Media clips

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• ‘The Great Resignation’: June’s US jobs report hides unusual trend

  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
• The Wealth Inequality Virus Persists

  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
• July 2, 2021
  July 2, 2021
• There’s A Wage Shortage, Not A Worker Shortage

  And they’re refusing to work in shit conditions. The Economic Policy Institute points out that many of the people screeching about worker shortages are restaurant owners. Lots of the businesses struggling to attract workers in Ohio and South Carolina come from the restaurant and hospitality sectors. These business owners are trying to find workers at the same wages they paid pre-pandemic.

  …

  Workers exist for these jobs. UE reports that when Klavon’s Ice Cream, in Pittsburgh, Pennsylvania, raised their wages to $15 an hour, they were “flooded with applicants.” As the Economic Policy Institute says, in a labor market as complex as America’s, there will always be pockets of worker shortages. But right now, “Employers post their too-low wages, can’t find workers to fill jobs at that pay level, and claim they’re facing a labor shortage… whenever anyone says, ‘I can’t find the workers I need,’ she should really add, ‘at the wages I want to pay.’”

  Scary Mommy July 2, 2021
• Over 200,000 workers are seeing a pay bump today as 2 states and DC up their minimum wages

  Over 200,000 workers will see their paychecks grow, according to an estimate by Ben Zipperer of the left-leaning Economic Policy Institute. Of the workers who will benefit, most are women, according to Zipperer; Black and Hispanic workers will see the largest hikes.

  …

  Workers who earn above the minimum wage will likely also benefit from hikes, according to Zipperer. They’ll feel “ripple” effects as their employers adjust pay internally, and could see their own wages increase.

  Insider July 2, 2021
• A solution to the service worker shortage? Eliminate tipping, some experts say.

  As the U.S. economy (and our favorite eateries) reopen, many restaurants are facing a service worker shortage. Saying goodbye to the tipping model could be just the solution, said David Cooper of the Economic Policy Institute.

  “I think [the pandemic] has rightly forced us into this sort of rethinking about job quality and what workers should expect. And that’s created the scenario we’re in now, where employers are struggling to fill these jobs because, generally, they’re just low-quality jobs,” he said.

  Cooper added that the stressors of pandemic-era serving, including having to police mask-wearing or social distancing, as well as the risks of working an in-person job, added more to the plates of low-paid service workers.

  …

  But if the service industry wants to recruit and retain employees, Spriggs and Cooper believe it has to re-evaluate the gratuity model that allows customers to determine the total pay of their employees.

  Marketplace July 2, 2021
• Why The Labor Shortage Might Not Be As Bad As You Think

  Low-wage workers in general were struck most severely by the current recession, as less than 75% of low-wage workers were still working in 2020 as opposed to 95 percent of high-wage earners (or those in the top 25 percent of wage distribution), according to data from the Economic Policy Institute, a nonpartisan policy think tank.

  Yahoo Finance July 2, 2021
• Labor shortage? Wage data sends mixed signals.

  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 2, 2021
• US economy adds 850,000 jobs in June as wages keep climbing

  “Returning workers are earning more (as they should) – nominal hourly earnings of production non-supervisory workers are up 3.67% over this time last year,” tweeted Valerie Wilson, an economist at the progressive-leaning Economic Policy Institute.

  Al Jazeera July 2, 2021
• Economy adds robust 850K jobs in June, exceeding expectations

  “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—labor demand is still the problem,” tweeted Heidi Shierholz, policy director at the Economic Policy Institute, a left-leaning think tank.

  The Hill July 2, 2021
• Wall Street at record high after jobs report – business live

  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)

  …

  Total nonfarm payroll employment rose by 850,000 in June, following increases of 583,000 in May and 269,000, today’s report shows – or around 1.7 million new jobs.

  Shierholz also points out that the recovery is much faster than after the financial crisis — but doesn’t see worrying signs in the wage data:

  The Guardian July 2, 2021
• There’s A Wage Shortage, Not A Worker Shortage

  And they’re refusing to work in shit conditions. The Economic Policy Institute points out that many of the people screeching about worker shortages are restaurant owners. Lots of the businesses struggling to attract workers in Ohio and South Carolina come from the restaurant and hospitality sectors. These business owners are trying to find workers at the same wages they paid pre-pandemic.

  …

  Workers exist for these jobs. UE reports that when Klavon’s Ice Cream, in Pittsburgh, Pennsylvania, raised their wages to $15 an hour, they were “flooded with applicants.” As the Economic Policy Institute says, in a labor market as complex as America’s, there will always be pockets of worker shortages. But right now, “Employers post their too-low wages, can’t find workers to fill jobs at that pay level, and claim they’re facing a labor shortage… whenever anyone says, ‘I can’t find the workers I need,’ she should really add, ‘at the wages I want to pay.’”

