Category : Labor/Labor Unions/Labor Market

Less Active at Work, Americans Have Packed on Pounds

Looking beyond poor eating habits and a couch-potato lifestyle, a group of researchers has found a new culprit in the obesity epidemic: the American workplace.

A sweeping review of shifts in the labor force since 1960 suggests that a sizable portion of the national weight gain can be explained by declining physical activity during the workday. Jobs requiring moderate physical activity, which accounted for 50 percent of the labor market in 1960, have plummeted to just 20 percent.

The remaining 80 percent of jobs, the researchers report, are sedentary or require only light activity. The shift translates to an average decline of about 120 to 140 calories a day in physical activity, closely matching the nation’s steady weight gain over the past five decades, according to the report, published Wednesday in the journal PLoS One.

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Posted in * Culture-Watch, * Economics, Politics, Dieting/Food/Nutrition, Economy, Health & Medicine, History, Labor/Labor Unions/Labor Market, Psychology

Federal Reserve Board Member Elizabeth Duke–Research, Policy, and the Future of Financial Education

The financial crisis and the slow recovery from it has obviously had a dramatic impact on the financial decisions made by American families. Many now have fewer financial resources and limited options. The pace and timing of their saving and investing life cycle has also been disrupted….

In addition, starting salaries for recent college graduates have also declined, which means that young Americans who are employed will have fewer resources for saving and investing than their predecessors. Young people are living with their parents longer, which helps conserve their limited resources but likely places a strain on their parents’ budgets.

Also troubling is research showing that many consumers who should be saving for retirement instead have been forced to take hardship withdrawals from their 401(k) plans….

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Posted in * Culture-Watch, * Economics, Politics, Consumer/consumer spending, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market, Personal Finance, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, Young Adults

(IBD) Slow Growth Normal For Post-Financial Crisis Recoveries

Is history repeating itself?

Recent data suggest the current economic recovery is both sluggish and slowing, with unemployment stubbornly high.

But that’s entirely consistent with the pattern of most global and country-specific financial crises.

A detailed study of three global contractions and 15 country-specific financial crises has found GDP growth, unemployment and housing prices all suffered for a decade or more.

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Posted in * Culture-Watch, * Economics, Politics, Consumer/consumer spending, Corporations/Corporate Life, Economy, History, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

The Archbishop of York pays a visit to Sheffield steelworks

Dr John Sentamu, the Archbishop of York and the Bishop of Sheffield, toured Sheffield Forgemasters for the first time for a look around the 200-year-old steelworks led by chief executive Graham Honeyman and non-executive director Peter Birtles.

During the visit the Archbishop met some of the 850 employees and young apprentices that work at the 63-acre site, with discussions about the manufacturing sector as a whole and the history of Forgemasters.

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Posted in * Anglican - Episcopal, * Culture-Watch, * Economics, Politics, Anglican Provinces, Archbishop of York John Sentamu, Church of England (CoE), Economy, Labor/Labor Unions/Labor Market, Religion & Culture

The Economist–Don't bully Boeing, Barack

Labour unions hate right-to-work laws, and are hoping that the NLRB will undermine them. They should be careful what they wish for. The NLRB’s line of reasoning would make it potentially illegal to build a new factory in a right-to-work state if you already operate one in a heavily unionised state””creating a powerful incentive never to do business in a heavily unionised state in the first place. It would be safer to make things only in places like South Carolina, or perhaps south China.

The NLRB is an autonomous body, but its board members are appointed by the president. Under a Democratic president, American businesses expect a more pro-union line, but the agency’s recent militancy is shocking, reminiscent of “loony-left” posturing in Britain in the 1970s. Not only does the agency in effect claim the power to tell firms where they may build factories. It is also suing two states (Arizona and South Dakota) where voters have decided that workers should be guaranteed a secret-ballot election before their workplace is unionised. Mr Obama has so far said nothing about any of these cases. The president claims he understands business. Condemning the NLRB would be a good way to prove it.

