UN Secretary General’s report on migration highlights the need for government action and cooperation, but lacks key guidance on labor migration
The United Nations Secretary General (UNSG) released a report in January 2018 titled Making migration work for all, that laid out four “considerations” to guide governments negotiating a Global Compact for Migration, an agreement to promote more “safe, orderly, and regular” international migration. The four considerations focus on how to maximize migration’s benefits, increase labor migration, address the legitimate security concerns of unauthorized migration, and address issues arising as a result of mixed flows of migrants and refugees.
The report is aimed primarily at governments that are major destination countries for migrants, urging them to open doors wider to legal migrant workers, protect migrant workers during recruitment and employment abroad, and during their return to their home countries or re-integration there, and to offer protection to vulnerable migrants who are not refugees but nevertheless require some form of protection.
While the report offers many thoughtful and useful recommendations, there are no priorities among the long list of “shoulds” and no analysis of the trade-offs between competing recommendations. For example, is there competition or are there trade-offs that must be balanced between opening doors wider to migrant workers and protecting the rights and labor standards of local, destination country workers? Can both be done while ensuring that migrant workers are fully protected?
What to Watch on Jobs Day: How the Trump administration stacks up against an economy on autopilot
Friday marks the first full year of Bureau of Labor Statistics Employment Situation reports since the beginning of the Trump administration. Put simply, overall economic growth and the labor market are healthier today than they’ve been in years, and President Trump and his supporters have been quick to claim credit for this relative health. These are ridiculous claims. An analogy might help. A person’s health is a function of many variables: genetics, diet, exercise, and environmental factors, for example. Eventually, of course, almost everyone will at some point in their life need access to quality medical care to remain healthy. But, noting that somebody is healthy at a given point in time says nothing about whether their doctor is competent or not. The Trump administration was handed an economy and a labor market whose health had improved radically (if too slowly) over the preceding eight years, and which was trending steadily in an even better direction. Macroeconomic trends tend to have lots of momentum, so we shouldn’t be shocked that this recovery has continued. But nothing the Trump administration has done has boosted its trajectory.
Friday’s jobs report will give us an opportunity to look at the last year in the context of what we would have expected from an economy that was completely on autopilot, just moving along its preexisting trajectory.
EPI’s Autopilot Economy Tracker focuses on four key measures: the unemployment rate, the prime-age employment-to-population ratio, wage growth, and payroll employment growth. Here I’ll take each in turn—I’ll look again on Friday to see what story the newest data tell.
Providing unpaid leave was only the first step; 25 years after the Family and Medical Leave Act, more workers need paid leave
February 5, 2018 marks the 25th anniversary of the Family and Medical Leave Act (FMLA), which allows eligible employees to take up to 12 weeks of unpaid, job-protected leave within a calendar year for a serious health condition, the birth of a child or to care for a newly born, adopted, or foster child, or to care for an immediate family member with a serious health condition. While it’s important to celebrate this important milestone, stopping there on the national level has been a huge mistake. Because eligibility is limited based on size of firm, work hours, and tenure at job, the FMLA only provides access to an estimated 56 percent of the workforce. But the largest loophole in the FMLA is that it is unpaid, so many workers who would want to take advantage of it to care for themselves or a family member, simply cannot afford to.
Only 13 percent of private-sector workers have access to any paid family leave, which means that 87 percent do not. Due to this widespread lack of paid family leave, workers have to make difficult choices between their careers and their caregiving responsibilities precisely when they need their paychecks the most, such as following the birth of a child or when they or a loved one falls ill. This lack of choice can often lead workers to not take any leave or cut their leave short; about 45 percent of FMLA-eligible workers did not take leave because they could not afford unpaid leave and among workers who took time off for caregiving responsibilities, about one-third of leave-takers cut their time off short due to cover lost wages.
The distribution of workers with paid family leave is skewed toward higher-wage workers. As shown in the figure below, workers in the top 10 percent of the wage distribution are six times more likely to have paid family and medical leave to care for themselves or a family member when coping with a serious health condition or to care for a new child in their family than workers in the bottom 10 percent. This bears repeating: only 4 percent of the lowest-wage workers have access to paid family leave. The disparities are stark, but even among the highest paid workers, only about one-fourth have paid family leave.
