Business in America News

Jobs On The Way: U.S.-Korea Trade Agreement Takes Effect Today

President Barack Obama signs the “United States-Korea Free Trade Agreement Implementation Act,” in the Oval Office, Oct. 21, 2011. (Official White House Photo by Pete Souza)

As of March 15, 2012, the U.S.-Korea trade agreement – the most commercially significant U.S. trade agreement in nearly two decades -- is now in effect. The opportunities this agreement offers to American manufacturers, service providers, farmers, ranchers, and workers are key components of President Obama’s National Export Initiative, which aims to double American exports by the end of 2014 and support additional American jobs. 

President Obama insisted that we get this agreement right, working with Congress, stakeholders, and our Korean government counterparts to address outstanding issues and then seal the deal.  Now, greater export opportunities will make American businesses of all sizes more competitive in the global economy, and allow them to support more jobs for Americans in sectors ranging from automobile manufacturing to delivery services to agriculture of all kinds. Tariff cuts will increase exports of American goods alone by $10-11 billion, supporting an estimated 70,000 jobs across the country. Export opportunities will also grow as the agreement opens Korea’s $580 billion services market, streamlines customs procedures, reduces red tape, and better protects American intellectual property rights. 

The Employment Situation in February

Today’s employment report provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression. It is critical that we continue the economic policies that are helping us dig our way out of the deep hole that was caused by the recession that began at the end of 2007, including measures to help the sectors that were most severely harmed by the bubble economy that misdirected investment and created too few durable jobs.

After losing millions of good manufacturing jobs in the years before and during the recession, the economy has added 429,000 manufacturing jobs in the past two years. For the first time since the 1990s, the manufacturing sector is adding jobs. To support a revival in manufacturing jobs and output, the President has proposed tax incentives for manufacturers, enhanced training for the workforce, and measures to create manufacturing hubs.

Private sector payrolls increased by 233,000 jobs and overall payroll employment rose by 227,000 jobs in February. The unemployment rate was unchanged at 8.3%.  The unemployment rate has fallen by 0.8 percentage point over the last 6 months. 

There was an increase in the size of the labor force last month of 476,000. Importantly, the increase in the labor force last month was due in large part to a reduction in the number of workers who exited the labor force between January and February.

Despite adverse shocks that have created headwinds for economic growth, the economy has added private sector jobs for 24 straight months, for a total of more than 3.9 million payroll jobs over that period. In the last 12 months, 2.2 million private sector jobs were added on net.  In the last 6 months, 1.3 million private sector jobs were added, the most of any 6 month period in nearly 6 years. 

Sectors with net job increases included health care and social assistance (+61,100), temporary help services (+45,200), leisure and hospitality (+44,000), and manufacturing (+31,000).  Construction lost 13,000 jobs, reflecting a loss of 15,400 specialty trade contractor jobs. Employment in the Federal government fell by 7,000 jobs. 

The monthly employment and unemployment numbers can be volatile, and employment estimates can be subject to substantial revision. Therefore, as the Administration always stresses, it is important not to read too much into any one monthly report; nevertheless, the trend in job market indicators over recent months is an encouraging sign. 

President Obama Meets with the Business Roundtable

President Barack Obama takes questions following the Business Roundtable Quarterly Meeting held at the Newseum in Washington, D.C., March 6, 2012. BRT Chairman James McNerney is seated with the President. (Official White House Photo by Pete Souza)

President Obama met with top business leaders on Tuesday night and he talked about the need to focus on our core strengths in order to grow the American economy: American manufacturing; American energy; American innovation; and ensuring American workers have the best skills and education.

The association, whose members include top executives from some of the largest corporations in the country, gathered in Washington, DC to discuss a report it is releasing today called “Taking Action for America: A CEO Plan for Jobs and Economic Growth.” It had been two years since the President last met with the group, and he highlighted many of the gains the economy has made in that time, including the addition of more than 3.7 million new jobs in the private sector and the resurgence of the American auto industry. President Obama also discussed the need to do more than restore our economy to pre-crisis levels -- we need to position ourselves to be competitive in this 21st century economy over the long term and create an economy built to last:

We’re also going to have to make significant investments in American energy.  I am very proud of the fact that American energy output is reaching record levels.  We are seeing the highest oil production in the last eight years.  At the same time, because so many of your companies have become more efficient, we’re actually seeing a reduction in imports -- in fact, below 50 percent for the first time back in 2010, the first time in a decade. 

But we’ve got more work to do, and it’s going to require an all-of-the-above strategy.  Obviously, folks are getting killed right now with gas prices.  And that has an impact on all of your companies, because consumers are more price sensitive when it comes to filling up their gas tank than just about anything else.  That means, yes, we’ve got to produce more oil and more natural gas, and we are game for that.  It also means, though, we’ve got to invest in the energy sources of the future. 

 

Hiring Veterans: Good for a Company’s Bottom Line

This week, Syracuse University’s Institute for Veteran and Military Families (IVMF) -- a national leader in veteran and military family research -- released an extraordinary study entitled “The Business Case for Hiring a Veteran: Beyond the Cliches.” 