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Posted in * Culture-Watch, * Economics, Politics, * South Carolina, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market, Law & Legal Issues, Office of the President, Politics in General, President Barack Obama, State Government, The U.S. Government

Many College Graduates Find a Tough Job Market

The individual stories are familiar. The chemistry major tending bar. The classics major answering phones. The Italian studies major sweeping aisles at Wal-Mart.

Now evidence is emerging that the damage wrought by the sour economy is more widespread than just a few careers led astray or postponed. Even for college graduates ”” the people who were most protected from the slings and arrows of recession ”” the outlook is rather bleak.

Employment rates for new college graduates have fallen sharply in the last two years, as have starting salaries for those who can find work. What’s more, only half of the jobs landed by these new graduates even require a college degree, reviving debates about whether higher education is “worth it” after all.

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Posted in * Culture-Watch, * Economics, Politics, Corporations/Corporate Life, Economy, Education, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, Young Adults

South Carolina House OKs Amazon deal

After a dramatic turnaround Wednesday in the House, the battle to win a prized tax incentive to lure Amazon.com moves to the state Senate, where the online retailer’s support has not been tested.

A 97-20 tally ”” aided by 49 legislators, mostly Republicans, who switched their vote ”” handed the Seattle-based company a real shot at receiving a five-year exemption from collecting state sales tax on each purchase by South Carolina shoppers. Last month, the House refused to grant the incentive on a 71-47 vote, which halted the project.

The vote came after Amazon sweetened its offer Tuesday night with an additional 751 jobs and $35 million more in investment, said Rep. Kenny Bingham, R-Lexington, who became the House point man in the high-stakes battle.

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Posted in * Culture-Watch, * Economics, Politics, * South Carolina, Blogging & the Internet, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market, Politics in General, State Government

(AP) All work, no pay? Spaniards trying to endure it

“There are a lot of people getting up in the morning and going to work and not getting paid,” said Gayle Allard, a labor market expert at IE Business School in Madrid.

It’s a phenomenon seen in eastern Europe as well, with workers in countries like Serbia, Bosnia, and Croatia waiting months, in some cases years, for a paycheck from cash-strapped employers. But Spain is one of Europe’s richest countries, one with recent memories of a giddy economic boom ”” so the sight of workers toiling without pay will come as a deeper shock.

Experts say there’s no way to tell how many Spaniards are in such straits. But they say the number is significant and could rise after local elections this month, when debt-ravaged local governments are expected to reveal even bigger budget woes. Thousands of small and midsize companies that employ people like Garcia rely on these governments for contracting work.

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Posted in * Economics, Politics, * International News & Commentary, Economy, Europe, Labor/Labor Unions/Labor Market, Spain

A Brutal Job Market for Current College Graduates

The brutal job market brought on by the recession has been hard on everyone, but especially devastating on the youngest members of the labor force.

About 60% of recent graduates have not been able to find a full-time job in their chosen profession, according to job placement firm Adecco.

And for those just entering the workplace, a bout of long-term unemployment can affect their career plans for years to come.

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Posted in * Culture-Watch, * Economics, Politics, Economy, Education, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, Young Adults

Americans shed mortgage debt at record pace

“This is a form of economic stimulus that goes to Main Street rather than Wall Street,” says Nicholas Carroll, a journalist on consumer finance and author of Walk Away From Debt for a Better Future. When freed from a mortgage payment, people’s first purchases tend to be necessities, such as socks and underwear, he says.

Homeowners have trimmed interest payments alone by 11% ”” or $67 billion a year ”” from the peak in 2008, according to the Bureau of Economic Analysis (BEA). The savings come equally from grabbing lower interest rates and reducing what’s owed by paying down principal or defaulting on loans.

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Posted in * Economics, Politics, Consumer/consumer spending, Economy, Labor/Labor Unions/Labor Market, Personal Finance

(WSJ) Jim McNerney–Boeing Is Pro-Growth, Not Anti-Union

(Please note that this also ran on the op-ed of the local paper here yesterday since it is such a huge story down here in the greater Charleston, South Carolina area. But it is anything but just a local story; recall that Philip Greenspun of Harvard Law school called it the biggest U.S. economic story of the year–KSH).

