MARK TWAIN: FATHER OF AMERICAN LITERATURE -- FACT FACTS

ABOVE: Samuel Clemens, aka Mark Twain, was cemented as a premier writer of late 19th century America with his works "The Adventures of Tom Sawyer" and "Adventures of Huckleberry Finn." Find out more about his life and writing in this video.
Showing posts with label jobs. Show all posts
Showing posts with label jobs. Show all posts

Extremism

Dangerous 'Project 2025' Would

Lead to Financial Disaster,

Loss of 8.7 Million Jobs,

New Analysis Finds


    Washington, D.C. (CAP)
— 7/4/2024 Nearly three decades of deregulation opened the door for banks, investment companies, insurers, and other firms to engage in the excessive risk-taking that culminated in the 2007–2008 financial crisis and triggered the Great Recession. Now, extremists from the far-right Heritage Foundation are laying the foundation for another crisis. Project 2025 includes well-documented plans to overturn post-crisis policies that protect consumers, investors, and the stable functioning of financial markets. But it also proposes new limits on regulators’ capacity to step in during periods of instability—specifically, restricting the Federal Reserve’s “lender-of-last-resort” function that allows troubled banks to borrow money quickly. A new Center for American Progress analysis shows how irresponsible this is by calculating the present-day costs of a repeat of the Great Recession.

    This new analysis finds that a comparable financial shock and recession would result in 8.7 million people losing their jobs by 2026 and that employment would not recover to current levels until 2031. On top of this, the loss in real gross domestic product per capita over the next five years would be $7,774.

    “If far-right extremists are successful in enacting Project 2025, the likelihood of a 2007-scale financial crisis would be greater, and this risks economic losses to workers and households that could exceed those in the Great Recession,” said Marc Jarsulic, senior fellow and chief economist at CAP and co-author of the column. “The proposals in Project 2025 makes things crystal clear—far-right extremists care more about bolstering Wall Street’s bottom line than protecting American families.” 
 
    Read the column: “Project 2025 Would Allow Financial Disaster To Bolster Wall Street’s Bottom Line” by Marc Jarsulic and Lilith Fellowes-Granda 

Economic Policy

 Leaders Discuss Implementation

of Biden's Economic 

and Climate Legislation

    Washington, D.C. — (CAP) -- 2/12/2023 - Governors and mayors from across the country joined the Center for American Progress and the Center for Innovative Policy for a summit on Feb. 8 to discuss the economic progress they are making after passage of the Biden administration’s historic economic and climate change legislation.

    The officials outlined how these measures are helping their communities transform to support new jobs and clean energy in the months and years to come.

    Maryland Gov. Wes Moore (D) said President Joe Biden’s vision has translated directly into job growth in his state and around the country.

    “We’re talking about a job growth in two years that we have not seen a president accomplish in four,” Moore said. “That’s facts, that’s numbers—that when we’re talking about brand-new record investments in infrastructure, that’s not just hyperbole. I can tell you as the chief executive of the state of Maryland, that’s real because we’ve been there, we’re putting that capital to work in the state of Maryland.”

    Moore added: “The president is moving full force into not just a reminder to this country of what’s been accomplished over these past few years, but moving full force and helping people understand that we’ve still got work to do. And we’ve got to move in partnership in order to make this happen.”

    Minnesota Gov. Tim Walz (D) discussed how he had just signed into law a measure calling for 100 percent clean energy in the state by 2040. That legislation had both labor and utility companies in the state on board.

    “If we’re going to move to this clean energy economy, Minnesota wants to be there, to be the place where we manufacture, the place where we do the innovation, the place where we implement that,” Walz said. “We can’t be aggressive enough on this because, again, the competition is already global to a point where we’re losing our competitive advantage, especially in those spaces. Minnesota wants to lead in that.”

    Colorado Gov. Jared Polis (D) discussed his state’s investments in clean energy jobs and how that will bolster the economy while mitigating climate change. He said the state would transition to 80 percent renewable energy by the end of 2029 and wants to achieve 100 percent clean energy by 2040.

    “We want to be in the forefront of not only making sure that electric vehicles can access our market but also that we have the charging and infrastructure in place to make them a success and that we are able to promote affordability though tax credits and other mechanisms,” Polis said.

    Polis said he views the transition to clean energy as a change to end the state’s reliance on costly natural gas so that consumers see energy savings. And he stressed the importance of a “just transition” that would help workers from coal power plants, mining, and other legacy fuels get retraining for new jobs.

    “The jobs are different, and the skills are different,” he said. “We need to make sure that we bring people along and that we can square people’s livelihoods in the clean energy future.”

    New York Gov. Kathy Hochul (D) credited the Biden administration with helping to create 536,000 new jobs in her state over the past 1 1/2 years. That includes about 50,000 new manufacturing jobs in upstate New York due to passage of the CHIPS and Science Act.

    “The jobs are starting to come back from the money that we’ve been using from the federal dollars to create those jobs,” she said.

    Hochul added: “We’ve been absolutely joined at the hips with our federal partners, President Biden, our leadership, to bring the infrastructure spending, the climate money, the child care money, and money to build resiliency because of climate change,” she said. “All of it is being spent in New York state very happily by this governor.”

    North Carolina Gov. Roy Cooper (D) said he sees the Biden administration’s economic legislation and the funding it provides as an opportunity for generational change.

    “I am so excited about the investments that we’re going to be able to make,” he said. “We’re going to be laying the groundwork with these generational funds to make sure that we’re building a North Carolina, particularly based on advanced manufacturing, that’s going to provide great-paying jobs.”

    Cooper praised the Biden administration’s legislation for, among other things, capping drug prices, investing in child care so parents can get back into the workforce, and providing money to connect high-speed internet across North Carolina.

    He also praised climate change legislation that will help create jobs in the private sector to build electric vehicles, charging stations, and other infrastructure.

