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America’s vanishing workforce

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Federal and state officials, who spent the last year trying to keep Americans safe in their homes during the pandemic, are suddenly grappling with the opposite problem: how to lure them back to work.

At least 14 states, including North Dakota, Alabama and South Carolina, have moved to cut off enhanced federal jobless benefits that were supposed to last until September. Florida is among roughly 30 states reinstating a requirement that the unemployed prove they are looking for work to receive state benefits. Montana is offering return-to-work bonuses to unemployment recipients who accept a job offer. Amazon, McDonald’s and Chipotle are hiking wages, as is Tyson Foods, which will also start allowing more flexible work schedules.

And President Joe Biden is emphasizing the need for workers to accept new job offers even as the factors that have been keeping them on the sidelines — scarce childcare options, elevated health concerns and generous federal unemployment aid — remain in place.

“It’s time to get back to work,” Idaho Republican Gov. Brad Little said Tuesday while announcing that his state would be ending federal unemployment benefits. “We do not want people on unemployment. We want people working. A strong economy cannot exist without workers returning to a job.”

The flurry of activity underscores the rising concern that the economic recovery could be jeopardized even as lockdown restrictions are lifted if restaurants, travel companies and other businesses are unable to hire enough staff to keep up with surging consumer demand.

Fears of a labor shortage have been fed by government data that showed employers added 266,000 jobs in April, falling far short of the roughly 1 million that many economists had forecast.

While economists warn against jumping to conclusions based on one month of data, a second survey released Tuesday showed there were a record 8.1 million job openings available going into April. And there were fewer hires per job opening that month than at any time since the series began in 2001, said Jed Kolko, the chief economist at the job-search site Indeed. That’s fueling the suspicion that a shortage of workers is holding employers back.

The difficulty in hiring workers has prompted some of the country’s largest employers to increase pay. McDonald’s announced Thursday it would raise wages for more than 36,500 hourly workers by an average of 10 percent over the next several months. Amazon said it will hike wages by up to $3 an hour for more than half a million of its U.S. employees.

But the conversation over how to boost hiring has focused primarily on the enhanced unemployment benefits, which Republicans say are overly generous and give people an incentive to stay home.

The benefits currently supply an extra $300 per week in federal money on top of state jobless aid, which varies among states but averages more than $300 a week.

More states are expected to follow those that have cut off the federal benefits. And GOP lawmakers in Washington are pushing legislation to overhaul the federal aid: Nine Republicans this week introduced a bill to cut the benefits in half by the end of the month and phase them out entirely by the end of June. Sen. Ben Sasse (R-Neb.) is rolling out legislation that would convert the last two months of extra unemployment benefits into a signing bonus for any worker who gets a job by July 4.

“We’ve been warning about this predictable crisis for a year now,” Sasse said in a statement. “Americans want to work, but the federal government is paying more for unemployment than for work. Well-meaning but stupidly designed policy is holding Main Street back.”

Senate Democrats also signaled this week that they are unlikely to support extending the enhanced benefits beyond the program’s current September expiration date if the economy continues to recover.

At the same time, economists caution that the benefit of cutting off the extra jobless aid early would be limited and could hurt those who truly need it, while also forcing people into jobs that aren’t a good fit and don’t work out long-term. Mark Zandi, chief economist at Moody’s Analytics, said the motivating effect of ending the aid would only be “on the margin.”

“You’re obviously hurting people who really need the UI, but you’re only going to get a few people back to work,” Zandi said. “Net-net, I think it’s a mistake.”

Andrew Stettner, a senior fellow at the left-leaning Century Foundation, said, “There is simply no economic evidence that pandemic unemployment aid is holding back job creation.” Stettner highlighted weekly jobless claims data to show that more than 1 million workers have already gotten off unemployment rolls since early March — moves made before GOP governors began cutting off their federal benefits.

The Labor Department said Thursday that 473,000 people filed initial claims for jobless benefits in the week ending May 8, down 34,000 from the previous week and the lowest since the pandemic began.

