More stories

  • in

    Black women are gaining ground in the labor market but still face unique barriers

    Both the rate of unemployment for all Black people and for women specifically are at their lowest levels in more than a year.
    January’s drop in Black unemployment was propelled by gains made by Black women.
    A tight labor market may be playing a role.

    An employee works at the BMW manufacturing plant in Greer, South Carolina, October 19, 2022.
    Bob Strong | Reuters

    A decrease in the unemployment rate of Black women is heartening, but labor experts warn that the trend shouldn’t create any false notions about equity in the workforce.
    The unemployment rate for the entire Black population has avoided ticking up since August, coming in at 5.4% in January, according to seasonally adjusted data released by the Bureau of Labor Statistics on Friday.

    January’s drop in Black unemployment was propelled by gains made by Black women, whose unemployment rate excluding teenagers dropped to 4.7% in January from 5.5% in December. Black men, by comparison, saw unemployment tick up to 5.3% in January from 5.1% in December.
    Both the rate of unemployment for all Black people and for women specifically are at their lowest levels in more than a year. The last time the Black unemployment rate was below 5.5% was in September 2019, while Black women last had a sub-5% unemployment rate in November 2021.
    The unemployment rates of white, Asian and Hispanic/Latino workers all increased from December to January. Still, Black workers have the highest unemployment rate when compared with white, Asian and Hispanic/Latino workers.
    “Sometimes when folks see improvement, they see it as positive, but the disparities are still there,” said Kate Bahn, director of labor market policy and chief economist at the Washington Center for Equitable Growth. “Convergence is good, but it’s still not equal.”

    Bahn said the relatively higher rate can be attributed specifically to anti-Black racism. She pointed to the discrimination Black people face in hiring and the increased likelihood of layoffs Black workers experience as two examples. While a tight labor market can help mitigate some of these challenges for Black workers, policy changes would be required to create a more just labor field, she said.

    Black women had bigger gains in employment-to-population ratios, which show the number of people employed as a share of the broader population. While Black men saw a 0.2 percentage point gain between December and January, Black women added 1.1 percentage points.
    Both groups also reported an increase in the total number of active workers.
    Valerie Wilson, the director of a program focused on race, ethnicity and the economy at the Economic Policy Institute, said January can be an especially difficult month to draw trends from because population data changes with the new year.
    Looking at actual numbers, there are more unemployed Black women, even though the percentage unemployed within the same population is down.
    She said the gains in employment could be attributed at least in part to the tightness of the overall labor market. The unemployment rate came in under analysts’ expectations at 3.4% for January, the lowest since May 1969.

    “When you get to those really low rates of unemployment, we tend to start seeing more changes among groups that had higher rates of unemployment,” Wilson said. “If you’re still currently unemployed, you’re still looking for a job, then you’re more likely to be a person to fill a new opening.”
    And just because Black women, and Black people as a whole, are finding employment at increasing rates, it doesn’t always mean the newly employed are better off. She pointed to the fact that the rate of wage growth is showing signs of slowing. In addition, the hospitality and leisure sector — which Wilson said can typically pay less than other industries — added the most jobs this month.
    “It really depends on how you measure or want to define better off or being hurt,” Wilson said. “There are more jobs available for those who want to find employment. That doesn’t necessarily say anything on its own about the quality of those jobs.”
    “I don’t think any job is better than no job at all,” she added, “but the fact that you can find employment is at least a marginal improvement over not having employment.”

    WATCH LIVEWATCH IN THE APP More

  • in

    Jobs report shows increase of 517,000 in January, crushing estimates, as unemployment rate hit 53-year low

    The January jobs report showed nonfarm payrolls increased by 517,000, far higher than the 187,000 market estimate.
    The unemployment rate fell to 3.4% versus the estimate for 3.6%. That is the lowest jobless level since May 1969.
    Leisure and hospitality added 128,000 jobs to lead all sectors. Other significant gainers were professional and business services (82,000), government (74,000) and health care (58,000).

    The employment picture started off 2023 on a stunningly strong note, with nonfarm payrolls posting their biggest gain since July 2022.
    Nonfarm payrolls increased by 517,000 for January, above the Dow Jones estimate of 187,000 and December’s gain of 260,000, according to a Labor Department report Friday.

    related investing news

    6 hours ago

    “It was a phenomenal report,” said Michelle Meyer, chief U.S. economist at the Mastercard Economics Institute. “This brings into question how we’re able to see that level of job growth despite some of the other rumblings in the economy. The reality is it shows there’s still a lot of pent-up demand for workers were companies have really struggled to staff appropriately.”
    The unemployment rate fell to 3.4% versus the estimate for 3.6%. That is the lowest jobless level since May 1969. The labor force participation rate edged higher to 62.4%.
    A broader measure of unemployment that includes discouraged workers and those holding part-time jobs for economic reasons also edged higher to 6.6%. The household survey, which the Labor Department uses to compute the unemployment rate, showed an even bigger increase of 894,000.
    “Today’s jobs report is almost too good to be true,” wrote Julia Pollak, chief economist at ZipRecruiter. “Like $20 bills on the sidewalk and free lunches, falling inflation paired with falling unemployment is the stuff of economics fiction.”
    Markets, however, dropped following the report, though the major averages were mixed around midday.

