Campaign News

In the next upcoming battle for workers’ rights, activists aren’t asking for more money or more time off. They just want workers to get a little advance notice about what their schedule will be.

Activists for better working conditions have scored victories lately. This year, 19 states increased their minimum wage — the result of a coordinated state-by-state campaign to take action on an issue that the federal government has basically ignored for a decade. And a handful of cities and states have passed laws requiring employers to offer workers paid parental leave.

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US News & World Report - November 13, 2014, by Katherine Peralta - Building on momentum from earlier this year, a group of policy advocates, economists and community organizations is calling for more transparency at the Federal Reserve, imploring that the Fed consider the plight of many who haven’t enjoyed the kind of recovery that recent positive economic data suggest.

The push for more access to the Fed is gaining momentum among the public and in Congress, though revamping a decades-old central banking system that’s helped stabilize the economy through multiple crises is not without controversy.

As two of the Fed’s most vocal critics of its current monetary policy near their retirement at the beginning of next year, a coalition called “Fed Up” is asking that the public have more say in the process of appointing their replacements and future Fed leaders. Members sent letters outlining their concerns to the Fed and will meet Friday with Fed Chair Janet Yellen in the District of Columbia.

As it progresses toward its dual objective of price stability and full employment, the Fed has said it will eventually raise short-term interest rates, which have been kept near zero since 2008 to stimulate growth. The coalition says since the economy isn’t yet strong enough to stand on its own, the Fed should maintain its easy-money policies, which make lending cheap for borrowers and businesses but don’t do much to boost those on fixed incomes like retirees.

“We're going to talk about our request that the Fed create more transparency in a democratic process for appointments and that it adopt more pro-jobs, pro-wages policies, more expansionary policies, so as to get us to full employment,” says Ady Barkan, staff attorney at the left-leaning Center for Popular Democracy, which is part of the coalition. “They need to target higher wage growth instead of stepping on the brakes the moment that wages start to rise, which is what the hawks want to do."

The term "hawk" refers to those who see the labor market as strong enough to merit a faster interest rate hike to keep inflation in check and pertains to outgoing regional Fed bank presidents Richard Fisher of Dallas and Charles Plosser of Philadelphia. Doves, like Yellen, believe that there is still enough slack in the labor market to warrant maintaining as low interest rates as possible.

Each of the 12 regional Federal Reserve banks selects its own president through a process that’s criticized as rather opaque. Those presidents rotate on five of the 12 seats on the Federal Open Market Committee, the group at the Fed that sets interest rates. The remaining seven members of the committee, including Yellen, are appointed by the president and confirmed by the Senate.

The 12 regional presidents report back to the rest of the Fed about economic trends from their respective districts on a regular basis – a compilation of data amalgamated in a “Beige Book” published eight times a year and used to assess the economy’s health.

A spokeswoman for the Philadelphia Fed said it has retained the services of executive search firm Korn Ferry to replace Plosser and “will consider a diverse group of candidates from inside and outside the Federal Reserve system.” A Dallas Fed representative said the bank’s board of directors is meeting today to discuss the presidential search process to replace Fisher.

Stronger economic data this year have prompted many to wonder whether the Fed should start raising interest rates sooner rather than later. The U.S. economy’s reached the lowest jobless rate in six years and has enjoyed the strongest stretch of job gains since 1999.

But the coalition argues that despite what the national numbers may say about the recovery, they don’t necessarily speak to the experience of a lot of people who still feel the recession in their communities.

Even though the Dallas metropolitan area had one of the strongest monthly job gains in the country in September and has a jobless rate of 5 percent, well below the national rate of 5.8 percent, Connie Paredes, a volunteer with the Texas Organizing Project who will meet with Yellen Friday, says the economy in Dallas still feels “not that great.”

“There are a lot of statistics out there about the unemployment rate and how things have gotten better. It doesn't really reflect the fact that there is a lot of underemployment,” Paredes says. “There are a lot of college graduates who aren't able to find jobs. There are a lot of professionals who have to take on extra jobs in order to make ends meet.”

But attempting to change the appointment system might not be the solution to get more “everyday” voices before the Fed. Guy Lebas, chief fixed income strategist at Janney Capital Markets, says it’s a “solution in search of a problem.”

“There’s very little wrong from an economic perspective with how the Fed selection process works now, and a majority of the members who have input into monetary policy are democratically selected,” Lebas says.

Yellen herself has said it’s important to maintain a diverse group of viewpoints within the Fed.

“I believe decisions by the Federal Reserve Board and the Federal Open Market Committee are better because of the range of views and perspectives brought to the table by my fellow policymakers, and I have encouraged this approach to decision-making at all levels and throughout the Fed System,” she said in an Oct. 30 speech in Washington.

There’s also a push in Congress for changes at the Fed. The new GOP leadership could introduce a new version of former congressman and presidential candidate Ron Paul’s Audit the Fed bill, which, as its name implies, calls for a full audit of the Fed – including internal discussions on monetary policy – by the Government Accountability Office. Critics worry if passed, the bill would allow Congress to interfere with the Fed’s decision-making.