    “We’re so excited about the Inflation Reduction Act because it helps us to fund our EV infrastructure and to coax people into getting electric vehicles,” he said.

    Richmond, Va., Mayor Levar Stoney (D) said his top priorities are dealing with his city’s housing crisis, improving public safety, and helping better the lives of children and families. He praised the American Rescue Plan Act for helping steer federal funds directly to cities, so local leaders can target money to areas where it’s needed most.

    “It gives us the flexibility to innovate and be creative because at the end of the day, it’s cities and mayors who are the front lines,” he said. “I’m grateful that we were able to get that function into the American Rescue Plan Act, and moving forward, it’s my hope that they take a page out of President Biden’s book and empower local governments to make these decisions.”

    Stoney said about half of the $155 million the city received from the American Rescue Plan Act is being used to build new community centers in Black neighborhoods and other communities of color that were historically redlined. Other funds were used to create more than 250 new seats for early childhood education and preschool for the city’s children as well as exploring how to re-connect the historically Black neighborhood of Jackson Ward, that was literally split in half by I-95, to help revitalize the area.

    “This is the largest investment in local government since the Great Society, and I think we’re going to see great results and accomplishments for years and years to come,” Stoney said.

    Washington, D.C., Mayor Muriel Bowser (D) said her city’s biggest economic challenge post-COVID-19 is revitalizing local businesses, closing wealth gaps, and attracting more residents to the city. The economic legislation that President Biden’s administration has steered through Congress is providing a major lift for her and other city leaders to address those issues.

    “I think the president deserves a lot of credit,” she said.

    She said she also urged the administration to think about how to make it easier for cities to spend federal funds.

    “It’s great to have a lot of money,” she said. “What’s not great is not being able to spend it. As we think about policies that help us get policies out the door, we should also think about innovative procurement policy as well.”

    Bowser also praised federal funding for projects that will improve neighborhood walkability, safety, and affordable transportation access.

“These dollars will help us advance planned work on making intersections more safe,” she said.

Click here to watch the event.

Living Wages

Michigan Workers Win 

Minimum-Wage Increase, 

Paid Sick Leave

 
By Brett Peveto, Producer

    MICHIGAN (PNS) - 8/20-2022 - Workers in Michigan won major victories recently as a minimum-wage increase and employer paid sick time program were reinstated by court order.

    In 2018, petitioners succeeded in placing a minimum-wage increase along with an earned-sick-time provision on the November ballot. In turn, the Michigan Legislature passed the measures in September to avoid a vote on the referendums, then in a lame-duck session in December the Legislature amended the bills, delaying the wage increase and denying the full hourly rate to tipped workers. The sick-time provision also was changed.

    Last month, a Michigan Court of Claims judge ruled amending the original bills was a violation of the state constitution, and the $12 minimum wage will now be instituted in February.

    Alicia Renee Farris, chief operations officer of Restaurant Opportunities Centers United, helped organize the ballot initiative and is calling it a victory for Michigan workers.

    "This is really a victory for 685,000 Michiganders that do not make $12 an hour," Farris asserted. "We see that as very important particularly for low-wage restaurant workers."

    The minimum wage for tipped employees is set to gradually increase to $12 per hour by 2024.

    After Judge Douglas Shapiro declared the adopt-and-amend legislative maneuver unconstitutional, the State of Michigan asked for a stay pending appeal. Shapiro denied the request but did delay implementation until Feb. 19.

    Mark Brewer, the attorney representing the plaintiffs, said the delay is due to the scale of the coming changes.

    "This is a massive change. The paid sick time affects every employer in the state," Brewer pointed out. "Minimum wage obviously affects many employers and hundreds of thousands of employees, so the court said, 'Look, you can have a few months to make a transition here to fully implement these laws.' "

    Litigation over the matter has not ended with the Court of Claims ruling, since the state of Michigan will next take its case to the Michigan Court of Appeals. Brewer noted the appeals court has agreed to speed things up.

    "We did get some good news in just the last 24 hours," Brewer emphasized. "The court of appeals has agreed to expedite our appeal, and so we're hopeful to have oral argument in the court of appeals this fall, which would mean a decision early next year."

    Upon implementation, the minimum wage will be indexed to inflation with adjustments made annually so long as the state unemployment rate remains below 8.5%.

    Disclosure: Restaurant Opportunities Center United contributes to our fund for reporting on Civil Rights, Human Rights/Racial Justice, Livable Wages/Working Families, and Social Justice. If you would like to help support news in the public interest, click here.

References:  

Ballot initiative Ballotpedia 2018
Ruling State of Mich. Court of Claims 07/19/2022

Credit: Story published courtesy of Public News Service.

Economic Trends

Small Business Hiring Sees 

Growth in December

Index Points to Strong Employment Rebound

    CLEVELAND-- (BUSINESS WIRE) -- 1/9/2022 - The CBIZ Small Business Employment Index (“SBEI”) reported a seasonally adjusted increase of 1.05% in December, offering a positive sign on the heels of the hiring decline seen in November. The CBIZ SBEI tracks payroll and hiring trends for over 3,700 companies that have 300 or fewer employees, providing broad insight into small business trends.

    “December is typically a month where we see positive hiring trends due to the holiday season, and this month was especially strong,”CBIZ, Inc. Executive Vice President Philip Noftsinger said. “It’s possible that workforce safety confidence was a growth factor earlier in the month prior to the omicron variant becoming a larger headline later in the month.”

    The ADP and Moody’s employment report indicated growth in hiring among small, medium-sized and large companies. Its December reading showed an overall increase of 807,000 private-sector jobs for the month, an improvement from the November report. Small businesses accounted for 204,000 of those new jobs on a seasonally adjusted, month-over-month basis. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.

