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☆ Over 8 million workers will get a raise on New Year's as states step in to raise their minimum wages
▼ + stars: | 2022-12-26 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

8.4 million workers will get a raise on New Year's, according to the Economic Policy Institute. 23 states are set to raise their minimum wages on January 1, due to inflation, legislation, and ballot measures. Many states have raised local minimum wages past the federal minimum of $7.25 an hour. States and cities stepping in to raise their minimum wages is not a new phenomenon. A Democratic-controlled House and Senate failed to pass a $15 minimum wage in 2021, and it's been relatively silent ever since.

☆ The lowest-earning Americans and the middle class got a pay cut in 2021, while the richest saw the biggest wage growth
▼ + stars: | 2022-12-21 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +5 min

The bottom 90% of workers actually saw their wages decline in 2021, as the top 1% saw average wages grow. A new report from the left-leaning Economic Policy Institute looks at wage growth in 2021, using annual earnings from the Social Security Administration. They found that the top 1% saw average real wages grow 9.4% from 2020 to 2021, while the bottom 90% saw wages decline ever so slightly by 0.2%. "The top 1% now amasses a record share of total earnings, while the bottom 90% share of earnings has hit a historic low." The bottom 90% saw a much smaller increase of 28.7% based on averages in 2021 dollars — from $28,415 in 1979 to $36,571 in 2021.

☆ How much money Americans say they need to make to feel rich
▼ + stars: | 2022-12-12 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

When asked how much money they'd need to earn annually in order to feel rich, the majority of Americans said at least $200,000, according to the recent CNBC Make It: Your Money survey, conducted in partnership with Momentive . Consumers broadly agree across age groups and racial demographics on the salary necessary to feel rich. Similarly, 34% of those earning less than $100,000 say earning between $100,000 and $149,000 would make them feel rich. Experience may give high-earners a better idea of how much has previously made them feel rich. Someone currently earning $200,000 but not managing their money well might not feel well-off, for example.

Here's how to file for unemployment insurance benefits, whether you're laid off, furloughed, or your hours are severely reduced. Here's how to file for unemployment insurance benefits, whether you're laid off, furloughed, or have had your hours severely reduced. Fill out an application through your state's unemployment websiteYou should apply for unemployment insurance as soon as you're no longer working. Depending on the state, unemployment insurance claims can be filed in person, on the phone, or online. "Start with your state's unemployment insurance benefits site.

☆ Your job is probably safe, even in a recession. Employees are going to have the upper hand for years.
▼ + stars: | 2022-12-04 | by ( Jacob Zinkula | Madison Hoff | ) www.businessinsider.com time to read: +7 min

Declining immigration and an aging population could cause the labor shortage to continue in the years ahead. And the labor shortage may only get worse in the years ahead. Those slowdowns have already contributed to the current labor shortage, and will continue to do so for years to come. "But it's happening very slowly, and I don't think it explains what is particularly going on in the labor market right now." A steady decline in the US' working age population might not only create problems for businesses looking to grow.

☆ A 10-year fight to raise the minimum wage has slashed the Black-White wealth gap in half in some states. The South still has a long way to go.
▼ + stars: | 2022-11-29 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +4 min

The federal minimum wage has been stuck at $7.25 for 13 years, despite attempts to raise it. The National Employment Law Project analyzed the impact of local hikes to the minimum wage since 2012. That year marked the first action by Fight for 15, a worker movement calling for a $15 minimum wage. But those disparities among workers in states with a higher minimum wage versus those in states still adhering to the federal minimum wage means that workers in the South are left behind, according to Lathrop. In Washington, DC the minimum wage is $16.10 an hour, but five states — Alabama, Louisiana, Mississippi, South Carolina and Tennessee — have no minimum wage, defaulting to the federal minimum.

☆ Bosses are 'done with the COVID excuse' and it means calling out sick is getting harder
▼ + stars: | 2022-11-15 | by ( Jason Lalljee | ) www.businessinsider.com time to read: +3 min

This year, about 630,000 more Americans per month are calling out sick for a week or more than pre-pandemic. Even though an elevated number of workers are still getting sick, employers are losing their patience. One union told Insider that the disparity highlights the need for guaranteed sick leave. "UFCW fights hard to ensure guaranteed sick leave is included in our contracts so employers can't simply cut back on leave because they're 'tired of excuses.'" When it comes to low-wage employees, over 60% don't have access to sick leave, according to a September study from the Economic Policy Institute.

