(CNSNews.com) – A record 94,031,000 Americans were not in the American labor force last month — 261,000 more than July — and the labor force participation rate stayed stuck at 62.6 percent, a 38-year low, for a third straight month in August, the Labor Department reported on Friday, as the nation heads into the Labor Day weekend.
The number of Americans not in the labor force has continued to rise, partly because of retiring baby-boomers and fewer workers entering the workforce.
In August, according to BLS, the nation’s civilian noninstitutional population, consisting of all people 16 or older who were not in the military or an institution, reached 251,096,000. Of those, 157,065,000 participated in the labor force by either holding a job or actively seeking one.
The 157,065,000 who participated in the labor force equaled only 62.6 percent of the 251,096,000 civilian noninstitutional population — the same as it was in July and June. Not since October 1977, when the participation rate dropped to 62.4, has the percentage been this low.
By AIMEE PICCHI MONEYWATCH September 1, 2015, 5:15 AM
By one dismal measure, America is joining the likes of Third World countries.
The number of U.S. residents who are struggling to survive on just $2 a day has more than doubled since 1996, placing 1.5 million households and 3 million children in this desperate economic situation. That’s according to “$2.00 a Day: Living on Almost Nothing in America,” a book from publisher Houghton Mifflin Harcourt that will be released on Sept. 1.
The measure of poverty isn’t arbitrary — it’s the threshold the World Bank uses to measure global poverty in the developed world. While it may be the norm to see families in developing countries such as Bangladesh and Ethiopia struggle to survive on such meager income, the growing ranks of America’s ultrapoor may be shocking, given that the U.S. is considered one of the most developed capitalist countries in the world.
“Most of us would say we would have trouble understanding how families in the county as rich as ours could live on so little,” said author Kathryn Edin, who spoke on a conference call to discuss the book, which she wrote with Luke Shaefer. Edin is the Bloomberg Distinguished Professor of Sociology at Johns Hopkins University. “These families, contrary to what many would expect, are workers, and their slide into poverty is a failure of the labor market and our safety net, as well as their own personal circumstances.”
To be sure, the labor market has been rocky for many Americans, not just the poorest. But changes in how employers deal with their low-wage workers have hit many of these poor Americans especially hard, such as the rise of on-call scheduling, which leaves some parents scrambling for hours and dealing with unpredictable pay.
Retailers such as Walmart (WMT) and fast-food companies increasingly are using sophisticated scheduling software that allows them to tinker with work schedules at the last minute, depending on their stores’ needs. That reduces costs for the employer, but it can make life difficult for employees, especially those with children and dependents.
If there’s one phrase that can inspire patriotism, it’s the American Dream. That concept was defined by James Truslow Adams as being the “dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.” The pursuit of this dream has driven the American people for generations, and recently, it has driven them directly into ABC’s Shark Tank.
But I’m getting ahead of myself.
Business in America has changed drastically in recent years. At a time when business idols are college drop outs who built companies from their garagesand Silicon Valley is a household name (and a tv show!), the goal of entrepreneurship has trumped all. The idea of rising through the ranks of your company has been surpassed by fast-paced success stories about startups improving and conquering old industries in record amounts of time (looking at you, Uber). This shifting business environment paired with the underlying hope to be the next overnight million-dollar company is what makes Shark Tank so interesting.
Members of the New Jersey’s craft brewers guild— a group small enough to fit in one restaurant booth a few years ago and now numbering around 70 — worry state law is murky on whether they can sell their suds at farmers markets or if local food trucks can serve patrons at microbreweries. Associated Press Read more
WASHINGTON (AP) — For much of the economy’s fitful and sluggish six-year recovery from the Great Recession, analysts have foreseen a sunnier future: Growth would pick up in six months, or in a year.
That was then.
The latest Associated Press survey of leading economists shows that most now foresee a weaker expansion than they had earlier. A majority of the nearly three dozen who responded to the survey predict tepid economic growth, weak pay gains and modest hiring for the next two years at least.