    The CBIZ SBEI reported hiring growth in all four regions measured. The West (1.95%) showed solid growth but less than the previous month, following its robust economic rebound from delta variant-related closures in the late summer. The Central (2.88%), Southeast (2.25%) and Northeast (1.80%) regions all showed impressive growth as well, reflecting a strong recovery from November’s negative readings for these regions.

    On an industry level, the most notable increases were seen in Insurance, Non-profit, Financial Services, Healthcare, Construction, and Retail. Education and Agriculture experienced hiring declines.

    “The December reading points to a positive indicator that the labor shortage is waning,” Noftsinger said. “The continued increase in COVID-19 cases could cause a slowdown in the momentum we’re seeing, but with the adoption of booster vaccines and the increased availability of treatments to mitigate severe symptoms, employees are likely to feel more confident returning to work.”

    To view an infographic with data from the employment index, see CBIZ.

    Additional takeaways from the December SBEI include:

  • December’s snapshot: 28% of companies in the index expanded employment, 53% made no change to their headcounts and 19% reduced staffing.
  • Industries at a glance: Hiring gains were seen in Insurance, Non-profit, Financial Services, Healthcare, Construction, and Retail. Meanwhile, declines were reported in Education and Agriculture.
  • Geographical hiring: The Central (2.88%), Southeast (2.25%), West (1.95%) and Northeast (1.80%) regions all experienced hiring increases.


    What’s next? Small businesses are growing their workforces despite the labor shortage and pandemic-related economic volatility. In 2022, this momentum should continue as other factors like supply chain issues and stagflation abate. 

    CBIZ is one of the largest accounting and insurance brokerage providers in the U.S. For more information, visit www.cbiz.com

 

U.S. Economy

Major Economic Indictors

     Most Recent U.S. Bureau of Labor Statistics Data


The CPI. Bureau of Labor Statistics graph.
    (RP News) - 12/24/2020 - The U.S. Bureau of Labor Statistics' latest summary of major economic indicators for the United States, as of Dec. 23, 2020, shows a slight bump in prices for urban consumers, as well as a drop in the unemployment rate to 6.7 percent. “These improvements reflect the continued resumption of economic activity that had been curtailed due to COVID-19, though the pace of improvement has moderated in recent months,” the bureau states. 

    The bureau's most recent update and summary:

Consumer Price Index

    In November, the Consumer Price Index for All Urban Consumers rose 0.2 percent on a seasonally adjusted basis; rising 1.2 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy rose 0.2 percent in November (SA); up 1.6 percent over the year (NSA).

Employment Cost Index

    Compensation costs rose 0.5 percent for civilian workers, seasonally adjusted, from June 2020 to September 2020. Over the year, compensation rose 2.4 percent, with wages and salaries rising 2.5 percent and benefit costs increasing 2.3 percent. See: cost index

Employment Situation

    Total nonfarm payroll employment rose by 245,000 in November, and the unemployment rate edged down to 6.7 percent. These improvements reflect the continued resumption of economic activity that had been curtailed due to COVID-19, though the pace of improvement has moderated in recent months. See: employment situation.

Producer Price Index

    The Producer Price Index for final demand advanced 0.1 percent in November, as prices for final demand goods increased 0.4 percent, and the index for final demand services was unchanged. The final demand index increased 0.8 percent for the 12 months ended in November.

Productivity and Costs

    Productivity increased 4.6 percent in the nonfarm business sector in the third quarter of 2020; unit labor costs decreased 6.6 percent (seasonally adjusted annual rates). In manufacturing, productivity increased 19.9 percent and unit labor costs decreased 12.1 percent. See: productivity and costs

Real Earnings

    Real average hourly earnings increased 0.1 percent over the month in November, seasonally adjusted. Average hourly earnings increased 0.3 percent and CPI-U increased 0.2 percent. Real average weekly earnings increased 0.1 percent over the month.

U.S. Import and Export Price Indexes

    U.S. import prices rose 0.1 percent in November following a 0.1-percent decrease in October. Prices for exports advanced 0.6 percent in November, after rising 0.2 percent the previous month. Over the past year, import prices declined 1.0 percent and export prices fell 1.1 percent. See: indexes


Unemployment rate, 2000-2020. BLS graph

Stephen Jellen / Opinion


'Anti-Science' Attitudes May Be

 Symptom of More Practical 

Realities, Lack of Opportunity




By Stephen Jellen 
Commentary 
___________

EDWARDSVILLE, Ill. - 12/22/2020 - Some Americans are obviously disdainful of science, or at least some science. That is hard for those who respect science to understand. To gain insight we might consider the practical effects that science has had on the lives of many Americans. Science has created machines that have taken unskilled workers' jobs. That process is just beginning. 

Views on science and society. Graph courtesy of Pew Research Center.
    Technology has facilitated globalization, allowing jobs to move overseas. Many workers have been recently thrown out of their jobs by the science of epidemiology, which makes them choose between health science and employment. Some have decided to reject the scientific basis of the epidemic in order to make their choice easier.

We should empathize with them. They are literally scrambling for their lives. Science has created new jobs but they are not suitable for many. It has destroyed many old jobs. This has produced a cultural fragmentation based on education and ability to do technical work. Science has thus made some folks vastly richer while many have been made poorer by it.

Scientific expertise can put young people over older folks, breaking a time-honored social protocol. Old skills are less useful now. Old work ethics are less relevant. It is no wonder that many reject science as they double-down on traditional belief systems. Science has made traditional religion seem more like a fairytale.

In having to accommodate a world vastly better explained by science, many Americans have turned fundamentalist in their views, sometimes rejecting science in total. The power of science seems more like a danger to them than a benefit. Thus many cling to their religious traditions defiantly against all evidence, sometimes with outright hatred for that, and for those, which they see as threatening their foundational beliefs. Some Americans rejected electricity and automobiles when those became available at the beginning of the 20th Century. They cling thus yet today, driving horse-drawn vehicles, lighting with kerosene and shunning communications. Their communities remain centered on religious traditions.

