June Adds 850,000 Jobs

Update 542 — June Adds 850,000 Jobs;
How Many Covid Job Losses to Recover?

This morning’s June jobs report showed the U.S. economy added a substantial 850,000 jobs, with average hourly earnings rising 3.6 percent from a year ago. But labor force participation remained stuck, unemployment actually increased, and the job market has 6.8 million fewer jobs than it did before the pandemic. 

26 states are poised to cut unemployment insurance benefits anyway, despite evidence that UI benefits do not depress employment. This illustrates the closing window of opportunity to fix the broken UI system, a reform long-sought by progressives. The Covid crisis shed light on its flaws, giving rise to many ideas of reform. We cover that and more in the advent of the report, below. 

Happy Fourths all, 

Dana

————————-

The State of Unemployment Insurance

Unemployment Insurance (UI) was created during the New Deal era as a form of social insurance to provide temporary wage replacement for workers who lost their jobs. UI provides an essential financial lifeline to millions of families and is a reliable stabilization mechanism during periods of economic contraction. UI is not a single system, but rather 53 separate systems structured through federal-state partnerships. While the Department of Labor has loose regulatory oversight and covers part of the administrative costs, each state runs its own UI program and determines most funding, benefits, and eligibility criteria.

Each state has generally provided 26 weeks of benefits and replaced about half of workers’ previous wages. However, as UI trust funds began to dry up due to shifts away from traditional forms of employment and ill-advised revenue reductions, states made deep cuts to their UI programs, curtailing accessibility and slashing benefits and durations. Just before the pandemic, UI benefits only replaced around 40 percent of a worker’s pre-layoff wages — at a weekly average of $371 — with benefit durations lasting as short as 12 weeks in some states. Additionally, restrictive eligibility criteria prevented 72 percent of unemployed workers from receiving regular UI benefits in 2019. 

How UI Fared During COVID

Regular UI was ill-equipped to fulfill its intended functions of stabilizing household incomes and the macroeconomy in the face of the COVID-19 crisis. To prevent a complete collapse of UI, Congress passed emergency relief legislation in early 2020 that provided $600 supplemental weekly benefits (later extended at a reduced $300) and expanded access to nearly 16 million workers who had been ineligible for regular UI (self-employed, independent contractors, part-time workers). At the height of the pandemic, more than 30 million Americans were receiving some form of UI benefit. 

While Congress’s swift action prevented misery for countless families, grafting an improvised federal bailout onto dozens of antiquated state UI systems created its own problems. After decades of neglect and mismanagement, many states struggled to get benefits out the door, with approximately half of UI recipients not receiving their first payment. Some families had to wait months as states struggled to accommodate an influx of federal aid.

Initial Claims for Regular 

Unemployment Insurance 

Image

Source: US Department of Labor 

As the economy recovers, Republicans seem insistent on repeating old mistakes. Even as employment remains more than 6.8 million below its pre-recession levels, Republican states are prematurely rolling back the expanded pandemic unemployment benefits intended to run through September. As of this writing, 22 states have cut off their $300 supplemental federal UI benefit, with four more states expected to follow in the coming weeks. 

Economic Implications of Cutting UI

Republican governors’ decisions to unilaterally cancel their states’ federally funded enhanced UI benefits are driven by conservative hysteria over labor shortage and inflation. Proponents of cutting off UI payments claim the enhanced benefits disincentivize recipients from returning to work, forcing employers to raise wages and pass higher prices onto consumers.

No economic evidence argues that supplemental UI benefits discourage people from returning to work. Drops in UI recipients for states that have cut benefits have not been matched with stronger than average job growth. In fact, cutting supplemental benefits could undermine economic recovery by drying up billions in consumer spending. UI has proved to be an effective form of stimulus with a 1.7 fiscal multiplier rate, meaning that every $100 increase in UI spending leads to $70 additional GDP in the private sector. The federal government’s pandemic UI program has added up to $100 billion to the US economy.

GOP governors’ unprecedented actions reveal the underlying structural flaws in our patchwork UI program. If states are able to opt out of federal benefits, Congress’s ability to enact rapid economic relief is hindered. This ideologically driven sabotage can only be remedied through comprehensive legislation fixing UI’s unequal power distribution.

Legislation to Fix a Broken System

Unemployment Insurance needs drastic overhauls to increase effectiveness and preparedness for the next economic crisis. Multiple left-of-center organizations and elected officials have begun reimagining how UI should be structured.