Deep into the recent recession, Boeing decided to invest more than $1 billion in a new factory in South Carolina. Surging global demand for our innovative, new 787 Dreamliner exceeded what we could build on one production line and we needed to open another….

Eighteen months later, a North Charleston swamp has been transformed into a state-of-the-art, green-energy powered, 1.2 million square-foot airplane assembly plant. One thousand new workers are hired and being trained to start building planes in July….

Yet the National Labor Relations Board (NLRB) believes it was a mistake and that our actions were unlawful. It claims we improperly transferred existing work, and that our decision reflected “animus” and constituted “retaliation” against union-represented employees in Washington state. Its remedy: Reverse course, Boeing, and build the assembly line where we tell you to build it.

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Posted in * Culture-Watch, * Economics, Politics, * South Carolina, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market, Law & Legal Issues, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

David Brooks–The Missing Fifth

…energy has always been…[America’s] saving feature.

So Americans should be especially alert to signs that the country is becoming less vital and industrious. One of those signs comes to us from the labor market. As my colleague David Leonhardt pointed out recently, in 1954, about 96 percent of American men between the ages of 25 and 54 worked. Today that number is around 80 percent. One-fifth of all men in their prime working ages are not getting up and going to work.

According to figures from the Organization for Economic Cooperation and Development, the United States has a smaller share of prime age men in the work force than any other G-7 nation. The number of Americans on the permanent disability rolls, meanwhile, has steadily increased. Ten years ago, 5 million Americans collected a federal disability benefit. Now 8.2 million do. That costs taxpayers $115 billion a year, or about $1,500 per household. Government actuaries predict that the trust fund that pays for these benefits will run out of money within seven years.

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, America/U.S.A., Economy, Labor/Labor Unions/Labor Market, Men, Psychology

April Job Data Is Strong, but Some Doubt Trend Can Last

While better than expected, Friday’s employment numbers showed that the national economy still had a long way to go to fully recover. Though down from its peak of 10.1 percent in late 2009, April’s unemployment rate reflects only those Americans who are still actively looking for work.

As such, economists said the April jobs report was part of a larger picture of the economy that remained mixed. The rise in the unemployment rate reflects the survey of households, which indicated a 190,000 decline in employment in April. And recent data on initial jobless claims and other employment indicators have been weak.

“Millions of people are unemployed and many have left the labor market and given up,” Mr. Shapiro said. “Against that we are maybe creating 244,000 jobs. That is all well and good but it just shows you how much further we have to go to make a dent into what has happened in the labor market.”

“It gets the basic debate out there about the economy,” he added. “Is all we have seen the product of government stimulus, and are all the problems coming back or not?”

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Posted in * Economics, Politics, Consumer/consumer spending, Corporations/Corporate Life, Economy, Federal Reserve, House of Representatives, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Office of the President, Personal Finance, Politics in General, President Barack Obama, Senate, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

David Leonhardt–On the Economy, A Mission Not Yet Accomplished

It’s obviously been a good week for the Obama administration. But it comes at a dangerous time, for both the administration and the economy. The excitement over tracking down Osama bin Laden could end up making the president and his advisers less panicked over the state of the economy. And they should be a little panicked.

For the second straight year, the recovery seems to be at risk of stalling. The economy grew at an annual rate of only 1.8 percent last quarter ”” eerily similar to the 1.7 percent growth last spring, just when job growth started slowing down. Fully 80 percent of people say the economy is in fairly bad or very bad shape, according to a New York Times/CBS Poll last month. More people say it’s getting worse than getting better, the opposite of a few months ago.

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Posted in * Culture-Watch, * Economics, Politics, Budget, Consumer/consumer spending, Corporations/Corporate Life, Economy, Federal Reserve, House of Representatives, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Office of the President, Politics in General, President Barack Obama, Psychology, Senate, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government

The Economist Leader–What's wrong with America's economy?

