The September Jobs Report Misses Employment Forecasts, Unemployment down to 5.2%.

The September Jobs Report Misses Employment Forecasts, Unemployment down to 5.2%.

The United States (U.S.) economy added 235,000 jobs in August of 2021, the lowest in seven months and well below forecasts of 750,000 as a surge in COVID-19 infections may have discouraged companies from hiring and workers from actively looking for a job.

 

Most jobs were created in professional and business services (+74,000), transportation and warehousing (+53,000), private education (+40,000), manufacturing with most of them coming in motor vehicles despite ongoing struggles to source parts, and other services (+37,000). Employment in retail trade declined over the month (-29,000) mostly because of food and beverage stores (-23,000) and building material and garden supply stores (-13,000). Employment in leisure and hospitality was unchanged.

 

Source: Analysis U.S. Department of Labor and Wells Fargo Securities

 

Overall, nonfarm employment has risen by 17 million since April 2020 but is down by -5.3 million, or 3.5%, from its pre-pandemic level in February 2020.

The standard, headline unemployment rate (U-3) dropped to 5.2 percent in August 2021, the lowest level since March 2020 and in line with market expectations, as the labor market continued its steady recovery following business re-openings in the US and despite reports of labor supply shortages and concerns over the lingering threat of the COVID-19 resurgence. The number of unemployed people fell by 318,000to 8.38 million, while employment levels increased by 509,000 to 153.15 million.  The broad or real unemployment rate (U-6) is at 8.90%, compared to 9.60% last month and 14.30% last year. This is lower than the long term average of 10.44%.

Headline and Real Unemployment Rates

Although the jobless rate remained well above the pre-crisis level of about 3.5 percent, experts believe that the rate should decline further due to strong economic activity and demand for labor

As indicated, the Delta surge is holding down job growth in the leisure & hospitality sector. After increasing by more than 300K for four straight months, employment growth was stagnant in August.

Unemployment Intensity is the product of the duration and the rate of unemployment.  The unemployment intensity is constructed by multiplying the unemployment rate for an index representing the average duration of unemployment, with the idea that unemployment becomes more intense when its duration increases.  As shown below unemployment intensity has increased since the end of the COVID-19 recession but appears to have leveled out and possibly shifting downward.

Unemployment Intensity Index .

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Machinists Vow to Fight ‘Anti-Democratic, Anti-American’ Texas Voter Suppression Law

IAM International President Robert Martinez, Jr., is urging union members and allies to help unseat the “right-wing radicals” who spearheaded the new Texas state law that suppresses voter rights.

Republican Gov. Greg Abbott recently signed Senate Bill 1 into law after the Republican-led legislative passed it during a special session.

The new law sets restrictions such as banning 24-hour voting and drive-thru voting. The law also restricts officials from mailing unsolicited mail-in ballot applications and sets new requirements for those tasked with helping those with disabilities at the polls.

This is a blatant attempt by Abbott and the radical right to turn back the clock on voting rights when we should be making it easier to vote. 

The Machinists Union strongly pushed for the successful passage of the John R. Lewis Voting Rights Advancement Act of 2021 (H.R. 4) through the U.S. House of Representatives last month to fight back against laws just like this one. The legislation would restore key provisions of the Voting Rights Act of 1965 that John Lewis fought for, and put us back on a path toward racial equity in voting.

Martinez, a Texas native, tweeted for IAM members and our allies to lift up “by defeating right-wing radicals at the ballot box and in the courts.”

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President Biden Honors Labor Unions, Essential Workers at White House

President Biden delivered a historic speech from the White House recognizing unions and essential workers for their sacrifices and courage in keeping America moving during the COVID-19 pandemic. The president honored the legacy of the late AFL-CIO President Rich Trumka and took a moment of silence to remember working people who have passed away from the virus.  

The president called for the passage of the Protecting the Right to Organize (PRO) Act, legislation that would repeal anti-worker “right-to-work” laws and encourage the formation of unions while expanding collective bargaining rights to more sectors of the economy. Biden also pushed for stronger “Buy American” rules, expanding elder and child care, and passing infrastructure investments and middle-class tax cuts through Congress.

Biden specifically mentioned Machinists Union members and other union members who have worked on the frontlines during the pandemic.

WATCH: President Biden honors labor unions at White House  

“President Biden has promised to be the most union-friendly president in our lifetime and he has kept his word,” said IAM International President Robert Martinez Jr. “The Biden-Harris administration continues to move a historic pro-worker, pro-democracy agenda that supports and grows the labor movement. Our members will continue fighting to help build back better for our nation’s aerospace, manufacturing, transportation, and all workers.”

“In my White House, labor will always be welcome,” said Biden. “When unions win, workers across the board win. Families win, communities win and America wins. And despite this, workers have been getting cut out of the deal for too long a time.” 

