Monthly Archives: November 2011
The National Labor Relations Board held it’s scheduled vote on whether to adopt a small number of the amendments to its election procedures that the Board proposed earlier this year. View the resolution here. An explanation of the resolution is available here. Chairman Pearce released a statement on the resolution, which is available here.
The meeting of the Board’s three members, was held at NLRB headquarters in Washington at 2:30pm EST, and was open to the public, although the public could not participate. Members discussed and voted on a resolution to accept the Chairman’s proposals, proceed to draft a final rule limited to those proposals, and defer the remainder of the proposed rule for further consideration.
Boeing Co. has signed a four-year labor contract with its machinists union that may secure a second 787 assembly line in South Carolina, The Seattle Times reported Wednesday, citing anonymous sources. Chicago-based Boeing is in court defending the new plant from accusations by the National Labor Relations Board that it was built illegally to punish the union for a 2008 strike. A final decision on whether the NLRB will cease its lawsuit will be up to the agency. The new labor deal, forged secretly and 10 months before the current contract expires, ensures the next-generation 737 will be built in Washington state, and includes a signing bonus and annual wage increases of about 2%, The Seattle Times said. Ratification is planned for later this week. Source: MarketWatch.com.
America’s unemployment rate is still stuck at 9 percent and nearly 14 million people are out of work, yet since the recession ended, job losses have fallen well below their pre-recession rates. So why are so many still out of work? Record-low job creation is the problem.
In a new paper, Heritage’s James Sherk explains that unemployment remains high because job creation has fallen. In the following chart, you can see how private-sector employment would have changed if job creation returned to pre-recession levels in June 2009. (Article continued below infographic.)
Unfortunately, the economic picture today isn’t as bright as it is in the above alternate reality. Sherk lays out the numbers behind the poor job growth.
From the recession’s onset to the first quarter of 2009, private job creation fell by 24 percent to 5.8 million jobs. That was the lowest quarterly job creation on record. Since then, job creation has only slightly recovered. In the first quarter of 2011, employers created just 6.3 million new jobs—1.3 million fewer jobs than in the quarters before the recession began.
Fewer existing businesses are expanding, while fewer entrepreneurs are starting new businesses. In the first quarter of 2011, the number of workers hired in new business establishments fell to just 660,000, 27 percent fewer than when the recession began. This is the lowest number of workers hired at new businesses that the Bureau of Labor statistics has ever recorded—lower even than the worst points of the recession.
The drop in hiring at new businesses has occurred because entrepreneurs are starting fewer enterprises and because they are hiring fewer workers per new enterprise. The average number of workers hired at new establishments fell to 3.6 per business in Q1 2011, also the lowest on record.