Counties have far more unspent ARPA fiscal relief funds than cities and states: Funds should be used to make equity-enhancing investments

Most of the $350 billion in State and Local Fiscal Recovery Funds (SLFRF) allocated under the American Rescue Plan Act (ARPA) remains unspent. County governments, in particular, have been slow to spend or obligate their fiscal recovery funds compared with cities and states. Those that have spent a large share of their allocation have generally used the funds for basic revenue replacement, which makes it less likely counties will take advantage of the flexibility allowed under SLFRF rules to make new investments to advance equity. Counties have myriad opportunities to use remaining SLFRF dollars to help working families, and advocates should encourage them to do so.

County governments were granted $65.1 billion in fiscal recovery funds, and $52.4 million of that went to 882 larger counties that have more frequent reporting requirements than smaller counties. As of the last reporting deadline on December 31, these larger counties have spent less than 27% of that money and obligated just 41% of it. This is substantially less than the pace of SLFRF spending by cities and states, as shown in Figure A below. Counties only have until December 31, 2024, to obligate these funds.

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The Supreme Court sided with corporations over workers—again

Last week, the Supreme Court handed employers one more cudgel to use in trying to squelch worker organizing: the threat of a state court lawsuit for economic harm. In Glacier Northwest Inc. v. International Brotherhood of Teamsters Local Union No. 174, the Supreme Court upended decades of labor law precedent by allowing an employer to file a lawsuit for damages caused by spoilage of a day’s worth of product during a strike.

There’s been a lot of writing about the case, but here’s the upshot: Workers still clearly have the right to strike, but the Court’s decision opens the floodgates for employers to weaponize financially burdensome state court litigation as a pressure tactic against workers and unions. The decision could have been worse—it contains some guardrails that may help limit the damage and provide unions with defenses because it doesn’t allow lawsuits for economic harm under any and all circumstances. But it’s still a very harmful decision that hands employers another way to suppress worker organizing and reduce worker power.

As with abortion, guns, and so many other issues, Glacier shows just how out of touch the Supreme Court is with the national pulse. The opinion was issued amid a wave of union organizing and worker action not seen in decades, including at household-name companies like Starbucks, REI, and Kellogg’s. Television and film writers—members of the Writers Guild—have been on strike for a month. Public opinion of unions is the highest it’s been in my lifetime, and a majority of workers surveyed say they’d join a union if they could.

However, only around 6% of private-sector workers are unionized. Our weak and outdated labor laws make it terribly hard to unionize, and employers routinely violate these laws by firing, threatening, and otherwise retaliating against workers who try to exercise their rights. This context makes last week’s decision even worse; it’s enraging and tragic that the Supreme Court has once again put its finger on the scale in favor of corporate America.

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Troubling provisions to watch in the new debt limit deal

The debt limit deal that Congress passed and President Biden will sign tonight may avert the economic crisis that would be caused by the U.S. government defaulting on its payments. But it’s worth reiterating that we shouldn’t be in this deal-making situation to begin with.

“Debt limit deals” are a way to force policy change through a backdoor by holding the U.S. (and global) economy hostage. Accepting that “debt limit deals” are just business as usual every time we approach the ceiling basically means that one political party can gain access to an inordinately powerful “hack” around the normal democratic process so long as some arbitrary conditions prevail.

Republicans have a majority in just one chamber of Congress, and face a president of the opposing party. Normally, this would mean they would have to argue their case for policy changes on the floor of the House, and compromise more often than not. However, just because we were about to cross over the utterly arbitrary debt limit, Republicans magically gained enormous amounts of leverage to dictate policy—including a lot of policy divorced from the specific conversation of addressing the debt and deficits. This is not a sensible way to govern.

This deal looks significantly less harmful than the original McCarthy proposal that passed the House last month, but it still contains several worrying provisions. Notably, it still includes a concession to expand and tighten work reporting requirements for some of the most vulnerable Americans to access the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF). These should never have been part of a debt ceiling discussion.

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U.S. economy added 339,000 jobs in May: Labor market remains strong despite volatile household survey

Below, EPI senior economist Elise Gould shares her insights on the jobs report released this morning, which showed 339,000 jobs added in May. Read the full Twitter thread here. 