Among others things, the study confirmed what many of us already knew – hiring America’s veterans makes great sense and is a terrific investment for any company in America. I encourage wide dissemination of this report to corporate leaders throughout the nation.

Significant findings include:

• Veterans are entrepreneurial:  It’s true – there are more than 66,000 veteran-owned small businesses in franchising alone. America is also stepping up in big ways to support the veteran entrepreneurial spirit -- several new programs aim to entice veterans to the world of franchising. The International Franchise Association runs one called VetFran, which requires that parent companies give veteran franchisees their “best deal” possible — often resulting in thousands of dollars off the initial franchising fee. There are more than 450 companies participating, and at least 2,100 veterans have opened franchises through the program so far.  Some companies go even further — the UPS Store recently announced it was giving away free franchises to 10 veterans who qualify (five have already been given out.) In February, CiCi’s Pizza announced it will waive the franchise fee and offer a 50 percent cut on royalty fees to all qualified veterans who open CiCi’s franchises and hire a veteran manager.
• Veterans have - and leverage - advanced technical training: Beyond just having the technical training, veterans are already graduates of the world’s best training program – the Unites States military!
• Veterans exhibit advanced team-building skills: When I was in command of a Guided Missile Destroyer, I use to tell my crew, “When the team wins, you win…” It’s true – when companies do well; employees benefit (and vice versa). Veterans understand the meaning of “the team comes first” and they bring that same mentality to any company.
• Veterans exhibit strong organizational commitment: Loyalty goes a long way in the military – and that same organizational commitment stays with Veterans when they join corporate America. It’s an intangible that can’t be taught.
• Veterans have experience mastering diverse work settings: Veterans have had to perform in the toughest of circumstances. The mountains of eastern Afghanistan; villages in Kandahar; Baghdad; Mosul; Ramadi and so many more… the acquired skills and experience that American veterans have gained in the last 10 years of war can’t be taught or replicated in the classroom. 

Joining Forces Commitment Met: Chamber of Commerce Holds 100 Hiring Fairs for Veterans and Military Spouses

As First Lady Michelle Obama and Dr. Jill Biden launched Joining Forces last April, the U.S. Chamber of Commerce’s “Hiring Our Heroes” program committed to host 100 hiring fairs across the country with the top notch companies they work with on a daily basis.

Earlier today in Philadelphia, Pennsylvania, the Chamber met that commitment. In just 11 months, the Chamber has hosted 100 of these fairs in 45 states and the District of Columbia and more than 8,000 veterans and military spouses have already landed jobs -- and the best is yet to come.

Starting this month, the Chamber will host 400 hiring fairs in the next year throughout the U.S. They will work with their Employment Advisory Council – which is made up of more than 20 of America’s largest companies and represents 25 million jobs – to find solid jobs for even more veterans and military spouses . The Chamber will also make improvements to their fairs by layering in in classes on resume writing, financial literacy, interview prep, mentorig opportunities, advice on dressing for success, and much more.  

The Chamber has a new focused effort on hiring military spouses too. Last January, they launched a stand-alone program for military spouses and formed the Military Spouse Business Alliance with nine leading military family non-profits. The first-of-its-kind program will include 20 hiring fairs at military installations in the coming year that will include resumé and interview workshops, small-group mentoring with senior women executives and military spouses, an entrepreneurs’ pavilion, and image workshops.  

“Hiring Our Heroes” will also launch a campaign focused on small business engagement later this month. Driven largely by the Chamber’s ability to reach 3 million of its own small business members, the Chamber will get thousands of small businesses across America to commit to veteran and military spouse hiring.

Through their strong partnerships with Joining Forces, the public sector, non-profits, and veteran services organizations, the Chamber will spread this movement to help veterans and military spouses find meaningful careers across America.

Stand by for a great 2012!

Hiring Our Heroes 100th hiring fair at the Philadelphia Independence Seaport Museum, Philadelphia, Pennsylvania March 2, 2012. (by Ian Wagreich/U.S. Chamber of Commerce)

President Obama Speaks to United Auto Workers

President Barack Obama delivers remarks at the United Auto Workers (UAW) Conference at the Marriott Wardman Park in Washington, D.C., Feb. 28, 2012. (Official White House Photo by Lawrence Jackson)

Today, President Obama spoke at the United Auto Workers Annual Conference to discuss the success of the American auto industry.

After nearly collapsing three years ago, our nation's big three automakers are turning profits and opening new factories. The industry has added more than 200,000 jobs. And those workers aren't just building cars again--they are building better, more fuel efficient automobiles that help Americans save money at the pump every time they fill up. The cars they are building to meet new fuel efficiency standards will average 55 miles to the gallon by 2025, cutting our oil consumption by 2 million barrels a day.

When the President took office, our nation’s three largest automakers were on the brink of failure. The economy was in complete free fall and private  investors weren’t willing to take a chance on the auto industry. Doing nothing, as some proposed, would have cost more than a million Americans their jobs, and threatened the livelihood of many more in the communities that depend on the industr. As President Obama explained today:

Think about what that choice would have meant for this country, if we had turned our backs on you, if America had thrown in the towel, if GM and Chrysler had gone under. The suppliers, the distributors that get their business from these companies, they would have died off.  Then even Ford could have gone down as well. Production shut down. Factories shuttered. Once-proud companies chopped up and sold off for scraps. And all of you, the men and women who built these companies with your own hands, would have been hung out to dry.

