01/13/2025

News

Opinion: Is California anti-family?

These changes will define, and perhaps undermine, our economy by creating a dearth of new workers. Between 2013 and 2025, the number of high school graduates in our state is expected to drop by 5 percent, compared to a 19 percent increase in Texas, 10 percent growth in Florida and a 9 percent rise in North Carolina. Some, of course, may hail these trends. Environmental activists and their allies in the density lobby generally prefer a childless population, both to cut greenhouse gas emissions and to expand their influence. Some tech-oriented futurists may even suggest that robots will replace all but the most skilled of workers, making additional children more a burden than a blessing. Yet, for California employers — at least until the technological nirvana — a labor shortage, particularly in skilled trades, could prove troubling in the near-term, and even medium-term, future. Historically, California could count on migration from both the rest of the nation and abroad. But this seems to have changed dramatically. The state has lost more domestic migrants than it has gained since at least 2000. Net immigration, the other lodestone of our labor force growth, has also slowed.

Read More

U.S. Employers Added 222,000 Jobs in June

U.S. employers picked up their pace of hiring in June. Nonfarm payrolls rose by a seasonally adjusted 222,000 from the prior month, the Labor Department said. The unemployment rate ticked up to 4.4% from 4.3% the prior month as more people joined the workforce. Average hourly earnings for private-sector workers rose 2.5% in June, little changed from prior months. In one positive sign, the average workweek rose by 0.1 hour to 34.5 hours.

Read More

UC Davis admits 60 percent of international students but 36 percent of in-state applicants

Among the nine University of California campuses that enrolls undergraduates, UC Davis admitted the highest number of international students for the upcoming school year, according to admissions data released Thursday. Out of nearly 14,000 international applicants, UC Davis accepted 8,415 students, an admit rate of 60.4 percent. By comparison, 18,480 California residents were accepted from the 51,425 who applied – a success rate of 35.9 percent. The number of residents admitted was slightly down compared to 2016, in line with the overall trend at other campuses.

Slow website
Read More

Upscale jeans maker True Religion files for bankruptcy protection

Upscale jeans maker True Religion Apparel Inc. said Wednesday that it filed for bankruptcy reorganization, making it the latest Southern California apparel firm to falter as people embrace online shopping. But True Religion said that in tandem with filing under Chapter 11 of the bankruptcy laws, its owner, TowerBrook Capital Partners, a private equity firm, reached a proposed deal with lenders to slash True Religion’s debt by about three-quarters as it continues operating.

Read More

Steven Greenhut: Legislature’s scary precedent: Giving unions private workers’ cell numbers, home addresses

Legislators are about to require that private-sector workers in the home-care industry provide a wide range of personal information – home address, email contact, cell-phone number – to any labor organization that wants it. Those unions would then be free, at their discretion, to pester these workers into joining the union. The bill only affects one industry, but the precedent is clear

Read More

Bay Area wages soar far above national average

Wages across much of the Bay Area have rocketed far above the national average, a federal Bureau of Labor Statistics report reveals. Santa Clara County’s wages are 59 percent above the national average, while the San Francisco-San Mateo metro area is 53 percent higher, and East Bay workers command wages that are 26 percent over the U.S. average, the report shows. The wage gap compared with the country as a whole reflects the Bay Area’s concentration of so many highly skilled workers in one region.

Read More

Trump Administration Saves The Sharing Economy

State and local regulatory battles continue to plague sharing economy companies like Uber and Airbnb. However, their business models faced an existential—though underappreciated—threat from President Obama’s Department of Labor. In a positive step for independent workers and the consumers that they serve, U.S. Secretary of Labor Alexander Acosta rescinded the problematic Obama-era regulatory guidance on independent contractor status this month . Sharing-economy users and workers should celebrate this long-overdue change. The problems started in summer 2015 when the then Labor Department’s Wage and Hour Commissioner David Weil issued an administrator’s interpretation that, if taken seriously by courts, would have made it more difficult for workers to be independent contractors. This so-called “guidance” could be more accurately deemed “lawmaking through blog post” because did not have to go before the public for comment and it was never voted on by Congress—even though it could have destroyed the work arrangements that have driven the sharing economy’s growth. The interpretation threatened to turn people who partner with online platforms from independent contractors to employees, resulting in restricted flexibility and opportunity. Based on her public remarks on the sharing economy, Hillary Clinton would have likely embraced this regulatory change if she would have won the election. (For more information on this administrator’s interpretation, see my House Education and the Workforce Committee testimony.)

