Charlestown, MA – Elizabeth Warren, Democratic Senator from Massachusetts who is seeking the Democratic nomination for president, laid out her vision of economic patriotism, calling for using new and existing tools to defend and create quality American jobs and promote American industry. Warren will continue to release individual plans reflecting how economic patriotism should shape our approach to specific parts of the American economy. She released the first plan: A bold $2 trillion investment of federal money over 10 years in American green research, manufacturing, and exporting — which includes ambitious new ideas to link American innovation directly to American jobs, and focuses on achieving not only the ambitious domestic emissions targets in the Green New Deal, but also spurring the kind of worldwide adoption of American-made clean energy technology needed to meet the international targets of the Green New Deal.
The plan is designed to ensure that American taxpayer investments in combating climate change result in good American jobs. The plan makes a historic $400 billion investment in clean energy research and development, and includes a provision that any production stemming from that federally-funded research should take place in the United States. It also makes a massive $1.5 trillion commitment to federal procurement of clean, green, American-made products over the next 10 years, and requires that all companies that receive federal contracts pay all employees at least $15 per hour, guarantee 12 weeks of paid family and medical leave, let employees exercise collective bargaining rights, and maintain fair schedules at a minimum. According to an independent analysis from Mark Zandi, chief economist of Moody’s Analytics, these provisions ensure that Warren’s Green Manufacturing Plan would boost economic growth and create more than a million new jobs right here at home.
Warren’s plan also includes a Green Marshall Plan — a commitment to using all the tools in our diplomatic and economic arsenal to encourage other countries to purchase and deploy American-made clean energy technology. It creates a new federal office dedicated to selling American-made clean, renewable, and emission-free energy technology abroad, with a $100 billion commitment to assisting countries to purchase and deploy this technology — supporting American jobs while supplying the world with the clean energy products needed to cut global emissions.
Warren’s plan also identifies specific cost offsets that, according to the Moody’s economic analysis, cover nearly the entire cost of her plan: her Real Corporate Profits Tax, ending subsidies for oil and gas companies, and closing tax loopholes that promote shipping jobs overseas.
Warren’s Green Manufacturing Plan comes after her Public Lands Plan, two in a series of proposals as she continues to lay out her vision for how we implement the Green New Deal.
“The climate crisis demands immediate and bold action. Like we have before, we should bank on American ingenuity and American workers to lead the global effort to face down this threat — and create more than a million good jobs here at home,” Warren said.
Read more about Warren’s vision of Economic Patriotism here.
Read more about Warren’s Green Manufacturing Plan here.
Obama Administration initiatives like TechHire have contributed to the record job creation and are in strong contrast to the feeble “score” Donald Trump is touting in retaining 800 jobs at Carrier Air Conditioners by throwing $7 million in tax incentives, paid for by Indiana citizens. It should have been a model to be continued and expanded. In contrast to Trump’s corporate welfare approach – which will be manifest in massive corporate tax cuts which will have to be paid for by working people – job-training programs like Obama’s would have helped those who are being displaced by advanced manufacturing technologies and the transition to clean, renewable energy enterprises, capturing more of the 5.5 million jobs that employers are having difficulty filling. Here’s yet another Fact Sheet of what America will lose with the incoming Administration. – Karen Rubin, News & Photo Features
FACT SHEET: Progress and Momentum in Support of TechHire Initiative
In March 2015, the President launched the TechHire initiative based on a simple idea: Building a pipeline of tech talent can bring new jobs to local economies, facilitate business growth, and give local residents a pathway into the middle class. To build such a pipeline, TechHire addresses employers’ great need for technology talent with emerging models for quickly training people with limited ingoing technology skills to be job-ready in months, not years.
Today, there are nearly 600,000 open IT jobs across all sectors—more than two-thirds of which are in fields outside the tech sector, such as manufacturing, financial services and healthcare. These jobs pay one and a half times more than the average private-sector job, and training takes less than a year with emerging programs like “coding bootcamps,” free open data trainings, and online courses like the Department of Commerce’s Data Usability Project and massive open online courses (MOOCs) by the Federal government, academic institutions, non-profit organizations, and the private sector.
Since its launch, TechHire communities across the country have piloted fast-track training programs designed to give people skills that are in high demand by employers. So far over 4,000 people have been trained and connected to work opportunities with local employers, earning average salaries of well over median income. Today, U.S. Chief Technology Officer Megan Smith announced how private organizations will seize on this progress with new steps to meet the scale of the opportunity.
Expansion of TechHire to over 70 Cities, States, and Rural Areas. Earlier this spring, we announced that communities had exceeded the President’s goal of doubling the size of the TechHire initiative, reaching a total of 50 communities. Yet even after we made the announcement, new communities continued expressing interest to participate—so today, we are announcing 20 new communities joining the TechHire initiative, working with about 500 employers (and counting). As of today, communities in 39 states, plus DC and Puerto Rico, have joined TechHire.