President Obama wasn’t willing to let that happen. He stepped in and offered the support automakers needed in return for some restructuring on their end:

[W]e were not going to take a knee and do nothing. We were not going to give up on your jobs and your families and your communities.  So in exchange for help, we demanded responsibility. We said to the auto industry, you're going to have to truly change, not just pretend like you're changing.  And thanks to outstanding leadership…we were able to get labor and management to settle their differences. 

Training Workers with the Skills Employers Need

Vice President Joe Biden, Dr. Jill Biden, and Secretary of Labor Hilda Solis make remarks at Davidson County Community College, in Thomasville, North Carolina, February 24, 2012. The Vice President Joined Dr. Biden and Secretary Solis for the last stop of their community college tour to announce the availability of $500 million to fund partnerships between community colleges and businesses to train workers with skills employers need. (Official White House Photo by David Lienemann)

Last Friday, Vice President Biden joined Dr. Jill Biden and Secretary of Labor Hilda Solis at Davidson County Community College in Thomasville, North Carolina to discuss the importance of training workers with the skills employers need right now. This visit was the final leg of a five-state, three-day Community College to Career Bus Tour that Dr. Biden and Secretary Solis took to highlight the $8 billion Community College to Career Fund recently proposed as part of the President’s FY 2013 Budget.

Speaking to over 300 faculty, students, and other members of the Davidson community, the Vice President argued that America’s skilled workforce is one of our greatest economic assets.  But now that many American manufacturers and other businesses are growing again, too many are having trouble finding workers with the exact skills they need.  That’s why it’s so important to forge partnerships between community colleges and businesses to train workers with the skills that employers need for jobs that are open right now.  On Friday, the Vice President announced that the Administration is taking further steps to do exactly that by making available another $500 million to create and expand these partnerships as part of the Trade Adjustment Assistance (TAA) Community College and Career Training grant program. 

The Administration’s efforts to create and expand these training partnerships are already showing results at places like Davidson County Community College (DCCC).  Thanks to a grant they received in the first round of this program, DCCC has been able to expand their partnerships with local companies to train workers with the skills they need—companies like Ingersoll Rand, which is working with DCCC to train workers with computer numerically controlled manufacturing skills, or Unilin Flooring, which is training workers in electronics engineering.  And these programs are working—in fact, every single graduate of the electronics engineering program at Davidson County Community College has been able to secure a job, many of them at companies like Unilin.  

Eliminating Barriers to Growing our Economy

Throughout today and the rest of the weekend, President Obama will be meeting with governors from around the country. Today, he met with Democratic governors and talked about ways the federal government and the states can work together to create jobs and grow the economy.  In particular, the President talked about ways to accelerate the growing trend of ‘insourcing’ – where companies are bringing jobs back to the United States and making additional investments here in America. The President’s conversation with governors about how we can work together to put Americans back to work and build an economy built to last will continue with a larger, bipartisan group of governors Monday. 

Last year, around this time – along with similar meetings with governors – the President instructed agencies to work closely with State, local, and tribal governments to identify any Federal barriers that prevent efficient use of taxpayer dollars to achieve the best results.

Today we’re releasing a report highlighting examples of where these new partnerships are leading to real benefits for States, which include:

• More flexibility to design and implement education reforms.  In exchange for agreeing to implement bold reforms around standards and accountability, the Administration is granting flexibility to states from the burdensome mandates of No Child Left Behind. The Administration recently granted waivers to the first 11 States that applied and looks forward to working with additional States. 
• New job and workforce opportunities through the $37 million Jobs and Innovation Accelerator Challenge to promote economic development in high-growth industries, the $15 million Rural Jobs Accelerator to support jobs development, and $166 million to hire veterans under 2012 grants for Community Oriented Policing Services (COPS) Hiring and Staffing for Adequate Fire and Emergency (SAFER). 
• Development of streamlined rules for Federal grants that focus resources on targeting high-risk areas to improve performance and target waste, fraud, and abuse. 
• A forthcoming Executive Order to clear away the red tape that can slow down the construction of infrastructure projects. 

Calling All App Developers: $10,000 App Challenge Looking for Ways to Connect Businesses with Government

Ed note: This post originally appeared on The Commerce Blog, the U.S. Department of Commerce's official blog.

Today, in conjunction with the newly-launched BusinessUSA initiative, the Department of Commerce announced the launch of their business app challenge.  The $10,000 contest challenges app developers to find innovative ways to utilize Commerce and other publicly available data and information to support American businesses. The business app challenge calls on developers to utilize at least one Department of Commerce data set in creating an application that assists businesses and/or improves the service delivery of Business.USA.gov to the business community.  Developers may choose the platform that best suits them. Applicants may design for the web, personal computer, mobile handheld device, or any platform broadly accessible to the open Internet. A list of developer-friendly data sets can be found on the Business Data and Tools page of Data.gov.