    Growth across a multitude of sectors helped propel the massive beat against the estimate.
    Leisure and hospitality added 128,000 jobs to lead all sectors. Other significant gainers were professional and business services (82,000), government (74,000) and health care (58,000). Retail was up 30,000 and construction added 25,000.
    Wages also posted solid gains for the month. Average hourly earnings increased 0.3%, in line with the estimate, and 4.4% from a year ago, 0.1 percentage point higher than expectations though a bit below the December gain of 4.6%.
    The unemployment rate for Blacks fell to 5.4%, while the rate for women was 3.1%.

    “When you look at this, it’s pretty hard to shoot any holes in this report,” said Dan North, senior economist at Allianz Trade North America.
    The surge in job creation comes despite the Federal Reserve’s efforts to slow the economy and bring down inflation from its highest level since the early 1980s. The Fed has raised its benchmark interest rate eight times since March 2022.
    In its latest assessment of the jobs picture, the Fed on Wednesday dropped previous language saying gains have been “robust” and noted only that the “unemployment rate has remained low.”
    However, Chairman Jerome Powell, in his post-meeting news conference, noted the labor market “remains extremely tight” and is still “out of balance.” As of December, there were about 11 million job openings, or just shy of two for every available worker.
    “Today’s report is an echo of 2022’s surprisingly resilient job market, beating back recession fears,” said Daniel Zhao, lead economist for job review site Glassdoor. “The Fed has a New Year’s resolution to cool down the labor market, and so far, the labor market is pushing back.”
    Though Fed officials have expressed their intention to keep rates elevated for as long as it takes to bring down inflation, markets are betting the central bank starts cutting before the end of 2023.
    Traders increased their bets that the Fed would approve a quarter percentage point interest rate hike at its March meeting, with the probability rising to 94.5%, according to CME Group data. They also now expect another increase in May or June that would bring the central bank’s benchmark funds rate to a target range of 5%-5.25%.
    The Fed is hoping to engineer a “soft landing” for an economy that is pressured by inflation and geopolitical factors that held back growth in 2022.
    Most economists still expect this year to see at least a shallow recession, though the labor market’s resilience could cause some rethinking of that.
    “Our base case is still recession likely toward the latter part of the year,” said Andrew Patterson, senior economist at Vanguard. “One report is not indicative of a trend, but certainly if we continue to see upside surprises, our baseline is up for discussion. This does increase the marginal probability of a soft landing.”
    Gross domestic product grew at a 2.9% pace in the fourth quarter of 2022. The Atlanta Fed’s GDPNow tracker is pointing toward a 0.7% increase for the first quarter of 2023, though that’s off an incomplete data set.

