Biden Regulator Passes Rule with Massive Implications for Millions of Workers

FTC Chair Lina Khan

The Federal Trade Commission (FTC) issued a final rule Tuesday banning noncompete agreements nationwide, affecting millions of Americans.

Regulators argue that banning noncompetes will promote competition by giving workers greater ability to switch jobs, increasing innovation and leading to more businesses being created, according to an announcement from the FTC. The FTC estimates that around 18 percent of U.S. workers, or 30 million people, are covered under a noncompete, with the new rule applying to anyone not in a senior executive role, which is defined as someone who is making more than $151,164 and in a policy-making position.

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Big Corporations Try to Clean Up Their Act After Reports of Rampant Child Migrant Labor

Farm Workers

U.S. companies are conducting full-scale audits and shifting “focus” after multiple reports revealed child immigrants were working in increasingly dangerous conditions, according to The New York Times.

In 2023, the Department of Labor opened an investigation into companies like Lucky Charms and Cheetos after reports of immigrant children working in dangerous conditions while thousands of children have crossed over into the U.S. in the last several years. Many other companies, including McDonald’s, Whole Foods, Costco and more, have announced that they are conducting full audits to prevent migrant children from working in dangerous conditions, according to the NYT.

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Biden Admin Releases New Labor Rule Cracking Down on Independent Contractors

Remote Worker

The Department of Labor announced Tuesday the final version of a rule that will force companies to recognize some workers as employees instead of independent contractors.

The new rule goes into effect on March 11 and rescinds a previous rule establishing independent contractors as a separate class of workers under the Fair Labor Standards Act that was put in place in January 2021 under the Trump administration, according to the DOL release. The rule could raise labor costs by up to 30% for employers who utilize independent contractors, such as app-based services like Uber or Lyft, which offer a freelancing model, as employers would have to adhere to minimum wage and overtime laws, according to Reuters.

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Critics: Proposal Would Harm Small Farms, Drive Up Consumer Prices

North Carolina’s small farmers will be challenged, and may need to sell their land to larger corporations, congressmen say.

Attorneys general, nearly two dozen of them, also are against a proposed Department of Labor rule for farm workers in the H-2A program they say gives “unionization protections” and places “the interests of foreign nationals over the interests of United States citizens.” Julie Su, the interim secretary of the department, says empowering the workers and ensuring fair treatment are the goals of the initiative, the third in less than a year.

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Biden Official Bankrolls Group Claiming Charter Schools Teaching ‘Classics’ Are ‘Far-Right’ Ideologues

A Biden administration official is a major donor to an organization that characterized Christian charter schools teaching a classical education as “far-right” ideologues attempting to advance “Christian nationalism.”

The Department of Labor’s Deputy Undersecretary for International Affairs Thea Lee and her partner Mark Simon gave at least $5,000 in 2022, the highest level of sponsorship, to the Network for Public Education, a left-wing activist group focused on promoting public schools, according to the organization’s sponsors page. The Network for Public Education released a June 2023 report which notes that “right-wing ideology” is growing in charter schools that teach a “classical” or “traditional” education.

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Jobless Claims Soar to Highest Levels Since 2021

The number of Americans who filed new unemployment claims increased more than expected to 261,000 in the week ending June 3, the Department of Labor (DOL) reported Thursday.

Claims rose 28,000 compared to the previous week’s revised level, the highest number since October 2021, when it was 264,000, according to the DOL. This substantially exceeded the median forecast, which was 236,000, according to MarketWatch.

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Top Biden Nominee Ordered Staff Not to Cooperate with ICE, Memo Shows

President Joe Biden’s nominee to lead the Department of Labor previously ordered staff at her former post to not cooperate with Immigration and Customs Enforcement (ICE), according to a memo that Republican lawmakers obtained.

Acting Labor Secretary Julie Su, whom Biden has tapped to lead the department permanently, previously headed the California Labor Commission. During her tenure in that posting, Su authored a memo directing staff not to voluntarily cooperate with federal immigration agents and to ask that they leave the premises, Fox News reported.

