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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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For Many, the Pandemic Was a Wakeup Call About Exploitative Work

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By the time Covid-19 hit, Lily, 28, had been with her employer for four years and in her part-time role for the past two. Not once in those four years had her hourly wage moved above the state-required minimum in her upstate New York town— currently, $12.50. Lily was living with her parents to save money, and, because her job was in ticketing sales for professional sports, it was competitive. She hadn’t given much thought as to why she was paid so little; she was just grateful to work in the industry she loved.

But when Lily was furloughed during the pandemic, she had a creeping suspicion her labor had been undervalued. With professional sporting events shut down, she took on remote work, first as a customer service agent, then as a New York contact tracer — jobs that paid nearly double what she had been making. “I was like, ‘Oh, I’m worth more than minimum wage,’” Lily says. (Lily is a pseudonym requested in fear of retribution from future employers.) “I didn’t even realize how bummed I was. A plane ticket was 25% of my net worth. I was worrying about putting gas in my car to get to work.” 

These remote jobs were temporary, however, and when Lily started interviewing for new positions, she was disappointed to find many companies still only offering just about minimum wage. One job offered an extra $2.50 after negotiation, but Lily turned it down—the venue was also an extra hour away, and she still needed to cover gas. 

Lily has mostly been relying on savings to get by after spending over a month hunting for full-time work, hoping to find a job that allows employees to work remotely on a permanent basis. Her goal is a $20 wage, but she worries whether that goal is realistic. She had a “big, revelatory moment” when she was earning more money, she says: “I started eating healthier. I bought myself workout clothes for the first time in years. You can have all the therapy sessions in the world, but an influx of cash will really change the way you feel about yourself.” 

A pernicious corporate narrative suggests that workers like Lily—who ask for a decent wage and marginal flexibility from an employer—are simply lazy. Many understaffed employers have chalked up their problems to workers coasting on unemployment benefits or stimulus checks. They complain about the federal unemployment supplement and the states that have loosened the strings on unemployment payments (such as requirements to continually search for a job or to accept any offer).

But the 26 mostly red states that recently terminated the $300 weekly unemployment supplement from the American Rescue Plan, purportedly to incentivize workers, did not all see an immediate increase in job searches. Many workers have valid reasons not to return to work regardless of any “incentives”—one of the top reasons being the exorbitant cost of child care. As the pandemic closed daycares and schools and left parents in the lurch, many two-parent households realized it would be cheaper for one parent to stay home rather than work. Others are wary of exposure to Covid-19.

To be fair, there’s evidence that for some people, pandemic relief measures (or pandemic savings) have enabled joblessness by choice. A June survey by the jobs website Indeed.com found a fifth of job seekers were not urgently searching for work because of their “financial cushion.” A Morning Consult poll that same month found 13% of people receiving unemployment checks had turned down job offers because of that short-term stability.

To deem this unemployed behavior “lazy,” however, one must be predisposed to thinking work is some sort of moral imperative. Rarely have workers had the freedom to be selective about where, when and how much they work—to decide their own fates. In light of this profound shift, perhaps it’s understandable that workers are unwilling to settle.

There are more existential questions, too. Workers are re-evaluating what role work should have in their lives, whether it’s important to their sense of self, what they would do with their time otherwise. Some may decide the jobs they left are what the late anthropologist David Graeber termed “bullshit jobs,” work “that is so completely pointless, unnecessary, or pernicious that even the employee cannot justify its existence.” After such a revelation, how could employers expect workers to return to business as usual?

In her seminal 2011 book The Problem With Work, Kathi Weeks argues that wage labor (one of the least-questioned arrangements in U.S. culture) is actually a social convention, not an economic necessity. As workers have become more productive and automation has picked up more slack, not much serious consideration has been given in the United States to the idea of reducing work hours. Instead, people work more and more. According to Weeks, having a job confers moral goodness and other virtues upon those who perform it, which is why people rarely question whether work is, in itself, good. If they did, they might see how work limits their pleasure, creativity and self-determination.

The post-work future Weeks imagines, citing the scholarship of Paul Lafargue, would allow us to expand “our needs and desires beyond their usual objects”—to understand how we want to spend our finite time in the world, then go do it. The refusal to work is an important step toward getting there, according to Weeks. When workers reduce the hours they spend working (or stop working altogether), they are rejecting the idea of work as our “highest calling and moral duty … as the necessary center of social life.” It also allows workers to organize toward their revolutionary visions while improving their present circumstances.

The current historical moment isn’t without its precedents. A kind of mass work refusal took place in the 1970s, when one in six union members went on strike, demanding more control over their workplaces and more dignity. But the anti-work flashpoint was quickly “co-opted by managerial initiatives as an excuse for work intensification,” Weeks tells In These Times. Employers attempted to make work “more participatory, more multi-skilled, more team-based so that you could work even longer and harder.”

The pandemic-era shift seems more promising, Weeks says: Today’s workers are fed up with intensification. They are not merely thinking about what other kind of job they might have, but about whether they want to work at all (and how little work they can get away with).

“So many of the criticisms we are hearing about are focused on both the quality of work, the low pay and brutally intensive pace of so many jobs, and the question of quantity—for example, the long hours needed to make enough in tips in restaurant and service work and the added time of commuting to most jobs,” Weeks says. “The overwhelming response to the prospect of returning to work as usual is that people want more control over the working day and more time off work to do with as they will.”

Without work taking up 40 or more hours each week, those who lost their jobs to the pandemic have discovered other ways to fill their time. Baking bread became such a popular quarantine hobby that it verged on cliché, but many who tried it found it comforting and deeply satisfying. One might say the bakers were not alienated from their labor for once—they got to eat the bread at the end. Others found themselves with more energy to dedicate to activities like yoga, gardening and roller skating.

“I … got really into cooking at home, because I really do love to cook,” Caleb Orth, a 35-year-old in Chicago, told the New York Times’ podcast The Daily in August. “It was a hobby of mine before I lost my job,” he said. But at the restaurant where he’d worked 80 hours a week, he’d tired of making “somebody else’s food, the same thing over and over and over. So during Covid, I’d be making meals at home, and I got really into it.”

Many like Orth expressed amazement at how good it felt to be doing things that were good for their well-being. Work suddenly seemed like it might just be one element of life, not the center of it.

