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That changed this week when Governor Ducey rescinded a March 2020 Executive Order that waived the requirement that an individual receiving employment benefits must be actively looking for work to receive the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.
On Thursday, the Governor’s Office announced that Arizona will add more than half a million jobs over the next eight years, according to projections from the Arizona Office of Economic Opportunity.
According to the Office of Economic Opportunity (OEO), Arizona will add nearly 550,000 jobs by 2029 for an annualized job growth rate of 1.6%, four times the U.S. growth rate. The OEO projections come as Arizona is experiencing an explosion of advanced manufacturing in industries like semiconductors and electric vehicles.
In March, Governor Doug Ducey announced personal income in Arizona rose last year at a rate faster than nearly any state in the country, according to estimates from the Bureau of Economic Analysis. With a personal income growth rate of 8.4%, Arizona tied with Montana for the fastest rate of growth in personal income in 2020.
Last year, Taiwan Semiconductor Manufacturing Company announced the addition of 1,600 jobs and construction of a new semiconductor fabrication facility in Phoenix. In March, Intel announced adding 3,000 jobs along with two new semiconductor fabs in Chandler. Intel’s $20 billion investment represents the largest private sector investment in state history.
When it comes to electric vehicles, companies like Lucid, Nikola, ElectraMeccanica, which all have set up manufacturing facilities in the state, are projected to add thousands of jobs in coming years. These announcements mean more jobs for suppliers and support industries as well.
“Arizona has become a jobs magnet,” said Ducey in a press release. “Not only are jobs booming, wages are rising faster at one of the fastest rates in the country. Our recovery is moving forward and there is more opportunity before us than ever before.”
On a 31 to 29 party line vote, the State House passed The Unbiased Teaching Act, also known as SB1532, following a derisive debate during Wednesday’s floor session.
An amendment introduced this week by Rep. Michelle Udall (R-LD25) to a school operations bill bars racist, sexist, and one-sided politicized instruction in Arizona schools, including concepts related to Critical Race Theory. It also allows for civil litigation against teachers, administrators, and other school employees who violate the Act.
Under SB1532, a school district, charter school, or state agency is prohibited from requiring a teacher, employee, or visitor to discuss controversial issues of public policy or social affairs unless the subject is essential to course learning objectives. If a teacher presents a controversial issue, it must be conducted with “diverse and contending perspectives” without deference to any one perspective.
“Political advocacy, propaganda, and biased, one-sided viewpoints taught as fact have no place in a classroom,” Udall said after the vote. “If dealing with a divisive controversial topic, educators should present the subjects in a responsible, balanced way that encourages students to think for themselves and draw their own conclusions.”
SB1532 as amended was transmitted Wednesday to the Senate for a vote. The Republican Senate Caucus only holds a 16 to 14 majority, so getting the bill to Gov. Doug Ducey’s desk will require full Republican support unless some Democrats unexpectedly cross the aisle.
Passage in the Senate, however, is not a sure bet due to statements by Sen. Kelly Townsend (R-LD16) that she will not vote for any further legislation this session until the Senate’s ongoing audit of the Maricopa County 2020 general election is finished.
The Unbiased Teaching Act allows the Arizona Attorney General or the appropriate county attorney to initiate legal action in superior court for an alleged violation of the controversial issues prohibition. If further prohibits requiring a teacher, administrator, or other school employee to engage in training, orientation, or therapy that presents any form of blame or judgement on the basis of race, ethnicity, or sex.
Examples of prohibited “blame or judgement” concepts are those which teach one race, ethnicity, or sex is inherently morally or intellectually superior to another; that one person, by virtue of his or her race, ethnicity or sex, is consciously or unconsciously inherently racist, sexist, or oppressive; that an individual should be invidiously discriminated against or receive adverse treatment based solely or partly on his or her race, ethnicity, or sex; or that a person’s moral character is determined by his or her race, ethnicity, or sex.
