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    Biden Labor Secretary to Depart to Run N.H.L. Players Union

    Martin J. Walsh, a former mayor of Boston, was regarded as an unusually visible labor secretary.Labor Secretary Martin J. Walsh is leaving the Biden administration to become executive director of the National Hockey League Players’ Association, the union announced on Thursday.Mr. Walsh, a former Boston mayor who had led the city’s powerful Building and Construction Trades Council, helped to bolster the Biden administration’s pro-union credentials and usher in a period of more aggressive workplace regulation after the relatively hands-off approach during the Trump administration.Mr. Walsh said in a statement that he would leave the Labor Department in mid-March.Alongside President Biden, who has been more vocal about supporting unions than any other president in decades, Mr. Walsh was arguably the administration’s most visible proponent of unions. He joined Mr. Biden and Vice President Kamala Harris in meeting union organizers at the White House, and he served as vice chairman of an administration task force exploring how the federal government could increase union membership.Although union membership fell to 10.1 percent of the work force last year, the lowest rate on record, the country added nearly 300,000 union members amid a wave of worker organizing at major corporations including Starbucks, Amazon and Apple. (The rate fell because the work force grew even more rapidly.) Mr. Walsh cheered on the trend and warned employers to respect workers’ desire to unionize and refrain from coercive tactics.“As secretary of labor, I don’t appreciate that,” he said in an interview in August, when asked about complaints issued against Starbucks by the National Labor Relations Board. Workers who choose to organize “should be treated fairly and respectfully, not intimidated,” he added. Starbucks has denied violating labor law.Labor Organizing and Union DrivesTesla: A group of workers at a Tesla factory in Buffalo have begun a campaign to form the first union at the auto and energy company, which has fiercely resisted efforts to organize its employees.Apple: After a yearlong investigation, the National Labor Relations Board determined that the tech giant’s strictly enforced culture of secrecy interferes with employees’ right to organize.N.Y.C. Nurses’ Strike: Nurses at Montefiore Medical Center in the Bronx and Mount Sinai in Manhattan ended a three-day strike after the hospitals agreed to add staffing and improve working conditions.Amazon: A federal labor official rejected the company’s attempt to overturn a union victory at a warehouse on Staten Island, removing a key obstacle to contract negotiations between the union and the company.In the Inflation Reduction Act, the major climate and health bill that Mr. Biden signed last year, Mr. Walsh helped push for labor-friendly provisions, including incentives for the owners of clean energy projects to pay wages similar to union rates.When it came to regulation, Mr. Walsh’s approach was most visible in the Labor Department’s response to the Covid-19 pandemic. The Occupational Safety and Health Administration, an agency within the department, had declined to issue a new workplace rule governing Covid-19 under President Donald J. Trump.But Mr. Biden and Mr. Walsh pushed the agency to issue two so-called emergency standards — one outlining the steps employers in the health care industry would have to take to protect workers, and another requiring workers to either be vaccinated against the coronavirus or wear masks and be tested regularly. The Supreme Court blocked the latter rule, though it let stand a provision from another agency that required workers to be vaccinated at facilities that received funding from Medicare and Medicaid.After an executive order from Mr. Biden, the Labor Department also put forth a rule raising the minimum wage for federal contractors last year to $15 an hour. It proposed a rule that would make it more likely for millions of workers in industries like home care, construction and gig work to be classified as employees rather than independent contractors, guaranteeing them a minimum wage and overtime pay, and another that could raise the wages paid to construction workers on federally funded projects.It has recently cited six Amazon warehouses for creating work environments that have high risk for musculoskeletal injuries among workers. Amazon has said the accusations don’t reflect the steps it takes to ensure worker safety..