October 2, 2024

Biden’s Infrastructure Plan: Scarcity of Skilled Workers Poses Challenge

He wants to hire more skilled masons to finish the projects sooner, but he can’t find enough people to fill the dozen positions he has open, even though he is willing to pay up to $50 an hour — twice what he offered before the pandemic. He checks his email daily, waiting for more applications to come in.

“My biggest struggle is finding guys that want to work,” Mr. Kadavy said.

Even when he does hear from applicants, Mr. Kadavy said, he is unable to hire many of them because they are not qualified enough. He was already seeing a shortage of skilled masons before the pandemic, he said, and he worries that the craft is “dying” because newer generations are not pursuing the field.

The nation’s public transit systems would receive $39 billion under the infrastructure bill, allowing agencies to expand service and upgrade decades-old infrastructure. But transit agencies are dealing with worker shortages of their own, facing a dearth of bus drivers, subway operators and maintenance technicians.

Metro Transit in Minneapolis is trying to hire about 100 bus drivers by the end of the year, said Brian Funk, the agency’s acting chief operating officer. The agency had originally aimed to hire 70 workers by the end of June, but it met only about half of that goal.

Although he is optimistic that the agency will be able to fill those remaining positions after ramping up efforts to promote the openings, he said he was still wary about some workers choosing to leave.

“We know that every day that goes by, there’s the potential that somebody else is looking at either retirement or another job,” Mr. Funk said.

Some are optimistic that policymakers will be able to scale up work force development programs to keep up with the demand the infrastructure bill would create. Projects could take several months to get started, economists said, giving the country time to train workers who are not yet qualified.

Article source: https://www.nytimes.com/2021/09/09/us/politics/biden-infrastructure-plan.html

High Natural Gas Prices Strain Europeans, Weighing on Recovery

Adding to the tight situation in Europe, Groningen, the giant gas field in the Netherlands that long served as a safety valve for both its home country and western Germany, is being gradually shut down because of earthquakes. Over the last year European gas prices have risen from around $4 per million British thermal units to about $18.

Russia, the largest gas supplier to Europe, and Algeria have substantially increased their exports but not enough to ease market concerns. Some analysts question whether Gazprom, Russia’s gas company, is pursuing a high-price strategy or trying to persuade the West to allow the completion of its Nord Stream 2 pipeline project, which will deliver gas from Russia to Germany.

“On the face of it, it looks as though some sort of game is being played here,” said Graham Freedman, an analyst at Wood Mackenzie. On the other hand, Mr. Freedman said, it could be that Gazprom doesn’t have any more gas to export.

A spokeswoman for Gazprom said: “Our mission is to fulfill contractual obligations to our clients, not to ‘reduce the concerns’ of an abstract market.” She added that Gazprom had increased supplies to near-record levels this year.

Construction of the 746-mile pipeline, which runs under the Baltic Sea, was halted last year just short of completion off Germany’s shores by the threat of sanctions from the United States. But in a deal with Germany in July, the Biden administration agreed to drop its threat to stop the pipeline. On Monday, the management company for the project said it aimed to have the pipeline operating this year.

Stanley Reed reported from London, and Raphael Minder from Madrid.

Article source: https://www.nytimes.com/2021/09/08/business/europe-natural-gas-prices.html

Vast Expansion in Aid Kept Food Insecurity From Growing Last Year

While food insecurity fell overall, it rose among households with children — to 7.6 percent last year, from 6.5 percent in 2019. One likely explanation is the widespread closure of schools, a reminder that they play a large, if often overlooked, role in delivering food aid.

Before the pandemic, Judith Bartfeld, a researcher at the University of Wisconsin, found that school meals account for as much as 7 percent of economic resources among low-income households. That financial contribution approached the impact of the Supplemental Nutrition Assistance Program, or SNAP, the main federal antihunger program, which provided more than 10 percent of household resources but is larger and more visible.

“One of the big lessons from the pandemic is the critical role that school meals play as part of the nutrition safety net,” Ms. Bartfeld said. “The value of school meals became transparent when the meals disappeared.”

School closures may have also increased food hardship indirectly, by making it hard for parents to return to work.