Growth of the TechHire Action Network. Today, we are announcing a partnership between Opportunity@Work, an independent social enterprise, and the U.S. Department of Education to take the lead in continuing to support, organize and grow the more than 70 cities, states, and rural areas participating in the TechHire initiative.
TechUP’s Include.io 27-City Roadshow 2017. TechUP | WeTechUP.com is launching the Include.io 2017 Roadshow across 27 cities in the United States to ignite 100,000 diverse and non-traditional tech talent and help 1,000 companies build their best teams.
The Challenge and Opportunity
People Need Opportunities to Retool and Retrain for Good Jobs More than Ever
Over the past decade, towns across America have experienced shifts in prevalent industries and jobs due to rapidly evolving technologies and other factors. These changes have too often made workers’ skills less relevant, impacting their employment options and, in some cases, leading to spells of unemployment that make it difficult for families to meet even their most basic of needs.
When workers lose their jobs or get stuck in lower-wage jobs because of local economic shifts due to no fault of their own, they should have clear pathways to the middle class. Technology jobs can offer this pathway. Nearly 40 percent of these jobs do not require a four-year degree. In recent years, there has been a proliferation of fast-track tech training programs like “coding bootcamps” that prepare people with little technical know-how for tech jobs, often in just a few months. A recent survey from Course Report found that bootcamp graduates saw salary gains of 38 percent (or about $18,000 annually) after completing their programs.
The U.S. is Massively Underinvesting in Training for Jobs in Technology and Other In-Demand Fields to Meet Employers’ Needs
In the face of a large and growing need of companies and workers to retool and retrain, the U.S. is massively underinvesting in job training programs. The federal government’s largest job training investment program only trains about 180,000 U.S. workers per year. America spends 0.03 percent of GDP on training while other countries are investing nearly 20 times more. And in spite of the evidence that apprenticeships are one of the most effective training tools, fewer than five percent of workers in the U.S. train as apprentices, relative to 60 percent in Germany.
In early 2010, there were 14.4 million unemployed Americans. Current funding levels would only allocate $212 per person for training and reemployment services, an insufficient amount compared to a $1,700 average semester cost for a community college. During times of high unemployment in 2009, many states reported training waiting lists of thousands of people long due to funding gaps.
Training workers in the US for 21st-century jobs will require a significant increase in investment from current levels, which are far below Germany and other European countries. This investment would benefit our businesses, our workers, and our economy by focusing on technology and other in-demand skills that are critical to fill existing jobs and attract and create new jobs in communities.
Expansion of TechHire to over 70 Cities, States, and Rural Areaswith 20 New Communities Signing on Today
The TechHire initiative began in March 2015 with 21 communities, and today it has grown to over 70 communities working with 1,500 employers on three key actions:
Opening up recruiting and hiring pathways for people without traditional credentials who can demonstrate that they have the skills to succeed in a tech job regardless of where those skills were attained.
Recruiting, incubating, and expanding accelerated tech learning programs – such as high quality coding bootcamps and innovative online training – which enable interested, unexperienced students to rapidly gain tech skills.
Connecting people to jobs by investing in and working with organizations that can vouch for those who have the skills to do the job, but who may lack the typical profile of education and experience.
20 New TechHire Communities Announced Today
Today, the following 20 communities are joining the TechHire initiative:
Alachua and Bradford
Arizona (State of)
Carroll County, MD
El Paso County, TX
Howard County, MD
Oklahoma City, OK
Santa Fe and Northern New Mexico
Tampa Bay, FL
Trenton City, NJ
A detailed summary of each community can be found at the end of this document.
Growth of TechHire Action Network
Opportunity@Work, an independent social enterprise, will partner with the U.S. Department of Education and others to continue to support TechHire communities to implement, grow, amplify, and sustain their TechHire initiatives locally and across the country and organize the Action Network. Key goals of TechHire and the Action Network include:
(1) Connecting employers to nontraditional, often overlooked, and more diverse tech talent and lifting up best practices from model companies.
(2) Aggregating resources and partnerships to help underrepresented groups access and progress on tech career pathways.
(3) Recruiting new TechHire communities and partners across sectors to support TechHire and advance the goal to expand access to fast-track tech training for underrepresented groups.
(4) Developing and collecting tools and resources on TechHire.org to support job seekers, employers, educators, and community partners.
(5) Working with communities to identify and leverage federal, state, local, and philanthropic funding more effectively to support TechHire activities and accelerated tech training.
(6) Expanding the learning network of TechHire leaders across the country, convenenational and regional events to promote collaboration among TechHire hubs, share best practices, and troubleshoot common challenges.
(7) For more details, visit the TechHire.org page.
TechUP’s Include.io 27-City Roadshow 2017
The TechUP + Include.io roadshow will bring together TechHire partners, technologists, recruiting leaders, and local community innovators to showcase the depth and breadth of incredible, diverse tech talent across the Unites States. Each city event features tech demos, workshops, and a career fair to highlight the next generation of technologists, thought leaders, and scale human connections. Their goal will be to spark local tech ecosystems, build momentum around inclusion, fill open tech jobs and change the face of technology.
