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The 2% inflation target is key to the Federal Reserve's vision for stable prices in the U.S. economy, according to the Federal Reserve Bank of St. Louis. But, "the 2% inflation target, it's relatively arbitrary," Josh Bivens, director of research at the Economic Policy Institute, told CNBC. "We led the way in inflation targeting," Arthur Grimes, professor of wellbeing and public policy at Victoria University, told CNBC. Canada announced its inflation target in 1991, and the United Kingdom followed suit in 1992. Then, Sweden and Finland declared inflation targets in 1993, according to the Organization for Economic Cooperation and Development.

☆ Minimum wages are going up, but typical workers still don't make enough to get by in any U.S. state
▼ + stars: | 2023-02-16 | by ( Gili Malinsky | ) www.cnbc.com time to read: +5 min

"So the longer the gap between federal minimum wage increases, the more likely some states went ahead and raised their own state-level minimum." CNBC Make It compared state minimum wages with the average living wage for one adult with no dependents according to MIT's Living Wage Calculator, and found that no state offers a minimum wage that is in line with the living wage. Those setting minimum wages are 'probably using house rents from 2012'When it comes to how states calculate their minimum wages, many use a cost of living index. In Georgia, the minimum wage for employers that don't fall under the Fair Labor Standards Act is $5.15. "And that takes the form of not having a minimum wage or just following the federal guidance or having extremely low sub minimum wages."

☆ An undocumented worker was able to pay rent because he got $2,000 as part of a UBI-like program that will now be permanent for Coloradans who lose their jobs
▼ + stars: | 2023-02-14 | by ( Jason Lalljee | ) www.businessinsider.com time to read: +5 min

Leo Alvarez received $2,000 from a pandemic-era fund for undocumented workers who lost wages in 2020. The fund has led to a permanent unemployment assistance program for undocumented workers in Denver. The pandemic exacerbated inequalities for undocumented workers that advocates want states to address. In New York for instance, advocates want the state to make its fund for undocumented workers permanent. "This is not something that's a luxury," Jessica Maxwell of the Workers Center of Central New York told Spectrum News last month.

☆ Who is Jared Bernstein, new chief White House economist?
▼ + stars: | 2023-02-14 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

Americans remain unimpressed by Biden's economic performance, with prices of many basic goods and mortgage rates high. Bernstein, who played the double bass in jazz bands and worked as a social worker in New York City, has long been a voice for progressive economic policy. He served in the Labor Department under former President Bill Clinton and then as Biden's chief economist when he was vice president. At the Economic Policy Institute, a Washington think tank, he wrote and testified to Congress extensively on the shrinking U.S. middle class, a bedrock Biden theme. U.S. business groups worry that Bernstein's labor ties and anti-free trade stance could hamper efforts to bolster trade ties with other countries.

☆ Retailers are hoarding labor even as tech layoffs mount
▼ + stars: | 2023-02-14 | by ( Avery Hartmans | Dominick Reuter | ) www.businessinsider.com time to read: +6 min

Some retailers are bucking the trend of layoffs and holding on to workers. But on the store level, retailers are holding on tight to their workers, even seasonal workers who they typically would have dismissed by now, in a practice known as "labor hoarding." "The concept of labor hoarding is alive and well," Kenneth Kim, a senior economist at KPMG, told Insider. Anna Moneymaker/Getty ImagesThose layoffs don't seem to be an emerging trend in the retail sector, Kim from KPMG said. And while there were 417,000 job cuts in January, the official models were accounting for a lot more, since that's when many retailers typically begin laying off seasonal workers.

2 role vacant just as the central bank approaches a decision about when to stop raising interest rates. Brainard's arguments may not have been relevant to the decisions the Fed faces in the next few weeks. Heidi Shierholz, president of the labor-affiliated Economic Policy Institute, said it was "unbelievably important" that Biden find someone to fill Brainard's role. Administration officials gave no immediate sense of how soon Biden may name a new Fed vice chair, though outside analysts and commentators were already putting names in circulation from what's considered a deep bench of economists affiliated with Biden's Democratic party. The vice chair plays a particularly important role, typically reserved for somebody with a PhD in economics who can speak with technical authority about Fed policy and decisions.

☆ Black women are gaining ground in the labor market but still face unique barriers
▼ + stars: | 2023-02-03 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

January's drop in Black unemployment was propelled by gains made by Black women, whose unemployment rate excluding teenagers dropped to 4.7% in January from 5.5% in December. The last time the Black unemployment rate was below 5.5% was in September 2019, while Black women last had a sub-5% unemployment rate in November 2021. She pointed to the discrimination Black people face in hiring and the increased likelihood of layoffs Black workers experience as two examples. While Black men saw a 0.2 percentage point gain between December and January, Black women added 1.1 percentage points. She said the gains in employment could be attributed at least in part to the tightness of the overall labor market.

