Media clips
-
“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 -
Payroll growth over the last three months in the US has been ‘huge’, says Heidi Shierholz, director of policy at the Economic Policy Institute (and former chief economist at the Department of Labor)
The Guardian July 9, 2021 -
While Joe Biden narrowly won back Wisconsin and Michigan last year, the states are increasingly polarized, a trend that has been exacerbated by labor’s demise. As the Economic Policy Institute has shown, the decline in union membership correlates with a rise in income inequality. It is also a central culprit in America’s political dysfunction and in the atomization of the electorate; studies have shown that union members are more active in civil society, more likely to vote and less prone to racial resentment.
New York Times July 9, 2021 -
The rule that gives California unions access to private property was put in place for good reason. “It takes account of who farmworkers are, how they work, and the fact that they are really hard to reach,” says Daniel Costa, director of immigration law and policy research at the Economic Policy Institute.
Costa says that many farmworkers live on the premises where they work, meaning that in order to speak to them at all, union organizers need to be able to access private agricultural property. In other cases, such as at Cedar Point, workers live in housing that is rented out and therefore effectively controlled by their employer.
On top of being physically hard to reach, Costa says there are often language barriers, with many workers speaking a primary Indigenous language rather than Spanish or English. “They also sometimes work unusual hours because of the heat, and usually live and work in far-off rural places,” says Costa.
Jacobin July 9, 2021 -
The crackdown on noncompetes is meant to increase competition among employers and restore workers’ leverage in the job market. Labor economists say limiting or banning such clauses will give workers more mobility and ultimately greater earnings, by allowing them to take their work to the highest bidder.
“If you’re a nonunionized worker … basically your only source of power with your employer is the implicit threat that you can quit and take a job somewhere else,” said Heidi Shierholz, senior economist at the left-leaning Economic Policy Institute.
Huffpost July 9, 2021 -
Un análisis realizado en 2019 por el liberal Economic Policy Institute estimó que entre 36 y 60 millones de trabajadores podrían estar sujetos a acuerdos de no competencia.
Telemundo July 9, 2021 -
Mason’s experience is one of the reasons advocates are calling on policymakers to reimagine the unemployment system. In a new report, the left-leaning Economic Policy Institute (EPI) is calling for setting minimum federal standards to replace wildly divergent levels of benefits from state to state, tying the term of benefits programs to the economic conditions on the ground instead of relying on Congress and expanding eligibility in a system with a long list of reasons for rejecting people.
EPI say state-level unemployment programs are obsolete and riddled with exclusions. Absent federal intervention that temporarily expanded eligibility during the pandemic, less than one-third of jobless people in the U.S. received unemployment benefits in 2019.
Nevada Independent July 9, 2021 -
But, “there really isn’t any evidence of widespread labor shortage,” said Valerie Wilson at the Economic Policy Institute.
If there were, Wilson said, employers would be jacking up wages across the board to entice unemployed workers. Instead, there are some pockets of wage acceleration, “in leisure and hospitality. A big boost in those wages is the fact that they’re getting more tips now because more people are coming to those restaurants in person.”
Marketplace July 9, 2021 -
“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 -
Un análisis realizado en 2019 por el liberal Economic Policy Institute estimó que entre 36 y 60 millones de trabajadores podrían estar sujetos a acuerdos de no competencia.
Telemundo July 9, 2021 -
Mason’s experience is one of the reasons advocates are calling on policymakers to reimagine the unemployment system. In a new report, the left-leaning Economic Policy Institute (EPI) is calling for setting minimum federal standards to replace wildly divergent levels of benefits from state to state, tying the term of benefits programs to the economic conditions on the ground instead of relying on Congress and expanding eligibility in a system with a long list of reasons for rejecting people.
EPI say state-level unemployment programs are obsolete and riddled with exclusions. Absent federal intervention that temporarily expanded eligibility during the pandemic, less than one-third of jobless people in the U.S. received unemployment benefits in 2019.
Nevada Independent July 9, 2021 -
But, “there really isn’t any evidence of widespread labor shortage,” said Valerie Wilson at the Economic Policy Institute.
