This month’s jobs numbers report, showing a dismal 266,000 jobs added last month to the nation’s economy, has not surprised small business owners. School closures, erratic school schedules in states allowing students to return to the classroom, and nonstop unemployment benefits have kept potential employees home, studies show.
Just the day before the national numbers came out, the National Federation of Independent Business (NFIB) released its Jobs Report and its latest numbers confirm that there is a dearth of ready-to-work employees.
According to the NFIB report, a record 44% of all small business owners say they have job openings they could not fill, 22 points higher than the 48-year historical average, and two points higher than the 42% figure from March.
April is the third consecutive month with a record-high reading of unfilled job openings among small businesses, according to NFIB.
Even though most experts believe unemployment payments are suppressing the job pool, State Rep. David Cook of Globe has been pushing an increase in weekly benefits.
The federally-established Unemployment Insurance Benefits Program, administered by DES according to state law, provides unemployment benefits to persons unemployed through no fault of their own for up to 26 weeks and up to $540 per week or $2160 per month in untaxed paid benefit. During the COVID-19 crisis, beneficiaries did not have to prove they were actively looking for work.
That changed this week when Governor Ducey rescinded a March 2020 Executive Order that waived the requirement that an individual receiving employment benefits must be actively looking for work to receive the benefits.
Other governors are getting more aggressive in getting residents back to work. Montana Governor Greg Gianforte, citing a workforce shortage, announced he will use funds from the American Rescue Plan to incentivize people to become employed.
“While small businesses are glad to see Gov. Doug Ducey re-instating the active work search requirement to qualify for continued state unemployment benefits, more work needs to be done to get able workers off the unemployment rolls and back into one of the many available jobs in the private sector,” said Chad Heinrich, NFIB’s Arizona state director in a press release. “With April also setting a new 12-month high in small businesses raising wages, and a full one-fifth of additional owners planning future wage increases, hopefully, the private sector will soon be able to compete with the overwhelming price the federal government is paying able-workers to sit on the sidelines.”
NFIB Chief Economist Bill Dunkelberg says the “tight labor market is the biggest concern for small businesses who are competing with various factors such as supplemental unemployment benefits, childcare, and in-person school restrictions, and the virus. Many small business owners who are trying to hire are finding themselves unsuccessful and are having to delay the hiring or offer higher wages. Some owners are offering ‘show up’ bonuses for workers who agree to take the job and actually show up for work.”
On Friday, Ducey made a move to bring some relief on the childcare front by providing an additional $9 million in aid for child care providers throughout the state.
“Parents and families need access to safe, reliable, and high-quality child care, especially as Arizonans go back to work and job opportunities expand,” said Ducey. “With the additional funding announced today, we’re making sure more working families have access to that care. I’m grateful to all Arizonans working to ensure families and kids have the support and resources they need and am proud to celebrate Child Care Provider Appreciation Day.”
The CCWRR Grant Program provides immediate support to child care providers in hiring qualified staff and retaining existing staff. This grant program will help all regulated child care providers with recruitment and retention costs to support the child care workforce in Arizona. These funds are made available to Arizona through the Child Care and Development Fund CARES Act, 2020.
Child care centers and group homes must use grant funds for salaries and benefits for employees, and bonus incentives for hiring and retention. Group homes and family child care homes without staff, grant funds may be utilized for a variety of expenses including licensing fees, liability insurance, tuition and registration relief for families, lease and mortgage payments, utilities, classroom materials, and supplies.
While child care providers must apply and attest that they are open and providing child care services at the time of application and for the duration of the grant, grants are not competitive. Grant awards will be paid in one sum amount, with the distribution of payments initiated on June 24, 2021. Child care providers will have until September 30, 2021, to spend the grant funds.
In addition to the CCWRR Grant, the Department has also extended the Essential Workers Child Care Relief Scholarship through June 30, 2021, allowing essential workers and child care providers access to vital child care.
With more businesses reopening and bringing employees back to work, the U.S. economy is on firm footing and could see its fastest growth in more than three decades, National Retail Federation Chief Economist Jack Kleinhenz said today.
