leaving on Good or Bad Terms

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Resignation Letters – Good Examples from Allison & Taylor, The Reference Checking Company

While crafting a resignation letter is simple enough when you’re leaving an employer on civil terms, what do you do if you’re parting on less than favorable circumstances? Writing a resignation note in anger or haste could become an action you will later regret. 

On the other hand, a beautifully written resignation letter will stand out, even if you left as a result of poor performance.  Hopefully a thoughtful resignation accepting responsibility will  afford you great references in the future. 

Here are some examples of how your resignation letter might be worded for best effect. Allison & Taylor can also assist in crafting an appropriate resignation letter.

Example #1: Resignation Due to Philosophical Differences

Please accept this as my official notice of my resignation. As you are aware, over the last twelve months we have had numerous differences of opinion regarding my philosophies for corporate policy, best practices and goals for the company.

Unfortunately, it is clear to me that you and I will be unable to resolve our differences. Therefore, I feel that my resignation is the best option for the team and all concerned.

My last day at Allison & Taylor will be xx. I would appreciate meeting with you in the next week or so to discuss the transition of my duties to a successor.

Example #2: Resignation Due to Bullying, Harassment, Age Discrimination, or Sexual Overtones

As you may or may not be aware, some members of your management team do not adhere to appropriate company policy. Accordingly, I regretfully tender my resignation having experienced unsuitable corporate behavior.

It has been my pleasure building Allison & Taylor to its current level and I regret the unfortunate circumstances that compel me to leave the company.

Please advise if you wish to meet with me and my attorney in the near future to discuss these events, which have been brought to the attention of HR over the past 12 months. My last day will be xx.

Examples #3: Resignation Due to Perceived Shortfall in Employee Performance or Compliance with Corporate Policy

It is with heavy heart that I respectfully submit my resignation from Allison & Taylor, effective immediately.

I do so with the realization that a growing number of my peers view my recent actions with the firm as unprofessional and a poor reflection on the corporate image. To whatever degree this is true, I offer my heartfelt apologies and feel I would serve the company best by removing myself from our corporate arena.

Be assured that it has been my honor and pleasure to work with you and our organization over the past years. The company has become a second home to me, and I have come to think of my associates as more family than co-workers. I am hopeful that in some small way I have contributed to the firm’s success and respected position in the marketplace. 

I will be forever grateful for the business acumen and relationships that I have gained, and wish all organization members the very best in their professional and personal lives.

If you like the sound of the resignation letters above, head here to view more.

This blog originally appeared at Allison & Taylor on DATE. Reprinted with permission.

About JobReferences.com & Allison & Taylor, Inc., the Reference Checking Company:

The principals of this firm have been in the business of checking references & credentials for corporations and individuals since 1980. Over 40 years of assisting job seekers and those companies hiring them. For those seeking a promotion or a new job opportunity: JobReferences.com will call your former employer obtain your references, document them and give the results to you.


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How Workers Can Leverage “The Great Resignation”

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We all know that the COVID-19 pandemic changed our lives in myriad ways. But now that we are truly beginning to adjust to the new post-pandemic normal, many workers are realizing that not every pandemic-related change was bad. 

In fact, many have realized that their work lives before the outbreak simply weren’t working for them. And they’ve also realized that, yes, it can be possible to reimagine and reinvent how you earn your living. Thus, the “Great Resignation” era was born, presenting powerful new opportunities to leverage this unique moment in history to help build the work life of their dreams. But what can workers do to make the most of the “Great Resignation”?

What is “The Great Resignation” and Why Does It Matter?

Economists, business owners, and workers alike have been noticing the drastic surge in employee turnover in the previous year and, for a time, many were apt to attribute the phenomenon to COVID. But now that the world is beginning to emerge from the shadow of the pandemic, Americans continue to leave their jobs at a record pace. 

Some leave to seek new and better opportunities elsewhere, no longer willing to sacrifice great benefits or a satisfying work-life balance for the sake of job security. Others want to take the leap into business ownership for themselves. Whatever the individual reason, the net result is the same: Employers are desperate to keep the workers they have and to recruit new talent to fill the ever-widening labor gap. That means that, as a worker, now more than ever, the ball is in your court.

