Saturday, December 31, 2016

Labor Line

December 2016___________________________________

Labor line has job news and commentary with a one stop short cut for America's job markets and job related data including the latest data from the Bureau of Labor Statistics.

This month's job and employment summary data are below. This month's inflation data is below.

The Establishment Job Report and Establishment Job Details for data released December 2, 2016.

American Job Market The Chronicle

Current Job and Employment Data

Jobs
Total Non-Farm Establishment Jobs up 178,000 to 145,128,000
Total Private Jobs up 156,000 to 122,883,000
Total Government Employment up 22,000 to 22,245,000

Employment Note
Civilian Non-Institutional Population up 219,000 to 254,540,000
Civilian Labor Force down 226,000 to 159,486,000
Employed up 161,000 to 152,085,000
Employed Men up 121,000 to 80,843,000
Employed Women up 40,000 to 71,242,000
Unemployed down 387,000 to 7,400,000
Not in the Labor Force up 446,000 to 95,055,000

Unemployment Rate was down .3 % to 4.6% or 7,400/159,486
Labor Force Participation Rate was down .1% to 62.7%, or 159,486/254,540

Prices and inflation measured by the Consumer Price Index (CPI) for all Urban Consumers was up .1 percent for 2015.

The November CPI report for the 12 months ending with October, shows the

CPI for All Items was up 1.6%
CPI for Food and Beverages was down .3%
CPI for Housing was up 2.9%
CPI for Apparel was up .7%
CPI for Transportation including gasoline was up .2%
CPI for Medical Care was up 4.3%
CPI for Recreation was up .5%
CPI for Education was up 2.6%
CPI for Communication was down 2.6%

This Month's Establishment Jobs Press Report

ANOTHER DECENT MONTH

The Bureau of Labor Statistics published its December report for jobs in November.
Big changes came in the labor force and the unemployed. The labor force declined 226 thousand while those not in the labor force increased by even more than last month, 446 thousand. The decrease in the unemployed was so big it dominated the very large decrease in the labor force. The unemployed dropped 387 thousand, decreasing the unemployment rate(unemployed/labor force) by .3 percent to 4.6 percent. The labor force participation rate dropped .1 to 62.7 percent: a low rate gets even lower.

The seasonally adjusted total of establishment employment was up 178 thousand for November. The increase was a total of 139 thousand more private service sector jobs and 17 thousand more jobs in goods production employment. The 156 thousand private sector jobs were combined with an increase of 22 thousand government service jobs to equal the total increase.

Goods production sectors had a net change of 17 thousand jobs. Construction picked up 19 thousand jobs mostly because residential specialty contractors added 14.7 thousand jobs. Residential building added 4.9 thousand jobs set against small losses in heavy and engineering construction. Natural resources picked up 2 thousand jobs the reverse of last month's decline. Manufacturing dropped 4 thousand jobs, a lower loss than last month, but still another loss. Durable goods manufacturing lost 6 thousand jobs although motor vehicles and parts had a small gain. Non-durable goods added 2 thousand jobs. Manufacturing has dropped from 16.3 percent of establishment employment in 1990 to 8.45 percent in 2016.

Government service employment added 22 thousand jobs, a second month of increases in government employment. The federal government added 3 thousand jobs; state government another 5 thousand. Local government added 14 thousand jobs even though public school jobs were down 1.4 thousand. The state added 1.6 thousand jobs in education, but that was offset by the loss in the local school jobs. Private education jobs were up 9.2 thousand for November but the total education increase was only 9 thousand jobs.

Professional and business services had the biggest increase of jobs among private service sectors for November with 63 thousand new jobs, more than last month's increase. The professional and technical service sub sector picked up 23.7 thousand jobs of the 63 thousand total increase, management of companies added 2 thousand jobs with administration and support services including waste management up a net of 37.7 thousand jobs.

Among professional and technical services accounting and bookkeeping services picked up the most new jobs: 17.7 thousand. Computer systems design and related services picked up 5.4 thousand more jobs, a relatively small monthly increase. Among administrative and support, employment services added 21.3 thousand jobs with 14.3 thousand from temporary help services. Services to buildings added 8.1 thousand jobs, even more new jobs than last month.

Health care added 35 thousand jobs, down from last month's gain. Ambulatory care added 22.2 thousand jobs along with a modest 5.5 thousand new jobs at hospitals, and 6.3 thousand new jobs in social assistance where individual and family services added 6.6 thousand jobs offset with other small losses in emergency relief and vocational services. Nursing and residential care employment jobs were up, but only 7 hundred jobs. The November growth rate in health care employment was 2.16 percent, below the fifteen year trend now at 2.43 percent.

Leisure and hospitality added 29 thousand jobs for November a little less than average after two poor months. Arts, entertainment and recreation had a net gain of 10.2 thousand jobs with 9.9 thousand of the gains in amusements, gambling and recreation. Accommodations had a typical small loss, while food services added 18.9 thousand jobs, about double last month, but not an especially big increase.