While Biden administration officials and most economists acknowledge that the unemployment aid is probably one reason for the slow pace of hiring in April, they say a combination of lingering health concerns, lack of child care and workers being choosier about their job choices is also likely to blame.

“The biggest issue is that you’ve got several moms and dads that are home that had been working, but have to be home to take care of their kids,” said Zandi. “Certainly when schools reopen in person, these parents ought to be able to get back to work and really fill in a lot of these open positions.”

Other elements that could be contributing to slower rehires can be harder to track through official data: a heightened level of early retirements, for example, by baby boomers who quit their jobs at the start of the pandemic and aren’t planning to return. A huge number of people are also switching jobs and sometimes industries, and in those cases it can take longer for an employee to match with a new employer.

One in three people who said they were working in February 2020 are no longer with the same employer as they were then, according to Adam Blandin, an economist with Virginia Commonwealth University who co-created the Real-Time Population Survey.

“When there’s that amount of reallocation, that could be one more source that’s contributing to a little bit slower recovery,” Blandin said. “Because employers are looking for people who may have moved on, and people who are trying to move on are trying to figure out where to go next.”

The amalgamation of factors means that some of the steps being proposed to reverse the trend, like paying out a return-to-work bonus, will likely have little benefit if they only address one of the problems keeping people at home.

“If the issue is solely money, maybe a return to work bonus is going to help,” said AnnElizabeth Konkel, an economist at Indeed Hiring Lab. “If the issue is childcare, that a single mom simply cannot find a childcare facility, maybe schools are not open yet in a particular area … In that case, a return-to-work bonus isn’t going to have any impact.”

The White House is looking to take a multi-step approach to boost hiring, all while dismissing the idea that the enhanced unemployment benefits included as part of Biden’s American Rescue Plan are a major reason people are staying at home.

The bulk of the administration’s approach centers on doling out aid that was already allocated under the rescue plan, in part by setting up a process for state and local governments to apply for funding that could help boost public-sector hiring and sending relief checks to 16,000 restaurants and bars. The White House also released guidance this week to help states use rescue plan funds to aid childcare centers in reopening and give families subsidies to afford them.

On unemployment specifically, the administration is working to help states reimpose their work-search requirements for accepting unemployment benefits and highlighting programs already in place that would allow workers to take part-time job offers while continuing to collect some jobless aid. Biden himself also called on employers to help distribute vaccines and pay decent wages, saying both steps would help get people back to work.

And, in direct response to concerns that generous unemployment benefits are keeping Americans from returning to work, the administration is emphasizing a central rule surrounding the aid that is already on the books — that no one can turn down a reasonable job offer without losing their jobless aid.

“We’re going to make it clear that anyone collecting unemployment who is offered a suitable job must take the job or lose their unemployment benefits,” Biden said at the White House on Monday. “That’s the law.”

This blog originally appeared at Politico on May 15, 2021. Reprinted with permission.

About the Author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign. It was in that role that she first began covering trade, including Donald Trump’s rise as the populist candidate vowing to renegotiate NAFTA and Hillary Clinton’s careful sidestep of the Trans-Pacific Partnership.

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


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12 Things We’ve Learned About the GOP Tax Bill

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President Donald Trump and congressional Republicans rushed to pass the 2017 Tax Cuts and Jobs Act in December 2017, leaving very little time for public scrutiny or debate. Here are a few things we have learned since the GOP tax bill passed.

1. It Will Encourage Outsourcing: An April 2018 report by the nonpartisan Congressional Budget Office confirms that two “provisions [of the GOP tax bill] may increase corporations’ incentive to locate tangible assets abroad.”

2. It Has Not Boosted Corporate Investment: The rate of investment growth has stayed pretty much the same as before the GOP tax bill passed.

3. Few Workers Are Benefiting: Only 4.3% of workers are getting a one-time bonus or wage increase this year, according to Americans for Tax Fairness.