Among the pandemic-era programs is one that replaced the value of lost school meals with electronic benefit cards. Research found it reduced food hardship, though many states issued the aid after significant delays. Congress extended the program during the summers of 2020 and 2021, and the Biden administration wants to make the summer electronic benefit program permanent, to combat the rise in hunger that typically comes with the closure of schools.

Most states participated in the summer program this year with the significant exception of Florida, where Gov. Ron DeSantis, a Republican, has declined to seek the $820 million the state could receive in federal aid.

The longstanding disparities in food insecurity between Black and white households had been narrowing in recent years. But last year, they widened again. Though the share of white households suffering food insecurity fell by 0.8 percentage points, it rose by 1.6 points in Hispanic households and by 2.6 points in Black households.

Article source: https://www.nytimes.com/2021/09/08/us/politics/vast-expansion-aid-food-insecurity.html

California Senate Passes Bill Reining In Amazon Labor Model

Amazon has not commented on the bill but has said that it tailors performance targets to individual employees over time based on their experience level and that the targets take into account employee health and safety. The company has emphasized that fewer than 1 percent of terminations are related to underperformance.

The bill would require Amazon and other warehouse employers to disclose productivity quotas to workers and regulators, and would allow workers to sue to eliminate quotas that prevent from taking breaks and following safety protocols.

While it is unclear how big an impact the bill would have on Amazon’s operations, limiting the company’s hourly productivity quotas would probably affect its costs more than its ability to continue next-day and same-day delivery.

“I think it’s all about money, not about what the system is set up to handle,” said Marc Wulfraat, president of the supply-chain and logistics consulting firm MWPVL International. “If you said to me, ‘Bring the rate down from 350 to 300 per hour,’ I’d say, ‘OK, we need to add more people to the operation — maybe we need 120 people instead of 100.’”

A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was nearly double that of the rest of the warehousing industry last year.

“They would say, ‘Always pivot, never twist,’ all this stuff you’re supposed to do,” said Nathan Morin, who worked in an Amazon warehouse in California for more than three years packing and picking items before leaving in December. “But it’s oftentimes impossible to follow the proper body movements while also making rate.”

The company has vowed to improve worker safety and said it had spent more than $300 million this year on new safety measures.

Article source: https://www.nytimes.com/2021/09/08/business/economy/amazon-labor-california-senate.html

If You Never Met Your Co-Workers in Person, Did You Even Work There?

Martin Anquetil, 22, who started working at Google in August last year, also never met his colleagues face to face. Google did not put much effort into making him feel connected socially, he said, and there was no swag or other office perks — like free food — that the internet company is famous for.

Mr. Anquetil said his attention had begun to wander. His lunchtime video game sessions seeped into work time, and he started buying basketball highlights on N.B.A. Top Shot, a cryptocurrency marketplace, while on the clock. In March, he quit Google to work at Dapper Labs, the start-up that teamed up with the National Basketball Association to create Top Shot.

If one wants to work at Google and “put in 20 hours a week and pretend you’re putting in 40 while doing other stuff, that’s fine, but I wanted more connection,” he said.

Google declined to comment.

To help prevent more people from leaving their jobs because they have not formed in-person bonds, some employers are reconfiguring their corporate cultures and spinning up new positions like “head of remote” to keep employees working well together and feeling motivated. In November, Facebook hired a director of remote work, who is responsible for helping the company adjust to a mostly remote work force.

Other companies that quickly shifted to remote work have not been adept at fostering community over video calls, said Jen Rhymer, a postdoctoral scholar at Stanford who studies workplaces.

“They can’t just say, ‘Oh, be social, go to virtual happy hours,’” Dr. Rhymer said. “That by itself is not going to create a culture of building friendships.”

Article source: https://www.nytimes.com/2021/09/08/business/never-met-co-workers.html

Democrats and Lobbyists to Battle Over Tax Increases for Biden’s Social Policy Bill

Many Democrats are determined to tax the wealth of America’s fabulously rich, much of which goes untaxed for decades before being passed along to heirs. Currently, for instance, when large estates are passed on at death, heirs are allowed to value the stocks, real estate and other assets at the price they would fetch at the time of the original owner’s death. They pay taxes only on the gain in value from that point once the assets are sold. If the assets are not sold, they are not taxed at all.

Mr. Biden wants to have heirs to large fortunes pay taxes when the original owner dies. Those taxes would be levied on inherited assets based on the gain in value from when those assets were initially purchased.