Three sectors - business and professional services, health care, leisure and hospitality - had 127 thousand of the new jobs total, a little over 70 percent of the gains. These three sectors continue to carry the burden of new jobs, a trend of more than a decade. All but one other sector had job growth, but generally at modest rates of increase.

Trade, transportation and utilities services added a net of only 3 thousand jobs for November, less than the last two months. Seasonally adjusted wholesale jobs had 2.8 thousand more jobs while retail jobs were down 8.3 thousand a second monthly loss of jobs in retail. Transportation made up for part of the losses with 8.9 thousand new jobs for November, but not in modal transportation, which lost jobs. Couriers and messenger services added 5.7 thousand jobs and warehousing and storage another 3.1 thousand jobs to offset modal transportation job losses.

Information services had a loss of 10 thousand jobs for November with losses in every sub-sector. Among information services the motion picture and sound recording industry lost 4.1 thousand jobs and a drop of 2.0 thousand jobs in telecommunications along with other smaller job losses. Financial activities did worse than last month with 6 thousand new jobs. Finance and insurance added 3.1 thousand jobs because banking added a few jobs, but insurance lost 1.3 thousand jobs. Real estate did the best among financial services with 4.9 thousand new jobs.

The category, other services, was up 4 thousand jobs for November, less than the last two months. Only the personal and laundry service sub sector added a significant number of jobs: 3.8 thousand.

The November establishment employment did better than September and October with a total increase of 178 thousand at an annual growth rate of 1.47 percent, good enough to keep up with population growth. The unemployment rate sounds good too except employment increased very little and the decline in the unemployment rate resulted from the unemployed leaving the labor force.

The new jobs keep coming in the same few sectors as I mentioned above. If we add the new jobs in business and professional services, health care, leisure-hospitality with government and education the total comes to 158.2 thousand out of a total increase of 178 thousand new jobs, or 89 percent of the jobs in these four sectors. Administrative support services include services to buildings and dwellings. One of the sub-sectors in services to buildings tracks jobs in landscaping services. In 1990 there was an average of 299 thousand jobs a month; in 2015 the average was up to 712 thousand jobs. Growth was triple the national average. Enough said.

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November Details

Non Farm Total +178
The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from October by 178 thousand jobs for a(n) November total of 145.128 million. (Note 1 below) An increase of 178 thousand each month for the next 12 months represents an annual growth rate of 1.47%. The annual growth rate from a year ago beginning November 2015 was +1.58%; the average annual growth rate from 5 years ago beginning November 2011 was +1.80%; from 15 years ago beginning November 2001 it was .68%. America needs growth around 1.5 percent a year to keep itself employed.

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Sector breakdown for 12 Sectors in 000's of jobs

1. Natural Resources +2
Natural Resources jobs including logging and mining were up 2 thousand from October at 682 thousand jobs in November. An increase of 2 thousand jobs each month for the next 12 months would be an annual growth rate of +3.53 percent. Natural resource jobs are down 89 thousand for the 12 months just ended. Jobs in the 1990's totaled around 770 thousand. Job growth here will be small compared to America's job needs. This is the smallest of 12 major sectors of the economy with .5 percent of establishment jobs.

2. Construction +19
Construction jobs were up 19 thousand from October with 6.704 million jobs in November. An increase of 19 thousand jobs each month for the next 12 months would be an annual growth rate of +3.41 percent. Construction jobs are up 155 thousand for the 12 months just ended. The growth rate for the last 5 years is -3.53%. Construction jobs rank 9th among the 12 sectors with 4.6 percent of non-farm employment.

3. Manufacturing -4
Manufacturing jobs were down 4 thousand from October with 12.260 million jobs in November. A decrease of 4 thousand jobs each month for the next 12 months would be an annual growth rate of -.39 percent. Manufacturing jobs were down for the last 12 months by 54 thousand. The growth rate for the last 5 years is +.82%; for the last 15 years by -1.69%. In 1994, manufacturing ranked 2nd but now ranks 6th among 12 major sectors in the economy with 8.5 percent of establishment jobs.

4. Trade, Transportation & Utility +3
Trade, both wholesale and retail, transportation and utility employment was up 3 thousand from October at 27,424 million jobs in November. An increase of 3 thousand each month for the next 12 months would be an annual growth rate of +.13 percent. Jobs are up by 337 thousand for the last 12 months. Growth rates for the last 5 years are +1.68 percent. Jobs in these sectors rank first as the biggest sectors with combined employment of 18.9 percent of total establishment employment.

5. Information Services -10
Information Services employment was down 10 thousand from October at 2.768 million jobs in November. A decrease of 10 thousand each month for the next 12 months would be an annual growth rate of -4.32 percent. (Note 2 below) Jobs are up by 15 thousand for the last 12 months. Information jobs reached 3.7 million at the end of 2000, but started dropping, reaching 3 million by 2004, but now creeps up to the 2.75 million range. Information Services is a small sector ranking 11th of 12 with 1.9 percent of establishment jobs.