Summary Descriptions of the 20 Communities Joining TechHire Today
We are pleased that communities continue to spread the TechHire initiative across the country, and today we announce an additional 20 communities who have developed cross-sector coalitions to train workers with the tech skills they need for the open tech jobs that local employers are seeking to fill. A summary of each of the communities is below:
Alachua and Bradford Counties, FL
In Alachua and Bradford counties, Santa Fe College in Gainesville, FL, CareerSource of North Central Florida (CSNCFL), the Gainesville Area Chamber of Commerce, and the North Florida Regional Chamber of Commerce will collaborate with Gainesville Dev Academy and others to train and place at least 300 individuals into programming and app development jobs by 2020. This program will help serve local tech jobs across all sectors, including local tech companies like Immersed Games, MindTree, Onward Development, NextGen, and Verigo.
Led by the Anchorage Economic Development Corporation, the Anchorage Mayor’s Office will work with Anchorage Community Land Trust, Code for Anchorage, Future Coders of Alaska, Lynda.com, Coursera, and other programs to train and place over 500 workers into tech jobs by 2020. Once trained, program graduates will fill the needs of local employers including GCI, Municipality of Anchorage, Resource Data. Inc, and PangoMedia, as well as help retain Anchorage’s top talent. To help connect graduates to jobs, the Alaska Department of Labor aims to revamp the interface for the state job-seeker platform.
Arizona (State of)
The State of Arizona Office of Economic Opportunity will leverage a “No Wrong Door” approach to recruit disconnected youth and nontraditional candidates into tech training and jobs across industries from aerospace & defense to financial services. The Arizona Tech Council, Arizona’s premier trade association for science and tech companies, will help leverage the resources of the tech community to focus on expanding tech talent, along with the Greater Phoenix Chamber of Commerce and other local organizations. In partnership with the University of Arizona and other local training providers, TechHire Arizona aims to train and place over 100 individuals across southern Arizona and Maricopa County over the next year, which is slated to increase to well over 500 individuals across Arizona by 2020.
TechHire Bellevue will bring together local employers, government and workforce development resources, with educational support from Coding Dojo and Bellevue College to facilitate training and hiring of local talent into tech jobs. The TechHire effort aligns with local employers’ missions to increase workforce diversity. Examples include Microsoft’s LEAP and Civic Tech programs, as well as Expedia, which has hired nearly a dozen Coding Dojo graduates to date. TechHire Bellevue will specifically target under-served populations locally, including minorities, veterans and the homeless, to help them learn and connect with local tech jobs.
A regional consortium of Boston employers and training providers are blazing the path to IT jobs, led by the Boston Private Industry Council (PIC), the City’s workforce development board, and SkillWorks, a regional funders’ collaborative. Companies from a range of sectors—including healthcare, education, government, technology, and finance—will support the initiative. TechHire Boston plans to more than double the number of high school Tech Apprentices from 100 to 250 and increase the number of individuals connected to IT-related jobs to 500 by 2020.
Carroll County, MD
Carroll County employers, training providers, and community organizations are uniting to train and employ more than 200 local tech workers by 2020. Led by Carroll Community College, the Carroll Technology Council and the Mid-Atlantic Gigabit Innovation Collaboratory, Inc. (MAGIC), a broad group of partnering organizations will connect local participants in leading-edge tech training programs to a network of over 520 county employers.
CareerSource Central Florida is developing a coalition across sectors to train and place 100 people within the year and 400 people by 2020 into tech jobs, with an emphasis on serving underemployed, minority, and female candidates. The University of Central Florida, Valencia College, and Florida Institute of Technology will each play a role in developing trainings for students to quickly learn tech skills. Businesses from across Florida that participate in the Florida High Tech Corridor Council will support the initiative with an array of commitments, including commitments to consult on course design, interview candidates, and provide on-the-job learning opportunities.
El Paso County, TX
Emerging companies in El Paso County will soon have an influx of talent, thanks to collaboration among the Workforce Solutions Borderplex Development Board Area and local partners to lead Reboot El Paso, a collective effort to create and expand IT career pathways. The initiative aims to train and place 400 individuals into tech jobs by 2020. First, the coalition will build awareness among non-traditional candidates, with an emphasis on veterans, the long-term unemployed, and youth. Then, the coalition commits to develop a pipeline to jobs with employer partners and assess applicants for fit to the jobs with competencies rather than credentials. Finally, the coalition will connect graduates to jobs.
Howard County, MD
Howard Community College and the Howard Tech Council (HTC) will come together to train individuals for jobs in tech fields including computer science, information technology, cybersecurity, and computer forensics. Howard County’s TechHire initiative will leverage an apprenticeship model, whereby trainees can participate in on-the-job learning with the over 200 regional employers that participate in Howard Tech Council. By 2020, the Howard County TechHire initiative aims to train and place 800 individuals, with an emphasis on the long-term unemployed, minorities, and the military.