  Scary Mommy July 2, 2021
• Over 200,000 workers are seeing a pay bump today as 2 states and DC up their minimum wages

  Over 200,000 workers will see their paychecks grow, according to an estimate by Ben Zipperer of the left-leaning Economic Policy Institute. Of the workers who will benefit, most are women, according to Zipperer; Black and Hispanic workers will see the largest hikes.

  …

  Workers who earn above the minimum wage will likely also benefit from hikes, according to Zipperer. They’ll feel “ripple” effects as their employers adjust pay internally, and could see their own wages increase.

  Insider July 2, 2021
• A solution to the service worker shortage? Eliminate tipping, some experts say.

  As the U.S. economy (and our favorite eateries) reopen, many restaurants are facing a service worker shortage. Saying goodbye to the tipping model could be just the solution, said David Cooper of the Economic Policy Institute.

  “I think [the pandemic] has rightly forced us into this sort of rethinking about job quality and what workers should expect. And that’s created the scenario we’re in now, where employers are struggling to fill these jobs because, generally, they’re just low-quality jobs,” he said.

  Cooper added that the stressors of pandemic-era serving, including having to police mask-wearing or social distancing, as well as the risks of working an in-person job, added more to the plates of low-paid service workers.

  …

  But if the service industry wants to recruit and retain employees, Spriggs and Cooper believe it has to re-evaluate the gratuity model that allows customers to determine the total pay of their employees.

  Marketplace July 2, 2021
• Why The Labor Shortage Might Not Be As Bad As You Think

  Low-wage workers in general were struck most severely by the current recession, as less than 75% of low-wage workers were still working in 2020 as opposed to 95 percent of high-wage earners (or those in the top 25 percent of wage distribution), according to data from the Economic Policy Institute, a nonpartisan policy think tank.

  Yahoo Finance July 2, 2021
• Labor shortage? Wage data sends mixed signals.

  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 2, 2021
• US economy adds 850,000 jobs in June as wages keep climbing

  “Returning workers are earning more (as they should) – nominal hourly earnings of production non-supervisory workers are up 3.67% over this time last year,” tweeted Valerie Wilson, an economist at the progressive-leaning Economic Policy Institute.

  Al Jazeera July 2, 2021
• Economy adds robust 850K jobs in June, exceeding expectations

  “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—labor demand is still the problem,” tweeted Heidi Shierholz, policy director at the Economic Policy Institute, a left-leaning think tank.

  The Hill July 2, 2021
• Wall Street at record high after jobs report – business live

  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)

  …

  Total nonfarm payroll employment rose by 850,000 in June, following increases of 583,000 in May and 269,000, today’s report shows – or around 1.7 million new jobs.

  Shierholz also points out that the recovery is much faster than after the financial crisis — but doesn’t see worrying signs in the wage data:

  The Guardian July 2, 2021
• Families Struggle With Child Care Costs As Life Returns To “Normal”

  Even before the pandemic, child care was known for it exorbitant costs, which vary by state. The average annual cost of child care for a 4-year-old in New York costs $12,358, according to the Economic Policy Institute, a nonprofit, nonpartisan think tank. In Kentucky, it costs $6,411 but is still categorized as “out of reach” for low-wage workers. Overhead costs, liability insurance, licensing fees and labor costs contribute to the overall price tag.

  Forbes July 1, 2021
• Top 10 Cities for Working Parents – 2021 Edition

  Additionally, the state of Arkansas has the third-lowest average annual childcare costs – less than $6,200, according to data from the Economic Policy Institute.

  …

  Average annual childcare costs range from roughly $5,100 to more than $21,600. Using data from the Economic Policy Institute, we calculated average annual childcare costs, averaging the expected annual cost of infant care and the cost for care for a four-year old in each state.

  Yahoo Finance July 1, 2021
• 200+ Groups to Democrats: $6 Trillion ‘Should Be the Floor’ for Climate and Infrastructure Bill

  Led by the Progressive Caucus Action Fund, the Economic Policy Institute, the Institute for Policy Studies, and the Poor People’s Campaign, the joint statement characterizes the $6 trillion framework proposed by Sen. Bernie Sanders (I-Vt.) as the “minimum scale necessary to tackle our nation’s most urgent challenges.”

  Common Dreams July 1, 2021
• Let the Market Fix Labor Shortages

  Yet quickening wage growth isn’t the only hallmark of a shortage. The telltale sign is seeing this trend alongside stalling job growth, as Heidi Shierholz, senior economist and policy director at the Economic Policy Institute puts it. Just look at what’s been happening in the leisure and hospitality sector, among the most bruised by the Covid-19 shutdown. After jobs all but vanished in the throes of the pandemic, we’re starting to see a rebound: In May, the sector created 292,000 jobs, far outpacing other corners of the economy and contributing heavily to the overall increase in nonfarm payrolls of 559,000. June data, to be released Friday, are expected to show still stronger gains. Meanwhile, average weekly earnings have been rising faster than many other industries. In other words, the market is working to resolve a shortage: When employers lift wages, they’re able to attract the employees they need, as Shierholz said in a recent podcast. (She also notes that leisure and hospitality wages are only just meeting pre-Covid levels; they are not too high.)