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.Ann Rosenthal, a longtime Labor Department lawyer who was at the department during the first year of the Biden administration, said Mr. Walsh was among the most effective of the 13 secretaries she served because of his credibility with unions and other worker advocates, his close relationship with Mr. Biden, and his political instincts and pragmatism. “He really checked all the boxes,” Ms. Rosenthal said.Mr. Walsh’s tenure at the department was not without controversy. Most prominent was the deal he helped broker in September between major freight rail carriers and a dozen unions representing more than 100,000 rail workers. The deal helped to avert a potentially crippling strike before the midterm elections and granted improvements in health benefits and wage increases of nearly 25 percent over five years.But the deal lacked paid sick days, and some workers complained that it did little to ease the grueling, unpredictable schedules that had put stress on their personal lives and health. Although members of four rail unions voted down the deal, the administration urged Congress to mandate the deal in November, and the president signed legislation enacting it. (Last week, one of the carriers, CSX, announced an agreement with unions that would provide four paid sick days a year for about 5,000 workers; a White House spokeswoman said Mr. Walsh had continued to push the rail carriers to offer paid sick leave.)Critics also complained that OSHA under Mr. Walsh didn’t go far enough in protecting workers from Covid-19. They said the agency should have devised regulations that applied to a variety of high-risk industries, such as meat processing, grocery and retail, not just health care. (The department said it had the power to ensure worker safety in these industries through other means, such as a so-called general duty clause.)Other rules, like the independent contractor rule and the one governing construction-worker wages, were proposed but not finalized during the first two years of the Biden administration — a delay that has worried some supporters.And Mr. Walsh and his administration colleagues failed in their efforts to win legislation that would have made it easier for workers to unionize, such as the Protecting the Right to Organize Act, or PRO Act, which would have blocked employers from requiring workers to attend anti-union meetings and made it possible to impose penalties on employers that violated labor law. The House passed the measure, but it stalled in the Senate.The Senate also killed a measure that would have granted consumers a $4,500 incentive to buy electric vehicles assembled at unionized plants in the country.A battery plant in Ohio that is a joint venture of General Motors and the South Korean manufacturer LG Energy Solution recently unionized. But without the kind of legislation that the Senate has balked at, unions face much longer odds in organizing at a proliferation of new battery and electric vehicle plants in the South.Mr. Walsh is a longtime fan of the Boston Bruins and has received political contributions from the hockey team’s owner. The Daily Faceoff, a hockey publication, previously reported on the contributions.The New York Times reported last month that Mr. Walsh was one of several candidates under consideration to replace Ron Klain as Mr. Biden’s chief of staff. That job eventually went to Jeffrey D. Zients. More

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    President Biden Is Not Backing Off His Big-Government Agenda

    In his first appearance before a Republican House, the president renewed calls for large new economic programs and offered no concessions on federal spending.WASHINGTON — There were no economic pivots in President Biden’s first State of the Union address to a Republican House. He did not pare back his push to raise taxes on high earners or to spend big on new government programs. He offered no olive branches to conservatives who have accused him of running the country into crisis with government borrowing.It was a shift from Mr. Biden’s two most recent Democratic predecessors in the White House, who tacked toward a more conciliatory and limited-government approach to economic policy after losing at least one chamber of Congress. But on Tuesday night, Mr. Biden barreled ahead. The president renewed his calls for trillions of dollars of new federal programs, including for child care and community college, over the sometimes raucous objections of Republicans who have centered their fight with Mr. Biden on the issue of spending and debt. He did not name a single federal spending program he was willing to cut. He said he would work to reduce budget deficits, but by raising taxes on high earners and corporations, a position anathema to Republicans.The speech was not a blueprint to pass any of those proposals, which have little chance of becoming law during his first term.Instead, it was a defiant opening bid for a high-stakes clash over raising the nation’s borrowing limit. It was a no-quarter recommitment to a campaign theme aimed squarely at blue-collar voters in 2024 swing states, centered on expanding government in pursuit of what Mr. Biden calls “middle-out” economic policy.Aides say the choice to defy Republicans’ calls for Mr. Biden to change course on economic policy was deliberate, reflecting both the president’s deeply held convictions on policy and his belief that he has found a winning political message.It was also a bet that the economy, which has so far been a drag on Mr. Biden’s popularity, will ultimately prove to be a tailwind in his widely expected re-election campaign. Rapid price