When the bar where Jessica McClanahan worked shut down in March 2020, she set about creating a small art studio in her home in Kansas City, Mo. She filled a corner of her living room with drawing and book-binding supplies, acquired an antique desk from a friend and assembled a small altar for cherished objects. McClanahan’s boyfriend, who had worked with her at the bar, got laid off around the same time; he fixed himself an art studio upstairs. While the two collected unemployment—about $325 weekly, each, plus a $600 weekly federal supplement—they fell into a routine. They would wake up each morning, have breakfast, then make art in their respective spaces.

“Sometimes I would just mess around and not really do anything,” says McClanahan, 37. “But I got to be like, ‘Oh, do I want to draw a picture? Yes. I’m gonna do that. Do I want to paint? Make a book? Take photographs? I also taught myself how to embroider. It was just a free-for-all for creativity, which I haven’t had in a long time.” She made a leather-bound sketchbook for her boyfriend for Christmas, a guestbook for his parents’ 50th wedding anniversary and dozens of postcards to send to friends across the country.

McClanahan, who has a master’s in library science and went to art school, had long intended to spend more time on creative pursuits. When she started her bartending career in 2005, she saw the service industry as a reliable way to make rent and pay off student loans. While her friends were making minimum wage at art galleries, she made hundreds in tips in a single night. But it got harder to make time for art, especially when she became a bar manager. McClanahan says she felt glued to her phone even when she wasn’t on the clock, troubleshooting crises at work, fielding texts from people who called in sick and answering emails from vendors.

After trying out a few other jobs during the pandemic, McClanahan decided to go back to bartending when restaurants reopened—but quickly realized she couldn’t return to the lifestyle she had as a manager. “I was really stressed all the time, and I kept saying to myself over and over, ‘I don’t know why I am spending so much time worrying about something that isn’t even mine,’” McClanahan says. The downtime while she was unemployed gave her “freedom and peace of mind.”

“That really got the ball rolling for me in terms of thinking about what I’m willing to tolerate at my job going forward,” McClanahan adds.

Some employers are starting to see obvious solutions to their so-called labor shortage: better conditions, signing bonuses, higher wages, stronger benefits. The federal minimum wage is still not $15, but a growing number of companies have begun offering it (including giant corporations like Target, Best Buy, CVS Health and Under Armour). In a press release, Under Armour executive Stephanie Pugliese called the move a “strategic decision … to be a competitive employer.”

With the federal unemployment extension set to expire September 6, as this issue went to press, the 13% of workers who have refused jobs because of that stable income may no longer be able to simply opt out. Regardless, the new skepticism of work as a de facto good will likely stay. Our time, after all, is our lives.

Neither Lily nor McClanahan is presently receiving unemployment, and they both now work in the service industry. Lily believes this job is a temporary arrangement, while McClanahan plans to continue as a bartender.

“After having five different jobs during the pandemic, I’ve come back around to the idea that this is the kind of work I want to be doing if I have to work at all,” McClanahan says. “But my attitude toward devoting all of my lifeblood to work has definitely changed.”

About the Author: Marie Solis has written for the New York Times, The New Republic and The Nation.

This blog originally appeared at In These Times on September 24, 2021. Reprinted with permission.


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WHY IMMEDIATE AND LONG-TERM UNEMPLOYMENT REFORM IS A MATTER OF RACIAL AND GENDER JUSTICE

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The expanded pandemic unemployment programs have been a critical lifeline for tens of millions of workers during the pandemic, but their necessity and success highlight the gaping holes and longstanding inequities in an intentionally under-resourced unemployment insurance system.

Government has a responsibility to provide economic security for people, beyond times of crisis, and it has to listen and be accountable when people organize and advocate for needed reforms that grant this security. When the pandemic hit, the unemployment insurance system in the US was in dire need of immediate reforms that would address the needs of those most impacted. In March 2020, far too many jobless workers fell into a woefully neglected unemployment system that was ill-equipped to meet their needs. As a result, Congress passed temporary programs to address the biggest gaps in the program, including coverage for app-based and part-time workers and those with caregiving responsibilities, expanded benefit duration and increased weekly benefit amounts. And as a result of jobless workers organizing to hold their government accountable, Congress extended these crucial programs twice.

In 2021 alone, the unemployment insurance system has served as a vital lifeline for over 53 million workers and injected almost $800 billion into the economy. At the height of the pandemic, nearly 16 million workers simultaneously relied on these federal pandemic programs and would otherwise have been shut out of the unemployment program entirely. Now with these temporary programs ending on Labor Day, an estimated 7.5 million people will lose their unemployment benefits entirely.

The US labor market and unemployment insurance program were designed to prioritize white male workers. As a result, Black workers and other workers of color have faced racist hiring and firing practices, longer periods of unemployment, and over-representation among unemployment claimants.

Ending the temporary programs that addressed some of the gaps that kept Black unemployed workers and other jobless workers of color from acquiring unemployment insurance will have devastating impacts on these communities. Currently, Black workers experience 8.2 percent unemployment and Latinx workers experience 6.6 percent, compared to 4.8 percent unemployment for white workers.

Similarly, with the continued rise of the Delta variant as the federal programs end, people with generational caregiving responsibilities and school age children are left with impossible choices, and women who in particular do more care work, will be left with no support as they attempt to care for their families and return to work. Mothers across the country were forced from work to care for children and their ongoing caregiving responsibilities continue to stop them from being able to return to the labor force. The change in labor force participation is particularly dramatic for single mothers: by June 2021, the labor force participation rate of single mothers in their prime working years was still 5 percentage points lower than it had been in January 2020. The pandemic unemployment programs provided temporary support for these women, but with benefits expiring they again will be shut out of our outdated unemployment system that simply does not serve their needs.

Disabled and immunocompromised workers and their family members who are unable to return to work due to health and safety concerns will also face the same fate – being left with no support as delta surges. These workers faced some of the greatest challenges during this pandemic and our system should not shut them out, especially as emergency rooms and ICUs continue to be overwhelmed.

We cannot afford to continue to rely on temporary fixes that expire based on arbitrary dates rather than worker and economic needs. Rather, we must transform the unemployment insurance system to serve all workers at all times, whether the country is in a public health or economic crisis or not. As Congress enters the reconciliation process, we must continue to demand that elected leaders lay the groundwork for this transformation by enacting bold, structural UI reform including expanded coverage, increased minimum benefit duration and increased benefit amounts that are in line with basic living expenses. Without these measures, we cannot have an equitable recovery.