4. Corporations Are Keeping the Windfall: Americans for Tax Fairness calculates that corporations are receiving nine times as much in tax cuts as they are giving to workers in one-time bonuses and wage increases.

5. Corporations Are Using the Windfall to Buy Back Stocks: Corporations are spending 37 times as much on stock buybacks, which overwhelmingly benefit the wealthy, as on one-time bonuses and wage increases for workers, according to Americans for Tax Fairness.

6. Corporations Are Laying Off Workers: Americans for Tax Fairness calculates that 183 private-sector businesses have announced 94,296 layoffs since Congress passed the tax bill.

7. It Costs More Than We Thought: The GOP tax bill will eventually cost $1.9 trillion by 2028, according to an April 2018 report by the nonpartisan Congressional Budget Office. And we know some Republicanswill call for cuts to Medicare, Medicaid and Social Security to pay for it.

8. We’ve Fallen Behind When It Comes to Corporate Tax Revenue: Thanks to the GOP tax bill, corporate tax revenue (as a share of the economy) will be lower in the United States than in any other developed country, according to an April 2018 report by the Institute on Taxation and Economic Policy.

9. Extending the Individual Tax Cuts Would Benefit the Wealthy: The GOP tax bill’s temporary tax cuts for individuals expires by 2025, and some Republicans are now proposing to extend them.  An April 2018 report by the Institute on Taxation and Economic Policy shows that 61% of the benefit from these extending individual tax cuts would go to the richest one-fifth of taxpayers.

10. It Is Shoddy Work: In March 2018, a leading tax expert concluded that the GOP tax bill’s new rules for pass-through businesses “achieved a rare and unenviable trifecta, by making the tax system less efficient, less fair and more complicated. It lacked any coherent (or even clearly articulated) underlying principle, was shoddily executed and ought to be promptly repealed.”

11. It Is Still Unpopular: The GOP tax bill polls poorly, with a clear majority disapproving.

12. The Outsourcing Incentives Can Be Fixed: In February 2018, Sen. Sheldon Whitehouse (D-R.I.) and Rep. Lloyd Doggett (D-Texas) introduced the No Tax Breaks for Outsourcing Act, which would eliminate the GOP tax bill’s incentives for outsourcing by equalizing tax rates on domestic profits and foreign profits.


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AFL-CIO Joins CWA Call for $4,000 Wage Increase for Working People

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The Donald Trump administration repeatedly has claimed that its tax bill would result in a $4,000 wage increase for working people. Today, the AFL-CIO has joined a campaign by the Communications Workers of America (CWA) to demand corporations guarantee this raise in writing. The labor federation is rallying the power of its 12.5 million members and the entire union movement to support this campaign in every industry.

AFL-CIO President Richard Trumka said:

CWA has inspired an innovative movement to demand working people get our fair share and expose the scam that is the Republican tax bill. Working people have heard the same old lies about the benefits of economic policies written by and for greedy corporations for too long. This campaign is about holding corporations and politicians accountable to their claims and getting a much-needed raise for America’s workers.

On Nov. 20, CWA sent a letter to its major employers, including AT&T, Verizon, General Electric Co., American Airlines and NBC Universal, calling on them to commit to that raise in writing. In joining the CWA’s efforts, the AFL-CIO is encouraging all unions from all sectors to join in by reaching out to their employers and encouraging all working people to sign a petition that puts employers on notice that they will be held accountable if the Republican tax bill becomes law. 

In a powerful op-ed, CWA President Christopher Shelton laid out how the Republican tax scam would hurt working people and increase the deficit by more than $1 trillion:

Republicans are on the brink of passing a massive tax overhaul, and it’s looking like the biggest con of the Trump era so far. And that’s saying a lot.

The legislation being jammed through by the House and Senate Republicans is a tax giveaway to corporations and the richest 1 percent, paid for by working and middle-income families.