Nearly 70 percent said they thought the economy’s growth would remain below its long-run average of 3 percent annually through 2017. The economy hasn’t attained that pace since 2005.
And if they’re right, don’t expect much of a pay raise: Fifty-eight percent of the economists think wage increases for the next two years will remain stuck below a long-term annual average of 3.5 percent.
What’s more, if growth doesn’t pick up from its modest post-recession pace of 2.2 percent a year, nearly six in 10 expect hiring to fall to an average of 175,000 jobs a month or below, down from its pace of 243,000 jobs a month for the past year.
At the start of the year, many economists thought falling gas prices and strong hiring would finally produce 3 percent economic growth for 2015 as a whole.
“We no longer have reason for optimism that the economy is going to accelerate,” said Mike Englund, chief economist at Action Economics. “The real question is, when is the next downturn coming?”
New Jersey lost 26,100 jobs in June and July, the state’s worst two-month loss since the spring of 2009 at the end of the recession, nearly wiping out all the gains for the year.
Hugh R. Morley, The Record Read more
WASHINGTON, D.C. – Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, issued the following statement after the SEC announced a finalized pay ratio rule as required by Dodd-Frank:
“The pay ratio rule will do nothing to provide useful information to investors, improve our economy, or help struggling Americans find a job. What it will do is impose substantial costs upon American businesses and their shareholders, and make our capital markets less attractive for growing companies. We need to work to grow our economy and expand opportunity for all Americans—not create new red tape and regulations that do nothing to achieve those goal.
Garret also offered a special thanks to Ciaran, Jonathan, Michael, Allison, Catherine, Joe, and Kayla,all interns from his Washington, D.C. office, Garret said “for all of your hard work this summer! You did a great job, and I hope you learned a lot during your time on Capitol Hill.”
Ridgewood NJ, The number of people not in the labor force reached another record high in July, according to new jobs data released Friday by the Bureau of Labor Statistics.
The BLS reports that 93,770,000 people (16 and older) were neither employed last month nor had made specific efforts to find work in the prior four weeks.This is an increase of 144,000 over June’s record when 93,626,000 were not in the workforce.
labor force participation rate remained the the same as June at 62.6 percent. Before last month the labor force participation rate had not been that low since October 1977, when the participation rate was 62.4 percent .Despite hovering near the 38 year low. the unemployment rate remained at 5.3 percent suggesting more people were searching for jobs during the 1970’s and the incentive not to work was not as high.
Back in April we told you about Dan Price, CEO of Gravity Payments, who said he would pay every single one of his employees $70,000 annually.
Every single one, from the lowest skilled workers on up.
Now, as expected, Price has fallen on hard times financially, even having to rent out his own home.
Employees who work for Gravity are now leaving the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.”
This was always going to be the outcome.
If everyone hits the jackpot, does anybody really win the lottery?
McDonald’s profits implode seemingly overnight plunging 30%. Next step? Service to be automated.
“Amid a historically slow economic recovery, 1970s labor-participation rates and stagnant middle-class incomes, we understand that people are frustrated. Harder to understand is how so many of our media brethren have been persuaded that suddenly it’s the job of America’s burger joints to provide everyone with good pay and benefits. The result of their agitation will be more jobs for machines and fewer for the least skilled workers.” Joe Killian
Minimum Wage Backfire
McDonald’s moves to automate orders to reduce worker costs.
Updated Oct. 22, 2014 2:26 p.m. ET
If there’s a silver lining for McDonald’s in Tuesday’s dreadful earnings report, it is that perhaps union activists will begin to understand that the fast-food chain cannot solve the problems of theObama economy. The world’s largest restaurant company reported a 30% decline in quarterly profits on a 5% drop in revenues. Problems under the golden arches were global—sales were weak in China, Europe and the United States.
So even one of the world’s most ubiquitous consumer brands cannot print money at its pleasure. This may be news to liberal pressure groups that have lately been demanding that government order the chain known for cheap food to somehow pay higher wages.