And a level of independence from the public may not be such a bad thing, says Gary Burtless, a senior fellow at the Brookings Institution, citing the Fed’s handling of the economic crisis – which included bailing out large financial institutions and beginning unprecedented and controversial economic stimulus programs.

“I realize many things the Fed did, although most economists think were entirely justified, are still immensely unpopular among the public, but so what?” Burtless says. “We do have this layer of insulation that I think we should protect. The events of 2007 through 2009 confirm the absolute importance of having that level of insulation so that members of the Federal Reserve Board don’t worry that their deliberations, their decisions about monetary policy, are going to be immediately undone by populist and perhaps poorly understood objections from the general public.”

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As hundreds of undocumented immigrants were rounded up across the country last February in the first mass raids of the Trump administration, Immigration and Customs Enforcement officials went out of their way to portray the people they detained as hardened criminals, instructing field offices to highlight the worst cases for the media and attempting to distract attention from the dozens of individuals who were apprehended despite having no criminal background at all.

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Buzzfeed - 05.21.2015 - Randa Jama, a wheelchair attendant at Minneapolis-St. Paul International Airport, would be referred to as a “voluntary” part-time worker in the jobs data produced by the Bureau of Labor Statistics (BLS). She only works weekends, spending weekdays caring for her children, in large part because she couldn’t afford a babysitter without much better hours and pay.

Though Jama says she would prefer to be working full-time, that information doesn’t filter through to the nation’s monthly employment report. The same goes for many other workers — almost a million, mainly women, one advocacy group estimates — who can’t work the full-time hours they want to, and aren’t classed alongside other unemployed or underemployed people in official data.

The distinction comes from a question, asked as part of the BLS population survey, about underemployment caused by “economic” or “non-economic reasons.” It classes factors like child care as non-economic reasons people aren’t working more hours - and commonly refers to these workers as “voluntarily” part time.

“The number of people working part time for economic reasons is a closely watched economic indicator,” reads the interviewer’s manual for the survey, as “a measure of underemployment and of the inability of the nation’s economy to generate the types of jobs desired.”

Those working part-time for “non-economic reasons” (sometimes referred to as “voluntarily” part-time) are not watched the same way.

“They reflect personal, rather than business, reasons for working part time,” the manual says. It means measurements of the economy’s ability to create full-time work could be overlooking many part-time working women who are not working full-time because of a lack of child care, or other family obligations.

Dean Baker, co-director of the Center for Economic and Policy Research, argues that while the terminology “economic” and “non-economic” is correct, describing workers in need of child care as “voluntarily” part time is misleading.

“What we’re trying to measure is the strength of the economy,” Baker told BuzzFeed News. “For that, they’re asking the right question: ‘If the economy were stronger, would these people have jobs?’ But if the economy were stronger and these women still didn’t have child care, they still wouldn’t be working full-time.”

Baker said the unemployment numbers also don’t account for women who would like to be working full- or part-time, but aren’t actively looking for work because they can’t afford child care. Similarly, workers who are part-time because of transportation issues — such as an inability to get to and from jobs in the suburbs — would be counted as “voluntarily” part time for “non-economic reasons,” despite wanting full employment.

A recent study by the Center for Popular Democracy (CPD), a liberal advocacy group, estimated about a million women want to work full-time but can’t due to these “voluntary” reasons.

“In theory the economy could be robust enough where these women could have their needs met,” said Aditi Sen, a CPD researcher who co-authored the study. Policymakers may put less focus on full employment for women, she argued, if the official statistics don’t include their desire for full time work.

Justin Wolfers, a senior fellow at the Peterson Institute for International Economics and professor at the University of Michigan, said that the BLS isn’t hiding any data.

“There’s no doubt that above and beyond the people we count as unemployed there is slack at a number of margins,” he said, giving the example of jobless workers who are not actively seeking work but who would take jobs if they were offered them. This group is also not included in the top-line numbers of the jobs report.

Wolfers said the BLS publishes extensive data and statistics on those margins, adding that the CPD report may not be a “reflection on the current moment, but something that’s been going on.”

Karen Kosanovich, an economist with the Current Population Survey program at the BLS, said the survey asks those who are working part-time for non-economic reasons if they would prefer to be working full time, but their answers are not released with the jobs report data.

“The reason for part time work and the desire for full time work are separate,” said Kosanovich. “They’re asked in separate questions, and we don’t have any tables that include that [latter] information.”

The last time the BLS population survey questions were revised was back in 1994. New questions helped capture a population of workers that previously went unrecorded.

“The biggest thing the new questions caught were women and men working at the part-time margin, especially women doing work outside the home,” said Brad Hershbein, a visiting fellow at The Hamilton Project at the Brookings Institute.

Both Hershbein and Baker said adding new questions in the BLS survey could help capture the growing share of contemporary workers with irregular schedules — such as those moonlighting as an Uber driver for 15 hours a week. They could show more people in the workforce working part-time — with ramifications for overall data on unemployment — just like the questions added in the ’90s did.

“They made these changes [to the survey] to keep up to date with who’s working and what work looks like now, but they haven’t updated it in 20 years,” Hershbein said. “And it turns out the way they asked the questions increased the labor force participation.”

Source: Buzzfeed