“While there is a great deal of uncertainty about how fast and far this economy will grow in 2021, surveys show an increase in individuals being vaccinated, more willingness to receive a vaccination, increased spending intentions and comfort with resuming pre-pandemic behaviors like shopping, travel and family gatherings,” Kleinhenz said. “This feel-better situation will likely translate into higher levels of household spending, especially around upcoming holidays like the Fourth of July and spending associated with back-to-work and back-to-school.”
“The consumer is nearly always the key driver in the economy, and with the consumer in good financial health, a sharp demand is expected to unfold over the coming months,” Kleinhenz said.
Kleinhenz’s remarks came in the May issue of NRF’s Monthly Economic Review, which
said NRF expects the economy to grow 6.6 percent this year, the highest level since 7.2 percent in 1984.
The report said the latest edition of the Federal Reserve’s Beige Book “affirms what the economic data has been signaling: U.S. growth is beginning to accelerate.” The Fed assessment and other data show unemployment benefits, government stimulus checks and tax refunds have provided a substantial increase in personal income and purchasing power. Consumers are “sitting on a stockpile of cash” that could become “a spring-loaded spending mechanism,” Kleinhenz said.
Among other favorable indicators, the $2.4 trillion saved by households during February alone was approximately twice the average monthly savings during pre-pandemic 2019 and comes on top of savings accumulated over the past year as consumers stayed home rather than dining out, traveling or attending sports and entertainment events.
In addition, use of consumer credit is up, with outstanding credit surging in February to its highest level since late 2017. The increase in borrowing “highlights a consumer who is growing more confident as the economy accelerates, job growth picks up and more states lift burdensome restrictions,” Kleinhenz said.
Kleinhenz cautioned that 2020’s “outsize swings” in economic data caused by the pandemic, hurricanes, wildfires and other events will make year-over-year comparisons difficult during 2021. Federal agencies have “tried their best with the information available” to make seasonal adjustments account for the swings, he said.
NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – is based on data from the Census Bureau, which released its annual revision of retail sales going back to 2013 last week. NRF has revised its numbers accordingly, and now shows 2020 retail sales of $4.02 trillion rather than the $4.06 trillion originally reported. But 2020 grew 6.9 percent over 2019 rather than 6.7 percent because 2019 was revised down to $3.76 trillion from $3.81 trillion.
The annual update is done to replace previously reported data with more accurate data and to benchmark numbers to the Census Bureau’s Annual Retail Trade Survey. Retail firms are required by law to complete the annual survey, while the monthly survey is voluntary and sometimes reflects estimates and incomplete or unaudited records rather than final numbers.
Even with the revisions, 2020 sales broke the previous record of 6.3 percent set in 2004 despite the pandemic. NRF has forecast that 2021 retail sales – excluding autos, gas and restaurants – will grow between 6.5 percent and 8.2 percent over 2020 to between $4.33 trillion and $4.4 trillion.
On Monday, Governor Doug Ducey rescinded a March 2020 Executive Order that waived the requirement that an individual receiving employment benefits must be actively looking for work in order to receive the benefits. Arizonans receiving unemployment benefits may continue to receive benefits, but under reinstated requirements, must show that they are actively looking for work.
The move was hailed by employers struggling to find employees.
According to the Governor’s Office, Arizona’s labor force currently is 100.09 percent compared to pre-pandemic levels, with more people employed in Arizona than before the pandemic.
Businesses are struggling to fill positions, especially those in the restaurant and hospitality sectors. The Governor’s Executive Order is intended to help fill those low-wage jobs.
TODAY: I issued an Executive Order to meet surging job demand and support job creators throughout Arizona as employment opportunities grow and the #COVID19 vaccine is available for anyone who wants it. 1/
The Arizona Department of Economic Security will begin enforcing the reinstated requirement the week of Sunday, May 23.
“A year out from the start of the pandemic, jobs and vaccines are readily available,” said Ducey. “Arizonans are ready to get back to work. Our economy is booming, jobs need filling, more than 2 million Arizonans are fully vaccinated, and vaccination appointments are available to anyone who wants one.”
“As President Reagan said, the best social program is a job,” the Governor added. “This statement rings true today. Unemployment benefits are still available to Arizonans who need them, but now that plenty of jobs are available, those receiving the benefits should be actively looking for work.”
