Extension of UI and Payroll Tax Cut Approved

Last week, congressional leaders in the U.S. House of Representatives, led by Speaker John Boehner (R-OH), agreed to accept a temporary two month extension of the expiring Emergency Unemployment Compensation Act (EUC08) program and Social Security payroll tax cut. Passage came swiftly in both the House and Senate last Friday morning as the compromise legislation was passed in both Chambers by voice vote.

In announcing the agreement, House Speaker John Boehner said Thursday, “Senator Reid and I have reached an agreement that will ensure taxes do not increase for working families on January 1 while ensuring that a complex new reporting burden is not unintentionally imposed on small-business job creators.”

Senate Majority Leader Harry Reid (D-NV) said Thursday evening he was “grateful that the voices of reason have prevailed,” and added that “I look forward to appointing members of my caucus to continue negotiations toward a year-long agreement. Two months is not a long time, and I expect the negotiators to work expeditiously to forge yearlong extensions of these critical policies.”

The House Majority, which rejected a similar compromise earlier last week, came under increasing political pressure over the week – much of it from its own party – to accept the two-month extension that already passed the Senate. It was reported House Speaker Boehner was determined to settle the issue and announced the decision on a conference call to House Members, ending a partisan fight that threatened to keep Congress and President Obama in town through Christmas.

When Congress returns, attention will turn to the conference committee assigned to hammer out a deal between the two chambers. But the differences remain large over how to pay for the deal with Republicans looking to areas such as freezing wages of federal workers and Democrats still considering increasing taxes on millionaires.

Best Wishes for the Holidays

As 2011 comes to an end I look back and reflect.  It's been a year of personal sadness and happiness.  My mother passed away this year and my first grandchild, Lillian was born.  One thing that has remained constant in my life this last year is IAWP.

I have worked this last year as International Vice President and President Elect to upgrade the Workforce Professional Development Program to an online process, which will launch this spring.  I also am proud of the strategic plan and reorganization that I helped developed and was passed by the board of directors in September.  The other major initiative I headed up was the retooling of the IAWP membership and individual/group awards.

I feel proud to work along side so many workforce professionals I call my friends.  I wish everyone safe and happy holidays and may all your hopes and dreams come true.

UI Benefit Claims Drop to Lowest Level Since 2008

The number of Americans filing for first-time unemployment benefits dropped to their lowest level since April 2008, boosting optimism in the job market.

In a surprise drop, 364,000 people filed initial jobless claims in the week ended Dec. 17 according to the U.S, Labor Department. That was a decrease of 4,000 from the prior week. Economists were expecting claims to rise to 380,000.

Last week, claims fell to their lowest level since May 2008, bringing hopes that the labor market could finally be improving meaningfully. A level below 400,000 often signals job growth strong enough to lower the unemployment rate, many economists say.

Meanwhile continuing claims -- which include Americans filing for their second week of claims or more -- fell 79,000 to 3,546,000 in the week ended Dec. 10.

In November, the unemployment rate unexpectedly plummeted to to 8.6% -- its lowest rate in nearly three years. The dip provided optimism about economic growth.

Congress Approves Fiscal 2012 Budget

The House and Senate completed the fiscal 2012 appropriations process, passing a $915 billion spending measure late Friday in the House and Saturday morning in the Senate. President Obama signed into law a one-day continuing resolution (H J Res 94) that kept the government funded through Dec. 17.

The budget agreement ensures most U.S. Department of Labor (USDOL) programs will be funded at levels similar to fiscal 2011.  The conference agreement include the following:

• State set aside will not exceed five percent;
• Dislocated Workers State Grants reduced by $55 million;
• Workforce Innovation Grants reduce from approximately $100 million in the Senate bill to $50 million;
• Administration contingency funding for UI retains the same level. The Average Weekly Insured Unemployment (AWIU) is maintained at 4.832 million with an additional $28.6 million available for every 100,000 increase in the AWIU level;
• $4.094 million for State Unemployment Insurance and Employment Service Operations including a total of $60 million to conduct in-person reemployment and eligibility assessments (REA) and unemployment insurance improper payment reviews.

Near Agreement

Congressional leaders expressed optimism Thursday that agreement was near on extending this year's payroll tax cut, renewing unemployment benefits and averting a federal shutdown.

"We can extend payroll tax relief for American workers and create new jobs and keep the government running and, frankly, we can do it in a bipartisan way," House Speaker John Boehner, R-Ohio, told reporters, a turnabout from weeks of partisan sniping from both sides.

"No more show votes," Boehner said after praising earlier remarks by Senate Majority Leader Harry Reid, D-Nev., that lingering disagreements on a mammoth spending bill could be easily resolved. "It's just time to legislate."

Reid opened the Senate's morning session by saying he and the chamber's top Republican have held talks to resolve remaining disputes. With lawmakers itching to return home before the holidays, Reid said he and Senate Minority Leader Mitch McConnell, R-Ky., hope they can reach a deal "that would get us out of here in a reasonable time, in the next few days."