Harness the Power of Competition

Competition can be great for business, spurring innovation and compelling companies to be the best they can be. But in today’s extremely tight labor market, competition can also be highly beneficial for workers. 

In fact, if you want to turn the Resignation economy to your advantage as an employee, then one of the best things you can do is to understand your present or prospective employer’s competition and how your talents must be put to use with them. This insight can serve as a powerful bargaining chip in an environment in which talent is formidably difficult to recruit and retain. 

So understand exactly what your skills set is and how it can benefit your prospective or current employer — or their rival! By ensuring that your employer knows what value you bring, and by demonstrating that you understand your value to them as well, you not only make it nearly impossible for them to exploit you and your labors, but you also increase the likelihood that you’ll succeed in negotiating the perks and benefits you want! 

Consider Joining the Bandwagon

Let’s face it: It’s a jobseeker’s market out there. And if you truly want to make the most of this moment in time, then you should be willing to walk away when a job doesn’t serve you. 

For instance, if you’ve been negotiating a pay raise and you recognize that an employer simply isn’t willing to compensate you fairly for the value you bring to the company, then now may be the best moment to cut ties and go elsewhere. 

But of course, such a step isn’t without risk, even during the Great Resignation, so it’s important to do your homework and get prepared before jumping on the quitting bandwagon. Whether or not you have another gig already lined up, you need to make sure that your financial house is in order before resigning or changing jobs. 

At the very least, you’ll want to adjust your budget and increase your savings for the near term. And if you have health benefits or other perks, go ahead and use them up before leaving. This will help ensure you’re well-positioned for the transition into the new job or that you have a cozy nest egg if you’re job hunting or starting your own business.

This blog is printed with permission.

About the Author: Dan Matthews is a writer, content consultant, and conservationist. While Dan writes on a variety of topics, he loves to focus on the topics that look inward on mankind that help to make the surrounding world a better place to reside. When Dan isn’t working on new content, you can find him with a coffee cup in one hand and searching for new music in the other.


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For 2nd straight month, Americans quit jobs at a record pace

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The figures point to a historic level of turmoil in the job market as newly-empowered workers quit jobs to take higher pay that is being dangled by businesses in need of help

Americans quit their jobs at a record pace for the second straight month in September, in many cases for more money elsewhere as companies bump up pay to fill job openings that are close to an all-time high.

The Labor Department said Friday that 4.4 million people quit their jobs in September, or about 3% of the nation’s workforce. That’s up from 4.3 million in August and far above the pre-pandemic level of 3.6 million. There were 10.4 million job openings, down from 10.6 million in August, which was revised higher.

The figures point to a historic level of turmoil in the job market as newly-empowered workers quit jobs to take higher pay that is being dangled by businesses in need of help. Incomes are rising, Americans are spending more and the economy is growing, and employers have ramped up hiring to keep pace. Rising inflation, however, is offsetting much of the pay gains for workers.

Friday’s report follows last week’s jobs report, which showed that employers stepped up their hiring in October, adding 531,000 jobs, while the unemployment rate fell to 4.6%, from 4.8%. Hiring rebounded as the Delta wave, which had restrained job gains in August and September, faded.

It is typically perceived as a signal of worker confidence when people leave the jobs they hold. The vast majority of people quit for a new position.

The number of available jobs has topped 10 million for four consecutive months. The record before the pandemic was 7.5 million. There were more job openings in September than the 7.7 million unemployed, illustrating the difficulties so many companies have had finding workers.

In addition to the number of unemployed, there are about 5 million fewer people looking for jobs compared with pre-pandemic trends, making it much harder for employers to hire. Economists cite many reasons for that decline: Some are mothers unable to find or afford child care, while others are avoiding taking jobs out of fear of contracting COVID-19. Stimulus checks this year and in 2020, as well as extra unemployment aid that has since expired, has given some families more savings and enabled them to hold off from looking for work.