Across the board, working people will be hurt by this plan, whether by the new incentives to corporations to send U.S. jobs overseas, the loss of the medical expense deduction, new taxes imposed on education benefits, the inability to deduct interest on student loans, the loss of state and local tax deductions, or the forced budget cuts to Medicare, transportation, health care and other critical programs.

Despite the double-talk from Republicans anxious to sell this plan, it’s not hard to figure out who Republicans really want to help. Why else would tax cuts for corporations and tax changes that benefit the wealthiest Americans—like the estate tax—be permanent, while individual tax cuts for middle-income families are only temporary?…

Working people know better than to believe the boss’ promises unless they are in writing. That’s why my union has asked some of our biggest employers to sign an agreement that says if the tax plan passes, working people will get their $4,000.

This blog was originally published by the AFL-CIO on December 12, 2017. Reprinted with permission. 


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Food Workers Take On Fowl Play at Tyson—And Win Better Conditions

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A consumer pressure campaign against labor abuses in the chicken-processing industry has produced some initial results, with a detailed pledge this week from Tyson Foods to build a better workplace for its 95,000 employees.

The campaign, led by the famed hunger-fighting group Oxfam America, is challenging Tyson and three other large chicken producers to improve on their collective record of chronic worker safety problems, poverty-level wages and anti-union attitudes. It was launched in late 2015 with the help of a coalition of like-minded groups, including the United Food and Commercial Workers (UFCW) union. Tyson’s pledge is the campaign’s first visible success.

An announcement from Tyson executive Noel White carefully avoided the language of labor rights and emphasized, instead, “investing in sustainability … to create a beneficial cycle of contributing to the future.” Nevertheless, the pledge promises some real improvements in the lives of workers on the shop floor, including:

  • Improving workplace health and safety with a commitment to achieving a 15 percent year-over-year reduction in worker injuries and illnesses;
  • Committing to a goal of zero turnover, striving for a 10 percent year-over-year improvement company-wide in worker retention;
  • Hiring 25 or more poultry plant safety trainers, adding to about 300 trainers and training coordinators the company has hired since 2015;
  • Broadening a pilot compensation program at two poultry plants aimed at increasing base wages and shortening the time it takes new workers to move to higher wage rates;
  • Making public the results of third-party social compliance audits of Tyson plants;
  • Improving and expanding other existing company-wide programs for worker health and well-being.

“Tyson Foods’ commitment to worker safety and worker rights should not just be applauded—it should serve as a model for the rest of the industry,” said Marc Perrone, president of UFCW. “Through our ongoing partnership with Tyson Foods, we have already made valuable progress. We look forward to these new and expanded initiatives.”

Oxfam campaign chief Minor Sinclair echoed Perrone’s call that other chicken producers adopt Tyson’s approach. The three other companies targeted by Oxfam—Pilgrim’s Pride, Perdue and Sanderson Farms—have thus far refused to engage with the Oxfam-led coalition, Sinclair tells In These Times. The three are now “lagging behind” in their treatment of workers and their sensitivity to the concerns of consumers, he says.

Sinclair credited other organizations in the “Big Chicken” coalition for the initial breakthrough with Tyson. In addition to UFCW, other prominent members include the National Association for the Advancement of Colored People (NAACP), the Southern Poverty Law Center and the Northwest Arkansas Workers’ Justice Center. Even the U.S. Department of Labor has supported the safety goals of the coalition, he says.

Tyson itself has only recently had a change of heart about the Oxfam campaign, Sinclair continues. For the first year or so, Tyson typically ignored Oxfam and its allies. “For many months we felt stonewalled.” But a change came in late 2016, he says, at about the same time Tyson named Tom Hayes as the new chief executive.

“I can’t really say the exact reason that Tyson changed its attitude, but I don’t think it is a coincidence,” Sinclair said about the change in leadership.

