• print
  • decrease text sizeincrease text size
    text

Job losses have now hit 40% of low-income homes

Share this post

Thirteen percent of all U.S. adults, or 20 percent of people who were employed in February, were laid off or furloughed.

One in five American workers lost their jobs in March, including almost 40 percent of those in lower-income households, according to a Federal Reserve survey, underscoring the staggering impact of the coronavirus crisis.

The data — released hours after the Labor Department reported that workers filed almost 3 million new unemployment claims last week — is further evidence that the economic crunch is pounding poorer Americans the hardest. It comes as the country increasingly looks to the Fed to ease the pain of the recession and the central bank itself presses Congress to do more to halt the wave of layoffs.

“A clearer understanding of how families are coping with the changed economic landscape is vital as the Federal Reserve considers next steps to address fallout from the pandemic,” Fed Governor Michelle Bowman said in a statement.

Thirteen percent of all U.S. adults, or 20 percent of people who were employed in February, were laid off or furloughed as the pandemic began sweeping through the country in March, the Fed said. Another 6 percent of all adults worked reduced hours or went on leave without pay, the central bank found in the survey, included in its annual Report on the Economic Well-Being of U.S. Households.

For those who lost their job or were working fewer hours, only 64 percent expected to be able to pay off all their bills, compared to 85 percent of Americans who didn’t see their employment situation change.

Yet in a sign that Americans are maintaining their optimism, 91 percent of people who lost their jobs or were furloughed said they expected to return to the same employer eventually, suggesting that government efforts to keep workers tied to their current jobs might be working. Five percent in that group had already returned to work by the time of the survey.

Still, the numbers paint a grim picture: 39 percent of employed people in households making less than $40,000 lost their job or were furloughed in March. That compares to 19 percent of individuals in households making between $40,000 and $100,000, and 13 percent of people in households with an income above $100,000, a Fed official told reporters.

Meanwhile, 7 percent of workers took a new job or increased their hours. Overall, 23 percent of Americans reported lower income in March compared to February, while only 5 percent saw their pay increase.

Some people who saw their employment situation change for the worse might have been able to get new jobs or had second jobs.

Fed Chair Jerome Powell on Wednesday warned that the depth of the crisis could result in lingering pain for the economy and said further action by Congress to mitigate that damage would be worth the high cost.

“This reversal of economic fortune has caused a level of pain that is hard to capture in words, as lives are upended amid great uncertainty about the future,” Powell said.

The survey findings also highlight disparities among workers with different education levels, with financial well-being declining among those with a high school education or less.

People with more education also had more ability to work from home; 63 percent of workers with at least a bachelor’s degree worked entirely from home during the last week of March, compared to 20 percent of workers with a high school degree or less, and 27 percent of people with some college education or an associate degree.

The supplemental survey polled roughly 1,000 adults between April 3-6.

This blog originally appeared at Politico on May 14, 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.


Share this post

Everyone can get coronavirus, but economic inequality means it will be worst for those at the bottom

Share this post

This image has an empty alt attribute; its file name is avatar_2563.jpg

Coronavirus doesn’t spare the powerful. As of this writing, two members of the House, a senator, and the president of Harvard University have tested positive. But as with so many things in the unequal United States of America, it’s going to be worse for people who are already vulnerable: low-income people, people in rural areas, homeless people, single parents, inmates, and more.

There’s the constant strain of affording health care in a system that bankrupts so many people. There’s the need to go to work no matter what if you live paycheck to paycheck and don’t have paid sick leave. There’s the fact that so many of those low-wage jobs require face-to-face contact.

COVID-19 disproportionately hits older people, and rural populations skew old. The most common jobs in rural areas tend not to offer paid sick leave. Rural areas have also lost more than 100 hospitals in the past decade, so the remaining hospitals may struggle to keep up with increased need even more than hospitals in other areas of the country—where it’s already expected to be bad.

We’re told that staying away from other people and washing our hands a lot are two of the best ways to combat the spread of coronavirus. Homeless people lack access to sanitation and often live in crowded environments, be they shelters or encampments. Inmates are another group living in crowded environments and prisons often lack soap as well.

In the workplace, a Politico analysis found that nearly 24 million people are in particularly high-risk, low-wage jobs—cashiers, home health aides, paramedics. Their jobs require them to get close to lots of people day after day, and all too often lack paid sick leave.

