(This post appeared originally in this space on August 31, 2011.
It was re-purposed and presented again September 3, 2014, September 7, 2016, and
today, September 6, 2017. It has been
edited and updated to reflect current unemployment data.)
Monday was Labor Day. At
its core, according to the U.S. Department of Labor, Labor Day in the United States was
designed to commemorate the creation of the labor movement; dedicated to the
social and economic achievements of American workers.
The holiday focuses on contributions workers have made to the strength,
prosperity and well being of our country.
First observed in September 1882, the
event has always been observed on the first Monday of the
month. Initiated by the Central Labor Union of New York,
the celebration became a federal holiday in 1894.
In addition to its formal structure and purpose, Labor Day has a number of symbolic associations.
It is considered:
§ The
unofficial “End of Summer”
§ The
last 3-Day warm weather weekend for
vacationers
§ By High Society standards, the last day for which it
is appropriate for women to wear white
§ Back–to-School shopping
On the formal side, while the Labor Department’s blurb omits any reference to
it, Labor Day also validates and recognizes an often
controversial mechanism that frequently divides American opinion;
the labor union. Scorned by many who fancy themselves
as Free Enterprise Capitalists,
unions and their members have not only been actively involved historically, in
debates that framed public policy for American workers,
they have won or forced hard-earned concessions that in the shimmering glow of
reflective perspective, must be considered to have fundamentally altered the
playing field (known as the workplace), including:
§ Pensions
§ Health
Care Benefits
§ Paid
Vacations
§ Equal
Pay to women
§ The
Development of Child Labor Laws
§ The
5-Day Work Week
§ The
40-Hour Work Week
§ The 8-Hour Work Day
§ Worker’s
Compensation benefits
§ Female
Flight Attendants permitted to marry
These and many other important cherished and effective
employee rights are attributable to the efforts of the American Labor Movement.
But, this is not an ode to Labor Unions. Unions also have downsides. They create or
contribute to:
§ The
potential for strikes
§ Additional
costs to all employees (membership dues; whether a member or
not)
§ Loss
of individuality (ability to represent one’s self in a
grievance)
§ Subject
to fines & discipline by the Union
§ Lack
of promotions
§ Burdensome salary demands (relative to the market)
§ Loss
of profits (and/or pay) due to strike
§ Inefficient
& ineffective contracts
§ Increased
unemployment due to failure to reach agreement
w/management
The first Labor Day celebration
was led by a Labor Union. The history of
the Day has been linked, inextricably, with Labor
organizations, ever since. But if it is the American Worker the Day was
intended to commemorate, Labor Day 2011 was
set in an auspicious and trenchant backdrop:
§ The Unemployment Rate in
the U.S. was reported to be 9.1% in July 2011
§ The
economy added only 117,000 jobs in
July (154,000 in the private sector, -37,000 government jobs lost); better than
expected, but still a dismally low number
§ Businesses
are stockpiling $2 trillion in cash
Three years hence, the picture,
thankfully, was much improved:
§ The Unemployment Rate in the U.S. was reported to be 6.2% in July 2014
§ The
economy added 209,000 jobs in July 2014
§ August 2014 employment data will be released the
first Friday in September
In 2011, President Obama,
announced after the Debt Ceiling Deal on August 2nd, that he would present a jobs proposal
for Congress to consider, and was set to do so,
after Labor Day, (on September 8th). The proposal
included a combination of tax cuts, spending on infrastructure, and measures
designed to assist the long-term unemployed, while bolstering certain sectors
of the economy. This potion sounds eerily similar to the ideas Democrats proposed
when negotiating the Debt Deal.
Republicans were
lined up to oppose the plan, suggesting instead, among other things, a Balanced Budget Amendment;
a balm the GOP/Tea Party also
suggested during the Debt Deal negotiation.
In short, there was little expectation for significant movement, or the
adoption of sweeping legislation to address the lack of jobs in America…and
there wasn’t. What we had instead was, déjà vu…all
over, again! Then, I was compelled to ask, “Labor Day: Where Is The
Celebration?” Fast forward three years, and the truth is the
labor dynamics in this country had improved appreciably. However, our country was still beset by challenges.
Each day we were faced with a series of
old, and developing challenges abroad. Syria, Iraq, the Ukraine,
Russia, North Korea, China, Somalia, are all global hot spots, just to name a
few. Then of course, there was the Israeli-Palestinian conflict, and the
burgeoning by ISIS/ISIL, also known as the Islamic State. And oh yeah, we were
still winding down in Afghanistan.
In the August 2016 Jobs Report, issued
September 2, 2016, the nation’s Job’s Report has continued to improve:
§ The Unemployment Rate in the U.S. was reported at 4.9%
§ The
economy added 151,000 jobs in August 2016
§ Paychecks
grew 2.4% compared to a year ago
§ Jobs
Growth record extended to 77 consecutive months
The August 2017 Jobs Report, issued September 1, 2017, showed that the economy, for the most part, held steady during the month of August.
·
The Unemployment
Rate in the U.S. was reported at 4.4%, up slightly
·
The economy added 156,000 jobs in August 2017
·
Earnings rose 2.5% over the past 12 months;
however, the average work week shrank .1 hour, to 34.4 hours, which means
paychecks were a bit smaller
·
The Jobs Growth record has extended to 89 consecutive
months (7 for #45)
August job growth is historically
volatile, and is the slowest month for job growth since the Reports have been
published. The increase in jobs was disappointing, however, it was still an
increase. Though disappointing, the increase, when viewed through the lens of
the trend line, was not all that surprising. Moreover, the number more than
doubles the 5-year average for the month of August, which is 71,000. It is also
important to add, the Unemployment Rate remained comfortably below 5%.
Unlike in 2011, in 2014, in 2016, and again Monday, in my opinion, Labor Day brought us more of a
day of respite and reflection in honor of our country’s Labor Movement. On top
of all that don’t forget, as the sixth bullet from the top advises, the conventional kick-off
of the hard-core political campaign season is upon us. The General Election is
just 64 days away. While there is no Presidential
Election this year, please understand that elections have consequences. The
entire House of Representatives, 535 members, is up for re-election, in
addition to 1/3 (33 members) of the Senate. By all means be sure to exercise
your franchise; vote!
It’s “Labor Day – SixYears Later,” and while we’ve got plenty of issues
to temper our celebration, we should indeed celebrate America’s phenomenal
Labor Movement. I’m done; holla back!
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