About the Author: Jenna Gerry, as a senior staff attorney with the National Employment Law Project, supports NELP’s efforts to end systemic racism in our social insurance system by providing legal and technical assistance to grassroots organizing groups and reformers to develop new worker informed and centered strategies to improve state and federal policies, build worker power, and improve jobless workers’ access to unemployment insurance Jenna is a proud member of the NELP Staff Association, NOLSW, UAW, LOCAL 2320.

This blog originally appeared at NELP on August 31, 2021. Reprinted with permission.


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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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NEW REPORT PROPOSES CRITICAL UNEMPLOYMENT INSURANCE POLICY REFORMS

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NATIONAL DAY OF ACTION BEING HELD IN WASHINGTON D.C. AND SIX OTHER CITIES

As 25 states cut pandemic unemployment benefits prematurely, a new report from a coalition of advocacy groups and think tanks, in partnership with workers who have experienced unemployment during COVID-19, proposes a stronger federal role in the unemployment insurance (UI) system and a slate of permanent reforms to unemployment benefits that will sustain families and the economy.

The report is a joint project of Center for American Progress, Center for Popular Democracy, Economic Policy Institute, Groundwork Collaborative, National Employment Law Project, National Women’s Law Center, and Washington Center for Equitable Growth.

“A successful unemployment system can be the centerpiece of economic recovery, particularly for those communities, such as workers of color, who bear the brunt of downturns and are left behind in the wake of recessions,” said Heidi Shierholz, Director of Policy and Senior Economist at the Economic Policy Institute, and contributor to the report. “In addition to sustaining working families through jobless spells, swift and adequate unemployment benefits are good for the broader economy because they allow workers to search for a job that is a good match to their needs, instead of being so desperate that they have to take the first job that comes along no matter how bad it is for them.”

The report includes key insights from workers who experienced unemployment during the pandemic, including Sharon Shelton Corpening, a media gig worker in Georgia who has supported herself and her mother on Pandemic Unemployment Assistance.

“COVID unemployed workers like me are fighting to build a UI system that supports us until we can find good jobs that allow us to live in dignity and security. Next week, my financial lifeline will be yanked from under me because states like Georgia have too much power to reduce, restrict, or flat out deny benefits that are literally keeping us alive,” said Corpening, an Unemployed Action leader. “Unemployed people—especially Black people in the South who face systemic racism even as jobs return—want and need to work. But this current unstable unemployment insurance system hasn’t helped us get on our feet if we can’t even count on UI benefits. We need federal protections and we need them now.”

The report’s proposed structural changes include:

  • Guaranteeing universal minimum standards for benefits eligibility, duration, and levels, with states free to enact more expansive benefits;
  • Reforming financing of UI to eliminate incentives for states and employers to exclude workers and reduce benefits;
  • Updating UI eligibility to match the modern workforce and guarantee benefits to everyone looking for work but still jobless through no fault of their own;
  • Expanding UI benefit duration to provide longer protection during normal times and use effective measures of economic conditions to automatically extend and sustain benefits during downturns; and
  • Increasing UI benefits to levels working families can survive on.

“This report lays out the first steps toward transforming our unemployment insurance system, with racial equity concerns front and center. Black, Brown, and Indigenous workers in particular have borne the brunt of the pandemic and its unemployment crisis. They continue to grapple every day with workplace health and safety concerns, underpaid work, eroded transportation infrastructure, and lack of affordable child care options. The urgently needed unemployment reforms detailed in our report will be a win for everyone in our nation,” said Rebecca Dixon, Executive Director at the National Employment Law Project.

The report release coincides with a national day of action from the Center for Popular Democracy calling on Congress to act quickly and boldly to enact transformative changes for an equitable economy, including overhauling the UI system. Unemployed Action leaders from around the country will join excluded immigrant workers and others in Washington D.C. for a 5,000-person march to the U.S. Capitol. Workers will also rally in Las Vegas, Los Angeles, Atlanta, New Orleans, Austin, and Pittsfield MA.

As the report explains, when state UI structures became overwhelmed during the onset of the COVID-19 recession, federal policymakers realized that benefit levels were too low and not available to enough workers. In part to offer stimulus to a sharply contracting economy, the federal government provided unemployed workers claiming standard UI benefits with a supplemental $600 per week in additional benefits, as well as extended the duration of benefits and provided benefits to some groups of workers left out of the regular UI system, such as the self-employed and temporary workers.

But even those emergency programs have proven inadequate, with already overstretched state systems failing to get out emergency benefits in a timely manner. Half of the states are now choosing to cut off their residents’ access to these programs early, causing extraordinary harm to vulnerable families and impeding the economic recovery. These attacks on critical emergency benefits are the most vivid and recent manifestation of recurring dysfunction in the UI system: The federal government has ceded so much control to states that it has failed to equitably protect working people.

“Unemployment benefits are critical to keep us going as we continue to look for work, but our broken system keeps throwing obstacles in our paths,” said Nate Claus, an Unemployed Action leader and theater worker in New York. “Federal protections are desperately needed to strengthen unemployment insurance.”

This blog originally appeared at NELP on June 24, 2021. Reprinted with permission.

About the Author: NELP fights for policies to create good jobs, expand access to work, and strengthen protections and support for low-wage workers and the unemployed. 


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OVER 218,000 GEORGIANS TO LOSE ALL UNEMPLOYMENT ASSISTANCE WITHIN DAYS

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NEW ESTIMATE OF GEORGIA PEUC RECIPIENTS SHOWS OVER 114,000 LONG-TERM JOBLESS FACING COMPLETE AID CUTOFF JUNE 26

An estimated 218,434 Georgians will abruptly lose all unemployment assistance at the end of this week, according to a new analysis released today by the National Employment Law Project (NELP). That figure comprises 114,820 long-term unemployed workers currently receiving extended weeks of Pandemic Emergency Unemployment Compensation (PEUC), plus another 103,614 Georgians currently receiving Pandemic Unemployment Assistance (PUA) benefits.

All together, more than 347,000 people are receiving some form of jobless aid in Georgia, and nearly two in three will lose all aid when the state shuts off all federal pandemic unemployment payments on June 26th at the direction of Labor Commissioner Mark Butler and Governor Brian Kemp.