6. Financial Activities +6
Financial Activities jobs were up 6 thousand from October at 8.335 million in November. An increase of 6 thousand each month for the next 12 months would be an annual growth rate of + .86 percent. Jobs are up 153 thousand for the last 12 months. (Note 3 below)This sector also includes real estate as well as real estate lending. Financial Services has been growing slowly with many months of negative growth. The long term growth rates are now at a 5 year growth rate of +1.55 percent, and a 15 year growth rate of +.32 percent. Financial activities rank 8 of 12 with 5.8 percent of establishment jobs.

7. Business & Professional Services +63
Business and Professional Service jobs went up 63 thousand from October to 20.492 million in November. An increase of 63 thousand each month for the next 12 months would be an annual growth rate of +3.70 percent. Jobs are up 571 thousand for the last 12 months. Note 4 The annual growth rate for the last 5 years was 3.16 percent. It ranks as 2nd among the 12 sectors now. It was third in May 1993, when manufacturing was bigger and second rank now with 14.1 percent of establishment employment.

8. Education including public and private +9
Education jobs went up 9 thousand jobs from October at 13.887 million in November. These include public and private education. An increase of 9 thousand jobs each month for the next 12 months would be an annual growth rate of +.81 percent. Jobs are up 151 thousand for the last 12 months. (note 5) The 15 year growth rate equals +.82 percent, slower than the national average. Education ranks 4th among 12 sectors with 9.6 percent of establishment jobs.

9. Health Care +35
Health care jobs were up 35 thousand from October to 19.321 million in November. An increase of 35 thousand each month for the next 12 months would be an annual growth rate of +2.16 percent. Jobs are up 492 thousand for the last 12 months. (note 6) The current month was below long term trends and less than growth from a year ago when the annual growth rate was +2.61 percent. Health care has been growing at +2.43 percent annual rate for the last 15 years, a rate greater than the national rate. Health care ranks 3rd of 12 with 13.3 percent of establishment jobs.

10. Leisure and hospitality +29
Leisure and hospitality jobs went up 29 thousand from October to 15.600 million in November. An increase of 29 thousand each month for the next 12 months would be an annual growth rate of +2.23 percent. Jobs are up 293 thousand for the last 12 months. (note 7) The 5 year growth rate is 2.92%. More than 80 percent of leisure and hospitality are accommodations and restaurants assuring that most of the new jobs are in restaurants. Leisure and hospitality ranks 4th of 12 with 10.8 percent of establishment jobs. It moved up from 7th in the 1990's to 5th in the last few years.

11. Other +4
Other Service jobs, which include repair, maintenance, personal services and non-profit organizations went up 4 thousand from October to 5.722 million jobs in November. An increase of 4 thousand each month for the next 12 months would be an annual growth rate of +.84 percent. Jobs are up 74 thousand for the last 12 months. (note 8) Other services had +1.20 percent growth for the last 5 years. These sectors rank 10th of 12 with 3.9 percent of total non-farm establishment jobs.

12. Government, excluding education +21
Government service employment was up 21 thousand from October to 11.933 million jobs in November. An increase of 21 thousand each month for the next 12 months would be an annual growth rate of +2.12 percent. Jobs are up 155 thousand for the last 12 months. (note 9) Government jobs excluding education tend to increase slowly but surely with a 15 year growth rate of +.19 percent. Government, excluding education, ranks 7th of 12 with 8.2 percent of total non-farm establishment jobs.

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Sector Notes___________________________

(1) The total cited above is non-farm establishment employment that counts jobs and not people. If one person has two jobs then two jobs are counted. It excludes agricultural employment and the self employed. Out of a total of people employed agricultural employment typically has about 1.5 percent, the self employed about 6.8 percent, the rest make up wage and salary employment. Jobs and people employed are close to the same, but not identical numbers because jobs are not the same as people employed: some hold two jobs. Remember all these totals are jobs. back

(2) Information Services is part of the new North American Industry Classification System(NAICS). It includes firms or establishments in publishing, motion picture & sound recording, broadcasting, Internet publishing and broadcasting, telecommunications, ISPs, web search portals, data processing, libraries, archives and a few others.back

(3) Financial Activities includes deposit and non-deposit credit firms, most of which are still known as banks, savings and loan and credit unions, but also real estate firms and general and commercial rental and leasing.back

(4) Business and Professional services includes the professional areas such as legal services, architecture, engineering, computing, advertising and supporting services including office services, facilities support, services to buildings, security services, employment agencies and so on.back

(5) Education includes private and public education. Therefore education job totals include public schools and colleges as well as private schools and colleges. back

(6) Health care includes ambulatory care, private hospitals, nursing and residential care, and social services including child care. back

(7) Leisure and hospitality has establishment with arts, entertainment and recreation which has performing arts, spectator sports, gambling, fitness centers and others, which are the leisure part. The hospitality part has accommodations, motels, hotels, RV parks, and full service and fast food restaurants. back