☆ DC and Nebraska just voted to give minimum wage workers a raise. This map shows how much all 50 states pay.
▼ + stars: | 2022-11-09 | by ( Jason Lalljee | Madison Hoff | ) www.businessinsider.com time to read: +4 min

DC voted to eliminate tipped wages in the state, raising the minimum wage floor from $5.35 to $16.10 for tipped workers. The minimum wage will increase gradually, at a rate of $1.50 per year for the next four years. And in DC, tipped workers, defined under federal law as anyone who regularly receives at least $30 per month in tips, are seeing a victory. Other states have moved to increase their minimum wages in the past few months, including three states that raised their state minimum wages on July 1 — Connecticut, Nevada, and Oregon. Critics of a minimum wage increase argue that a raise would negatively impact employment, but that may not be the case.

☆ Voters approve higher minimum wage in Nebraska and Washington, DC. Votes still being tallied in Nevada
▼ + stars: | 2022-11-09 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Activists demonstrate in support of a $15-per-hour minimum wage and tips for restaurant workers in Washington, D.C. on Feb. 8, 2022. Voters in both Nebraska and the District of Columbia on Tuesday approved higher minimum wages, while the results in a similar Nevada ballot measure are still pending. And Nebraska voters supported Initiative 433, which increases the state's minimum wage to $15 per hour, up from $9 per hour, by 2026. The minimum wage will adjust annually based on inflation after 2026. But if approved, the minimum wage would rise to $12 per hour by 2024, up from $9.50 or $10.50 per hour, depending on health insurance benefits.

Democrats cite threats to Social Security, MedicareAs Election Day approaches, Democrats are telling voters that Social Security and Medicare may be at risk if Republicans take control of Congress. Scott has called for reauthorizing Social Security and Medicare every five years in Congress, while Johnson suggests revisiting the programs annually. Minimum wage hikes on the horizonVoters will decide this month whether to make certain raises to the minimum wage in Nebraska, Nevada and Washington, D.C. In Nebraska, the measure would ratchet up the minimum wage to $15 an hour by 2026, up from its current $9. The current minimum wage is $9.50 an hour or $10.50 an hour, depending on if a worker is offered health insurance.

☆ The unemployment rate for Black men fell in October, but so did labor force participation
▼ + stars: | 2022-11-04 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +2 min

Joe Raedle | Getty ImagesThe unemployment rate for Black men ticked down in October while it rose for most other groups, but that may be because workers are dropping out of the labor force. For Black men, unemployment fell to 5.3% from 5.8% a month earlier on a seasonally adjusted basis. Though overall there is strength in the labor market, "this is not the tight labor market where people can just walk in and get a job no matter who they are." Overall Black unemployment ticked up led by Black women. In October, the unemployment rate for Black women jumped to 5.8% from 5.4% in September.

☆ Rents are starting to drop, but the way we measure inflation means that we could still end up in a nasty recession next year
▼ + stars: | 2022-10-30 | by ( Jacob Zinkula | Alcynna Lloyd | ) www.businessinsider.com time to read: +5 min

Rent prices are falling across the country. It could be a lifesaver for not only Americans' bank accounts but also the entire US economy as a recession looms. The issue is that it takes time for lower rent prices to filter into the consumer-price index and other widely watched measures of inflation. "The faster those things show up in consumer-price inflation, the faster the inflation steps down, the sooner the Fed will back off." Sahm said the Fed was well aware of the way rent inflation is measured, adding that it "knows this data better than anyone in the world."

☆ Here’s how venture capital is helping to lift the next generation of Latinos in finance
▼ + stars: | 2022-10-21 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +4 min

A group of Latino-led and focused venture capital firms is looking to change that. Similarly, only 2% of venture capital professionals and partner-level professionals at institutional firms are Latino, a study from LatinxVC discovered. "We're trying to increase [Latino] venture capitalists within established venture organizations," said Mariela Salas, the executive director of LatinxVC. Latino-focused venture capitalThere are several Latino-focused venture capital firms that are working on at least one piece of the puzzle: investing in their communities. "We give the opportunity to first-time accredited investors, people of color and women to get access to venture capital," Mendoza said.