Goldman Sachs, in a research note Thursday, estimates that most of the 5 million are older Americans who have decided to retire. Only about 1.7 million are aged 25 through 54, which economists consider prime working years.

Goldman estimates that most of those people in their prime working years will return to work in the coming months, but that would still leave a much smaller workforce than before the pandemic. That could leave employers facing labor shortages for months or even years.

Businesses in other countries are facing similar challenges, leading to pay gains and higher inflation in countries like Canada and the United Kingdom.

Competition for U.S. workers is intense for retailers and delivery companies, particularly as they staff up for what is expected to be a healthy winter holiday shopping season.

Online giant Amazon is hiring 125,000 permanent drivers and warehouse workers and offer pay between $18 and $22 an hour. It’s also paying sign-on bonuses of up to $3,000.

Seasonal hiring is also ramping up. Package delivery company UPS is seeking to add 100,000 workers to help with the crush of holiday orders, and plans to make job offers to some applicants within 30 minutes.

About the Author: The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business.

This blog originally appeared at Politico on November 12, 2021. Reprinted with permission.


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The big takeaways from Biden’s jobs report bust

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Women, teachers and health care employees all suffered from the slow rebound last month.

The labor market recovery that President Joe Biden has promised slowed again in September, with a weaker-than-expected 194,000 new jobs created.

That suggests school reopenings and the end of generous federal jobless benefits haven’t brought enough Americans back into the labor force amid the resurgence of the coronavirus.

Yet the recovery has been uneven throughout the economy, with women, teachers and health care employees suffering from the slow rebound last month, according to a Labor Department report released Friday. Among the gainers in September were white and Asian workers, retail and hospitality employees, the long-term unemployed and wage earners generally.

While the overall unemployment rate fell to 4.8 percent from 5.2 percent, the drop was likely fueled by 183,000 people leaving the labor force.

Biden touted the report as another sign that his administration has delivered steady month-over-month job growth and blamed the disappointing overall number partly on the fact the survey was taken before a recent decline in Covid cases.

“Remember, today’s report is based on a survey that was taken during the week of September the 13th, not today — September 13, when COVID cases were averaging more than 150,000 per day,” the president said in remarks after the report. “Since then, we’ve seen the daily cases fall by more than one-third and they’re continuing to trend down. We’re continuing to make progress.”

Here’s a closer look at how key groups fared in September:

Women

The report showed that 309,000 women 20 years and older dropped out of the labor market in September, marking the second straight month of losses. Men in the same age group regained 182,000 jobs.

Working women have been acutely affected by the school and child care closures prompted by the pandemic, holding many back from returning to the workforce. But they were initially expected to go back to work in September, with school reopenings relieving some of the responsibilities that had been keeping them at home. But since the Delta variant of the coronavirus took hold in late summer and disrupted school plans, economists have been bracing for a devastating September for women who may have had to continue taking care of their kids amid the uncertainty. The numbers show that concern was well-founded.

Race

While other major ethnic groups have seen their unemployment rates near or below the national level throughout most of 2021, the rate among Black workers had remained near 9 percent. In September, Black unemployment fell by almost a full percentage point to 7.9 percent, narrowing the gap on the national rate of 4.8 percent. The bad news: 83,000 Black workers also left the labor force last month, probably contributing to the drop in the jobless rate.

Black workers — and women in particular — make up large shares of the workforce in health services and child care, industries that have been slower than most to recover. AFL-CIO Chief Economist Bill Spriggs has also argued that the stubbornly high unemployment rate among Black workers could be due to discrimination in hiring.

Hispanic workers have also been experiencing jobless rates above the national level, seeing 6.3 percent unemployment in September, little changed from August. White and Asian workers have been recovering more quickly, with the unemployment rate falling to 4.2 percent in September for both groups.

Retail and leisure

Consumer-facing industries including retail, leisure and hospitality were walloped in early 2020 by pandemic safety restrictions and business closures, facing the largest post-pandemic jobs deficit of any sector of the economy. They remain the first to take the hit when fears of the virus increase. But both sectors saw some improvement in September, which is a good sign for the economy as coronavirus cases start to recede. Leisure and hospitality added 74,000 jobs, while retail added 56,000.