    WATCH LIVEWATCH IN THE APP More

  • in

    This Is What It Looks Like to Try to Count America’s Homeless Population

    To fix a problem, you need to know its scope. To do that, you need sheriffs, social workers, volunteers, flashlights and 10 days in January.They go into the streets in search of data. Peeking behind dumpsters, shining flashlights under bridges, rustling a frosted tent to see if anyone was inside. This is what it takes to count the people in America who don’t have a place to live. To get a number, however flawed, that describes the scope of a deeply entrenched problem and the country’s progress toward fixing it.Last year, the Biden administration laid out a goal to reduce homelessness by 25 percent by 2025. The problem increasingly animates local politics, with ambitious programs to build affordable housing getting opposition from homeowners who say they want encampments gone but for the solution to be far from their communities. Across the country, homelessness is a subject in which declarations of urgency outweigh measurable progress.Officially called the Point-in-Time Count, the annual tally of those who live outside or in homeless shelters takes place in every corner of the country through the last 10 days of January, and over the past dozen years has found 550,000 to 650,000 people experiencing homelessness. The endeavor is far from perfect, advocates note, since it captures no more than a few days and is almost certainly a significant undercount. But it’s a snapshot from which resources flow, and creates a shared understanding of a common problem.This year, reporters and photographers from The New York Times shadowed the count, using a sampling of four very different communities — warm and cold, big and small, rural and urban — to examine the same problem in vastly different places.Volunteers and employees of the Downtown Women’s Center prepare to count people who are unhoused, in the Skid Row neighborhood of Los Angeles.Mark Abramson for The New York TimesOn any given evening, the forces that drive someone to sleep outside or in a shelter are myriad and complex. A long-run erosion in wages. A fraying social safety net. The fact that hard drugs are cheap and mental health care is not. Year after year, the count finds people experiencing homelessness to be disproportionately Black, disproportionately old and disproportionately sick. Members of the L.G.B.T.Q. community are overrepresented as well.There is one factor — the high cost of housing and difficulty of finding anything affordable — that rises above the rest. The numbers bear this out, explaining why expensive West Coast cities like Los Angeles have long had the nation’s worst homeless problems, why growing cities like Phoenix are now seeing a troubling rise, and why it is seemingly easier to solve homelessness in places like Rockford, Ill., a once-thriving factory town that has lost a lot jobs but where housing remains cheap.“Housing has become a competition for a scarce resource, and when you have that the people who are most vulnerable are going to lose,” Gregg Colburn, a professor at the University of Washington and a co-author of “Homelessness Is a Housing Problem,” said in an interview.The 2023 count will provide a crucial understanding of the legacy of the Covid-19 pandemic and the success of government efforts in blunting its effects. Last year’s count showed homelessness was essentially flat from two years ago, a fact that Jeff Olivet, executive director of the U.S. Interagency Council on Homelessness, attributed to widespread eviction moratoriums, billions in rental assistance and an expansion of federal housing vouchers that fortified the safety net. The question for this year, Mr. Olivet said, is “whether we were able to flatten the curve and even start pointing downwards.”Behind each number are tens of thousands of volunteers, outreach workers and public safety officers who spend the wee hours looking for the most destitute members of their community.Sometimes, people gladly answer questions and thank volunteers for what they are doing, with a hope that accurate figures will bring more funding for housing and services. Other times, they feel violated and gawked at.“What are you doing?” a man on a bicycle in Los Angeles asked a team of volunteers in day glow vests as they walked past a downtown sidewalk covered in tents.“Counting.”“Counting what?”“Counting people.”— Conor DoughertyLos Angeles, Jan. 25-26‘Once you enter this whole cycle, you are always on the edge’On the last night of the count, volunteers, along with those working for the Downtown Women’s Center, walk around the Skid Row neighborhood of downtown Los Angeles to count people who are unhoused.In the capital of the capital of homelessness, the people who live outside are used to seeing outsiders. This is especially true in Skid Row, a 50-block neighborhood in downtown where some 3,000 people live in the tents, shanties and recreational vehicles that so thoroughly clog the sidewalks that much of the pedestrian traffic is in the streets. So when dozens of volunteers in reflective vests left the Downtown Women’s Center to count on a recent evening, the people they were counting rarely so much as looked up.“They constantly have visitors, whether it’s proselytizers, outreach teams, people offering them something to eat, people offering them drugs — people doing a homeless count,” said Suzette Shaw, a volunteer who helped with the tally this year. “This community never sleeps.”Ms. Shaw is a 58-year-old student who lives in the neighborhood and was once homeless herself. She lived in various forms of transitional housing — hotels, shelters — until she found a permanent subsidized unit in 2016, whose rent is partially covered with a Section 8 housing voucher. Joining the count is one way she tries to make sense of a neighborhood whose scenes of ragged fabric and open fires are some of the bleakest pictures America has to offer.Volunteers counting people who are unhoused near Skid Row in Los Angeles.Members of the Los Angeles Homeless Services Authority counted people who are unhoused at an encampment near the Los Angeles River.Given that it has nation’s worst homeless problem, Los Angeles’s count requires assembling a small army that spends three days and several thousand hours amassing their figures. This ranges from volunteers like Ms. Shaw who comb sidewalks for a few hours, to officers