“Southern Arizona businesses made many adjustments and sacrifices to weather the economic effects of the pandemic,” said Tucson Metro Chamber President and CEO Amber Smith. “Businesses cannot afford to weather another storm unable to fill positions. Now that vaccines are out far and wide, many businesses are scaling back up looking for employees. It’s important that we work to meet this job demand and get the word out that a variety of jobs are available.”
A February report released by the Arizona Office of Economic Opportunity is projecting strong job growth in the state over the next two years, with the largest gains happening in sectors hit hardest by the pandemic. Arizona is expected to gain more than 325,000 jobs between spring 2020 and the same time next year, a 5.5 percent annualized growth rate.
“Arizona continues to be a top travel destination for leisure visitors,” said Arizona Office of Tourism Director Debbie Johnson. “The tourism industry was hard-hit by the pandemic, but now that we have a better understanding of the virus and more people have been vaccinated, visitors are returning to Arizona for our unbeatable outdoor recreation, top-notch restaurants, beautiful lodging and more. With this increase in demand, the tourism industry has jobs to fill to keep up. I’m encouraged to see how far we’ve come from this time last year, and I’m looking forward to the return of strong tourism employment in Arizona.”
Additionally, the Arizona Office of Economic Opportunity in March released an employment report showing more than 16,000 jobs had been added back in the state. Also, an April article from AZ Big Media shows Arizona is among the top five most recovered states for unemployment.
“The Arizona Department of Economic Security throughout the pandemic has worked hard to ensure benefits are distributed timely, and that the needs of families and individuals are met,” said Arizona Department of Economic Security Director Michael Wisehart. “Arizona’s economy continues to strengthen and employers are looking for talent. Businesses have implem
Arizona Congressman Paul Gosar joined his fellow Republican members of the Natural Resources Committee in urging President Biden to support American mining jobs. Gosar, Committee Ranking Member Bruce Westerman and other members of the Committee sent a letter to Biden calling on his administration to “stop selling out those mining jobs to Canada.
According to the Committee members, the Biden Administration has started an effort to meet with representatives from Canadian mining companies to arrange for Canadian mining to displace new American mines in the supply chain for critical minerals and new renewable technology manufacturing. The reports on the meetings highlighted “more-than 30 attendees at Thursday’s meeting who discussed ways Washington can help U.S. companies expand in Canada and overcome logistical challenges, according to the documents.” Additionally, an attendee at the meeting noted that the Commerce Department had not indicated whether they would provide monetary incentives to Canadian players in the mining sector, or to other companies in the supply chain.
Earlier this month, Rep. Gosar wrote an op-ed that highlighted this issue and the importance of critical minerals.
“It is unacceptable that this Administration is bartering the jobs of American miners, steelworkers, and laborers to Canada to make up for a decision it made killing thousands of American pipefitting and welding jobs. American miners and American mineral security should not be used as a trading tool to make up for Mr. Biden’s disastrous foreign policy decisions. The Biden Administration, beholden to radical environmentalists, is shutting down domestic mining while holding secret meetings with Canadian mining companies about opening new mines in Canada,” said Gosar.
“Meanwhile, House Natural Resource Committee Democrats are attempting to undo a bipartisan, bicameral agreement to develop one of the largest copper and tellurium mines in the United States. Our nation has been blessed with tremendous resources, the strongest environmental protections and the best workforce. The Biden Administration and House Democrats should support these good jobs, not pass along those benefits to foreign nations,” argued Gosar.
That this Administration, through the Department of Commerce, is working to trade the jobs of American miners, steelworkers, and laborers to Canada to make up for a decision you made that killed thousands of American pipefitting and welding jobs and tens of thousands of Canadian oil and gas jobs is unacceptable. American miners and American mineral security should not be used as tools to be traded away to make up for your disastrous foreign policy decisions. American mining and smelting jobs are some of the highest paying jobs in our nation and your Administration should be fighting to create more of these jobs domestically, not using taxpayer resources to encourage Canada to steal our jobs and the opportunity they present to America. It makes no sense to actively kill mining jobs in Minnesota, Arizona, and Alaska while turning to Canada and asking them to open mines to fill the gaps. READ THE FULL LETTER HERE
“America leads the world in clean, safe mining. We should keep it that way. While our Democrat colleagues attempt to ban, prohibit and regulate the mining and energy industries into oblivion, we want to incentivize new innovation and more jobs right here at home. There’s no reason to outsource our mining needs overseas, where we have no control over environmental standards. American workers deserve better,” said Westerman.