Labor force participation

Beyond the topline number, the jobs reports suggests that fewer people were optimistic enough about the market to look for work last month.

While the national unemployment rate has been falling for months, the labor force participation rate — which captures how many people are either employed or actively looking for work — has remained pretty stagnant. That rate was 61.6 percent in September, not much different from the 61.7 percent in August. It’s also still down 1.7 percentage points from February 2020, just before the pandemic hit. That matters because the size of the workforce is tied to productivity, which is the basis for wage gains.

Many Republicans had predicted that the Sept. 6 expiration of federal unemployment benefits would increase employment as Americans could no longer afford to stay away from work. But since the jobless aid has ended for millions, many people have fallen out of the labor force instead and are no longer considered “unemployed.” While this can push the unemployment rate down — if you’re not actually looking for a job, you’re not counted as unemployed — it’s also a sign that there are fewer people actively available for work.

Wages

Average hourly earnings increased in September by 19 cents, bringing them to $30.85. That follows five months of significant hikes in wages and suggests that the widespread demand for workers as businesses have reopened has put upward pressure on pay, as employers compete for labor.

Long term unemployed

The longer people remain unemployed, the longer it typically takes them to find a job, which is why economists like to keep an eye on the number of those who have been out of a job for at least six months. That figure fell by nearly 500,000 last month, which is a good indicator of labor market health, as people with large gaps on their resumés can face more obstacles to reemployment and can find themselves in deeper financial trouble. However, there were still 1.6 million more long-term unemployed in the workforce last month than before the pandemic began.

Education

One of the puzzles in the jobs report was the loss of jobs in state and local public education in September — the month when schools were supposed to reopen. Instead, the market saw a notable decrease in jobs in this area — a drop of 161,000 workers, which dragged down the headline numbers.

Much of this, however, is likely due to seasonal adjustment. That’s because schools usually ramp up hiring in September for the start of the academic year, so the models that adjust for seasonal factors expect it. But this year, some of those hires may have taken place in July and August as students started earlier, making September hiring in public education slower than normal. But while the decline of 161,000 looks bad, it’s probably due in part to hires that did not happen last month rather than actual job losses, a key distinction.

About the author: Rebecca Rainey is an employment and immigration reporter with POLITICO Pro and the author of the Morning Shift newsletter. Prior to joining POLITICO in August 2018, Rainey covered the Occupational Safety and Health administration and regulatory reform on Capitol Hill. 

About the author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign.

This blog originally appeared at Politico on October 8, 2021. Reprinted with permission.


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We Have a Jobs Crisis and an Environmental Crisis. The Answer to Both Is a Civilian Climate Corps.

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free enterprise | Today's Workplace

From Bernie Sanders and AOC to the Sunrise Movement, progressives are working to establish an updated version of a New Deal program to meet the challenges of economic and climate upheaval. Its time has come.

The Senate’s bipartisan infrastructure deal embraced by President Joe Biden appears to be a dud. Instead of taxing the rich to modernize America’s roads, water systems and other infrastructure, it promotes various forms of privatization. A summary released in late June about how new construction will be financed includes so-called ?“public-private partnerships,” which are essentially high-interest loans to state and local governments that deliver massive returns for Wall Street banks, private equity investors and multinational financial firms. Also listed is a fringe policy idea called ?“asset recycling,” which would incentivize states and cities to outright sell off public assets. Back in 2009, Chicago leased out its parking meters to investors as far away as Abu Dhabi for at least $1 billion under value, which has forced residents to pick up the tab ever since. Asset recycling is that type of scheme on steroids. 

If Biden is committed to tackling both climate change and inequality?—?which he says he is—then encouraging privatization is counterproductive. Privatizing infrastructure makes adapting to a warming climate harder—because it gives decision making power to corporations and investors. It raises fees and rates for residents—because those corporations and investors need to make a profit. And it creates a race to the bottom on worker wages—because contracted out workers are less likely to be members of a union.

