Labor law developments in September 2023 have significant implications for employers and workers in the United States. The first development is the expected reversion to the Obama-era standard for joint employers, which clarifies the responsibilities of employers in certain employment relationships [2a13eea8].
The second development is the ongoing strike by the United Auto Workers (UAW), where workers are demanding additional paid time off and a raise. This strike highlights the power of collective bargaining and the importance of fair compensation for workers [2a13eea8].
The third development is the Writers Guild of America (WGA) voting to recommend a tentative agreement following a strike. This agreement includes pay increases and improved terms for writers, recognizing their contributions to the entertainment industry [2a13eea8].
The fourth development is the Department of Labor (DOL) issuing a final rule updating regulations under the Davis-Bacon and Related Acts (DBRA) for federal construction contracts. These updates aim to ensure fair wages and working conditions for workers in the construction industry [2a13eea8].
The fifth development is the passing of a new law in New York that prohibits employers from disciplining employees who refuse to attend meetings where the employer expresses opinions on religious or political matters, including unionization. This law protects workers' rights to express their own beliefs and opinions without fear of retaliation [2a13eea8].
Wisconsin achieved several record workforce milestones in 2023, demonstrating the state's strong labor market. In April and May, Wisconsin recorded its lowest unemployment rate of 2.4%, indicating a robust job market [f3d6864f]. Additionally, the state reached over 3 million jobs in November, reflecting sustained economic growth [f3d6864f].
To address the shortage of nurses and healthcare workers, Wisconsin expanded its apprenticeship programs into the healthcare sector. The state enrolled a record 16,000 apprentices and 8,000 youth apprentices in various industries [f3d6864f]. The Wisconsin Department of Workforce Development (DWD) partnered with UW Health to launch the state's first nursing apprenticeship program, providing a pathway for individuals to enter the nursing profession [f3d6864f].
The DWD has also made significant improvements to its infrastructure to better serve job seekers and employers. This includes overhauling its 50-year-old computer system for managing claims and implementing AI-powered bots to streamline processes [f3d6864f].
In addition, the DWD and the Wisconsin Economic Development Corp. have initiated ARPA-funded workforce projects totaling $160 million. These projects focus on job training and placement, as well as addressing barriers such as transportation, housing, and childcare [f3d6864f].
Secretary-designee Amy Pechacek continues to advocate for policies that support the existing workforce and attract new workers. This includes advocating for paid family medical leave and sustained state funding for child care [f3d6864f].
However, recent analysis shows a dramatic shift in the U.S. job market, with Wisconsin and Iowa facing the most significant job losses. According to Wealth of Geeks, the United States saw a reduction of 1.7 million jobs in October 2023 compared to the previous year. Wisconsin experienced an alarming 87,000 fewer jobs available in October 2023, while Iowa encountered a 28.81% decrease, translating to 34,000 fewer job openings. The decline in job opportunities can be attributed to factors such as the rise of online shopping impacting retail stores and high levels of burnout and stress within the healthcare sector. The situation underscores the need for strategic interventions and support for the most affected sectors to mitigate further job losses [b27f8132].
The U.S. is also facing a massive social worker shortage, with economists expecting a shortage of nearly 200,000 social workers by 2030. In Texas, there are currently between 27,000 to 28,000 licensed social workers. Will Francis, the Executive Director of the National Association of Social Workers Texas and Louisiana Chapters, emphasizes the need to invest in social work as a profession and provide support for social workers to make a living and have a career in the field [112cff82].
In Oregon, a racial justice nonprofit called the Urban League of Portland has given its out-of-state employees a choice: return to Oregon or Southwest Washington in 45 days or resign. The nonprofit argues that remote work was always intended to be temporary and that staff need a connection to the local culture and community. This decision has sparked controversy and highlights tensions over the future of remote work. One employee, Markqula Bradley, who relocated to North Carolina for family reasons, is unable to return due to financial constraints. The nonprofit initially granted her permission to work remotely but later demanded her return [0e27cd73].
Federal job training programs, such as the Workforce Innovation and Opportunity Act (WIOA), have been largely ineffective in improving the earnings and long-term prospects of participants. A study by Mathematica Research found that job training had zero effect on earnings after 30 months. The programs have been criticized for being designed with potential employers in mind, rather than the needs and interests of employees. Many 'in-demand' jobs that receive federal funding are low-wage, offer little room for advancement, and have poor working conditions. The most common WIOA training program is truck driving, which has high turnover due to brutal working conditions. Training programs for certified nursing aides often lead to low-wage positions and are used as a cheaper alternative to hiring actual nurses. Congress is considering updates to federal job-training laws that would further invest in low-wage, high-turnover jobs. Labor unions are advocating for reforms that prioritize training for high-quality jobs with living wages and benefits [cdab4f58].
A recent report from the American Enterprise Institute published on October 10, 2024, highlights that the U.S. workforce is undergoing significant changes due to demographic shifts, technological advancements, and evolving skill requirements. Despite substantial spending on workforce programs, the report indicates a lack of robust evidence guiding policy reforms, with successful sector-based training programs remaining exceptions rather than the norm. Under-funding is identified as a critical issue, with the U.S. lagging in spending on active labor market programs. Recommendations from the report include increased funding, streamlined eligibility, and flexibility for states to innovate in workforce development. Notably, a bipartisan workforce reauthorization bill recently passed the U.S. House, allowing states to experiment with new workforce solutions [68f0bf37].
In a related development, Eduardo Levy Yeyati has returned to the Brookings Institution as a senior fellow, leading the Workforce of the Future initiative. His focus includes economic development, reskilling, and immigrant inclusion, particularly in light of the impact of generative AI on labor markets. Yeyati emphasizes the need for training that complements AI and aims to assist low-wage workers in developing countries. He warns of potential job reductions but also highlights opportunities for better job quality, stressing the importance of adaptive education and active labor market policies to address challenges in labor inclusion across both developed and developing economies [bfa0cea0].
These workforce milestones, initiatives in Wisconsin, and the nonprofit controversy in Oregon demonstrate the ongoing challenges and changes in the labor market, as well as the need for equitable and flexible work policies [f3d6864f] [0e27cd73] [cdab4f58].