If there were, Wilson said, employers would be jacking up wages across the board to entice unemployed workers. Instead, there are some pockets of wage acceleration, “in leisure and hospitality. A big boost in those wages is the fact that they’re getting more tips now because more people are coming to those restaurants in person.”
Marketplace July 9, 2021 -
“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 -
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 -
The U.S. added 850,000 jobs in June, “far surpassing expectations” and putting the country on pace to reach pre-pandemic levels of health by “the end of 2022,” per The Wall Street Journal and the Economic Policy Institute. Average growth over the last three months came in at 567,000, and unemployment changed little, up to 5.9 percent from 5.8 percent.
The Week July 6, 2021 -
But, as Heidi Shierholz, a former Obama administration economist and now director of Policy at the Economic Policy Institute, pointed out on Twitter, wages for workers in leisure and hospitality “plummeted” last year during the recession, so even with the strong wage growth in those sectors this year, wages are not that much higher than if the pandemic had never happened.
“Over the last three months, leisure & hospitality has added 977,000 jobs—well over half of the 1.7 million total jobs added over that period,” Shierholz wrote. She added that these numbers “are just not signaling a big labor shortage.”
Insider July 6, 2021 -
Government followed behind leisure and hospitality with 188,000 jobs added last month. Heidi Shierholz, senior economist at the Economic Policy Institute, wrote on Twitter specifically about state and local government job gains, which added 193,000 jobs together.
…
Shierholz wrote it is “crucial” that these governments “use their ARP funds to refill those jobs” because there are still around 1 million fewer state and local government jobs in June than before the pandemic.
Business Insider July 6, 2021 -
“It’s been a dozen years since Congress raised the national minimum wage, so the lowest-paid workers in the U.S. economy have seen an 18% pay cut as the cost of living went up over that time period,” Ben Zipperer, an economist at the Economic Policy Institute, told Yahoo Finance. “Congressional inaction is why places like Delaware, Florida, and more than two dozen other states have increased their minimum wage in the last several years.”
Yahoo Finance July 6, 2021 -
“Unemployment insurance is not going to solve care problems. It’s not going to solve health concerns,” said Heidi Shierholz, an economist and director of policy for the Economic Policy Institute, a nonprofit think tank in Washington, D.C. “Cutting [unemployment insurance] is not going to have a huge effect on the labor shortages.”
Pittsburgh Post Gazette July 6, 2021 -
“Many people who lost jobs at the start of the pandemic have been unemployed ever since. As jobs come back they will get work but there is still a big jobs deficit,” said Heidi Shierholz, policy director at the left-learning Economic Policy Institute, in a Twitter thread.
The Hill July 6, 2021 -
Dr Valerie Wilson, the director of Economic Policy Institute’s Program on Race, Ethnicity and the Economy (Pree), warned against treating any one month’s report with too much importance, “The caveat is that subsequent revisions or updates to the numbers could always change what that story is. We always know more in retrospect than we do in any at any single point.”
…
These differences, of course, have been entrenched throughout US history. In particular, Wilson is concerned with “occupational segregation”, which has historically meant that Black and brown workers are disproportionately represented in some industries and not others.
“For example, we know that women – women of color in particular – are more likely to be in low-wage service and those industries are hit extremely hard during a recession,” she said.
Industries, such as leisure and hospitality, continue to falter in regaining their pre-pandemic rates of unemployment.
The Guardian July 6, 2021 -
Reported in an April 21 New York Times article with the headline: C.E.O. Pay Remains Stratospheric, Even at Companies Battered by Pandemic
“Chief executives of big companies now make, on average, 320 times as much as their typical worker, according to the Economic Policy Institute. In 1989, that ratio was 61 to 1. From 1978 to 2019, compensation grew 14 percent for typical workers. It rose 1,167 percent for C.E.O.s.”
Counterpunch July 6, 2021 -
“Unemployment insurance is not going to solve care problems. It’s not going to solve health concerns,” said Heidi Shierholz, an economist and director of policy for the Economic Policy Institute, a nonprofit think tank in Washington, D.C. “Cutting [unemployment insurance] is not going to have a huge effect on the labor shortages.”
Pittsburgh Post Gazette July 6, 2021