(8) Other is a smorgasbord of repair and maintenance services, especially car repair, personal services and non-profit services of organizations like foundations, social advocacy and civic groups, and business, professional, labor unions, political groups and political parties. back

(9) Government job totals include federal, state, and local government administrative work but without education jobs. back

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Notes

Jobs are not the same as employment because jobs are counted once but one person could have two jobs adding one to employment but two to jobs. Also the employment numbers include agricultural workers, the self employed, unpaid family workers, household workers and those on unpaid leave. Jobs are establishment jobs and non-other. back

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Saturday, November 5, 2016

History, Politics, the working class, and the vote for 2016

The Sorry State of the working class

On April 13, 2016 the New York Times ran an op-ed piece entitled “Foiling Obama, Congress Made Trump.” Republican successfully blocked every effort Obama made to benefit the working class with constructive proposals: a cut in the payroll tax, an infrastructure bank to create construction jobs, a larger child tax credit, community college investments, an expanded earned income tax credit, making retirement plans portable across employers, tax credits for manufacturing communities, wage insurance.

Presidential election night commentary repeatedly mentioned the angry working class and how they voted for Donald Trump, apparently in large enough numbers to swing a few key states and the election. Many of the Trump voters were characterized as working class whites with a high school education struggling to get by on low paid jobs. A corporate decision to close a factory and move to Mexico or China often figured in their low income and loss of employment. The loss of jobs then figured in the collapse of their local housing market and empty strip malls sprinkled about in cities and towns across the mid western states.

Trump campaigned with many Democratic proposals the Republican establishment hates and blocked during the Obama years. He attacked American business moving jobs overseas during the campaign along with the NAFTA trade agreement. Neither the Republican or Democratic parties or any of its presidents have ever challenged the absolute right of corporate America to shut down plants and operations in the United States and move them to Mexico or China or anywhere they want to go. Neither party does a thing to slow it down, or appears to care about places like Detroit, decimated by autocratic corporate decisions. The best the Democrats have ever done is to offer trade assistance or retraining for those who lose their jobs.

For Trump to keep his promises to the people who elected him he will have to fight the Republican Party establishment and propose more aggressive policies than the modest efforts of the Democrats. The Democrats have already organized an agenda around his campaign pledges in what shapes up into a three cornered discussion, that is if Trump really meant what he said during the campaign.

The Trump and Democratic proposals can help generate new spending which in turn helps create jobs, but they do almost nothing to stem the surplus of labor or fix the policies accepted by both parties. More spending won’t be enough; the supply of labor has to be addressed.

Trump’s proposals include a demand to cut immigration and reduce the supply of professional foreign labor under the H1-b program, but H-1b is only one of several other programs that bring in foreign labor. Otherwise I have heard nothing about changes to the Fair Labor Standards Act. President Obama tried to amend the overtime rules and get more people a chance to earn time and half for work over forty hours, but the Republicans howled against it and filed suits to stop it.

As of now the minimum wage remains at $7.25 an hour for a forty-hour week and anyone earning over $23,660 has no right to overtime if an employer chooses to put them on a salary. Two people working sixty hour weeks equal three people working forty hour weeks. Unpaid overtime helps restrict new jobs and add to the already massive oversupply of labor. Two decades of higher productivity has eliminated millions of jobs and helped generate an even bigger surplus of labor working a forty-hour week. The full time workweek will need to be decreased to 30 hours phased in over several years.

Trump will have to lower federal income taxes on the modest wages and salaries of the low paid working class. In 2015 a single person earning $25,000 had to pay $1,743.75 in federal income tax even though it is not possible to live on such a low salary and that is before social security and state taxes. A couple both earning $25,000 pay $3,487.50 in federal income tax. If their income had been corporate dividends they would have paid nothing, not a cent in federal taxes.

It was the working class that put Trump in office, but it will be easy to tell if they get something for it. They got nothing from Reagan or the two Bush presidents. Republicans are pickpockets, but Trump refuses to sound like a Republican so maybe now will be different. Maybe.

Tuesday, October 11, 2016

The Middle Class, the Working Class and American Politics

The Middle Class, the Working Class and American Politics

The term middle class works especially well for millionaires and billionaires. They find it useful as a way to get families and individuals to envy the rich and identify with them. People who think their middle class are more likely to feel superior to people identified as working class.

Many stories in the media cite middle class criteria for you to evaluate your personal status. Are you in the middle class? Money Watch published a typical list on the Internet. It lists eight criteria: 1. You earn between $36,000 and $109,000 a year, 2. You own a home, 3. You have a secure job, 4. You have health insurance, 5. You invest for retirement, 6. You went to college, 7. You take family vacations and 8. You think you’re middle class.

It’s instructive that five of the eight criteria – 1, 2, 4, 5, 6 and 7 - apply to how much you earn and what you can afford. In a consumer oriented society business wants everyone to define themselves and their class by what they earn, own and buy. People who compare their income with others might forget about job rights and what they go through to earn a living.