Low-income people also can’t stockpile food and retreat to their homes to ride it out—because most don’t have the savings to buy two weeks of food all at once. Families whose kids rely on free or reduced-price school lunches may still have access to those meals, but they are likely to have to go out every day to pick up the food. And many say that their school districts haven’t told them where to go for meals.

Anyone can get sick from COVID-19. Anyone can get very sick from it. But that doesn’t mean the suffering will be evenly distributed. 

This article was originally published at Daily Kos on March 24, 2020. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor.


Share this post

You ARE Entitled: Workers Making Money Stretch

Share this post

It might not come as a surprise to you that 2.2m Americans are in low-income jobs according to the US Department of Labor. Attempts are being made to pinch worker’s rights and their ability to litigate against employers. This is despite a growth in the economy, employment rates and the overall average wealth of the USA’s workers. This means that more American workers are having to make less dollars stretch further.

Fortunately, it’s not entirely doom and gloom. On a national level, workers are organizing for their rights. On a personal level, there are a wide variety of schemes, rights and techniques you can employ to make sure you are getting everything you are entitled to.

Federal and State Assistance

Despite the aforementioned legal squeeze on rights and entitlements, there is still plenty that the government is doing to help low-income workers – both on a federal and state level. This is especially important in benefit-capped states, where state assistance programs are crucial for employees. Cash isn’t the be all and end all, either. For instance, if your employer withdraws mandatory health insurance if the ACA is superseded, many states have health care assistance programs that also cover dental and other healthcare areas. They also assist with areas such as childcare, if your employer is restricting access to childcare facilities or doesn’t offer them full stop.

Legal Assistance

Employees across the USA experience legal issues for a number of reasons, from in-work disputes to non-payment of unemployment benefits. It’s estimated that 71% of low income workers experience at least one legal issue yearly. Many of these require the provision of legal assistance.

Unfortunately, as the Legal Services Corporation found, 86% of Americans received inadequate legal help, resulting in a poor success rate for claims that should have been allowed and restitution received.

This is partly down to a lack of awareness around the opportunities available to employees when it comes to legal aid. Many states offer legal aid, as covered above. However, it’s the case that increasing numbers of labor law firms are offering pro bono advice and representation, providing what is sometimes a greater level of legal help due to the increased resources available.

Credit Unions

Across the entire workforce of the USA, it’s noted that most Americans under-save. The Bureau of Economic Analysis found that most employees only save 5.7% of their incomes, which is understandable given the rising cost of living and other influences on pay packets.

Credit unions have existed for decades, largely in the sphere of labor unions and local communities. They operate on the basis that everyone pays in and this enables the union to help members in times of need, whilst also behaving as – variously – a savings pot or pension fund. They often have a sliding scale of contributions and so if you’re on low income, or out of work, it can be beneficial for long-term saving and planning to put a few of your cents away in a suitable scheme.

Personal Development 

Being removed from employment can put a bump in the road if you’re developing professional skills. Some careers are cherry picked by the employee for their professional development opportunities. When you find yourself unemployed or moved sideways, you will find that your education is sacrificed, too.

Whilst this can seem minor, studies have suggested that under skilling workers is detrimental to society. This is in addition to your own personal development and, if your cash flow is restricted, the development of your family. Again, make sure to thoroughly check your contract and legal rights to ensure that your education is linked to the job role and not an outside commitment. If you are in a bad position, you might be able to find an avenue of help in the USA’s varied community colleges, some of which offer programs in line with the state and federal assistance programs to help those less fortunate to continue their education.

Unemployment and changes in working pattern can be stressful and can come across as harsh. Whilst personal responsibility is important during these times, don’t forget that there are entitlements and services out there to support you.

About the Author: Jackie Edwards is an editor, researcher, and writer.


Share this post

Veto the Cold-Hearted Health Bill

Share this post

Donald Trump is right. The House health insurance bill is “mean, mean, mean,” as he put it last week. He correctly called the measure that would strip health insurance from 23 million Americans “a son of a bitch.”

The proposal is not at all what Donald Trump promised Americans. He said that under his administration, no one would lose coverage. He said everybody would be insured. And the insurance he provided would be a “lot less expensive.”