It is highly ironic that now the latest iteration of reactionary anti-science relies on the internet received on cell phones to facilitate social reinforcement of selective anti-science ideology. And it is unusual in that it is politicized the way it is. Past reactionaries sought to isolate themselves, to get away from "the world." Today's reactionaries want to dominate the world, to force a specific acceptance of science.

Thus what looks like anti-science may be more about disaffection with social and political developments. These would be economic inequality and the lack of opportunity for many Americans. Thus it might be better to see what looks like anti-science to be a rejection of supply side, trickle-down governance. It might be a reaction to the failure of government to provide effective public education, and to provide labor policy that allows workers to share in the wealth created science that claims to benefit all of mankind. For so long as science gives some vast wealth and deprives others, it shall not be the universal friend of mankind. And it shall not find universal acceptance.

Stephen Jellen is a long-time resident of Edwardsville and a frequent contributor to area publications on matters of politics and social policy.


Misery Index Update

Report: United States Misery Index

Hits High of 13.42

By Steve Rensberry
-------------------------------------------------
   EDWARDSVILLE, IL - July 5, 2020 -- Recent data from the U.S. Misery Index, compiled in May 2020, lists the current U.S. economy at 13.42 on the scale, just one step behind the last major high of 19.72 during the Jimmy Carter Jr presidency. To be fair it has not been a normal year, but the numbers are sobering nevertheless.
   The Misery Index is calculated by combining the unemployment rate with the inflation rate, with the most recent rate derived from an April unemployment rate of 13.3 and an inflation rate of 0.12.
   The Trump administration has fared better in terms of yearly Index averages since 2016, benefiting from an economy on the upswing, but this year has not been good. The first three years of Trump's presidency saw Index values of 6.49 (2017), 6.34 (2018), and 2019 (5.44).
   One group critical of the current administration, in particular its handling of the coronavirus threat, has created a Trump Misery Index, which it says is a composite measure of the current unemployment rate, the current inflation rate, the aggregate number of COVID-19 cases in the United States and the aggregate number of COVID-19 deaths in the United States.
   "The Trump Misery Index is calculated by combining the total number of COVID-19 deaths and cases divided by 1,000 and then adding the sum of the current unemployment and inflation rates," the group states. See: Lincoln Project Trump Misery Index
   The last four years of the Obama administration averaged 8.83 on the Index, with the numbers for each year as follows: 8.86 (2013), 7.80 (2014), 5.40 (2010), and 6.13 (2016). The Obama administration gets credit for reducing the index from 10.15 in 2012 to 5.4 in 2015, before rising to 6.13 in 2016.
   Administrations with the five highest Misery Index numbers have included four Republican administrations and one Democrat, those being the administrations of Gerald R. Ford (12.66), George H. W. Bush (10.07), Richard M. Nixon (17.01), and Donald J. Trump (13.42). The Index hit its highest however, under Jimmy Carter Jr., (19.72).
   The Index's all time high was in June 1980 at 21.98. The all-time low was in July 1953, at 2.97.

U.S. Small Businesses See Employment Gain

   MOUNTAIN VIEW, Calif. - (BUSINESS WIRE) - 10/2/2014 - Intuit Inc. (Nasdaq:INTU) issued its monthly Small Business Employment and Revenue Indexes on Oct. 1. Here are topline results from each of the reports:
   Small businesses added 10,000 new jobs in September, making for more than 715,000 jobs added since March 2010.     Hourly small business employees saw a 0.1 percent decrease in monthly compensation, with average monthly pay reaching equivalent of $2,753, down $3 from August.
    Hourly employees worked an average of 108.3 hours in September, down approximately 24 minutes or 0.4 percent from August’s revised figure.
   Findings come from the monthly Intuit Small Business Employment and Revenue Indexes and are based on data from Intuit Online Payroll and QuickBooks Online Payroll, covering the period from Aug. 24 – Sept 23.
   Revenues per small business grew by 0.3 percent in August, roughly 3.1 percent when annualized. Real estate revenues have grown steadily over the past five months, reflecting an increase in home sales. This index is based on data from QuickBooks Online, covering the period from Aug. 1 – 31.
    “Small business coped with additional demand in August by having its existing work force work more. In September, small businesses hired additional people and paid them more, but asked them to work less. In sum, this makes for two months of mild gains in the small business labor market,” said Susan Woodward, the economist who works with Intuit to create the Small Business Employment and Revenue Indexes. “Small business added 10,000 jobs this month after a flat previous month. We are continuing to see signs of a warming labor market. “Despite last month’s flat employment for small business, there are other signs of further employment recovery. Hours worked were up sharply in August, but down in September; compensation was up in August due to more hours being worked, while the hourly wage remained flat. That gain was only partially lost this month, and the percent of workers working full-time was sharply up last month and reversed this month. In both months the hiring rate was up.”   Geographically, all states tracked individually by the Intuit saw hours worked decline, with the exception of Nebraska. The northern prairie states, around the Great Lakes, and those in New England saw employment declines, with Michigan and Idaho seeing the biggest declines. Utah had the biggest gain.
   The real estate rental and leasing industry saw the biggest rise in revenue among the industries tracked, posting a 0.7 percent increase. The accommodation industry posted the only decrease in revenue per business, with a decline of 0.02 percent for the month.
    “The two industries that had the biggest expansion in revenues per business recently are the two that experienced the biggest hit during the recession: real estate services and construction,” Woodward said. “Real estate services revenues rose 0.7 percent in August; this is an annual rate of 8.2 percent. These figures are seasonally adjusted, so this is not just late-summer home buying.”

