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U.S. unemployment rate fell to 8.4 percent in August

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The unemployment rate dropped to 8.4 percent in August, the Labor Department reported on Friday, marking the fourth month of declines even as the pace of job growth is slowing.

The August rate is down from its April peak of 14.7 percent, but still remains far above the 3.5 percent recorded in February, before coronavirus shutdowns took hold.

The economy recovered 1.4 million jobs last month, the report showed. That’s a slowdown from the previous month’s gain of a revised 1.7 million and from the 4.8 million recovered in June.

After four straight months of growth, fewer than half of the more than 23 million jobs lost in March and April have been recovered.

“Slowing job growth is a disaster when you are 11.8 million jobs in the hole,” Heidi Shierholz, a former chief economist at the Labor Department, posted on Twitter Friday. “This is not the V-shaped recovery that could get us out of this crisis in a reasonable timeframe.”

The data released Friday morning are the results of a survey conducted in mid-August, reflecting some of the earliest effects since enhanced federal unemployment benefits expired at the end of July. The growth was led by rehires in retail, education, leisure and professional services. It also includes nearly 240,000 workers the government temporarily hired to work on the 2020 Census.

Economists warn the labor market may well have grown weaker since the report was conducted, however. Many expect further layoffs through the fall especially if Congress fails to pass further stimulus relief, as an expected drop in consumer spending, the expiration of a small business relief program and other factors could spur a wave of business closures across the country.

The number of permanent job losses is also rising, a signal that damage to the labor market is likely to be long-lasting. The vast majority of unemployed workers are classified as on temporary layoff, indicating they still expect to return to their previous jobs. But permanent losses climbed to 3.4 million in August, the report showed, up from July’s 2.9 million.

White House National Economic Council Director Larry Kudlow hailed the latest numbers on Friday, with the caveat that “we are not out of the woods.” He also downplayed the need for further stimulus, saying in an interview on Bloomberg TV that he believed the economy was “self-sustaining” and could survive without an immediate deal in Congress.

“We can absolutely live with it,” he said, adding, “It depends on the package. A bad package would not be helpful, a smart, good package, well-targeted would be helpful.”

The unemployment rate is dropping fastest for white workers, the report shows, while employment among minority workers is recovering at a slower rate.

The white unemployment rate for white people fell to 7.3 percent in August, the report showed, a drop of 6.9 percent from its April peak. The unemployment rate for Black people, meanwhile, stands at 13.0 percent, a drop of 3.7 percent from its April level.

This article originally appeared at Politico on September 4, 2020. Reprinted with permission.

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. It was in that role that she first began covering trade, including Donald Trump’s rise as the populist candidate vowing to renegotiate NAFTA and Hillary Clinton’s careful sidestep of the Trans-Pacific Partnership.

A D.C.-area native, Megan headed south for a few years to earn her bachelor’s degree in business journalism and international politics at the University of North Carolina at Chapel Hill. Now settled back inside the Beltway, Megan’s on the hunt for the city’s best Carolina BBQ — and still rooting for the Heels.


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As Universities are Gutted, Grad Student Employee Unions Can Provide a Vital Defense

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The exploitation of academic workers has simmered for decades. Now, buoyed by a National Labor Relations Board ruling that graduate employees at private universities have the right to unionize, a new generation is organizing unions across private universities—defying a wave of pushback from administrations. Some students win (Columbia, Loyola). Some withdraw (Duke). Some get caught in a limbo of university appeals (Yale).

But all of these efforts are integral to the U.S. labor movement, as graduate workers challenge their own exploitation and the neoliberal decimation of the higher-education institutions that employ them.

I’m a graduate worker at Vanderbilt University and a member of the committee organizing to unionize 1,200 graduate employees. I attend graduate school out of a passion for learning, writing and teaching young people. I came here to critique Western intellectual history by analyzing social, economic and political issues. These matters impact my life and the lives of loved ones; they are not academic hobbies or intellectual fancies. Even lecturing is no mere academic exercise: Higher education is what fosters democratic citizenship. It cultivates capacities for critical self-reflection, engagement in public discourse and thoughtful participation in a rapidly changing world. We need these pursuits now more than ever.

I did not come to graduate school to spend thousands of dollars out-of- pocket to fulfill professional obligations while watching my institution insidiously cut funding opportunities for faculty and graduate workers. I did not come to graduate school to listen to administrators rebrand us as students gaining ‘experiential education opportunities’ rather than as employees teaching introductory classes, executing research programs, or building scholarly communities. Most importantly, I did not come to graduate school to bolster a system that abuses its workers, ignores academic rigor, overlooks sexual harassment allegations against distinguished (male) faculty, engages in unlawful labor practices and disregards the needs of its staff and faculty.

And yet, this system demands that I participate by providing constant intellectual, physical and emotional labor, despite minimal job security.

Many scholars have already exposed the decline of education and the poor labor conditions of university educators. In his 2011 The Fall of the Faculty, Benjamin Ginsberg published a devastating analysis of the decline of faculty power. More recently, Elizabeth Anderson’s 2015 Tanner Lectures at Princeton, published as Private Government, chronicled dictatorial employment practices. And last month, University of Michigan dual-Ph.D. candidate Maximillian Alvarez penned “Contingent No More,” a manifesto criticizing the laissez-fare academic culture that perpetuates the “neoliberization of higher education.”

These writers illuminate the struggles of a new generation of faculty and graduate workers in academia. Burdened by insurmountable student debt and confronted by the machinery of U.S. capitalism, we fight just to survive.

Recent struggles in higher education are part of a long history of economic exploitation and domination over workers, problems that have pervaded U.S. society since its racist, genocidal and profit-driven founding. Whereas in the 1970s almost 80 percent of faculty were full-time, universities today have shifted to a contingent employment model. Non-tenure track faculty now compose 70 percent of the academic labor force, 41 percent of whom are part-time. Graduate workers are 13 percent of the academic labor force, almost 5 percent more than full-time, tenure-track faculty.

