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    How TV Writing Became a Dead-End Job

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    The writers say Hollywood studios are increasingly limiting their roles in television productions, highlighting a trend for white-collar workers.For the six years he worked on “The Mentalist,” beginning in 2009, Jordan Harper’s job was far more than a writing gig. He and his colleagues in the writers’ room of the weekly CBS drama were heavily involved in production. They weighed in on costumes and props, lingered on the set, provided feedback to actors and directors. The job lasted most of a year.But by 2018, when he worked on “Hightown,” a drama for Starz, the business of television writing had changed substantially. The writers spent about 20 weeks cranking out scripts, at which point most of their contracts ended, leaving many to scramble for additional work. The job of overseeing the filming and editing fell largely to the showrunner, the writer-producer in charge of a series.“On a show like ‘The Mentalist,’ we’d all go to set,” Mr. Harper said. “Now the other writers are cut free. Only the showrunner and possibly one other writer are kept on board.”The separation between writing and production, increasingly common in the streaming era, is one issue at the heart of the strike begun in May by roughly 11,500 Hollywood writers. They say the new approach requires more frequent job changes, making their work less steady, and has lowered writers’ earnings. Mr. Harper estimated that his income was less than half what it was seven years ago.While their union, the Writers Guild of America, has sought guarantees that each show will employ a minimum number of writers through the production process, the major studios have said such proposals are “incompatible with the creative nature of our industry.” The Alliance of Motion Picture and Television Producers, which bargains on behalf of Hollywood studios, declined to comment further.SAG-AFTRA, the actors’ union that went on strike last week, said its members had also felt the effects of the streaming era. While many acting jobs had long been shorter than those of writers, the union’s executive director, Duncan Crabtree-Ireland, said studios’ “extreme level of efficiency management” had led shows to break roles into smaller chunks and compress character story lines.But Hollywood is far from the only industry to have presided over such changes, which reflect a longer-term pattern: the fracturing of work into “many smaller, more degraded, poorly paid jobs,” as the labor historian Jason Resnikoff has put it.In recent decades, the shift has affected highly trained white-collar workers as well. Large law firms have relatively fewer equity partners and more lawyers off the standard partner track, according to data from ALM, the legal media and intelligence company. Universities employ fewer tenured professors as a share of their faculty and more untenured instructors. Large tech companies hire relatively fewer engineers, while raising armies of temps and contractors to test software, label web pages and do low-level programming.Over time, said Dr. Resnikoff, an assistant professor at the University of Groningen in the Netherlands, “you get this tiered work force of prestige workers and lesser workers” — fewer officers, more grunts. The writers’ experience shows how destabilizing that change can be.The strategy of breaking up complex jobs into simpler, lower-paid tasks has roots in meatpacking and manufacturing. At the turn of the 20th century, automobiles were produced largely in artisanal fashion by small teams of highly skilled “all around” mechanics who helped assemble a variety of components and systems — ignition, axles, transmission.By 1914, Ford Motor had repeatedly divided and subdivided these jobs, spreading more than 150 men across a vast assembly line. The workers typically performed a few simple tasks over and over.For decades, making television shows was similar in some ways to the early days of automaking: A team of writers would be involved in all parts of the production. Many of those who wrote scripts were also on set, and they often helped edit and polish the show into its final form.The “all around” approach had multiple benefits, writers say. Not least: It improved the quality of the show. “You can write a voice in your head, but if you don’t hear it,” said Erica Weiss, a co-showrunner of the CBS series “The Red Line,” “you don’t actually know if it works.”Ms. Weiss said having her writers on the set allowed them to rework lines after the actors’ table read, or rewrite a scene if it was suddenly moved indoors.She and other writers and showrunners said the system also taught young writers how to oversee a show — essentially grooming apprentices to become the master craftspeople of their day.But it is increasingly rare for writers to be on set. As in manufacturing, the job of making television shows is being broken down into more discrete tasks.In most streaming shows, the writers’ contracts expire before the filming begins. And even many cable and network shows now seek to separate writing from production. “It was a good experience, but I didn’t get to go to set,” said Mae Smith, a writer on the final season of the Showtime series “Billions.” “There wasn’t money to pay for me to go, even for an established, seven-season show.”Showtime did not respond to a request for comment. Industry analysts point out that studios have felt a growing need to rein in spending amid the decline of traditional television and pressure from investors to focus on profitability over subscriber growth.In addition to the possible effect on a show’s quality, this shift has affected the livelihoods of writers, who end up working fewer weeks a year. Guild data shows that the typical writer on a network series worked 38 weeks during the season that ended last year, versus 24 weeks on a streaming series — and only 14 weeks if a show had yet to receive a go-ahead. About half of writers now work in streaming, for which almost no original content was made just over a decade ago.Members of the Writers Guild of America have been on strike since May.Mark Abramson for The New York TimesMany have seen their weekly pay dwindle as well. Chris Keyser, a co-chair of the Writers Guild’s negotiating committee, said studios had traditionally paid writers well above the minimum weekly rate negotiated by the union as compensation for their role as producers — that is, for creating a dramatic universe, not just completing narrow assignments.But as studios have severed writing from production, they have pushed writers’ pay closer to the weekly minimum, essentially rolling back compensation for producing. According to the guild, roughly half of writers were paid the weekly minimum rate last year — about $4,000 to $4,500 for a junior writer on a show that has received a go-ahead and about $7,250 for a more senior writer — up from one-third in 2014.Writers also receive residual payments — a type of royalty — when an episode they write is reused, as when it is licensed into syndication, but say opportunities for residuals have narrowed because streamers typically don’t license or sell their shows. The Alliance of Motion Picture and Television Producers said in its statement that the writers’ most recent contract had increased residual payments substantially.(Actors receive residuals, too, and say their pay has suffered in other ways: The streaming era creates longer gaps between seasons, during which regular characters aren’t paid but often can’t commit to other projects.)The combination of these changes has upended the writing profession. With writing jobs ending more quickly, even established writers must look for new ones more frequently, throwing them into competition with their less-experienced colleagues. And because more writing jobs pay the minimum, studios have a financial incentive to hire more-established writers over less-established ones, preventing their ascent.“They can get a highly experienced writer for the same price or just a little more,” said Mr. Harper, who considers himself fortunate to have enjoyed success in the industry.Writers also say studios have found ways to limit the duration of their jobs beyond walling them off from production.Many junior writers are hired for a writers’ room only to be “rolled off” before the room ends, leaving a smaller group to finish the season’s scripts, said Bianca Sams, who has worked on shows including the CBS series “Training Day” and the CW program “Charmed.”“If they have to pay you weekly, at a certain point it becomes expensive to keep people,” Ms. Sams said. (The wages of junior writers are tied more closely to weeks of work rather than episodes.)The studios have chafed at writers’ description of their work as “gig” jobs, saying that most are guaranteed a certain number of weeks or episodes, and that they receive substantial health and pension benefits.But many writers fear that the long-term trend is for studios to break up their jobs into ever-smaller pieces that are stitched together by a single showrunner — the way a project manager might knit together software from the work of a variety of programmers. Some worry that eventually writers may be asked to simply rewrite chatbot-generated drafts.“I think the endgame is creating material in the cheapest, most piecemeal, automated way possible,” said Zayd Dohrn, a Writers Guild member who oversees the screen and stage master’s degree program at Northwestern University, “and having one layer of high-level creatives take the cheaply generated material and turn it into something.”He added, “It’s the way coders write code — in the most drone-like way.” More