The first failing, of which Mr Obama in particular is guilty, is misstating the problem. He likes to frame America’s challenges in terms of “competitiveness”, particularly versus China. America’s prosperity, he argues, depends on “out-innovating, out-educating and out-building” China. This is mostly nonsense. America’s prosperity depends not on other countries’ productivity growth, but on its own (actually pretty fast) pace. Ideas spill over from one economy to another: when China innovates Americans benefit.

Of course, plenty more could be done to spur innovation. The system of corporate taxation is a mess and deters domestic investment. Mr Obama is right that America’s infrastructure is creaking (see article). But the solution there has as much to do with reforming Neanderthal funding systems as it does with the greater public spending he advocates. Too much of the “competitiveness” talk is a canard””one that justifies misguided policies, such as subsidies for green technology, and diverts attention from the country’s real to-do list.

High on that list is sorting out America’s public finances….

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, America/U.S.A., Consumer/consumer spending, Corporations/Corporate Life, Economy, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Psychology, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

Gallup–More Than Half Still Say U.S. Is in Recession or Depression

More than half of Americans (55%) describe the U.S. economy as being in a recession or depression, even as the Federal Open Market Committee (FOMC) reports that “the economic recovery is proceeding at a moderate pace.” Another 16% of Americans say the economy is “slowing down,” and 27% believe it is growing.

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Posted in * Culture-Watch, * Economics, Politics, Consumer/consumer spending, Corporations/Corporate Life, Economy, Federal Reserve, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Politics in General, Psychology, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government

Philip Greenspun–Biggest U.S. economic story of the year: Federal Government v. Boeing

Buried in the ocean of news regarding our three wars has been what I think is the biggest U.S. economic story of the year: the federal government’s lawsuit against Boeing, seeking to prevent the opening of its $2 billion factory in South Carolina, for which 1000 workers have reportedly already been hired (in case you missed the news altogether: story, story, story).

Whatever the ultimate decision in the lawsuit, the very existence of the dispute will change the business landscape here in the U.S. for the next decade or two.

Read it all.

Posted in * Culture-Watch, * Economics, Politics, * South Carolina, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market, Law & Legal Issues, The U.S. Government

David Brooks–The Big Disconnect in America

There are structural problems in the economy as growth slows and middle-class incomes stagnate. There are structural problems in the welfare state as baby boomers spend lavishly on themselves and impose horrendous costs on future generations. There are structural problems in energy markets as the rise of China and chronic instability in the Middle East leads to volatile gas prices. There are structural problems with immigration policy and tax policy and on and on.

As these problems have gone unaddressed, Americans have lost faith in the credibility of their political system, which is the one resource the entire regime is predicated upon. This loss of faith has contributed to a complex but dark national mood. The country is anxious, pessimistic, ashamed, helpless and defensive.

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Posted in * Culture-Watch, * Economics, Politics, Budget, Consumer/consumer spending, Corporations/Corporate Life, Economy, Energy, Natural Resources, Foreign Relations, Globalization, History, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Politics in General, Psychology, The National Deficit, The U.S. Government

America's Mood at Lowest Level in Two Years, Poll Shows

Americans are more pessimistic about the nation’s economic outlook and overall direction than they have been at any time since President Obama’s first two months in office, when the country was still officially ensnared in the Great Recession, according to the latest New York Times/CBS News poll.

Amid rising gas prices, stubborn unemployment and a cacophonous debate in Washington over the federal government’s ability to meet its future obligations, the poll presents stark evidence that the slow, if unsteady, gains in public confidence earlier this year that a recovery was under way are now all but gone.

Capturing what appears to be an abrupt change in attitude, the survey shows that the number of Americans who think the economy is getting worse has jumped 13 percentage points in just one month. Though there have been encouraging signs of renewed growth since last fall, many economists are having second thoughts, warning that the pace of expansion might not be fast enough to create significant numbers of new jobs.

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, America/U.S.A., Consumer/consumer spending, Corporations/Corporate Life, Economy, House of Representatives, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Office of the President, Personal Finance, Politics in General, President Barack Obama, Psychology, Senate

Local Paper Front Page–Is Boeing in trouble in South Carolina?

Boeing Co.’s $750 million aircraft plant in North Charleston is at the heart of a growing labor rift pitting the aerospace giant against one of its biggest unions and now a federal agency.