Equating class to what you earn and buy ignores the power to control the political system. If you answer yes to the following four statements you are in the privileged upper class. If you answer no, then you are in the working class.

1. You sit on the board of directors of an American corporation with more than $100 million in assets.
2. Your lawyer and accountant have set up your non-profit foundation that gives away more than a million dollars a year.
3. You do not pay more than 15 percent marginal personal income tax and have in one or more years in the past decade paid no federal personal income tax.
4. You can easily support yourself and your family in the manner you expect without working for a wage or salary.

Political power determines the economic rules that allow and perpetuate the upper class. As Warren Buffet likes to tell the press from time to time wage earners pay taxes at more than double the rate he pays for corporate stock dividends or capital gains. If we define the working class as people who have to support themselves working for a wage or salary, the current tax rules create a decided disadvantage for the working class. I am unaware of working class influence on Congress that might change that.

There is a famous quote of Jay Gould, the American tycoon from the 19th century: "I can hire one half the working class to kill the other half." Back in the 19th century tycoons like Jay Gould did hire working class guards to shoot at picketing strikers; Mr. Gould was not making idle threats. Lately Governors like Scott Walker of Wisconsin get the under paid, over worked, over taxed members of the working class to attack public school teachers who they are encouraged to think are over paid and privileged members of the middle class. The working class who vote for a Scott Walker vote for a politician who steadily works to lower their standard of living.

The working class has always been divided because some people think they’re in the middle class when there’s no such thing as the middle class. The term is deliberate deception and diversion. If you work for wages, or you’re retired and live on the savings and Social Security from your wages, you’re in the working class. Your income means nothing in that classification; it’s how you earn a living, not how much. If Americans know who they are, there will be changes in American politics that uplift the miserable and powerless lot of wage earners.

What class are you in?

Monday, September 26, 2016

Donald Trump on Coal Mining Jobs

Donald Trump on Coal Mining Jobs

Lately I heard Candidate Trump blaming the Democrats for the loss of jobs in coal mining. Since he does not believe in global warming it follows that enforcement of clean air regulations for coal fired electric plants makes people like Hillary Clinton responsible for these job losses.

Maybe not.

Back in the early 1920’s just under 800,000 worked as coal miners in the coal industry. It was a time when inter city transportation came entirely from the use coal burning, steam locomotives. It was a time when nearly everyone used coal for home heating. It was a time when the steel industry needed mountains of coal. It was early in the mechanizing use of high productivity machinery.

It was also the beginning of the mordant and mournful decline in coal mining jobs. By 1990 the coal industry employed 136 thousand in surface and underground mining of bituminous coal and anthracite coal. Steam locomotives are gone; few heat their homes with coal; the steel industry uses scrap in electric furnaces. By the end of 2000 jobs were down to 71.6 thousand; by the end of 2010 they recovered to 84.3 thousand; by the end of 2015 the coal industry was down to 60.7 thousand jobs; by August 2016 jobs were 52.4 thousand.

Just over 64 percent of the jobs in coal mining are in construction, extraction and material moving occupations and five of these occupations are partly to mostly specialized to the coal industry. These five are continuous mining machine operators, mine cutting and channeling machine operators, roof bolters, loading machine operators in underground mining and shuttle car operators.

All employed in these occupations operate highly productive mining machinery; they do not use a pick and shovel. For example, 90 percent of shuttle car operators work in the coal industry. The median wage reported for 2015 was $55,320 and that wage has increased faster than inflation since 2008, right after the Obama administration took office. Given the specialized nature of the work it would be next to impossible for laid off shuttle car operators to find a similar job in another industry and similarly for the other four occupations mentioned above.

Other occupations in the coal industry in management, finance, construction, maintenance and repair have employment in many industries and those losing these jobs in the coal industry can seek employment in many other industries just like the rest of us. Since the end of 2008 the five specialized coal mining occupations have lost an average of 859 jobs a year through 2015.

It is worth mentioning that employment in oil and gas extraction and support activities for oil and gas extraction have increased in the years of the Obama presidency from 2008 to 2015 by 27.1 percent, or an additional 102.2 thousand jobs, more than the loss of coal industry jobs. Even if we assume the last eight years of decline in coal demand results solely from clean air regulations applied to coal fired power plants, there is no need to weigh clean air against the loss of jobs in this instance. It doesn’t matter what Trump says or does; coal employment will not be going up, no matter how dirty the air.

Friday, July 22, 2016

Jobs as Chefs

Chefs and Head Cooks

Standard Occupational Classification #35-1011 Chefs and Head Cooks

SOC Definition - Direct the preparation, seasoning, and cooking of salads, soups, fish, meats, vegetables, desserts, or other foods. May plan and price menu items, order supplies, and keep records and accounts. May participate in cooking. Also known as: Executive Chef; Pastry Chef; Sous Chef

Chefs and head cooks are classified as food preparation and serving related occupations with the majority working in the accommodations and food services industry. For chefs and head cooks 45.1 percent work in full service restaurants, another 7 percent at limited service eating places like cafeterias, grills and buffets, snack and non-alcoholic beverage bars, 10.6 percent in accommodations including traveler accommodations, casino hotels, RV parks and recreational camps, and 6.0 in the amusement, gambling and recreation industry. Education employs 1.5 percent and hospitals about .9 percent and private households 4.9 percent as self-employed chefs.