“President Biden supports Canadians mining just miles from my district and in our very same watershed. Why are Canadians allowed to have high-wage, high-quality jobs, but Democrats oppose jobs within our borders? We have America’s domestic mineral needs in Minnesota, Arizona, and throughout the country. Let’s do it here with our workers earning high wages for their families and providing funding to our schools and communities,” said Rep. Pete Stauber.
Rep. Lauren Boebert stated, “I’m disappointed but not surprised at the Biden administration’s efforts to destroy America’s mining industry. Biden’s America last policies take jobs away from American workers, hurt rural communities, and decimate our economy while strengthening China’s. The Green New Deal and Biden’s environmental schemes would require a large amount of mining and minerals. Democrats have repeatedly made clear they would rather have children mining with their bare hands in the Congo and other countries than good and safe jobs in America.”
“The Administration policy to increase demand for minerals and then export the mining jobs needed to produce those minerals is another example of President Biden snubbing America’s working families, trashing the global environment and decreasing energy security. In order to power America’s clean energy future, we must fully utilize our own domestic supply of critical minerals and put Americans to work to do so. Our national security and economic prosperity depend on us advancing smart policies that promote American labor and American resources, not increasing U.S. reliance on foreign adversaries with abysmal environmental records – like China – for such vital resources,” said Rep. Garret Graves.
The Arizona legislature failed this year to pass a bill that would have required third grade students to be held back if they failed to learn to read adequately. The unsuccessful bill uncovered some unhappy truths about the state of education.
Third grade is recognized as a critical progression point for reading proficiency. Students through third grade are taught to read, after which they are expected to read to learn. Those unable to do so suffer a lifelong handicap in today’s knowledge economy with enormous economic and social consequences.
In 2019, 60 percent of Arizona’s third graders failed to meet our own reading standards. Unfortunately, nothing really new here.
Yet this ongoing failure is largely ignored by educators. There is little sense of urgency. Almost all of the failing third graders are routinely promoted to fourth grade, as if nothing of consequence had happened.
Here’s the worst of it. These dismal scores were recorded in the year before Covid, during which teachers’ unions refused in-person instruction. There was never the least evidence that school children suffered from Covid nor spread it.
Nevertheless, teachers received full pay and benefits. Ignoring “the science”, the unions insisted their work was far too dangerous.
No matter how much their students and families suffered, they stubbornly persisted. We’ll be years assessing the educational damage caused by their intransigence. Third graders mostly losing a year of reading instruction will be especially hard hit.
Yet even under these circumstances, government educators fiercely resisted the notion of a do-over, as they had before. They claimed that holding students back would cause more to drop out and result in worse outcomes. (Harvard research suggests the opposite).
Admittedly, holding back all non-reading third graders would be logistically difficult, although the long-term benefits to students and heightened accountability for educators would be well worth it. But educators’ real objection is that thousands of students in remediation would shine a bright light on their failure to perform what is arguably their most important duty: teaching basic literary skills to students who need them the most.
American education, with achievement levels lagging behind most other industrialized nations, has badly needed an overhaul for some time. The irony is that we know how to teach children effectively.
The Success Academies in New York, KIPP schools nationwide, Arizona charter schools and others have shown that it is a lie to pretend that disadvantaged students are “ineducable.“
Thomas Sowell found that New York City charter schools achieved proficiency levels several times that of district schools housed in the same building. Tuition scholarship programs in Arizona, DC and elsewhere have provided life-changing opportunity for thousands of children who otherwise would not have been so fortunate.
But in spite of their successes, school choice programs have been met with implacable hostility from an educational status quo that sees only threats, not opportunities to better serve. Some teachers’ unions even demanded further charter school restrictions as a condition for returning from their Covid vacation.
The result has been that critical reforms have been stymied. Tuition scholarship programs and charter schools, though growing, still have waiting lists. The default option for too many students is still the failing school closest to their home.
