Workforce Development Council News

Weekly Update

September 9, 2011

 

 

Washington Update

American Jobs Act

On Thursday, September 8, President Obama addressed a joint session of Congress on the state of our economy and revealed his jobs agenda, the American Jobs Act -- an almost $450 billion jobs package -- to Congress in an effort to reignite the economy. With 14 million people out of work and an unemployment rate of 9.1 percent, the President challenged Congress to assist him in rebuilding the American economy through increased hiring, financing infrastructure, preserving and increasing teacher and first-responder jobs, and assisting the long-term unemployed.

The American Jobs Act calls for an extension on unemployment insurance and jobless benefits for the long-term unemployed and require states to overhaul their re-employment service, allowing them more flexibility in how they pay certain jobless benefits. The legislation also provides a tax credit of up to $4,000 to companies that hire people who have been looking for work for more than six months and provides special tax credits to companies that hire long-term unemployed veterans.

The jobs package also expands a reduction in the employee share of the Social Security payroll tax through 2012, cutting the levy in half at a cost of $175 billion, and expands the Social Security tax cut to the employer share, cutting that tax in half for the first $5 million paid in wages and eliminating the tax for new hires or wage increases up to $50 million. The legislation also proposes numerous jobs programs, providing $50 billion to upgrade highway, transit, rail and aviation facilities; provides $35 billion to states for immediate use to prevent teacher and first-responder layoffs and make new hires; and uses $10 billion to create a national infrastructure bank to leverage private and public capital for investment in infrastructure projects that have national or regional significance.

The President’s plan includes $5 billion for a “Pathways Back to Work” fund to provide hundreds of thousands of low-income youth and adults with job training. The Initiative includes funding for 1) Summer and year-round jobs for youth; 2) Subsidized employment opportunities for low-income individuals who are unemployed, building off the successful TANF Emergency Contingency Fund wage subsidy program; and 3) Promising and innovative local work-based job and training initiatives to place low-income adults and youths in jobs quickly.

When specific legislation is released, along with the funding offsets, we will provide additional analyses.

We have much work ahead of us to help get a strong jobs agenda approved by Congress. We are delighted that the President has recognized workforce development as a crucial component of his plan to create jobs and put Americans back to work -- so we are off to a good start, but we must continue to push hard. We will be discussing and outlining a WDC advocacy strategy during the WDC Congressional Forum next Tuesday, and will have further information in the weeks ahead.

Click here to read the President’s speech.

Click here to read the American Jobs Act Factsheet.

Click below for advocacy talking points.

(1) Talking points

(2) Talking points

Click here to access a State-by-State analysis of the plan’s impact.

Click here to read full White House article.

Click here to read USCM’s statement in response to President Obama’s jobs agenda.

USCM Jobs Agenda

On Friday, September 2, U.S. Conference of Mayors President Los Angeles Mayor Antonio R. Villaraigosa – joined by Vice President Mayor Michael A. Nutter of Philadelphia and Second Vice President Mayor Scott Smith of Mesa – held a press conference call to be held to release The United States Conference of Mayors jobs plan -- "A Common Sense Jobs Agenda."

The plan outlines a practical set of proposals designed to create millions of new jobs by immediately investing in infrastructure and spurring investment in small business, manufacturing, trade and tourism. The four areas of recommendations are: invest in infrastructure jobs; provide immediate relief to employers and workers; stimulate manufacturing, trade and tourism; and maintain smart investments in key domestic priorities (such as WIA, CDBG and COPS).

Mayor Villaraigosa and USCM leadership will be in Washington, DC on September 19-21 advocating for the Common-Sense Jobs Agenda and focusing on the surface transportation bill, the Joint Select Committee on Deficit Reduction, and FY 2012 appropriations.

Click here to read the full USCM Jobs Agenda.

Click here to read the full press release on the USCM Jobs Agenda.

Appropriations

On Wednesday, September 7, the Senate Appropriations Committee voted to approve a $1.043 trillion government spending plan for FY12, as required by the debt limit law. The Labor-HHS-ED level is $157.134 billion, which is about $300 million less than the FY11 enacted level of $157.434 billion.

