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Louisiana Illuminator

Job growth exceeds economists’ expectations as unemployment inches up

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lailluminator.com – Casey Quinlan – 2023-09-01 17:14:28

Job growth exceeds economists' expectations as unemployment inches up

by Casey Quinlan, Louisiana Illuminator
September 1, 2023

The labor market is stable and healthy, economists and policy experts say, although the unemployment rate ticked up in the month of August.

The Bureau of Labor Statistics' report released Friday showed that unemployment rose to 3.8% in August from 3.5% in July. Meanwhile the economy added 187,000 jobs, above expectations of 170,000 jobs from economists polled by Reuters. In July, 157,000 jobs were added.

Although a rise in the unemployment rate may look foreboding, it's actually an indication of people looking for work in a more attractive labor market with higher wage growth and employers who may be more willing to offer more job flexibility, said Mike Konczal, a director at the Roosevelt Institute, a progressive think tank. Those factors may have appealed to people who were returning to the labor market after some time away.

“We saw that the unemployment rate went up, basically entirely because the labor force expanded. The labor force is people looking for a job and working. And in particular, among the unemployed, people who are new entrants to the labor market, were the ones who drove it,” Konczal said.

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The number of jobs the economy added this month is also cause for confidence in the job market, even if it is slowing down.

“For this stage of recovery where unemployment has been below 4% for well over a year, that level of job growth is pretty remarkable. You would probably only need like 100,000 [jobs added] to keep up with the population growth,” Konczal said.

Wages inched up 0.2% in August compared to 0.4% in July. Overall, wage growth rose 4.3% over the past 12 months. Although wage growth is still strong and higher on a three-month basis than it was before the pandemic, Konczal said it's lower than a year and a half ago when the Federal Reserve was concerned it would fuel inflation.

The Fed raised the key interest rate in July, making it the highest in more than two decades. It is considering raising it again to continue fighting inflation to bring it down to its target of 2% from its current rate of 3.2%.

Economists and policy experts caution that a rate hike from the Fed could hurt some of the gains workers made during the recovery.

“We should be concerned about the labor market softening too fast given that there's been a lot of rate hikes,'' Konczal said. “We know housing is still probably going to slow again.”

Economists and policy advocates also are closely tracking the unemployment rate in the Black community, which fell to a record low of 4.7% in April, before seeing  two consecutive months of increases. It hit a high of 6% in June, and currently stands at 5.3% in the August jobs report.

(312,000) – that indicate a slowing. We have long maintained that rate hikes – which disproportionately impact marginalized workers – are not the right tool for fighting inflation. To me the most recent trends make that even more clear.”

The Bureau of Labor Statistics also revised those 187,000 jobs in July down to 157,000 jobs.

The marginalization and discrimination against Black people in the U.S. economy is one of the reasons that economists look at Black unemployment and other relevant labor data as an indicator of where the economy is headed, economic research has shown. Black workers ages 25 to 54 faced higher unemployment earlier and for a more sustained period than white workers in the Great Recession, according to a 2020 analysis from the Federal Reserve Bank of Dallas.

Konczal said, “The Fed has indicated that it is comfortable with unemployment going up a little bit to fight inflation in different ways. And I think there's good reason and empirical reason to think Black unemployment might increase first. It is still something to watch with concern.''

Bilal Baydoun, director of policy and research at Groundwork Collaborative, said the strong labor market has provided more opportunities for labor organizing this year. There have been 251 labor actions from January to Aug. 30, according to Cornell's strike tracker.

“This is a historic opening for workers not just to make progress against the pandemic economy and the pandemic recovery, but also against the pre-pandemic economy. The rise in labor activity spurred by a tight labor market is very promising,” he said. “And the Fed is threatening to stifle a lot of that progress, which is curious because merely years ago, the very workers that we almost exclusively refer to as essential are proving to be ever expendable in Fed policymaking.”

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Louisiana Illuminator is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com. Follow Louisiana Illuminator on Facebook and Twitter.

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Landry removes job requirements, trumps local authority for industrial tax breaks

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lailluminator.com – Greg LaRose – 2024-02-22 05:00:54

Landry removes job requirements, trumps local authority for industrial tax breaks

by Greg LaRose, Louisiana Illuminator
February 22, 2024

Companies that receive major breaks on their local property taxes to invest in large industrial projects in Louisiana will no longer have to set hiring goals to get the incentive, plus they won't need approval from local taxing authorities if the governor is in favor of their proposal.   

Gov. Jeff Landry signed an executive order Wednesday that upends the standards and approval process that's been place for the Industrial Tax Exemption Program (ITEP) since 2016. The signing took place during the governor's appearance at a Louisiana Association of Business and Industry luncheon, according to the Baton Rouge Business Report

“This program is about capital investment. It is not about job creation,” Landry said.