Companies Scramble For Critical-Skill Employees

   NEW YORK - (BUSINESS WIRE) - 10/12/2011 - With the U.S. economy still unsteady, most U.S. companies are finding it relatively easy to attract or retain workers, with one major exception -- critical-skill employees. A new survey from global professional services company Towers Watson (NYSE, NASDAQ: TW) and World at Work, an international association of human resource professionals, shows that for the second consecutive year, the number of U.S. companies having difficulty finding and keeping critical-skill workers has increased.
    The Towers Watson Talent Management and Rewards Survey, a study of 316 North American companies, including 218 from the United States, also found that nearly two-thirds of respondents expect their employees to work more hours now than they did prior to the recession and see this trend continuing for some time. Additionally, respondents are concerned about the impact that organizational changes they made in response to the recession are having in areas such as employees’ work/life balance, productivity and willingness to take risks. Most companies have already made or are planning to make additional changes to their reward and talent management, and other organizational, programs.
    According to the survey, nearly six out of 10 U.S. companies (59%) reported problems attracting critical-skill employees this year. That is an increase from 52% last year and 28% in 2009. Forty-two percent also reported difficulty attracting top-performing employees. Additionally, more than one-third (36%) reported difficulty retaining critical-skill employees, an increase from 31% last year and 16% in 2009. Overall, only one in 10 companies is having difficulty attracting or retaining employees generally.
    “Although economic conditions have improved and hiring rates have increased modestly since 2009, companies are experiencing difficulties finding and recruiting employees with critical skills,” said Laura Sejen, global head of rewards consulting at Towers Watson. “Companies are taking longer to fill these positions, and more of them are open. There is clearly a greater-than-normal mismatch between the skills employers seek and those that are available in the marketplace. In short, despite the overall weakness in the job market, companies need a more appealing offering to attract critical-skill employees.”
Employees Working More Hours
    Nearly two-thirds (65%) of U.S. respondents report that employees have been working more hours over the past three years, and more than half (53%) expect this trend to continue over the next three years. Additionally, about one in three (31%) companies said their employees have been using less of their vacation or personal time off over the past three years.
    The survey also found that more than half (56%) of U.S. companies are concerned about the long-term effects that changes they made during the recession will have on their employees’ ability to maintain a healthy balance between work and their personal lives. And more U.S. employers are becoming concerned about employee productivity (39%) and their employees’ willingness to take risks (37%). As a result, almost two-thirds (66%) of respondents have made significant changes in the HR area -- reward and talent management strategies, organizational structure, job evaluation process and competencies -- and many expect to continue to do so.
   “In the short run, having employees work extra hours can increase productivity, but in the long run, extended hours can negatively affect employee well-being and retention,” said Laurie Bienstock, North America leader of rewards consulting at Towers Watson. “Employees at many organizations are already suffering from change fatigue. As a result, when the labor market does recover, companies can expect a sharp increase in voluntary turnover, especially if they do not address employee concerns, and deliver reward and talent management programs more effectively.”
    “Employees generally don't mind doing more with less especially when economic conditions are tough," said Ryan Johnson, CCP, Vice President of Research for WorldatWork. "But when this drags into multiple years, and they start to hear anecdotes of recovery, they become less understanding. At that point, the entire employee value proposition is crucial to retention."
    Release date: 10/10/2011

State board reports 2,000 teacher layoffs in 2010

   By Diane S.W. Lee (Illinois Statehouse News) — 3/21/2011 — More than 2,000 Illinois public school teachers got pink slips last year, and superintendents claim state budget cuts and late state aid payments are to blame.
   The Illinois State Board of Education last week released its annual report of school districts statewide, showing public schools in 2010 laid off a total of 2,102 tenured and non-tenured teachers. That was 664 more layoffs than in 2009.
   However, 42 other school districts did not submit data last year, including the Chicago School District, meaning the number of teacher layoffs are likely higher than reported, according to ISBE spokeswoman Mary Fergus.
    “We know that it can mean a little less attention in the classroom,” said Fergus. “It can mean students aren’t getting access to some really great instruction that can enhance their education.”
The report also shows that since 2008, tenured and non-tenured teaching positions that were eliminated had increased from 39 percent to 66 percent in 2010. More non-tenured teachers were shown the door than tenured ones last year than in previous years.
    Schools are getting less money and are having to lay off teachers as a result of budget cuts, Fergus said.
    “General state aid has gone out on a timely basis, but a lot of the mandated categorical payments have been delayed,” Fergus said. “We’ve been running about a billion dollars behind in some of those payments at the state level, because of this very national recession that we’re in.”
   General state aid is the state’s largest education funding program, and categorical aid is state and federal money given to local school districts for special education programs.
   Crystal Lake School District lost more than $5 million in state funding in the past few years, said chief financial officer Susan Harkin. 
    “We certainly don’t have other avenues to really go out and raise more money, and certainly we aren’t in an environment to raise taxes, specifically, because that seems to be the only place we can go to,” Harkin said. “And for our situation, when we are 75 percent of budget in salaries and benefits, you really have to look at that line item to find some significant reductions to offset that larger loss in revenue.”
   As a result, the school district had to reduce staff by offering early retirement to teachers and leaving those positions unfilled, Harkin said. Fifteen teachers took early retirement last year, and 22 more positions will be left unfilled this year, she said. The district’s school board worked closely with the teachers’ union to freeze pay this year to prevent future reductions, she said.
    “Had they not worked with us to negotiate what we felt was a fair contract,” Harkin said, “we would have had to get into the layoff mode that a lot of school districts are in right now.”
   Kaneland Community School District had to work hard to prevent layoffs last year, because six non-tenured support positions were cut in 2009, said Superintendent Jeff Schuler.
   “Last year, we did reduce a number of folks, but then we worked with our teachers’ union to restructure the salary agreement,” Schuler said. “And, so that wound up preserving the jobs last year.”
    The school district can withstand late payments, he said, but budget cuts are more harmful because it is harder to replace lost revenue.
    “Quite honestly we already run on a pretty lean and a pretty efficient budget,” Schuler said. “And so anytime that we learn that we are going to get less revenue in the next year, that’s not going to be good for us, there’s no doubt about it.”
   Story courtesy of Illinois Statehouse News. Originally published 3/18/2011