Senate Democrats spent every day this week pointing this out and demanding that Senate Republicans end their furtive, star-chamber scheming and expose their health insurance proposal to public scrutiny. That unveiling is supposed to happen today.

Republicans have kept their plan under wraps because, like the House measure, it is a son of a bitch. Among other serious problems, it would restore caps on coverage so that if a young couple’s baby is born with serious heart problems, as comedian Jimmy Kimmel’s was, they’d be bankrupted and future treatment for the infant jeopardized.

Donald Trump has warned Senate Republicans, though. Even if the GOP thinks it was fun to rebuff Democrats’ pleas for a public process, they really should pay attention to the President. He’s got veto power.

Republicans have spent the past six years condemning the Affordable Care Act (ACA), which passed in 2010 after Senate Democrats accepted 160 Republican amendments, held 110 bipartisan public hearings and conducted 25 consecutive days of public floor debate. Despite all of that, Republicans contend the ACA is the worst thing since Hitler.

That is what they assert about a law that increased the number of insured Americans by 20 million, prohibited discrimination against people with pre-existing conditions and eliminated the annual and lifetime caps that insurers used to cut off coverage for sick infants and people with cancer.

The entire cavalry of Republican candidates for the GOP nomination for President promised to repeal the ACA, but Donald Trump went further. He pledged to replace it with a big league better bill.

In May 2015, he announced on Twitter: “I’m not going to cut Social Security like every other Republican and I’m not going to cut Medicare or Medicaid.”

In September 2015, he said of his health insurance plans on CBS News’ 60 Minutes, “I am going to take care of everybody. I don’t care if it costs me votes or not. Everybody’s going to be taken care of much better than they’re taken care of now.”

In another 60 Minutes interview, this one with Lesley Stahl last November, he said, “And it’ll be great health care for much less money. So it’ll be better health care, much better, for less money. Not a bad combination.”

In January, he told the Washington Post, “We’re going to have insurance for everybody.” He explained, “There was a philosophy in some circles that if you can’t pay for it, you don’t get it. That’s not going to happen with us.”

But then, the House Republicans betrayed him. The nonpartisan Congressional Budget Office said the measure they passed, called the American Health Care Act (AHCA), would cut more than $800 billion from Medicaid. It said people with pre-existing conditions and some older Americans would face “extremely high premiums.”

Extremely high is an understatement. Here is an example from the CBO report: A 64-year-old with a $26,500 income pays $1,700 for coverage under the Affordable Care Act (ACA), but would be forced to cough up more than half of his or her income – $16,000 – for insurance under the House Republican plan. Overall, premiums would increase 20 percent in the first year. And insurers could charge older people five times the rate they bill younger Americans.

House Republicans said states could permit insurers to squirm out of federal minimum coverage requirements, and in states where that occurred, the CBO said some consumers would be hit with thousands of dollars in increased costs for maternity care, mental health treatment and substance abuse services.

In the first year, the House GOP plan would rob insurance from 14 million Americans.

So much for covering everyone with “great health care at much less money.”

It’s true that President Trump held a party for House Republicans in the Rose Garden after they narrowly passed their bill. But it seems like he did not become aware until later just how horrific the measure is, how signing it into law would make him look like a rank politician, a swamp dweller who spouts promises he has no intention of keeping.

By last week when President Trump met with 15 Senate Republicans about their efforts to pass a health insurance bill, he no longer was reveling in the House measure. He called it “cold-hearted.” He asked the senators to be more “generous,” to put “additional money” into their version.

Senators told reporters that President Trump wanted them to pass a bill that is not viewed as an attack on low-income Americans and provides larger tax credits to enable people to buy insurance.

Now that sounds a little more like the Donald Trump who repeatedly promised his health insurance replacement bill would cover everyone at a lower cost. Still, those goals remain amorphous.

The House bill is stunningly unpopular, almost as detested as Congress itself. President Trump seems to grasp the enormity of that problem. But even his calling it a “son of a bitch” doesn’t seem to have been enough to persuade senators that he’s serious about getting legislation that achieves his promises to leave Medicaid intact, cover everyone and lower costs.

Republican senators deciding the fate of millions of Americans must hear from Donald Trump that passing a health insurance bill that doesn’t fulfill his campaign promises is, shall we say, a cancer on the Presidency.

A veto threat would get their attention.