Since 1998, Louisiana has awarded more than $20 billion in local tax breaks to industry through its Industrial Tax Exemption Program, according to an Ohio River Valley Institute analysis. 

Flow from the ITEP spigot slowed significantly in 2016 then-Gov. John Bel Edwards issued an executive order that required local approval of industrial tax exemptions. He also reduced the tax break available from 100% of property taxes to 80% and inserted a job-creation requirement for companies. Landry's order keeps the tax reduction at the same level.

The executive order he signed Wednesday also condenses the process for companies to receive local approval on their tax exemptions. Previously, each local body that collects property taxes had to approve tax breaks independently with a separate public hearing. For example, a parish school board could approve the tax exemption, but a parish council or sheriff could reject it. The business would then receive a partial tax break.  

Landry's new arrangement calls for a single parish industrial board, which would include representatives from the taxing agencies, to consider ITEP applications. Its vote would apply to all local agencies that receive property taxes, meaning companies would get approval a total tax break or none.

The executive order also upends the sequence of approval to award industrial tax exemptions, placing ultimate power in the governor's hands. Local approval has been necessary for an ITEP request to advance for consideration to the state Board of Commerce and Industry, a 24-member panel of appointees from business groups and the governor. 

Now, under Landry's order, companies will first submit their applications to the Board of Commerce and Industry. If their request is approved, the state panel will then notify a parish industrial board that it must hold a public hearing on the application within 45 days.

However, the order says little about what weight the local recommendation has in the ITEP approval process or how it factors into the governor's decision.

“Input from the Local ITEP Committee is important for consideration of an industrial tax exemption; however, it should not unduly delay the ITEP application process,” the order reads.

In an email, the Illuminator asked Landry spokesperson Kate Kelly about the governor's ability to override a local ITEP vote.

“The governor is the final say,” Kelly said.

Together Louisiana, a coalition of church and civic groups, has been highly critical of the state's generous ITEP giveaways. In a statement Wednesday, the group questioned whether Landry's order turned the incentive program into “a gift.”

“If a corporation gets a tax exemption, not to bring in a new plant or create jobs, but just as a public subsidy for its routine capital investments — investments, that is, that would have happened anyway — the result is not economic development. It's the opposite,” the Together Louisiana statement said. 

“In that scenario, local communities don't get new economic activity, but they still lose the millions in tax revenue from their schools, roads and police,” the statement continued. “They lose jobs — the teachers, construction workers, sheriff's deputies and others who would have provided the services that went unfunded. And their property taxes start going up, to fill the holes in the tax base left by each new round of gratuitous giveaway.”

Without any job requirements, companies can now apply for tax exemptions for most any large-scale investment in Louisiana. Landry's order does specify that maintenance expenses, environmental compliance upgrades and replacement parts that are not part of an extensive restoration do not qualify for ITEP awards.

The order goes into effect for all ITEP applications moving forward, effective Feb. 21, but does not apply retroactively to applications or exemptions.

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Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com. Follow Louisiana Illuminator on Facebook and Twitter.

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Criminal justice reform advocates ask court to force Legislature to hear from public

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lailluminator.com – Piper Hutchinson – 2024-02-21 16:51:56

Criminal justice reform advocates ask court to force Legislature to hear from public

by Piper Hutchinson, Louisiana Illuminator
February 21, 2024

Three Louisiana criminal justice reform advocates have asked a state court to prevent the Legislature from discussing several proposals until more public testimony is heard on the bills. 

Their petition was filed Wednesday in 19th Judicial District Court in Baton Rouge by Norris Henderson, executive director of Voice of the Experienced, Ronald Marshall, chief policy analyst with Voice of the Experienced, and Erica Navalance, a staff attorney with the Promise of Justice Initiative. Read the full petition below. 

They contend House Administration of Criminal Justice Chair Rep. Debbie Villio, R-Kenner, has irregularly limited public input over two days of hearings during a special session on crime policy. The agenda for the session features a string of bills, with Gov. Jeff Landry's support, that call for harsher consequences for criminals.   

The committee enacted a rule to limit each public commenter to three minutes and cut off public debate after proponents and opponents of a bill each testified for one hour. The three-minute rule is a common practice at the Capitol, but overall time limits are seldom used. 

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Committee members said they supported these rules to get through testimony more quickly. On Tuesday and Wednesday, the committee had a full schedule of bills that attracted a large number of public comments. The special session doesn't have to end until March 5, but leaders have suspended the rules several times in order to expedite hearings on bills rather than letting them lay over for a day between hearings. 

House Democratic Caucus Chair Rep. Matthew Willard of New Orleans and other Democrats have criticized Republicans for fast-tracking legislation that would almost totally reshape Louisiana's criminal justice system, giving the public limited opportunity for input. 