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    Jerome Powell’s Prized Labor Market Is Back. Can He Keep It?

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    The Federal Reserve chair spent the early pandemic bemoaning the loss of a strong job market. It roared back — and now its fate is in his hands.Jerome H. Powell, the chair of the Federal Reserve, spent the early pandemic lamenting something America had lost: a job market so historically strong that it was boosting marginalized groups, extending opportunities to people and communities that had long lived without them.“We’re so eager to get back to the economy, get back to a tight labor market with low unemployment, high labor-force participation, rising wages — all of the virtuous factors that we had as recently as last winter,” Mr. Powell said in an NPR interview in September 2020.The Fed chair has gotten that wish. The labor market has recovered by nearly every major measure, and the employment rate for people in their most active working years has eclipsed its 2019 high, reaching a level last seen in April 2001.Yet one of the biggest risks to that strong rebound has been Mr. Powell’s Fed itself. Economists have spent months predicting that workers will not be able to hang on to all their recent labor market gains because the Fed has been aggressively attacking rapid inflation. The central bank has raised interest rates sharply to cool off the economy and the job market, a campaign that many economists have predicted could push unemployment higher and even plunge America into a recession.But now a tantalizing possibility is emerging: Can America both tame inflation and keep its labor market gains?Data last week showed that price increases are beginning to moderate in earnest, and that trend is expected to continue in the months ahead. The long-awaited cool-down has happened even as unemployment has remained at rock bottom and hiring has remained healthy. The combination is raising the prospect — still not guaranteed — that Mr. Powell’s central bank could pull off a soft landing, in which workers largely keep their jobs and growth chugs along slowly even as inflation returns to normal.“There are meaningful reasons for why inflation is coming down, and why we should expect to see it come down further,” said Julia Pollak, chief economist at ZipRecruiter. “Many economists argue that the last mile of inflation reduction will be the hardest, but that isn’t necessarily the case.”Inflation has plummeted to 3 percent, just a third of its 9.1 percent peak last summer. While an index that strips out volatile products to give a cleaner sense of the underlying trend in inflation remains more elevated at 4.8 percent, it, too, is showing notable signs of coming down — and the reasons for that moderation seem potentially sustainable.Housing costs are slowing in inflation measures, something that economists have expected for months and that they widely predict will continue. New and used car prices are cooling as demand wanes and inventories on dealer lots improve, allowing goods prices to moderate. And even services inflation has cooled somewhat, though some of that owed to a slowdown in airfares that may look less significant in coming months.All of those positive trends could make the road to a soft landing — one Mr. Powell has called “a narrow path” — a bit wider.For the Fed, the nascent cool-down could mean that it isn’t necessary to raise rates so much this year. Central bankers are poised to lift borrowing costs at their July meeting next week, and had forecast another rate increase before the end of the year. But if inflation continues to moderate for the next few months, it could allow them to delay or even nix that move, while indicating that further increases could be warranted if inflation picked back up — a signal economists sometimes call a “tightening bias.”Christopher Waller, one of the Fed’s most inflation-focused members, suggested last week that while he might favor raising interest rates again at the Fed meeting in September if inflation data came in hot, he could change his mind if two upcoming inflation reports demonstrated progress toward slower price increases.“If they look like the last two, the data would suggest maybe stopping,” Mr. Waller said.Interest rates are already elevated — they’ll be in a range of 5.25 to 5.5 percent if raised as expected on July 26, the highest level in 16 years. Holding them steady will continue to weigh on the economy, discouraging home buyers, car shoppers or businesses hoping to expand on borrowed money.Since 2020, the labor market has rebounded by nearly every major measure.Jamie Kelter Davis for The New York TimesSo far, though, the economy has shown a surprising ability to absorb higher interest rates without cracking. Consumer spending has slowed, but it has not plummeted. The rate-sensitive housing market cooled sharply initially as mortgage rates shot up, but it has recently shown signs of bottoming out. And the labor market just keeps chugging.Some economists think that with so much momentum, fully stamping out inflation will prove difficult. Wage growth is hovering around 4.4 percent by one popular measure, well above the 2 to 3 percent that was normal in the years before the pandemic.With pay climbing so swiftly, the logic goes, companies will try to charge more to protect their profits. Consumers who are earning more will have the wherewithal to pay up, keeping inflation hotter than normal.