National employment as chefs and head cooks was 129,370 in 2015. Jobs are up since 2000 when jobs were 122,860. The annual average job increase equals 434 per year since 2000 at a growth rate of .34 percent. The Bureau of Labor Statistics is forecasting job growth for chefs and head cooks of 1,130 per year through 2024 at a growth rate of .85 percent a year.

Job openings make a better measure of new hiring than job growth. Job openings are job growth and the number of net replacements. Net replacements are people who permanently leave an occupation for another occupation or retirement and must be replaced before there can be job growth. Job openings for chefs and head cooks are forecast to be 3,000 a year through 2024.

The recently updated BLS Education and Training Classification assignments list high school diploma or equivalent skills as necessary for entry into jobs as chefs and head cooks. However, percentages from survey data are published for chefs and head cooks showing an educational distribution where 29.2 percent have a high school degree, 17.6 percent have less than a high school degree, 22.5 percent some college, but no degree, 16.9 percent have an associates degree, 12.3 percent have BA degrees, and 1.6 percent have an advanced degree. Five years of experience in a related occupation is considered necessary to a chef or head cook but on-the-job training should not be necessary for new hires.

The National Center for Education Statistics reports degree data for America’s colleges and universities. There were 1,138 BA degrees granted in personal and culinary arts in 7 programs in June 2012, the last year of complete degree data. These include baking and pastry arts-baker-pastry chef , culinary arts-chef training, restaurant, culinary, and catering management, and meat cutting-meat cutter. Degrees are up from 2006 when 736 finished similar degrees.

The basic wage data from the BLS occupational employment survey includes a wage distribution. Averages are not used much in wage data. A few high wages pull up the average and make it unrepresentative. Instead a distribution range of wages is published with the 10th, 25th, median, 75th, and 90th percentiles of wages. A 10th percentile wage means 10 percent working in this job have wages equal to or less than the 10th percentile wage and so on. Annual wages are converted to hourly wages by dividing annual wages by 2080

The entry wage for the national market in the 10th percentile for chefs and head cooks is reported as $23,150 in 2015. The 25th percentile wage equals $30,840. The median wage is $41,500, the 75th percentile wage equals $57,110 and the 90th percentile wage is $74,170.

The wages of chefs and head cooks have kept up with inflation for the last decade. For example, to have the buying power of the 2006 median wage of $34,670 in 2015, the chefs and head cooks wage would need to be $40,408.09. In stead it was $41,500, a 2.70 percent increase in the real wage for those 9 years.

Some employers pay a salary to their chef employees in lieu of an hourly wage in order to avoid paying overtime at time and a half. For an employer to pay a salary and be exempt from overtime pay the employee must be paid at least $23,660 a year, or $455 a week, and meet the definition of their work defined in the regulations of the Fair Labor Standards Act as amended. The regulations have always included managerial, professional and educational occupations.

When the Fair Labor Standards Act regulations were revised in 2004 by the Bush administration a new list of specific occupations was included as exempt. Chef was on the list. I have given the regulations that define the work of a chef that an employer needs to meet to pay a salary and be exempt from overtime pay if they pay at least $23,660 a year.

Overtime exemption defined for Chefs---Chefs, such as executive chefs and sous chefs, who have attained a four-year specialized academic degree in a culinary arts program, generally meet the duties requirements for the learned professional exemption. The learned professional exemption is not available to cooks who perform predominantly routine mental, manual, mechanical or physical work.

It is common for employers to title and define someone’s employment to fit the overtime exemption definitions, but it can be exploitive, sometimes bluntly so. If a salary is set close to the 10th percentile wage of $23,150 or less it is a real abuse, but less so the closer pay gets to the median of $41,500.

The Obama Administration has raised minimum salary required for exemption from overtime from $23,660 to $47,467. If a chef’s salary is below $47,467 then his employer will have to pay time and half for overtime beginning December 1, 2016 to be in compliance with the Fair Labor Standards Act. The only way to avoid paying overtime by paying a salary will be to pay an annual salary more than $47,467.