gains are beginning to ease, and jobs are plentiful, with the unemployment rate at its lowest point since 1969.Biden’s State of the Union AddressChallenging the G.O.P.: In the first State of the Union address of a new era of divided government, President Biden delivered a plea to Republicans for unity but vowed not to back off his economic agenda.State of Uncertainty: Mr. Biden used his speech to portray the United States as a country in recovery. But what he did not emphasize was that America also faces a lot of uncertainty in 2023.Foreign Policy: Mr. Biden spends his days confronting Russia and China. So it was especially striking that in his address, he chose to spend relatively little time on America’s global role.A Tense Exchange: Before the speech, Senator Mitt Romney admonished Representative George Santos, a fellow Republican, telling him he “shouldn’t have been there.”To that end, Mr. Biden spent much of the speech proclaiming that the American economy is faring better on his watch than his critics — or even many of his voters — concede. He dived into details about laws he has signed to invest in water pipes, semiconductor factories, electric vehicles and more, while promising those plans would bring high-paying jobs to workers without college degrees. He promised consumer-friendly crackdowns on credit card fees, social media companies and more. On Wednesday, Mr. Biden was headed to Wisconsin to promote his economic legislation, while his cabinet secretaries fanned out across the country to do the same.“We’re building an economy where no one’s left behind,” Mr. Biden said in his speech. “Jobs are coming back, pride is coming back, because choices we made in the last several years. You know, this is, in my view, a blue-collar blueprint to rebuild America and make a real difference in your lives at home.”“Here’s my message to all of you out there,” he added later. “I have your back.”Mr. Biden’s approach underscored how he has not regarded the Republican House takeover as a rebuke of his policies..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.It defied the example set by Mr. Biden’s Democratic predecessors after they lost House control in their first midterms. President Bill Clinton promised a new era of smaller government in 1995. President Barack Obama vowed in 2011 “to take responsibility for our deficit” and proposed what he called “painful cuts” to domestic spending.Mr. Biden offered no apology for his policies. He cast himself as more fiscally responsible than his immediate predecessor, former President Donald J. Trump, in claiming credit for a $1.7 trillion decline in the federal budget deficit last year. That improvement was largely the product of expiring pandemic aid programs, but Mr. Biden suggested he would take steps to keep winnowing the shortfall between what the government spent and what it earned through taxes and other revenue. He said his next budget, which will be released on March 9, would further reduce deficits by $2 trillion over a decade.In a sharp contrast with Republicans, he called for raising taxes on corporations and the wealthy as a way to show a commitment to deficit reduction in spite of his spending plans. His proposals included an expanded tax on stock buybacks and what would effectively be a sort of wealth tax on billionaires.He baited Republicans on a pair of politically cherished programs, Social Security and Medicare, drawing sustained jeers when he said some of his opponents wanted to sunset the programs. While hundreds of Republican lawmakers have signed on to plans to reduce spending on the safety net by raising retirement ages and other reductions in future benefits, Mr. Biden’s “sunset” accusation rests on the possible effects of a plan to reauthorize spending programs every five years, advanced by Senator Rick Scott of Florida, which has gained little traction among party leaders.Republicans called the speech a departure from Mr. Biden’s previous calls for unity and a disconnect on major economic issues.“While the president is busy taking a premature and undeserved victory lap, lauding legislation that Democrats passed on a party-line basis, families in West Virginia and America are struggling at every turn because many of the policies and priorities of this administration have made the American dream harder to attain,” Senator Shelley Moore Capito, Republican of West Virginia, said in a release after the address.Mr. Biden’s allies cheered. The president “delivered a bold blueprint for an economy that, at long last, puts working people first,” Liz Shuler, the president of the powerful A.F.L.