“If the economy doesn’t cool down, companies will need to bake into their business plans bigger wage increases,” said Kokou Agbo-Bloua, a global research leader at Société Générale. “It’s not a question of if unemployment needs to go up — it’s a question of how high unemployment should go for inflation to return to 2 percent.”Yet economists within the Fed itself have raised the possibility that unemployment may not need to rise much at all to lower inflation. There are a lot of job openings across the economy at the moment, and wage and price growth may be able to slow as those decline, a Fed Board economist and Mr. Waller argued in a paper last summer.While unemployment could creep higher, the paper argued, it might not rise much: perhaps one percentage point or less.So far, that prediction is playing out. Job openings have dropped. Immigration and higher labor force participation have improved the supply of workers in the economy. As balance has come back, wage growth has cooled. Unemployment, in the meantime, is hovering at a similar level to where it was when the Fed began to raise interest rates 16 months ago.A big question is whether the Fed will feel the need to raise interest rates further in a world with pay gains that — while slowing — remain notably faster than before the pandemic. It could be that they do not.“Wage growth often follows inflation, so it’s really hard to say that wage growth is going to lead inflation down,” Mary C. Daly, president of the Federal Reserve Bank of San Francisco, said during a CNBC interview last week.Risks to the outlook still loom, of course. The economy could still slow more sharply as the effects of higher interest rates add up, cutting into growth and hiring.Consumer spending has slowed, but it has not plummeted — a signal that the economy is absorbing higher interest rates without cracking.Amir Hamja/The New York TimesInflation could come roaring back because of an escalation of the war in Ukraine or some other unexpected development, prodding central bankers to do more to ensure that price increases come under control quickly. Or price increases could simply prove painfully stubborn.“One data point does not make a trend,” Mr. Waller said last week. “Inflation briefly slowed in the summer of 2021 before getting much worse.”But if price increases do keep slowing — maybe to below 3 percent, some economists speculated — officials might increasingly weigh the cost of getting price increases down against their other big goal: fostering a strong job market.The Fed’s tasks are both price stability and maximum employment, what is called its “dual mandate.” When one goal is really out of whack, it takes precedence, based on the way the Fed approaches policy. But once they are both close to target, pursuing the two is a balancing act.“I think we need to get a 2-handle on core inflation before they’re ready to put the dual mandates beside each other,” said Julia Coronado, an economist at MacroPolicy Perspectives. Forecasters in a Bloomberg survey expect that measure of inflation to fall below 3 percent — what economists call a “2-handle” — in the spring of 2024.The Fed may be able to walk that tightrope to a soft landing, retaining a labor market that has benefited a range of people — from those with disabilities to teenagers to Black and Hispanic adults.Mr. Powell has regularly said that “without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all,” explaining why the Fed might need to harm his prized job market.But at his June news conference, he sounded a bit more hopeful — and since then, there has been evidence to bolster that optimism.“The labor market, I think, has surprised many, if not all, analysts over the last couple of years with its extraordinary resilience,” Mr. Powell said. More

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    U.S. Economy Adds 209,000 Jobs in June as Pace of Hiring Cools

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    Hiring slowed last month, a sign that the Federal Reserve’s inflation-fighting campaign is taking hold. But with rising wages and low unemployment, the labor market remains resilient.The U.S. labor market showed signs of continued cooling last month but extended a two-and-a-half-year streak of job growth, the Labor Department said Friday.U.S. employers added 209,000 jobs, seasonally adjusted, and the unemployment rate fell to 3.6 percent from 3.7 percent in May as joblessness remained near lows not seen in more than half a century.June was the 30th consecutive month of job growth, but the gain was down from a revised 306,000 in May and was the lowest since the streak began.Wages, as measured by average hourly earnings for workers, rose 0.4 percent from the previous month and 4.4 percent from June 2022. Those increases matched the May trend but exceeded expectations, a potential point of concern for Federal Reserve officials, who have tried to rein in wages and prices by ratcheting up interest rates.Still, the response to the report from economists, investors and labor market analysts was generally positive. The resilience of the job market has bolstered hopes that inflation can be brought under control while the economy continues to grow.The year-over-year gain in wages exceeded that of prices for the first time since 2021Year-over-year percentage change in earnings vs. inflation More