Non-Accredited Equity Crowdfunding Investors Need a Path to Liquidity
Jul 27, 2015 by Scott Shane In VC & Angel Capital
PeerRealty, a real estate crowdfunding platform, recently introduced CFX, the U.S.’s first secondary market for equity crowdfunding shares. For accredited investors, this exchange will improve the liquidity of equity crowdfunding investments.
Unfortunately, only accredited investors can use the platform. Equity crowdfunding investments made by non-accredited investors remain as liquid as ice.
This lack of liquidity creates a big problem. With the implementation of the rules for Title IV of the Jumpstart Our Business Startups (JOBS) Act in June, non-accredited investors — people with less than $1 million in net worth or $200,000 in annual income if single and $300,000 if married — can now buy shares in private companies through equity crowdfunding portals.
But non-accredited investors can’t sell those same shares. Unlike accredited investors who can go to PeerRealty to sell their securities, unaccredited investors have to wait for the companies in which they have invested to go public or get acquired to cash out. And if venture capital and angel group investments are any guide to the time to exit for young companies, then these unaccredited investors will be waiting five to ten years for liquidity. Of course, that’s if the companies in which they have invested are the kind that will be purchased or go public.
Securities and Exchange Commissioner (SEC) Daniel Gallagher has recognized this problem, calling for a solution to the ill-liquidity of crowdfunding securities in a September 17, 2014, speech.
Specifically, he said, “I’ve called for the creation of ‘Venture Exchanges’: national exchanges, with trading and listing rules tailored for smaller companies, including those engaging in issuances under Regulation A.”
Congressman Scott Garrett, the New Jersey Republican who chairs the Subcommittee on Capital Markets and Government-Sponsored Enterprises of the House has taken the issue to Capitol Hill. He has put forth a discussion draft of the Main Street Growth Act (PDF) – a bill that would “amend the Securities Exchange Act of 1934 to allow for the creation of venture exchanges to promote liquidity of venture securities, and for other purposes.”[/fusion_text]
My goal at the convention is to make as many connections with both professionals and like-minded students. Exposure, to sum it up with one word. As a rising senior at Rutgers business school pursuing a bachelors degree in finance with a legal studies minor I am also seeking internship opportunities in the field of finance/ compliance for the fall/spring and/or summer. Eloisa Faria
Yes it’s to raise money for the Convention. Our story and goals are presented in the gofundme account below, but If you want more details about my personal goals/ why I want to attend,
Send Eloisa & Dina to ALPFA 2015!!
ALPFA is a national, not-for-profit professional association that creates opportunities, adds value, and builds relationships for its members, the community and its business partners while expanding Latino & Diverse Leadership in the global workforce. ALPFA Rutgers –Newark is a student chapter of this professional business association which strives to participate in the professional chapter’s events, build professional relationships and network with other business students and corporate professionals.
Eloisa Faria guaduated from Passaic County Community College with an Associates Degree in Business Administration and is a Standing Senior at Rutgers Business School where she is pursuing a Bachelor’s Degree in Finance with a minor in Legal Studies. She has maintained a 3.5 cummulative GPA and works as a Resident Assistant at Rutgers, Newark in order to give back to the community she fell in love with.
Dina Siyam is a graduate of Middlesex County College with an Associates degree in Business Administration and is a member of Phi Theta Kappa Honor Society. She is currently entering her Senior year at Rutgers Business School where she is pursuing a Bachelors degree in Accounting & Finance with a concentration in Real Estate Finance.
Friday, July 17, 2015
the staff of the Ridgewood blog
Ridgewood NJ, Senator Bob Menendez held a press conference at the Ridgewood Train station yesterday under heavy security and pushed for more transit funding and union jobs. While it was an interesting choice of venue , a venue that had undergone a controversial $40 million renovation several years ago , which include and elevator to nowhere.
Menendez put forth his 9 Principles for a Public Transportation Reauthorization Bill, with no mention of how this stuff would be paid for or what happened to all the money in the Transportation Trust Fund or what the happened to all the shovel ready jobs from the stimulus package .