-C.I.O. labor organization, said in a news release on Tuesday evening.Mr. Biden fashions himself a congressional deal maker, and on Tuesday, he outlined a handful of smaller-scale initiatives on other issues, like curbing the flow of fentanyl and regulating big tech, that might plausibly win bipartisan support in the new Congress. But the speech was not a recipe for economic compromise.The president re-upped calls for big new federal investments in child care and assistance for the elderly, community college, prekindergarten and health insurance. But he offered no plausible road to finishing the job, as he put it, on that long list of proposals, which he was unable to include in the wide array of economic legislation he signed in his first two years because of opposition from centrist Democrats in the Senate.What he did outline was a defiant negotiating posture, as he and Republican lawmakers battle over raising the $31.4 trillion federal borrowing limit, which the United States hit last month. That cap, which limits the government’s ability to borrow funds to pay for spending that Congress has already authorized, must be suspended or lifted later this year in order for the United States to continue paying its bills and avoid a financial crisis.Republicans are refusing to raise the limit unless Mr. Biden agrees to deep spending cuts. Mr. Biden has said he will refuse to bargain over the borrowing cap and on Tuesday night reminded Republicans that they had agreed to effectively increase the debt limit three times when Mr. Trump was president. Despite what both sides called a productive meeting at the White House last week between the president and Speaker Kevin McCarthy, Republican of California, Mr. Biden did not waver in that position on Tuesday.“We’re not going to be moved into being threatened to default on the debt,” Mr. Biden said.Mr. McCarthy, seated behind him, did not look pleased. More

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    As Biden Prepares to Tout Economy, Fed Chair Powell Takes a Cautious Tone

    The White House has embraced signs that the economy is strong. For the Fed, that strength could prolong its fight against inflation.WASHINGTON — Jerome H. Powell, the chair of the Federal Reserve, underscored that the central bank has more work to do when it comes to slowing the economy and that officials remain determined to wrestle rapid inflation under control, even if that means pushing rates higher than expected.Mr. Powell, speaking on Tuesday in a question-and-answer session at the Economic Club of Washington, D.C., called a recent slowdown in price increases “the very early stages of disinflation.” He added that the process of getting inflation back to normal was likely to be bumpy.“There has been an expectation that it will go away quickly and painlessly — and I don’t think that’s at all guaranteed; that’s not the base case,” Mr. Powell said. “The base case for me is that it will take some time, and we’ll have to do more rate increases, and then we’ll have to look around and see whether we’ve done enough.”The Fed chair’s comments came hours before President Biden delivered the annual State of the Union address, which offered a contrasting tone.Democrats are embracing a historically strong economy with super-low unemployment and rapid wage growth, cheering a report last week that showed employers added more than half a million jobs in January. But Fed officials have met the news with more caution. The central bank is supposed to foster both full employment and stable inflation, and policymakers have been concerned that the strength of today’s job market could make it harder for them to return wage and price increases to historically normal levels.Mr. Powell said that the Fed had not expected the jobs report to be so strong, and that the robustness reinforced why the process of lowering inflation “takes a significant period of time.”While he said it was good that the disinflation so far had not come at the expense of the labor market, he also underscored that further interest rate moves would be appropriate and that borrowing costs would need to remain high for some time. And he embraced how markets have adjusted in the wake of the strong hiring numbers: Investors had previously expected the Fed to stop adjusting policy very soon, but now see rate increases in both March and May.The biggest inflation challenge facing the Fed is in the services sector of the economy, which includes restaurants, travel and health care.Jim Wilson/The New York Times“We anticipate that ongoing rate increases will be appropriate,” Mr. Powell said. He said that in the wake of the jobs report, financial conditions were “more well aligned” with that view than they had been previously.To try to slow the economy and choke off inflation, policymakers raised interest rates from near zero early last year to more than 4.5 percent at their last meeting, the quickest pace of adjustment in decades. Higher borrowing costs weigh on demand by making it more expensive to fund big purchases or business expansions. That in turn tempers hiring and wage growth, with further cools the economy. Inflation F.A.Q.Card 1 of 5What is inflation? More

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    Immigration Rebound Eases Shortage of Workers, Up to a Point