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Commentary: It’s Time to Take the Unnecessary Politics Out of ESG and Retirement Savings

New York Stock Exchange

Increased politicization of “environmental, social and governance” (ESG) factors in investment has resulted in one side claiming it only promotes social and political objectives, and the other side claiming that ESG is always relevant to making sound investment decisions.
 

President Biden’s veto of a Congressional resolution, regarding recently finalized amendments to a 2020 Department of Labor (DOL) administrative rule on retirement security, has brought ESG to the forefront again. The DOL’s amendments address how fiduciaries of a person’s 401(k)s and private pension funds make decisions about their retirement savings and the role of ESG in making those investment decisions. The DOL, under ERISA (Employee Retirement Income Security Act of 1974), regulates private retirement plans. ERISA covers roughly $12 trillion in retirement savings for 150 million Americans. 

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Commentary: So Far, Biden’s Nominees Are a Display of Liberal Incompetence But Will Julie Su Surprise Us?

Julie Su, President Joe Biden’s pick to head the Department of Labor, is slated to testify before the Senate Health, Education, Labor, and Pensions Committee on April 20. In the meantime, workers across the country might check out how other Biden nominees have fared.

Phillip Washington, Biden’s pick to head the Federal Aviation Administration, has withdrawn his name from nomination. The White House official attributed the action to “an onslaught of unfounded Republican attacks.” Those who watched his March 1 hearing have cause to wonder.

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Pennsylvania Democrats Base Their Pay Equity Bill on Dubious Data

With Equal Pay Day occurring this Tuesday, Pennsylvania Democrats renewed a push to strengthen state and federal pay equity laws, citing workplace discrimination statistics that scholars often find questionable. 

State Senators Maria Collett (D-North Wales) and Steve Santarsiero (D-Doylestown) proposed a bill that would apply the commonwealth’s Equal Pay Law to a broader universe of workers and a greater scope of fringe benefits. The measure introduced unsuccessfully last session, would also bolster employees’ rights to inquire about the wages a company pays and permit workers to collect back wages from employers who courts find in breach of the law. The senators said these changes are necessary because women in Pennsylvania earn 79 cents for every dollar men receive, a disparity of over $10,000 per year.

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Wisconsin Senator Johnson and Colleagues Urge White House to Reverse Major Climate Policies

Wisconsin Republican Senator Ron Johnson wrote jointly with several colleagues to President Joe Biden this week urging him to reverse major elements of his anti-fossil-fuel agenda. 

The letter from the senators takes issue with several actions the White House has taken to hinder investment in and use of oil, natural gas and coal in an effort the administration insists is important to lessening global warming. 

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Teachers Flee Unions as Membership Plummets by Almost 60,000

The nation’s largest teachers unions, the National Education Association (NEA) and the American Federation of Teachers (AFT), declined by at least 59,000 members during the 2021-2022 school year, according to the U.S. Department of Labor (DOL) disclosure reports.

The NEA, the nation’s largest teachers union, lost 40,107 members while the AFT, the nation’s second largest teachers union, declined by 19,078, according to the DOL reports. The decline comes as public schools added 95,000 educators from September 2021 to 2022.

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Ohio Supreme Court Dismisses Case on Governor DeWine’s Halt to Additional COVID Unemployment Benefits

The Ohio Supreme Court unanimously dismissed a case on if Governor Mike DeWine had the authority to cut off an extra $300 per week in federal unemployment benefits.

Justices dismissed the case as “moot.” Without a court order requiring the federal government to keep these additional unemployment benefits, it was unclear if the money still existed.

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Report: Fraudsters Stole $45 Billion in Unemployment Benefits Using Dead People, Prisoners

The Department of Labor announced Thursday that 1,000 people have been charged for receiving $45.6 billion of fraudulent unemployment insurance (UI) payments since March 2020.

The pandemic overwhelmed state offices responsible for distributing benefits, with 57 million people filing initial UI claims within five months of March 2020, the DOL-OIG reported. Fraudsters were successfully able to take advantage of the chaos, filing for claims in multiple states, using fraudulent emails and using the Social Security Numbers (SSN) of dead people and federal prisoners.