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    Fed Rate Increases Hinge on Strength of Jobs and Economy

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    Federal Reserve policymakers are debating how much further they need to raise interest rates to ensure that inflation speedily returns to a normal pace, and that calculus is likely to depend heavily on the job market’s strength.Officials will closely watch the employment report on Friday, the last reading on job growth that they will receive before their July 25-26 meeting, for a hint at how much momentum remains in the American economy.Fed officials have been surprised by the economy’s staying power 16 months into their push to slow it down by raising interest rates, which makes borrowing money more expensive. While growth is slower, the housing market has begun to stabilize and the job market has remained abnormally strong with plentiful opportunities and solid pay growth. Fed officials worry that if wage growth remains unusually rapid, it could make it difficult to bring elevated inflation fully back to their 2 percent goal.That resilience — and the stubbornness of quick inflation, particularly for services — is why policymakers expect to continue raising interest rates, which they have already lifted above 5 percent for the first time in about 15 years. Officials have ratcheted up rates in smaller increments this year than last year, and they skipped a rate move at their June meeting for the first time in 11 gatherings. But several policymakers have been clear that even as the pace moderates, they still expect to raise interest rates further.“It can make sense to skip a meeting and move more gradually,” Lorie K. Logan, the president of the Federal Reserve Bank of Dallas, said during a speech this week, while noting that it is important for officials to now follow up by continuing to lift rates.She added that “inflation and the labor market evolving more or less as expected wouldn’t really change the outlook.”Fed officials predicted in June that they would raise interest rates twice more this year — assuming they move in quarter-point increments — and that the labor market would soften, but only slightly. They saw the unemployment rate rising to 4.1 percent from 3.7 percent currently.Investors widely expect Fed officials to raise interest rates at their July meeting, and the strength of the labor market could help to shape the outlook after that. While policymakers will not release new economic projections until September, Wall Street will monitor how policymakers are reacting to economic developments to gauge whether another move this year is likely. More

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    The ‘Great Resignation’ Is Over. Can Workers’ Power Endure?

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    The furious pace of job-switching in recent years has led to big gains for low-wage workers. But the pendulum could be swinging back toward employers.Tens of millions of Americans have changed jobs over the past two years, a tidal wave of quitting that reflected — and helped create — a rare moment of worker power as employees demanded higher pay, and as employers, short on staff, often gave it to them.But the “great resignation,” as it came to be known, appears to be ending. The rate at which workers voluntarily quit their jobs has fallen sharply in recent months — though it edged up in May — and is only modestly above where it was before the pandemic disrupted the U.S. labor market. In some industries where turnover was highest, like hospitality and retail businesses, quitting has fallen back to prepandemic levels.Quits Are High, But Falling