    While the Biden administration has accelerated processing after Trump-era restrictions and a pandemic slowdown, visa backlogs remain large.The flow of immigrants and refugees into the United States has ramped up over the past year, helping to replenish the American labor force after a decline that began with restrictions imposed under the Trump administration and that was compounded by the pandemic.The Biden administration has been accelerating visa processing and broadly using humanitarian parole programs for migrants fleeing war and economic instability. Those efforts have driven a rebound in the foreign-born population — welcome news for the Federal Reserve, which has been concerned that a persistent shortage of workers could send wages higher and lead inflation to become entrenched.Friday’s employment report for January, showing a blockbuster gain of 517,000 jobs, confirms that the economy continues to demand more labor. Moderating wage growth, however, suggests that enough workers are arriving to keep costs in check.“When the unemployment rate goes down, you would normally expect wage inflation to go up, but that’s not what’s happening,” said Torsten Slok, chief economist at Apollo Global Management. “So there must be something else moving in the labor force, and there is a very likely explanation here that immigrants are coming in and taking jobs.”But despite the resurgence in the foreign-born labor force — about four-fifths of it are people legally allowed to work in the United States, by one calculation — there are bottlenecks.Legal immigration remains below pre-Trump levels. Hundreds of thousands of people await interviews with U.S. consular officials to obtain immigrant visas. Millions of asylum cases are pending, and getting work authorization for those already here can take years.The uneasy state of immigration policy, a contentious political issue for years, is felt every day by Al Flores, the general counsel at a group of Tex-Mex restaurants in the Houston area and a restaurant owner himself.When the restaurants reduced staffing during the pandemic, many of their workers went to places that were hiring — like the construction industry — and rehiring was a challenge given the sharp immigration slowdown of 2020.The company now employs about 2,500 people, at least 12 percent of whom are able to work under the Deferred Action for Childhood Arrivals program, or DACA, which has been in jeopardy since Mr. Trump decided to terminate it; challenges are winding their way through the courts. Another 10 percent have temporary protected status, a designation granted to people who have fled from countries in turmoil, which often allows them to stay in the United States for years.Alma Moreno, a cook at Hacienda Tacos y Tamales in Houston, is a Salvadoran who has temporary protected status in the United States.Callaghan O’Hare for The New York Times“It’s gotten a little bit better, but we’re seeing a drop in permanent visas and an increase in temporary ones,” Mr. Flores said. “At some point those folks have to move on, sometimes to other countries where there’s more open arms. And that’s tough for us, because we need the labor.”The State of Jobs in the United StatesEconomists have been surprised by recent strength in the labor market, as the Federal Reserve tries to engineer a slowdown and tame inflation.Job Trends: The Labor Department reported that the nation’s demand for labor only got stronger in December, as job openings rose to 11 million.Burrito Season: Chipotle Mexican Grill, the fast-casual food chain, said that it planned to hire 15,000 workers ahead of its busiest time of year, from March to May.Retail Industry: With consumers worried about inflation in the prices of day-to-day necessities like food, retailers are playing defense and reducing their work forces.Tech Layoffs: The industry’s recent job cuts have been an awakening for a generation of workers who have never experienced a cyclical crash.The path of immigration policy will have a substantial bearing on the nation’s supply of workers, which has been expanding more slowly as native-born workers have fewer children. The Congressional Budget Office projects that by 2042, net immigration will be the nation’s only source of population growth.The dip in immigration occurred in multiple ways, beginning with the inauguration of Donald J. Trump as president in 2017. The cap on refugees allowed to enter the United States dropped to 15,000 in 2020, the lowest level in decades. Measures like a ban on immigrants from Muslim countries, even though the courts eventually overturned it, deterred people from trying to come.Some of Mr. Trump’s changes were more subtle. The Department of Homeland Security slow-walked visas by asking for more evidence and interviews, said Shev Dalal-Dheini, head of government affairs for the American Immigration Lawyers Association, and then it shut down processing — which is largely paper-based, not electronic — during the pandemic.Even when lockdowns eased, U.S. Citizenship and Immigration Services had a difficult time ramping back up because with no processing fees, it lacked the funds to rehire staff who had left. Staffing at U.S. embassies, which conduct visa interviews in other countries, had also atrophied.