Why? Because contingent labor is cheap, and no tenure means we’re expendable. This allows universities to slash salaries for faculty while expanding bureaucratic administrations that obstruct grievance processes and legal redress.

In fact, Business Insider reveals that tuition has increased by 260 percent since 1980, compared to the 120 percent increase in consumer items over the same period. So, where is that money going, if not to faculty and graduate employee salaries? It is going to university administrators, whose employment has increased by 221 percent from 1975 to 2008. In contrast, faculty employment has increased by only 3.5 percent.

All the while, faculty and students are left in the dark as to how university revenue is spent. The Illinois State Senate’s 99 Percent General Assembly 2015 Report on Executive Compensation notes that “tuition increases have coincided with a dramatic increase in administrative costs, including the size of administrative departments and compensation packages for executives.” Vanderbilt University’s Chancellor Nicholas Zeppos was cited by Forbes as the fifth-highest- paid university president in 2012, with an annual salary of $2.23 million. He and 35 other university presidents across America made over $1 million that year. Nearly 40 percent of university presidents are eligible for financial bonuses for increasing statistics like graduation rates, at the expense of faculty resources for research and conference travel.

For the administrative university, undergraduates—our students—have gone from ‘future leaders’ to ‘commodities.’

The generation of capital, rather than free and critical thought, is increasingly becoming the purpose of higher education. Deans see themselves as micro-CEOs, while provosts and chancellors view the university as a money-making venture. We instructors are the face of the university and provide the classroom education that students pay for, yet revenue we bring in doesn’t pay for our security. Instead, we are told that admission to a doctoral program is a gift, that our employers are benevolent, and that quiet gratitude is the only appropriate response to our conditions. They pretend this is enough to ignore watching us sink below a living wage, struggle with mental health with little support, and work ourselves to exhaustion.

This piece was originally published at In These Times on July 5, 2017. Reprinted with permission. 

About the Author: Sabeen Ahmed is a PhD student in the Department of Philosophy at Vanderbilt University. She is interested in social and political philosophy and critical phenomenology. She is currently working to analyze refugee discourses through a critique of Western intellectual history.


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Transit Workers Reach Agreement to End Weeklong Strike in Philadelphia

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On Monday, transit workers in TWU Local 234 reached a tentative agreement with the Southeastern Pennsylvania Transportation Authority and ended a weeklong transit strike in Philadelphia. Nearly 5,000 employees are returning to work, and the deal now goes to the local’s membership for a vote, which is set for Nov. 18.

Willie Brown, president of Transport Workers (TWU) Local 234, lauded the agreement:

“This is a contract with many important gains, especially on pension benefits and a host of non-economic issues effecting the working conditions and job security of our members. As everyone with experience in collective bargaining knows, we didn’t get everything we wanted—but we came a long way from where we were prior to the strike. We made gains in pensions and wages and minimized out-of-pocket health care expenses at a time when health care costs are soaring, while maintaining excellent medical coverage for our members and their families.

“We worked day and night at the bargaining table in an attempt to finalize a new contract over the past week. We settled just hours before facing the possibility of a back-to-work court-ordered injunction. We ultimately prevailed because our members were determined and united from beginning to end. We also benefited from the assistance of city leaders such as Congressman Bob Brady and Democratic congressional candidate Dwight Evans, who worked to help us settle this dispute with a SEPTA Board controlled by Republicans.

“Our members will keep Philadelphia moving, and we will continue to fight for our members’ economic well-being and their rights on the job.”

Said TWU President Harry Lombardo:

“TWU’s members in Philadelphia are some of the hardest working people on the job. We’re pleased they’ll have a contract that recognizes that.”

Details of the agreement will be made public after the vote.

This blog originally appeared in aflcio.org on November 7, 2016.  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.


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What Workers Really Fear on the Job

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Credit: Joe Kekeris
Credit: Joe Kekeris

What’s your biggest worry about your job?

Some 40 percent of America’s workers say they fear their benefits will be reduced in the near future, according to Gallup’s annual Work and Education poll released today. That compares with 28 percent who are afraid their wages will be cut back and 28 percent who fear they will be laid off, a percentage that’s still high compared with pre-recession levels. (Click on chart to enlarge.) In addition, 26 percent fear their hours will be cut back.

The polls found U.S. workers with less formal education are more likely than those with greater educational attainment to worry about losing their job or having their pay or benefits reduced. Some 34 percent of college non-graduates say they are worried about being laid off, compared with 18 percent of college graduates.

So what do these new data mean?

American workers feel secure about their employment situation, even during one of the slower economic times in U.S. history—perhaps
helping to maintain consumer spending enough to prevent a second recession.

U.S. workers feel their benefits are most at risk, which may be the first place employers seek to cut back during difficult economic times. And workers may be willing to accept such cuts over more severe measures like pay cuts or layoffs.

When you depend upon your employer to provide essentials like health care, losing a job means a lot more than lost wages. Unions are the best defense against the billionaire-backed Romney/Ryan politicos who seek to do what America’s workers fear most: cut benefits, slash jobs and squeeze wages.

This blog originally appeared in AFL-CIO on August 22, 2012. Reprinted with permission.

About the Author: Tula Connell got her first union card while she worked her way through college as a banquet bartender for the Pfister Hotel in Milwaukee they were represented by a hotel and restaurant local union (the names of the national unions were different then than they are now). With a background in journalism (covering bull roping in Texas and school boards in Virginia) she started working in the labor movement in 1991. Beginning as a writer for SEIU (and OPEIU member), she now blogs under the title of AFL-CIO managing editor.


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