House Bill Would Extend COBRA Subsidy by Six Months
A provision in a 2009 economic stimulus law that requires the federal government to pay 65% of COBRA health care premiums for employees who were involuntarily terminated and began collecting COBRA subsidy on March 1, 2009 will expire at the end of November if legislation to extend the provision does not pass. Under the current provision, employees who lost their jobs after Sept. 1, 2008 are eligible to receive the subsidy for up to nine months. Those who lose their jobs after Dec. 31, 2009 will not qualify. The new provision would extend the subsidy eligibility through June 30, 2010 and increase COBRA coverage up to 15 months.
WorkforceManagement.com – Oct. 30, 2009
Employers Offer Wellness Incentives to Cut Healthcare Costs
Some employers will begin requiring employees with poor health habits to pay more for their healthcare coverage in 2010 or to enroll in healthcare plans with less coverage. While some experts worry employers are crossing the line with these policies, experts say legislation passed by the Senate Finance Committee supports and reinforces employers’ efforts to lower healthcare costs. According to the 2009 Benefits & Talent Survey, more than half of employers surveyed plan to implement or expand wellness programs in 2010 to lower health care costs, and 34% of those plan to introduce or increase financial incentives.
WorforceManagement.com – Oct. 19, 2009
Pending Home Sales Rise
According to the National Association of Realtors (NAR), the index of pending sales of existing homes rose by 6.1% in September, reaching an index reading of 110.1. The index level is its highest since December 2006 and is the eighth straight month of increases, the NAR reported. Economists attribute the large increase in existing home sales to first-time homebuyer tax credits. This index measures current activity against sales activity in 2001, the year the index began. A reading of 100 demonstrates equal levels with that year.
USAToday.com – Nov. 2, 2009
Manufacturing Grows for Third Straight Month
The nation's manufacturing index increased to 55.7 in October, up from 52.6 in September, according to the Institute for Supply Management (ISM). This is the third consecutive month of growth for the sector and the fastest pace in more than three years, the ISM reported. The growth in U.S. manufacturing activity was led by government spending and higher demand from overseas. In October, 13 out of 18 industries in the manufacturing sector experienced growth.
The Associated Press – Nov. 2, 2009
Consumer Confidence Fell in October
The consumer confidence index fell in October to 47.7, down from a revised reading of 53.4 in September, according to the Conference Board. The expectations index, which measures consumer outlook on future economic conditions, fell to 65.7 in October, down from 73.7 in September. Consumers’ assessment of current conditions and the short-term outlook on the economy continue to decline. The present situation index, a measure of consumers' opinions on current economic conditions, decreased to 20.7, down from 23.0 in September. This is the lowest reading in 26 years, the Conference Board reported. The monthly consumer confidence survey is based on 5,000 U.S. households.
The Conference Board – Oct. 27, 2009
Consumer Credit Falls
Consumer borrowing in the U.S. fell at an annual rate of $14.8 billion to $2.456 trillion in September, according to the Federal Reserve. Economists had expected borrowing to fall by $10 billion. Revolving credit, which includes credit card debt, fell by $9.9 billion to $898.9 billion. That’s down 10% from the same period in 2008. Nonrevolving credit, car and student loans fell by 3.7% to $1.567 trillion, a 3.8% decline over 2008. Total borrowing for September is down by 7.3% from the same time in 2008.
CNNMoney.com – Nov. 6, 2009
October 2009
The unemployment rate increased to 10.2% in October, up from 9.8% in September. This is the highest rate since April 1983. The number of people who are unemployed increased by 558,000 to 15.7 million in October. The largest declines were seen in manufacturing, construction, and retail trade. Learn more from the most recent employment report from the Bureau of Labor Statistics. View the unemployment rate in your state.
Major Industry Employment:
• Construction: - 62,000
• Manufacturing: - 61,000
• Retail Trade: - 40,000
• Professional & Business Services: + 18,000
• Educational & Health Services: + 45,000
• Leisure & Hospitality: - 37,000
• Government: 0
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.