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Labor Market Remains Tight as Unemployment Ticks Up

The U.S. added 315,000 jobs in August, as unemployment rose slightly to 3.7%, according to data released by the Department of Labor Friday.

The number of unemployed people rose by 344,000 to 6 million, an increase of 0.2 percentage points from July, accordingto the Bureau of Labor Statistics data. A survey of economists conducted by The Wall Street Journal in advance of the report’s release estimated that 318,000 jobs would be added and that unemployment would remain around 3.5%.

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U.S. July Job Gains More than Double What Economists Had Projected

The U.S. economy added 528,000 jobs in June, according to Department of Labor (DOL) data released Friday, more than double economists’ projections of 250,000 new jobs.

The unemployment rate edged down to 3.5%, according to the DOL’s report, which was also below economists’ predictions of 3.6%, according to The Wall Street Journal. The economy outperformed last month’s high job growth of 372,000, which had itself outpaced expectations, indicating that the Federal Reserve’s interest rate have not begun to cool off the economy.

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‘A Source of Concern’: Jobs Growth Stalls, Unemployment Rises in May

The U.S. economy added 390,000 jobs in May while the unemployment rate was largely unchanged at 3.6%, according to Department of Labor data released Friday.

The number of unemployed people ticked up slightly to about 6 million, according to the Bureau of Labor Statistics (BLS) report. Economists projected 328,000 Americans would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.

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Small Businesses Struggle to Survive in Biden’s Economy: Poll

Small business owners are increasingly pessimistic about U.S. economic conditions and overwhelmingly support an expansion of domestic fossil fuel infrastructure, the latest polling data showed.

Just 27% of small business owners agreed the economy was in “good” or “excellent” condition, according to a Job Creators Network Foundation poll released Friday and shared with The Daily Caller News Foundation. The figure represented the lowest rating of the current economic situation among small business owners since the group began the poll a year ago.

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‘Signs of Slowing’: Unemployment Remains Unchanged as Economists Predict Dim Future

Woman organizing table contents in restaurant

The U.S. economy added 428,000 jobs in April while the unemployment rate was unchanged at 3.6%, according to Department of Labor data released Friday.

The number of unemployed people remained even at about 5.9 million, according to the Bureau of Labor Statistics (BLS) report. Economists projected 400,000 Americans would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.

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Jobless Claims Fall to Lowest Level in over 50 Years

The number of Americans who filed new unemployment claims decreased to 187,000 in the week ending March 19, the lowest level in over 50 years, the Department of Labor announced Thursday.

The Labor Department’s figure showed a decrease of 28,000 compared to the week ending March 12, when new claims numbered 215,000, according to data from the U.S. Bureau of Labor Statistics (BLS). This week’s claims were well below the predictions of economists surveyed by Bloomberg, who estimated that new claims would total 210,000.

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Jobless Claims Decrease by 15,000

The number of Americans who filed new unemployment claims decreased to 214,000 in the week ending March 12, the lowest level since the beginning of 2022, the Department of Labor announced Thursday.

The Labor Department figure showed a decrease of 15,000 compared to the week ending March 5, when new claims numbered just 227,000, according to data from the Bureau of Labor Statistics. The week’s claims were below predictions of economists surveyed by Dow Jones, who estimated that new claims reported Thursday would total 220,000.

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Commentary: The Biden Administration’s ERISA Work-Around

Rising inflation threatens the value of Americans’ retirement savings. Now the Biden administration is finalizing a rule to loosen safeguards under the Employee Retirement Income Security Act of 1974 (“ERISA”) that protect private retirement savings. The new rule, “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights,” stems from President Biden’s May 20, 2021, Executive Order on Climate-Related Financial Risk, which directed senior White House advisers to develop a strategy for financing the administration’s net-zero climate goals, including the use of private savings. 

Predictably, Wall Street is cheering the prospect of undoing ERISA safeguards. According to one analysis, 97% of comment letters support the proposal. But as I show in my RealClear Foundation report The Biden Administration’s ERISA Work-Around, it’s the remaining three percent that should give the Department of Labor (DOL) cause to rethink its deeply flawed approach.

