PUBLIC AFFAIRS - American
Embassy
U.S. ECO ONLINE A SELECTION OF DOCUMENTS RECENTLY
PUBLISHED ON THE WEB No 144 – February 2012 -
extracts
Bureau of Labor Statistics, U.S. Department
of Labor - February 1, 2012 – 15 pages http://www.bls.gov/news.release/pdf/ecopro.pdf Industries and occupations related to health
care, personal care and social assistance, and construction are projected to
have the fastest job growth between 2010 and 2020, the U.S. Bureau of Labor
Statistics reported today. Total employment is projected to grow by 14.3 percent
over the decade, resulting in 20.5 million new jobs. CBO - February 2012 – 37
pages http://www.cbo.gov/ftpdocs/127xx/doc12757/02-16-Unemployment.pdf “The United States is experiencing the
longest stretch of high unemployment since the Great Depression… In analysis of
a number of tax and spending policies designed to increase output and employment
in 2012 and 2013, CBO found the largest increases in employment per dollar of
budgetary cost would be produced by reducing the marginal cost to businesses of
adding employees and targeting people most likely to spend the additional income
(generally, people with lower income).” Daniel Aaronson, Jonathan Davis, and Luojia
Hu FRB Chicago – Fed Letter – March 2012 – 4
pages http://chicagofed.org/digital_assets/publications/chicago_fed_letter/2012/cflmarch2012_296.pdf “The authors conclude that just under half
of the post-1999 decline in the U.S. labor force participation rate, or LFPR
(the proportion of the working-age population that is employed or unemployed and
seeking work), can be explained by long-running demographic patterns, such as
the retirement of baby boomers. These patterns are expected to continue,
offsetting LFPR improvements due to economic recovery.” House Subcommittee on Commerce,
Manufacturing, and Trade – Hearing - February 15, 2012 http://energycommerce.house.gov/hearings/hearingdetail.aspx?NewsID=9274 The witnesses are: John Abowd, Edmund Ezra Day Professor of
Economics, Cornell University John Berlau, Director, Center for Investors
and Entrepreneurs, Competitive Enterprise Institute Harold Sirkin, Managing Director, Boston
Consulting Group, Inc. John Schmitt, Senior Economist, Center for
Economic and Policy Research House Committee on Education and the
Workforce – Hearing – February 1, 2012 http://edworkforce.house.gov/Calendar/EventSingle.aspx?EventID=276436 This “hearing will provide committee members
an opportunity to learn about state proposals to encourage fiscal discipline and
job creation, as well as discuss various federal policies that affect these
state efforts. Additionally, members will listen to witnesses describe the
current economic landscape and the ongoing challenges facing small business
owners.” David
Dapice YaleGlobal - February 3, 2012 –
http://yaleglobal.yale.edu/content/tax-reform-may-not-bring-us-jobs-back Technology and ever-growing productivity,
not outsourcing, are the main culprits behind declining jobs in the United
States, according to the author. The U.S. president has proposed revising tax
policy to encourage companies to apply growing profits to factories and research
inside the U.S. But manufacturing is going the way of agriculture; fewer workers
producing more. "Because of automation and technology, each factory worker
produces about four times as much per hour as 30 years ago," explains Dapice.
Productivity irrevocably eliminates some jobs, unless consumers are willing to
pay higher prices by retaining low productive labor, so economies of the U.S.
and other nations are in a new era.
Algernon Austin Economic Policy Institute - February 16,
2012 – 8 pages http://www.epi.org/files/2012/ib322.pdf Even though the U.S. recession officially
ended in June 2009, the country's unemployment rate remains devastatingly high.
The situation is particularly dire for many African Americans and Latinos and is
not predicted to improve any time soon. Among the states with sufficient data
for reliable estimates, African American unemployment rates exceeded 10 percent
in 24 states and the District of Columbia in the third quarter of 2011, while
unemployment rates for Latinos exceeded this symbolic threshold in 14 states.