This blog originally appeared at OurFuture.org on June 21, 2017. Reprinted with permission. 

About the Author: Leo Gerard is president of the United Steelworkers.


Share this post

Trump targets USDA with some of the deepest proposed budget cuts

Share this post

President Donald Trump ran on a platform of giving a voice to rural voters who felt forgotten by politicians in Washington. But his proposed budget, released on Tuesday, proposes deep cuts to crucial Department of Agriculture programs that many rural residents, and farmers, depend on.

The budget proposes an almost 21 percent cut to the USDA, the third-largest percentage cut proposed for any agency, behind the Environmental Protection Agency and the State Department. It would cut crop insurance?—?which pays farmers for losses due to extreme weather, or compensates farmers for loss if prices are higher than guaranteed at the time of harvest?—?by 36 percent, far deeper cuts than were proposed under the Obama administration. And it proposes to “streamline” conservation programs, while eliminating the rural development program aimed at bringing infrastructure, technology, and utilities to rural communities.

“The Budget Proposal guts the USDA by 21 percent and makes further cuts to programs, all of which will leave rural and urban farmers, low-income families, and taxpayers more vulnerable,” Mike Lavender, senior Washington representative for the Union of Concerned Scientists, said in an emailed statement.

The proposed budget zeroes out programs like the USDA’s Farm Safety program, which seeks to reduce farm sector injuries by training workers in how to properly use farming equipment. It also eliminates programs like the Natural Resources Conservation Service’s watershed protection projects, which helps both protect sensitive watersheds from environmental degradation, like soil runoff, and helps rural communities respond to natural disasters like floods.

“Agriculture is a risky business, and we absolutely need an adequate safety net for farmers while also providing incentives that will accelerate adoption of conservation practices,” Callie Eideberg, senior policy manager for the Environmental Defense Fund, told ThinkProgress via email. “Eliminating any program that helps farmers increase resiliency and protect natural resources is a shortsighted decision that can have harmful consequences.”

Key research programs aimed at helping farmers adapt to the changing climate?—?like programs that offer grants to farmers interested in experimenting with innovative conservation techniques?—?would also face deep cuts under the proposed budget. More than $33 million would be cut from agricultural research programs like the Agriculture and Food Research Initiative (AFRI), which provides grants for agricultural sciences, and the Sustainable Agriculture Research & Education Program (SARE), which helps farmers fund conservation projects.

“The budget would slash funding for key agricultural research and conservation programs, undermining the ability of farmers to sustain their land and their livelihoods for the future,” Lavender said.

Cuts to USDA research programs would hardly be the first time the Trump administration showed science to be a low priority for the agency. Trump is expected to name Sam Clovis, a conservative talk-show host that denies the scientific consensus on climate change, to be the USDA’s undersecretary of research, education and economics. That would put Clovis in charge of the USDA’s entire scientific mission, including research programs aimed at helping farmers respond to climate change. Current Secretary of Agriculture Sonny Perdue also denies the scientific consensus on climate change, calling climate science “a running joke among the public” in a 2014 op-ed published in the National Review.

Perhaps surprisingly, the Trump budget does not specify what will become of one of the Obama administration’s signature climate-focused programs within the USDA, the regional climate hubs, which connect farmers with on-the-ground information about climate science and adaptation in their region. Office of Management and Budget Director Mick Mulvaney did say on Tuesday, however, that the budget at large was aimed at decreasing the “crazy” climate spending of the Obama administration.

This article was originally published at ThinkProgress.org on May 23, 2017. Reprinted with permission. 

About the Author: Natasha Geiling is a reporter at ThinkProgress. Contact her at ngeiling@americanprogress.org.


Share this post

Subscribe For Updates

Sign Up:

* indicates required

Recent Posts

Forbes Best of the Web, Summer 2004
A Forbes "Best of the Web" Blog

Archives

  • Tracking image for JustAnswer widget
  • Find an Employment Lawyer

  • Support Workplace Fairness

 
 

Find an Employment Attorney

The Workplace Fairness Attorney Directory features lawyers from across the United States who primarily represent workers in employment cases. Please note that Workplace Fairness does not operate a lawyer referral service and does not provide legal advice, and that Workplace Fairness is not responsible for any advice that you receive from anyone, attorney or non-attorney, you may contact from this site.