☆ Here’s what a new Biden administration labor proposal would mean for independent contractors
▼ + stars: | 2022-10-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Rudi_suardi | E+ | Getty ImagesThe Biden administration will soon issue a rule that may make it easier for workers to be considered "employees" instead of "independent contractors." Misclassification of workers as independent contractors — also known as freelancers or the self-employed — instead of employees is happening across many industries, like construction, health care, restaurants, retail and transportation, Labor Department officials said Tuesday. Employers may benefit financially by classifying their workforce as contractors instead of employees. These companies often classify gig workers as independent contractors. Federal action would especially be a boon to "low-wage, vulnerable workers," Labor Department officials said.

☆ The US is adding millionaires at the fastest rate this century while the 'quiet fleecing' of American workers' pay continues
▼ + stars: | 2022-09-22 | by ( Jacob Zinkula | Madison Hoff | ) www.businessinsider.com time to read: +5 min

It's a signal of the "quiet fleecing" of the American worker that's been keeping wages down for decades. "Those trends in hourly wage growth have profound consequences for American living standards and how well people in this country are able to make ends meet. "Quiet fleecing" means lower wages for Americans while the millionaires thriveFor workers, "quiet fleecing" has resulted in decades of wages that haven't kept up with the rising costs of healthcare, housing, and food. A recession could make "quiet fleecing" worseThis inequality could be among the reasons some Americans are "quiet quitting," "acting their wage," or joining the Great Resignation. The consequences could be inflicting an economic downturn of an unnecessary scale, hurting working workers, and ultimately making "quiet fleecing" and inequality worse.

☆ Prices are set to fall for homes, cars, and furniture. It's a sign the Fed may not need to risk a recession that punishes job seekers.
▼ + stars: | 2022-09-22 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +6 min

Some economists say that means the Federal Reserve doesn't need to squash jobs to cool inflation. Cooling prices might provide less reason for the Federal Reserve to continue its bold campaign to raise interest rates and slow the economy. It did just that on Wednesday, increasing interest rates by another 0.75% to make borrowing more expensive and squash demand. "Will raising interest rates lead to more oil, lower prices of oil, more food, lower prices of food?" "The real worry in my mind is," he added, "will they increase interest rates too high, too fast, too far?"

☆ 'Quiet fleecing' is why you're getting paid less and everyone's talking about quiet quitting and the Great Resignation
▼ + stars: | 2022-09-20 | by ( Jacob Zinkula | Madison Hoff | ) www.businessinsider.com time to read: +6 min

Since the 1970s, US wage growth has stalled, with the top 1% seeing most of the gains. It's resulted in a "quiet fleecing" of the American worker, according to data analyzed by the Economic Policy Institute. Coined by the Economic Policy Institute, "quiet fleecing" describes decades of stagnant wage growth in the US despite rising productivity and costs of living. In theory, workers' wages rise in tandem with their productivity, or the output they provide to a company. It could be why more workers are getting vocal about quiet quitting, "acting their wage," or joining the Great Resignation.

On paper, the average hourly wage Americans have earned has steadily climbed over the past year, from $30.76 to $32.36. According to the U.S. Bureau of Labor Statistics, Americans have effectively experienced a 12-month pay cut of $0.31 per hour. Combined with a decrease in hours worked, Americans' inflation adjusted average weekly pay has decreased by only $13.20 from one year ago. The BLS released data Tuesday showing that monthly inflation had picked up 0.1%, while annualized inflation had climbed 8.3%. "Clearly the high inflation is undermining Americans’ purchasing power," Mark Zandi, chief economist at Moody's, told NBC News.