“They’ve had to play catch-up with that for a long, long time,” said Ms. Dalal-Dheini, who left the immigration agency in 2019. “Once the Biden administration came in, they reset some of those policies designed to slow down the process, and then were focused on building back up their work force.”The result has been that visas for visitors, temporary workers and permanent immigrants rose to 7.3 million in 2022, up from 3.1 million the previous year but still down from the more than 10 million issued annually in the three years before Mr. Trump took office. President Biden also granted humanitarian parole and temporary protected status to migrants from several more countries, including Ukraine and Afghanistan, allowing hundreds of thousands more people to stay and the opportunity to work in the United States.The number of new citizens hit a 15-year high in 2022. And the cap on refugees was raised to 125,000 in 2022, although the administration managed to process only about 25,000.Those measures increased net immigration to about a million people last year, the highest level since 2017, according to the Census Bureau. The foreign-born work force grew much more quickly than the U.S.-born work force, Labor Department figures show. (According to an analysis by FWD.us, a business-backed group that favors more immigration, 78 percent of the foreign-born labor force has legal work status.)The growth in immigration has helped power the job recoveries in leisure and hospitality and in construction, where immigrants make up a higher share of employment, and where there were bigger increases in wages and job vacancies. More

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    Job Growth Is a Boost for Biden as He Bets on a Lasting Turnaround

    PHILADELPHIA — President Biden on Friday seized on what he called “strikingly good news” about the economy, hailing the addition of a half-million jobs and capping a week of presidential swagger about the direction of the country.Just days before he delivers his second assessment of the State of the Union in an address before Congress next week, Mr. Biden has all but dropped the “I feel your pain” message he frequently delivered last year as inflation soared.Instead, Mr. Biden traveled around the country this week, pointing to the real-world impact of legislation he championed to spend billions of dollars on the nation’s crumbling infrastructure and unabashedly taking credit for what he is betting will be a lasting turnaround as the Covid-19 pandemic wanes.In Philadelphia, Mr. Biden boasted about the new bridges that will be built and rusty lead pipes that will be replaced because of his efforts. And he praised the country’s businesses for creating 12 million jobs since he took office.“There’s now 12 million more Americans who can look at their kid and say: ‘It’s going to be OK,’” he told a group of workers at a water treatment plant. “And what it’s done mostly is to provide dignity for those families.”But looking on the bright side has its risks, especially since the red-hot job growth in January has the potential to trigger more aggressive interest rate hikes from the Federal Reserve as it tries to keep a lid on high inflation. Prices have still risen at a rate of 6.5 percent, down from last year but well above the average for the last several decades.And economic uncertainty is far from gone as Republicans threaten not to raise the debt limit later this year, a move that economists say would shatter global financial confidence and plunge the nation into recession.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.Economic Aide Steps Down: Brian Deese, who played a pivotal role in negotiating economic legislation Mr. Biden signed in his first two years in office, is leaving his position as the president’s top economic adviser.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.Previous presidents who have been too rosy about the economy have been punished by voters who see them as out-of-touch with their real-life issues. President George Bush lost his re-election bid in 1992 after seeming to dismiss the impact of an inflation-driven recession on middle-class workers.“This is the hardest thing to do in politics,” said James Carville, the Democratic strategist who helped Bill Clinton defeat Mr. Bush that year. “In a recovery, when can you say there’s a recovery and things are good? When people don’t think it’s good and you say it’s good, they get angry with you.”That same dynamic hurt Mr. Clinton politically in 1994, Mr. Carville recalled.“Although the economy was doing better, if we said it, the blowback was: ‘The guy is out of touch,’” he said. “That’s the most difficult and vexing problem that any incumbent has.”The White House has also been anxious over a worker shortage as Mr. Biden focuses on the implementation of his infrastructure, economic and climate legislation this year to galvanize voters. The labor market has remained tight; data released this week showed that the number of posted jobs per available unemployed worker rose again in December.But Mr. Biden and his team appear to have decided that it is not a time to hold back.The United States added 517,000 jobs in January alone, the Labor Department said on Friday, and the unemployment rate fell to 3.4 percent, the lowest rate of joblessness since before the first moon landing in the summer of 1969.The 12 million jobs added since Mr. Biden took office amount to “the strongest two years of job growth in history — by a long shot,” Mr. Biden crowed in remarks at the White House, adding that the new jobs report proves that a “chorus of critics” were just plain wrong about his approach to the economy..