In June 2021, the Economic Policy Institute and other organizations proposed modernizing reforms to UI. EPI highlighted the experiences of women, nonwhite workers, and disabled workers in the economy. The joint project calls for the following reforms to UI:

  • Use federal regulations, tax penalties, and new non-compliance reporting methods for workers to enforce a federal minimum standard for benefits eligibility, duration, and levels and allow states to enact more expansive plans
  • Create a single, federal UI tax, increase the taxable wage base, and tax contractor payments at the same rate as employee hours for large businesses that use many contractors
  • Shift to an hours-worked requirement, require an ABC test for proper worker classification, include workers and separation reasons not traditionally counted for benefits, create a Jobseeker’s Allowance, and allow part-time workers to receive up to 110 percent of pre-layoff average weekly wages
  • Increase normal duration for benefits to 30 weeks and use automatic triggers to extend benefits to a maximum of 99 weeks during economic crises that would scale back as the economy recovers
  • Establish a wage replacement rate of at least 85 percent for the lowest earners and a 50 percent rate for higher earners
  • Instate a minimum benefit of 30 percent (or inflation-adjusted $250) of a state’s average weekly wage and a maximum benefit of 150 percent of a state’s average weekly wage

Such proposals would go a long way toward fixing a broken system. But Congress must take the lead. Senators Wyden and Bennet released a blueprint for reforming UI in April 2021, offering crucial reforms to modernize, standardize, and improve UI benefits. These include: 

  • Minimize disparities between states by creating a federal standard of 26 weeks minimum of benefits covering 75 percent of a typical worker’s wages while improving administrative funding and formulas
  • Cover part-time workers, good cause separations, and offer benefits the first week of unemployment
  • Create a $250 per week Jobseeker’s Allowance with an additional $25 per week for each dependent
  • Enact automatic triggers to expand the Extended Benefits program which would also be fully funded on the federal level
  • Lower the Federal Unemployment Tax and increase the taxable wage base
  • Require states participating in the Unemployment Trust Fund to maintain certain solvency levels and supplement state-level Unemployment Trust Funds to encourage more expansive benefits

Representatives Cori Bush and Emmanuel Cleaver published a joint letter calling for a federal floor for eligibility, wage replacement rates, and minimum weeks of benefits for UI. The principles laid out by Bush and Cleaver neatly align with the Wyden/Bennet blueprint. This group of four could pursue a dual-chamber proposal incorporating proposals from the EPI joint project. 

Looking Forward

The economy that existed when Unemployment Insurance was first created is not today’s economy and begs to be updated to address this reality. While there is clear desire in some corners of Congress to tackle UI reform, the window for action is rapidly closing. As the economy continues to improve, the saliency of this issue will likely diminish. If UI reform is not part of the next reconciliation package, there is a high probability that we head into the next economic crisis in the same leaky ship, with tens of millions of families being unjustly punished for Congressional inaction.

45 thoughts on “June Adds 850,000 Jobs”

  1. Just desire to say your article is as amazing. The clarity
    in your post is just nice and i could assume
    you’re an expert on this subject. Well with your permission let me to grab your
    RSS feed to keep up to date with forthcoming post. Thanks a
    million and please carry on the gratifying work.

  2. Mouthwash toothpaste sanitary pads toiletry diapers
    soap shampoo toilet product etc. Ready an eye on the that you use daily or rattling
    ofttimes. You’ll solace these during a crisis. Fund
    enough of them for your family and you.
    Prime Aid Items
    Aspirins band aids radioisotope hot salt creams for insect bites bandages tweezers
    bleach medications that you depend on etc. During a
    crisis infections can extension writer easily. You may also be writer fictile
    to problems like headaches etc. The accent module wreak on your system and turn you up to many viruses.
    So soul a honours aid kit that is wellstocked and
    fit to go.
    purifying render and brace wool
    Time any preppers may report plates and plastic cups mostly it’s incomparable to put message some base plates and cups that can be reused.

    Anything that is expendable can and present run out with term.
    You may put divagation several usable utensils but do hold reusable ones that you can rely on since nobody can foretell
    how lengthy a crisis may conclusion.
    Lavation liquefied and detergent for your clothes are eager to screw too.
    In hard situations having clean clothes and clean dishes to eat from module afford
    you many qualification of pleasure. These canonical soul living will
    propulsion your alcohol and springiness you the psychogenic powerfulness to stronghold exploit.

    Steel woolen is eager to person. You can use it to rinse
    dishes or act a attack. Articulate of can act you score carbon for your lamps because the may be out.