Ms. Heitkamp, who said she was recruited to the opposition campaign by the Democratic former senator-turned-superlobbyist John Breaux, is adamant that taxation upon death, regardless of wealth, is deadly politics. Ms. Heitkamp said she was finding a receptive audience among potential swing voters in rural areas, especially owners of family farms, even though Democrats say such voters would never be affected by the changes under consideration. Lobbyists already expect this piece of the estate tax changes to wash out in the lobbying deluge.

“This is very consistent with my concern about revitalizing the Democratic Party in rural America,” Ms. Heitkamp said. “You may want to do this,” she said she had counseled her former colleagues, “but understand there will be risk, and risk is the entire agenda.”

Even more significantly, the Finance Committee is looking at taxing the accumulated wealth of billionaires, regardless of whether it is sold. Extremely wealthy Americans like the Amazon founder Jeff Bezos would have a decade to pay a one-time tax on the value of assets like stocks that have been accruing value for years. They would then pay taxes each year on the annual gain in value of their stocks, bonds and other assets, much like many Americans pay property taxes on the annually assessed value of their homes.

Another key component is the international tax code. The Biden administration has called for doubling the tax that companies pay on foreign earnings to 21 percent, so the United States complies with an international tax deal that the administration is brokering, which would usher in a global corporate minimum tax of at least 15 percent.

Article source: https://www.nytimes.com/2021/09/07/us/politics/biden-tax-increases.html

Unemployment Benefits Expire for Millions Without Pushback From Biden

On Sunday, Mr. Biden’s chief of staff, Ron Klain, told CNN’s “State of the Union” that the March law was also allowing states to help those out of work by offering employment bonuses and job training and counseling.

“We think the jobs are there,” Mr. Klain said, “and we think the states have the resources they need to move people from unemployment to employment.”

Mr. Biden has faced criticism from the left and the right on the issue, and he has responded with a balancing act, supporting the benefits as approved by Congress but declining to push to extend them — or to defend them against attacks by leaders in some states.

Throughout the summer, business lobbyists and Republican lawmakers called on the president to cut off the benefits early, blaming them for the difficulties some businesses were facing in hiring workers, particularly in lower-paying industries like hospitality. Soon after the backlash began, Mr. Biden defended the benefits but called on the Labor Department to ensure that unemployed workers who declined job offers would lose their aid.

But roughly half of the states, nearly all of them led by Republican governors, moved to cut off benefits early on their own. Mr. Biden and his administration did not fight them, angering progressives. The administration is essentially extending that policy into the fall, by calling on only willing states to fill in for expired assistance.

“I don’t think we necessarily need a blanket policy for unemployment benefits at this point around the country,” Labor Secretary Martin J. Walsh said in an interview on Friday, “because states are in different places.”

Privately, some administration officials have expressed openness to the idea that economic research will eventually show that the benefits had some sort of chilling effect on workers’ decision to take jobs. Critics of the extra unemployment benefits have argued that they are discouraging people from returning to work at a time when there are a record number of job openings and many businesses are struggling to hire.

Article source: https://www.nytimes.com/2021/09/06/business/economy/unemployment-benefits.html

California Bill Could Alter Amazon Labor Practices

“Terminations for performance issues are rare — less than 1 percent,” Ms. Nantel added.

The company faces growing scrutiny of its treatment of workers, including an expected ruling from a regional director of the National Labor Relations Board that it unlawfully interfered in a union vote at an Alabama warehouse. The finding could prompt a new election there, though Amazon has said it would appeal to preserve the original vote, in which it prevailed.

In June, the International Brotherhood of Teamsters passed a resolution committing the union to provide “all resources necessary” to organize Amazon workers, partly by pressuring the company through political channels. Teamsters officials have taken part in successful efforts to deny Amazon a tax abatement in Indiana and approval for a facility in Colorado and are backers of the California legislation.

Both sides appear to regard the fight over Amazon’s quotas as having high stakes. “We know that the future of work is falling into this algorithm, A.I. kind of aspect,” said Ms. Gonzalez, the bill’s author. “If we don’t intervene now, other companies will be the next stage.”

Ms. Michelin, the retail association president, emphasized that the data was “proprietary information” and said the bill’s proponents “want that data because it helps unionize distribution centers.”