The senator was joined by our Mayor Paul Aronsohn for what many would call a union love fest .
“I categorically reject the idea that we can’t afford to fix our transportation system; we can’t afford not to fix it,” said Sen. Menendez, Ranking Member of the Subcommittee on Housing, Transportation, and Community Development, which has jurisdiction over transit. “Let’s stop pretending the transportation problem is going to resolve itself if we just wait long enough. Hundreds of thousands of New Jersey families and millions of Americans rely on a safe, reliable, affordable transit system, and Congress must finally accelerate on real investments and stop putting the brakes on upgrades, innovations and protections.”
“We need a transportation system that drives economic growth and helps communities thrive. Strategically investing in public transit can save families money in the long run, and it reduces congestion on our roads. It also increases economic mobility and job growth, giving people more personal flexibility and freedom to get to work, school, or wherever they need to go. Building tomorrow’s transportation system begins with hard work, careful planning, and smart investments today and these key principles offer a roadmap for making needed infrastructure improvements,” said Sen. Reed, who also serves as the Ranking Member of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD).
“Robust funding and smart policy that ensures that our transit systems remain efficient, safe, and reliable must be a key component of any transportation funding bill,” said Sen. Schumer. “As the Senate Banking Committee works toward a bipartisan bill these principles lay out some basic tenets that the bill should strive to achieve. Without additional investment transit systems across the country will continue to deteriorate, increasing the backlog of critical maintenance projects and jeopardizing the safety of transit riders.”
“By making smart investments in our transit infrastructure, we can create jobs today and build long-term economic growth in the future,” said Senator Merkley. “Oregon has been a longtime leader in innovative development projects, it’s time we incorporate more of these ideas in our national policy. Improving the reliability and efficiency of our public transportation systems is a win-win for workers, businesses, and the environment. At the same time, it makes our cities and towns better places to live, work, and raise a family.”
“A strong public transportation system is good for families, good for business and good for this country,” said Senator Warren. “A 21st Century economy requires a 21st Century transportation system.”
Sen. Menendez made the announcement at a news conference outside the New Jersey Transit rail station in Ridgewood, N.J., where residents rely on public transportation to commute to work.
“For Ridgewood commuters, having access to safe, efficient and reliable mass transit is not just important; it is a way of life,” said Mayor Paul Aronsohn. “We are therefore grateful to all that Senator Menendez is doing to promote these principles for a public transportation reauthorization bill.”
Sen. Menendez argued that transit systems have the potential to spur economic development, revitalize communities, and create new jobs. His policy framework today also received support from the leaders of the New Jersey AFL-CIO, Amalgamated Transit Union (ATU), Laborer’s International Union of North America (LiUNA), Northeast Regional Council of Carpenters, Brotherhood of Locomotive Engineers and Trainmen (BLET), Bergen County Central Labor Council, International Union of Operating Engineers (IUOE) and SMART-Transportation.
“We need a strong multi-year transportation funding bill signed into law to improve our economy and strengthen our communities,” said Charles Wowkanech, president of the New Jersey State AFL-CIO, which represents one million workers and their families. “Long-term funding allows proper planning and prioritization of our transportation needs, and creates permanent, sustainable jobs that make New Jersey a desirable location for employers and workers alike.”
“The Amalgamated Transit Union proudly stands with Senator Menendez, who recognizes the important role public transportation plays in communities across New Jersey and our country,” ATU State Council Chairman Ray Greaves said. “A long term transportation re-authorization bill will allow us to invest in and strengthen our transportation infrastructure, our mass transit system, and our workforce. It’s no secret that investment in mass transit is good for our economy and it creates jobs.”
“Once again, I commend Senator Menendez for his leadership in promoting the importance of making needed capital investments in our nation’s transportation infrastructure,” said Raymond M. Pocino, VP and Eastern Regional Mgr., Laborer’s International Union of North America. “The Senator’s policy priorities will help fund capital improvements to our region’s transit systems and enhance operational efficiencies. It is critical that we find a solution at the national and local level to fund our extensive transportation network. Without an efficient, mutli-modal transportation system we cannot grow our economy and create jobs, not only for the construction industry but all sectors of industry.”