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.Those critics often note that the dramatic job growth during Mr. Biden’s term is the result of needed rebuilding after the loss of about 10 million jobs in the country because of pandemic-related shutdowns.Just moments after Friday’s jobs report came out, members of Mr. Biden’s team took to social media. Shalanda Young, the president’s budget director, noted the unemployment rate, saying “@POTUS’s economic plan is delivering.” Ian Sams, the spokesman for the White House Counsel’s Office, criticized Republicans for “political stunt” investigations.“House Rs could instead join @POTUS to focus on issues affecting people’s lives like jobs & work together on this historic progress,” he wrote alongside a chart showing the decline in the unemployment rate since Mr. Biden took office.The president and his team are unlikely to get that kind of cooperation from his adversaries, especially after an announcement on his likely re-election bid, a move expected in the coming weeks or months.Despite his administration’s accomplishments, Mr. Biden remains in a politically perilous situation with voters after two years in office. A recent public opinion survey by NBC News indicated that a plurality of voters do not think he is “honest and trustworthy,” has the “ability to handle a crisis,” is “competent and effective,” or is “uniting the country.”In the survey, 54 percent said Mr. Biden does not have the “necessary mental and physical health to be president.” Only 28 percent said he does.Still, the president’s aides are betting that voters will be more focused on how they experience the economy: Do they have jobs? Can they afford to buy groceries and gas? Do they have the resources to take a vacation or buy a car?A year ago, with gas prices soaring, Mr. Biden went out of his way to make sure Americans knew he felt their financial frustration with the situation, saying “I get it,” and adding: “I know how much it hurts.”On Friday, that sentiment was largely replaced by an unrestrained enthusiasm in the wake of one of the biggest employment increases in months.Mr. Biden has for months pointed to job growth as evidence that his agenda has rebuilt the economy after the coronavirus pandemic shuttered much of the United States. On Friday, he amplified that narrative to draw a contrast between what he says are policies that produced steady growth and the tax and spending plans of some House Republicans.Throughout his time in office, rising consumer prices have been one of the more glaring political vulnerabilities for Mr. Biden. The Fed on Wednesday raised interest rates for an eighth consecutive time in a year in an effort to cool rapid inflation.Republicans have accused the White House of worsening inflation by injecting too much money into the economy and have called for major spending cuts.Asked after his remarks whether he takes responsibility for inflation that remains high, Mr. Biden said he does not.“Because it was already there,” he said. “When I got here, man. Remember what the economy was like? Jobs were hemorrhaging. Inflation was rising? We weren’t manufacturing a damn thing here. We were in real economic difficulty.”“That’s why I don’t,” he said. More

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    Biden Weighs State of the Union Focus on His Unfinished Agenda

    As the president prepares for his national address, his aides debate an emphasis on his still-unrealized plans for child care, prekindergarten and more.WASHINGTON — President Biden’s top economic aides have battled for weeks over a key decision for his State of the Union address on Tuesday: how much to talk about child care, prekindergarten, paid leave and other new spending proposals that the president failed to secure in the flurry of economic legislation he signed in his first two years in office.Some advisers have pushed for Mr. Biden to spend relatively little time on those efforts, even though he is set to again propose them in detail in the budget blueprint he will release in March. They want the president to continue championing the spending he did sign into law, like investments in infrastructure like roads and water pipes, and advanced manufacturing industries like semiconductors, while positioning him as a bipartisan bridge-builder on critical issues for the middle class.Other aides want Mr. Biden to spend significant time in the speech on an issue set that could form the core of his likely re-election pitch to key swing voters, particularly women. Polls by liberal groups suggest such a focus, on helping working families afford care for their children and aging parents, could prove a winning campaign message.The debate is one of many taking place inside the administration as Mr. Biden tries to determine which issues to focus on in a speech that carries extra importance this year. It will be Mr. Biden’s first address to the new Republican majority in the House, which has effectively slammed the brakes on his legislative agenda for the next two years. And it could be a preview for the themes Mr. Biden would stress on the 2024 campaign trail should he run for a second term.Administration officials caution that Mr. Biden has not finalized his strategy. A White House official said Friday that the president was preparing to tout his economic record and his full vision for the economy.