Year one of the Trump administration: Normalizing itself by working for the top 1 percent
Tomorrow, President Trump is set to deliver his first State of the Union speech, in which he will likely provide a triumphalist account of the economic policy changes made during the first year of his presidency. But despite big talk on the campaign trail about how he would stand up for the forgotten working man (for Trump, it was always men who were left behind), the first year of the Trump presidency has been no triumph for typical American workers. Instead the big winners over the past year have been the already rich.
This really shouldn’t come as a surprise. Trump’s was crystal clear in his inaugural address about who he considers the cause of American workers’ disempowerment: foreigners. This diagnosis is stunning not just in how wrong and bigoted it is, but how cynically it attempts to distract from the privileged group that really was reaping gains that should have been broadly shared—the top 1 percent and their enablers. His agenda of continuing the upward redistribution of income to this top 1 percent while scapegoating immigrants and allegedly nefarious foreign governments is essentially the orthodoxy among the Republican Congressional majority, and it will do nothing to help America’s workers.
The cynicism is clearest when considering the signature piece of legislation signed by Trump, the Tax Cuts and Jobs Act (TCJA). The TCJA provides a number of temporary tax cuts to households, most of which will accrue to those at the top of the income distribution. But it saves its permanent tax cuts for the nation’s corporations, whose profits eventually flow overwhelmingly to the richest households in America. By 2027, when the household tax cuts have expired but the corporate tax cuts remain, the top 1 percent will see 83 percent of the gains from the TCJA. Corporations have been so giddy about the windfall they’ve reaped from the TCJA that they’ve mounted an absurdly transparent public relations campaign on its behalf, claiming that every bonus and wage increase they have bestowed since its passage was somehow the result of it—even those that occurred before the TCJA actually took effect. This is, needless to say, not how economics argues that tax cuts can potentially boost wages. It’s also important to note that in any given year about half of all workers see raises, and nearly 40 percent receive bonuses. In short, it is extremely likely that not a single worker who wasn’t a high-placed CEO or corporate manager has seen a raise because of the TCJA. And if they got a bonus this year because of the TCJA, it was a likely a one-time attempt by their employer to sneak in a deductible expense before the tax cuts made these deductions less profitable, and no future TCJA-linked bonuses will be seen again.
White House framework calls for a vast increase in immigration enforcement on the backs of DREAMers, while only legalizing 16 percent of the undocumented population
Yesterday the White House one-page framework for a legislative deal to provide a permanent immigration status to DACA recipients was made public, which is in addition to the four-page memo released on January 9 that included the Department of Homeland Security’s priorities for an “immigration deal.” The new one-page memo includes a long list of far-reaching demands to “reform” the immigration system, in exchange for remedying the crisis that President Trump himself imposed on the nearly 700,000 immigrants who were brought to the United States as children by their parents, and who voluntarily availed themselves to the U.S. government after they were promised that they would be protected and not deported by the Obama administration.
President Trump’s latest demands for major changes to the U.S. immigration system include additional legal authority to deport unauthorized immigrants, $25 billion in new funding for more border security and immigration enforcement agents, an end to the diversity visa program, and cuts to permanent immigrant visas for family reunification, among other things. All of this would be in exchange for putting up to 1.8 million DACA recipients and DREAM Act-eligible immigrants on a path to citizenship.
It is notable that the Trump administration is willing to extend the possibility of legalization and citizenship beyond just the current 700,000 DACA recipients, but doing so would still only legalize 16 percent of the total unauthorized immigrant population (1.8 million out of 11.3 million). DACA recipients and potential DREAMers themselves have made it clear that they reject a path to citizenship if it means that their parents and the millions of unauthorized immigrants left behind will be terrorized through a vastly expanded national deportation apparatus and additional border militarization, plus sharp cuts to future immigration levels.
Lessons from today’s GDP report: Long-expected rebound in productivity finally seems to be happening, and no reason for Fed to raise rates in their next meeting
The Bureau of Economic Analysis (BEA) reported this morning that gross domestic product (GDP—the widest measure of economic activity) grew at a 2.6 percent annualized rate in the last quarter of 2017. This was down slightly from the 3.2 percent growth rate of the third quarter of 2017.
Today’s data also lets us examine how the economy grew over the year that ended in December 2017. Between the end of 2016 and the end of 2017, the economy grew by 2.5 percent. This is a faster rate of growth than what prevailed in either 2015 (2.0 percent) or 2016 (1.8 percent), but it is far from unprecedented. Growth was faster in both 2013 and 2014, for example (2.7 percent growth in both of those years).