In May 2011, the House 302(b) proposed allocations cut another $30 billion from discretionary spending and had a proposed total of $1.019 trillion in cuts to the FY12 budget. The Subcommittee on Labor, HHS and Education had a proposed cut of $18.2 billion from FY11 levels, which is $41.6 billion below the President's FY12 proposed budget.

Also on Wednesday, House Majority Leader Cantor (VA) announced that the House will vote the week of September 19 on a stop-gap spending measure to keep the government running past the end of the current fiscal year. Cantor said the CR would last “through late fall” but provided no details on spending levels or potential policy riders.

On September 8, the 12-member joint panel on deficit reduction held its first public event at the Rayburn House office building, where the six Democrats and six Republicans from the House and Senate on the super committee gave opening statements and discussed the rules under which the panel would operate.

The super committee is charged with finding at least $1.2 trillion to $1.5 trillion more in budgetary savings over the next 10 years, and to come up with those recommendations by November 23,with Congress having to vote on them by December 23. President Obama urged the panel to cut more than $1.5 trillion from 10-year spending plans in his speech to a joint session of Congress on September 8.

A second public appearance by the panel has been set for Tuesday, September 13, when it will hear from Congressional Budget Office Director Douglas Elmendorf. The committee has announced no other public meetings.

Click here to read Senate Appropriations FY12 302(b) allocations.

Veterans Opportunity to Work Act

On Wednesday, September 7, the House Veterans’ Affairs Committee moved ahead with a measure aimed at helping unemployed veterans rejoin the workforce. The Veterans Opportunity to Work Act (HR 2433) would provide college tuition benefits for more veterans and mandate jobs-training program for service members. It would also allow 100,000 unemployed veterans, ages 35 through 64, to apply for Montgomery GI bill benefits. Under the proposal, participating veterans could choose to learn high-demand skills for up to one year in areas such as health care and technology. There are more than 1 million veterans unemployed. The unemployment rate for veterans has historically been higher than the national average, especially among the younger veteran population.

Unemployment Rises

On Friday, September 2, the U.S. Department of Labor Bureau of Labor Statistics reported that the economy added no jobs in August – the worst number since September 2010 -- leaving the number of employed persons at 14 million, and the unemployment rate held at 9.1 percent. In addition, employment in local government continued to decline. Since employment peaked in September 2008, local government has lost 550,000 jobs. Nonfarm payroll and employment in most major industries changed little in August. Health care continued to add jobs, and government employment continued to trend down. The rate has shown little change since April.

Click here to read full report.

 

Upcoming Meeting

WDC 23rd ANNUAL CONGRESSIONAL FORUM
Tuesday, September 13, 2011

WDC 3RD ANNUAL PRE-FORUM TECHNICAL ASSISTANCE PEER-TO-PEER SESSION
Monday, September 12, 2011

St. Gregory Luxury Hotel & Suites
2033 M Street Northwest
Washington, DC

Click here for the final agenda (as of 9/09/11) for both meetings. For those planning to come to D.C., we are looking forward to seeing you next week!

 

New from DOL/ETA

The American Jobs Act

To create jobs, President Obama unveiled the American Jobs Act – nearly all of which is made up of ideas that have been supported by both political parties, and that Congress should pass right away to get the economy moving now. The purpose of the American Jobs Act is simple: put more people back to work and put more money in the pockets of working Americans. And it would do so without adding a dime to the deficit. The U.S. Department of Labor has a major role. Learn more and read the speech.

Statement by Secretary of Labor Hilda L. Solis on August Employment Numbers

Secretary of Labor Hilda L. Solis issued the following statement on the August 2011 Employment Situation report released today: "The private sector added 17,000 jobs in August, but those gains were offset by the loss of 17,000 government jobs. Total non-farm unemployment, therefore, was unchanged last month. The unemployment rate also remained unchanged at 9.1 percent.

"Consumer confidence dropped sharply last month as Congress took the nation to the brink of default. We knew that this legislative gridlock was going to have repercussions, and the hiring slowdown reflected in today's report shows the real-life consequences that political gamesmanship has on business decisions and workers' lives. These numbers are a stark reminder that actions — and inaction — on Capitol Hill have consequences.