like Lt. William Kitchin, of the Los Angeles County Sheriff’s Department, who along with a team of deputies and outreach workers spent a recent Wednesday driving a stretch of the Los Angeles River to tally the residents who live under overpasses and along the banks.More on CaliforniaIn the Wake of Tragedy: California is reeling after back-to-back mass shootings in Monterey Park and Half Moon Bay.Fast-Food Industry: A law creating a council with the authority to set wages and improve the conditions of fast-food workers was halted after business groups submitted enough signatures to place the issue before voters next year.Medical Misinformation: A federal judge has temporarily blocked enforcement of a new law allowing regulators to punish doctors for spreading false or misleading information about Covid-19.Oil From the Amazon: If you live in California, you may have a closer connection to oil drilling in the Amazon rainforest than you think.Unlike smaller cities, which often pair the Point-in-Time Count with interviews and outreach, for sensitivity and safety reasons organizers in Los Angeles discourage volunteers from interacting with the people on the streets.Some walk, some drive, but for the most part it happens briskly and the numbers they come back with are large. According to last year’s count, about 20 percent of the entire nation’s unsheltered population — about 50,000 people — lived in Los Angeles County.This has left voters despondent: Surveys consistently show housing and homelessness are the biggest concern of California voters, while a recent poll by the Los Angeles Business Council Institute found residents are furious at the city’s inability to make so much as a dent, with many voters saying they feel unsafe and have considered moving because of the homeless problem.Deputies from the Los Angeles Sheriff’s Department talk with Reyna Paula, who has built a temporary home, in which she has been living for five years, under a bridge along Coyote Creek.Mark Abramson for The New York TimesSeveral deputies accompanied workers from the Los Angeles Homeless Services Authority as they counted people who are unhoused staying along the riverbed and under bridges in Los Angeles.After a campaign last year that focused almost entirely on homelessness, Karen Bass, the city’s new mayor, declared a state of emergency on her first day in office. This gives her office expanded powers to speed the construction of affordable housing by lifting rules that impede it. “Tonight we’re counting the people on the street, but we also know that it is most important that we prevent new people from falling into homelessness,” the mayor said to a crowd at a kickoff event in the San Fernando Valley. She joined the count shortly after, along with the actor Danny Trejo.Ms. Bass summed up the central problem for Los Angeles and other high-cost U.S. cities: Even as they spend billions on new housing and expanded services, more people continue to fall into homelessness faster than these programs can help people already on the streets. Nationally, some 901,000 people exited homelessness each year between 2017 and 2020 on average. That figure would be a huge accomplishment, but for one detail: About 909,000 people entered homelessness each year over the same period.“Once you enter this whole cycle, you are always on the edge,” Ms. Shaw said.Phoenix, Jan. 25‘I stayed there till they kicked me out’​​Advocates say Phoenix’s streets are increasingly filled with people who simply could not afford an increasingly pricey Arizona.Daniel Greene never thought he would end up homeless in Phoenix, a city that enticed him from Idaho a decade ago with balmy winters and cheap housing. But when his lease was up for renewal in December, Mr. Greene said his landlord raised the monthly rent on his one-bedroom apartment to $1,400 from $700. Arizona has few restrictions on rent increases. Now, Mr. Greene is sleeping in a park while he tries to scrape together a deposit.“I would need $4,000,” he said on Tuesday morning, as a volunteer counted Mr. Greene as part of the city’s portion of the annual Point-in-Time Count.Mr. Greene, 54, is one of thousands of newly homeless people who have been coughed out of the tailpipe of Arizona’s economic engine, casualties of growth that has drawn new factories and hundreds of thousands of new residents, while sending housing costs spiraling.Advocates say Phoenix’s streets are increasingly filled with people who simply could not afford an increasingly pricey Arizona: Average rent in the Phoenix area has risen by about 70 percent over the past five years, and the number of people in shelters or living on the street has gone up by 60 percent.“The cost of housing is the biggest thing we see,” said Kenn Weise, the mayor of the suburban city Avondale, Ariz., and chairman of the Maricopa Association of Governments, which runs the Point-in-Time Count.The path that brought Mr. Greene to a park in downtown Phoenix, repairing a beater bicycle, began, he said, when he fell from a scaffold at his carpentry job a few years ago. Work was impossible after he crushed his leg, but he said he survived on monthly disability checks.The rent on his apartment near the palms of Encanto Park crept up from $525 to $700 before doubling in December, part of the disappearance of modestly priced rentals around Phoenix. A decade ago, almost 90 percent of apartments around Phoenix rented for $1,000 or less. Now, just 10 percent do.“I stayed there till they kicked me out,” Mr. Greene said.Gustavo Martinez, who is unhoused in Phoenix. He lost his job during the pandemic, he said, and feels safer sleeping outside than in a shelter.The Point-in-Time Count is part census, part deeply intimate personal history. Volunteers here ask for people’s name, age and ethnicity, but also whether prison time, drug use or mental illness is a factor in their homelessness. He shoved his furniture and most of his clothes into a $100 monthly storage unit and decided to live outside to try to rebuild his finances. A weekly motel might have been safer, but he figured the open air was free. He is camping out with three other men and spends a lot of time scouring roommate websites.