Saturday, June 18, 2016

Jobs in Public Relations

Public Relations Managers and Public Relations Specialists

Standard Occupational Classification #11-2031 Public Relations Managers
Standard Occupational Classification #27-3031 Public Relations Specialists

SOC Definition for Public Relations Managers #11-2031 -- Plan and direct public relations programs designed to create and maintain a favorable public image for employer or client; or if engaged in fundraising, plan and direct activities to solicit and maintain funds for special projects and nonprofit organizations. Also known as: Fundraising Director, Public Information Director, Publicity Director

SOC Definition for Public Relations Specialists #27-3031 – Engage in promoting or creating good will for individuals, groups, or organizations by writing or selecting favorable publicity material and releasing it through various communications media. May prepare and arrange displays, and make speeches. Also known as Account Executive, Communications Director, Communications Specialist, Corporate Communications Specialist, Media Relations Specialist, Public Affairs Specialist, Public Information Officer, Public Information Specialist, Public Relations Coordinator or Specialist

Respond to requests for information from the media. Write press releases or other media communications to promote clients and an organization's accomplishments, agenda, or environmental responsibility. Establish or maintain cooperative relationships with representatives of community, consumer, employee, or interest groups. Coach client representatives in effective communication with the public or with employees. Update and maintain content posted on the Web. Prepare or edit organizational publications, such as employee newsletters or stockholders' reports, for internal or external audiences. Coordinate public responses to management incidents or conflicts.


Public Relations Managers are classified as managerial occupations with 24.2 percent working in the non-profit Religious, Grantmaking, Civic, Professional, and Similar Organizations, 16.6 percent working in Junior Colleges, Colleges, Universities, and Professional Schools, 8.2 percent working in Advertising, Public Relations, and Related Services, 9.3 percent working in Management of Companies and Enterprises and a scattering of small percents in many industries.

For Public Relations Specialist are classified as Arts, design, entertainment, sports, and media occupations with 21.6 percent working in Religious, Grantmaking, Civic, Professional, and Similar Organizations, 9.5 percent working in Junior Colleges, Colleges, Universities, and Professional Schools, 14.9 percent working in Advertising, Public Relations, and Related Services, 7.3 percent working in hospitals and social assistance, 6.9 percent working in state and local government, excluding education and hospitals and a scattering of small percents in many industries.

National employment as Public Relations Managers was 60,380 in 2015. Jobs are down since 2000 when jobs were 68,000. The annual average job decrease equals 508 per year since 2000 at a growth rate of -.79 percent. The Bureau of Labor Statistics is forecasting job growth for Public Relations Managers at 470 per year through 2024 at a growth rate of .69 percent a year.

National employment as Public Relations Specialists was 218,910 in 2015. Jobs are up since 2000 when jobs were 128,570. The annual average job increase equals 6,023 per year since 2000 at a growth rate of 3.61 percent. The Bureau of Labor Statistics is forecasting job growth for Public Relations Specialists at 14,900 per year through 2024 at a growth rate of .60 percent a year.


Job openings make a better measure of new hiring than job growth. Job openings are job growth and the number of net replacements. Net replacements are people who permanently leave an occupation for another occupation or retirement and must be replaced before there can be job growth. Job openings for Public Relations Managers are forecast to be 610 a year through 2024.

Job openings make a better measure of new hiring than job growth. Job openings are job growth and the number of net replacements. Net replacements are people who permanently leave an occupation for another occupation or retirement and must be replaced before there can be job growth. Job openings for Public Relations Specialists are forecast to be 2,620 a year through 2024.

The recently updated BLS Education and Training Classification assignments lists BA degree skills as necessary for entry into jobs as Public Relations Manager. However, percentages from survey data are published for Public Relations Managers showing an educational distribution where 49.2 percent have a BA degree, 23.6 percent have advanced degrees, 13.9 percent some college, but no degree, and almost 5.6 percent have an associate’s degree. High school skills were sufficient for 7.6 percent who work here and .6 percent have less than a high school degree. Previous experience is considered unnecessary, but moderate on-the-job training is expected to be necessary for new hires.

BA degree skills are necessary for Public Relations Specialists. Percentages from survey data are published for Public Relations Specialists showing an educational distribution where 56.2 percent have a BA degree, 22.4 percent have advanced degrees, 11.2 percent some college, but no degree, and almost 4.3 percent have an associate’s degree. High school skills were sufficient for 5.4 percent who work here and .6 percent have less than a high school degree. Previous experience is considered unnecessary, but moderate on-the-job training is expected to be necessary for new hires.


The National Center for Education Statistics reports degree data for America’s colleges and universities that can be compared with job growth and openings. Relevant BA degree programs include Public relations/image management, advertising, political communication, health communication, public relations, advertising and applied communications specialties. There were 11,126 BA degrees granted in the 5 programs in public relations, advertising and applied communications in June 2013, the last year of complete degree data. These are up slightly from June 2011 when they were 10,027 and June 2012 when they were 9,948. There were also 1,004 MA degrees granted and 11 Ph.D degrees granted in June 2013. The ratio of relevant BA degree to openings equals 3.44, or 11,126/(610+2620), assuring more than three qualified candidates to fill job openings.