UFCW is the largest union at Tyson, representing about 24,000 of its hourly workers, says company spokesman Gary Mickelson. There is some unionization at 30 of the company’s 100 U.S. food-product plants, he says, with a handful of other unions representing an additional 5,000 employees.

One of the other union is the UFCW-affiliated Retail, Wholesale and Department Store Union (RWDSU). Randy Hadley, a RWDSU organizer, tells In These Times he hopes to see results from Tyson’s pledges soon. A cavalier approach to worker safety has characterized the meat industry for decades, he says, and improvements are long overdue.

“I hope this isn’t just a bunch of PR nonsense,” he says.

RWDSU, which represents Tyson workers in one of the Alabama chicken plants, has seen an increased emphasis on safety recently, according to Hadley.

“We have seen an increase in the number of safety meetings and safety training sessions,” he says, “so I’ll give them credit for that.”

Language barriers are the biggest obstacle to effective safety training, Hadley adds, because Tyson recruits a lot of new immigrants, including political refugees from the Middle East and other hot spots, to work in the chicken plants.

“We have another plant that we represent in Tennessee. When we print out our union literature, we do it in 17 different languages. And some of these folks can barely read, even in their own home language,” Hadley says.

As part of the new commitments announced this week by Tyson, the company pledged to expand its in-house program called “Upward Academy,” which offers courses in English as a Second Language (ESL) and other services aimed specifically at new immigrants.

This week’s announcement follows the company’s 2015 move to raise wages at most of its plants. At that time, Tyson said it would establish a new minimum of at least $10 an hour, up from $8 to $9 an hour. Top labor rates for certain skilled maintenance jobs were to be raised to as high as $26 an hour at the same time.

This blog originally appeared at Inthesetimes.com on April 28, 2017. Reprinted with permission.

Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.


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Thanks to Obama, immigrants are getting better jobs

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The vast majority of undocumented immigrants who have been given the temporary ability to legally work in the United States are currently employed or attending school—helping them make “significant contributions” to various labor markets—according to a national survey released Tuesday by immigrant advocacy groups.

The survey took a look at 1,308 people who received legal work authorization and deportation relief through the Deferred Action for Childhood Arrivals (DACA) initiative, an 2012 executive action from the Obama administration aimed at assisting undocumented immigrants who grew up here in the United States.

According to the report, 95 percent of survey respondents are currently employed or enrolled in school. And nearly two-thirds of them reported receiving better pay under DACA, with almost half saying they found a job that “better fits my education and training.” Others said they now have a job with better working conditions.

The report also found that DACA recipients have gone into industries like educational and health services, nonprofit work, wholesale and retail trade, and professional and business services. Close to 6 percent of respondents started their own businesses—twice as high as the entrepreneur rate among the general American public.

The impact of DACA recipients on the U.S. economy has been enormous. Average hourly wages for DACA recipients have gone up by 42 percent, roughly an increase from $9.83 per hour to $13.96 per hour, according to the survey. More than half of all respondents said they recently purchased their first car, while 12 percent purchased their first home.

“These large purchases [of vehicles] matter for state revenue, as most states collect between 3 percent and 6 percent of the purchase price in sales tax, along with additional registration and title fees,” study authors wrote. “The added revenue for states comes in addition to the safety benefits of having more licensed and insured drivers on the roads.”

The survey was conducted by UC San Diego Professor Tom Wong, the advocacy group National Immigration Law Center (NILC), the immigrant rights group United We Dream, and the think tank Center for American Progress. (Disclosure: ThinkProgress is an editorially independent website housed within the Center for American Progress.)

This survey echoes findings from a similar report conducted last year, which found that DACA recipients were able to get jobs that better matched their skills and that paid them better wages.

This research helps present a clearer understanding about the impact of the DACA initiative, which from its inception has received sharp criticism from Republicans who say the policy is a show of President Obama’s “executive amnesty overreach.” In fact, Obama’s actions are legal and based on a decades-old legal precedent for the executive branch to exercise prosecutorial discretion for some immigrants who have “non-priority enforcement status.”