“I’m doing this on my own,” he said.As the first of nearly 1,000 volunteers crisscrossed downtown Phoenix starting before sunrise on Tuesday morning, they met people sleeping in makeshift tents beside new art spaces and camping out in the shadow of construction cranes.One volunteer, Katie Gentry, regional homelessness program manager for the Maricopa Association of Governments, walked up to a gas station downtown where people had come to ask for quarters to buy coffee and escape from the chill; she approached them to ask a litany of deeply personal questions with a matter-of-fact cheerfulness.Daniel Pawlak and Rochelle Putnam have been living in an encampment known as “The Zone.”Alisha Coleman bikes away after being questioned during a Point-in-Time Count.The Point-in-Time Count is part census, part deeply intimate personal history. Volunteers here ask for people’s name, age and ethnicity, but also whether prison time, drug use or mental illness is a factor in their homelessness. One question asks whether people had ever traded sex for shelter.Gustavo Martinez, 56, said he lost his job as a concessionaire for spring-training baseball games during the early days of the pandemic, and he lost his subleased apartment a few months later. He has been bouncing from friends’ couches to shelter beds to living on the streets ever since. He said that he earned a little money cleaning up after the downtown Phoenix farmers market, and that he often spent his time marveling at how anyone could afford to live downtown in the new high-rises sprouting up around him.“Everything is just going up and up and up.”Cleveland, Mississippi, Jan. 25-27‘They were born there, raised there, and they have become homeless there’Kerria Whitley, an intern at the Bolivar Community Action Agency, takes photographs of a vacant home that has been occupied by unhoused folks for documentation.One of Florida McKay’s colleagues had passed on a tip: There was a woman living in a trailer without heat, light or water in Shelby, Miss., a little hamlet surrounded by the soybean and cotton fields north of town. On a cold and gray morning, Ms. McKay and Robert Lukes, who was helping to administer the Point-in-Time Count in the Mississippi Delta, drove past acres of mud-bogged farmland to find her.“The Delta’s a little different from other areas in terms of homelessness,” said Ms. McKay, the director of homeless services for the Bolivar County Community Action Agency, a nonprofit organization. There are plenty of people in need here — the median household income in Bolivar County is less than half of the nation’s and the poverty rate is roughly triple — but they are scattered across the region, making the Point-in-Time Count a sprawling exercise in detective work.On a street corner in Shelby, they parked near a blue and white trailer sagging into the grass. A woman opened the tattered door, hugging herself in the cold, and welcomed Ms. McKay and Mr. Lukes inside. Blankets were stapled over the windows and a rusty propane tank squatted at the end of a bed.Mr. Lukes began the questionnaire: name, age, how long had she been homeless. Vickey Wells, she said, born on Christmas Day, 1971. She had been living in this dark, cold room for most of a year. Asked how long she had been in the community, Ms. Wells seemed puzzled. She grew up down the street. “This is my home,” she said.“The Delta’s a little different from other areas in terms of homelessness,” said Florida McKay, the director of homeless services for the Bolivar County Community Action Agency, a nonprofit organization.Robert Lukes, center, and Ms. McKay with Vickey Wells inside a trailer she has been living for a year without gas, electricity and water.Rural areas are different in terms of homelessness and the Delta is perhaps more different still. In this vast expanse of rural Mississippi, one of the poorest regions of the country, there are very few shelters, very few multifamily housing developments and, relative to the rest of the country, fewer places for rent.It is a landscape of cropland and modest stand-alone homes, where families have lived — or did live — for generations. Some homes have been empty for years, left behind by a Great Migration of Black people out of the Delta that began early last century and has never really stopped. In contrast to big cities, where those who are homeless are often people who have moved there in search of opportunities, many of the people without a place to stay in the Delta are those who have never left. In some cases they seek shelter in the homes left by those who went elsewhere.“People in the Delta that are homeless are from the Delta,” said Hannah Maharrey, the director of the Mississippi Balance of State Continuum of Care, a federally funded program to address homelessness. It’s also the organization that Mr. Lukes works for. “They are literally homeless in their hometown. They lived there, they’re from there, their roots are there, they were born there, raised there, and they have become homeless there.”Some have been kicked out by family or marooned after the death of a parent; some are escaping abuse; some have fallen prey to addiction in a place where the margin for error is virtually nonexistent. Some never left their homes at all, staying as the structures around them decayed and utilities were cut off, becoming homeless without ever moving. The Point-in-Time Count relies on these local ranks and their network of sources — court clerks, gas station attendants, motel owners, police officers, longtime contacts within the homeless community itself. Kimberly Martin, 33, of Eudora, Ark., in a vehicle that she and her partner, Jason Matlock, have been living in for six months, in Greenville, Miss.Jobs in the Delta are scarce, government services are limited and the nonprofit infrastructure is thin, Ms. Maharrey said. The burden of helping the desperate falls largely to churches, neighbors and community groups.The Point-in-Time Count relies on these local ranks and their network of sources — court clerks, gas station attendants, motel owners, police officers, longtime contacts within the homeless community itself. On cold nights, those seeking shelter find sanctuary anywhere they can, in cars, abandoned homes and vacant strip malls. The only way to really know who is staying where is to live in these communities and know the people firsthand.The fact that the rural homeless population is harder to see is what makes the yearly census so important, Ms. Maharrey said. “When I talk to other communities, they find it difficult to believe that there’s homelessness in rural Mississippi, or that there’s homelessness in rural America,” she said. “The Point-in-Time Count gives us a reference point.”In Greenwood, Miss., population around 14,000, the team drove into a wooded lot where Donjua Parris, 43, had been living with her partner since the summer. Four years ago, her partner lost his maintenance job at the apartment building where they lived, she said, and when they were evicted, her family wouldn’t take them in. Ms. Lukes ran through the census questions with Ms. Parris, who shivered in the cold, then he asked her where they should go to find others.