Unemployment Insurance:
Economic Circumstances of Individuals Who Exhausted
Benefits GAO – Study - February 17, 2012 – 48
pages http://www.gao.gov/products/GAO-12-408 Highlights - http://www.gao.gov/assets/590/588679.pdf Among the 15 million workers who lost jobs
from 2007 to 2009, half received Unemployment Insurance (UI), and about
one-fourth of the recipients exhausted UI benefits by January 2010. This
represents 2 million displaced workers who exhausted UI as of early 2010, the
most recent survey data available. Labor estimated that about an additional
3-1/2 million individuals exhausted benefits in 2010 and 2011. Many of the
displaced workers who exhausted UI by January 2010 appear to have faced
difficult economic circumstances. A
Blueprint to Train Two Million Workers
for High-Demand Industries through a Community College to Career
Fund White House - Fact Sheet – February 13,
2012 A new $8 billion Community College to Career
Fund, co-administered by the Department of Labor and the Department of
Education, “will help forge new partnerships between community colleges and
businesses to train two million workers for good-paying jobs in high-growth and
high-demand industries. It provides
funding for community colleges and states to partner with businesses to train
workers in a range of high-growth and in-demand areas, such as health care,
transportation, and advanced manufacturing.” Workforce Investment Act: Innovative
Collaborations between Workforce Boards and Employers Helped Meet Local
Needs GAO – Report - January 19, 2012 – 73
pages http://www.gao.gov/products/GAO-12-97 “As the United States continues to face high
unemployment in the wake of the recent recession, federally funded workforce
programs can play an important role in bridging gaps between the skills present
in the workforce and the skills needed for available jobs. The Workforce
Investment Act of 1998 (WIA) sought to strengthen the connection between
workforce programs and employers, but GAO’s prior work has found that
collaboration remains a challenge. With WIA currently awaiting reauthorization,
GAO reviewed (1) factors that facilitated innovative collaborations among
workforce boards, employers, and others; (2) major challenges to collaboration;
and (3) actions the Department of Labor (Labor) has taken to support local
collaborative efforts. GAO examined 14 local initiatives identified by experts
as among the most promising or innovative efforts.” Senate Subcommittee on Employment and
Workplace Safety – Hearing – February 16, 2012 http://www.help.senate.gov/hearings/hearing/?id=5908d481-5056-9502-5dc8-e1456c5d8dab “As the United States continues to face high
unemployment in the wake of the recent recession, federally funded workforce
programs can play an important role in bridging gaps between the skills present
in the workforce and the skills needed for available jobs. However, there is
growing recognition that these programs need to better collaborate with
employers to align services and training with employers’
needs.” Nick
Schulz American Enterprise Institute – Article –
January 31, 2012 “The United States is in a precarious
condition. The American economy still has not fully recovered from the downturn
that began in 2008… For Americans long accustomed to stable growth and low
unemployment rates, the past few years have come as a profound and unsettling
shock. As policymakers rattle around their tool kits looking for ways to help
the American economy, now is a good time to take a new look at immigration, in
particular high-skilled immigration. In this paper, we will examine some of what
scholars and the public have learned over the years about the economic effects
of adding new skilled immigrants to the work force.” J.
David Brown, Julie L. Hotchkiss, and Myriam
Quispe-Agnoli Federal Reserve Bank of Atlanta - Working
Paper – February 2012 – 60 pages http://www.frbatlanta.org/documents/pubs/wp/wp1202.pdf The authors find that a firm not employing
undocumented workers is at a competitive disadvantage, especially if its rivals
do. However, they also determine that the impact of employing undocumented
workers varies across sectors and with the skill level of the workers, among
other factors. Pamela Villarreal NCPA - Issue Brief - February 02, 2012 – 4
pages http://www.ncpa.org/pdfs/ib105.pdf The federal minimum wage is currently $7.25
an hour, but some states and cities have minimum wages that are significantly
higher. Furthermore, eight states raised their minimum wage, effective January
1, 2012. House Subcommittee on Health, Employment,
Labor, and Pensions – Hearing - February 2, 2012 http://edworkforce.house.gov/Calendar/EventSingle.aspx?EventID=276441 “The hearing explored the financial and
management challenges at the Pension Benefit Guaranty Corporation (PBGC), as
well policy proposals intended to strengthen the financial standing of the
corporation. In fiscal year 2011, PBGC paid retirement benefits to more than
819,000 individuals at a cost of $5.3 billion. According to its own estimates,
PBGC faces a deficit of $26 billion. The corporation obtains some of its revenue
through premiums paid annually by plan sponsors, such as
employers.” Melissa M. Favreault et al.