But all is not lost. Biden has a chance to deliver for working people and a healthy climate if he listens to progressives when it comes to a promising proposal that could potentially create millions of good-paying, green public jobs: The Civilian Climate Corps (CCC).

The CCC would be a government jobs program that puts people to work directly combatting the climate crisis. First envisioned by the youth-led Sunrise Movement, the program would aim to ?“conserve and restore public lands and waters, bolster community resilience, increase reforestation, increase carbon sequestration in the agricultural sector, protect biodiversity, improve access to recreation, and address the changing climate.”

Its impact could be considerable, especially if the final product echoes a proposal released in April by Rep. Alexandria Ocasio-Cortez (D?N.Y.) and Sen. Ed Markey (D?Mass.). Their proposed CCC would create 1.5 million jobs that would pay at least $15 per hour, provide full healthcare coverage, and offer support beyond the workplace, like housing and educational grants.

The good news is that, even though Biden’s bipartisan deal doesn’t include money for the CCC, the president actually already established the program in a January executive order, and his original American Jobs Plan called for $10 billion in funding for it. The bad news is that the proposed funding was only a fraction of what’s needed. Biden’s proposal would only create up to 20,000 jobs a year—nowhere near the overall need.

That’s why progressives like Sen. Bernie Sanders (I?Vt.) and Ocasio-Cortez, alongside groups like Sunrise and the National Wildlife Federation, are pushing for a much bigger and broader infrastructure investment than the bipartisan deal, to include substantial funding for the CCC.

One avenue will be to pressure Biden to keep his word when it comes to public jobs. In late June, the president signed an executive order directing the the federal government to encourage diversity and inclusion among its workforce. If a CCC becomes a reality, it must avoid the mistakes made by its predecessor, President Franklin D. Roosevelt’s Civilian Conservation Corps, which was established in 1933.

The first corps accomplished plenty. Over nine years, it employed some 3 million young men to fight forest fires, build more than 100,000 miles of roads and trails, construct 318,000 dams, connect telephone lines across mountain passes, plant 3 billion trees, and much more. But it suffered the same affliction as many New Deal-era programs by mostly shutting out Black Americans. 

While the bill authorizing the program stipulated that ?“no discrimination shall be made on account of race, color, or creed,” Black workers were separated into different camps and often given more difficult, less prestigious work. They also experienced resistance when climbing the ranks within the Civilian Conservation Corps’ administrative hierarchy. Women weren’t allowed to join at all, instead offered opportunities with Eleanor Roosevelt’s ?“She-She-She” camps, which were widely scorned and only benefited some 8,500 people.

That’s why a new CCC must aim to target communities most harmed by the intersecting Covid-19, climate and unemployment crises. As In These Times’ editors wrote back in April, ?“The new Civilian Climate Corps must center Black, Brown, Asian, and Indigenous communities, which have been disproportionately affected by environmental injustice (and Covid-19).”

Public employment has long offered stable jobs to people of color, particularly after the Civil Rights Act of 1964. Black Americans gained 28 percent of new federal government jobs in the 1960s, while only making up 10 percent of the U.S. population. By the 1980s and 1990s, Black public employees were twice as likely as their private sector counterparts to receive promotions into white collar managerial positions and technical jobs. For both men and women, the median wage earned by Black employees is significantly higher in the public sector than in other industries.

For now, with the Senate still debating the paltry bipartisan infrastructure deal, it appears that funding for the CCC will have to find its way into a future budget reconciliation package, which wouldn’t require Republican votes to pass. ?“I want to enlist a new generation of climate conservation and resilience workers like FDR did with the American work plan for preserving our landscape with the Civilian Conservation Corps,” Biden said in a July 7 speech in Illinois. He made clear that the CCC, as well as other policies like two free years of community college, aren’t going to be in the bipartisan deal. ?“In Washington, they call it a reconciliation bill,” he said of the plan for enacting other major parts of his agenda.