Importantly, the recent pickup in GDP growth is largely the result of faster productivity growth. Employment growth actually slowed in 2017 while output growth rose, which implies a pickup in productivity (the amount of economic output generated in an average hour of work). As I wrote almost a year ago, this pickup in productivity growth should not come as a surprise—productivity growth has been extraordinarily slow in recent years but it generally reverts to long-run averages. Further, the source of recent productivity growth weakness was clear—it was a continuing casualty of the enormous shortfall of demand caused by the Great Recession and its subsequent slow recovery. As the economy worked off this demand shortfall, it was always quite likely that a rebound in productivity growth would follow.
Davos is Trump’s kind of town
The global punditry is all a twitter this week with the prospect of Donald Trump going to Davos—the chic winter gathering place of the world’s rich and powerful.
The media narrative is that this will be a titanic clash of opposites. Populist, “America First” Trump confronting the high-minded capitalist builders of the global economy.
“It’s going to be a hell of a show,” a Vox writer assures us. “Fox in the Globalist Henhouse?” headlines the New York Times. The internationalist intellectual Niall Ferguson explains that: “Trump is as loathed by the elites of Western Europe as he is by the elites of Manhattan.”
No doubt many of Manhattan’s rich and powerful would agree with Trump’s Secretary of State (the former CEO of Exxon) that the president is a moron. But so what? Rather than drain the Washington swamp he pumped it even more full of Wall Street financiers, international business interests and lobbyists from virtually every sleazebag business interest in the country.
The TCJA, combined with a cynical PR campaign from the GOP and the corporate world, could hit American families hard in the 2019 tax season
Republican congressional leaders and President Trump have made loud claims about how great the recently passed Tax Cuts and Jobs Act (TCJA) will be for typical American families. When will these families be able to conclusively judge the truth of these claims? Not for a long while. The changes from the new tax law took effect on January 1. Companies now have to figure out how much to change workers’ tax withholdings to comply with the new law. To do that, they need guidance from the Internal Revenue Service (IRS).
But this is the same IRS that has seen its budget cut by 18 percent and its workforce cut by 14 percent since 2010. And it’s the same IRS that would send home over half of its workforce if the government shuts down again. While a deal was reached to end the current shutdown, that deal only funds the government through February 8th. All as the 2018 tax filing system ramps up and 2017 tax returns flood into the agency.
Typically, this shouldn’t be much of an issue. A shutdown would usually only push back the timing of withholding changes. The IRS would understandably take more time to issue guidance, and companies would simply implement the new withholdings later in the year.
But the Trump administration has already been pressuring the IRS to aim for speed over accuracy in new withholdings. Further, they would love companies to err on the side of withholding too little and boosting workers’ take-home pay, even if this meant that these workers have to make large payments back to the government in 2019. After all, the salience of the TCJA is as high as it’s going to be, and this administration is not shy at all about putting political expedience over smart policy. And telling workers that the tax cut is already working for them is awfully expedient in a mid-term election year. If the administration continues to focus on speed, then what was already a risk of under-withholding would be augmented by a government shutdown.
Overall union membership rises in 2017, union density holds steady
Newly released Bureau of Labor Statistics data on union membership trends show that union membership as a share of overall employment held steady at 10.7 percent in 2017, with essentially stable membership rates in both the private (6.4 or 6.5 percent) and public (34.4 percent) sectors.
Union membership gains among men offset continued losses among women last year. But, it is important to view these different trends by gender within historical context: union membership in 2017 was roughly equivalent among men (11.4 percent) as women (10.0 percent), compared to 1979 when men were more than twice as likely as women to be union members and comprised 69 percent of union members.
It is difficult to use one year changes in union membership trends to assess underlying dynamics. For one, the small samples involved for particular subgroups produce year-to-year volatility that should not be mistaken for a trend. Second, any change in union density can result from many different factors including the pattern of overall employment growth (whether sectors or occupations that are more heavily union grow faster or slower than average), the success or failure of union organizing drives, the scale of union organizing, changes in workers’ desire for union membership (i.e., demand for collective bargaining), and other factors. An understanding of the dynamics of union membership and representation requires a long-term analysis of detailed trends.