“The passage of this bill will help New Jersey rebuild its failing infrastructure and create more opportunities for our residents to go to work,” said Northeast Regional Council of Carpenters Executive Secretary-Treasurer Michael Capelli.
“Senator Menendez is a true champion for the commuters of NJ Transit,” said Steve Burkert, General Chairman of SMART-Transportation Division Local 60, which is a member of the NJ Transit Rail Labor Coalition. “We applaud the Senator’s efforts to gain long term funding for NJ Transit. This funding will promote future growth and properly maintain current infrastructure. The safety of the passengers who ride our trains on a daily basis should never be compromised due to budgetary restraints. We stand here today in full support of Senator Menendez and his pursuit of funding the Public Transportation Reauthorization Bill.”
Principles for a Public Transportation Reauthorization Bill
Principle 1: Make sound investments by funding our nation’s transit programs at $115 billion over six years, the level recommended by the President.
Principle 2: Provide predictability and stability through a six-year authorization bill.
Principle 3: Address state of good repair challenges by growing programs including State of Good Repair and Bus and Bus Facilities.
Principle 4: Meet rising demand through increased investment in formula programs and Capital Investment Grants.
Principle 5: Strengthen America’s transit workforce through professional development, training, and robust worker protections.
Principle 6: Create sustainable communities through increased incentives for transit-oriented development
Principle 7: Build big, nationally and regionally significant projects in rural, suburban, and urban communities.
Principle 8: Invest in innovations that support safe, reliable, efficient and environmentally-friendly transit systems.
Principle 9: Improve disaster response by funding the Public Transportation Emergency Relief program.
more of Boyd Lovings photos will be posted durring the day and on the Ridgewood blogs Facebook page
JULY 8, 2015 LAST UPDATED: WEDNESDAY, JULY 8, 2015, 1:21 AM
BY KATHLEEN LYNN
STAFF WRITER |
THE RECORD
Private-equity firms poured more money into New Jersey companies last year, investing $16.7 billion in 104 companies, up $4.1 billion from the previous year.
New Jersey ranked ninth among the states for the amount of private equity invested, according to the Private Equity Growth Capital Council’s annual investment report.
“The rise in private equity investment in New Jersey and nationwide reflects a positive economic climate and the growth of private equity as an industry,” said James Maloney, a spokesman for the private equity council.
Among the most notable private-equity deals in New Jersey last year was a $90 million investment by Goldman Sachs in AvePoint, a Jersey City technology company. In addition, Onex Corp. became an equity partner in York Risk Services Group, a Parsippany-based risk management company, and General Atlantic Partners took a stake in CitiusTech Inc., a Princeton-based health care technology company.
In a more recent deal, Craftmaster Hardware of Northvale, which provides security hardware and locksmith supplies, was purchased this year for an undisclosed amount by Boston-based private-equity firm Capital Resource Partners.
Private-equity firms invested more than $486 billion in U.S.-based companies last year, increasing investment by $43 billion over the previous year. Nationally, private equity investors put more than half their money into two sectors, business services (29 percent) and consumer goods (22 percent). Information technology, energy, health and financial services accounted for most of the rest of the investments.
California ($56 billion), Texas ($52 billion), New York ($43 billion), Florida ($34 billion) and Illinois ($29 billion) led the states in the amount of private equity investments.
J.P. Morgan Chase & Co. is looking to move 2,150 jobs from New York City to Jersey City, the latest expansion of the financial institution across the Hudson River.
The New Jersey Economic Development Authority on Thursday is expected to consider an application by the New York City-based bank for a $19 million subsidy over 10 years, the second round of tax credits for the firm in about a year as the state seeks to create jobs in the Hudson County city.
New Jersey’s unemployment rate was 6.5% in May, compared with New York state’s 5.7% and 5.5% for the nation, according to the U.S. Bureau of Labor Statistics. (Haddon/Wall Street Journal)