About 741,546 undocumented immigrants have benefited under DACA as of mid-September, according to the latest U.S. Citizenship and Immigration Services (USCIS) data.

However, GOP presidential nominee Donald Trump—who typically refers to immigrants in disparaging terms and has promised to build a wall between the United States and Mexico—has indicated that he would dismantle the DACA initiative altogether if he becomes president.

This blog was originally posted on ThinkProgress on October 18, 2016. Reprinted with permission.

Esther Yu-Hsi Lee is the Immigration Reporter for ThinkProgress. She received her B.A. in Psychology and Middle East and Islamic Studies and a M.A. in Psychology from New York University. A Deferred Action for Childhood Arrivals (DACA) beneficiary, Esther is passionate about immigration issues from all sides of the debate. She is also a White House Champion of Change recipient. Esther is originally from Los Angeles, CA.


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Department of Labor May Raise Wages for Disabled Federal Contractors, After All

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Mike ElkLast week, In These Times broke the news that Obama’s executive order raising the minimum wage to $10.10 an hour for federal contractors would not apply to the thousands of disabled workers who currently make subminimum wages—some as low as pennies an hour—under “14(c) programs.” Now, In These Times has learned that the Department of Labor is examining its position on this subject.

In a Tuesday morning interview on the Diane Rehm Show on Washington, D.C.’s WAMU, U.S. Secretary of Labor Thomas Perez referred to 14(c)—an exemption in the Fair Labor Standards Act that excludes workers with disabilities from minimum-wage protections if they are employed in certified training programs—as “a provision of law that really has worked to the detriment of people with disabilities.”

“[That is] one of the issues that we are examining right now as we prepare to finalize the executive order,” he continued.

Perez’s statement follows a letter issued by more than 25 civil rights, disability and labor organizations calling on the Obama administration to eliminate the use of subminimum wage for federal contractors. “All employees of federal contractors should mean all employees, regardless of disability status,” the letter read. “We believe … that it is both economically sound and morally just to ensure that people with disabilities have access to the same wage protections as those without.”

Some disability advocates maintain that jobs paying subminimum wages under 14(c)—known as “sheltered workshops”—must exist in order to give disabled people employment opportunities.

Others, however, argue that several states have phased out the use of sheltered workshops with few ill effects. In 2003, for example, Vermont eliminated such programs altogether. Instead, the state focused on providing training, support and transition services to people with disabilities and their employers. Today, 40 percent of Vermonters with disabilities are employed in “integrated employment” jobs, compared to less than 20 percent of workers with disabilities nationwide.

Advocates say that if the Obama administration were to eliminate 14(c) programs for federal contractors, state and local governments might follow a similar course. In the meantime, they say, they’re heartened by the unprecedented level of support they’re receiving from other organizations, including groups such as the American Civil Liberties Union.

“I think the real story here is how the civil rights community is weighing in … on the side of the disabled,” says Ari Ne’eman, president of the Autistic Self Advocacy Network. “This is creating new ground to engage the broader civil rights community on disability issues.”

“14(c) workers can and should do productive work,” says Susan Mizner of the ACLU. “They should be paid a living wage, just as every worker should be paid a living wage. This goes to principles of equity and fairness—issues that are at the core of the 14th Amendment and key to all civil rights movements.”

At the moment, it’s unclear what Obama’s next move will be in terms of raising minimum wage across the board. But Ne’eman reports that there are active conversations taking place between the federal administration and disability advocates.

“This is an issue of fundamental equity for disabled workers,” says Ne’eman. “In the coming weeks, we will be working to send a clear message to the administration that the time for action is now. Twenty-four years after the ADA, disabled workers deserve a fair deal.”

This article was originally printed on Working In These Times on February 6, 2014.  Reprinted with permission.

About the Author: Mike Elk is an In These Times Staff Writer and a regular contributor to the labor blog Working In These Times.


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