The City of Mobile, Alabama will partner with the Gulf Coast Technology Council and 17 employers to develop industry-driven training, including customized capacity building for incumbent workers, a coding bootcamp pilot, and advanced manufacturing technical trainings for entry-level job seekers. The trainings will be facilitated by Depot/U, Iron Yard, and General Assembly. This program will include opportunities for trainees to network with local employers seeking talent, including Accureg Software, AM/NS Calvert, Rural Sourcing Inc., and The Red Square Agency. By 2020, the collaborative aims to train and hire 500 technical workers, including those who are underemployed and dislocated, boosting Mobile’s burgeoning tech community.
Oklahoma City, OK
StarSpace46, Inc., Creative Oklahoma, and Techlahoma Foundation will work with fast-track and agile training programs to train and place 500 IT workers by 2020. With commitments from employers spanning from the aerospace sector to the not-for-profit sector, trainees will gain and utilize skills in native mobile development, user interface design, and front-end and application development. Students will also gain access to mentorship in entrepreneurship and business.
Omaha is bringing together AIM and the Greater Omaha Chamber of Commerce, including traditional and start-up employers alike, in their effort to develop a local tech training and employment ecosystem. Local training bootcamps have committed to help train over 1,000 people by 2020, to help fill local tech jobs in industries from financial services to tech.
Pensacola State College will collaborate with employer convener Innovation Coast, Inc., including community workforce partners Global Business Solutions, Inc. (GBSI), Technical Software Services, Inc. (TECHSOFT), Gulf Power Company, AppRiver, and the Institute of Human & Machine Cognition (IHMC), to train and place 200 technology workers by 2020. With a focus on veterans, minorities, and economically disadvantaged individuals in the Pensacola area, students can gain skills across IT fields, including cybersecurity, coding, and networking. In addition to training, this initiative includes opportunities to make connections with potential employers and reduce unemployment.
Santa Fe and Northern New Mexico
NMTechWorks is a community coalition in Santa Fe and Northern New Mexico with support from the Mayor’s Office, local employers, and non-profits. This multi-sector effort is designed to map, expand, and link pathways to tech careers, especially for rural, Native American, and Spanish-speaking community members. The Community Learning Network and StartUp Santa Fe are teaming with Cultivating Coders, a locally-based accelerated training provider, and others to grow the IT pipeline and train more than 500 students by 2020 for high-demand tech jobs with employers such as the Los Alamos National Laboratory, OpenEye Scientific Software, and Descartes Labs.
Tampa Bay, FL
CareerSource Tampa Bay, Hillsborough County’s workforce development board, will fast-track critical IT training and employment opportunities for well over 1,000 local out-of-school youth and young adults through 2020. Employers across industries, such as BayCare Health Systems and Cognizant Technology Solutions, are partnering with the initiative in order to advance the economic health and technology industry of the community.
Trenton City, NJ
The Trenton TechHire initiative is a cross-sector partnership between employers, City of Trenton’s My Brother’s Keeper Initiative, and Agile Strategies group, local education institutions, and local nonprofit organizations. This collaboration will prepare over 150 residents for tech jobs across sectors by 2020. Partners such as FCC Consulting Services, Tektite Industries, Inc., New Jersey Manufacturing Extension Program, and Power Magnetics, Inc. will meet regularly with Shiloh Community Development Corporation and the City of Trenton to strengthen and sustain the initiative.
In Tulsa, 36 Degrees North, Techlahoma and a network of workforce and education partners will collaborate to quickly train candidates for tech jobs with local employers including ConsumerAffairs and Mozilla. With strong support from the Mayor’s Office, Tulsa TechHire plans to train and place 600 candidates, including women and youth, into tech jobs across sectors by 2020.
In Puerto Rico, co-working space Piloto 151 and Codetrotters Academy have launched a strong public-private partnership with support from the Puerto Rico IT Cluster, the Puerto Rico Department of Economic Development (DDEC) and the Puerto Rico Science & Technology Research Trust. The Puerto Rico TechHire initiative will bring together a wide range of local technology companies and startups, including Rock Solid Technologies, Spotery, Migo IQ, and Wovenware, among others, in order to train and place 100 workers into tech jobs over the next year, ramping up to 300 workers by 2020.
Tech Toledo, the Toledo Regional Chamber of Commerce, and OhioMeansJobs Lucas County are initiating an information technology workforce alliance to address short-term needs and develop longer-term programs for IT internships and apprenticeship programs. Tech Toledo will work with employers such as Meyer Hill Lynch, Toledo Lucas County Public Library, and The Andersons, Inc., to find and develop training to help fill their in-demand IT job needs. Tech Toledo will place at least 100 workers into tech jobs by 2020.
The City of Stamford and the Connecticut Department of Labor are working with Crashcode and The Business Council of Fairfield County to train and place 1,000 new workers into tech jobs by 2020 via an accelerated training program. Regional tech companies including Datto, CometaWorks, Comradity, GoNation, CTFN, and others will support with training design and hiring opportunities for graduates.
With Donald Trump continuing to rewrite history, advance falsehoods about Obama’s Presidency, it is important to examine the Employment report for November. Trumpsters depend upon disaffection and dissatisfaction. A strong economy is the antithesis. Also, Trump wants to take credit as the forward momentum of Obama’s policies continue on into the new administration, before the administration’s policies, undoing everything Obama accomplished, have their impact.