Under ERISA, retirement savings must be invested for the exclusive purpose of providing retirement benefits. The May 2021 executive order illustrates the very danger that ERISA’s exclusive-purpose rule is designed to guard against. To achieve the goals set out in the order, DOL is instructed to “suspend, revise or rescind” two Trump-era rules designed to uphold ERISA’s exclusive-purpose rule.

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Report: Federal Unemployment Benefits Kept Millions from Returning to Work

Increased federal benefits last year perpetuated unemployment and kept millions of Americans from returning to the workforce, a new study released Wednesday reports.

The Texas Public Policy Foundation published the report, which evaluated the impact of federal handouts, particularly the controversial federal unemployment payments of $300 per week. More than two dozen states opted out of the federal program before it was set to  expire last year, citing the elevated joblessness, while blue states largely continued to take the federal money.

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Department of Labor Expands Michigan’s Federal Jobless Waivers

The U.S. Department of Labor (USDOL) granted Gov. Gretchen Whitmer’s request to expand the eligibility for waivers for Michiganders who wrongly received Pandemic Unemployment Assistance (PUA) because of the state jobless agency’s mistake.

“Michiganders should not be penalized for doing what was right at the time they applied for federal pandemic benefits,” Whitmer said in a statement. “Coupled with the waivers we applied earlier, we are looking to help Michiganders who needed unemployment benefits to pay their bills, keep food on the table, and continue supporting small businesses. I look forward to working with our legislative partners to continue putting Michiganders first and keeping more money in their pockets.”

The USDOL updated its waiver guidance to approve five new scenarios for consideration of a waiver may apply blanket waivers for recovery of overpayments:

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Ohio’s Jobless Claims Higher than Most of Nation

A recent report shows Ohio continues to struggle to recover economically from the COVID-19 pandemic when compared with the rest of the nation.

A state-by-state comparison from the personal-finance website WalletHub showed the among the biggest increases in unemployment claims compared with a week ago. Ohio had the ninth-largest increase week-over-over.

“Ohio’s unemployment claims experienced the ninth-biggest increase in the past week. Compared to the same week in 2019, there are almost 75% more claims registered, and over 62% more compared to the first week of 2020, some of the highest increases in the country,” WalletHub Analyst Jill Gonzalez said. “Since the start of the COVID-19 crisis, Ohio has had an over 120% rise in unemployment claims, the 13th-largest nationwide.”

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Supreme Court’s Conservative Justices Seem Skeptical of Biden Admin’s Workplace COVID Vaccine Rules

The Supreme Court on Friday hearing oral arguments on two major Biden administration efforts to increase the country’s vaccination rate against COVID-19 — starting with the mandate requiring large-scale employers to require workers to be vaccinated or tested.

In the first case, the National Federation of Independent Business, et al., Applicants v. Department of Labor, Occupational Safety and Health Administration, et al.

OSHA is more specifically requiring businesses with 100 or more workers either require them to be vaccinated or et tested weekly and wear masks while working, with exceptions for those who work outdoors.

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Youngkin Picks Trump Department of Labor Official for Secretary of Virginia Department of Labor

Governor-elect Glenn Youngkin tapped former Trump Department of Labor (DOL) Assistant Secretary for Administration and Management George “Bryan” Slater to serve as Virginia secretary of labor.

“Workforce development will play a crucial part of jumpstarting our economy in the wake of the COVID-19 pandemic, and Bryan’s experience and leadership will be critical to the development of talent, training of workers, and protection of Virginia’s right-to-work laws that will attract investment to Virginia,” Youngkin said in the Thursday announcement.

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Far More Available Jobs Than Workers as Millions Resign

There are 10.4 million job openings in the U.S., the Department of Labor said Friday, a figure that’s well above the number of unemployed Americans.

“Job openings increased in health care and social assistance (+141,000); state and local government, excluding education (+114,000); wholesale trade (+51,000); and information (+51,000),” the Bureau of Labor Statistics said. “Job openings decreased in state and local government education (-114,000); other services (-104,000); real estate and rental and leasing (-65,000); and educational services (-45,000).”

