2011 NAACP Convention: Labor Workshop

Labor Market Outlook

U.S. Department of Labor Assistant Secretary William E. Spriggs Office of Policy July 25, 2011

 Nearly 3 million jobs were lost in the six months before President Obama took office.  In the month the president was inaugurated, the economy lost over 800,000 jobs.

 The black unemployment rate rose 10 straight months before President Obama took office.  The actions of this Administration, including the passage of the Recovery Act had an immediate effect of stemming the tide of job losses. Through our actions, the economy has started to create private sector jobs and has done so in every month of this year. ◦ Since February 2010, the private sector has added 2.1 million jobs ◦ According to estimates from the Council of Economic Advisors, if the Recovery Act had not passed, as much as 3.5 million more jobs would have been lost.

US Department of Labor

Monthly Change in Total Private Employment Jan 2008 - May 2011 -200 -400 -600 -800 400 200 0 -1000 2008 2009 Source: Bureau of Labor Statistics, Current Employment Statistics 2010

US Department of Labor

2011

25.0

Black Unemployment Rate in Context

20.0

15.0

10.0

5.0

0.0

Overall Unemployment Rate January 1983 Black Unemployment Rate January 1983 Peak Black Unemployment March April 2010 Source: Bureau of Labor Statistics Current Black Unemployment June 2011 US Department of Labor Jan-83 Current

 From 2007 to 2009, black employment took the largest hits in: ◦ manufacturing, ◦ financial activities, ◦ ◦ ◦ wholesale and retail trade, transportation and warehousing, and construction.  Together these industries employed nearly 1 million fewer blacks in 2009 than they did in 2007. In 2010, employment declines among black workers continued in financial activities, transportation and warehousing, and construction. US Department of Labor

With an annual budget of about $10 billion appropriated by Congress, the Department of Labor’s Employment and Training Administration administers programs that have at their core the goals of enhanced employment opportunities for workers and economic prosperity for businesses.

US Department of Labor

 The Department of Labor is working alongside other agencies in the Obama Administration to get blacks or African Americans back to work: ◦ Wagner-Peyser program: From October 2009 to September 2010, 4.3 million or 19% of all participants were African-American.

◦ Workforce Investment Act: From April 2009 to March 2010, 330,000 Adult and Dislocated African American workers received training and counseling. 140,000 found jobs from October 2008 to September 2009 ◦ Community Based Job Training Grants: As of September 2010, 28,392 African Americans have been served.

◦ High Growth and Emerging Industries Grants: As of September 2010, 13,060 African Americans have been served.

US Department of Labor

 Transitioning more black youth to employment through programs targeting individuals affected by high poverty and high unemployment.

◦ Programs such as Job Cops and YouthBuild provide job training and educational opportunities for low income or at-risk youth aged 16 to 24. As of September 2010, there are 8,380 African American youth enrolled in YouthBuild, representing nearly 60 percent of the participants served in the program.

◦ Black youth represented approximately 50 percent of Job Corps students. In addition, VETS and ETA recently announced a pilot for 300 veterans to participate in Job Corps.

US Department of Labor

Over-the-year change in payroll employment, June 2011 83 Mining & Logging Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Financial Activities Professional & Business Services Education & Health Services Leisure & Hospitality Other Services Government -1150 -34 -43 -9 94 112 100 164 236 -892 -950 -750 -550 -350 -150 Source: Bureau of Labor Statistics, Current Em ploym ent Statistics 50 101 250 450 445 532 650

US Department of Labor

State and Local Government during Recession and Recovery

January 2007 - June 2011

19900 19800 19700 19600 19500 19400 19300 19200 19100 19000 18900 2007 2008 2009

Source: Bureau of Labor Statistics, Current Employment Statistics

2010 2011 US Department of Labor

 Work Opportunity Tax Credit ◦ The Work Opportunity Tax Credit (WOTC) is a Federal tax credit that provides private-sector businesses incentives for hiring individuals by being able to reduce their federal income tax liability for hiring workers from among nine target groups who have consistently faced significant barriers to employment. In FY2010 almost 850,000 certifications were issued by state work force agencies for this credit.

◦ ◦ The target groups are long term TANF recipients, disabled veterans, people living in urban or rural empowerment zones, disconnected youth, unemployed veterans, the formerly incarcerated, and 18-39 year old SNAP (food stamp) participants.

Credits range from $9,000 per worker for hiring long term TANF recipients to $1,200 for hiring youth in the summer. US Department of Labor

 Hiring Incentives to Restore Employment (HIRE) Act ◦ Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”).

◦ The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.

◦ In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000.

US Department of Labor

Steps to Enhance Job Creation

American Recovery and Reinvestment Act Extension of Unemployment Insurance Extension of tax cuts for all Americans Education Jobs and Medicaid Assistance Act Small Business Jobs Act US Department of Labor

 

Revision of temporary visa programs—H-2A and H-2B Updating of Office of Federal Contract Compliance regulations on posting of job openings

US Department of Labor