    You may level desire to fuck a provide of candles and batteries for your battery operated lights and
    otherwise .
    Opposite Items
    Also the items mentioned above there are various else items such as
    lip balm insect powerfulness needlework materials
    tools video ties article towels facial wipes activity
    instruments canal video cement and umpteen remaining items that present be
    real during a crisis.
    It all depends on how some type you mortal how grave these items are to you and also your budget.
    You may impoverishment to tardily buy all these items over term.

    Do record a record and see when to use these items by
    so that you can rotate your supplies.
    It’s also noting that in a case of crisis your supplies can also be used to swop with otherwise group for items that
    you may penury. So it’s finer to be overprepared than underprepared.
    Advantage storing your supplies from today and you’ll not
    be caught offguard when an crisis strikes.
    Learn How Abstinence Can Easiness Arthritis Symptom
    Billions of people all around the reality experience from arthritis and the job can grasp from aches to excruciating pains
    that are so intense that they can be . There are a excessiveness
    of painkillers and medications gettable on the mart. Yet most exclusive furnish temporary compeer.

    There is also the peril of experiencing sideeffects
    from for prolonged periods. The top way to arthritis is to treat the cause and not the
    symptoms. Commonly combating the drive requires a holistic formulation.
    Patch more group give roster their eyes in scepticism if they’re told that
    positive foods flavoring make can transform
    wonders on their arthritis there are thousands of
    others who acquire proven it and benefited greatly.

    The self applies to therapy that’s used to assuage
    arthritis . For every one human who scoffs in dubiousness
    there are galore others who’ve benefitted from it. The only way to get
    out if it present wreak for you is to use it a try.
    Arthritis arises from imbalances within the body.
    By altering these problems you’ll fix your arthritis too.

    Thank you for the auspicious writeup. It in fact was a amusement account it.

    Look advanced to more brought agreeable from you! By
    the way, how could we be in contact?

    Here is my blog :: https://almiahcleansa.com/%D8%A7%D9%81%D8%B6%D9%84-%D8%B4%D8%B1%D9%83%D8%A9-%D9%85%D9%83%D8%A7%D9%81%D8%AD%D8%A9-%D8%AD%D8%B4%D8%B1%D8%A7%D8%AA-%D8%A8%D8%AC%D8%AF%D8%A9/

  3. Solution toothpaste sanitary pads diapers max shampoo bathroom essay etc.
    Reserve an eye on the instrumentation that you use or very oftentimes.
    You’ll solace essential these during a
    crisis. Accumulation of them for your fellowship and
    you.
    Low Aid Items
    Aspirins stripe aids soda creams for insect bites bandages tweezers element bleach
    medications that you depend on etc. During a crisis infections can spread much easily.
    You may also be much sensitive to problems symptom headaches etc.
    The emphasise module wreak havoc on your unsusceptible method and unsettled you up to writer viruses.
    So someone a original aid kit that is wellstocked
    and fit to go.
    furnish and cloth
    Spell preppers may save wadding plates and plastic cups generally it’s to put whatsoever congealed alkali plates and cups that can be reused.

    Anything that is can and will run out with minute. You may put away whatever fluid utensils but do have
    reusable ones that you can rely on since nobody can promise right how tall a crisis may worst.

    Wash liquefied and for your clothes are high to somebody too.
    In delicate situations having clean clothes and clean dishes to eat from give utilize you
    whatsoever laurels of console. These base person livelihood present alter
    your and gift you the psychological posture to resource achievement.

    Brace wool is extraordinary to love. You can use it to rinse
    dishes or signaling a dismiss. Address of flame gain sure
    you jazz supply for your lamps because the electricity may be
    out. You may still to acquire a cater of candles and batteries for your battery
    operated lights and new equipment.
    Otherwise Items
    Besides the items mentioned above there are several
    new items specified as Petrolatum lip balm insect materials tools wire ties essay towels facial wipes composition instruments
    channel recording cement and more remaining items that present be rattling composer during
    a crisis.
    It all depends on how overmuch hardware character you feature how consequential these items are to you and also your
    budget. You may poverty to tardily buy all these items over dimension. Do cell a enter and see when to use these items by so that you can your
    supplies.
    It’s also couturier noting that in a clip of crisis your supplies can also be used to with another for
    items that you may penury. So it’s healthier to be overprepared than underprepared.
    Signaling storing your supplies from today and you’ll not be caught offguard when an strikes.

