Obama Signs Equal-Pay Legislation
The first bill signed into law by President Obama was the Lilly Ledbetter Fair Pay Act, a law approving equal-pay legislation. The Fair Pay Act was named after an Alabama woman who claimed she was paid less than her male counterparts in the same position after 19 years of service at a tire factory. Congress overturned a Supreme Court ruling against Ledbetter and approved legislation to expand workers’ rights to sue for fair pay. The ruling also relaxed the statute of limitations for when you can file a claim from 180 days after an employee first suspected pay discrimination. The statute of limitations is now set at six months, which restarts every time an employer issues a paycheck. The New York Times – Jan. 30, 2009
Steady Paycheck Trumps Advancement
According to a survey by Towers Perrin, a professional services firm that helps organizations improve performance, most employees would be willing to sacrifice career advancement for a steady paycheck. The survey also showed that employees are more concerned with stability and security for themselves and their families than climbing the corporate ladder. The survey also showed that 45% of respondents believe their job will change or be eliminated in 2009, and 55% believe their future earnings will peak or decline. EmployeeBenefitNews.com – Jan. 27, 2009
Retail Sales Rebounded in January
The Commerce Department reported a 1% increase in retail sales in January. This growth in the retail sector is the biggest increase in 14 months, ending the consecutive six-month decline. Economists expected a drop of 0.8% in January’s sales numbers. The report showed impressive sales increases in automobiles, general merchandise stores, gas stations, food and beverage sales, and non-store retailers. The Associated Press – Feb. 12, 2009
Consumer Confidence Index Falls
The consumer confidence index fell again to 37.7 in January, down from 38.6 in December, according to the Conference Board. The monthly consumer survey, based on 5,000 U.S. households, is a measure of consumers’ assessments of the nation’s economy. In addition to the decline in the consumer confidence index, the present situation index, a measure of consumers’ opinions on current economic conditions, declined slightly to 29.9 in January, down from a revised 30.2 in December.
The Conference Board – Jan. 27, 2009
One Quarter of Companies Plan Salary Freeze
Mercer, a consulting and investment services firm, reported that 25% of companies in a recent survey plan to freeze salaries in 2009, while 20% of those surveyed are considering a salary freeze. These figures are up drastically from last year when only 5% of companies reported plans to cut pay raises for employees. On average, companies that plan to give their employees raises will give only a 3.2% increase, down from reported planned pay raises of 3.6%. The report also found that salary freezes extend beyond lower management, with 77% of respondents reporting plans to decrease the level of executive compensations. CNNMoney.com – Feb. 9, 2009
Consumer Borrowing Drops in December
Consumer borrowing fell by 3.1% in December, the third consecutive month of declines, according to the Federal Reserve. The $6.6 billion decline in borrowing followed an $11 billion decline in November and was double what economists anticipated. Credit card debt saw a 7.8% decline while a category that includes auto loans experienced a 0.2% drop. The drop in consumer borrowing is partly due to the tightening of bank lending. The Associated Press – Feb. 6, 2009
January 2009
The unemployment rate increased to 7.6% in January 2009, up from 7.2% in December 2008. Overall, employment has fallen by 3.6 million since the beginning of the recession in December 2007. Job loss occurred across most sectors of the economy, with only government, education and health services seeing an increase in job gains. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 111,000
• Manufacturing: - 207,000
• Retail Trade: - 45,000
• Professional & Business Services: - 121,000
• Educational & Health Services: + 54,000
• Leisure & Hospitality: - 28,000
• Government: + 6,000
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Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.