The National Labor Relations Board sued the company Wednesday, saying Boeing shifted some of its 787 Dreamliner production to South Carolina partly to retaliate against the International Association of Machinists and Aerospace Workers for past strikes in Washington state.

The NLRB is seeking a court order that would require Boeing to maintain its second 787 assembly line in the Pacific Northwest, an IAMAW stronghold. If successful, that could stop Boeing from building the plane in North Charleston.

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Posted in * Economics, Politics, * South Carolina, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market

NY Times Magazine–Is Sitting a Lethal Activity?

…[James Levine, a researcher at the Mayo Clinic]’s initial question ”” which he first posed in a 1999 study ”” was simple: Why do some people who consume the same amount of food as others gain more weight? After assessing how much food each of his subjects needed to maintain their current weight, Dr. Levine then began to ply them with an extra 1,000 calories per day. Sure enough, some of his subjects packed on the pounds, while others gained little to no weight.

“We measured everything, thinking we were going to find some magic metabolic factor that would explain why some people didn’t gain weight,” explains Dr. Michael Jensen, a Mayo Clinic researcher who collaborated with Dr. Levine on the studies. But that wasn’t the case. Then six years later, with the help of the motion-tracking underwear, they discovered the answer. “The people who didn’t gain weight were unconsciously moving around more,” Dr. Jensen says. They hadn’t started exercising more ”” that was prohibited by the study. Their bodies simply responded naturally by making more little movements than they had before the overfeeding began, like taking the stairs, trotting down the hall to the office water cooler, bustling about with chores at home or simply fidgeting. On average, the subjects who gained weight sat two hours more per day than those who hadn’t.

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Posted in * Culture-Watch, * Economics, Politics, Dieting/Food/Nutrition, Economy, Health & Medicine, Labor/Labor Unions/Labor Market

(USA Today) More Americans leaving workforce

Only 45.4% of Americans had jobs in 2010, the lowest rate since 1983 and down from a peak of 49.3% in 2000. Last year, just 66.8% of men had jobs, the lowest on record.

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Posted in * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

At California Mental Hospitals, Fear Is Part Of The Job

At a recent demonstration held by Napa employees demanding better safety measures, finding people who had been attacked by patients wasn’t difficult.

There’s Chris Cullen, a psychiatric technician who says he was punched in the face; and Zach Hatton, a recreation therapist who recounted two injuries. “I was punched in the face about a year and a half ago,” Hatton says, “and then my wrist was twisted up pretty badly and just has never healed.”

Dr. Richard Frishman, a psychiatrist, was attacked while interviewing a new patient. “He came flying across the table, fists flying,” Frishman says. “He was able to hurl me against the wall where I struck my head and fractured my wrist.”

Read or listen to it all.

Posted in * Culture-Watch, * Economics, Politics, Economy, Health & Medicine, Labor/Labor Unions/Labor Market, Law & Legal Issues, Mental Illness, Politics in General, Psychology, State Government, Violence

In a Survey of Bosses, Good News for Job Seekers

American companies say they plan to hire. If they do as they say, the unemployment picture will brighten considerably.

In a quarterly survey of chief executives, the Business Roundtable found that 52 percent of companies planned to hire workers in the United States over the next six months, while just 11 percent said they expected to reduce employment.

Never before have so many chief executives said they planned to hire, or so few said they planned to cut payrolls. The survey has been taken every three months since late 2002.

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Posted in * Economics, Politics, Corporations/Corporate Life, Economy, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

(WSJ) India Graduates Millions, but Too Few Are Fit to Hire

Call-center company 24/7 Customer Pvt. Ltd. is desperate to find new recruits who can answer questions by phone and email. It wants to hire 3,000 people this year. Yet in this country of 1.2 billion people, that is beginning to look like an impossible goal.

So few of the high school and college graduates who come through the door can communicate effectively in English, and so many lack a grasp of educational basics such as reading comprehension, that the company can hire just three out of every 100 applicants.