NELP’s analysis of the impact of states’ unilateral cutoffs of federally funded pandemic unemployment benefits includes a first-ever estimate of Georgia PEUC recipients facing the cutoff of those benefits.[1] Georgia is one of only two states that do not report this data to the U.S. Labor Department.

Additional data on the impact of Georgia’s unemployment aid cutoffs include the following:

  • Of the 347,422 people receiving unemployment payments in Georgia, 114,820 PEUC and 103,614 PUA recipients will be cut off completely, leaving them with no jobless aid at all.
  • Nearly two-thirds (62.9%) of unemployment recipients in Georgia will be cut off completely.
  • Of the 22 states ending all CARES Act pandemic unemployment programs early, Georgia (347,422) ranks second only to Texas (1,149,892) in the number of people affected.
  • Black, Latinx, and other people of color will be disproportionately affected by the cutoffs: a majority (51.8%) of state unemployment insurance recipients in Georgia are workers of color.

Nationally, more than 4.7 million people will be affected by the cutoffs of federal Pandemic Unemployment Compensation (FPUC), the weekly $300 supplement to all benefits; Pandemic Unemployment Assistance (PUA), the expanded program for self-employed, gig workers, and others excluded from regular state unemployment eligibility; and PEUC, the extended weeks for people whose regular state benefits run out.

  • Nationally, in the week ending May 29th, 76% of all unemployment recipients were PEUC or PUA benefit recipients.
  • In the 22 states ending all pandemic jobless aid early, 74.7% are PEUC or PUA recipients who will be cut off completely.

“The CARES Act’s pandemic unemployment programs continue to be a critical lifeline for millions of people looking for work in a changed economy still jolted by the pandemic,” said Rebecca Dixon, executive director of NELP. “The decision by Governor Kemp and Labor Commissioner Butler to abruptly end these family-sustaining payments is callous and downright cruel. These programs fill huge gaps in unemployment eligibility, benefit adequacy, and duration. They are helping families and communities—particularly Black workers and other people of color—weather an economic crisis that the U.S. is only beginning to emerge from. The success of these programs is clear proof that our unemployment insurance system is in dire need of comprehensive reform. Congress should make UI reform an urgent priority this year, and extend the pandemic aid programs for as long as people need them.”

This blog originally appeared at NELP on June 23, 2021. Reprinted with Permission.

About the Author: NELP fights for policies to create good jobs, expand access to work, and strengthen protections and support for low-wage workers and the unemployed. 


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One Way to Boost Workers and the Labor Movement? Give Unions Power Over Unemployment Insurance.

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Francisco Díez - Worker Justice Policy Advocate - Center for Popular  Democracy | LinkedIn

A reform from Belgium in the early 1900s would both increase unemployment insurance benefits and decrease the cost of labor organizing. It’s time for the U.S. to embrace it.

Despite keeping tens of millions of Americans afloat during the pandemic, expanded unemployment insurance (UI) only reached 41% of unemployed workers according to Professor Eliza Forsythe of the University of Illinois’ School of Labor and Employment Relations, and even among those who did receive it, many saw frequent delays and dangerous pauses in benefits. These issues underline the importance of addressing the program’s systemic flaws. 

“It took five weeks to get the next round of extended benefits. I was so behind on rent and basic bills, I had to pay late fees that accrued because it took so long. Now I can barely buy food,” said Sharon Corpening, an unemployed worker in Georgia and member of Unemployed Action, a grassroots campaign run through The Center for Popular Democracy (where I work). 

As pressure builds to reform the program for the first time in decades, one policy change could both dramatically improve benefit access for workers like Corpening and give a much-needed boost to the labor movement: Let unions help run the UI system. 

Unemployment insurance, if administered, managed or distributed by unions, could unleash a wave of union growth and dramatically improve access to benefits for millions of workers. Commonly called the ?“Ghent” system, after the city in Belgium where it was first developed as a form of union-led mutual aid in the early 1900s, these policies increase the expected benefits of unemployment insurance for workers and decrease the cost of organizing. The pandemic exposed the cracks in the U.S. unemployment system?—?and how desperately we need bold, new ideas like this. 

At least two legislative proposals to expand access to UI?—?one state-level effort in Maine and one coming out of the House of Representatives’ Ways and Means Committee?—?would, if enacted, begin to bring organized labor into the system and plant the seeds of an American Ghent system. 

UI currently leaves many workers uncovered, such as undocumented immigrants, unpaid caretakers and graduating students (re)entering the workforce. Most states’ weekly benefits are too low and the benefit periods too short to protect workers from crisis, whether it’s a financial downturn or a pandemic. The average benefit amount replaces about 40% of pre-layoff wages and some states like Florida provide just 12 weeks. Plus, benefits currently depend on ?“experience rating”: a funding mechanism that rewards employers who challenge employee unemployment claims with lower taxes. 

Meanwhile, the state-federal structure helps perpetuate racial disparities. States with higher relative Black populations have less generous benefits and more barriers to access those benefits, even though Black workers suffer twice the unemployment rate of their white counterparts. 

Those barriers, like limited benefits for low-wage workers and racist fraud detection systems, contribute to costly delays for countless workers of color, often leading to food insecurity and housing instability. 

The CARES Act and subsequent relief packages patched up some of the biggest holes in UI, supplementing and extending inadequate state benefit amounts, and covering independent contractors. Still, these patches did not address access limitations or the fundamental flaws of UI’s design. 

To increase access to unemployment benefits and build worker power, future reforms should include a benefits navigator program and government subsidized, union-led wage replacement funds. The federal government could implement these programs or states could lead on their own. Together, these programs would help establish an American Ghent system. 

The impacts of these programs?—?both the benefits navigators and the union-led funds?—?could transform labor relations in America. Union density in countries with Ghent programs, such as Finland and Belgium, hovers 20 percentage points higher on average above those without them. As Dylan Matthews writes at Vox, the Ghent system ?“is a key part of how Sweden, Denmark, Finland, and Belgium have achieved the highest union membership rates in the developed world.”

Here’s what it would look like to receive unemployment benefits under a navigator system: If you were a non-union worker, you could head to an office led by a coalition of unions and community organizations where you would talk to a navigator about your case. They would help you file the paperwork, ensure you quickly received your benefits and help advocate on your behalf. They might connect you to job opportunities and provide support for you as you reentered employment. 

This may sound familiar. The Affordable Care Act set up a benefits navigator program that successfully increased health insurance enrollment. In 2015, the navigators helped increase enrollment from 84.9% to 93.1% among low-income Americans, with larger gains among low-income Blacks and Latinos.