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    Voluntary quits per 100 workers
    Note: Data is seasonally adjustedSource: Labor DepartmentBy The New York TimesNow the question is whether the gains that workers made during the great resignation will outlive the moment — or whether employers will regain leverage, particularly if, as many forecasters expect, the economy slips into a recession sometime in the next year.Already, the pendulum may be swinging back toward employers. Wage growth has slowed, especially in the low-paying service jobs where it surged as turnover peaked in late 2021 and early 2022. Employers, though still complaining of labor shortages, report that it has gotten easier to hire and retain workers. And those who do change jobs are no longer receiving the supersize raises that became the norm in recent years, according to data from the payroll processing firm ADP.“You don’t see the signs saying $1,000 signing bonus anymore,” said Nela Richardson, ADP’s chief economist.Ms. Richardson compared the labor market to a game of musical chairs: When the economy began to recover from pandemic shutdowns, workers were able to move between jobs freely. But with recession warnings in the air, they are becoming nervous about getting caught without a job when fewer are available.“Everyone knows the music is about to stop,” Ms. Richardson said. “That is going to lead people to stay put a bit longer.”Aubrey Moya joined the great resignation about a year and a half ago, when she decided she had had enough of the low wages and backbreaking work of waiting tables. Her husband, a welder, was making good money — he, too, had changed jobs in search of better pay — and they decided it was time for her to start the photography business she had long dreamed of. Ms. Moya, 38, became one of the millions of Americans to start a small business during the pandemic.Today, though, Ms. Moya is questioning whether her dream is sustainable. Her husband is making less money, and living costs have risen. Her customers, stung by inflation, aren’t splurging on the boudoir photo sessions she specializes in. She is nervous about making payments on her Fort Worth studio.“There was a moment of empowerment,” she said. “There was a moment of ‘We’re not going back, and we’re not going to take this anymore,’ but the truth is yes, we are, because how else are we going to pay the bills?”But Ms. Moya isn’t going back to waiting tables just yet. And some economists think workers are likely to hold on to some of the gains they have made in recent years.“There are good reasons to think that at least a chunk of the changes that we’ve seen in the low-wage labor market will prove lasting,” said Arindrajit Dube, a University of Massachusetts professor who has studied the pandemic economy.The great resignation was often portrayed as a phenomenon of people quitting work altogether, but the data tells a different story. Most of them quit to take other, typically better-paying jobs — or, like Ms. Moya, to start businesses. And while turnover increased in virtually all industries, it was concentrated in low-wage services, where workers have generally had little leverage.For those workers, the rapid reopening of the in-person economy in 2021 provided a rare opportunity: Restaurants, hotels and stores needed tens of thousands of employees when many people still shunned jobs requiring face-to-face interaction with the public. And even as concerns about the coronavirus faded, demand for workers continued to outstrip supply, partly because many people who had left the service industry weren’t eager to return.The result was a surge in wages for workers at the bottom of the earnings ladder. Average hourly earnings for rank-and-file restaurant and hotel workers rose 28 percent from the end of 2020 to the end of 2022, far outpacing both inflation and overall wage growth.In a recent paper, Mr. Dube and two co-authors found that the earnings gap between workers at the top of the income scale and those at the bottom, after widening for four decades, began to narrow: In just two years, the economy undid about a quarter of the increase in inequality since 1980. Much of that progress, they found, came from workers’ increased ability — and willingness — to change jobs.Pay is no longer rising faster for low-wage workers than for other groups. But importantly in Mr. Dube’s view, low-wage workers have not lost ground over the past two years, making wage gains that more or less keep up with inflation and higher earners. That suggests that turnover could be declining not only because workers are becoming more cautious but also because employers have had to raise pay and improve conditions enough that their workers aren’t desperate to leave.The strong labor market gave Danny Cron, a restaurant server, the confidence to keep changing jobs until he found one that worked for him.Yasara Gunawardena for The New York TimesDanny Cron, a restaurant server in Los Angeles, has changed jobs twice since going back to work after pandemic restrictions lifted. He initially went to work at a dive bar, where his hours were “brutal” and the most lucrative shifts were reserved for servers who sold the most margaritas. He quit to work at a large chain restaurant, which offered better hours but little scheduling flexibility — a problem for Mr. Cron, an aspiring actor.So last year, Mr. Cron, 28, quit again, for a job at Blue Ribbon, an upscale sushi restaurant, where he makes more money and which is more accommodating of his acting schedule. The strong postpandemic labor market, he said, gave him the confidence to keep changing jobs until he found one that worked for him.“I knew there were a plethora of other jobs to be had, so I felt less attached to any one job out of necessity,” Mr. Cron wrote in an email.But now that he has a job he likes, he said, he feels little urge to keep searching — partly because he senses that the job market has softened, but mostly because he is happy where he is.“Looking for a new job is a lot of work, and training for a new job is a lot of work,” he said. “So when you find a good serving job, you’re not going to give that up.”The labor market remains strong, with unemployment below 4 percent and job growth continuing, albeit more slowly than in 2021 or 2022. But even optimists like Mr. Dube concede that workers like Mr. Cron could lose leverage if companies start cutting jobs en masse.“It’s very tenuous,” said Kathryn Anne Edwards, a labor economist and policy consultant who has studied the role of quitting in wage growth. A recession, she said, could wipe away gains made by hourly workers over the past few years.Still, some workers say one thing has changed in a more lasting way: their behavior. After being lauded as “essential workers” early in the pandemic — and given bonuses, paid sick time and other perks — many people in hospitality, retail and similar jobs say they were disappointed to see companies roll back benefits as the emergency abated. The great resignation, they say, was partly a reaction to that experience: They were no longer willing to work for companies that didn’t value them.Amanda Shealer, who manages a store near Hickory, N.C., said her boss had recently told her that she needed to find more ways to accommodate hourly workers because they would otherwise leave for jobs elsewhere. Her response: “So will I.”“If I don’t feel like I’m being supported and I don’t feel like you’re taking my concerns seriously and you guys just continue to dump more and more to me, I can do the same thing,” Ms. Shealer, 40, said. “You don’t have the loyalty to a company anymore, because the companies don’t have the loyalty to you.” More

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    Los Angeles Hotel Workers Go on Strike