Sanders is currently crafting language for such a bill, and plans to include increased funding for the CCC (reportedly $50 billion on top of Biden’s original proposal). Making such an investment a reality will likely require climate organizers and advocates to keep the pressure on lawmakers in Washington so they don’t renege on their promises on the environment. 

People need jobs. We need to modernize our infrastructure to combat climate change. The federal government is the only institution with enough coordination and resources to kill those two birds with one stone. A well-funded CCC is the clear path forward. 

This blog originally appeared at In These Times on July 13, 2021. Reprinted with permission.

About the author: Jeremy Mohler is a Washington D.C.-based political writer with In the Public Interest and a meditation teacher.


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Nevada hospitality workers get ‘right to return,’ this week in the war on workers

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Wage theft is a huge problem that requires a creative solution, this week  in the war on workers | Today's Workplace

Nevada’s “right to return” law has gone into effect, requiring employers to rehire many hospitality workers laid off during the pandemic to their original jobs, or equivalents, as those jobs become available again. Workers will get 24 hours to decide whether to accept a job, and must be available to start within five days.

The non-union Station Casinos, however, are dodging the law for some positions, claiming that the law is just so complicated that they cannot figure out how to recall people to jobs in the right order, so as a result, Station won’t be filling some jobs at all. (The company has recalled 1,500 workers.) In case you were wondering about the motivation here, the company issued a statement about its decision attacking the Culinary Union.

Meanwhile, the workers who’ve long had good jobs in the Las Vegas hospitality industry just want their jobs back.

“I only want to work,” said one worker affected by Station’s decision. “I want all I lost in this time. I want to get it back.”

This blog originally appeared at DailyKos on July 10, 2021. Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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June jobs report shows an unexpectedly strong 850,000 new jobs

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Wage theft is a huge problem that requires a creative solution, this week  in the war on workers | Today's Workplace

The U.S. economy is up 850,000 jobs, according to the June jobs report, and the past two months’ jobs reports were adjusted upward by 15,000. June’s jobs report is the strongest result in 10 months.

The unemployment rate rose slightly, to 5.9%, while the number of people who have been jobless for six months or more rose to 4 million, and “Black unemployment remains in deeply recessionary territory at 9.2%,” the Economic Policy Institute’s Elise Gould tweeted. “What boosted net job growth was an increase in people staying employed,” economist Aaron Sojourner tweeted. “Flows into employment from unemployment and from out of labor force both ticked down. The # of unemployed dropping out of labor force fell 363K=16%. Instead, they continued searching.”

A positive bottom line: “at this pace of job growth, the labor market would be back to pre-COVID health by the end of 2022—a recovery roughly *five times* as fast as the recovery following the Great Recession, thanks in no small part to the [American Rescue Plan],” EPI’s Heidi Shierholz wrote.

Notably, the leisure and hospitality industry gained 343,000 jobs, and that wasn’t just a one-month blip. “Over the last three months, leisure & hospitality has added 977,000 jobs—well over half of the 1.7 million total jobs added over that period,” Shierholz pointed out. Wages have risen in that industry; it’s almost like paying workers better helps draw in more workers. Pay remains abysmally low in leisure and hospitality, though.

There are still 6.8 million fewer jobs than in February 2020. With the jobs the economy would have added since then if the trends in place in early 2020 had continued, there is still a shortfall of more than 7.7 million jobs.

This jobs report cannot be seen as an endorsement of unemployment benefits cut-offs by Republican governors—it’s the June jobs report, but covers mid-May to mid-June, with those cut-offs starting in mid-June. A survey by the jobs search engine Indeed found factors other than unemployment benefits keeping unemployed people without college degrees from looking for work more aggressively.

The economy is rebounding, but the COVID-19 pandemic is not over yet, and the disruptions and trauma it has dealt to workers in all industries will be with us for a long time to come.