Iowa governor signs one of the most dangerous rollbacks of child labor laws in the country: 14 states have now introduced bills putting children at risk

Updated June 23, 2023

In a March 14 report, we documented how states across the country are attempting to weaken child labor protections, just as violations of these standards are on the rise. The trend reflects a coordinated multi-industry push to expand employer access to low-wage labor and weaken state child labor laws in ways that contradict federal protections. And the recent uptick in state legislative activity is linked to longer-term industry-backed goals to rewrite federal child labor laws and other worker protections for the whole country.

Last Friday, this concerted attack on child labor safeguards further expanded. Iowa Governor Kim Reynolds signed an expansive bill enacting numerous changes to the state’s child labor laws, including:

  • allowing employers to hire teens as young as 14 for previously prohibited hazardous jobs in industrial laundries or as young as 15 in light assembly work;
  • allowing state agencies to waive restrictions on hazardous work for 16–17-year-olds in a long list of dangerous occupations, including demolition, roofing, excavation, and power-driven machine operation;
  • extending hours to allow teens as young as 14 to work six-hour nightly shifts during the school year;
  • allowing restaurants to have teens as young as 16 serve alcohol; and
  • limiting state agencies’ ability to impose penalties for future employer violations.

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Job openings ticked up slightly in April as layoffs fell: Labor market remains steady and does not show signs of rapid cooling

Below, EPI senior economist Elise Gould offers her initial insights on today’s release of the Job Openings and Labor Turnover Survey (JOLTS) for April. Read the full Twitter thread here.

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Broad child poverty data for the Asian American, Native Hawaiian, and Pacific Islander population don’t tell the whole economic story

Broad poverty data understate the extent of deprivation among Asian American, Native Hawaiian, and Pacific Islander (AANHPI) children. At first glance, poverty appears to just disproportionately affect Native Hawaiian and Pacific Islander children, as Asian American children seem to be nearly as likely as white children to be poor (see Figure A). However, wide economic disparities between AANHPI families and children of different backgrounds hide under these broad statistics. 

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Class of 2023: Young workers have experienced strong wage growth since 2020

In part one of this blog post series, we found that the Class of 2023 is graduating into an exceptionally strong labor market, with the lowest unemployment rate for young adults in 70 years. In part two, we found that young adults are more likely to have predictable work hours, work full time, and have only one job now than in 2019. In the third and final part of our series, we analyze how young workers’ wages have changed over the pandemic and differ across demographic groups.

We find:

  • Workers of all ages have experienced stronger-than-usual wage growth in the pandemic business cycle (February 2020 to March 2023)—even after accounting for high inflation—but young workers were not left behind like they have been in previous business cycles.
  • Entry-level high school graduates (ages 17–20) saw real wage growth three times as fast as entry-level college graduates (ages 21–24) in the pandemic business cycle.
  • Gender and racial wage gaps already exist among entry-level high school graduates. Women are paid 14% less than men on average, while white workers earn slightly more on average than their Black and Asian American/Pacific Islander (AAPI) counterparts.
  • Among entry-level college graduates, women and Hispanic and Black workers fall even further behind. Women are paid 16% less than men on average, while Hispanic and Black workers are paid 6% and 11% less, respectively, than their white counterparts on average.

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Debt ceiling deal ‘work requirements’ would hurt low-wage workers, fuel corporate greed

Republicans are weaponizing the debt ceiling to force “work requirements” for Medicaid and assistance programs like SNAP and TANF. Below, EPI offers insights on the risk of including “work requirements” in a deal to raise the debt ceiling.

Read the full Twitter thread here.

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Class of 2023: Young people see better job opportunities

We began this blog post series discussing the promising employment prospects for young people ages 16–24 as they graduate from high school and college this spring. As of the latest data, the unemployment rate for young people is the lowest in 70 years. In part two of our series, we delve into young people’s working hours and employment by industry, compared with 2019 before the pandemic recession.

On key measures of job quality, young people face a better labor market today than in 2019. This represents an extraordinarily strong job market recovery for young workers—especially compared with previous recessions. In particular, we find:

  • Young workers are more likely to have predictable work hours and work full time than in 2019.
  • All workers, but particularly young workers, are more likely to work only one job in 2023 than in 2019.
  • Young people are most likely to work in leisure and hospitality, retail trade, and education and health services, both now and pre-pandemic. Due largely to this industry concentration of employment, they suffered the greatest job losses during the pandemic recession in food services and drinking places and educational services.
  • Young people gained the most employment in construction and transportation, particularly in jobs as couriers and messengers as well as warehousing and storage.

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