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.Economic Aide Steps Down: Brian Deese, who played a pivotal role in negotiating economic legislation Mr. Biden signed in his first two years in office, is leaving his position as the president’s top economic adviser.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.Few of Mr. Biden’s advisers expect Congress to act in the next two years on paid leave, an enhanced tax credit for parents, expanded support for caregivers for disabled and older Americans or expanded access to affordable child care. All were centerpieces of the $1.8 trillion American Families Plan Mr. Biden announced in the first months of his administration. Mr. Biden proposes to offset those and other proposals with tax increases on high earners and corporations.Earlier this week, Mr. Biden hinted that he may be preparing to pour more attention on those so-called “care economy” proposals, which he and his economic team say would help alleviate problems that crimp family budgets and block would-be workers from looking for jobs.At a White House event celebrating the 30th anniversary of a law that mandated certain workers be allowed to take unpaid medical leave, Mr. Biden ticked through his administration’s efforts to invest in a variety of care programs in the last two years, while acknowledging failure to pass federally mandated paid leave and other larger programs.Mr. Biden said he remained committed to “passing a national program of paid leave and medical leave.”“And, by the way, American workers deserve paid sick days as well,” he said. “Paid sick days. Look, I’ve called on Congress to act, and I’ll continue fighting.”.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.For Mr. Biden, continuing to call for new spending initiatives aimed at lower- and middle-income workers would draw a clear contrast with the still-nascent field of Republicans seeking the White House in 2024. It would cheer some outside advocacy groups that have pushed him to renew his focus on programs that would particularly aid women and children.The State of the Union speech “presents the president with a rare opportunity to take a victory lap and, simultaneously, advance his agenda,” the advocacy group First Focus on Children said in a news release this week. “All to the benefit of children.”The efforts could also address what Mr. Biden’s advisers have identified as a lingering source of weakness in the recovery from the pandemic recession: high costs of caregiving, which are blocking Americans from looking for work. The nonprofit group ReadyNation estimates in a new report that child care challenges cost American families $78 billion a year and employers another $23 billion.“Among prime-age people not working in the United States, roughly half of them list care responsibilities as the main reason for not participating in the labor force,” Heather Boushey, a member of the White House Council of Economic Advisers, told reporters this week. She noted that the jobs rebound has lagged in care industries like nursing homes and day care centers.“These remain economic challenges and addressing them could go a long ways towards supporting our nation’s labor supply,” she said.But focusing on that unfinished economic work could conflict with Mr. Biden’s repeated efforts this year to portray the economy as strong and position him as a president who reached across the aisle to secure big new investments that are lifting growth and job creation. On Friday, the president celebrated news that the economy created 517,000 jobs in January, in a brief speech that did not mention the challenges facing caregivers.Calling for vast new spending programs also risks further antagonizing House conservatives, who have made government spending their first large fight with the president. Republicans have threatened to allow the United States to fall into an economically catastrophic default on government debt by not raising the federal borrowing limit, unless Mr. Biden agrees to sharp cuts in existing spending.“Revenue into the government has never been higher,” Speaker Kevin McCarthy, Republican of California, told reporters on Thursday, a day after he met with Mr. Biden at the White House to discuss fiscal issues and the debt limit. “It’s the highest revenue we’ve ever seen in. So it’s not a revenue problem. It’s a spending problem.”Catie Edmondson More

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    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