Trump was able to exploit years of propaganda from the Republicans aimed at destroying his presidency. Obama found a way to thread the needle in coming up with solutions, despite unprecedented obstruction of infrastructure spending, the America Jobs Act, spending for transportation and highways, defeating his plans to build high-speed rail and invest in clean, renewable energy.
Obama was almost a victim of his own success – like President Bill Clinton before him, who presided over a golden era of peace and prosperity, when everyone’s income and standard of living rose, only to see Al Gore denied the presidency – people take for granted how much better they are off from when Obama took office, when 850,000 jobs a month were being lost, 20,000 people a month were losing their health care, millions were losing their homes to foreclosure.
Obama also had in place programs to help the people who found themselves unable to pursue the 5.5 million unfilled jobs because of lack of training. He had programs to boost advanced manufacture, and open up markets to the 95% of the world that is outside the US.
Trump is profiting from being handed a growing economy, and he has signaled he will install the very same people who profited from millions of Americans misery, he will undo the financial and consumer protections, he will throw people back into the insecurity of losing health insurance and jobs and homes. He has shown in his appointments and in his business record that he will exploit workers and further weaken unions.
Statement on the Employment Situation in November
WASHINGTON, DC – Jason Furman, Chairman of the Council of Economic Advisers, issued the following statement today on the employment situation in November.
Summary: The economy added 178,000 jobs in November, extending the longest streak of total job growth on record, as the unemployment rate fell to 4.6 percent.
The economy added a solid 178,000 jobs in November as the longest streak of total job growth on record continued. U.S. businesses have now added 15.6 million jobs since early 2010. The unemployment rate fell to 4.6 percent in November, its lowest level since August 2007, and the broadest measure of underemployment fell for the second month in a row. Average hourly earnings for private employees have increased at an annual rate of 2.7 percent so far in 2016, faster than the pace of inflation. Nevertheless, more work remains to ensure that the benefits of the recovery are broadly shared, including opening new markets to U.S. exports; taking steps to spur competition to benefit consumers, workers, and entrepreneurs; and raising the minimum wage.
FIVE KEY POINTS ON THE LABOR MARKET IN NOVEMBER 2016
1. U.S. businesses have now added 15.6 million jobs since private-sector job growth turned positive in early 2010. Today, we learned that private employment rose by 156,000 jobs in November. Total nonfarm employment rose by 178,000 jobs, in line with the monthly average for 2016 so far and substantially higher than the pace of about 80,000 jobs per month that CEA estimates is necessary to maintain a low and stable unemployment rate given the impact of demographic trends on labor force participation.
In November, the unemployment rate fell to 4.6 percent, its lowest level since August 2007. The labor force participation rate ticked down, though it is largely unchanged over the last three years (see point 3 below). The U-6 rate, the broadest official measure of labor underutilization fell 0.2 percentage point for the second month in a row in part due to a reduction in the number of employees working part-time for economic reasons. (The U-6 rate is the only official measure of underutilization that has not already fallen below its pre-recession average.) So far in 2016, nominal hourly earnings for private-sector workers have increased at an annual rate of 2.7 percent, faster than the pace of inflation (1.6 percent as of October, the most recent data available).
2. New CEA analysis finds that State minimum wage increases since 2013 contributed to substantial wage increases for workers in low-wage jobs, with no discernible impact on employment. In his 2013 State of the Union address, President Obama called on Congress to raise the Federal minimum wage, which has remained at $7.25 an hour since 2009. Even as Congress has failed to act, 18 States and the District of Columbia—along with dozens of local government jurisdictions—have answered the President’s call to action and have raised their minimum wages. (In addition to the States that have already raised their minimum wages, voters in four States approved measures to raise the minimum wage in November.) To assess the impact of minimum wage increases implemented by States in recent years, CEA analyzed data from the payroll survey for workers in the leisure and hospitality industry—a group who tend to earn lower wages than those in other major industry groups and thus are most likely to be affected by changes in the minimum wage. As the chart below shows, hourly earnings grew substantially faster for leisure and hospitality workers in States that raised their minimum wages than in States that did not. By comparing trends in wage growth for the two groups, CEA estimates that increases in the minimum wage led to an increase of roughly 6.6 percent in average wages for these workers. At the same time—consistent with a large body of economic research that has tended to find little or no impact of past minimum wage increases on employment—leisure and hospitality employment followed virtually identical trends in States that did and did not raise their minimum wage since 2013. (See here for more details on CEA’s analysis.)