Biden’s pro-union address, which was preceded by speeches from U.S. Labor Secretary Marty Walsh and AFL-CIO President Liz Shuler, came after celebrating Labor Day with union workers in his home state of Delaware.

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Machinists, Rep. Norcross Leading Charge for ‘Buy American’ Defense Expansion

An amendment championed by the IAM and U.S. Rep. Donald Norcross (D-NJ) that would dramatically increase domestically made procurement requirements in major defense programs has cleared a critical hurdle in Congress.

The IAM, North America’s largest aerospace defense union, has been pushing the increase for years in order to strengthen the defense industrial base and domestic supply chain while helping prevent vulnerabilities created by military products being made in China and other countries.

“Buy American policies serve the public good by targeting our tax dollars for the purchase of American-made products and services,” said IAM International President Robert Martinez Jr. “We must understand that the foundation of our industrial base lies with the skills and abilities of the American worker. Congressman Norcross’s amendment would help ensure that our tax dollars are used to support the U.S. workforce and the firms who employ them.” 

READ: Machinists Union letter supporting Rep. Norcross’s “Buy American” NDAA amendment

The amendment passed on a bipartisan vote during a House Armed Service Committee mark-up of the Fiscal Year 2022 National Defense Authorization Act (NDAA). The legislation would increase “Buy American” requirements for major defense programs from 55 percent to 60 percent upon the bill’s enactment. Requirements would further rise to 65 percent by 2024 and to 75 percent by 2029.

“I am proud to have fought for provisions that make America safer by investing in the American worker,” said Norcross. “This bill will put us on a path to build back better by increasing our domestic supply chain capabilities, strengthening our workforce, and giving our service members the tools they need to win the future fight.”

The number of Chinese suppliers in the U.S. defense industrial base has risen 420 percent since 2010, according to a report from the data analytics firm Govini.

Under Buy American defense procurement policy, Canadian produced military components are considered domestically made. The Norcross Buy American amendment retains a preference for Canadian-made military products.

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American Rescue Plan Saves TCU/IAM Jobs

American Rescue Plan Saves TCU/IAM Jobs

Fewer riders, fewer tickets bought and scaled-back schedules were just a few of the COVID-induced hurdles facing Amtrak during the past year and a half. All of those obstacles caused the railroad industry to lose millions, and threatened the livelihoods of thousands of Amtrak  employees.

Workers often only discover how legislation impacts their lives when they see immediate results. The American Rescue Plan did just that. The massive relief legislation was negotiated and signed into law by President Biden and Congressional Democrats, and provided direct immediate relief to American workers to help rescue the economy during the COVID-19 pandemic.

Part of that relief helped hard-hit public transit agencies and Amtrak to major avoid layoffs and service reductions which, in turn, kept thousands of TCU/IAM members from being furloughed or recalled them from furlough. Together, the IAM and TCU/IAM fought hard to pass the American Rescue Plan, which brought much-needed relief to working families.

Art Gonzales is an Amtrak Service Attendant/Train Attendant (SATA) and President of TCU/IAM Local 2508 in Los Angeles. With nearly 10 years under his belt, Gonzales was furloughed for about nine months beginning last November, but was brought back to work in May thanks to the American Rescue Plan.

“We do have this legislation and these people fighting for us, so that’s a safety net. Having TCU behind us was our safety net,” said Gonzales.

The Transportation Communications Union lobbied heavily on Capitol Hill for that safety net – to save jobs that keep America and Americans moving, to increase unemployment benefits, not to mention ongoing efforts to bolster railroad retirement benefits.

“TCU members are working hard all across this country,” said TCU/IAM President Artie Maratea. “This pandemic has shown us how much we need to support each other. A strong, vibrant labor movement — one that gets in front of change, supports its members and stands in solidarity with everyone is the only way to create the kind of future we all want and deserve.”

The funding brought back hundreds of Amtrak workers like Gonzales, and he is forever grateful. “I believe it’s strong legislation, it’s needed,” said Gonzales. “I try to find the best things from everything.”

Gonzales works on California’s Pacific Surfliner. His day starts at 6 a.m. and often ends at 10 p.m., as he travels 351 miles between Los Angeles, San Diego, Santa Barbara and San Luis Obispo.

“When I’m at work, I give 100%.,” said Gonzales. “It makes me proud to be able to work for a union that works as hard as me – that will fight for me and my family.” 

His message to other furloughed workers is to stay grounded and look above your current situation and know that hopefully, your company is giving you the resources you need. But regardless, “the union is always there for you, no matter what,” said Gonzales.

He’s also thankful for being able to continue his work as an instructor with the Los Angeles Job Corps, which trains young adults. Gonzales preps them to be train attendants and helps them get ready for interviews. The program has a high success rate, with many of the trainees getting hired at Amtrak or other employers.

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