Small Business Monthly Employment Index Up

   CLEVELAND -(BUSINESS WIRE) - 3/6/2011 - The February CBIZ Small Business Employment Index, a barometer for hiring trends among companies with 300 or fewer employees, increased by .25 percent through the month, after posting a decrease of 2.62 percent in January; almost a 3 percent upswing in net month over month. 
   “This month’s data shows a move back to positive hiring trends, after what we believed to be a seasonal decline in January. While the number isn't as high as we would like to see, it is representative of where we believe the cautious small business employer is as it relates to hiring,” CBIZ Payroll Services Unit President Philip Noftsinger said. “As we continue to move into 2011, the small business owner will continue to carefully watch demand factors and the overall economy to gauge whether the long-term investment in human resources is a safe bet.”
    Additional take-away points from the February data set include:
  • At-a-glance: The CBIZ Index focuses on hiring trends at small companies. The data shows that 24.7 percent of the companies surveyed increased payroll, while an additional 52.5 percent maintained headcount.
  • Large verses Small: Small businesses are often cited as the “engine of our economy,” as they create the majority of employment opportunities in the country. Large companies, described as those with more than 500 employees, often lag their smaller counterparts (small businesses and entrepreneurs) in terms of the speed of growth and hiring. This trend is expected to continue as the small business owner is able to stay nimble in the face of economic headwinds.
  • What to watch: While some might cheer any increase in hiring, and a gain against the high unemployment rate, additional layoffs at the federal level are likely coming in the months ahead as cost-cutting efforts are expected to begin in order to control the national deficit.
    “At present, small business owners are hesitant to take large risks as they continue to gauge needs of their customers, monitor big business activity in their backyards and what is to come next in terms of tax and healthcare policies,” Noftsinger said.
    Currently, CBIZ Payroll Services manages payroll services for approximately 3,000 businesses that employ fewer than 300 people. The sample reflects a broad array of industries and geographies corresponding to the markets across the United States where CBIZ provides services.


Repeal of Construction Plan Worries Lawmakers

   By Diane S.W. Lee and Melissa Leu - (Illinois Statehouse News) - 1/30/2011 - Illinois state construction and building projects may be in for a long haul.
   An Illinois Appellate Court on Jan. 26 threw out the state’s multi-year, $31 billion capital program, leaving local lawmakers concerned.
   In addition to funding construction projects, Public Act 96-34 legalized video gaming in certain establishments, allowed for privatization of the state’s lottery, hiked taxes on such items as beverages and candy and increased liquor taxes. The court ruled that it was “void in its entirety.”
   W. Rockwell Wirtz, president of the Chicago-based alcohol wholesaler Wirtz Beverage Illinois, brought the case to the appeals court, alleging it violated the Illinois Constitution’s single subject rule.
   The single subject rule, also called the “uniformity clause,” requires that legislation dealing with appropriations be limited to one subject.
    One Illinois lawmaker flat out disagreed with the ruling.
   “I think the courts have this wrong. It’s clearly a single subject,” Sen. Mike Jacobs, D-Moline, said. “The single subject is raising capital for the state, so the state can move forward on economic development projects.”
   Sen. Dave Syverson, R-Rockford, said “Nothing is going to change in the end. I think the court is just saying their interpretation is that we need to follow a stricter single-subject rule.”
   The capital program was a major initiative of Gov. Pat Quinn’s first year in office, aimed at creating jobs and investing in the state’s infrastructure.
   State Rep. Dan Brady, R-Bloomington, said he was disappointed with the court’s ruling on a measure he called a “jobs bill.”
   “When you now say that the funding in the legislation itself is unconstitutional, you put a choke hold on those jobs and the state and the economy,” Brady said. “This whole jobs bill … was directed to stimulate the economic engine of the state of Illinois and put people back to work in this high unemployment time.”
   The Illinois Attorney General’s office plans on filing an appeal and a motion for an immediate stay on Thursday, spokeswoman Robyn Ziegler said. A stay will allow the program to continue as usual.
   Quinn appeared to be hoping for the best.
   “We would expect the Supreme Court to rule on the request for a stay in the very near future,” Quinn said in a written statement released Wednesday.
   The Legislature now faces two options — wait for the Supreme Court’s decision or break down the measure into smaller components and pass the plan separately when both chambers reconvene on Feb. 2.
   If that doesn’t work, lawmakers will need to look for a different funding source for capital projects, Rep. Jil Tracy, R-Mt. Sterling, said.
   “There [are] challenges — because there are different players of this General Assembly — but I’ve got to believe that across party lines, and across geographic lines, and everything else, we recognize that Illinois has got a crumbling infrastructure that so desperately needs attention,” Tracy said.
   But the clock is ticking.
   “We’re anticipating a spring construction season with projects that are being funded by this capital bill,” Brady said. “And that is of great concern to me, that there is now a roadblock that has been thrown up to move forward with this very needed jobs bill in the state.”
   Capital projects already in progress are expected to continue as scheduled, which is a relief to one southern Illinois lawmaker.
   “You got a real asset,” Sen. John Jones, R-Mount Vernon, said. “The governor has some discretionary movement around here, so he can use money out of his own revenue fund to keep the capital bill moving forward.”
   Jacobs echoed that concern.
   “Clearly raising revenue is never easy,” Jacobs said.
   Note: originally published Jan. 26, 2011. Story courtesy of Illinois Statehouse News.