☆ Democrats want to bring back Biden's child tax credit soon — and a new report shows it was a huge success in fighting child poverty
▼ + stars: | 2022-09-14 | by ( Joseph Zeballos-Roig | Madison Hoff | Jason Lalljee | ) www.businessinsider.com time to read: +5 min

The expanded child tax credit helped slash child poverty by roughly half, and some Dems want to bring it back. "This was a historic achievement to reduce child poverty by a record amount driven by the expansion of the child tax credit." He added that given the expanded child tax credit has expired, "the challenge now is for the Congress to extend it." Some Democrats want to bring back the expanded child tax creditThe enhanced child tax credit provided up to $300 monthly checks per kid to parents for six months. Without measures like the expanded child tax credit, poverty likely increased in 2022.

☆ There's a surprising upside to inflation: Workers in 8 states will get a raise
▼ + stars: | 2022-09-13 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +4 min

In eight states, the minimum wage rises to track year-over-year inflation from August to August. But there's one silver lining of inflation still lingering high in August: Minimum-wage workers in a handful of states are set to get raises. "Worker wages are in fact declining in real value, and so indexing the minimum wage to inflation helps alleviate the challenges posed by inflation." The minimum wage will remain $7.25 in many states, thoughThe inflation-linked increases will also only widen the chasm in pay for minimum wage workers in states that haven't touched their minimum wage in years. A recent study found that increasing the minimum wage to $15 an hour would lift 7.6 million people out of poverty.

☆ The U.S. unemployment rate rose in August, and Black workers' labor force participation declined
▼ + stars: | 2022-09-02 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Jeenah Moon | Bloomberg | Getty ImagesThe August jobs report showed the U.S. unemployment rate rise across the board. Meanwhile, Black workers marked the only demographic to see their labor force participation fall. The unemployment rate rose 0.2 percentage point to 3.7% in August, according to data released Friday by the U.S. Bureau of Labor Statistics. However, Black workers marked the only group that saw labor force participation decline, while their employment-population ratio, which measures what percentage of the population holds a job, also fell. "What's happened is the queue's just gotten longer so the discouraged worker effect is much more acute for Black workers."

☆ Economic policy is full of false assumptions that benefit the wealthy and undercut average Americans — just look at how CEOs are paid
▼ + stars: | 2022-03-19 | by ( Paul Constant | ) www.businessinsider.com time to read: +6 min

Recently, he spoke with author Tom Bergin about the problem with CEOs acting like shareholders. A 2021 study found that typical CEO compensation has risen 1,322% since 1978, while worker compensation over that same time only increased by 18%. The problem with CEOs behaving as shareholdersThe National Bureau of Economic Research reports that in 1980, stock options were rarely included in CEO compensation. When they were a part of the compensation package, average stock options rarely made up even 20% of the total direct pay for CEOs. But today, according to Lawrence Mischel from the Economic Policy Institute, "Stock-related compensation comprises around 85% of CEO compensation."

☆ In many states, workers still earn only $7.25 an hour. If we want to fix the 'labor shortage,' it should start with raising wages.
▼ + stars: | 2022-01-08 | by ( Paul Constant | ) www.businessinsider.com time to read: +5 min

Amid the ongoing labor crisis, Constant says raising the minimum wage could be a key solution. Raising wages has proven good for workers and business, yet many states are stuck at the $7.25 federal minimum. Last week, the minimum wage in Seattle reached $17.27 per hour, while the minimum wage in Washington state increased to $14.49, and none of those threats have come true. But despite this progress, the federal minimum wage is still stalled at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees. The Economic Policy Institute recently found that the $7.25 federal minimum wage is worth 21% less today than it was worth when established in 2009.

☆ More Americans are shopping at discount chains. Here's how Dollar General keeps its prices below $10.
▼ + stars: | 2021-07-12 | by ( Mary Hanbury | ) www.businessinsider.com time to read: +6 min

Dollar General sells items at 20% to 40% less than full-price retailers; most items cost below $10. Dollar General, one of the best-known discount chains, is growing rapidly and now has more than 19,000 stores across the US. According to a survey done by the nonprofit think tank, Economic Policy Institute, 92% of Dollar General workers earn less than $15 an hour. It has a limited assortment of groceries, though this is on the riseThe fresh food section at a Dollar General store. David Allio/Icon Sportswire via Getty ImagesDollar General is constantly looking at where it can cut costs in its supply chain.

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