In a UI benefits navigator program, federal or state governments would provide grants to unions and community organizations to hire navigators in order to help unemployed workers receive benefits. As a result, unions would meet and interact with workers right before they enter a new workplace, while helping secure them the benefits they deserve. In the process, it would help tie organized labor to non-unionized unemployed workers. 

Navigators can boost workers’ benefits by expanding access to UI. Union workers are more than twice as likely to apply and receive benefits than non-union workers. Moreover, gaps in unemployment benefit access across racial groups drop from 32 percent to 9 percent while disparities across education levels largely disappear among union workers. Navigator programs would help expand these advantages to nonunion workers as well. 

More expansive positive effects would come from instituting government-backed, union-led wage replacement funds in addition to a navigator program. 

Under a full Ghent system, here’s how it would work: If you’re a non-union worker, you would be provided the basics of the navigator system described above, but would also get an entirely new set of benefits. For example, the union could provide a benefit to supplement your regular government UI benefit so that your total benefits could equal 90%, for instance, of your pre-layoff earnings. Plus, the union office could connect you to job retraining programs to help keep your skills sharp or even shift your career. If you were a union member, you could pay to keep your membership and you might receive extra benefits or services. For example, your wage replacement benefit might be slightly higher if you were a union member. 

In the United States, some workplaces organized by the United Auto Workers have generous supplemental unemployment benefits that members pay into and use when they become unemployed so that their total UI benefits better match their pre-layoff wages. A Ghent system would make similar programs universal, and provide greater governmental support. In Denmark, for example, participating in union-run UI remains technically optional, but about 85% of unemployed workers receive benefits, which is among the highest in industrialized countries.

The wage replacement funds would be owned and administered by unions but heavily subsidized by the government, and would either supplement or replace the existing UI system to better match pre-existing wages. The funds wouldn’t discriminate, would be voluntary, and would likely lead to high rates of participation in the program. 

By providing wage replacement funds, unions could give non-union workers easier access to much-needed benefits in times of crisis. Additionally, they would provide a clear incentive for these workers to join a union. State governments could set up the funds through new taxes like small employee-side payroll tax. (Currently, almost all unemployment insurance benefits are financed by employer payroll taxes.) They could also allow labor organizations to use these funds to provide additional benefits like job training. 

Such programs would almost assuredly be very popular. One recent survey from the Washington Center for Equitable Growth showed that union-led benefit funds and job training opportunities were some of the most popular labor law reform proposals. The workers surveyed also indicated they would be more likely to join a union if the union provided those benefits. Another survey from Data for Progress showed overwhelming support for benefits navigators.

These policies are not a panacea. Wage replacement funds would pose an administrative challenge in states with low-union density. Moreover, they cannot replace the militant organizing needed to revive the labor movement in the United States. Labor membership matters, but so does using labor power effectively through tactics like striking. Ghent-style policies do not aim to replace organizing but rather facilitate it by decreasing some of the costs and increasing the immediate benefits of doing so. They increase the access and contacts workers have to labor organizations, and vice-versa. 

While unions, grassroots groups and advocacy organizations fight for continued unemployment relief, many of them are pushing for an overhaul of UI. In mid-April, Sens. Ron Wyden (D?Ore.) and Michael Bennet (D?Colo.) released a discussion draft of a bill that would begin to address many of the flaws in the current UI system through federal standards to expand coverage, minimum benefit standards, and automatic stabilizers. At the end of May, the Biden administration included similar reforms in its 2022 budget draft.

Although these proposals don’t include any Ghent-inspired policies, other officials have put forward plans that would expand UI program access and facilitate labor organizing. 

In late April, Rep. Richard Neal (D?Mass.), Chairman of the House Ways and Means Committee, unveiled legislation called the Worker Information Network that includes a benefits navigator program for UI as well as paid leave and childcare. However, the plan allows for a variety of non-profit organizations to receive funding, not just labor organizations. Due to their budgetary nature, federal UI reforms, including Ghent policies, could likely pass through the Senate’s reconciliation process which would require just 50 votes in the Democratic-controlled chamber. On the state level, a coalition of labor and community organizations, including the Maine AFL-CIO, is championing UI reform that includes UI benefit navigators that could be deployed by either community or labor organizations. 

The Center for Popular Democracy’s Unemployed Action project members and many of its local partners developed a federal #FixUI platform that includes not just navigators, but greater union and community organization involvement in training and boosting benefits. The Center for American Progress’ David Madland has proposed both UI navigators and a Ghent system. While no international or national labor union is currently campaigning for a full Ghent system, some labor leaders, like David Rolf, president of SEIU 775 in Seattle, have expressed support for Ghent-style policies. 

Sharon Corpening, the worker in Georgia, said, ?“This pandemic widened the fissures that were already there. To patch them, we’re missing the voice of workers who have to receive the benefits, who are really not making it, even in the best of economic circumstances. Unemployment is broken beyond repair without a serious overhaul.”

The UI system’s weaknesses are now more apparent than at any point since the Great Recession. The best chance to reform unemployment insurance in decades is here. And with it, we have the chance to implement policies that could help give both the labor movement and workers?—?organized and not yet organized?—?the boost they badly need. 

The ideas put forward in this article represent the views of the author alone and not their employer.

This blog originally appeared at In These Times on June 23, 2021. Reprinted with permission.

About the Author: Francisco Diez is an organizer from Philadelphia and the Worker Justice Policy Advocate at The Center for Popular Democracy.


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There Is No Labor Shortage, Only Labor Exploitation

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Bio – Sonali Kolhatkar

Conservatives and corporate employers are weaving an insidious web of myths, lies and exaggerations to justify maintaining low-wage jobs.

For the past few months, Republicans have been waging a ferocious political battle to end federal unemployment benefits, based upon stated desires of saving the U.S. economy from a serious labor shortage. The logic, in the words of Republican politicians like Iowa Senator Joni Ernst, goes like this: “the government pays folks more to stay home than to go to work,” and therefore, “[p]aying people not to work is not helpful.” The conservative Wall Street Journal has been beating the drum for the same argument, saying recently that it was a “terrible blunder” to pay jobless benefits to unemployed workers.