“There is a place,” she said, gesturing toward an area on the riverside of a nearby levee, where she said a pregnant woman was living. “She needs help.”A few minutes later, Mr. Lukes had climbed down the levee and found a campsite abandoned. If the woman had been there, she was gone now.Rockford, Illinois.‘Right now, I don’t got to worry anymore’Kathleen Combs speaks to a person seeking shelter for the night at a warming center at Second First Church in Rockford, Ill.Jamie Kelter Davis for The New York TimesEmpty bridges, empty alleys, an empty shanty behind a strip mall parking lot. Angie Walker ticked off a list of where people have been known to sleep. Outside, it was in the mid-20s with a light layer of snow upholstered on fences and grass.“Our hope is that nobody is outside,” said Ms. Walker, who oversees the homeless program for Rockford’s Health and Human Services Department. “We don’t usually get that lucky.”They did not, but they were close. After a three-hour search in a Chevy Suburban that at times went off-road and on bike paths, Ms. Walker and her team, which included a retired police officer and a member of the Fire Department, found only one person — a shivering man in a tent who clasped his hands as she ran through a list of survey questions — on the night of Rockford’s count.As Ms. Walker had predicted earlier in the evening, most of the night’s numbers consisted of the three-dozen people who laid on rectangles of padding parceled across a gym floor at Second First Church. On winter nights, the church becomes a warming center, providing a captive audience for Ms. Walker and the dozen others who spent an hour counting bodies and performing surveys after the drive.Not having to worry anymore: That is the goal of the tens of billions that city, state and federal governments spend each year in their so far futile effort to end homelessness.“Right now, I don’t got to worry anymore,” said Shirley Gill, 63, who was in for the evening.Douglas Webb, 54, a Marine Corps veteran, was unhoused and used to sleep in the warming center at Second First. Now he works at the center in the winter.Rockford is one of the country’s biggest success stories, having effectively ended the condition for veterans and chronically homeless individuals, or those who have experienced homelessness for at least a year, who have severe addiction problems or live with a disability of some kind.The road to those accomplishments was a program called “Built for Zero,” a coalition of 105 local governments nationwide whose members commit to reorganizing their social services and gathering monthly data with a goal of drastically reducing their homeless population. (In 2021, Community Solutions, the New York nonprofit that created “Built for Zero,” was awarded a $100 million grant from the MacArthur Foundation to expand the program.)Central to the work is a concept called “functional zero,” or the point at which the number of people going into and out of homelessness is equal each month, and anyone who experiences it isn’t homeless for more than a few weeks. This does not mean no one will ever be seen sleeping on the streets: Community Solutions instead likens its strategy to a hospital that can take care of everyone who shows up, even if the medical staff can’t prevent them from getting sick.“Before we get to a place where no one ever has to experience homelessness, we need some milestone that shows we have a system that can be responsive,” said Beth Sandor, chief program officer at Community Solutions.Rockford is one of the country’s biggest success stories, having effectively ended the condition for veterans and chronically homeless individuals.Shannon Kopp and Angie Gibbons talking to a man sleeping in a tent behind a shopping mall in Rockford. He has refused to sleep in a warming center but agreed to accept some supplies and food.Back at the warming center on the night of the count, Douglas Webb, a 54-year-old Marine Corps veteran, provided an example of good news. The first time Mr. Webb visited the warming center at Second First, he said, was after an outreach worker found him under a mass of blankets in a parking garage. Now he works at the warming center in the winter.“I was able to pull myself out of it,” he said.Mr. Webb is part of what is perhaps the most encouraging story in homelessness. Measured by the Point-in-Time Count, homelessness among veterans nationwide has plunged 55 percent since 2010, as the federal government has poured money into housing and support programs for them.Mr. Webb noted that he paid $620 for a one-bedroom apartment, low by national standards. (Rockford’s rents are about half the national level, according to a rental index compiled by Zillow.) This is a reflection of the city’s economic malaise. In the hours before the count, Ms. Walker gave a brief tour of Rockford, with sights that included an abandoned factory that used to provide good paying jobs, the anchor storefront that used to be a Kmart, the boarded-up school where people sometimes live.An abandoned shelter, often used by people without homes, near a highway in a wooded area in Rockford.The city of 147,000 is a picture of Rust Belt decline, with problems that are a magnification of the country’s stratifying economy: Over the past several decades, its base of middle-class manufacturing jobs has withered and been replaced by low-wage retail work, creating a cycle of poverty, despair and crime.As Ms. Walker surveyed a deserted encampment made with tarps and PVC piping, she noted that some of the city’s success in fighting homelessness could be attributed to its decline. In other words, because there’s been so much disinvestment, Rockford’s housing is cheaper and more plentiful than elsewhere. And such is the irony of homelessness: Economically speaking, it’s easier to solve it in places where things are going poorly than where things are going well. More

