Jobs News

The Employment Situation in July

While there is more work that remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to recover from the worst downturn since the Great Depression.  It is critical that we continue the policies that build an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007.  To build on the progress of the last few years, President Obama has proposed an extension of middle class tax cuts that would prevent the typical middle class family from facing a $2,200 tax increase next year.  In addition, to create more jobs in particularly hard-hit sectors, President Obama continues to support the elements of the American Jobs Act that have not yet passed, including further investment in infrastructure to rebuild our Nation’s ports, roads and highways, and assistance to State and local governments to prevent layoffs and rehire hundreds of thousands of teachers and first responders. 

Today’s report from the Bureau of Labor Statistics (BLS) shows that private sector establishments added 172,000 jobs last month, and overall non-farm payroll employment rose by 163,000. The economy has now added private sector jobs for 29 straight months, for a total of 4.5 million jobs during that period. 

The household survey showed that the unemployment rate ticked up to 8.3% in July (or, more precisely, the rate rose from 8.217% in June to 8.254% in July).  Acting BLS Commissioner John Galvin noted in his statement that the unemployment rate was “essentially unchanged” from June to July.  

Advance Estimate of GDP for the Second Quarter of 2012 and Annual Revision

Today’s report shows that the economy posted its twelfth straight quarter of positive growth, as real GDP (the total amount of goods and services produced in the country) grew at a 1.5 percent annual rate in the second quarter of this year, according to the “advance” estimate released by the Bureau of Economic Analysis.  Over the last three years, the economy has expanded by 6.7 percent overall, and the private components of GDP have grown by 9.9 percent.  While the economy continues to move in the right direction, additional growth is needed to replace the jobs lost in the deep recession that began at the end of 2007

With today’s report, the BEA also released its annual revisions back to 2009.  While the revisions did not meaningfully change the pace of growth over that entire period, it is noteworthy that State and local government purchases were revised up in 2009, which is consistent with the Recovery Act cushioning the effect of the recession and helping to launch the recovery.  Since the Recovery Act funds have been phasing out, however, declining State and local government activity has subtracted from GDP.  Indeed, today’s report indicates that State and local government purchases have declined for 11 straight quarters, the longest streak ever recorded since the official record of quarterly data began in 1947.  

To strengthen economic growth and increase job creation, President Obama has proposed to Congress a plan that would help State and local governments retain and hire teachers and first responders, assist the construction sector and economy of tomorrow by rebuilding and modernizing our Nation’s infrastructure, and would give small businesses tax cuts to encourage them to increase payroll.  President Obama also proposed extending tax cuts to protect middle class families and virtually every small business owner from getting a tax increase at the beginning of next year.  The Senate passed the President’s plan this week and President Obama has said that as soon as the House will act he will sign it right away in order to give certainty and security to middle class families. Extending these tax cuts would provide more certainty for the economy for 98 percent of American families and 97 percent of small business owners. 

Transitioning Our Service Members

In August 2011, President Obama visited the Washington Navy Yard to discuss his plans to ensure that all of America’s veterans have the support they need and deserve when they leave the military, look for a job, go to school, and enter the civilian workforce. Our service members receive training of the highest quality to ensure they have the skills necessary to protect our country, yet service members who are preparing to leave the military lack access to expansive, personalized training and counseling necessary for success in the civilian sector. That is why, as part of his August address, the President directed the Departments of Defense and Veterans Affairs to lead a task force to develop a career-ready military and design a “reverse boot camp” for separating service members.

On July 23, 2012, President Obama addressed the VFW in Reno, Nevada and announced the first major re-design of the military’s Transition Assistance Program (TAP) since the program’s inception over 20 years ago. Previously, TAP was a voluntary, one-size fits all program. Many service members complained of that the workshops were “death by PowerPoint” and did not provide the interactive education and training required to be prepared to join civilian life. Under the President’s new transition program, Transition GPS, our military will no longer feel as if they are in a one-size-fits-all program. 

Attracting Investment in America Creates New Jobs

Acting Assistant Secretary for Economic Development Matt Erskine joined Illinois Governor Pat Quinn, Rochelle Mayor Chet Olsen, and Members of Congress at a ribbon-cutting ceremony for this new Nippon Sharyo railcar production facility in Rochelle, Illinois. (photo courtesy City of Rochelle)

Ed. note: This is cross-posted from The Commerce Blog.

Attracting foreign direct investment (FDI) to the United States, and the jobs that come with it, has been a priority of the Obama administration since it came into office. Business programs from every federal agency have been thoroughly ramped up, and a new initiative targeting foreign companies thinking about locating in the United States, SelectUSA, was launched in 2011.

The United States is already the largest recipient of FDI in the world. In 2010, such investment totaled $228 billion, up from $153 billion in 2009, supporting more than five million jobs throughout the country. Those workers made up 4.7 percent of total private-sector employment in the United State, with an annual payroll of $410 billion.