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    The NewsThousands of hotel workers in Southern California walked off the job on Sunday demanding higher pay and better benefits, just as hordes of tourists descended on the region for the Fourth of July holiday.“Workers have been pent up and frustrated and angry about what’s happened during the pandemic combined with the inability to pay their rent and stay in Los Angeles,” said Kurt Petersen, co-president of Unite Here Local 11, the union representing the workers. “So people feel liberated, it’s Fourth of July, freedom is reigning in Los Angeles and hotel workers are leading that fight.”Representatives for the hotels have said that the union had not been bargaining in good faith, and that leaders were determined to disrupt operations.“The hotels want to continue to provide strong wages, affordable quality family health care and a pension,” Keith Grossman, a spokesman for the coordinated bargaining group consisting of more than 40 Los Angeles and Orange County hotels, said in a statement.The strike is part of a wave of recent labor actions in the nation’s second-largest metropolis, where high costs of living have made it difficult for many workers — from housekeepers to Hollywood writers — to stay afloat.Thousands of hotel workers in Southern California walked off the job, demanding higher pay and better benefits.Philip Cheung for The New York TimesWhy It MattersWorkers across Southern California in a range of industries have threatened to strike or walked off the job in recent months, displaying unusual levels of solidarity with other unions as they push for higher pay and better working conditions.Dockworkers disrupted operations for weeks at the colossal ports of Los Angeles and Long Beach until they reached a tentative deal in June. And screenwriters have been picketing outside the gates of Hollywood studios for about two months.Hugo Soto-Martinez, a Los Angeles City Council member who worked as an organizer for Unite Here Local 11, said that the breadth of industries locked in labor fights demonstrated frustration especially among younger workers, who have seen inequality widen and opportunities evaporate.“It’s homelessness, it’s the cost of housing,” he said. “I think people are understanding those issues in a much more palpable way.”The hotel workers’ strike comes just as the summer tourism season ramps up, and labor leaders say they are hoping to capitalize on that momentum.Last year, tourism in the city reached its highest levels since the coronavirus pandemic, according to the Los Angeles Tourism and Convention Board. Roughly 46 million people visited, and there was $34.5 billion in total business sales in 2022, reaching 91 percent of the record set in 2019.But for many workers like Diana Rios-Sanchez, who works as a housekeeping supervisor at the InterContinental Los Angeles Downtown, the pay has not helped to keep up with inflation.She often wonders how long she and her three children, who live in a one-bedroom apartment in El Sereno, a neighborhood on the Eastside of Los Angeles, can afford to stay in the city.“All we do in hotels is work and work and get by with very little,” Ms. Rios-Sanchez said. “We take care of the tourists, but no one takes care of us.”Business groups say that simply demanding that employers pay workers more does not address the much-deeper problems that have led to sky-high costs of living in California.BackgroundThe union has been negotiating since April for a new contract. In June, members approved a strike.The group has asked that hourly wages, now $20 and $25 for housekeepers, immediately increase by $5, followed by $3 bumps in each subsequent year of a three-year contract.By contrast, Mr. Grossman said in the statement that the hotels had offered to increase pay for housekeepers currently making $25 an hour in Beverly Hills and downtown Los Angeles to more than $31 per hour by January 2027.On Thursday, the Westin Bonaventure Hotel & Suites, a large hotel in downtown Los Angeles, announced that it had staved off a walkout of its workers with a contract deal.Agreements made this year will set pay levels ahead of the 2026 World Cup and 2028 Olympics, which are expected to be enormous tourist draws to the region.What’s NextMr. Petersen said on Sunday that the strike would go on for “multiple days.” The Hotel Association of Los Angeles had said in a statement that the hotels would be able to continue serving visitors.Anna Betts More

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    L.A. Workers Are Feeling Emboldened as Unions Pressure Employers in California