Survey: U.S. Base Salary Increases on the Rise

   PHILADELPHIA - (BUSINESS WIRE) - 1/3/2011 - U.S. employees can expect median base salary increases of 2.8 percent in 2011, according to a new Hay Group survey released on Jan. 3. This compares to median actual base salary increases of 2.4 percent in 2010. Planned increases in 2011 are also at 2.8 percent for management/professional and support positions. Executives and skilled trade jobs come in slightly lower at 2.7 percent.   
   “Relatively speaking, a forecasted median 2011 base salary increase of 2.8 percent is good news for employees who, over the past two years, saw the lowest salary increases in decades,” Hay Group’s North American Reward Practice Leader Tom McMullen said. “Hay Group’s survey also points to a positive trend in organizational staffing. We found that the number of organizations increasing their staffing levels is double that of organizations that are decreasing their staffing levels.”
    Hay Group’s research also indicates that many of the cuts organizations have made to labor costs due to the recession have already happened. The percentage of organizations using or considering significant labor cost reduction items is considerably lower than data reported 18 to 24 months ago.
    The percentage of organizations using or considering the following labor cost reduction actions:
  • Pay freezes: 18 percent
  • Reduced retirement benefits: 17 percent
  • Other reduced benefits: 15 percent
  • Decreasing staffing levels: 10 percent
  • Job sharing: 9 percent
  • Furloughs: 7 percent
  • Reduced working hours: 5 percent
  • Salary cuts: 4 percent
    One exception to this trend is the continued emphasis on increasing employee co-pays and scaling back on employer paid coverage. Nearly 50 percent of organizations report either actual recent increases in employee co-pays (or reduced employer paid coverage), or that they are considering doing this in the near future.
    “Despite the optimism in our latest data, the contraction in the U.S. economy will not be reversed overnight, and neither will the return to the 3.5 percent to 4.5 percent base salary increases employees were used to receiving for much of the last decade,” McMullen said. “Along with modest base salary increases, we will likely see a continued emphasis on variable pay programs, both incentives and bonuses, as organizations emerge from the recession. Organizations are willing to pay for results, but only if they get those results.”
    An area of concern revealed in the data is the lack of differentiation in base salary increases between top performers and average performers. Top performers are reported to receive a median 3.1 percent increase versus the 2.8 percent increase reported for the typical employee.
    “Organizations have a difficult time differentiating pay increases when the pot of money gets smaller,” said McMullen. “Couple this with the ineffectiveness of many line managers in assessing employee performance and undifferentiated pay is the outcome. Managers have an opportunity to utilize their suite of ‘total’ reward programs – all of the financial and non-financial rewards that the organization provides – to reinforce the link back to individual and team performance.”
    Hay Group’s forecast results are based on the latest data available from Hay Group’s U.S. database, provided by 468 U.S. organizations in November 2010. Typical respondents to the survey include compensation professionals in the Human Resources departments of small to large size U.S. organizations across a wide range of industries. Hay Group’s core compensation database represents compensation practices for almost 3,000 companies and over 6 million employees.

Barlow Survey: Unemployment to Remain High

   MINNEAPOLIS - (BUSINESS WIRE) - 11/11/10 - With poor past results and weak expectations for the future, small businesses are not preparing to grow employment or capital expenditures. This can be seen reflected in their estimates of when unemployment will return to a more normal level of 5.5 percent.
   Barlow Research’s Fourth Quarter Economic Pulse shows over one-third of small businesses (sales $100K to $10MM) and one in five middle market companies (sales $10MM to $500MM) believe that elevated unemployment is the new normal. For the remaining businesses, the median estimate for a return to a normal level of unemployment is 2013.
   High unemployment could mean continued low interest rates. With many financial institutions using interest rates on government debt as an earnings credit on business deposit accounts, Barlow Research estimates through its Value of the Customer model that a financial institution could see a revenue loss of 25-30 percent annually from the average small business customer when compared to a normal interest rate environment.
   With a loss of 30 percent of revenue, it will be important to discover ways to return the lost profitability. Some banks will recuperate revenues with increases in fees on accounts and transactions.
   These potential fee increases may create opportunities for cost-conscious banks to attract new customers. When small businesses are asked why they plan to change banks in the next 12 months, the top reason was increased fees and rates.
   During Barlow Research’s Economic Pulse web cast, guest panelists were asked how they expect increased profitability in the commercial banking segment.
  “We expect to see consolidation in the industry," Scott Peterson of Deluxe Corporation said. "The four largest institutions (Wells Fargo, Bank of America, JPMorgan Chase, Citicorp) may not be able to participate due to deposit caps, but everyone else with a solid balance sheet is likely considering consolidation as a strategic option. In a flat economy, cost-driven, scale economies offer a path to profit growth.”