"We're confident, optimistic we'll be able to resolve both on a bipartisan basis," said McConnell, referring to one bill that would renew the payroll tax cut and jobless benefits, and a separate spending measure that would keep federal agencies open.

President Barack Obama applied pressure of his own, saying Congress "should not and cannot" go home until it had resolved the issues. "There's no reason why we shouldn't be able to extend these items, the payroll tax cut, U.I. before holidays." "There's no reason the government should shut down over this, and I expect all of us to do what's necessary in order to do the people's business and make sure that it's done before the end of the year."

In part, the turnabout reflected the calendar: 160 million Americans would get a sudden tax increase on Jan. 1 if the payroll tax cut was not renewed, and most government agencies would close this Saturday without agreement on spending legislation.

Happy Anniversary ODEP

Secretary of Labor Hilda L. Solis and Deputy Secretary of Labor Seth D. Harris today commemorated the Office of Disability Employment Policy's 10th anniversary by celebrating the positive impact of its policies and program initiatives with major leaders in the community. Featured speakers included Sen. Tom Harkin (Iowa); Rep. Steny Hoyer (Maryland); Kareem Dale, special assistant to the president for disability policy; Kathleen Martinez, assistant secretary of labor for ODEP and past assistant secretaries for the office.

Also participating were two of the visionaries behind ODEP's creation – Tony Coelho, chairman of the President's Committee on Employment of People with Disabilities from 1994 to 2001, and Becky Ogle, executive director of the Presidential Task Force on the Employment of Adults with Disabilities from 1998 to 2001.

"Thanks to ODEP's hard work, the conversation has shifted away from whether people with disabilities can work to what tools and supports are needed to assist them in doing so," said Secretary Solis. "The agency's policies, program and practices have opened doors to employment opportunities, education and strong partnerships that are helping people with disabilities live better, fuller lives."

ODEP was created within the Labor Department to make disability employment policy a permanent part of its overall employment agenda. In addition to working with other agencies across the department, ODEP's mission includes working with outside federal agency partners to develop national disability employment-related policy.

Among its many achievements, ODEP has collaborated with federal, state and community organizations to collect the first statistical data on employment rates of people with disabilities; made the One-Stop Career Centers system more accessible and welcoming to people with disabilities; launched the Add Us In initiative to improve employment opportunities with small businesses for people with disabilities; promoted customized employment as a strategy for employing people with disabilities who have complex needs; developed a comprehensive framework to improve youth transition outcomes; and worked with its federal agency partners in implementing the Obama administration's executive order to make the federal government a model employer in hiring individuals with disabilities.

In conjunction with the theme "Real People, Real Impact," today's program highlighted the career successes of youths and adults who have been the beneficiaries of ODEP's work.

"Today and every day, people with disabilities add significant value to America's workplaces and economy," Martinez said. Through ODEP's policies and practices, we are witnessing the move toward a more inclusive America, one rich with diversity where people with disabilities are recognized for the talents they bring."

For more information about today's program, ODEP and its initiatives to help individuals with disabilities transition into the workplace, visit http://www.dol.gov/odep.

Unemployed Americans with Disabilities May Get a Boost

Americans with disabilities, facing even higher hurdles than others finding jobs, would get a boost under an Obama administration plan to set new hiring procedures for government contractors.

The U.S. Department of Labor proposed a rule Thursday that would require most companies with federal contracts to set goals of having disabled workers make up 7 percent of their workforce.

Labor officials hailed the plan as an economic game-changer at a time when a staggering eight of 10 working-age Americans with disabilities are out of the workforce entirely.

The government long has used the leverage of federal spending to promote affirmative action in the hiring of women and minorities. The new rule would, for the first time, give similar treatment to people with disabilities.

Jobless Rate Update

U.S. Labor Secretary Hilda Solis said the drop in the unemployment rate shows the U.S. economy is recovering, and extending a cut in the payroll tax will help boost hiring and spending even more.

The jobless rate remains high and “the urgency is to do something now,” Solis said in a television interview.

The Labor Department today said the jobless rate fell to 8.6 percent in November, the lowest since March 2009, after employers last month added 120,000 jobs.

The government also revised to 100,000 the number of jobs companies added to their payrolls in October, up from the initial estimate of 80,000.

WIA Funding Update

The House and Senate have started negotiations on their final Fiscal Year 2012 Labor-HHS Appropriations bill.   One of the key decisions is whether to accept the House proposal to cut funding for Workforce Investment Act programs by roughly 75 percent by changing the funding cycle from a program year to a fiscal year basis. The Senate bill did not make any changes to the WIA funding cycle and maintains level funding for WIA formula programs.

Under the House Draft Bill, beginning:

* April 1, 2012, it would reduce WIA Youth Activities by 78 percent;

* July 1, 2012, it would reduce WIA Adult Employment and Training by 73 percent;

* July 1, 2012, it would reduce Dislocated Worker Employment and Training Activities by 94 percent; and

* July 1, 2012, it would reduce Dislocated Workers National Reserves by 81 percent.