The court petition seeks to prevent the full House of Representatives from discussing the bill until the House Criminal Justice Committee holds another hearing to allow more public comment. The complainants say they traveled to Baton Rouge to testify, but the committee's time limits prevented them from speaking. 

House Speaker Phillip Devillier, R-Eunice, defended the committee, arguing two hours of discussion per bill is reasonable, and that the Legislature is allowed to suspend the rules to advance bills. 

The complainants want to pause debate on four bills: 

House Bill 4, by Rep. Julie Emerson, R-Carenco, which limits post-conviction relief opportunities. House Bill 6, by Rep. Nicholas Muscarello, R-Hammond, which expands the methods by which Louisiana executes people and shields records related to executions from public viewHouse Bill 9, by Villio, which eliminates parole in almost all circumstances House Bill 10, by Villio, which limits good time credits and credit for time served

 

Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com. Follow Louisiana Illuminator on Facebook and Twitter.

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Biden unveils latest round of student loan cancellation to aid 153,000 borrowers

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lailluminator.com – Jennifer Shutt – 2024-02-21 16:26:30

Biden unveils latest round of student loan cancellation to aid 153,000 borrowers

by Jennifer Shutt, Louisiana Illuminator
February 21, 2024

President Joe Biden expanded his push to eliminate student loan debt Wednesday, saying during a speech the initiative is part of a campaign promise to address the “broken” system.

“While a college degree is still a ticket to a better life, that ticket is too expensive,” Biden said. “And too many Americans are still saddled with unsustainable debt in exchange for a college degree.”

Biden, who made his remarks while on a trip to California that also included fundraising for his 2024 campaign, argued that canceling student loan debt not only helps those who receive the benefit directly, but those in their communities.

“When people's student debt is relieved, they buy homes, they start businesses, they contribute, they engage in the community in ways they weren't able to before and it actually grows the economy,” Biden said.

The latest round of student debt forgiveness includes nearly 153,000 borrowers and a total of $1.2 billion in debt, according to a fact sheet from the White House.

Those receiving loan forgiveness are enrolled in the Saving on a Valuable Education or SAVE repayment plan, have been paying back their loans for at least 10 years and originally took out less than $12,000 in loans.

This week's actions bring total student loan cancellation by the Biden administration to $138 billion for nearly 3.9 million people, according to the fact sheet.

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Repayments tied to income, family size

The so-called SAVE Plan allows borrowers to set their student loan repayments based on their income and family size, not the amount of student loan debt they hold.

“The SAVE plan ensures that if borrowers are making their monthly payments, their balances cannot grow because of unpaid interest,” according to the White House's fact sheet. “And, starting in July, undergraduate loan payments will be cut in half, capping a borrower's loan payment at 5% of their discretionary income.”

Education Secretary Miguel Cardona said on a call with reporters Tuesday there are about 7.5 million people enrolled in the SAVE Plan and that 4.3 million don't have a monthly payment.

“Many SAVE forgiveness recipients come from lower- and middle-income backgrounds,” Cardona said. “Many took out loans to attend community colleges. Some were at high risk for delinquency and default. That's why the actions we're announcing today do matter.”

Cardona said those eligible for this round of student debt cancellation would receive an email from Biden telling them about the move.

New FAFSA rollout criticized

Louisiana Republican Sen. Bill Cassidy said in a written statement the latest round of student loan forgiveness is misguided.

“The Biden Department of Education has been unable to fulfill their basic responsibilities mandated by Congress and essential to families, like implementing FAFSA,” Cassidy said, referring to the application college students fill out to access student aid, including grants, scholarships and loans.

The Biden administration's efforts to revamp the form have been marred by delays and errors. 

“Instead, they have spent a considerable amount of time prioritizing their student loan schemes to shift someone else's debt onto taxpayers that chose not to go to college or already paid off their loans,” Cassidy added. “This is unfair, manipulative and a cynical attempt to buy votes.”

Cassidy is the ranking member on the U.S. Senate's Health Education Labor and Pensions Committee, often referred to as the HELP Committee.

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Supreme Court decision

Biden, speaking at the Julian Dixon Library in Culver City, California, criticized the U.S. Supreme Court for blocking his original student loan forgiveness plan. 

“Early in my term, I announced a major plan to provide millions of working families with debt relief for their college student debt,” Biden said. “But my MAGA Republican friends in the Congress, elected officials and special interests stepped in and sued us. And the Supreme Court blocked it. But that didn't stop me.”

Biden said the justices' opinion in that case led him to “pursue alternative paths” for student debt relief, which includes the announcement he made Wednesday.

Canceling some student loan debt, Biden said, is about giving people a chance.

“That's all we're doing … giving people a chance, a fighting chance to make it, because no one who is willing to work hard in America should be denied the opportunity to have that chance.”

Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com. Follow Louisiana Illuminator on Facebook and Twitter.

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