Today’s News & Commentary — May 23, 2017
Companies in Utah are struggling to find workers to fill job openings thereby slowing economic growth. While companies are eager to hire more workers to meet increased demand, Utah’s unemployment rate of 3.1% means there are relatively few workers looking for jobs. Companies have begun raising wages to attract more workers; however, automation may also increase as a means to substitute for labor.
Connecticut Governor Daniel Malloy is trying to balance the budget with budget cuts and public-sector layoffs; however, the Service Employees International Union Local 1199 is airing an ad opposing this. The Union’s ad argues that rather than cutting services to the disabled or laying-off middle class workers, the Governor should consider higher taxes on the wealthy.
The Economic Policy Institute released a report finding that annually 2.4 million U.S. workers lose $8 billion because of minimum wage violations. Women, people of color, and youth are the most likely to report being paid less than the minimum wage. Although the U.S. Department of Labor’s Wage and Hour Division investigates such violations, the report’s authors note that it has limited staff and is thus unable to fully examine all minimum wage violations.
Michelle Russell with BCG and Lori Lepler with BRANDspeak have a piece in the Harvard Business Review explaining the importance of high-quality apprenticeship programs. They find that such programs led to a 22-percentage-point rise in promotions of female workers, a 5-percentage-point decline in attrition of female workers, and a 20-percentage point-rise in job satisfaction for female employees.