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Commentary: Biden’s Unlawful Plan to Federalize Elections

Person voting in poll booth

The White House recently issued a statement regarding new actions dozens of federal agencies are taking related to voter registration. These actions come in response to an order President Joe Biden issued back in March.

The order commanded the heads of every federal agency to submit a plan outlining their strategy to engage in voter registration and mobilization efforts to the director of the White House Domestic Policy Council, Susan Rice. This is an unlawful effort by the Biden administration to federalize elections and keep the president and his political party in power.

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Facebook Settles with Department of Justice over Claims It Discriminated Against U.S. Workers

Facebook reached separate settlement agreements with the Department of Justice and Department of Labor on Tuesday, resolving claims that the tech giant discriminated against U.S. workers in hiring and recruiting.

The Department of Justice (DOJ) sued Facebook in December 2020, alleging the company refused to hire or recruit qualified U.S. workers in thousands of open positions by reserving spots in its workforce for temporary visa holders through its permanent labor certification (PERM) program. The DOJ also alleged that Facebook intentionally tried to deter U.S. workers from applying for certain positions.

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U.S. Economy Added Just 235,000 Jobs in August, Way Short of Economists’ Projections

Woman organizing table contents in restaurant

The U.S. economy added 235,000 jobs in August and the unemployment rate fell to 5.2%, according to Department of Labor data released Friday.

The number of unemployed people decreased to 8.4 million, according to the Bureau of Labor Statistics report. Economists projected 720,000 Americans — roughly three times the actual number — would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.

“Despite the delta variant, there is still an opening up of the service sector of the U.S. economy,” Nationwide Mutual Insurance Chief Economist David Berson told the WSJ. “While that started some months ago, it’s not nearly complete.”

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Department of Labor to Award $10 Million to Advance ‘Gender Proportionality’ in Mexico

This week’s Golden Horseshoe is awarded to the Department of Labor for a $10 million grant to promote “gender equity” in the workplace in Mexico.

In its grant notice, the DOL’s Bureau of International Labor Affairs (ILAB) announces that the goal of the project is to “improve gender equity in the Mexican workplace by supporting actions to increase the number of women in union leadership, strengthen protections, address harassment at work and augment wages for women.”

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U.S. Economy Added Whopping 943,000 Jobs in July as Recovery Accelerates

Group of people gathered, talking next to an office desk

The U.S. economy reported an increase of 943,000 jobs in July and the unemployment rate fell to 5.4%, according to Department of Labor data released Friday.

Total non-farm payroll employment increased by 850,000 in July, according to the Bureau of Labor Statistics report, and the number of unemployed persons decreased to 8.7 million. Economists projected 845,000 Americans would be added to payrolls prior to Friday’s report, The Wall Street Journal reported.

“The jobs recovery is continuing, but it’s different in character to any we’ve seen before,” payroll software firm ADP economist Nela Richardson told the WSJ. “I had been looking at September as a point when we could gain momentum—with schools back in session and vaccines widely available. But with the delta variant, we need to rethink that.”

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Jobless Claims Fall Below 400,000, Hit Economists’ Expectations

Unemployment sign

The number of Americans filing new unemployment claims decreased to 385,000 last week as the economy continues its recovery from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a slight decrease in the number of new jobless claims compared to the week ending July 24, when 399,000 new jobless claims were reported. That number was revised down from the 400,000 jobless claims initially reported last week.

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Jobless Claims Surge Past 400,000, Far Higher Than Economists’ Expectations

The number of Americans filing new unemployment claims increased to 419,000 last week as the economy continues its recovery from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a large increase in the number of new jobless claims compared to the week ending July 10, when 368,000 new jobless claims were reported. That number was revised up from the 360,000 jobless claims initially reported last week.

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Inflation Spikes Again, Marks Quickest Increase in 13 Years

Inflation surged 5.4% over the 12-month period ending in June, the quickest spike since August 2008, a Department of Labor report showed.