The basic wage data from the BLS occupational employment survey includes a wage distribution. Averages are not used much in wage data. A few high wages pull up the average and make it unrepresentative. Instead a distribution range of wages is published with the 10th, 25th, median, 75th, and 90th percentiles of wages. A 10th percentile wage means 10 percent working in this job have wages equal to or less than the 10th percentile wage and so on. Annual wages are converted to hourly wages by dividing annual wages by 2080

The entry wage for the national market in the 10th percentile for Public Relations Manager is reported as $56,890 in 2015. The 25th percentile wage equals $76,000. The median wage is $104,140, the 75th percentile wage equals $147,590 and the 90th percentile wage is $187,200.

The wages of Public Relations Manager have kept up with inflation for the last decade. For example, to have the buying power of the 2008 median wage of $89,430 in 2015, the Public Relations Manager wage would need to be $98,448.40. In stead it was $104,140, a 5.78 percent increase in the real wage for those eight years.

The entry wage for the national market in the 10th percentile for Public Relations Specialist is reported as $31,690 in 2015. The 25th percentile wage equals $41,520. The median wage is $56,770, the 75th percentile wage equals $78,340 and the 90th percentile wage is $110,080.

The wages of Public Relations Specialist have kept up with inflation for the last decade. For example, to have the buying power of the 2008 median wage of $51,280 in 2015, the Public Relations Specialist wage would need to be $56,451.23. In stead it was $56,770, a 0.56 percent increase in the real wage for those eight years.



Wednesday, June 8, 2016

The New Overtime Rules and the Deceptive Response

The New Overtime Rules and the Deceptive Response

New overtime rules for the Federal Labor Standards Act (FLSA) will begin December 1 of this year. Current overtime rules only apply to someone paid a salary equal to or less than $23,660 a year or to someone paid an hourly wage, a decision entirely at the discretion of the employer. FLSA rules calls for pay at a rate of time and a half for hours over forty hours a week. Over time pay gives employers the incentive to hire additional people rather than pay overtime; two people working sixty hours a week equals three people working forty hours a week.

The current overtime pay exemptions date from August 23, 2004 following a substantial revision of Fair Labor Standards regulations by the Bush Administration. The revision added lots of new language that made it easier to exempt executive, administrative and professional employees from overtime pay as long as they work for a salary above $23,660.

The new rules are sometimes called white-collar rules because exemptions to overtime pay have never applied to “manual laborers or other ‘blue collar’ workers who perform work involving repetitive operations with their hands, physical skill and energy.” For example, with the current white collar rules an employee can be denied overtime pay if employed in a bona fide executive, administrative or professional capacity and compensated by salary at a rate of not less than $455 per week ($23,660 a year) exclusive of board, lodging or other facilities, whose primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers and whose primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

On December 1 the minimum annual salary requirement for overtime pay goes up to $47,476, but does not change the regulations like the one paraphrased above. The new minimum is high enough that some employees previously exempted from - denied - the right to overtime pay will be entitled to it.

Opponents

Business owners, managers and those who identify with business owners and managers will not like the change. It will raise wage costs and lower profits; the changes redistribute income to wage earners at the expense of individual business profits. The people who do not like the policy do not generally mention how much easier it was to avoid paying overtime after the Bush administration revisions of 2004, or how stagnant wages reduce buying power and limit economic growth.

The Department of Labor estimates the new rules will apply to 4.2 million people and if overtime pay raises buying power enough to increase total spending, more production and sales will increase collective business profits. In that way the rules might improve the economy for the larger society but individual businesses will have higher net profits if they can get essential work done by avoiding over time pay.

Opposition comments published in the newspapers (Washington Post, May 21, 2016, “The potential pitfalls of new overtime rule”) and the Internet avoid confronting the redistribution issue or the abuses so common to overtime. The Washington Post article cites the ominous proviso offered by unnamed business groups that “ what workers will probably see a lot less of is flexibility on the job.” … “As an employer, you will have to think about how much time did the person really work … It’s a headache and because it’s a headache, the employer’s first reaction is going to be: ‘No, you can’t work from home. Sorry.’ ”

Beware the deception. Compliance with the FLSA already requires tracking hours worked, whether they are at an office or work from a remote computer. The first sentence of the Fair Labor Standards Act requires that all hours of work will be compensated. Executive, administrative and professional occupations are exempt from overtime pay, but they are entitled to regular pay for work over forty hours a week. Flexibility for salaried people should not turn overtime hours into free work. People who get pressured into working fifty and sixty hours a week who get paid a full time salary based on legally designated full time workweek of forty hours giveaway overtime hours for free.

The Washington Post article cites a lawyer who suggests “some employers may choose to bump workers above the salary threshold, avoiding the problem entirely. But many employees will probably be “re-classified” as hourly workers at which time the number of hours they work might be limited or carefully monitored and tracked.” That translates to some employees can expect reprisals to convince them the new rules are bad for them, as well as business.

These new rules offer modest help to a modest share of working people living on their wages. It is a conservative change, albeit in the right direction, to reduce income inequality. It highlights class conflicts between working people and business owners. Business fights every effort to improve wages as they have here even to the point where low wages are so low they drag down the economy and reduce economic growth. These are new rules, but it’s an old battle.