If the hyperbolic claims are to be believed, one might imagine American workers are luxuriating in the largesse of taxpayer-funded payments, thumbing their noses at the earnest “job creators” who are taking far more seriously the importance of a post-pandemic economic growth spurt.

It is true that there are currently millions of jobs going unfilled. The U.S. Bureau of Labor Statistics just released statistics showing that there were 9.3 million job openings in April and that the percentage of layoffs decreased while resignations increased. Taking these statistics at face value, one could conclude this means there is a labor shortage.

But, as economist Heidi Shierholz explained in a New York Times op-ed, there is only a labor shortage if employers raise wages to match worker demands and subsequently still face a shortage of workers. Shierholz wrote, “When those measures [of raising wages] don’t result in a substantial increase in workers, that’s a labor shortage. Absent that dynamic, you can rest easy.”

Remember the subprime mortgage housing crisis of 2008 when economists and pundits blamed low-income homeowners for wanting to purchase homes they could not afford? Perhaps this is the labor market’s way of saying, if you can’t afford higher salaries, you shouldn’t expect to fill jobs.

Or, to use the logic of another accepted capitalist argument, employers could liken the job market to the surge pricing practices of ride-share companies like Uber and Lyft. After consumers complained about hiked-up prices for rides during rush hour, Uber explained, “With surge pricing, Uber rates increase to get more cars on the road and ensure reliability during the busiest times. When enough cars are on the road, prices go back down to normal levels.” Applying this logic to the labor market, workers might be saying to employers: “When enough dollars are being offered in wages, the number of job openings will go back down to normal levels.” In other words, workers are surge-pricing the cost of their labor.

But corporate elites are loudly complaining that the sky is falling—not because of a real labor shortage, but because workers are less likely now to accept low-wage jobs. The U.S. Chamber of Commerce insists that “[t]he worker shortage is real,” and that it has risen to the level of a “national economic emergency” that “poses an imminent threat to our fragile recovery and America’s great resurgence.” In the Chamber’s worldview, workers, not corporate employers who refuse to pay better, are the main obstacle to the U.S.’s economic recovery.

Longtime labor organizer and senior scholar with the Institute for Policy Studies Bill Fletcher Jr. explained to me in an email interview that claims of a labor shortage are an exaggeration and that, actually, “we suffered a minor depression and not another great recession,” as a result of the coronavirus pandemic. In Fletcher’s view, “The so-called labor shortage needs to be understood as the result of tremendous employment reorganization, including the collapse of industries and companies.”

Furthermore, according to Fletcher, the purveyors of the “labor shortage” myth are not accounting for “the collapse of daycare and the impact on women and families, and a continued fear associated with the pandemic.”

He’s right. As one analyst put it, “The rotten seed of America’s disinvestment in child care has finally sprouted.” Such factors have received little attention by the purveyors of the labor shortage myth—perhaps because acknowledging real obstacles like care work requires thinking of workers as real human beings rather than cogs in a capitalist machine.

Indeed, economists and analysts have gotten used to presenting facts from the perspective of private employers and their lobbyists. The American public is expected to sympathize more with the plight of wealthy business owners who can’t find workers to fill their low-paid positions, instead of with unemployed workers who might be struggling to make ends meet.

Already, jobless benefits were slashed to appallingly low levels after Republicans reduced a $600-a-week payment authorized by the CARES Act to a mere $300 a week, which works out to $7.50 an hour for full-time work. If companies cannot compete with this exceedingly paltry sum, their position is akin to a customer demanding to a car salesperson that they have the right to buy a vehicle for a below-market-value sticker price (again, capitalist logic is a worthwhile exercise to showcase the ludicrousness of how lawmakers and their corporate beneficiaries are responding to the state of the labor market).

Remarkably, although federal jobless benefits are funded through September 2021, more than two dozen Republican-run states are choosing to end them earlier. Not only will this impact the bottom line for millions of people struggling to make ends meet, but it will also undermine the stimulus impact that this federal aid has on the economies of states when jobless workers spend their federal dollars on necessities. Conservatives are essentially engaged in an ideological battle over government benefits, which, in their view, are always wrong unless they are going to the already privileged (remember the GOP’s 2017 tax cuts for corporations and the wealthy?).

The GOP has thumbed its nose at federal benefits for residents before. In order to underscore their ideological opposition to the Affordable Care Act, recall how Republican governors eschewed billions of federal dollars to fund Medicaid expansion. These conservative ideologues chose to let their own voters suffer the consequences of turning down federal aid in service of their political opposition to Obamacare. And they’re doing the same thing now.

At the same time as headlines are screaming about a catastrophic worker shortage that could undermine the economy, stories abound of how American billionaires paid peanuts in income taxes according to newly released documents, even as their wealth multiplied to extraordinary levels. The obscenely wealthy are spending their mountains of cash on luxury goods and fulfilling childish fantasies of space travel. The juxtaposition of such a phenomenon alongside the conservative claim that jobless benefits are too generous is evidence that we are indeed in a “national economic emergency”—just not of the sort that the U.S. Chamber of Commerce wants us to believe.

West Virginia’s Republican Governor Jim Justice justified ending federal jobless benefits early in his state by lecturing his residents on how, “America is all about work. That’s what has made this great country.” Interestingly, Justice owns a resort that couldn’t find enough low-wage workers to fill jobs. Notwithstanding a clear conflict of interest in cutting jobless benefits, the Republican politician is now enjoying the fruits of his own political actions as his resort reports greater ease in filling positions with desperate workers whose lifeline he cut off.

When lawmakers earlier this year debated the Raise the Wage Act, which would have increased the federal minimum wage, Republicans wagged their fingers in warning, saying higher wages would put companies out of business. Opponents of that failed bill claimed that if forced to pay $15 an hour, employers would hire fewer people, close branches, or perhaps shut down altogether, which we were told would ultimately hurt workers.

Now, we are being told another story: that companies actually do need workers and won’t simply reduce jobs, close branches, or shut down and that the government therefore needs to stop competing with their ultra-low wages to save the economy. The claim that businesses would no longer be profitable if they are forced to increase wages is undermined by one multibillion-dollar fact: corporations are raking in record-high profits and doling them out to shareholders and executives. They can indeed afford to offer greater pay, and when they do, it turns out there is no labor shortage.

American workers are at a critically important juncture at this moment. Corporate employers seem to be approaching a limit of how far they can push workers to accept poverty-level jobs. According to Fletcher, “This moment provides opportunities to raise wage demands, but it must be a moment where workers organize in order to sustain and pursue demands for improvements in their living and working conditions.”