Success in attracting FDI doesn’t happen without a lot of hard, collaborative work on the part of states, municipalities, development agencies, and the federal government. I saw an excellent example of this today in the city of Rochelle, Illinois, where I participated in a ribbon-cutting ceremony to mark the opening of a new manufacturing facility for Nippon Sharyo U.S.A., the U.S. subsidiary of a Japanese manufacturer of railcars.

Nippon Sharyo has a long history of selling passenger railcars here in the United States. With the opening of this new plant in Rochelle, however, the company will be able to expand its U.S. operations, lower production costs, comply with the “Made in America” requirements of many of its buyers, and—most important to the economy here—create 250 new jobs.

Railroad Industry Commits to Hiring 5,000 Veterans in 2012

Ed note: This post was originally published on FastLane, the official blog of the U.S. Department of Transportation

I’ve written before about how veterans have the right skills and training for successful careers in transportation as a result of their service. And at DOT, helping our veterans find work strengthening America’s transportation system is a commitment we are proud to fulfill.

That’s why yesterday, I was proud to join Association of American Railroads (AAR) President and CEO Ed Hamberger and Joining Forces Executive Director Brad Cooper to announce that 500 companies and organizations from America's railroad industry will hire more than 5,000 veterans in 2012.

Participants in this outstanding initiative include freight, inter-city passenger, and commuter railroads, as well as rail supply companies represented by AAR, and I thank them for of their commitment to America's heroes.

Hiring experienced military men and women into the railroad industry is not a new practice. For nearly two centuries, rail manufacturers and operators have recognized that our veterans bring a wealth of skills that translate from military service to successful railroad careers.  In fact, 25 percent of the industry’s current workforce has military service.

President Obama Signs Bill to Create Jobs, Restore America's Transportation System

Ed. Note: This is a cross-post from Fast Lane, Secretary of Transportation Ray LaHood's official blog

Last Friday afternoon, President Obama signed legislation that will put thousands of construction workers on job sites across the country and supports our commitment to restoring America's infrastructure.

This transportation bill, Moving Ahead for Progress in the 21st Century (MAP-21), will sustain our Highway Trust Fund and provide states and communities with two years of steady funding to build needed roads, bridges, and transit systems. It also builds on DOT's efforts to improve safety across all forms of transportation and to make progress on transportation alternatives as we have done during the last three years.

President Barack Obama signs HR 4348, the Transportation and Student Loan Interest Rate bill during a ceremony in the East Room of the White House. June 7, 2012. (Official White House Photo by Lawrence Jackson)

Detroit Hosts U.S.'s Largest Veteran Hiring Fair

Last week, I had the privilege of joining the leadership of the Department of Veterans Affairs and thousands of  veterans in Detroit for the largest veteran hiring fair in America this year.   

The result: More than 1,300 veterans have already been offered jobs… and the process is still ongoing.

This extraordinary effort builds on the 90,000 veterans and military spouses that have been hired in the last year through First Lady Michelle Obama and Dr. Jill Biden’s Joining Forces initiative. 

Job opportunities were available well beyond Detroit, with more than 200 employers across private and government sectors participating in the three day event. Veterans like Charles Emerson, who served in Afghanistan, came to Detroit  seeking employment opportunities. Emerson drove all the way from Virginia and, after interviewing with a VA Medical Center in Wisconsin, was offered a job starting in September.   

DOT Launches Web Portal for Veterans Seeking Transportation Jobs

Ed note: This post was first published on Fastlane, the official blog of the Department of Transportation

President Obama has asked that we serve our veterans as well as they’ve served us, and we at DOT are proud to answer the President’s challenge. That’s why today, in conjunction with the U.S. Department of Veterans Affairs, we’re launching a web portal to help veterans find transportation jobs in the private sector. 

Our veterans have the skills and experience to help rebuild America, and we want to put them to work in the skies, on the roads, and throughout our transit systems.

Translating Veterans' Skills into Veterans' Jobs

America’s veterans are national and civic assets. Veterans bring extraordinary skills and experience to the civilian work force when they leave the work force – and it's clear that companies want to hire veterans because it’s good for their bottom line.

But translating one’s military experience into language that is easily understood by civilian employers can sometimes be one of the most difficult tasks a veteran in transition faces. Let’s use me as an example: I’ve been in the Navy for 27 years -- my major skill sets are: driving warships, firing Tomahawk missiles and finding stealthy submarines in the ocean’s depths. Let’s face it, while those talents work well in the Navy, there just aren’t a lot of companies who need those specific skills.

The good news is: organizations and companies throughout America are stepping up to help with veterans’ “skill translation” -- and the timing is important: more than 1,000,000 veterans will be transitioning out of the military and into the civilian workforce in the coming years.

Last November, through the President’s leadership, the White House coordinated a public-private effort with the Departments of Defense, the Department of Veterans Affairs, and the Department of Labor -- along with major tech companies -- to establish the Veterans Job Bank, a single site with a built-in skills translator and more than 800,000 jobs for veterans today.