Break down employment barriers with training, education programs

From today’s CalMatters Online:

“You can’t have just one job in America,” says a gig worker in Los Angeles County, and “you could get replaced like this. ‘Say one wrong thing to me? You’re fired …There is a line outside the door who wants your job.’”

That is one of several perspectives from struggling workers in California captured in a new report by the Institute for the Future, which interviewed a cross-section of Californians paid less than $15 an hour last fall. The report, released March 24, explores troubling trends that preceded the pandemic but now are worsening. 

And it comes on the heels of another report by the state’s Future of Work Commission that calls for a new social compact for workers based on some staggering statistics. For example, nearly one-third of all  workers in California make less than $15 per hour, and a majority are over age 30. Women and people of color also are paid, disproportionately, the lowest wages in our state.

Beyond wages, fewer than half of workers in California report having a “quality job,” which the Future of Work Commission describes as “a living wage, stable and predictable pay, control over scheduling, access to benefits, a safe and dignified work environment, and opportunities for training and career advancement.”

The commission also notes how a decrease in worker power and organizing relates to job quality, inequality and violations of workers’ rights. The percentage of Californians in a labor union has dropped from 24% in 1980 to 15% in 2018, and membership in a union reduces the likelihood of low-wage employment more so than a college degree (39% versus 33%).

The futurists at the Institute for the Future outline how COVID-19 has accelerated instability and insecurity for workers. This is now an all-hands on deck moment, requiring consensus and collaboration across sectors – government, business, labor, education, workforce development, philanthropy and community organizations. This is difficult, complicated, and even expensive work, but it is essential if we are to make the California Dream real and attainable for all.

Despite collaborative efforts, we need more employers and labor organizations at the table. Industry has a critical role, and they must be closely involved every step of the way, not as an afterthought.     

The good news is that some promising efforts are underway. If passed, Assembly Bill 628, introduced by Assemblymember Eduardo Garcia, a Democrat from Coachella, will build upon the Breaking Barriers to Employment Initiative by assisting individuals in obtaining the skills necessary to prepare for jobs in high-demand industries. The program would support individuals who face systemic barriers to employment with training and education programs aligned with regional labor market needs.

Read the complete article here.

OnlyFans: Jobless from the Pandemic, Selling Nudes Online and Still Struggling

From today’s New York Tiimes:

Savannah Benavidez stopped working at her job as a medical biller in June to take care of her 2-year-old son after his day care shut down. Needing a way to pay her bills, she created an account on OnlyFans — a social media platform where users sell original content to monthly subscribers — and started posting photos of herself nude or in lingerie.

Ms. Benavidez, 23, has made $64,000 since July, enough not just to take care of her own bills, but to help family and friends with rent and car payments.

“It’s more money than I have ever made in any job,” she said. “I have more money than I know what to do with.”

Lexi Eixenberger was hoping for a similar windfall when she started an OnlyFans account in November. A restaurant worker in Billings, Mont., Ms. Eixenberger, 22, has been laid off three times during the pandemic and was so in need of cash by October that she had to drop out of dental hygiene school. After donating plasma and doing odd jobs, she still didn’t have enough to pay her bills, so at the suggestion of some friends, she turned to OnlyFans. She has made only about $500 so far.

OnlyFans, founded in 2016 and based in Britain, has boomed in popularity during the pandemic. As of December, it had more than 90 million users and more than one million content creators, up from 120,000 in 2019. The company declined to comment for this article.

With millions of Americans unemployed, some like Ms. Benavidez and Ms. Eixenberger are turning to OnlyFans in an attempt to provide for themselves and their families. The pandemic has taken a particularly devastating toll on women and mothers, wiping out parts of the economy where women dominate: retail businesses, restaurants and health care.

“A lot of people are migrating to OnlyFans out of desperation,” said Angela Jones, an associate professor of sociology at the State University of New York at Farmingdale. “These are people who are worried about eating, they’re worried about keeping the lights on, they’re worried about not being evicted.”

But for every person like Ms. Benavidez, who is able to use OnlyFans as her primary source of income, there are dozens more, like Ms. Eixenberger, who hope for a windfall and end up with little more than a few hundred dollars and worries that the photos will hinder their ability to get a job in the future.

WeWork and the Death of Leisure

From today’s New York Times “Opinion” by Ginia Bellafante

This past week, Hudson’s Bay, whose story begins 347 years ago in the fur trade, making it the oldest company in North America, announced that it was selling Lord & Taylor’s flagship store, on Fifth Avenue, several years after it had acquired the department store chain through a deal with a private-equity firm.

The buyer would be WeWork, the office rental outfit very much rooted in the virtue-and-shell-game ethos of 21st-century capitalism. The founders Adam Neumann and Miguel McKelvey got together in a building on the Brooklyn waterfront where they both worked — Mr. Neumann as the proprietor of a company called Krawlers that produced padded clothes for babies — and quickly realized that they could make money from all the vacant space they saw around them by simulating the atmosphere of the Silicon Valley workplace, fueling the dreams of young entrepreneurs who always wanted to appear as if they were having fun. Over the summer, seven years into its existence, WeWork reached a $20 billion valuation.

