employment

Great Example of Why House UI Proposal Makes No Sense

/ The Old Crank

Yesterday’s Las Vegas Sun published an excellent article by Tovin Lapan on the increasing demand for adult education classes among the unemployed in Las Vegas. The article includes a photo gallery of the long lines of people waiting to sign up for ESL classes at the Community Multicultural Center (CMC).

“We’ve seen an increase in demand for ESL classes in the last few years,” said Lyn Pizor, Community Multicultural Center director. “We typically run waiting lists in all ESL classes, and in the last two or three years those lists have gotten longer. There just aren’t enough spaces to serve the population.”

The majority of those in line, including Melchor, spoke of the need to learn English so they can find a new job. Many said they would pursue GED classes, a new offering at the center, after their English skills were up to par. (my emphasis)

The problem in Las Vegas, it appears, is not that the unemployed need motivation to enroll in adult education, but that there is not sufficient resources to meet the demand.

According to the article, CMC receives the bulk of its funding through the Workforce Investment Act (WIA). WIA Title II is the primary federal source of adult edcuation funds for adult education programs in the United States. Congress, which has not significantly increased fudning for Title II over the last decade, is now debating whether to cut off UI benefits earned by unemployed workers without a high school diploma or GED unless they are enrolled in a class to obtain one—even if they can’t enroll in one because Congress (and states) don’t adequately fund adult education to meet the demand.

Conferees Debate UI Extension Legislation – Lots of Debate Over GED/Diploma Requirement

/ The Old Crank

Senate and House conferees have been meeting this week to resolve their differences on the Social Security payroll tax cut extension, the unemployment insurance (UI) program, Medicare physicians payment fix — and a few other items — in the hopes of coming up with a compromise bill in the next few weeks. House Republicans have been pushing a proposal to deny UI benefits to individuals without a high school diploma unless they are enrolled in classes that will lead to a GED or another “state-recognized equivalent.”

You can watch today’s discussion here, via C-SPAN. A great deal of time was spent today debating the diploma/GED requirement. They are meeting again tomorrow. In the meantime, Sen. Baucus (D-MT) promised House Republicans that the Senate would have an alternative proposal ready in time for tomorrow’s meeting.

Meanwhile, the National Coalition for Literacy, which already issued an action alert on this issue, has now also circulated a letter to conferees (which, in the interest of full disclosure, I should note that I helped write) outlining why the House proposal is unfair and unworkable.

Also, see CLASP’s latest statement on the House proposal here.

Rep. Camp Defends Imposing Impossible-to-Meet Requirements on Those Seeking UI Benefits

/ The Old Crank

Back in December, when Rep. Dave Camp introduced H.R. 3630, he issued the following statement:

The unemployment program must do more than simply send out checks – it must help people get back to work. The commonsense reforms House Republicans and I proposed included items like requiring those who receive unemployment benefits to actually look for work and work toward a GED if they don’t have a high school diploma. The reforms also would provide states with the ability to administer drug screening programs if they so choose. Democrats only wanted to send out more taxpayer-funded benefits. Republicans want to get these Americans the training and resources they need to move from an unemployment check to a paycheck.

Putting aside the issue that imposing an educational credential requirement would, in Robert Greenstein’s words, “violate the basic compact that the UI system has embodied” since it began, there are tens of thousands of adult leaners in the U.S. today who would love to do nothing more than enroll in a GED class if they could. But, as noted by myself and others, virtually every state in the country has waiting lists for adult education programs, and many states have cut back on adult education services. There are around 160,000 people on waiting lists for adult education services in federally-funded programs alone.

Rep. Camp claims that Republicans want to provide Americans with “the training and resources they need” but this bill does not do that. At best, it creates a desperate increase in the demand for that training while providing absolutely zero new investments for them, leaving many laid off workers with no way to meet the requirements imposed by this new restriction.

Wages: A Race to the Bottom

/ The Old Crank

(updated)

From an article posted Friday by Jack Temple to the Demos Policy Shop blog, concerning last week’s jobs report:

[W]hile the manufacturing sector is steadily expanding, it appears to be joining the ranks of lower-wage jobs typically associated with the service sector. Indeed, as I’ve mentioned before, the “wage premium” for manufacturing jobs has been disappearing over the last several decades, relative to service sector jobs requiring similar skill levels.

And the numbers are clear: since 2000, manufacturing wages have increased over 70 percent among OECD nations and over 80 percent in Canada, while U.S. manufacturing wages have risen just under 40 percent.

So while manufacturing may be making some kind of a comeback in the U.S., this by no means signals a return of the high-road jobs that built the American middle class decades ago.

From the testimony of Secretary of Labor Hilda Solis before the Senate Committee on Health, Education, Labor and Pensions, on July 26, 2011:

First, I agree wholeheartedly with President Obama that rebuilding our manufacturing sector is critical to rebuilding the middle class. The manufacturing sector has shown enormous resiliency and strength in our economic recovery so far, with over 250,000 jobs added since the beginning of 2010. Manufacturing jobs are the kinds of jobs that pay well and can serve as an anchor in communities across the country. After more than a decade of losing manufacturing jobs, it is a thrill for me to be part of the policies that are helping to rebuild our manufacturing base. (my emphasis)

The secretary reserved a big chunk of her testimony to discussing the value of education credentials. “Credentials,” she said, “are a key component of improving the skills and adaptability of workers who want to compete for middle class jobs in the 21st century.”

UPDATE 1/16/12: From another recent another story on the rebounding U.S. manufacturing sector:

Ford Motor Company is bringing back 2,000 jobs from China after striking an agreement with the United Auto Workers. [Boston Consulting Group’s Harold] Sirkin says it’s good news for the economy even though wages will be lower in those jobs than they were previously.