3. The strengthening labor market is drawing individuals into the labor force, offsetting downward pressure on employment growth from the aging of the population. Employment growth depends on three factors: population growth, the rate at which the population participates in the labor force, and the share of the labor force that is employed. The chart below decomposes employment growth (from the household survey) into contributions from each of these factors for each year of the current recovery. It further decomposes labor force participation into shifts attributable to demographics (such as the aging of the U.S. population) and shifts attributable to other factors (such as the business cycle). Throughout the recovery, demographic changes in labor force participation—primarily driven by a large increase in retirement by baby boomers that began in 2008—have consistently weighed on employment growth. In recent years, however, non-demographic changes in labor force participation have supported employment growth, as the strengthening of the labor market and increasing real wages have drawn more individuals into the labor force. The entry (or reentry) of workers into the labor force has helped employment growth maintain its recent solid pace even as the unemployment rate has fallen more slowly. These two shifts in labor force participation—demographic and non-demographic—have largely offset one another in recent months, and as a result the overall labor force participation rate has remained broadly stable since the end of 2013.
4. The number of unemployed workers per job opening, an indicator of labor market slack, is near its lowest level prior to the recession. Using data from the household survey and the Job Openings and Labor Turnover Survey, the chart below plots the ratio of unemployed workers to total job openings. In the recession, unemployment rose rapidly while job openings plummeted, sending the ratio of unemployed workers to job openings to a record peak of 6.6 in July 2009. As the unemployment rate has decreased over the course of the recovery, and as job openings have climbed to record highs this year, the ratio of unemployed workers to openings has fallen steeply, standing at 1.4 as of September (the most recent data available for openings). This is close to the ratio’s lowest level in the 2000s expansion, another indicator—in addition to recent increases in real wages—of a strengthening labor market.
5. The distribution of job growth across industries in November diverged from the pattern over the past year. Above-average gains relative to the past year were seen in professional and business services (+49,000, excluding temporary help services), while mining and logging (which includes oil extraction) posted a gain (+2,000) for the second time in recent months amid moderation in oil prices. On the other hand, retail trade (-8,000), information services (-10,000), and financial activities (+6,000) all saw weaker-than-average growth. Slow global growth has continued to weigh on the manufacturing sector, which is more export-oriented than other industries and which posted a loss of 4,000 jobs in November. Across the 17 industries shown below, the correlation between the most recent one-month percent change and the average percent change over the last twelve months was -0.06, the lowest level since September 2012.
As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and payroll employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report, and it is informative to consider each report in the context of other data as they become available.
The primary “appeal” of Donald Trump’s candidacy, we are told, is that he is a businessman, not a politician, that he has created jobs, whereas Hillary Clinton is a “politician” who has never created a single job or met a payroll. Donald Trump is the outsider, the change agent, versus the insider, while Hillary Clinton is “the Establishment” because she has spent 30 years as a public servant.
Setting aside the fact that Trump is the worst caricature of a Businessman, who, records now show, has built up the fortune he inherited by exploiting others, by lying and cheating, and the fact that Hillary Clinton, while she has spent her life in public service working to better the lives of others, has only briefly (as a US Senator and in her campaign for the presidency been a politician, there is a difference between public service and politics, and between business and government.
Trump says that because he is such a brilliant businessman, he will be the best “jobs creator God ever made.” He promises to bring back the manufacturing jobs that were lost 20 years ago, and says he will restore jobs in the coal mines, oil rigs and steel mills. How? He says he will tear up trade agreements (that will only start a trade war as countries retaliate by imposing tariffs on American goods, which will damage our exports which has been rising); tax goods brought in by an American company (even if he could do that, it would only be passed on to consumers in higher prices), eliminate corporate taxes (the biggest, most profitable companies don’t pay any tax anyway, and no business pays the “nominal” 35% tax rate), reducing taxes on the wealthiest Americans, like Trump (who we find pays zero or less than the average janitor so one wonders why there is any compelling need to go to a flat tax of 15% which will harm middle class people the most), and finally, eliminate the estate tax which would produce a $4 billion windfall for the Trump kids (so they have a real investment in Daddy becoming president) if Trump is not actually lying about his wealth (which Forbes estimates is more like $3.7 billion than the $10 billion he boasts). Trump’s fantastical promise of 4% annual growth in GDP that he pulls out of thin air would likely only spur crippling inflation.
This is, as Hillary Clinton so eloquently put it, “Trumped Up Trickle Down”, the George W. Bush economy on steroids, and we saw how that played out. And just like Bush Economics turned the Bill Clinton budget surplus into massive deficit and the $1 trillion for war he put on a national credit card exploded the national debt, economists have said that Trump’s economic plan would add $5 trillion to the debt, cost 3.5 million jobs, and exacerbate income inequality (because once again, all the tax advantages would flow to the top) and very likely plunge the US into another recession,
Hillary Clinton’s economic policy has a lot to do with economic justice and sustainable economic growth: paid parental leave, raising the federal minimum wage to $15, eliminating college debt, clawing back tax incentives from companies that use “inversion” to avoid taxes, promoting the rise of clean energy industry which already is creating more jobs than fossil fuel industry, easing the way for small businesses and entrepreneurs, investing $275 billion in infrastructure and billions more for medical research such as to combat Alzheimer’s disease, promoting universal pre-K and affordable child care, requiring pay parity for women. And yes, she pays for it by eliminating tax dodges corporations use and raising taxes on the wealthiest, “because they have made all the gains in the economy. And I think it’s time that the wealthy and corporations paid their fair share to support this country. Broad-based, inclusive growth is what we need in America, not more advantages for people at the very top.”