☆ Why Black workers are a canary in the coal mine for the U.S. economy
▼ + stars: | 2023-02-03 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +1 min

Watching labor data on Black workers in the U.S. can offer helpful clues about the strength – or weakness – of the economy, and even signal economic changes before they show up in the headline print. That's because Black workers are more able to find employment in strong labor markets and can be the first to lose their jobs when the economy weakens. "Black workers are the canary in the coal mine – are you actually hiring people?" "The Black unemployment rate continues to be the highest, indicating that Black workers are facing more challenges, having a more difficult time securing employment," said Valerie Wilson, director of the Economic Policy Institute's program on race, ethnicity and the economy. "We know that for every one percentage-point change in the national unemployment rate, we typically get close to a two percentage-point change in the Black unemployment rate," she said.

☆ U.S. unemployment just hit its lowest rate since 1969—economists aren't optimistic it'll last
▼ + stars: | 2023-02-03 | by ( Gili Malinsky | ) www.cnbc.com time to read: +1 min

The U.S. labor market started 2023 on a high note. The economy added 517,000 jobs, according to the Labor Department, far exceeding the 187,000 jobs the Dow Jones had anticipated. Among the Bureau of Labor Statistics' findings for the month was also the market's historically low unemployment rate of 3.4% or 5.7 million people. Though the unemployment rate is a key measure in how the labor market's doing, it doesn't necessarily give the full picture of who's not working. The unemployment rate measures the number of people who are out of a job and are actively looking.

☆ If you're a gig worker, your boss might be using a technicality to underpay you
▼ + stars: | 2023-01-26 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +4 min

Many workers are classified by employers as independent contractors, rather than employees. The Biden administration has proposed a rule making it easier for gig workers to be counted as employees. NELP finds that 10% to 30% of employers — and potentially more — misclassify workers as independent contractors, "which indicates that several million workers nationally may be misclassified." Truck drivers misclassified as independent contractors may lose between $11,076 and $18,053, according to EPI's estimates. The Biden administration is taking aim at misclassification, hoping to crack down on it and offer an easier pathway for independent contractors to be considered employees.

☆ European Central Bank to raise deposit rate to 3.25% by mid-year - Reuters poll
▼ + stars: | 2023-01-23 | by ( Jonathan Cable | ) www.reuters.com time to read: +3 min

ECB President Christine Lagarde and her Governing Council will take the deposit rate to 2.50% on Feb. 2, said 55 of 59 economists in the Jan. 13-20 poll. The central bank will then add 25 basis points next quarter before pausing, giving a terminal rate in the current cycle of 3.25%, its highest since late 2008. In December's poll, the rate was put at 2.50% at end-March and was seen topping out at 2.75%. Reuters Poll - ECB deposit rate outlookAsked how the risks were skewed to their terminal deposit rate forecasts, over two-thirds of respondents, 23 of 33, said it was more likely it ends higher rather than lower than they currently expect. The refinancing rate was expected to rise 50 basis points to 3.00% next week and reach a peak of 3.50% in March.

☆ Union membership dropped yet again in 2022 to the lowest rate on record, showing that workers still face an uphill battle in organizing
▼ + stars: | 2023-01-19 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +4 min

The union membership rate fell in 2022, according to the Bureau of Labor Statistics. Union membership has been mostly declining for decades, even though union workers tend to make more money. At the same time, the union membership rate, which tracks the percentage of workers in a union, fell to 10.1% — the lowest rate on record, per BLS. The union membership rate of 10.1% in 2022 was just half the 20.1% in 1983, the first year BLS compiled comparable data. Even so, the union membership rate for retail workers is just 4.3%, down from 4.4% in 2021.

☆ Women living in states with abortion bans suffer greater economic insecurity
▼ + stars: | 2023-01-18 | by ( Vanessa Yurkevich | ) edition.cnn.com time to read: +5 min

New York CNN —Women living in states that restrict or ban abortion face greater economic insecurity than those living in states where they have access, new research finds. “In many of these states, especially the states which have banned abortion, many of the women who are facing economic challenges already are also women of color,” she said. Raising the minimum wage is a powerful tool that has been known to have significant impact on closing racial income gaps. But nearly two-thirds of abortion restrictive states have a $7.25 minimum wage, the lowest legal hourly wage for most workers in the United States. The average minimum wage across the 26 states is $8.17, lower than the average $11.92 for states with no restrictions.