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    California union members are pressuring employers over wages in one of the nation’s most labor-friendly states.In the two months since they went on strike, screenwriters have become a fixture outside studios in Southern California, signs aloft as the traffic roars past. In many parts of America, theirs would be a lonely vigil.Not in Los Angeles.At the behemoth ports of Los Angeles and Long Beach, operations were disrupted for weeks until West Coast dockworkers reached a tentative contract deal in mid-June. Across the city, schools shut down for three days this spring when bus drivers, cafeteria workers and teachers walked out.Now, the union representing some 15,000 hotel workers in Los Angeles is threatening to strike this Fourth of July weekend, just as the summer tourism season ramps up. And more than 160,000 actors are poised to shut down Hollywood productions if they cannot reach a new contract deal later this month.Unions have been embattled nationally, but in California they are having a moment.“We’re calling it the ‘hot labor summer,’” said Lorena Gonzalez, the chief officer of the California Labor Federation, which represents more than 2.1 million union members statewide. “We have sparks and fires everywhere, and we’re not letting it die down in California. We’re fanning the flames.”California has long been a labor stronghold, with Democrats in control of state government and most large cities. Despite a string of labor wins in recent years — including a minimum wage of $15.50 an hour, more than double the federal rate — workers say they are feeling ever more pressure from inflation, housing shortages and technological disruptions.The Unite Here Local 11 union is seeking higher wages and better benefits. Some 15,000 members are threatening to strike at dozens of hotels in Los Angeles.Philip Cheung for The New York TimesThe unemployment rate remains below 5 percent in California, so workers know they have leverage. And numerous contracts are expiring this year, forcing California employers to negotiate with unions as they watch picket lines form daily in Los Angeles. Roughly half of the large work stoppages in 2023 have taken place in the state.On Friday, a major contract for the hotel workers ran out, while the actors’ union said that it would extend its expiring contract through July 12, buying more time to continue negotiations.Hotel workers could walk out as soon as this weekend, however. Operators of hotels might be able to muddle through a short-term walkout, but a longer one could deter tourists from visiting Los Angeles in the busy summer months, and erode the convention business that has rebounded since the beginning of the pandemic, said Kevin Klowden, chief global strategist with the Milken Institute, an economic think tank based in Santa Monica, Calif.Simultaneous strikes of hotel workers, screenwriters and actors would ripple first through Los Angeles businesses that rely on the region’s signature tourism and Hollywood industries. And they could have a broader effect beyond Los Angeles; during the 2007 screenwriters strike, the California economy lost $2.1 billion, according to one estimate.The Hotel Association of Los Angeles said in a statement that it had bargained in good faith and would continue to serve tourists during a walkout. Keith Grossman, a spokesman for the coordinated bargaining group consisting of more than 40 Los Angeles and Orange County hotels, said in a statement that it had offered to increase pay for housekeepers currently making $25 an hour in Beverly Hills and downtown Los Angeles to more than $31 per hour by January 2027.“If there is a strike, it will occur because the union is determined to have one,” Mr. Grossman said. “The hotels want to continue to provide strong wages, affordable quality family health care and a pension.”A recurring theme this year among striking workers has been the unbearable cost of living in Southern California. School employees said in March that they had to take two or three side gigs to afford their bills. Screenwriters have echoed that lament. A University of Southern California survey recently found that 60 percent of local tenants said they were “rent-burdened,” spending more than 30 percent of their income on housing.“How can anyone keep living here?” asked Lucero Ramirez, 37, who has worked as a housekeeper at the Waldorf Astoria Beverly Hills since 2018. On Thursday, Ms. Ramirez gathered inside an office space near downtown Los Angeles with dozens of other hotel workers represented by Unite Here Local 11 to decorate poster boards and staple together fliers ahead of a planned strike. Earlier that day, the Westin Bonaventure Hotel & Suites announced that it had staved off a walkout with a contract deal.The union has asked that the hourly wage, now $20 to $25 for housekeepers, immediately increase by $5, followed by $3 bumps in each subsequent year of a three-year contract. Hotel workers — and their employers — are well aware that this deal will set pay levels ahead of the 2026 World Cup and 2028 Olympics, when tourists will flood the region.Ms. Ramirez, who earns $25 an hour, has lived in a rent-controlled, one-bedroom apartment in Hollywood for the past decade, where she pays $1,100 a month. The hot water often goes out, and the flooring in her unit is cracked and decaying, she said.Lucero Ramirez, a housekeeper who’s been working at the Waldorf Astoria Beverly Hills since 2018.Philip Cheung for The New York Times“The landlord wants me to leave so they can boost the rent,” she said. “They want me out, but I cannot afford to go anywhere else, I would have to leave the city.”Labor power is a function of the electorate in California, where Democrats have nearly a 2-to-1 edge over Republicans, supermajority control of the state Legislature, a lock on state offices — and owe a debt to unions, whose members routinely knock on doors and contribute money to liberal candidates.Next year, voters in California will consider an initiative that would raise the minimum wage to $18 an hour. In Los Angeles, members of the City Council are weighing a plan that would raise the minimum wage for tourism workers to $25 an hour. Maria Elena Durazo, a Democratic state senator and former head of the Los Angeles County Federation of Labor, is carrying legislation that would give all health care workers a $25 minimum hourly wage.Tens of thousands of unionized teachers, bus drivers, cafeteria workers and other employees at the Los Angeles Unified School District, the nation’s second-largest district, won major raises this year after their high-profile walkout in March. Smaller labor actions have proliferated as well, including strippers organizing in May at a North Hollywood club, and Amazon drivers walking out in June at a warehouse in Palmdale, Calif. The Los Angeles Dodgers averted a strike by giving ushers, groundskeepers and other workers significant raises.Across the country, union membership as a percentage of the labor force has dropped to a record low of 10.1 percent of employed wage and salary workers. In California, however, such membership rose last year to 16.1 percent of wage and salary workers, compared with 15.9 percent in 2021.“This is a tug of war between inflation and wages,” said Sung Won Sohn, a finance and economics professor at Loyola Marymount University in Los Angeles. “Inflation has been winning and workers are trying to catch up with inflation that’s been persistent.”Nancy Hoffman Vanyek, the chief executive of the Greater San Fernando Valley Chamber of Commerce, which represents about 400 businesses from one-person operations to Hollywood studios, said that workers should be able to afford to live in Los Angeles. But she said simply forcing employers to pay more was a Band-Aid for a much deeper problem in California.“It’s business that always has to bear the brunt of fixing these issues, when we’re not looking at what’s causing them,” she said. “What’s causing the high cost of living in our state? What’s causing the high cost of housing?”Workers nationally are trying to lock in gains from a job market that has remained tight, as employers brace for a possible recession. Rail workers were on the brink of a strike last year, while employees at manufacturing companies like John Deere and Kellogg went on strike in late 2021.In California, the activism has been further driven by white-collar workers, whose jobs have been threatened by the rise of artificial intelligence and the gig economy.“It’s remarkable, the degree to which they are getting support from other unions,” said Nelson Lichtenstein, who directs the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara. “There’s a new sense of commonality between the retail clerk who is being told to come in every other day from 3 to 7 p.m. and the screenwriter who is suddenly being offered seven episodes to write and then, goodbye.”Writers and supporters were on strike outside the Paramount Pictures studio in Los Angeles on Wednesday.Morgan Lieberman for The New York Times More

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    Inflation Has Eased, but Economists Are Still Worried