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Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, Asia, Corporations/Corporate Life, Economy, Education, India, Labor/Labor Unions/Labor Market, Science & Technology

(RNS) Supreme Court to Weigh Churches' Employment Rights

The Supreme Court agreed Monday to consider whether a teacher who was fired from a religious school is subject to a “ministerial exception” that can bar suits against religious organizations.

The case involves an employment dispute between a Michigan school and a teacher who is defended by the Equal Employment Opportunity Commission.

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Posted in * Culture-Watch, * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, Law & Legal Issues, Religion & Culture

Stephen Moore–The Proportion of the American Workforce Related to Government is Distressingly Large

If you want to understand better why so many states””from New York to Wisconsin to California””are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.

It gets worse. More Americans work for the government than work in construction, farming, fishing, forestry, manufacturing, mining and utilities combined. We have moved decisively from a nation of makers to a nation of takers. Nearly half of the $2.2 trillion cost of state and local governments is the $1 trillion-a-year tab for pay and benefits of state and local employees. Is it any wonder that so many states and cities cannot pay their bills?

Every state in America today except for two””Indiana and Wisconsin””has more government workers on the payroll than people manufacturing industrial goods.

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Posted in * Economics, Politics, * International News & Commentary, America/U.S.A., Budget, City Government, Economy, Labor/Labor Unions/Labor Market, Pensions, Personal Finance, Politics in General, State Government, Taxes, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government

States Pass Budget Pain to Cities

The state budget squeeze is fast becoming a city budget squeeze, as struggling states around the nation plan deep cuts in aid to cities and local governments that will almost certainly result in more service cuts, layoffs and local tax increases.

The cuts are widespread. Ohio plans to slash aid to Columbus, Cleveland, Cincinnati and other cities and local governments by more than a half-billion dollars over the next two years under the budget proposed last week by its new Republican governor, John R. Kasich. Nebraska passed a law this month eliminating direct state aid to Omaha and other municipalities. The governors of Wisconsin and Michigan have called for sending less money to Milwaukee, Detroit and other local governments.

And it is not only Republicans who are cutting aid to cities: Gov. Andrew M. Cuomo of New York, a Democrat, decided not to restore $302 million in aid to New York City that was cut last year, while Gov. Deval Patrick of Massachusetts, another Democrat, has called for cutting local aid to Boston and other cities by some $65 million.

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Posted in * Economics, Politics, * International News & Commentary, America/U.S.A., City Government, Consumer/consumer spending, Corporations/Corporate Life, Economy, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Politics in General, State Government, Taxes, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

(Fortune) Katherine Lewis: Unpaid jobs: The new normal?

With nearly 14 million unemployed workers in America, many have gotten so desperate that they’re willing to work for free. While some businesses are wary of the legal risks and supervision such an arrangement might require, companies that have used free workers say it can pay off when done right.

“People who work for free are far hungrier than anybody who has a salary, so they’re going to outperform, they’re going to try to please, they’re going to be creative,” says Kelly Fallis, chief executive of Remote Stylist, a Toronto and New York-based startup that provides Web-based interior design services. “From a cost savings perspective, to get something off the ground, it’s huge. Especially if you’re a small business.”

In the last three years, Fallis has used about 50 unpaid interns for duties in marketing, editorial, advertising, sales, account management and public relations. She’s convinced it’s the wave of the future in human resources. “Ten years from now, this is going to be the norm,” she says.

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Posted in * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

In a Southern California Suburb, Layoffs for Nearly Half the Staff

To solve a looming pension crisis and budget gap, city officials here said, they needed to take drastic action. And everyone agrees on one thing: they did.

Nearly half of this city’s workers were told late last week that, come September, they would probably be out of a job. Nearly every city department will be eliminated. More than a dozen tasks will be outsourced, including graffiti removal, firefighting, building maintenance and street cleaning.

Unlike the drama that played out over the last two months in Madison, Wis., the battle over public workers in this bustling suburb and upscale shopping mecca in the heart of Orange County is happening at lightning speed.

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Posted in * Economics, Politics, City Government, Economy, Labor/Labor Unions/Labor Market, Politics in General, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--