A report by the Strategic Organizing Center, a group backed by four labor unions, shows that Amazon’s serious-injury rate nationally was almost double that of the rest of the warehousing industry in 2020 and more than twice that of warehouses at Walmart, a top competitor.

Asked about the findings, Ms. Nantel, the Amazon spokeswoman, did not directly address them but said that the company recently entered into a partnership with a nonprofit safety advocacy group to develop ways of preventing musculoskeletal injuries. She also said that Amazon had invested over $300 million this year in safety measures, like redesigning workstations.

Amazon employees have frequently complained that supervisors push them to work at speeds that wear them down physically.

Article source: https://www.nytimes.com/2021/09/06/business/economy/amazon-california-warehouse-labor.html

From Cradle to Grave, Democrats Move to Expand Social Safety Net

In contrast, the new legislation would largely augment existing programs. Childcare support would come through the Community Development Block Grant to states, cities and counties. Universal pre-K would be secured through block grants and expanded funding to Head Start. Two years of higher education are supposed to become accessible through more generous Pell grants and other existing financial aid programs

But if it passes, Mr. Strain said the legislation could fundamentally change the relationship between the state and its citizens: “Its ambition is in its size.”

Most Americans traditionally have seen the federal government’s involvement in their finances once a year, at tax time, when they claim a child credit, get a write-off for the truck they may have bought for their business, or receive a check for an earned income credit, to name a few.

That would change profoundly if the social policy bill were enacted. The expanded child tax credit has begun to provide monthly checks of up to $300 per child to millions of families, but is slated to expire in 2022. Its extension for as long as a decade could make it a fixture of life that would be very difficult for future Congresses to take away. The same goes for the Child and Dependent Care Credit, which now offers up to $8,000 in child care expenses but also expires in a year.

And the federal government, not private employers, would pay most of the salaries of people qualifying for family and medical leave.

“If we get this passed, a decade from now, people are going to see many more touch points of government supporting them and their families,” Ms. Boushey said.

One major difference between the social economy that Mr. Biden and congressional Democrats hope to create and the welfare state in Europe is how it would be paid for. Most European countries ask their citizens broadly to fund their social welfare programs, largely through a value added tax, a sales tax levied at each stage of a consumer good’s production.

Article source: https://www.nytimes.com/2021/09/06/us/politics/democrats-biden-social-safety-net.html

Wage gains remained strong in August as hiring slowed.

Wage gains have been hard to read during the pandemic because they have been affected by what economists call “composition effects”: Virus layoffs and unusual rehiring patterns have shaken up who is working, and when higher-paid workers make up a bigger share of the pool, it can deceptively look as if average pay rates are climbing. Such quirks have been less pronounced in recent months, but changes in the labor force as the virus surged in August probably drove some of the apparent disconnect between compensation and hiring.

“A month with no net job gains in the low-paid leisure and hospitality sector will see a bigger increase in average hourly earnings than a month with more even payroll growth,” Ian Shepherdson, the chief economist at Pantheon Macroeconomics, wrote in an research note after the release.

Pay has been climbing strongly in recent months as job openings have exceeded the number of people actively looking for work. Michael Feroli, the chief U.S. economist at J.P. Morgan, suggested that strong unmet demand for workers may have contributed to especially strong wage gains at restaurants and hotels last month — but that it wasn’t a simple story.

“It is possible that firms are having a hard time finding workers in this low-wage sector,” Mr. Feroli wrote, noting that the 1.3 percent average hourly earnings increase for leisure and hospitality employees over the past month was rapid compared to that seen in other sectors. At the same time, “aggregate hours in the sector declined for the first time this year in August, suggesting that the spread of the Delta variant may be limiting demand for labor.”

It is unclear whether the wage pressures will last as workers return to the labor market. While it is hard to gauge how much enhanced unemployment benefits discouraged workers from taking jobs, and early evidence suggests that the effect was limited, a few companies have signaled that labor supply has been improving somewhat as benefits were cut off early in some states. Plus, other trends — the end of summer and the resumption of in-person school and day care — may allow parents and other would-be workers who have been on the sidelines to return to the jobs search.

Article source: https://www.nytimes.com/2021/09/03/business/economy/wages-august-2021.html