This blog originally appeared at Independent Media Institute on , June 11, 2021. Reprinted with permission.

About the Author: Sonali Kolhatkar is the founder, host and executive producer of “Rising Up With Sonali,” a television and radio show that airs on Free Speech TV and Pacifica stations. She is a writing fellow for the Economy for All project at the Independent Media Institute.


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HISTORIC FIX TO NEW YORK’S PART-TIME UNEMPLOYMENT SYSTEM A WIN FOR WORKERS; BOOSTS NEW YORK’S ECONOMIC RECOVERY BY ENCOURAGING RETURN TO WORK

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NEW YORK, June 10, 2021 (GLOBE NEWSWIRE) — This week, New York’s legislature and Governor Cuomo announced a historic deal to fix the state’s worst-in-the-nation unemployment insurance rules for part-time work that were disproportionately hurting low-and-moderate income workers, especially Black and Brown workers, and holding back New York’s economic recovery. Senator Jessica Ramos and Assemblymember Al Stirpe championed this long overdue reform.

Unlike in virtually all other states, New York’s unemployment insurance rules arbitrarily and sharply reduce an individual’s benefits when they return to work part-time a few hours a day spread over several days. The poorly designed policy unduly complicates decision-making by employers and workers considering a partial return to work, hurting hundreds of thousands of part-time workers across the state.

The new pair of measures (S7148 and S1042), collectively revamp New York’s partial unemployment system so that it reduces benefits based on earnings the worker receives from part-time employment, rather than the arbitrary days-worked approach. Currently, the system disincentivizes part-time work by taking away almost all unemployment benefits when a person works just a few hours per week spread out over three or four days.

The new law also establishes an earnings disregard equal to one-half of a worker’s weekly UI benefit. It puts New York on a par with its five neighboring states and a total of thirteen states nationally and the District of Columbia, which all provide for comparable or more generous partial unemployment benefits. The reform especially reduces the heavy burden on part-time workers whose hours are spread over three or four days per week.

In addition, the law requires New York State’s Department of Labor to implement an immediate interim fix by allowing workers to work up to 10 hours a week without reduction in part-time unemployment benefits, up from the current 4 hours. The full reforms implemented in the new law are scheduled to take effect by April 2022.

This historic reform is a meaningful step for New York economic recovery and for the 600,000 workers who currently receive part-time unemployment benefits. More than two-thirds of recipients come from low-and moderate-income industries including accommodations, food services, healthcare, social assistance, and retail and more than half are workers in Black and Brown communities.

“Making critical updates to New York State’s antiquated Partial Unemployment Insurance system is a huge win for working families across our state. By changing the way we calculate eligibility we are ensuring New Yorkers who are working part-time or being called back to work at reduced hours can do so knowing that they will be able to provide for their families no matter how many days and hours of work they are offered each week,” said State Senator Jessica Ramos, the bill’s Senate sponsor.

“For far too long, New York’s unemployment insurance benefits wrongfully penalized claimants seeking part-time work,” said Assemblymember Al Stirpe, the bill’s Assembly sponsor. “These arbitrary regulations have made it incredibly difficult for many part-time workers to make ends meet. After the significant challenges of the pandemic, our state should not have a system with a disincentive to part-time work built in. Instead we should have a system that helps our families get back on their feet and encourages economic recovery and growth.”

“Central to New York’s recovery is getting people back to work,” said Senate Majority Leader Andrea Stewart-Cousins. “Expanding and increasing part-time unemployment insurance benefits will encourage New Yorkers to seek out and secure meaningful part-time work, while ensuring their income is supplemented appropriately to help them get back on their feet. This legislation passed by the New York State Senate Majority stands up for working-class New Yorkers whose hours were cut due to the pandemic or who were left unemployed and will help them in returning to the workforce. I thank Senator Jessica Ramos and Assemblymember Al Stirpe for championing this critical legislation, which will support New York’s economic recovery.”

“My colleagues and I in the Assembly Majority believe in putting New York families first and we know that unemployment benefits are a lifeline for families, especially during this health and economic crisis,” said Assembly Speaker Carl Heastie. “Many workers have faced a reduction in their hours or are only able to find part-time work, and this legislation ensures that they can take that work without losing their unemployment benefits. This change is critical as families and businesses work to get back on their feet. I would also like to thank Assemblymember Al Stirpe for commitment to getting this bill across the finish line.”

“Throughout the pandemic, New York’s stingy partial unemployment rule has been denying urgently needed benefits to workers whose hours have been cut — and now that the pandemic is easing it’s punishing workers who return to work part-time. NELP thanks Senator Ramos, Assemblymember Stirpe, and the legislative leadership for championing this long overdue common-sense reform, and Governor Cuomo for supporting it,” said Paul Sonn, State Policy Program Director at the National Employment Law Project.

“Our research makes it clear that the reform will benefit both the unemployed, incentivizing them to take on part-time work and moderately increase their total income, and employers and the economy overall, supporting a return to work that helps businesses and allows workers to keep their skills current and mitigating the adverse effects of prolonged periods of high unemployment,” said James Parrott, Director of Economic and Fiscal Policies at the Center for New York City Affairs at The New School.

“With the passage of this legislation, New York State moves from one of the worst to one of the best states for part-time workers supporting the most vulnerable and essential workers in our economy. This new system allows more part-time workers to collect unemployment at a time when they need it the most,” said Nicole Salk, Senior Staff Attorney, Legal Services NYC.

“New York has transformed an outdated and unfair part-time Unemployment Insurance system to the benefit of our clients and all hard-working New Yorkers who will no longer be penalized for obtaining part-time work. We applaud State Senator Ramos and Assemblymember Stirpe for their leadership on this important reform,” said Young Lee, Director of the Employment Law Unit at The Legal Aid Society of NYC.

“With the majority of partially unemployed workers being low and moderate income workers who are disproportionately people of color, this long overdue reform to the unemployment insurance system will help reduce material hardship for people who want to return to work. We are grateful for the leadership demonstrated by Senator Ramos, Assemblymember Stirpe, and the Governor in making this vital reform a reality,” said Jason Cone, Chief Public Policy Officer of Robin Hood.