  • in

    Brian Deese, Top Economic Aide to Biden, Will Step Down

    Brian Deese, the director of the National Economic Council, played a pivotal role in negotiating economic legislation the president signed in his first two years in office.WASHINGTON — Brian Deese, who served as President Biden’s top economic adviser and helped create and negotiate the sweeping economic legislation that Mr. Biden signed into law in his first two years in office, will leave his position in mid-February.Mr. Biden announced the departure on Thursday, saying Mr. Deese’s work as director of the National Economic Council was crucial to the country’s economic recovery.“Brian has a unique ability to translate complex policy challenges into concrete actions that improve the lives of American people,” Mr. Biden said.The move is the latest high-level departure from the administration as Mr. Biden hits the two-year mark in his presidency and Republicans take control in the House. On Wednesday, Ron Klain, who has known Mr. Biden for more than three decades, stepped down as the White House chief of staff.The turnover comes as Mr. Biden is at something of a policy inflection point, shifting focus from passing laws to carrying them out.Mr. Deese, 44, helped to shape some of Mr. Biden’s most sweeping economic successes, including a $1.9 trillion aid package to help pull the nation from the pandemic recession, bipartisan measures to invest in infrastructure, and an energy, tax and health care measure that was the largest federal effort in history to combat climate change.But his legacy will include the high inflation that plagued the economy last year, which economists attribute in some part to spending from the $1.9 trillion American Rescue Plan. It will also include assembling the most diverse staff in terms of race and gender in the council’s history.The Biden PresidencyHere’s where the president stands as the third year of his term begins.State of the Union: President Biden will deliver his second State of the Union speech on Feb. 7, at a time when he faces an aggressive House controlled by Republicans and a special counsel investigation into the possible mishandling of classified information.Chief of Staff: Mr. Biden named Jeffrey D. Zients, his former coronavirus response coordinator, as his next chief of staff. Mr. Zients replaces Ron Klain, who has run the White House since the president took office.Eyeing 2024: Mr. Biden has been assailing House Republicans over their tax and spending plans, including potential changes to Social Security and Medicare, as he ramps up for what is likely to be a run for re-election.Mr. Deese hosted weekly breakfasts or lunches with Treasury Secretary Janet L. Yellen; Cecilia Rouse, the chairwoman of the White House Council of Economic Advisers; and Shalanda Young, the director of the White House Office of Management and Budget.Perhaps the sharpest criticism Mr. Deese faced as director was when he was appointed, from liberal groups wary of his previous job at the Wall Street giant BlackRock. Those criticisms have quieted somewhat as liberals applauded the climate bill and other legislation.“We were very skeptical of Deese’s decision to go to BlackRock and what that portended,” said Jeff Hauser, the director of the liberal Revolving Door Project. “He has worked out surprisingly well.”Mr. Deese’s departure was long planned. He has been commuting since late last summer from New England, where his wife and children live, to Washington. He does not yet have a new job lined up..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.The president has not decided on his successor. People familiar with the search process say Lael Brainard, the vice chair of the Federal Reserve, and Wally Adeyemo, the deputy Treasury secretary, appear to be the leading candidates for the job. Other contenders include Bharat Ramamurti, a deputy on the National Economic Council; Gene Sperling, a former director of the council under Presidents Bill Clinton and Barack Obama; and Sylvia M. Burwell, a former Obama aide who is now the president of American University.With Mr. Deese’s departure, his allies and colleagues say, Mr. Biden is losing the first and last person he consulted on economic issues and a driving force behind his domestic policy legacy.Ms. Rouse called Mr. Deese “an amazing partner as we navigated the rather choppy economic waters over the past two years.”Mr. Deese worked on the National Economic Council in the Obama White House, where he helped coordinate a bailout of the auto industry and negotiate a landmark international climate treaty in Paris. He joined Mr. Biden’s presidential campaign relatively late; along with Jake Sullivan, who is now the national security adviser, Mr. Deese helped to fashion a campaign platform that sought to curb global warming by investing heavily in new technologies that could help lower greenhouse gas emissions, like electric vehicles.Shortly after Mr. Biden was elected, Mr. Deese and colleagues on the presidential transition team began drafting what would become the American Rescue Plan. The week it passed the House, in mid-March, Mr. Deese and other aides huddled with Mr. Biden in the Oval Office to discuss the rest of the president’s plans for economic legislation.Mr. Deese urged the president to go big, maintaining the cost and ambition of the sweeping expansion of government in the economy that Mr. Biden had promised in the campaign. He prevailed: Mr. Biden later announced a $4 trillion economic agenda.Mr. Deese helped push that agenda through Congress by building relationships with swing-vote Democrats and moderate Republicans. He and a top Biden aide, Steven J. Ricchetti, camped out in the office of Senator Rob Portman, Republican of Ohio, in the waning days of negotiations over the infrastructure bill. Surrounded by Ohio sports jerseys, sustained by ordered-in salads, they hammered out the final details of what became Mr. Biden’s first big bipartisan win.Senators in those negotiations praised Mr. Deese for responding frankly to their concerns, in language that explained how legislative tweaks would affect people and businesses in the country.“Economists can — they can put you to sleep, and they talk, and when they get done, you don’t know what the hell you’ve heard,” Senator Jon Tester, Democrat of Montana, said in an interview. “That isn’t the case with Deese.”Senator Bill Cassidy, Republican of Louisiana and a key negotiator in the infrastructure talks, said that Mr. Deese was “a good poker player, and he’s a good negotiator. But once the commitment was made, I trusted that the commitment would be fulfilled.”Mr. Deese brought more climate expertise to the National Economic Council than any previous director, and it was on that issue that his congressional relationships paid the biggest dividends for Mr. Biden. In July, after months of negotiations, Senator Joe Manchin III, Democrat of West Virginia and a key swing vote, signaled to Democratic leaders that he could not support the climate bill Mr. Deese had helped fashion, apparently dooming the effort.But the following Monday, Mr. Manchin called Mr. Deese, with whom he had built a close relationship, including a zip-lining trip together. Mr. Manchin told Mr. Deese he still wanted to find agreement on a bill and invited him to the Capitol to continue talks that also included Senator Chuck Schumer of New York, the majority leader.Mr. Deese barely slept for the next week, colleagues say, as the negotiations wore on in secret and ultimately produced the Inflation Reduction Act. More

  • in

    Can A Trillion Dollar Coin Resolve the Debt Ceiling Crisis?

    The latest standoff over raising the nation’s debt ceiling is giving new life to an old theory about how to avoid a default.WASHINGTON — The debt limit standoff between Republicans and Democrats has elevated questions about creative solutions for averting a crisis, including one that at first blush might seem unthinkable: Could minting a $1 trillion platinum coin make the whole problem go away?What was once a fringe idea is now being presented to top economic policymakers as a serious remedy.Asked on Wednesday about the notion that there might be another option if Congress failed to lift the borrowing cap, Jerome H. Powell, the Federal Reserve chair, said there was not.“There’s only one way forward here, and that is for Congress to raise the debt ceiling so that the United States government can pay all of its obligations when due,” Mr. Powell said. “Any deviations from that path would be highly risky.”Treasury Secretary Janet L. Yellen was unable to avoid the debt limit crisis brewing back in the United States as she crisscrossed Africa last week and fielded queries about the coin, which she dismissed as a “gimmick.”Instead, Ms. Yellen sent two stern letters to Speaker Kevin McCarthy outlining the “extraordinary measures” she was taking to ensure the United States can keep paying its bills and urged Congress to “act promptly” to protect the nation’s full faith and credit by lifting the debt limit.President Biden told Mr. McCarthy on Wednesday that while there was room for discussion about addressing the deficit, Congress would have to pass a debt limit increase with no strings attached to avoid a financial cataclysm. Mr. Biden and Mr. McCarthy met at the White House for more than an hour in a discussion that carried high stakes, with the federal government set to exhaust its ability to pay its bills on time as early as June.But the idea of a coin still has its fair share of supporters, and they are not giving up.As political gridlock over the borrowing cap has hardened, the notion that the Treasury secretary could defuse the debt limit drama with her currency minting powers has re-emerged, including on Twitter, where the hashtag #MintTheCoin is again buzzing.Still, the feasibility of averting America’s debt crisis by minting a valuable piece of currency is far from clear. Here’s a look at origins of the coin, how it might be used and the potential consequences.A Most Extraordinary MeasureIf Congress cannot reach an agreement by early June to increase the debt limit, which was capped at $31.4 trillion in late 2021, Ms. Yellen’s ability to use government accounting tools to delay a default could soon be exhausted, and the United States would be unable to pay all of its bills on time.Treasury Secretary Janet L. Yellen in Zambia last month. She urged Congress to “act promptly” to protect the nation’s full faith and credit by lifting the debt limit.Fatima Hussein/Associated PressThis could cause a deep recession and potentially a financial crisis, shutting down large swaths of the economy and preventing beneficiaries of Social Security and Medicare from receiving their money. Although Ms. Yellen has the power to move funds around government accounts to delay a default, eventually the government’s coffers will run dry without the ability to raise more tax revenue or borrow more money.That’s where the coin comes in. Proponents of the idea believe Ms. Yellen could use her authority to instruct the U.S. Mint to produce a platinum coin valued at $1 trillion — or another large denomination — and deposit it with the Federal Reserve, the government’s banker, which manages the Treasury Department’s “general account.”Understand the U.S. Debt CeilingCard 1 of 5What is the debt ceiling? More