The consumer price index (CPI) increased 0.9% between May and June, according to the Labor Department report released Tuesday morning. Economists projected the report would show that CPI ticked up 4.7% between July 2020 and June, The Wall Street Journal reported.

“We’re in a transitional phase right now,” Joel Naroff, the chief economist at Naroff Economics, told the WSJ. “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”

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Jobless Claims Increase to 373,000, Above Economists’ Predictions

The number of Americans filing new unemployment claims increased to 373,000 last week as the economy continues to recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a slight increase in the number of new jobless claims compared to the week ending June 26, when 371,000 new jobless claims were reported. That number was revised up from the 364,000 jobless claims initially reported last week.

Economists expected Thursday’s jobless claims number to come in around 350,000, The Wall Street Journal reported.

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Commentary: As President Biden’s Deputy Secretary of Labor, Julie Su Would Take California’s Small-Business Nightmare National

Last Thursday, Senate Majority Leader Chuck Schumer filed cloture on the nomination of Julie Su, California’s top labor official, to become President Joe Biden’s deputy secretary of labor.

Su’s confirmation vote will likely occur soon after the Independence Day Senate recess. That’s bad news.

After all, Su leads California’s Labor and Workforce Development Agency, presiding over one of the most anti-small business regimes in the country. If confirmed as second-in-command at the Department of Labor, she would use her position to expand California’s war on small businesses nationwide. On behalf of their small business constituents, Senators must oppose Su’s confirmation.

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Just 14 States Had Positive Job Growth in May

Just 14 states saw positive employment growth between April and May while the majority of the growth was concentrated in a handful of states, according to the Department of Labor.

Fourteen states led by California, Florida and Texas experienced significant job growth, 35 states experienced stagnant job growth and Wyoming saw a decline in employment last month, according to a Department of Labor report released Wednesday. Overall, the unemployment rates in 21 states decreased between April and May while every state’s employment improved compared to May 2020.

While the U.S. continues to report increased job growth, the report showed that the vast majority of the growth has come from about a dozen states.

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Inflation Surges Five Percent, Largest Spike Since 2008

The Consumer Price Index has increased 5% over the last 12 months, the fastest pace of inflation since August 2008, according to a Department of Labor report.

The Consumer Price Index (CPI), a common tool used to measure inflation, increased 0.6% between April and May, according to the Labor Department report released Thursday morning. Economists projected that the CPI increased by 0.5% and 4.7% over the 12-month period ending in May, according to The Wall Street Journal.

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Gov. Whitmer Signs Executive Directive to Expand High-Speed Internet; Won’t Tell Price Tag

Gov. Gretchen Whitmer has issued Executive Directive 2021-02, which will establish the Michigan High-Speed Internet Office (MIHI) with the intent of improving costs and access to high-speed internet.

The governor pointed to the ongoing pandemic as the precipitating event that necessitated the order.

“COVID-19 has only confirmed how the lack of high-speed internet access can cause too many Michiganders to struggle in their ability to engage in online learning, to use telemedicine to seek needed healthcare, to search for a new job or to take advantage of all the online resources,” Whitmer said in a statement. “A fully connected Michigan is essential for our state to reach its economic potential in the 21st century global economy.”

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Jobless Claims Hit New Pandemic Low, Drop to 473,000

Photo “Unemployment Insurance Claims Office” by Bytemarks. CC BY 2.0.

The number of Americans filing new unemployment claims dropped to 473,000 last week as the economy continues to slowly recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented a decrease in the number of new jobless claims compared to the week ending May 1, when 507,000 new jobless claims were reported. That number was revised up from the 498,000 jobless claims initially reported last week.

Economists expected Thursday’s jobless claims number to come in at 500,000, The Wall Street Journal reported.

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Consumer Prices Increase 4.2 Percent to the Highest Level Since 2008

The consumer price index has jumped 4.2% over the last 12 months, the fastest pace of inflation since 2008, according to a Department of Labor report.

The consumer price index (CPI) increased 0.8% between March and April, according to the Labor Department report released Wednesday morning. Economists projected that the CPI increased by 0.2% last month and 3.6% over the 12-month period ending in April, according to The Wall Street Journal.

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