☆ Rolling back laws that set minimum wages for construction workers meant pay shrunk, jobs got more dangerous, and workers had to rely more on public assistance
▼ + stars: | 2023-01-16 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

A new study looks at the impact of rolling back prevailing wage laws on wages and workers. Prevailing wage laws set pay standards for government contract workers, particularly construction workers. Researchers Frank Manzo, Robert Bruno, and Larissa Petrucci examine the impact of repealing prevailing wage laws — laws that essentially set minimum wages for construction workers on government contracts. Historically, prevailing wage laws have helped plug labor shortages, and contractors could have trouble competing with higher-paying competitors across the country. Indiana, West Virginia, Kentucky, Arkansas, Wisconsin, and Michigan all repealed their prevailing wage laws between 2015 and 2018.

☆ Billionaires are collectively adding $2.7 billion to their fortunes daily — and their growing share of wealth shows trickle-down doesn't work
▼ + stars: | 2023-01-16 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +5 min

A new report from Oxfam looks at how much wealth billionaires have accumulated. The report finds billionaires are collectively adding $2.7 billion to their fortunes daily, as inflation eats up workers' wages. As top tax rates fell, billionaire wealth grew — and Oxfam says wealth taxes are one solution. That's based on the difference between billionaires' wealth from March 18, 2020, adjusted for inflation, and November 30, 2022. However, while wealth taxes are popular, they're unlikely to ever advance in the US.

☆ U.S. unemployment rate falls in December, but rises for Black women, Hispanic men
▼ + stars: | 2023-01-06 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Spencer Platt | Getty ImagesThe U.S. unemployment rate declined overall in December, but rose for Black women and Hispanic men, according to the latest nonfarm payrolls report. Black women saw unemployment increased to 5.5% last month, up 0.3 percentage points from 5.2% in November, data from the Labor Department showed Friday. Overall, Black employment held steady at 5.7%, while the unemployment rate for Black men actually declined to 5.1% from 5.4% last month. The overall unemployment rate ticked up to 4.1% from 4.0%. And it's really disaffecting Black women and Latinx men," Holder added.

☆ Ditching noncompete clauses would be a win for workers' rights and employees in low-wage jobs
▼ + stars: | 2023-01-06 | by ( Marguerite Ward | ) www.businessinsider.com time to read: +5 min

Noncompetes prevent some workers in low-wage jobs from leaving for better opportunities. If the FTC succeeds in banning noncompete clauses, it can be an important win for low-wage workers and a pivotal moment in the push for workplace equity, advocates for the change say. Annabelle Chih/Getty ImagesCritics point out that many workers subject to noncompete language aren't high-profile executives who've amassed trade secrets — they're average workers. In 2015, The Verge reported on Amazon's use of noncompete agreements for warehouse workers. "Noncompete agreements help artificially stifle competition in the labor market, allowing employers to keep wages low by limiting workers' employment options," Constant wrote.

☆ FTC proposes to ban noncompete clauses, says move will strengthen workers' hands.
▼ + stars: | 2023-01-05 | by ( Eli M. Rosenberg | Eli Rosenberg Is An Investigative Tech Reporter For Nbc News. | ) www.nbcnews.com time to read: +2 min

The Federal Trade Commission proposed a new rule Thursday to ban the use of noncompete clauses in worker contracts, a change that would significantly boost the negotiating power of employees. “The freedom to change jobs is core to economic liberty and to a competitive, thriving economy,” FTC Chairwoman Lina M. Khan said in a statement. According to a 2019 study by the left-leaning Economic Policy Institute, somewhere between a quarter to about a half of all workers are subject to noncompete clauses. The FTC said that 1 out of 5 workers are bound by noncompete clauses. Wilson said she believed the rule was outside the FTC’s scope and would be vulnerable to legal challenges.

☆ Federal Trade Commission proposes banning noncompetes for workers
▼ + stars: | 2023-01-05 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +2 min

New York CNN —The Federal Trade Commission on Thursday said it is proposing a rule to ban employers from imposing noncompete agreements on workers and to rescind all existing noncompete agreements. “Research shows that employers’ use of noncompetes to restrict workers’ mobility significantly suppresses workers’ wages — even for those not subject to noncompetes, or subject to noncompetes that are unenforceable under state law,” said Elizabeth Wilkins, Director of the Office of Policy Planning. “The proposed rule would ensure that employers can’t exploit their outsized bargaining power to limit workers’ opportunities and stifle competition.”The proposed rule was cheered by the liberal-leaning Economic Policy Institute. The only source of power nonunionized workers have vis-à-vis their employers is their ability to quit and take a job elsewhere. The proposed rule will be open for public comment for 60 days after which the FTC will review the comments and possibly amend the rule before issuing a final version.