This blog originally appeared at DailyKos on July 2, 2021. Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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U.S. added 559,000 jobs in May and unemployment dropped to 5.8%

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Interview with Laura Clawson, Daily Kos Contributing Editor | Smart  Bitches, Trashy Books

After a disappointing April jobs report, May looked significantly better with 559,000 new jobs added to the economy, according to the Bureau of Labor Statistics. That’s still a little short of the 650,000 jobs analysts predicted, but unemployment ticked down from 6.1% to 5.8%, the lowest since the coronavirus pandemic began in March 2020. “America is on the move again,” President Joe Biden declared in response to the report. “No other major economy is gaining jobs as quickly as ours, and none of this success is an accident,” he said, crediting the American Rescue Plan with boosting the recovery.

The Economic Policy Institute’s Elise Gould described the overall report as “a promising sign that the recovery is on track.” Gould continued, ”If this pace continues over the next year, we will likely get down to 4% unemployment by mid-2022 and will be fully recovered before the end of 2022, fully absorbing losses plus population growth.” 

Another piece of good news is that women gained jobs after losing massive numbers of jobs throughout the pandemic, accounting for 56.2% of the new jobs in May. It’s just a start—women would need to gain jobs at that rate for 13 months straight to get back to where things stood in the before times, according to the National Women’s Law Center—but a start is better than another month of continuing to fall behind. Women’s labor force participation rose from 57.2% in April to 57.4% in May, still behind the February 2020 rate of 59.2%.

Nonetheless, there are still 7.6 million fewer jobs than in February 2020, with a total jobs gap of at least 8.6 million (to account for jobs growth that would normally have happened since then).

Once again, in contrast to the claims that restaurants are having trouble finding workers because of high unemployment benefits, the hospitality industry had big growth, adding 292,000 jobs. And while wages rose in hospitality, a possible sign of a labor shortage, EPI’s Heidi Shierholz notes that “the wages of typical workers in leisure and hospitality plummeted in the recession and have largely just regained their pre-COVID trend—i.e. they are now in the ballpark of where they’d be if COVID had never happened.” Josh Bivens had previously argued that rising wages in restaurants are consistent with the return of tipping customers, and may therefore not even represent higher wages being paid by employers.

There’s a long way to go, and too many people are still without jobs—remember that 7.6 million jobs are missing just from what existed in February 2020—as Republican governors make the political, not economic, decision to cut off the $300 weekly federal unemployment benefits supplement because supposedly that $300 is what’s keeping people from looking for work (even though it’s not). That’s increasing the suffering across the country even as people show, month by month, that they are looking to get back to work.

This blog originally appeared at DailyKos on June 4, 2021 Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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Jobless Americans face debt crunch without more federal aid as bills come due

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A new phase of the economic crisis is looming for the winner of Tuesday’s presidential election: potentially massive defaults by jobless Americans on consumer loans as the chances for more federal relief this year diminish.

Both President Donald Trump and Democrat Joe Biden have called for robust new rescue packages for an economy still suffering from the pandemic, but Congress’s inability to agree on key issues such as the size of unemployment benefits has kept the talks at an impasse for months. Now, millions of Americans are running out of money and will face hard choices between food purchases and payments on rent, credit cards and student loans.

Generous unemployment benefits and stimulus checks given out earlier this year helped many people weather the early months of the crisis — with some even managing to increase their savings. But that support has faded and some of it will run dry by the end of the year. JPMorgan Chase Institute found that in August alone, typical unemployed families spent two-thirds of the additional rainy day funds that they’d built up over the previous four months.

“I fear jobless workers are going to have to make tough choices,” said Fiona Greig, director of consumer research at the institute.

The “Lost Wages Assistance” aid program that Trump ordered after the expiration of more generous federal benefits — including a $600-a-week boost in jobless payments that ended on July 31 — helped bolster some families in September. But by early this month, much of that small pot of money had already been depleted. As a result, the largest U.S. banks warned investors this month that they expect credit card delinquencies to start mounting early next year.

And with coronavirus cases spiking in places like the Midwest, pressure could increase on already struggling small businesses, pushing jobless numbers back up.In a Census Bureau survey this month, roughly a third of small businesses reported only having enough cash to get them through a month or less.

The Labor Department said Thursday that more than 22 million people were claiming benefits in all federal programs as of the week ending Oct. 10.