“We are proud to be part of the coalition that fought for and won big improvements for New York’s unemployed workers,” said Stuart Appelbaum, President of the Retail, Wholesale and Department Store Union (RWDSU). “Many non-essential retail workers were laid off during the pandemic and are returning to what are now part-time jobs. These workers and countless others will now be able to return to work part-time without losing their entire unemployment benefit. As a result of the leadership of Senator Ramos and Assemblymember Stirpe, New York will have a faster economic recovery from the pandemic and tens of thousands of unemployed workers will be able to get back to work and still provide for their families.”

“As a statewide legal services organization, we handle many cases where a worker inadvertently loses all of their benefits simply by working a few extra hours.  The effect of the cliff is devastating and unfair. We applaud Senator Ramos, Assemblymember Stirpe and the Governor for implementing this historic reform,” said Kristin Brown, President and CEO of the Empire Justice Center.  

“This historic legislation will benefit thousands of New Yorkers who seek to sustain themselves during this time of economic uncertainty, while also creating a more economically just unemployment system for the future. NCLEJ applauds Senator Ramos and Assemblymember Stirpe for supporting low-wage workers and passing this bill,” said Jarron McAllister, Penn Law Fellow at the National Center for Law and Economic Justice.

“As an organizing project centered around the impacts of COVID, we believe that passing this bill will greatly improve New York State’s recovery, including getting people back to work. We thank Senator Ramos, Assemblymember Stirpe, and all of the legislative leadership for their work on this bill and for Governor Cuomo for signing it,” said Paul Getsos, Project Director of United Together Stronger Tomorrow.

This blog originally appeared at Nelp on June 10, 2021. Reprinted with Permission.

About the Author: For 50 years, NELP has sought to ensure that America upholds, for all workers, the promise of opportunity and economic security through work. NELP fights for policies to create good jobs, expand access to work, and strengthen protections and support for low-wage workers and unemployed workers.


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IN 21 STATES ENDING ALL PANDEMIC UI PROGRAMS EARLY, 3 IN 4 WILL LOSE ALL JOBLESS AID

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Nearly 4 Million Workers to Lose Lifeline Unemployment Payments Starting June 12

NATIONWIDE — In the 21 states ending early their participation in all federal pandemic unemployment programs, three quarters of the workers now receiving jobless aid—nearly 2.3 million people—will be left with no state or federal jobless aid at all, according to a new analysis released today by the National Employment Law Project (NELP).

The greatest numbers of workers affected by the pandemic unemployment cutoffs will be in Texas, Ohio, Maryland, Georgia, Indiana, Arizona, Tennessee, Missouri, South Carolina, and Florida. In Texas, a staggering four in five workers (81.9%) currently receiving unemployment payments—totaling 1.2 million workers, 59.3% of whom are workers of color—will lose all unemployment income support.

“The post-pandemic recovery has barely started. Employment remains far below pre-pandemic levels. Millions of people are still out of work and need the income support from unemployment insurance to get by,” said Rebecca Dixon, executive director of the National Employment Law Project. “So it’s unconscionable that these 21 Republican governors have unilaterally decided that no one in their state needs any pandemic jobless aid anymore and that it’s OK to pull the plug on these programs early.”

“This severe, abrupt, and ill-advised cutoff of pandemic jobless aid hurts the workers and families who need that income support, harms the small businesses that depend on those workers to spend money as customers, and will set back the economic recovery in those states,” added Dixon.

The first wave of premature cutoffs begins on Saturday, June 12, in four states: Alaska, Iowa, Mississippi, and Missouri. Alaska will be ending only the $300 Federal Pandemic Unemployment Compensation (FPUC) weekly supplemental payments, while the other three states will be terminating all pandemic unemployment programs. Twenty-one more states will follow suit through June and early July, although NELP has argued that the U.S. Department of Labor has legal authority to ensure that all eligible workers continue to receive Pandemic Unemployment Assistance (PUA) benefits through September 6.

More than 3.9 million workers in 25 states will lose the weekly $300 FPUC payments. Workers of color will bear the brunt, as nearly half (over 46%) of unemployment insurance (UI) recipients in those states are Black, Latinx, Indigenous, and other people of color.

Workers losing out on lifeline payments will face an economy that is far from fully recovered. The May jobs report showed 9.3 million people unemployed, with another 5.3 million only working part-time but still seeking full-time work. The economy is down 7.6 million jobs (5%) from pre-pandemic Feb. 2020 levels. With families still reeling from loss, lack of childcare, and ever-present concerns about getting sick on the job, FPUC and all UI funds remain a crucial lifeline.

“The past year has demanded bold solutions to unprecedented levels of unemployment, with the additional federal unemployment funds serving as a necessary stopgap in lieu of structural reform. At this pivotal moment, elected officials need to get behind critical reforms to prevent future failures of our unemployment system, so we can avoid the type of harmful actions we’re now seeing at the state level,” said Dixon.

Federal pandemic programs are still helping millions of people and their families get through the worst economic crisis in over a century. For jobless workers and their families in states where Republican governors have opted out, the ramifications will be far-reaching:

  • Over 3.9 million workers will lose the weekly $300 FPUC supplement in the 25 states.
  • 3,951,578 people receiving unemployment payments as of May 15 will be affected—all of them losing the $300 weekly FPUC benefit supplement and more than half (57.5%) abruptly losing all unemployment benefits.
  • In the 21 states ending participation in all of the pandemic programs, nearly 2.3 million people, who represent 74.5% of those receiving unemployment benefits in those states, will be left with no state or federal unemployment aid at all.
  • Black, Latinx, Indigenous, and other people of color are nearly half (over 46%) of UI recipients in the states ending pandemic unemployment programs early.
  • Of the 25 states cutting pandemic unemployment payments, 11 of them have 40% or higher people-of-color UI recipients, and eight have 50% or higher.

With unemployed people spending money at higher rates, federal assistance helps stimulate the economy just as businesses and industries begin to reopen, in addition to keeping families afloat. States that are prematurely ending federal pandemic unemployment programs threaten to stymie a fuller recovery.

READ THE DATA BRIEF:
3.9 Million Workers Face Premature Cutoff of Pandemic Unemployment Programs

This blog originally appeared at Nelp on June 8, 2021. Reprinted with Permission.

About the Author: For 50 years, NELP has sought to ensure that America upholds, for all workers, the promise of opportunity and economic security through work. NELP fights for policies to create good jobs, expand access to work, and strengthen protections and support for low-wage workers and unemployed workers.


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