Quinn's Job Announcement Not in Latest Report

----------------------------------
    By Jennifer Wessner    
  Illinois Statehouse News
----------------------------------
   SPRINGFIELD –10/23/10 - If you listened to Gov. Pat Quinn on the stump this week, you heard him hand out over $300 million in and create almost 5,000 jobs. But those job numbers don’t add-up with the latest jobless report in Illinois.
   Quinn traveled to Moline, Rochelle and Chicago this week announcing state projects, and new jobs at each stop.  The money for the new projects is from Illinois’ $30 billion statewide construction plan that lawmakers approved back in 2009. The jobs from the new project appear to be scattered across the state, and across the calendar.
   On Wednesday the governor announced the release of $270 million dollars to 18 school districts around the state for the new construction. Quinn said the projects would “be creating 3,700 new construction jobs to area residents.”
   But many of those 18 districts said they started work on their projects months ago, and some are nearing completion.
   Illinois latest jobless report shows a jump in construction jobs, but not nearly the number of jobs Quinn touted this week.
   September’s job numbers show 700 new construction jobs were created last month.
   Annie Thompson with Governor Pat Quinn’s office said the new jobs are not included in the September jobless report and said she doesn’t know if it will be included in the October report.
   No one seems to know if the numbers by the Governor’s count are new jobs, old jobs, or current jobs.
Beth Spencer, communications director from Illinois AFL-CIO, said it doesn’t matter if the jobs were created or will be created.  The important part is that people are going back to work.
   “Part of the beauty of being a sitting governor is it’s your prerogative to make these announcements and it’s his pleasure and his prerogative. We’re just excited that it’s happening.”
   In the manufacturing sector, Quinn announced 250 new jobs at a new rail car manufacturing facility being built in Rochelle.
   Greg Baise, president of Illinois Manufacturing Association, said the timing of the job creation claims is not surprising.
   “It’s not unusual for governors to make claims like that, especially 12 days before a gubernatorial election,” Baise said. “So I guess we give governor’s a little latitude with these kinds of things.”
   Greg Rivara, spokesman for the IDES, said there is real improvement in Illinois.
   “[The state] added 8,600 jobs in the month of September and for the year so far Illinois has added 50,700,” Rivara said. “So we’ve had some positive economic job growth in the state. At the same time the unemployment rate has gone down. The unemployment rate fell for the sixth straight month to reach 9.9 percent.”
   Eleven thousand 800 people did lose their job in September, but Rivara said that was offset by 20,900 people finding jobs in September. Illinois’ unemployment rate is still slightly higher than the national rate, which is sitting at 9.6 percent.  Thompson with the governor’s office is quick to say that Illinois has added over 50,000 new jobs over the past six months.
   Story courtesy of Illinois Statehouse News. (Released Oct. 21.2010)

Questions Surround New Jobless Rate Report

By Steve Rensberry
srensberry@rensberrypublishing.com

   (RPC) - 7/9/2010 - A drop in Michigan's unemployment rate to 13.6 percent this past June, as noted in the United States Department of Labor's latest report, was good news for the state in at least one respect.
   It knocked it off the list as the state with the highest seasonally-adjusted unemployment rate in the nation. But while Michigan's rate remains significantly above the national average of 9.7 percent, Nevada now claims the highest at 14 percent. Illinois was at 10.8 percent for the month, better than what it has been and lower than Michigan's, but still a fair amount higher than the national average. Michigan has been hit hard by declines in the auto industry. Illinois has, well, been hit by a burgeoning deficit and overall budgetary strife.
The Labor Bureau's report is available here: Labor Bureau report
   You can expect a follow-up from this writer on precisely "why" Illinois' unemployment rate is so high. Can we blame it all on the state's budgetary woes? Is it all due to politics and corruption? Everyone's got an answer but proof has been in short supply.
   Here are two paragraph's from the Labor Bureau's report which provide some perspective on the issue. In addition to persons who are defined - strictly speaking - as "unemployed," there as many or more who are "marginally attached," "totally discouraged," or simply "overworked, stressed out and underpaid" to the point of being in a state of learned helplessness. How many have given up? How many are "double dipping, " working under the table but claiming they're not?
   According to the Bureau:
    "In June, about 2.6 million persons were marginally attached to the labor force, an increase of 415,000 from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.
    "Among the marginally attached, there were 1.2 million discouraged workers in June, up by 414,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.4 million persons marginally attached to the labor force had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities."
   There is one key difference between Michigan and Nevada which makes any talk of percentages and rates fundamentally risky. Michigan has a population of approximately 10 million and Nevada's is about 2 million. Even though Nevada now has a higher rate, there are still many more people unemployed in Michigan (more than 650,000) than in Nevada (less than 200,000).
   (Photo: Steve Rensberry stands outside the Lansing Police Headquarters building in Lansing, Michigan, recently, and a stone's throw from the Michigan State Capital building. Around the corner was a line of picketers protesting state cuts in education funding.)

Fight Over Incentives, Tax Breaks, Isn't the First

By Steve Rensberry
srensberry@rensberrypublishing.com

   (RPC) - 7/5/2010 - One hundred and fifty million dollars. That's the kind of money in the form of tax breaks Missouri Gov. Jay Nixon and some state legislators are talking about as an incentive to get Ford Motor Company to put its factory in Claycomo to good use in rolling out the company’s new line of vehicles.
   As of Monday, July 5, the package remained in committee in the Missouri Senate.
   Union leaders are fearful the 3,700 workers at the plant will be out of work by year's end. Nixon is pushing for plant upgrades they say are necessary to build the newer Ford models. And the very same arguments heard in every other incentive deal proposed anymore can be heard in this debate, along with the customary allegations of committee stacking.
   Can the state afford to be giving out $150 million in tax breaks in the face of a $1 billion shortfall? That's the "billion" dollar question, being asked by critics. Should Ford be the sole recipient of incentives created with the public purse, or would the state be better off expanding such incentives to everyone as it tries to strengthen the economy?
   Republican State Rep. Bryan Pratt from Blue Springs, Mo., who was at one time on that very Senate committee, makes that exact argument. (1)
   For the record, in 2003, the company was offered an incentive package which consisted of more than $25 million in various kinds of aid and tax breaks to keep its plant in Hazelwood, Mo., up and running. It closed in 2006 before receiving only a small portion of those incentives. Chrysler's operations in Fenton drew incentive proposals of an even larger number, more than $85 million in total. Chrysler's last assembly line in Fenton shut down in the summer of 2009. Finally, state legislators gave their stamp of approval to as much as $240 million in tax credits to Bombardier to build airplanes at a plant in Kansas City. It wasn't enough. (2)
   Ford Motor Company is currently the fourth largest automobile manufacturer in the world in terms of production volume. But despite its size, market share in the United States has plummeted from about $25 percent in FY1995 to only about 5.5 percent in FY 2009. More than 40,000 employees have been cut from the company's payroll in the past three years. The company stock value stood at $10.28/share as of Tuesday, down from a high of $14.46 on April 26.
   (1) Tess Koppelman, Fox 4 - Ford Tax Incentive Package Stalled in Missouri Senate
   (2) David A. Lieb, The Kansas City Star - New session, new crisis for Missouri Jobs