Posts tagged Labor Market
Economically Devastating Rent-Seeking in America’s Labor Markets
June 9, 2026 // Nowhere is rent-seeking more pervasive—or more costly—than in America’s labor markets. From compulsory unionism to occupational licensing, prevailing-wage laws, gig-worker reclassification rules, and strategic minimum-wage campaigns, concentrated interest groups (often unions and incumbent professionals) routinely use state power to extract “rents” from workers, employers, taxpayers, and consumers. These are not abstract economic theories. Rent-seeking is an everyday mechanism that distorts wages, limits opportunities, and transfers trillions of dollars every year, creating harmful economic inefficiencies penalizing employees, employers, taxpayers, and consumers. Compulsory Unionism: The Textbook Case of Labor-Market Rent-Seeking Compulsory unionism
Why “Pro-Worker” Policies Don’t Work
June 2, 2026 // As I explained at the Post, the policy implications of Engbom’s research and related analyses are clear: by making workers more costly to employers or less willing and able to switch jobs, government policies ostensibly intended to “protect workers” are actively harming them and the economy overall. Policymakers legitimately concerned with American workers’ earnings and well-being should therefore focus on fixing these policies and enacting new ones that enhance workers’ autonomy and mobility. Too often these days, “pro-worker” policies are anything but.
After AI layoffs, Newsom orders state government to find ways to ease the pain
May 23, 2026 // In February, AFL-CIO president Liz Shuler, members of the California Labor Federation and labor leaders in Democratic primary states pledged to pull support for a Newsom 2028 presidential campaign if he didn’t take steps to protect workers from artificial intelligence. Newsom’s veto of the predecessor of the No Robo Bosses Act was named as a reason for that pledge. In a statement shared with CalMatters, California Labor Federation president Lorena Gonzalez said the executive order is welcome but not enough
California’s War on Autonomous Trucking
May 14, 2026 // As structural economic factors push costs for the freight industry and consumers higher, the American public has three options. It can accept higher prices for all transportation services; it can enlarge the labor pool through immigration; or it can embrace new technology that improves transportation productivity and resolves the Baumol dilemma. Becerra, Steyer, and Khanna have followed the path prescribed by FreightWaves’ Fuller, promising to force higher freight costs onto the public. While the Golden State’s coalition politics might require genuflecting to the Teamsters, Californians are bound to notice before long that they’re paying higher prices than people in other states while also lagging behind them technologically.
Commentary: California’s Fast-Food Minimum Wage Hike Is Killing Jobs
November 13, 2025 // "On April 1, 2024, California raised its minimum wage from $16 to $20 per hour for fast-food workers employed at chains with more than 60 locations nationwide," Jeffrey Clemens, Olivia Edwards, and Jonathan Meer write in a National Bureau of Economic Research working paper that was first addressed by Reason's Peter Suderman in the November print issue. "Our median estimate suggests that California lost about 18,000 jobs that could have been retained if AB 1228 had not been passed."
Where the Jobs Are (and Aren’t): Sectoral Shifts and the Federal Workforce Pullback
November 5, 2025 // Healthcare’s steady expansion and manufacturing’s contraction capture the reallocation story at the heart of today’s labor market. Where jobs grow—and where they disappear—helps explain why some young workers thrive while others stall. Meanwhile, the federal workforce reductions mark one of the most significant government pullbacks in decades, echoing the reform-minded cuts of the 1990s.
California’s Fast Food Minimum Wage Hike Cost the State 18,000 Jobs. That Shouldn’t Surprise Anyone.
October 23, 2025 // The trio looked at fast-food employment in California and found a decline of 2.64 percent between September 2023 and September 2024—six months before and after the law went into effect. During that same time period, fast-food employment in the rest of the United States slightly increased. Those different outcomes make it likely that the law caused fast-food businesses to hire fewer people, with a probable effect of lowering such employment 2.3 percent to 3.9 percent. At the middle of the range, that means about 18,000 fewer jobs in California.
Why a big bank and a big tech company are raising wages
September 18, 2025 // Everyone who works at Bank of America will soon make at least $25 an hour, the company announced Wednesday. Amazon is also raising pay for people who work in its fulfillment centers and in transportation to more than $23 an hour, on average, and paying for more of their health care costs. That adds up to around $50,000 a year for full-time employees.
Unions ‘Wait and See’ on Elections as Trump Upends Labor Arena
August 20, 2025 // That political uncertainty, coupled with a volatile economy and labor market, could have workers second-guessing whether they’re ready to stick their necks out for collective action, the data show. College athlete employment, protections for political protests, and higher penalties for labor law violations are just some of the issues that worker advocates may want to steer away from a Republican board. The average number of newly certified unions per month dropped 22.3% between January and July this year, compared to the last six months of the Biden administration, according to data from the NLRB’s monthly election reports.
Op-Ed: Rep. Kevin Kiley and Isabel Soto: The future of work is flexible
May 5, 2025 // At its core, the issue of independent work centers on the freedom for individuals to work as they choose, to support their families on their own terms, and to participate in the economy without being held back by outdated, stifling regulations. The Modern Worker Empowerment Act and The Modern Worker Security Act offer a commonsense alternative that safeguards this freedom. Congress must embrace policies that remove barriers to the modern labor market, not stifle the individual who wants to work. As the economy evolves, labor laws should support worker choice, economic participation, and innovation. These bills are a critical step forward and deserve broad bipartisan support.