But the Covid debacle could be the springboard to wide sweeping reforms. Parents noticed the callous disregard for their children’s welfare from those they trusted. Some parents were shocked by the pervasive ideological indoctrination in the zoom lessons they observed.
They became comfortable with homeschooling and other options that put them more in charge of their children’s education. Not coincidently, Education Savings Accounts, funds made available to parents for any educational expenses in lieu of public school attendance, have been introduced in over twenty legislatures this year.
The fallout from our failing schools is enormous. We have produced a generation too many of whom are uneducated, entitled and angry. They are enamored with socialism and disdainful of American culture, including free speech. Moreover, income inequality has been widened by the very education activists so vexed by it.
Covid is our best chance to finally open up and modernize the structure of American education. Viva la Revolución!
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
It is now very obvious that the left and liberal media’s commitment to false and hyperbolic rhetoric regarding election bills in Arizona, Georgia, Texas, and elsewhere is not about policy but rather demonizing Republicans. But the jig is up. Characterizing every Republican-led effort to implement reasonable election reforms as “Jim Crow 2.0” (laws that legalized racial segregation) is not only offensive, it is lazy, hypocritical, and getting very tiresome.
For example, SB 1106, sponsored by Senator Mesnard, would require county recorders, upon confirmation that a voter has registered in another county or state, to cancel that voter’s registration. Additionally, the bill would classify the action of aiding someone who is registered in another state in voting in Arizona as a class 5 felony.
Senator Quezada, a Democrat representing legislative district 29, tweeted out that Governor Ducey needs to veto SB1106 along with SB1485 and SB1713 or we might lose our Super Bowl in 2023, similar to how the MLB pulled out of Georgia for what Sen. Quezada refers to as “voter suppression laws.”
And the Pima County Democratic Party tweeted Governor Ducey, calling on him to veto SB1106 with the hashtags #JimCrowAZ and #RacistVoterSuppression.
But is canceling the registration of a voter who has moved to another state really “Jim Crow 2.0”?
Over the weekend we highlighted some provisions in Kentucky’s HB 574 that are being referred to as “expanding voting access” there, but “Jim Crow” here in Arizona. One of those was a requirement nearly identical to what is proposed in SB1106. We’ll wait for Sen. Quezada and the Pima County Democratic Party to condemn the 25 Democrats in the Kentucky House, 8 Democrats in the Kentucky Senate, and the Democrat Governor who all supported it.
A statutory procedure to ensure people aren’t voting in multiple states is common practice around the country and simply commonsense.
For example, let’s look at the democrat stronghold and home state of President Joe Biden, Delaware. There, the State Board of Elections, at any duly called meeting, may consider the cancellation of voter registrations if a member has a “valid reason to believe” the voter is no longer a qualified elector (§ 1702).
They even allow for the cancellation of a voter’s registration if the voter’s spouse, adult child, sibling, or parent sends a written notice that the voter has moved out of state (§ 1707). Don’t like the way your parent votes? No worries. Just send a letter to their county and get their registration canceled.
Colorado, a bastion of liberalism, also criminalizes voting for non-residents (§ 228) with a class 6 felony. Colorado also has a similar provision as SB1106 (§ 604) outlining the process (§ 605) for canceling the registration of electors registered in multiple jurisdictions. Oregon too, allows the cancellation of elector registrations, “if the county clerk receives written evidence that the elector has registered to vote in another county in this state or in another state” (§ 555).
And since former President Obama took to twitter in support of the Georgia boycott, we’ll turn our eyes to a state he represented in the U.S. Senate, Illinois. There, a voter’s registration is canceled for simply not voting in the last four years and failing to respond to a notice within 30 days (§ 5-24). County clerks are also required to verify voter registrations every 2 years and cancel the registrations of any voter no longer qualified (§ 5-25).
SB1106 is not “Jim Crow” or “voter suppression.” States around the country, including the left’s beloved blue strongholds, have reasonable measures in place to ensure they maintain a clean and current voter registration database. If the left really believes this policy is “voter suppression” then their position must simply be this: voter suppression for me, but not for thee.
The Arizona Free Enterprise Club is a non-profit organization dedicated to promoting economic prosperity and a strong and vibrant Arizona economy.