To which Trump replied, “Typical politician. All talk, no action. Sounds good, doesn’t work.”
Not work? These are policies that actually will create jobs – as they did during Bill Clinton’s administration, when he created 22 million jobs, largely by unleashing the new Internet industry, when incomes across the board were created, and by Barack Obama who already has created 15 million, despite coming into office enduring the worst recession since the Great Recession, produced the longest string of jobs growth in history and the fastest increase in wages in years and the most rapid decrease in poverty since 1968 (Johnson’s Great Society).
Yes, a politician does create jobs by fostering the policies that promote jobs-creation, and literally hiring the private contractors who build the roads, bridges, airports, water and communications systems. But a public servant does even more.
Economists who analyzed Hillary Clinton’s proposals found that it would likely create 10 million jobs, and that means with the increased revenue because of fairer tax policies and getting the wealthy and corporations to pay their fair share, the national debt would be reduced and prosperity would be more widely shared.
Hillary Clinton has spent her entire working life creating jobs. And if you look at what the State Department does – things like USAID – they are in the business of fostering economic development (jobs) around the world. During her tenure as Secretary of State, the US increased its exports by 30% and exports to China by 50%, and that contributed to the first increase in manufacturing jobs since the Clinton years. The Clinton Global Initiative which she served after leaving government, devised new methods of fostering public-private partnerships that have been applied by the Obama Administration in the Smart Cities program, Joining Forces (which promotes jobs for returning veterans and military families), in its Apprenticeship program, for example (I’m betting no one realizes these programs even exist), and would have done far, far more if the Republican Congress had not blocked legislation including the Infrastructure Bank and the American Jobs Program (it even has “jobs” in its name).
And there is a very great difference between being a businessman and a public servant. Donald Trump said it himself, to justify how “smart” he is to avoid paying taxes (which is probably why he is being audited):
He has said that he earned $650 million last year, but has boasted about paying zero taxes or avoiding paying taxes. “That makes me smart.”
“So if he’s paid zero, that means zero for troops, zero for vets, zero for schools or health,” Clinton replied. (This doesn’t sway Trump’s supporters because they see not paying taxes as stiffing the government – sticking it to the Establishment – and though they pretend to salute the flag, it is the “Don’t Tread on Me” one.)
And if he stiffed workers by refusing to pay them and challenging them to bring him to court, and stiffed investors by declaring bankruptcies, and called himself the “King of Debt,” he says,“Which our country should do, too.”
His idea to bring down the national debt? Not pay the interest on the obligations – force creditors to take less. That’s called default and it would forever crash the “full faith and credit of the United States” and the world economy.
“My obligation right now is to do well for myself, my family, my employees, for my companies. And that’s what I do.”
Ah ha, that’s it in a nutshell: a for-profit charter school can simply close up shop and leave the kids on the street, a public school has to take everyone regardless of their intellectual or physical ability; a for-private hospital just shuts down. A public servant has to consider all constituencies, with competing interests, not just self-interest, has a broader responsibility beyond a “fiduciary” responsibility (which is why corporations should be prohibited from paying into any political campaign and the Supreme Court Citizens United decision is so counter to democracy), and a longer view beyond the next quarter.
And the icing on the cake for would-be Donald Trumps? Elimination of regulation, overturning financial controls like Dodd-Frank, the EPA – an open invitation for a bankster free-for-all that will make the Bush Financial Crash look like peanuts. And those blue-collar working stiffs who are the “core” Trump supporters, who somehow imagine that Trump will make them billionaires, too? They will find themselves bilked, just like the Trump University chumps.
Being the chief executive of the United States, the head of a government of millions of workers, serving the interests of more than 300 million citizens (not just those who vote for you), working with partners from around the country and around the world, managing your board of directors (the Congress), is not like being CEO of a business with a single purpose – to make money for its owners – but does require professional skill, experience, expertise.
You wouldn’t hire a real estate developer to perform brain surgery on you, pilot your airplane, or plead for your life in court, would you?
But regardless of Businessman or Public Servant, it comes down to the individual’s own character, personality, temperament, skill, background, values and vision. It’s not that government is inherently bad, bloated and inefficient, or that businesses are inherently more productive, efficient and honest (if that were true, so many wouldn’t go bankrupt or be overcharging government by three and four times), but the workers we encounter at the hotel or country club, the factory workers who actually assemble the cars, and the people who get hired for government, and most importantly, the individual politicians we elect to office. As easy as it is for Trump to hurl stereotypes, slogans or jingoisms, people are not widgets that are interchangeable by label or category.
Responding to the New York Times report that Trump took advantage of his business failures in the 1990s to claim a $915 million lossin 1995 – enough to shield him from federal taxes for 18 years – his campaign stated, “The incredible skills Mr. Trump has shown in building his business are the skills we need to rebuild this country.”
Heaven forbid a President Trump treat the country as he has his businesses, his workers, his contractors, his investors.
