Media clips
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“Nothing about this is going to be permanent,” said Heidi Shierholz, a senior economist at the left-leaning Economic Policy Institute.
LA Times July 9, 2021 -
The White House estimates that noncompete agreements are used by roughly half of private-sector businesses for at least some of their employees, affecting anywhere between 36 million and 60 million workers. The numbers come from a 2019 report from the left-leaning Economic Policy Institute, which surveyed 634 employers.
The report found that while businesses with well-paid, highly educated workers are more likely to use noncompetes, the agreements were not uncommon in sectors dominated by low-wage workers. Almost 30% of establishments offering an average hourly wage below $13 require noncompetes for all their workers, the survey found.
Famously, the sandwich chain Jimmy John’s agreed to stop using noncompetes in 2016 after being sued in New York and Illinois. The chain had prohibited its sandwich-makers and drivers from working for another sandwich shop within a 3-mile radius of any Jimmy John’s in the country.
Noncompetes are still fairly common in construction, manufacturing and retail, the EPI survey found. And workers bound by them often enter jobs unaware of the requirement. Almost a third of businesses surveyed said they ask new employees to sign the agreements after they’ve accepted the job, often on their first day of work.
NPR July 9, 2021 -
In the meantime, teachers—who, according to recent data by the Economic Policy Institute, earn about 20 percent less than other professionals with similar experience—continue to face financial hardships.
Education Week July 9, 2021 -
So while restaurant workers have more options today, “that doesn’t mean there are a bunch of family-sustaining jobs,” said Heidi Shierholz, a labor economist with the Economic Policy Institute. “The weekly wages that are in that industry — they are extraordinarily low.”
In June, average weekly earnings for all employees in the leisure and hospitality sector amounted to $483, or just over $23,000 per year, according to U.S. Bureau of Labor Statistics.
“Wages have grown in leisure and hospitality this year for sure, but they plummeted in the earlier part of the recession. So it’s not like the wages are high by any stretch in this industry,” Shierholz said. “These workers definitely have more leverage than they did in December in the worst of this, but it is far from an industry where workers call all the shots. It’s still extremely low wages, unstable hours, weak benefits.
Eventually, the industry is likely to arrive at a post-pandemic equilibrium, and workers will lose some of their newfound bargaining power.
“I looked hard and I can’t see anything in this that I expect to be permanent,” Shierholz added. “We’re in a labor market that’s in very rapid flux, so there are some pockets like this where we’re seeing unusual dynamics. But I think this is a temporary shift in some of the bargaining power to workers.”
CBS News July 9, 2021 -
As corporate tax obligations have declined, CEO pay has skyrocketed. According to Office of Management and Budget data and Economic Policy Institute research, when corporate tax receipts made up 21.8 percent of all federal revenue in 1965, the average CEO-to-median worker pay ratio was 21 to 1. After the 2017 Republican tax cuts, corporations plowed significant windfalls into stock buybacks and executive bonuses. By 2019, corporate tax receipts had fallen to just 6.6 percent of federal revenue and the average pay ratio had risen to 320 to 1.
Inequality.org July 9, 2021 -
The fault lines of inequality exposed by the COVID-19 pandemic have also thrown the pre-emption issue into starker relief. A 2020 report from the left-leaning Economic Policy Institute notes that legislative moves are “disproportionately harming the same communities that have been pre-empted from taking local action, limiting their ability to effectively combat the public health crisis.”
The report, which focuses on the South, characterizes pre-emption as “embedded in a racist history.” Pre-emptive laws “are passed by majority-white legislatures and tend to create barriers to economic security in cities whose residents are majority people of color.”
MarketWatch July 9, 2021 -
Noncompete agreements prevent workers from going to a competitor or starting a competing business within a certain period after leaving their previous job. Between 36 million and 60 million private-sector workers were subject to noncompete agreements in 2019, according to estimates by the Economic Policy Institute.
“The only economic leverage that non-unionized workers have is the implicit threat that they could quit and go somewhere else,” Heidi Shierholz, senior economist and director of policy at the Economic Policy Institute, told Yahoo Money. “Noncompete agreements reduce wages. Your employer doesn’t have to pay you bigger wages if they know that you don’t have outside options.”
Limiting noncompete agreements or making them unenforceable — as Biden’s order sets out to do — may not be enough, according to Shierholz. Banning them instead would give workers more leverage, she said.
Yahoo Finance July 9, 2021 -
“There are many people who lost their jobs early on in the recession who’ve been unemployed ever since,” according to Heidi Shierholz, director of policy at the Economic Policy Institute and former chief economist at the Department of Labor during the Obama administration.
The increase in yearlong unemployment comes as the U.S. added 850,000 jobs in June, the most since August 2020.
But the jump makes sense given the contours of the Covid labor market, Shierholz said.
Layoffs, which began en masse in March and April 2020, were still about 20% higher than pre-pandemic levels over the following two months, she said.
(Layoffs are a different metric than net jobs gained or lost, and are reported separately from the monthly jobs figures.)
A jump in 52-week unemployment therefore reflects the elevated layoffs a year ago. The numbers will likely soon decline, since layoffs had normalized by July, she said.
“As the overall unemployment rate comes down, I expect the long-term unemployment rate will come down,” according to Shierholz.
Those out of work for an extended duration are likely among the hardest-hit industries, like leisure and hospitality, Shierholz said.
CNBC July 9, 2021 -
Economist Elise Gould, who works with the non-partisan Economic Policy Institute, noted that the leisure and hospitality workforce is still below the pre-COVID-19 numbers. There are also big needs in government and education employment.
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Gould’s fellow economist at EPI, Heidi Shierholz noted in a series of tweets that wage increases accompany hospitality growth.
“One exception is in leisure and hospitality, where wages of nonsupervisory workers have risen sharply enough to suggest an actual (if sector-specific) shortage,” Shierholz tweeted. “But when you look further, you find little to be concerned about.”
Herald Banner July 9, 2021 -
CWA does not represent tower climbers, Shelton said, and an Economic Policy Institute report from October found that the share of telecom workers represented by a union has fallen from 60% in the 1970s to about 16%.
Axios July 9, 2021