  • in

    Egg Shortages Are Driving Demand for Raise-at-Home Chickens

    Which shortage came first: the chicks or the eggs?Spooked by a huge spike in egg prices, some consumers are taking steps to secure their own future supply. Demand for chicks that will grow into egg-laying chickens — which jumped at the onset of the global pandemic in 2020 — is rapid again as the 2023 selling season starts, leaving hatcheries scrambling to keep up.“Everybody wants the heavy layers,” said Ginger Stevenson, director of marketing at Murray McMurray Hatchery in Iowa. Her company has been running short on some breeds of especially prolific egg producers, partly as families try to hedge their bets against skyrocketing prices and constrained egg availability.“When we sell out, it’s not like: Well, we can make another chicken,” she said.McMurray’s experience is not unique. Hatcheries from around the country are reporting that demand is surprisingly robust this year. Many attribute the spike to high grocery prices, and particularly to rapid inflation for eggs, which in December cost 59.9 percent more than a year earlier.“We’re already sold out on a lot of breeds — most breeds — until the summer,” said Meghan Howard, who runs sales and marketing for Meyer Hatchery in northeast Ohio. “It’s those egg prices. People are really concerned about food security.”Google search interest in “raising chickens” has jumped markedly from a year ago. The shift is part of a broader phenomenon: A small but rapidly growing slice of the American population has become interested in growing and raising food at home, a trend that was nascent before the pandemic and that has been invigorated by the shortages it spurred.“As there are more and more shortages, it’s driving more people to want to raise their own food,” Ms. Stevenson observed on a January afternoon, as 242 callers to the hatchery sat on hold, presumably waiting to stock up on their own chicks and chick-adjacent accessories.The Cackle Hatchery received eggs from local farms in Missouri. Hatcheries could theoretically hatch more chicks to meet the surge in demand, but is difficult in today’s economy.Neeta Satam for The New York TimesRaising chickens for eggs takes time and upfront investment. Brown-egg-layer chicks at McMurray’s cost roughly $4 a piece, and coops can cost hundreds or thousands of dollars to construct.Mandy Croft, a 39-year-old from Macon, Ga., serves as administrator on a Facebook group for new chicken farmers and is such an enthusiastic hobbyist that family members call her the “poultry princess.” Even she warned that raising chickens may not save dabblers money, but she said her group was seeing huge traffic nonetheless.“We get hundreds of requests a day for new members, and that’s due to the rising egg cost,” she said.Inflation F.A.Q.Card 1 of 5What is inflation? More

  • in

    U.S. Survey Shows an Uptick in Job Openings, and Not in Layoffs

    The Labor Department found a rise in the number of posted jobs per worker in December, despite the Fed’s efforts to cool the labor market.The nation’s demand for labor only got stronger in December, the Labor Department reported on Wednesday, as job openings rose to 11 million.That brings the number of posted jobs per available unemployed worker, which had been easing in recent months, back up to 1.9 — not what the Federal Reserve has been hoping for as it seeks to quell inflation.“It does make you question whether we continue to see that slowing in net job creation,” said Kathy Bostjancic, chief economist at the financial services company Nationwide. “There’s still a strong demand for workers, and that suggests that the labor market is still running very tight, and too hot.”The 5.5 percent increase in job openings was largely driven by hotels and restaurants, which have been steadily recovering from the pandemic, and jumped sharply to 1.74 million positions posted. Jerome H. Powell, the Fed chair, has been particularly focused on wage inflation in the services sector, but like wages more broadly, increases in hourly earnings in private services have been decelerating.In another sign of confidence among workers, people voluntarily left their jobs at about the same rate as they did in November. Quits as a share of the overall employment base have fallen slightly from 3 percent at the end of 2021, but plateaued over the past few months. Overall, in 2022, about 50 million Americans quit their jobs.Layoffs were also steady in December, staying at the unusually low level that has prevailed since a spike during the pandemic. While pink slips in the tech industry have mounted swiftly — most recently with 22,000 between Microsoft and Google — the bulk of the separations may have occurred after the labor turnover survey ended.Other indicators that employers are shedding workers, such as initial claims for unemployment insurance, have also remained very low by historical standards. Those leaving tech jobs, especially with software development and engineering skills, may have found new opportunities so quickly that they didn’t file for unemployment benefits. More