Click here to read full article.

 

WIA in the News

Senator Murray Seeks Funds to Train Workforce

Coming out of high school, Eric Tolpingrud admits he was unsure of where he wanted his life to take him. Without the proper training and education that most employers search for, he was prime to face the nation’s unemployment crisis. That was until he enrolled into the Washington Aerospace Training and Resource Center (WATR), where he learned skills in manufacturing aircraft parts. “I knew nothing about anything to do with aerospace,” Tolpingrud said. After three months in WATR, Tolpingrud was able to find a job in two weeks at Giddens Industries in Everett, which manufactures aircraft parts for Boeing.

Click here to read full article.

Romney Job Training Plan Would Lack Financing

Republican presidential candidate Mitt Romney released a policy blueprint yesterday that outlines his support for job training programs. In it, Romney says his objective is to retrain American workers to ensure that they have the education and skills to match the jobs of today’s economy. Furthermore, he says, “in a period of chronic high unemployment such as we are enduring now, retraining workers to fill the opportunities in rising sectors of the new economy remains an especially vital task.”

Interestingly enough, the Center for American Progress Action Fund agrees with those statements. Retraining American workers is absolutely vital to accomplishing our complementary goals of putting Americans back to work and moving our economy forward. What is confusing, however, is how Romney plans to support job training programs if Republicans achieve their goal of eliminating funding for job training.

Click here to read full article.

Napa Valley College Shrinks its Nursing Program

The funds to support Napa Valley College’s spring semester nursing program will be eliminated by the end of this year. The college, which offers a two-year associate degree in nursing, will not offer spring enrollment for 2012, said Kate Benscoter, dean of Health Occupations. The cut does not affect fall semester enrollment or nursing students in progress. Those who enrolled in the program this past spring will still be able to graduate in December 2012, officials said.

Napa Valley College has offered spring enrollment for its nursing program since 2005 because of federal Workforce Investment Act money provided through the state. Former Gov. Arnold Schwarzenegger launched the Nurse Education Initiative in 2005, directing discretionary federal funds to support community college nursing programs.

Click here to read full article.

 

Reports, Announcements, and Articles

New from Brookings

A Weakening Job Market

Payroll employment gains vanished in August. According to minitial estimates just published by the BLS, small employment gains in the private sector were exactly offset by small employment losses in government. In addition, revisions in employment totals for June and July eliminated more than a third of the previously estimated job gains in those months. Thus, not only was payroll growth slower than it has been in any month since September 2010, revisions in previous months’ job totals suggest that employment growth so far this year has been slower than we thought.

Click here to read full article.

How to Invest in U.S. Employment

With the U.S. economy struggling and unemployment above 9 percent, President Barack Obama will outline new measures to create jobs and jumpstart the economy in a speech to Congress on September 8. Labor economist Gary Burtless says investment from both the private and public sectors is vital to generating employment. One way that the government can develop employment remedies, Burtless says, is by increasing its budget for infrastructure investments, either through direct employment of workers, or, indirectly, by hiring private-sector companies with expanded public budgets.

Click here to read full article.

New from the Center on Law and Social Policy

High Unemployment Doesn't Have to be the New Normal

This Labor Day is different. The old truths about a dynamic labor market in which the young and unemployed could quickly find jobs have given way to a grim new reality - weak job growth and high levels of prolonged unemployment.

This shift threatens to transform far too many of America's once productive workers into permanently unemployed or unemployable people. Nearly one-third of the nation's 14 million unemployed workers have been jobless for a year or more, and an additional 8.4 million are working part-time because their hours have been reduced or they simply can't find full-time jobs. Equally troublesome is that only 58 percent of those over age 16 are working, the lowest percent since 1983. The employment situation is worse for young people, older workers, black and Hispanic workers and those with no more than a high school education.

Click here to read full article.

In Our View: America's Backbone

Labor Day has evolved over the years. What began as an ode to unionized workers, to those who were banding together to fight unacceptable working conditions, has been altered over the past century.Now the holiday is often regarded as simply another day off, a chance for a final fling of summer, an opportunity for a backyard barbecue. Yet it remains important to assess the meaning of the occasion.

