Some university officials are complaining about the cost of the new overtime rule, which requires that salaried employees who make less than $47,476 and who work more than 40 hours a week get paid for their overtime.
Today’s Regional and State Employment and Unemployment report for May was foreshadowed by the dramatic slowdown in employment growth in May’s national jobs report, and it did not fail to depress our economic outlook. Though the national unemployment rate fell from 5.0 percent to 4.7 percent in May, it was at least partially caused by people exiting in the labor force (rather than finding jobs), and it was accompanied by a measly employment growth of 38,000 jobs.
The Department of Labor’s new overtime rule significantly increases the number of salaried workers who qualify for time-and-a-half pay for any hours they work beyond 40 in a week.
The decline of unemployment rates across most of the country has been decelerating, with fewer states seeing their unemployment rates drop—much like how the national unemployment rate has stalled at 5.0 percent. In April 2016, the U.S. economy added just 160,000 jobs, the smallest gain since September 2015. California and Florida made up over three-fifths of those jobs gained in April.
The Department of Labor’s new overtime rule significantly increases the number of people who qualify for time-and-a-half pay for any hours they work beyond 40 in a week.
These tables give a detailed breakdown of who is included in the estimated 12.5 million salaried workers who will directly benefit from the Department of Labor’s new rule raising the salary threshold below which salaried workers are automatically eligible for overtime pay.
A bill before the Baltimore City Council would gradually raise the city’s minimum wage to $15 by mid-2020. It would also ensure tipped workers, such as waiters and bartenders, are eventually paid the full minimum wage, instead of the $3.63 subminimum wage. This proposal would raise wages for 98,000 working people—about 27 percent of all Baltimore workers. Once the minimum wage reaches $15, the average affected worker would earn roughly $4,400 more each year than she does today. Far from the stereotype of low-wage workers being teenagers working to earn spending money, those who would benefit are overwhelmingly adult workers, most of whom come from families of modest means, and many of whom are supporting families of their own.
The Regional and State Employment and Unemployment report for March was released today by the Bureau of Labor Statistics and the data show a continuation of what has been a steady improvement in the economies of most states.
Today, the Bureau of Labor Statistics released state employment and unemployment data for the month of February. The report points to a mostly steady improvement in the economy across the United States. Over the last year, states saw moderate gains in employment and declines in the unemployment rate which, coupled with a growing labor force, indicate genuine labor market improvements—improvements that must continue in order to achieve full employment.
Today, the Bureau of Labor Statistics released January state employment and unemployment data
that largely reaffirm the trend of general economic improvement in most states, while a handful of states continue are faltering a bit due to the decline in energy prices.
At the beginning of the year, 14 states raised their minimum wages, lifting wages for over 4.6 million workers in states across the country. Unlike last year’s increases
, the majority of these increases (12) were scheduled increases initiated by legislation or approved by voters through ballot measures.
The economic impact of so-called “right-to-work” (RTW) laws has become a hotly contested issue in recent years. These laws restrict the ability of unions to collect dues from workers whose interests they represent.
A common argument claims that cutting the length of time that people can collect unemployment benefits forces people to find jobs faster. If this were the case, we would expect to see the share of people with jobs increase after cuts went into effect in states that cut unemployment insurance.
After dipping slightly in 2013, annual earnings of the top 1.0 percent of wages earners grew 4.9 percent in 2014, and the top 0.1 percent’s earnings grew 8.9 percent, according to our analysis of the latest Social Security Administration wage data.
The income level necessary for families to secure an adequate but modest living standard is an important economic yardstick. While poverty thresholds help to evaluate what it takes for families to live free of serious economic deprivation, EPI's Family Budget Calculator offers a broader measure of economic welfare.
This paper presents the methodology and data sources used in the 2015 update of the Economic Policy Institute’s Family Budget Calculator.
Only 2.8 million salaried women earn less than the current overtime salary threshold of $23,660. If the threshold is raised to $50,440, an additional 6.9 million women will have automatic overtime pay coverage, including 2.4 million women with children under the age of 18.
This technical memo explains the methodology we used to estimate the number of workers affected by the Department of Labor’s proposed update to the overtime salary threshold.
Under the Fair Labor Standards Act (FLSA), employers are required to pay covered workers 1.5 times their regular rate of pay for each hour of work per week beyond 40 hours.
In a 2014 analysis
, former EPI economist Heidi Shierholz estimated the share of salaried workers who were covered by the overtime salary threshold in 1975 and in 2013. Now, in updating this analysis, we want to be as precise as possible in identifying the workers who will be affected by the updated salary threshold rule.
Today's young college graduates face a more challenging labor market—higher unemployment, higher underemployment, and lower wages—than their older siblings did before the Great Recession. While wage stagnation is not unique to the newest labor market entrants, what is particularly stunning is the fact that stark wage disparities between men and women occur even at this early part of their careers.
The fact is that wage and income inequality didn’t happen by accident; they are the result of intentional policy decisions that have shifted bargaining power away from workers. So along with fighting to alleviate poverty through a stronger safety net, we should use all the tools available to raise America’s pay and raise Americans out of poverty.
Job prospects for the class of 2015 are better than for the several classes that graduated before them, but young graduates today still face many economic challenges, including stagnant wages and high levels of unemployment and underemployment.
Due to the progression of the economic recovery and a modest improvement in the unemployment rate, members of the Class of 2015 currently have better job prospects than the classes of 2009–2014. However, the Class of 2015 still faces real economic challenges, as evidenced by elevated levels of unemployment and underemployment, and a large share of graduates who still remain “idled” by the economy.
That the poverty rate has remained stubbornly elevated over the last three-and-a-half decades is simply a symptom of an increasingly unequal economy, marked by nearly stagnant hourly wages for the vast majority of the American workforce.
Despite officially ending in June 2009, the Great Recession and its aftermath continues to have a damaging effect on the labor market prospects of young adults.
Wages in "right-to-work" (RTW) states are 3.1 percent lower than those in non-RTW states, after controlling for a full complement of individual demographic and socioeconomic factors as well as state macroeconomic indicators. This translates into RTW being associated with $1,558 lower annual wages for a typical full-time, full-year worker.
Unemployment insurance (UI) is a federal-state program that provides income support for jobless workers in economic downturns. Following the Great Recession, the safety net provided by the UI system was a crucial tool in counteracting the effects of the downturn on families.
In our recent EPI briefing paper, How Low Can We Go?, we noted that a lower proportion of jobless workers are protected by state unemployment insurance (UI) programs than at any time in history.