Urban Institute - Web posted February 6,
2012 – 12 pages http://www.urban.org/uploadedpdf/412490-boomers-retirement-income-prospects.pdf The lackluster economy, eroding traditional
pensions, and volatile stock market suggest that baby boomers, those born
between 1945 and 1965, face increasingly uncertain retirements. The projections
show that lower - and moderate-income boomers will continue to rely on Social
Security for most of their retirement income. While the projections reflect some
good news - women will reap the rewards of working and earning more than
previous generations - they also raise alarms. Between 30 and 40 percent of
boomers will not have enough income at age 70 to replace 75 percent of their
preretirement earnings, a common standard for measuring retirement income
adequacy. Andrew G. Biggs American Enterprise Institute - State Tax
Notes - February 13, 2012
“According to standard actuarial accounting,
the average public pension was 76 percent funded in 2009, down from 95 percent
in 2001… Put simply, current public pension accounting rules cause the plans to
promise too much, contribute too little, and take too much investment risk. To
understand the real cost of state and local pensions, we must turn to market
valuation.” Gallup - February 14,
2012 http://www.gallup.com/poll/152621/Fewer-Americans-Employer-Based-Health-Insurance.aspx Fewer Americans got their health insurance
from an employer in 2011 (44.6%) than in 2010 (45.8%), continuing the downward
trend Gallup and Healthways have documented since 2008. As employer-based health
insurance has declined, the percentage of Americans who are uninsured has
increased, rising to 17.1% this year. Richard S. Foster House Committee on the Budget – Testimony -
February 28, 2012 – 18 pages http://budget.house.gov/UploadedFiles/FosterTestimony_2-28-22012.pdf “I welcome the opportunity to assist you in
your efforts to ensure the future financial viability of Medicare (the nation’s
second largest social insurance program) and Medicaid (the largest government
health program in terms of the number of people covered). Together, these
programs are a critical factor in the income security of our aged, disabled, and
low-income populations” U.S. Department of Health and Human Services
- February 2, 2012 – 4 pages http://aspe.hhs.gov/health/reports/2012/MedicareBeneficiarySavings/ib.pdf Nearly 3.6 million people with Medicare
saved $2.1 billion on their prescription drugs in 2011 thanks to the Affordable
Care Act according to data issued by the Department of Health and Human Services
(HHS). Savings for people with Medicare will increase over time. According to
the report, the average person with Medicare will save nearly $4,200 by 2021
because of the new law. Scott
Beaulier and Brandon Pizzola Mercatus Center, George Mason University -
Working Paper - February 2012 - 34 pages http://mercatus.org/sites/default/files/publication/Politicaleconomyofmedicaid.pdf “Of the big three U.S. entitlement programs
Medicaid, Medicare, and Social Security Medicaid has been growing the most
rapidly over the last few years. One of the Great Society programs introduced by
President Lyndon Johnson in 1965, Medicaid is the major health care financing
system for the poor, some elderly, and the disabled… In 2010, the most recent
fiscal year for which we have data, annual Medicaid spending totaled nearly $375
billion and accounted for more than 15 percent of U.S. health expenditures, and
more than 51 million people received some Medicaid coverage… In this paper, we
look at the recent growth in Medicaid spending and attempt to explain Medicaid
reform successes and failures by focusing on five reform
experiences.”EMPLOYMENT
Employment Projections -
2010-20
Understanding and
Responding to Persistently High Unemployment
Explaining the Decline in
the U.S. Labor Force Participation Rate
Where the Jobs Are:
Employment Trends and Analysis
Expanding Opportunities for
Job Creation
Tax Reform May Not Bring US
Jobs Back
No Relief in 2012 from High
Unemployment for African Americans and Latinos
TRAINING – SKILLS -
WAGES
Addressing Workforce Needs
at the Regional Level: Innovative Public and Private
Partnerships
The Human Capital
Imperative: Bringing More Minds to America
Does Employing Undocumented
Workers Give Firms a Competitive Advantage?
Minimum Wage
Myths
PENSIONS
Examining the Challenges
Facing PBGC and Defined Benefit Pension Plans
Boomers' Retirement Income
Prospects
Understanding the True Cost
of State and Local Pensions
HEALTH ECONOMIC
ISSUES
Fewer Americans Have
Employer-Based Health Insurance
The Financial Outlook for
Medicare, Medicaid, and Total National Health
Expenditures
Medicare Beneficiary
Savings and the Affordable Care Act
The Political Economy of
Medicaid: Evidence from Five Reforming States