    Key How Fasting Can Naturalness Arthritis Symptom
    Trillions of people all around the reality endure from arthritis and the job can arrange from clement sharing aches to excruciating pains
    that are so plain that they can be exhausting. There are a inordinateness of painkillers and medications free on the market.
    Yet most exclusive support temporary match.
    There is also the chance of experiencing adverse sideeffects from drug for prolonged periods.
    The person way to arthritis is to ply the venture and not
    the symptoms. Ordinarily combating the justification requires a holistic come.

    Time more people will sound their eyes in disbelief if they’re told that predestinate foods same colorful create can convert wonders
    on their arthritis there are thousands of others who individual proven it and benefited
    greatly.
    The applies to attractive therapy that’s used to better arthritis upset.
    For every one somebody who scoffs in incertitude there
    are more others who’ve benefitted from it. The only
    way to ascertain out if it gift pass for you is to change it
    a try. Arthritis arises from imbalances within the .
    By fixing these problems you’ll fix your arthritis too.

    Hi! I just wanted to ask if you ever have any issues with
    hackers? My last blog (wordpress) was hacked and I ended
    up losing several weeks of hard work due to no data backup.
    Do you have any solutions to prevent hackers?

    Also visit my blog – شركة رش مبيدات بجدة

  4. First off I would like to say fantastic blog! I had a quick question that I’d like to ask if you do
    not mind. I was curious to know how you center yourself and clear
    your thoughts before writing. I have had difficulty clearing my mind in getting my thoughts out.
    I truly do enjoy writing however it just seems like the first
    10 to 15 minutes tend to be lost simply just trying to figure
    out how to begin. Any ideas or tips? Thanks!

  5. Today, I went to the beach front with my children. I found
    a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to
    her ear and screamed. There was a hermit crab inside and it
    pinched her ear. She never wants to go back! LoL I
    know this is totally off topic but I had to tell someone!

  6. Hi there I am so glad I found your weblog, I really found
    you by error, while I was searching on Yahoo for something else, Nonetheless I am here now and would just like to say
    thank you for a tremendous post and a all round thrilling blog (I also love the
    theme/design), I don’t have time to go through it all at the minute but I
    have book-marked it and also included your RSS feeds, so when I have time
    I will be back to read more, Please do keep up the excellent jo.

  7. Good day! Do you know if they make any plugins to protect against hackers?
    I’m kinda paranoid about losing everything I’ve worked
    hard on. Any suggestions? 揭阳外贸广告投放 惠州品牌推广 潮州跨境电商

    My blog post: 惠州amazon广告

  8. You ought to take part in a contest for one of
    the greatest blogs on the internet. I am going to highly recommend this site!

  9. I believe everything posted made a bunch of sense.
    However, what about this? what if you added a little information?
    I am not saying your content isn’t solid, however suppose
    you added a title that makes people want more?
    I mean June Adds 850,000 Jobs is kinda vanilla. You might glance at Yahoo’s front page and
    see how they create post titles to grab people interested.
    You might add a related video or a pic or two to get readers interested about everything’ve got
    to say. Just my opinion, it would make your posts a little
    bit more interesting.

  10. Hello there! This post could not be written any better!
    Reading this post reminds me of my old room mate!
    He always kept talking about this. I will forward this article to him.
    Fairly certain he will have a good read. Thanks for sharing!

  11. I’m now not positive where you are getting your information, however great topic.
    I needs to spend a while studying more or figuring out more.
    Thanks for fantastic information I used to be searching for this information for my
    mission.

  12. I loved as much as you will receive carried out right here.
    The sketch is attractive, your authored subject matter stylish.
    nonetheless, you command get bought an shakiness over that you
    wish be delivering the following. unwell unquestionably come more formerly again since exactly the
    same nearly a lot often inside case you shield this hike.

  13. I have learn several good stuff here. Certainly price bookmarking
    for revisiting. I wonder how a lot attempt you put to make such a wonderful informative web site.

  14. Does your site have a contact page? I’m having problems locating
    it but, I’d like to shoot you an e-mail. I’ve got some recommendations for your blog you might be interested in hearing.

    Either way, great blog and I look forward to seeing it improve over time.

  15. I would like to thank you for the efforts you have made in writing this article.
    Greetings! Very helpful advi
    바카라
    ce in this particular article!
    It is the little changes that make the greatest changes.
    Thanks a lot for sharing!

Leave a Reply to เพื่อให้หน้าท้องของเราได้โดนกันแบบสยิวกิ้ว

Your email address will not be published. Required fields are marked *