Other government data released at the same time showed that the economy in the third quarter regained roughly 60 percent of the economic activity it lost, as many businesses have reopened. But Greig said without additional government support, the results could still be severe for many families, particularly if there is not more improvement in the job market.

“The GDP growth recovery looks much better than the job market numbers” because people are buying goods, but there’s still a severe drought in using many services, which is where most people are employed, said Greig, whose think tank has access to proprietary data from Chase Bank.

The burdens of the pandemic are falling disproportionately on lower-income workers; people making less than $27,000 have seen a nearly 20 percent drop in employment since January, while the job market is almost fully recovered among workers making more than $60,000, according to private-sector data compiled by Opportunity Insights.

Some relief measures are still in place; there’s a nationwide ban on evictions until the end of the year, and many borrowers have had the chance to put off credit card, student loan and mortgage payments. Roughly 7 percent of households with mortgages and 41 percent with student loans were skipping or making reduced payments as of the beginning of October, according to Goldman Sachs researchers.

But those debts are still piling up in the background, which could leave consumers with a crushing burden once those protections expire without something to keep them afloat.

“There will be a massive balloon payment on what people are supposed to pay,” said Megan Greene, an economist at Harvard’s Kennedy School of Government. “Lots of people won’t be able to afford that.”

“It’s been surprising to me how long consumers have been able to hold on,” she added. “We’re tempting fate by waiting until next year to re-up some of the stimulus measures.”

Thanks to government aid, aggregate personal income is still up from before the coronavirus crisis, even though wages and salaries are still below pre-pandemic levels, according to economic data released by the U.S. Bureau of Economic Analysis.

Personal income decreased $540.6 billion in the third quarter, after rising $1.45 trillion in the second quarter, a drop the agency attributed to a decrease in pandemic-related relief programs.

Part of the danger is that complete information isn’t available, so some areas may be suffering more than we know.

“A lot of the work I do focuses on rural communities, and there’s just not a lot of good data there,” said Gbenga Ajilore, senior economist at the Center for American Progress. “There are canaries in the coal mine, but … we don’t see the areas that are getting hurt because we don’t measure those areas.”

Researchers at Columbia University found that the monthly poverty rate increased to 16.7 percent in September from 15 percent in February, with about 8 million people falling into poverty since May.

Life has gotten harder for the poorest Americans. “We find that at the peak of the crisis (April 2020), the CARES Act successfully blunted a rise in poverty; however, it was not able to stop an increase in deep poverty, defined as resources less than half the poverty line,” that report said.

Maurice Jones heads up the Local Initiatives Support Corp., one of the largest community development financial institutions in the country, and said this has been the biggest year ever for the nonprofit — both in terms of donations and in relief they’re paying out.

“We have something called financial opportunity centers, and the focus of them historically has been on getting people prepared to compete successfully for living wage jobs — thinking more long term, if you will,” he said. “We have had to really adjust and focus on immediate relief. … People are literally having to choose between paying rent and buying groceries.”

Jones said his firm gave out $225 million in grants or forgivable loans between March and the end of September. “We’ve never had a six-month period like that in our history with that kind of deployment of those kinds of dollars,” he said.

He said it could be “a decade’s work” to get poor people back to where they were before the pandemic.

Also, many people don’t have ready access to aid from institutions like Jones’s, which focus on underserved markets, and banks have been tightening lending standards as the financial picture darkens for many borrowers. That means low-income Americans will turn to high-cost payday loans and check cashers to pay their bills, which can mean getting caught in a cycle of debt.

“These are not folks who are in a position to absorb loans at this stage of the game,” Jones said. “We’re not talking about a small chunk of the population. We’re talking tens of millions of people.”

“We gotta get this election behind us and get back to the federal government’s next chapter in helping folks weather the storm.”

This blog originally appeared at Politico at October 29, 2020. Reprinted with permission.

About the Author: Victoria Guida is a financial services reporter covering banking regulations and monetary policy for POLITICO Pro. She covers the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency, as well as Treasury, after four years on the international trade beat, most recently for Pro and previously for Inside U.S. Trade.


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