☆ The next recession might hit the wealthy more — and a 'richcession' could be good news for low-wage workers
▼ + stars: | 2023-01-05 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +5 min

The next recession could be a "richcession," according to the Wall Street Journal. A K-shaped recovery — where high-earning Americans saw jobs and wages grow, while the converse happened to lower-earners — began to take form during the recession. For the bottom 50%, real wealth growth from February 2020 to September 2022 is 226.6%. To be sure, although the recession on the horizon may be considered a richcession, that doesn't mean it won't affect lower-income Americans. "Lower income, lower wage, lower education workers, Black workers, workers of color" tend to see larger spikes in unemployment during downturns, according to Bunker.

☆ The FTC wants to ban companies from telling their employees they can't work for competitors — and says it'll help workers make $300 billion more a year
▼ + stars: | 2023-01-05 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

The FTC wants to ban noncompete agreements, which stop workers from moving to competitors or starting their own similar businesses. Under the FTC's proposed rule, employers wouldn't be able to impose a noncompete, and past ones would be rescinded. FTC Chair Lina Khan said that noncompetes undermine competition and competitive conditions. Under a new proposed rule, the FTC would ban employers from saddling workers with noncompete agreements that prohibit them from working at competitors, or starting similar businesses. In some cases, workers can't start their own businesses similar to the ones they're working in.

☆ Over 8 million workers just got a raise. This map shows the states that raised their minimum wages.
▼ + stars: | 2023-01-03 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +6 min

Georgia and Wyoming have state minimum wages below the federal minimum wage. If the federal minimum wage was higher than the state's minimum wage, we noted the federal amount as the last minimum wage paid to employees in the state. The following map shows what year the minimum wage increased and the current minimum wage in every state:Over half the states have minimum wages above the federal minimum wage of $7.25. California, which has been raising its minimum wage annually over the past few years, saw its minimum wage increase to $15.50 on January 1, 2023. The effects of a minimum wage increaseSome economists and critics of a minimum wage increase argue that a raise would negatively impact employment, but that may not be the case.

☆ These states are raising their minimum wages in 2023. Chart shows where workers can expect higher pay
▼ + stars: | 2023-01-01 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Meanwhile, 23 states and Washington, D.C., according to the Economic Policy Institute, will implement higher minimum wages on Jan. 1. States that are not seeing minimum wage hikes in 2023 still tie their base pay to the $7.25 per hour federal rate. Workers who depend on the minimum wage are also much more likely to be people of color and living in poverty. Raising minimum wages can also help increase consumer demand and put money back into local economies, said Holly Sklar, CEO of Business for a Fair Minimum Wage, a national network of business organizations, owners and executives that support higher minimum wages. "Putting needed raises in minimum wage workers' pockets [is] really the most efficient way you can boost the economy," Sklar said.

☆ These are the states raising minimum wage in 2023 — see the full list and adjusted rates
▼ + stars: | 2022-12-31 | by ( Bethany Biron | ) www.businessinsider.com time to read: +1 min

A total of 23 states are hiking minimum wages this year, according to the Economic Policy Institute. See the full list of states and the adjusted rates, below. With the help of activist efforts and legislators, states and cities have been working independently to increase rates as the federal minimum wage stagnates at $7.25 — an amount that hasn't risen in 13 years. While many of the adjusted rates will be effective starting Jan. 1, others come into effect later, according to a report from the National Employment Law Project. Here's the full list of states increasing minimum wage and the new rates coming in 2023, according to NELP data:

☆ New Year’s pay boost: These states are raising their minimum wage
▼ + stars: | 2022-12-31 | by ( Alicia Wallace | ) edition.cnn.com time to read: +5 min

Minneapolis CNN —The current period of high inflation that has significantly impacted the US economy will also influence a New Year’s tradition: The annual state minimum wage increases. By January 1, hourly minimum wages in 23 states will rise as part of previously scheduled efforts to reach $15 an hour or to account for cost-of-living changes. Additionally, nearly 30 cities and counties across the US will increase their minimum wage, according to the EPI, a left-leaning think tank. “The fact that there’s high inflation really just underscores how necessary these minimum wage increases are for workers,” said Sebastian Martinez Hickey, a research assistant at the EPI. “That also means that prices aren’t going to go up at [places like] restaurants.”The federal minimum wage of $7.25 per hour hasn’t budged since 2009, and 20 states have a minimum wage either equal to or below the federal level, making $7.25 their default baseline.

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