On the face of it, the transformation of a department store — the first in the country to install an elevator — into the headquarters of a start-up is simply a story of the new economy cannibalizing the old. Traditional retail businesses have been in decline for a long time; the cult of shared goods and services enabled by technology is ever ascendant.

The first iteration of Lord & Taylor was a dry goods store on Catherine Street in Lower Manhattan that opened in 1826. The 676,000-square-foot Italianate building in Midtown it eventually occupied in 1914 (a building for which WeWork is now paying $850 million) stood not merely as a monument to turn-of-the-century commerce but also as the grand testament to what the sociologist Thorstein Veblen called the rising culture of “conspicuous leisure.”

Leisure, Veblen wrote, “does not connote indolence or quiescence.’’ What it conveys is the “nonproductive consumption of time,” by which he was not anticipating the 10,000 hours people would fritter away playing Minecraft, but any time spent away from the activity of labor. In their infancy and well into the first 80 years or so of the 20th century, department stores were largely places to pass the hours. When Lord & Taylor opened on Fifth Avenue and 38th Street it featured three dining rooms, a manicure parlor for men and a mechanical horse that could walk, trot or canter. Harry Gordon Selfridge, founder of Selfridges in London, dictated that “a store should be a social center.” To that end he installed an ice rink and shooting range on the roof of his store and exhibited the first plane to fly over the English Channel.

Read the entire article here.

Growth Without Jobs

From yesterday’s NYT editorial:

In a statement last Wednesday — just hours after the government reported headline-grabbing economic growth of 4 percent in the second quarter —the Federal Reserve said it would continue to stimulate the economy because, despite overall growth, the labor market remained weak. In a speech the same day in Kansas City, Mo., President Obama echoed the Fed. “I’m glad that G.D.P. is growing, and I’m glad that corporate profits are high, and I’m glad that the stock market is booming,” he said, (which it was before profit-taking at week’s end dented its performance). “But what I really want to see is a guy working 9 to 5, and then working some overtime.”

Those cautionary views were validated on Friday, when the employment report for July showed slower job growth, flat earnings, stagnant hours and stubbornly high long-term unemployment. The challenge now, as always, is to translate official concern over the job market into change for the better.

The economy added 209,000 jobs last month, a decent enough figure in and of itself, but a slow start to the third quarter compared with the average monthly gain of 277,000 last quarter. Worse, July’s relatively slow pace of growth may not be sustainable. Many of last month’s job gains were in automobile manufacturing, which could reflect a statistical blip from shorter-than-usual factory shutdowns in July rather than new positions added.

Moreover, the upswing in the auto industry is tied to a surge in high-cost auto loans to uncreditworthy borrowers, an unstable foundation for future growth. In addition, the sectors that generally add the most jobs each month all slowed in July from their pace in June, including bars and restaurants, retail, health care and temporary services. As for the president’s vision of a 40-hour week plus overtime — well, if only. For the fifth straight month, the average workweek for most of the labor force was stuck at 33.7 hours. Factory overtime, once a mainstay in the lives of working-class Americans, dropped in July for the second straight month. Average hourly wages have, at best, kept pace with inflation over the past year. Pay is languishing, but working longer hours is not an option.

In its statement, the Fed said it was basically a tossup whether the economy would speed up or slow down. Faster growth, however, generally requires a healthy real estate market and that requires a healthy job market, especially for younger workers.

But in July, the jobless rate for workers ages 25 to 34 was 6.6 percent, compared with 6.2 percent over all. Among young people who are working, many are in low-wage or part-time jobs, or jobs that otherwise do not make use of their education or experience. So it is not surprising that the sale of new homes plummeted recently at the fastest pace in nearly a year. Sales of existing homes have risen, a positive sign but a questionable trend given the still-ailing job market.

The most likely scenario is for the economy to continue to muddle along at an overall annual pace of 2 percent to 2.5 percent. The Fed has affirmed its commitment to keep interest rates low until the labor market recovers, but the real test of its resolve will come if and when inflation meets or exceeds its preferred annual rate of 2 percent. In a sluggish economy with significant employment slack, continued stimulus policy would be called for even if inflation exceeded the target, but whether the Fed will oblige is unknown.

As for Mr. Obama, he seems to understand that with a Republican-dominated House and Republican senators keen on winning a majority in the Senate, he is on his own to push for change. He can and should continue to issue executive orders to improve pay and working conditionsfor the federal contract work force. He should work with the Labor Department on upcoming rules to re-establish a broad right to time-and-a-half for overtime. And he should continue to rally public support for Democratic legislation to raise the minimum wage and to combat the growing use of unpredictable part-time scheduling.

None of that is enough to counter significantly the forces responsible for job growth that is too weak, wages that are too low and workweeks that are too short. For that, a functional political climate is needed, one in which leaders find compromise solutions to the nation’s problems. Without that, the Fed’s modest prediction that the economy has an even chance of getting better may in fact be too optimistic.