Perez Says Job Growth Positive, But Wages Stagnant
US Labor Secretary Thomas Perez has recently weighed in on a number of hotly-contested labor issues, ranging from job growth and wages to the rise of the so-called “gig” economy and efforts by the Obama Administration to boost paid leave. In an extensive interview in USA Today, Perez touted progress made in US job growth, noting 65 consecutive months of growth in private-sector jobs, or the addition of about 13 million US jobs, since the end of the recession. However, he cautioned that despite progress there is “unfinished business” in boosting the US recovery, because there is “slack in the labor markets” – unemployment should decline, minimum wages should rise, and overtime regulations should be improved, he said. He argued that “all too frequently, the system gets rigged against workers.” When asked about the rise of the “gig” economy, Perez said the choice isn’t “either innovate or regulate,” but that a balance must be struck between business and employee needs so that “we continue to embrace innovation but also do so in a way that doesn’t have millions of people walking a high wire without a net across America.”
When it comes to the issue of paid leave, the Wall Street Journal reported that Perez last week said the US is falling behind other nations when it comes to paid leave, adding, “Regrettably, here it’s become a partisan issue where certain Republicans have said, ‘we can’t afford to do this.’ … The Republican Party is out of step with similar conservative governments around the world…everyone else in the world has recognized how common-sense this is.”
What This Means For Small Businesses
Recent comments from Perez echo Administration efforts that have proven onerous for the small business community. Though Perez may say a balance should be struck between businesses and workers, pushing for higher wages and paid leave will place undue costs on small business owners.
Additional Reading
NFIB previously noted President Obama’s latest mandate on federal contractor paid sick leave.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