WASHINGTON, DC – Jason Furman, Chairman of the Council of Economic Advisers, issued the following statement today on the employment situation in August. You can view the statement HERE.
The economy added 151,000 jobs in August following robust job growth in both June and July as the unemployment rate held steady at 4.9 percent. U.S. businesses have now added 15.1 million jobs since early 2010, and the longest streak of total job growth on record continued in August. So far in 2016, job growth has averaged a solid 182,000 jobs a month, well above the pace of about 80,000 jobs a month needed to maintain a low and stable unemployment rate, and hourly earnings for private-sector workers have increased at an annual rate of 2.8 percent, much faster than the pace of inflation. Nevertheless, more work remains to sustain faster wage growth and to ensure that the benefits of the recovery are broadly shared, including investing in infrastructure, implementing the high-standards Trans-Pacific Partnership, and raising the minimum wage.
FIVE KEY POINTS ON THE LABOR MARKET IN AUGUST 2016
U.S. businesses have now added 15.1 million jobs since private-sector job growth turned positive in early 2010.Today, we learned that private employment rose by 126,000 jobs in August, following a robust average gain of 232,000 jobs in June and July. Total nonfarm employment rose by 151,000 jobs in August, below the monthly average for 2016 so far but substantially higher than the pace of about 80,000 jobs per month that CEA estimates is necessary to maintain a low and stable unemployment rate given the impact of demographic trends on labor force participation.The unemployment rate held steady at 4.9 percent in August. The labor force participation rate remained at 62.8 percent, the same rate as in October 2013 despite downward pressure from demographic trends. So far in 2016, nominal earnings for private-sector workers have increased at an annual rate of 2.8 percent, well above the pace of inflation (1.3 percent as of July, the latest data available).
As the labor market has strengthened, the share of employees quitting their jobs has recovered to roughly its pre-recession average.The quits rate tends to fall in recessions and rise in recoveries, since workers are generally more likely to choose to leave a job if there are job opportunities available elsewhere. As such, a higher quits rate is a sign of a stronger labor market. The chart below plots data from the Job Openings and Labor Turnover Survey (JOLTS) on both quits (voluntary separations) and layoffs and discharges (involuntary separations). The quits rate plummeted in the Great Recession as the layoffs and discharges rate rose sharply. Since then, as the labor market has recovered, the layoffs and discharges rate has fallen well below its pre-recession average, and the quits rate was near its pre-recession average as of June 2016 (the most recent data available). Nevertheless, the quits rate is still below its level in the early 2000s, part of a broader, decades-long trend ofdeclining labor market fluiditywhose causes and consequences continue to be debated by economists.
Workers in nearly all private industries have seen their unemployment rates recover and fall below their pre-recession averages.The headline unemployment rate recovered to its pre-recession average of 5.3 percent in June 2015 and has since fallen even further, holding steady at 4.9 percent in August 2016. As shown in the chart below, the impact of the Great Recession varied across industries, with mining, quarrying, and oil and gas extraction workers, manufacturing workers, and construction workers in particular seeing large increases in their unemployment rates. As of August, however, unemployment rates for workers in 9 of the 11 major private industries have fallen below their respective pre-recession averages. The two exceptions are education and health services workers, whose unemployment rate has essentially recovered to its pre-recession average of 3.3 percent, and mining, quarrying, and oil and gas extraction workers, whose unemployment rate nearly recovered before increasing since mid-2014 amid falling oil prices and production (see point 4 below).
Employment in the mining and logging industry, which includes oil and gas extraction, has fallen sharply in recent months amid low oil prices.While the decline in oil priceshas benefitted consumers and the economy overall, it has weighed heavily on mining and logging employment, which has fallen by 25 percent since September 2014. Oil and gas workers make up more than half of the mining and logging industry; however, this sector represents just 0.5 percent of total U.S. nonfarm employment. The level of mining and logging employment is closely correlated with the price of oil, with shifts in employment usually following price changes, as the chart below shows. Since 2000, mining and logging employment has been most closely correlated with the price of oil eight months before, suggesting that the recent slight moderation in oil prices since the beginning of 2016 may translate into a slowdown in the pace of employment losses in the months ahead.
The distribution of job growth across industries in August was broadly consistent with the pattern over the past year, though some industries saw below-trend growth.Above-average gains relative to the past year were seen in transportation and warehousing (+15,000) and State and local government (+24,000), while mining and logging (which includes oil extraction) posted a smaller loss (-4,000) than in recent months. On the other hand, several industries, including professional and business services (+25,000, excluding temporary help services), health care and social assistance (+36,000), private educational services (+2,000), and utilities (-1,000) saw weaker-than-average growth. Slow global growth has weighed on the manufacturing sector, which is more export-oriented than other industries and which posted a loss of 14,000 jobs in August.Across the 17 industries shown below, the correlation between the most recent one-month percent change and the average percent change over the last twelve months was 0.82, in line with the average correlation over the last year.
As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and payroll employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report, and it is informative to consider each report in the context of other data as they become available.