Read More

Does the U.S. Have a Labor Shortage? Maybe

For months, I’ve planned to write a column on the future of the U.S. labor market. Stacked on my desk are reports on “the gig economy,” “independent workers,” “contingent workers,” “freelancers” and the like. All signify a new, less secure labor market. Workers won’t have long-lasting career jobs, as the old post-World War II employment model promised. Now it’s survival of the fittest. Workers who can adapt to constant change will thrive. As for everyone else, tough luck. I never wrote that column. The main reason is that I never felt certain that this widely prophesied labor market would prevail. Indeed, the postwar employment model might make a comeback. Demographics — the ongoing retirement of the massive baby-boom generation — would make experienced and competent workers prized resources. Because the labor force would be growing only slowly, many companies would try to stabilize their employment by offering career jobs with better wages and benefits. I still don’t know which of these models will triumph: the first reflecting a management belief that workers must be hired and fired as business conditions dictate; the second based on the notion that good workers will be scarce for the foreseeable future and smart companies will do their best to train and retain them.

Read More

Is California’s Weak Q1 a Sign of Residential Solar’s Future?

Residential solar has seen brighter days.

As detailed in the most recent U.S. Solar Market Insight report, national residential PV installations fell both year-over-year (17 percent) and quarter-over-quarter (11 percent) for the first time since GTM Research began tracking the market on a quarterly basis in 2010. That’s a big deal.

When one takes a closer look at the data, it’s clear that much of this downturn can be pegged to the fortunes of California, which is still the largest state market for residential PV. But the state’s standing is diminishing.

In Q1, California accounted for its smallest share of the national market at 35 percent — down from 42 percent in Q1 2016 — while falling over 30 percent year-over-year.

Read More

In this part of the Midwest, the problem isn’t China. It’s too many jobs.

But the shortage is particularly problematic in places such as Kosciusko County, where the unemployment rate rests at 2 percent. Of the county’s 41,136 adults who can work, 40,311 are employed, according to government statistics. This region — a land of clear lakes, duck farms and medical device makers — escaped the industrial decline that rocked other communities throughout the Rust Belt. It prospered, thanks to a local industry that proved largely immune to competition from China and Mexico. But without more people to grow Warsaw’s business, the chances of companies relocating is “extraordinarily high,” said Michael Hicks, a labor economist at Indiana’s Ball State University

Read More

Goods on the Move: Trade and Logistics in Southern California

LAEDC’s Institute for Applied Economics has released the report, Goods on the Move: Trade and Logistics in Southern California.  The report looks at jobs, wages, economic impact, trends, and factors affecting the future of this major regional industry cluster, which directly employs over half a million people in Southern California. The industry continues to grow, with more jobs being added. While average wages for the industry as a whole are above the LA County average, the individual occupations span a wide range of salaries.  Warehousing experienced a 55% increase in employment during the past ten years, but salaries in that sector have been trending down, and increasing automation is a factor to watch.

Research & Studies
Read More

California unemployment rate sinks to 4.7% in May; Hollywood shows signs of life

The report follows a disappointing April, when the state lost jobs for the first time in several months. The May unemployment rate dropped from 4.8% in April, but it still hovers above the national rate of 4.3%. For the second month in a row, the state economy’s year-over-year growth was slower in May than the overall U.S. economy.

Read More

Wisconsin’s remarkable job growth should be celebrated

Overzealous political promises notwithstanding, Wisconsin’s job growth over the past six years has been extraordinarily strong. In fact, job growth has slowed recently only because Wisconsin essentially has run out people who are unemployed due to broad economic factors. In other words, one cannot reduce a jobs deficit that no longer exists.

Read More

L.A. and Long Beach port truck drivers and warehouse workers plan to strike Monday

Around 100 truck drivers and warehouse workers serving the Los Angeles and Long Beach ports plan to launch a strike starting Monday — their 15th strike in the last four years.

The workers and Teamsters union Local 848 announced the labor action Thursday. The truck drivers have been pushing for years to become employees rather than independent contractors to improve pay and workplace protections.

Read More

How Trump Can Make Apprenticeships a Hit

YouthForce NOLA, a partnership of political, business and education leaders in New Orleans, places 1,200 high-school seniors from local public high schools in paid internships in fields such as software development and advanced manufacturing. Businesses work with school administrators to ensure students receive practical, skills-based classroom instruction. The goal is to help students obtain professional credentials for high-wage jobs that don’t require bachelor’s degrees. (YouthForce NOLA was the recipient of $5 million in grants from Bloomberg Philanthropies.)

Another successful model is the state-run Apprenticeship Carolina program in South Carolina, which serves as an intermediary between businesses, workers and educational institutions. It matches employers with the state’s technical colleges, who tailor classes to meet the companies’ needs, and handles most of the paperwork (companies have to register their apprenticeship programs with the federal and state governments). Employers are responsible for paying apprentices’ wages and mentoring them on the job. Since 2007, more than 25,000 South Carolina workers have completed apprenticeships; the number of companies participating in the program has increased from 90 to 880.

Read More