Established as a federal holiday in 1894, Labor Day celebrated a movement that eventually proved crucial to the development of the world's most powerful economy and the rise of America's middle class.Today, the Bureau of Labor Statistics reports that union membership stands at 11.9 percent of the workforce. Not counting government employees, the rate of union membership is 6.9 percent.

Click here to read full article.

Who's Working This Labor Day?

It's alarming enough that unemployment has hovered around 9 percent or more since April 2009, but equally troubling is that workers are remaining unemployed longer and many are dropping out of the labor force altogether. This trend threatens to turn far too many of America's once productive workers into permanently unemployed and unemployable people, the Center for Law and Social Policy said today.

A new CLASP fact sheet highlights data showing a decline in workforce participation and the difficulty many long-term unemployed face in plugging back into the labor market. Among other things, it reveals there are far more job seekers than jobs, people are out of work for longer periods of time, and a smaller percent of the population is working.

Click here to read full article.

Click here to read full factsheet.

Census: Area Government Workers Average More in Pay

For more than 125 years, Americans have celebrated Labor Day. Starting in 1882, more than 10,000 workers marched down the streets of New York City in a parade organized by Peter J. McGuire, a Carpenters and Joiners Union secretary. Eleven years later, more than half the states were observing Labor Day and by 1884, Congress passed a bill establishing it as a federal holiday. President Grover Cleveland signed the bill soon after and designated the first Monday in September as Labor Day.

Click here to read full article.

New from the Government Accountability Office

Temporary Assistance for Needy Families: Update on Families Served and Work Participation

The Temporary Assistance for Needy Families (TANF) program, created in 1996, is one of the key federal funding streams provided to states to assist low-income families. A critical aspect of TANF has been its focus on employment and self-sufficiency, and the primary means to measure state efforts in this area has been TANF's work participation requirements. When the Deficit Reduction Act of 2005 (DRA) reauthorized TANF, it also made changes that were generally expected to strengthen these work requirements.

Given the impending extension or reauthorization of TANF, this testimony primarily draws on previous GAO work to focus on (1) how the welfare caseload and related spending have changed since TANF was created and (2) how states have met work participation rates since DRA. To address these issues, in work conducted from August 2009 to May 2010, GAO analyzed state data reported to the Department of Health and Human Services (HHS); surveyed state TANF administrators in 50 states and the District of Columbia; conducted site visits to Florida, Ohio, and Oregon, selected to provide geographic diversity and variation in TANF program characteristics; and reviewed relevant federal laws, regulations, and research.

Click here to read the summary of the report.

Click here to read the full report.

New from National Youth Employment Coalition

Help Build the Good Jobs, Green Jobs Agenda

Now in its fifth year, the Good Jobs, Green Jobs Conference will hold four regional conferences throughout the country in 2012. These Regional Conferences— in Atlanta, Los Angeles, Philadelphia, and Detroit — provide a unique opportunity to meet like-minded people and build coalitions that will move us forward to a cleaner, greener and more prosperous economy.

The 2012 Good Jobs, Green Jobs Regional Conferences will each reflect the character and uniqueness of their locations and will bring together thousands of labor, environmental, business, elected and community leaders working in their area and around the country to promote, preserve, and build coalitions that create good jobs and preserve our economic and environmental future. The Regional Conferences provide a renewed focus on networking opportunities and showcase the best and most innovative ideas and strategies in the public, private and non-profit sectors.

As the Good Jobs, Green Jobs National Conference prepares for the 2012 Regional Conferences, they are asking for your proposals for workshops and panels. Each of the 2012 Good Jobs, Green Jobs Regional Conferences will reflect the character, challenges and opportunities unique to each region and bring the conversation about how to build a green economy to local communities. These conferences will be convened by a diverse coalition of emerging small businesses, government agencies, green industry trade associations, labor unions, environmental organizations, and educational institutions. The deadline to have your proposal considered is September 30, 2011.

Click here for more information.

 

ETA Releases

 

© The U.S. Conference of Mayors
1620 I St., N.W.
4th Floor
Washington, DC 20006
202.293.7330