Nevertheless, it is worth squeezing out what is plausibly interesting in the most recent data:
- Union membership (according to the BLS release) rose by 262,000 in 2017, more than the 173,000 additional workers covered by a collective bargaining agreement (hereafter referred to as “coverage”). See Table 1 (which relies on tabulations of the underlying survey data because BLS does not provide gender breakdowns within sectors). The greater growth in union membership than coverage was driven by developments in the private sector where membership growth was triple (164,000) that of the growth of coverage (53,000), centered in professional and service occupations.
Union membership and collective bargaining coverage: By sector, for men and women, annual 2016-17
| Employment | Rates | |||||
|---|---|---|---|---|---|---|
| Sector | All | Union membership | Collective bargaining coverage | Union membership | Collective bargaining coverage | |
| Change, 2016 to 2017 | ||||||
| All industries | 1,781,023 | 261,891 | 171,556 | 0.1% | 0.0% | |
| Men | 870,382 | 282,105 | 230,065 | 0.3% | 0.2% | |
| Women | 910,642 | (20,214) | (58,509) | -0.2% | -0.2% | |
| Private sector all | 1,499,242 | 164,069 | 52,852 | 0.1% | 0.0% | |
| Men | 670,042 | 214,632 | 120,916 | 0.3% | 0.1% | |
| Women | 829,199 | (50,563) | (68,063) | -0.2% | -0.2% | |
| Public sector zll | 281,782 | 97,822 | 118,704 | 0.0% | 0.1% | |
| Men | 200,339 | 67,473 | 109,150 | 0.0% | 0.4% | |
| Women | 81,443 | 30,349 | 9,554 | 0.0% | -0.2% | |

Note: Changes in rates are percentage point changes.
Source: Economic Policy Institute, Analysis of Current Population Survey data.
- Union membership became more common among men: some 32 percent of the net increase in male employment in 2017 went to men who were union members, leading union membership to rise from 11.2 to 11.4 percent of all male employment. Growth of union membership for men was strong in both the public and private sectors and for Hispanic and for non-Hispanic white men.
- Correspondingly, union membership dipped slightly among women because women’s union membership did not rise in the private sector although employment overall did rise—private sector employment growth for women was concentrated in nonunion sectors. Union membership growth, however, was strong among Hispanic women.
Change in union membership and union coverage rates by gender, 2014-2017
| Rates | ||||
|---|---|---|---|---|
| 2014 | 2015 | 2016 | 2017 | |
| All | ||||
| Union membership | 11.1 | 11.1 | 10.7 | 10.7 |
| Bargaining coverage | 12.3 | 12.3 | 12.0 | 11.9 |
| Men | ||||
| Union membership | 11.7 | 11.5 | 11.2 | 11.4 |
| Bargaining coverage | 12.8 | 12.6 | 12.3 | 12.5 |
| Women | ||||
| Union membership | 10.5 | 10.6 | 10.2 | 10.0 |
| Bargaining coverage | 11.7 | 11.9 | 11.6 | 11.3 |

Source: Economic Policy Institute analysis of Bureau of Labor Statistics
- Union membership grew in manufacturing despite an overall decline in manufacturing employment. Union membership was also strong in the wholesale and retail sectors, in the public sector and in information sector (where union membership density rose 1.9 percentage points).
- Union membership density was stable or grew in a number of Southern states: Arkansas, Florida, Georgia, Louisiana, and Virginia with especially strong growth in Texas.
Unrigging the economy to grow the middle class: Pennsylvania takes the lead on overtime
Yesterday, Pennsylvania Governor Tom Wolf became the first state executive to take action to provide workers overtime protections that help guarantee fair pay for hard work, since a 2016 federal rule to do this at the national level was blocked in the courts by corporate interests. As part of his “Jobs That Pay” initiative, Wolf proposed a state rule change that will modernize the state’s overtime policies, providing new or strengthened overtime protections to 460,000 more middle-income workers by 2023 and ultimately putting close to $53 million more each year into Pennsylvanians’ paychecks.
The Keystone Research Center (KRC), a member of the Economic Analysis and Research Network (EARN), advocated for the Wolf administration to take this action. Stephen Herzenberg, KRC economist and executive director, applauded Wolf’s leadership.
On overtime pay, the governor has authority to act without the state legislature. On another vital measure to improve the lives of working families, raising the minimum wage, legislative action is required—and Pennsylvania still lags its neighboring states. Unlike these six contiguous states, the Pennsylvania legislature has failed to increase the minimum wage above the federal level of $7.25.