Volcker Predicts Slow Drop in Unemployment Rate

Former Federal Reserve Chairman Paul Volcker spoke before the National Association for Business Economics in Washington after receiving the organization's first lifetime achievement award for economic policy.

The economy “is growing, but not fast enough to reduce the unemployment rate in the way we would like to see,” Volcker said. “It’s declining because the labor force is not rising, and we’re getting a little more employment, but it’s a long way from being satisfactory.”

The U.S. unemployment rate dropped to 7.5 percent in April from 7.6 percent in March and 8.1 percent a year earlier. The rate was last below 6 percent in July 2008.

Bills to Repeal Sequestration

On Tuesday, April 23, 2013, Senate Majority Leader Harry Reid (D-NV) introduced S. 788, legislation to repeal sequestration for the remainder of fiscal year 2013 and replace the $85 billion in across-the-board cuts with savings from the wars in Iraq and Afghanistan.

Senate Minority Leader Mitch McConnell (R-KY) also introduced legislation, S.799, that would require alternative spending cuts equal to the amount called for under sequestration by May 15, 2013. The measure also would allow the alternative spending plan submitted by the Administration to be blocked if Congress adopted a resolution of disapproval to override.

Both proposals put forward by the Senate Majority and Minority seek to address sequestration in a more comprehensive manner as the effects of sequestration are being felt around the country. Congress easily approved legislation ending furloughs of air-traffic controllers that have delayed hundreds of flights. The U.S. House approved the measure in a 361-41 vote, one day after the Senate agreed to the bill.

On Monday, May 6, 2013, U.S. Department of Labor Employment and Training Administration Assistant Secretary Jane Oates announced her resignation, effective May 31, 2013. 

 

In her resignation letter, Assistant Secretary Oates thanked the staff at U.S. Department of Labor for their efforts during her tenure specifically mentioning the distribution of $1 billion in grants under the American Recovery and Reinvestment Act, the Department’s response to the BP oil spill and Hurricane Sandy, the development of new electronic tools for job seekers and businesses and working with states in the implementation of significant changes to the unemployment insurance program contained in the Middle Class Tax Relief and Job Creation Act of 2012.

 

Assistant Secretary Oates has been a long-time friend to IAWP, keynoting several of our International Educational Conferences.  IAWP wishes Assistant Secretary Oates the best in the future and we hope our paths cross again.