A judge could impose a civil penalty of not more than $5,000 against a person who knowingly violates the Act or aids in a violation. The bill also permits the Attorney General or a county attorney to bring legal action against any school district or charter schoolteacher, administrator, or other employee, as well as state employee who uses public funds to violate the prohibitions.
Another provision ensures students cannot be required to affiliate with or engage in service learning that involves the student participating in lobbying for legislation at the local, state, or federal level or in social or public policy advocacy.
Also on Wednesday, a party line vote led to House passage of SB1074, which started out as a routine public entity auditing bill before being amended by Rep. Jake Hoffman (R-LD12) with language similar to Udall’s SB1532 amendment.
SB1074 as amended bans the state, state agencies, and political subdivisions such as counties, cities and towns, and community colleges from requiring employees to engage in the same type of training, orientation, or therapy prohibited in SB1532 if it involves presents any form of blame or judgment on the basis of race, ethnicity, or sex.
Training related to sexual harassment is specifically excluded from the mandates in SB1074.
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 is leading a coalition of 13 states to defend the Public Charge Rule, a federal immigration policy that ensures noncitizens can financially support themselves to become U.S. citizens or obtain green cards. Joining Arizona are attorneys general from the states of Alabama, Arkansas, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, Oklahoma, South Carolina, Texas, and West Virginia.
In 2019, the Department of Homeland Security (DHS) created a rule that expanded the definition of “public charges” to include anyone who received certain government benefits (like Medicaid or food stamps) for more than 12 months over a three-year period. U.S. Citizenship and Immigration Services (USCIS) stopped applying the Public Charge Final Rule to all pending applications and petitions on March 9, 2021. USCIS removed content related to the vacated 2019 Public Charge Final Rule from the affected USCIS forms and has posted updated versions of affected forms.
The states are asking the Supreme Court of the United States to allow them to intervene in a lawsuit challenging the policy after the Biden Administration abandoned defense of the rule earlier this year. Arizona led a coalition of 13 states in March at the Ninth Circuit to intervene in the lawsuit but was denied.
Arizona and the other states are also asking Supreme Court of the United States (SCOTUS) to grant review of a Ninth Circuit decision that invalidated the Public Charge Rule. Previously, SCOTUS granted review of a case involving the same issues. But, after SCOTUS agreed to hear the case, the Biden Administration abruptly shifted course. Without any notice or warning—and breaking established norms—it sprung an unprecedented, coordinated, and multi-court gambit to dismiss all pending cases pursuant to a settlement. Attorney General Brnovich believes that the validity of the Public Charge Rule should be decided on its legal merits, not pervasive strategic surrenders by the Biden Administration.
Congress has had a Public Charge requirement in one form or another for over a century according to the Attorney General’s Office. Under existing federal immigration law, noncitizens are not eligible to receive a green card if they are reliant upon government assistance, otherwise known as a “public charge.”
Arizona and the other states claim to have a significant interest in upholding the Public Charge Rule because it reduces demand on already over-stretched government assistance programs. The federal government only pays a portion of the costs involved in many of the programs at issue, therefore increasing the strain on over-stretched state assistance programs. It is estimated the rule will save the states $1.01 billion annually in direct payments. For example:
In 2019 Arizona spent $3,059,000,000 on Medicaid benefits. Increasing the number of Medicaid participants would increase the State’s spending on Medicaid (the costs of which typically exceed State general fund growth) and would require the State to make budget adjustments elsewhere.
Arizona paid $85 million in maintenance-of-effort costs for Temporary Assistance to Needy Families (TANF) programs in 2019. TANF resources are limited. In 2016, less than a quarter of eligible impoverished families received this assistance.
States incur administrative costs for each Supplemental Nutrition Assistance Program (SNAP) recipient. For FY 2016, Arizona paid $77,730,088 in administrative costs for administering SNAP. By admitting aliens who are unlikely to depend on this resource, the State will save money that would have otherwise gone to fund administrative costs for aliens who would depend on the program.