  …

  Compare that with what happens in the U.S., where the conversation is largely driven by businesses trying to influence policy makers behind closed doors, write Daniel Costa of the Economic Policy Institute and Philip Martin, an economics professor at the University of California, Davis. “While the data are sometimes clear, in many cases, shortage determinations are an inexact and subjective science,” Costa wrote in an email. Without a credible source of information and set of objective criteria, we’re ceding the debate to the loudest lobbyists with the fattest wallets.

  Bloomberg Quint July 1, 2021
• High Unemployment, Openings, Ignite Seasonal Worker Visa Debate

  “Those workers are not free agents that can go work wherever the economy needs them most. They don’t just switch jobs and move on to higher wages if they find a better job,” said Daniel Costa, director of immigration law and policy research at the Economic Policy Institute. Reform is needed for nonimmigrant visas that restrict worker rights, he added—not just H-2B visas, but H-2A visas and L-1 visas, which are for transfers of executives or managers within a company.

  …

  “Historically, employers have pushed for relaxing visas and relaxing immigration policies in order to maintain a low-wage workforce,” he said.

  Bloomberg Law July 1, 2021
• Study: Working From Home A Mixed Bag For Black Workers

  The Economic Policy Institute found that Black workers were less likely to work at home than their white and Asian counterparts. It’s estimated that only about 20% of Black workers can work from home. Black workers are also less likely to work from home regardless of education level.

  NewsOne June 30, 2021
• US restaurant sales are back to pre-pandemic levels, so why isn’t restaurant employment?

  But workers’ leverage may be shortlived, says Heidi Shierholz, an economist at Economic Policy Institute.

  Quartz June 30, 2021
• AFL-CIO’s Former Top Atty Joins DOL To Boost Union Efforts

  The former general counsel of the AFL-CIO has joined the U.S. Department of Labor as a senior adviser in its labor-management standards office, where she will also help the agency implement…[paywall].

  Law360 June 29, 2021
• The pandemic is making a vicious cycle even worse for low-income students

  “The pandemic has exacerbated well-documented opportunity gaps that put low-income students at a disadvantage relative to their better-off peers,” Emma Garcia and Elaine Weiss from the Economic Policy Institute wrote in September. They defined opportunity gaps as limits in access to conditions and resources that enhance learning and development.

  Socio-economic factors are among the biggest drivers of educational success for kids, Garcia and Weiss found in a 2017 study. Children who fall behind in their early education rarely make up the lost ground, they said.

  That can do lifelong damage to people’s wealth: Higher educational attainment correlates with lower poverty rates, according to the Census Bureau. A 2018 paper from the Congressional Research Service showed 78.9% of working-age adults living in poverty in the United States had at most a high school diploma — a much higher percentage than in the general population, where only 56% of people had at most a high school diploma.

  The opportunity gap that Garcia and Weiss warned about always existed — but it got worse in the pandemic.

  “This is not new,” Garcia, who focuses on education policy in her work as an economist, told CNN Business. But the consequences from the pandemic will compound and last beyond just the short-term, she said.

  CNN Business June 29, 2021
• EPI panel, govt. official warn companies want a ‘piece work’ society

  Intentional employer “misclassification” of workers as “independent contractors,” stripping them of minimum wages, overtime pay, jobless aid, workers comp, and the right to unionize, is not just a “gig economy” problem, two advocates, and a top enforcement official warn.

  Instead, it’s an increasing tactic of bosses to degrade and exploit workers from coast to coast. One expert warns if companies succeed in their push to turn all “employees,” now covered by labor law, into not-covered “independent contractors,” the U.S. workforce could turn to a “piece work” society, reminiscent of the garment sweatshops of the 1890s.

  The panel, the first of two convened by the Economic Policy Institute, discussed both the report, Misclassification, The ABC Test, And ‘Employee’ Status and the expensive and successful campaign by two of the most-prominent “Gig” firms, the rideshare companies Uber and Lyft, to get California voters to permanently let them misclassify all their workers as “independent contractors.”

  But the problem goes far beyond Uber and Lyft and far beyond California, EPI reports.

  People's Weekly World June 29, 2021
• Many moms left the workforce during the pandemic. For some, going back isn’t so simple.

  It’s a Catch-22 familiar to many single mothers, says Elise Gould, senior economist at the Economic Policy Institute. “Women are being presented with false choices,” Gould says. “You can’t leave your kid home alone and go to work if you don’t have affordable child care. That’s not a choice that you’re making.”

  The Washington Post June 29, 2021