Stress cracks in the labor market

Stress cracks in the labor market

Stress cracks in the labor market

Key Points

  • There are more jobs available in America than ever before. 
  • There are more people NOT working in America than ever before.
  • At Georgia Center for Opportunity, we have created a two-step process to create meaningful, self-supportive work. 

“Never has work been so readily available in modern America; never have so many been uninterested in taking it.”

That’s a key point made by social scientist Nicholas Eberstadt in a new column for The Wall Street Journal. Eberstadt points out that even in an environment with historically low unemployment, the truth is that millions of workers are missing from the labor force. 

“We now face an unprecedented peacetime labor shortage, with employers practically begging for workers, while vast numbers of grown men and women sit on the sidelines of the economy—even though job applicants have more bargaining power in the ‘Great Resignation’ than at any time in recent history,” he writes.

Eberstadt points to the unprecedented federal government response to the pandemic as a key driver of the current quandary: stimulus payments, expanded child tax credits, and heightened unemployment benefits, to name a few.

The problems were evident before the pandemic but became worse after. “The current manpower shortage highlights the new face of the flight from work in modern America,” Eberstadt writes. “With pre-Covid rates of workforce participation, almost three million more men and women would be in our labor force today. Prime-age men account for only a small share of this shortfall: Half or more of the gap is owing to men and women 55 and older no longer working.”

Eberstadt has also written quite a bit on how people are spending their time as non-workers:

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020—possibly a new record in the inactivity olympics and nearly 300 hours more than a typical fulltime job requires in year. Prime-age women who are both work-free and child-free exhibit similar traits—especially those neither employed nor in education or training (called NEETs by economists). In 2020 they reportedly devoted even less time to household chores, taking care of other household members or getting out of the house than prime male labor-force dropouts—and allocated almost 11.5 hours a day to “personal time” (mainly sleep), more than any other group.”



 

tv watching

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020.”

tv watching

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020.”

So, what’s the bottom-line conclusion of all of this? Here at the Georgia Center for Opportunity, we are striving to create a culture that values work and helps all people — particularly disadvantaged populations — find meaningful, self-supporting work. There is a two-step process here:

  1. Policy solutions

A big problem standing in the way is a failing welfare system, one that traps people instead of serving them. Even if well-intentioned, the existing collection of complex and inefficient welfare programs is vast, disconnected, and dehumanizing. Tragically, it deprives people of the hope and dignity that comes with steady work and the government’s response to the pandemic only made these problems worse. That is why GCO advocates for welfare reform that streamlines and simplifies the safety net, while doing away with benefit cliffs that punish people for earning more and climbing the economic ladder.

  1. Community solutions

The solutions don’t stop at policy reform, however. We also need on-the-ground help. That’s what GCO’s BETTER WORK program is all about. Now operating in Gwinnett County and Columbus — but soon spreading to other areas of the state — BETTER WORK is about collaboration between key stakeholders in our communities to help people find work.

The mission of BETTER WORK has never been more important than it is today. As we continue to emerge from the economic fallout of the COVID-19 pandemic, the labor market will keep shifting in significant ways. No matter what that looks like, BETTER WORK’s approach and mission will play an important role.




 

Randy Hicks is the winner of the Thomas A. Roe Award

Randy Hicks is the winner of the Thomas A. Roe Award

Randy Hicks is the winner of the Thomas A. Roe Award

We are excited to announce Randy Hicks is the winner of the Thomas A. Roe Award given by the State Policy Network.

The award was created 30 years ago to pay tribute to leaders who embody innovation, conviction, courage, and solutions in public policy and whose achievements have advanced free-market philosophy. The award was named for the State Policy Network’s founder, who spent much of his life encouraging states to grow organizations who preserve American liberties. 

Georgia Center for Opportunity has been one of the host organizations for the State Policy Network’s Annual Meeting which is being held this week in Atlanta, GA. This is a gathering of organizations working on a state-level to promote realistic solutions to policy. It’s also a time for our team to collaborate with like-minded people and be inspired by new ideas and tactics.



 

Randy Hicks is the winner of the Thomas A. Roe Award!

Randy Hicks is the winner of the Thomas A. Roe Award.

Expert says despite improved federal data, Georgia still faces inflationary pressures

Expert says despite improved federal data, Georgia still faces inflationary pressures

In The News

Expert says despite improved federal data, Georgia still faces inflationary pressures

While the July and August Consumer Price Index numbers show “inflation has stalled,” a Georgia expert warns that “we’re not out of the woods yet.”

On Tuesday, the U.S. Bureau of Labor Statistics announced that the CPI rose 0.1% in August and 8.3% year-over-year.

“There are warning signals, including worldwide drought and continued energy disruptions, that inflation is not yet tamed,” Erik Randolph, the Georgia Center for Opportunity’s (GCO) director of research, said in a statement. “Moreover, Federal Reserve policy is refusing to allow the price level to come back down, meaning that most households will continue to contend with higher prices and lagging income growth.”

Meanwhile, a National Federation of Independent Business survey found optimism has improved, but inflation remains a challenge for small businesses.

Expert says despite improved federal data, Georgia still faces inflationary pressures

Gwinnett government departments will begin presenting 2023 budget requests on Monday

In The News

Gwinnett government departments will begin presenting 2023 budget requests on Monday

Although Brockway is a newbie on the team, he is no stranger to dealing with budget requests. As a member of the Georgia House of Representatives, Brockway served on the House Appropriations committee among other committees.

 

Videos of each department’s business plan presentation will be made available on TVGwinnett, which is the county’s government access channel. On-demand videos of each presentation will also be available on the county’s website, www.gwinnettcounty.com

 

The proposed 2023 county budget that the review team will help craft will be presented to the public in November. County officials are planning to hold a hearing on Dec. 5 and the Board of Commissioners will vote on the budget at the first board meeting in January 2023.

Expert says despite improved federal data, Georgia still faces inflationary pressures

New economic data shows that Georgia is outperforming many states

In The News

New economic data shows that Georgia is outperforming many states

Minnesota saw the best change in unemployment, while the District of Columbia reported the worst change, according to WalletHub. Nationwide, 18 states have recovered all their jobs lost due to the COVID-19 pandemic.

Meanwhile, a Georgia non-profit is crediting Georgia’s response to the COVID-19 pandemic for its economic standing.

“While the White House is taking credit for the job recovery, the credit really belongs to just 18 states — and Georgia is among them,” Erik Randolph, director of research for the Georgia Center for Opportunity, said in a statement. “These states are the only ones who have recovered all their jobs lost to COVID-19 pandemic shutdowns.

Expert says despite improved federal data, Georgia still faces inflationary pressures

Georgia policy groups say Biden plan to forgive student loan debt ‘simply transfers the burden to taxpayers’

In The News

Georgia policy groups say Biden plan to forgive student loan debt ‘simply transfers the burden to taxpayers’

(The Center Square) — President Joe Biden’s plan to forgive some federal student loan debt received a lukewarm reaction from some Georgia groups who say the policy is unfair and won’t help ease inflation.

“We’re disappointed to see yet another policy out of Washington that creates more problems than it solves,” Eric Cochling, the chief program officer and general counsel for the Georgia Center for Opportunity, said. “In addition to contributing to already runaway inflation, this plan from the White House doesn’t actually forgive debt, it simply transfers the burden to taxpayers.”