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    Inflation has come down from its 2022 heights, but economists are worried about its stubbornness.Inflation is beginning to abate meaningfully for American consumers. Gas is cheaper, eggs cost roughly half as much as they did in January and prices are no longer climbing as rapidly across a wide array of products.But at least one person has yet to express relief: Jerome H. Powell, the chair of the Federal Reserve.The Fed has spent the past 15 months locked in an aggressive war against inflation, raising interest rates above 5 percent in an attempt to get price increases back down to a more normal pace. Last week its officials announced that they were skipping a rate increase in June, giving themselves more time to see how the already enacted changes are playing out across the economy.But Mr. Powell emphasized that it was too early to declare victory in the battle against rapid price increases.The reason: While less expensive gas and slower grocery price adjustments have helped overall inflation to fall from its four-decade peak last summer, food and fuel costs tend to jump around a lot. That obscures underlying trends. And a measure of “core” inflation that strips out food and fuel is showing surprising staying power, as a range of purchases from dental care and hairstyling to education and car insurance continue to climb quickly in price.Last week, Fed officials sharply marked up their forecast of how high core inflation would be at the end of 2023. They now see it at 3.9 percent, higher than the 3.6 percent they predicted in March and nearly twice their 2 percent inflation target.The economic picture, in short, is playing out on something of a split screen. While the steepest price increases appear to be over for consumers — a relief for many, and a development that President Biden and his advisers have celebrated — Fed policymakers and many outside economists see continued reasons for concern. Between the subtle signs that inflation could stick around and the surprising resilience of the American economy, they believe that central bankers might need to do more to cool growth and rein in demand to prevent unusually elevated price increases from becoming permanent.“Big picture: We are making progress, but the progress is slower than expected,” said Kristin J. Forbes, a Massachusetts Institute of Technology economist and a former Bank of England policymaker. “Inflation is somewhat more stubborn than we had hoped.”A fresh Consumer Price Index inflation report last week showed that inflation continued to moderate sharply on an overall basis in May. That measure helps to feed into the Fed’s preferred measure, the Personal Consumption Expenditures index, which it uses to define its 2 percent target. The fresh P.C.E. figures will be released on June 30.White House officials, who have spent months on the defensive about the role that pandemic spending under Mr. Biden played in stoking demand and price increases, have greeted the recent cooling in inflation enthusiastically.“We have seen a very large reduction in inflation, by more than 50 percent,” Lael Brainard, the director of the White House National Economic Council, said in an interview. She added that the current trajectory on inflation offered reasons for optimism that it could return back to normal fairly quickly as the economy slowed, and expressed hope that crushing it would not necessarily require a big jump in unemployment — something that has historically accompanied the Fed’s campaigns to wrangle inflation.“The employment picture is very sustainable,” she said.But many economists are less sanguine. That’s partly because most of the factors that have helped inflation to fall so far have been widely anticipated, sort of the low-hanging fruit of disinflation.Supply chains were roiled by the pandemic and have since healed, allowing goods price increases to slow. A pop in oil prices tied to the war in Ukraine has faded.And there may be more to come: Rents jumped starting in 2021 as people moved out on their own or relocated amid the pandemic. They have since cooled as landlords found that renter demand was not strong enough to bear ever-higher prices, and the moderation is slowly feeding into official inflation data.

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    Year-over-year percentage change in the Personal Consumption Expenditures index
    Source: Bureau of Economic AnalysisBy The New York TimesWhat linger are relatively rapid price increases in services outside of housing. That’s a broad category, and it includes purchases that tend to be labor-intensive, like hospital care, school tuition and sports tickets. Those prices tend to rise when wages climb, both because employers try to cover their higher costs and because consumers who are earning more have the ability to pay more without pulling back.“The big action is behind us,” said Olivier Blanchard, a former International Monetary Fund chief economist who is now at the Peterson Institute. “What remains is the pressure on wages.”

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    Year-over-year percent change in the Personal Consumption Expenditures index by category
    Source: Bureau of Economic AnalysisBy The New York TimesDuring a news conference last week, Mr. Powell said that in the measure of inflation that excluded food and energy “you just aren’t seeing a lot of progress,” emphasizing that “getting wage inflation back to a level that is sustainable” could be an important part of lowering the remaining price increases.There are early signs that a labor market slowdown is underway. The Employment Cost Index measure of wages, which the Fed watches closely, is climbing much more rapidly than before the pandemic but has slowed from its mid-2022 peak. A measure of average hourly earnings has come down even more notably. And jobless claims have climbed in recent weeks.But hiring has remained robust, and the unemployment rate low — which is why economists are trying to figure out if the economy is cooling enough to guarantee that inflation will return fully to normal.Cylus Scarbrough, 42, has witnessed both features of today’s economy: fast wage growth and rapid inflation. Mr. Scarbrough works as an analyst for a homebuilder in Sacramento, and he said his skills were in such high demand that he could rapidly get a new job if he wanted. He got a 33 percent raise when he joined the company two years ago, and his pay has climbed more since.Cylus Scarbrough of Sacramento said he felt inflation was not eating into his budget the way it had before. “I don’t think about it every day,” he said.Rozette Halvorson for The New York TimesEven so, he’s racking up credit card debt because of higher inflation and because he and his family spend more than they used to before the pandemic. They have gone to Disneyland twice in the past six months and eat out more regularly.“It’s something about: You only live once,” he explained.He said he felt OK about spending beyond his budget, because he bought a house just at the start of the pandemic and now has about $100,000 in equity. In fact, he is not even worrying about inflation as much these days — it was much more salient to him when gas prices were rising quickly.“That was the time when I really felt like inflation was eating into our budget,” Mr. Scarbrough said. “I feel more comfortable with it now. I don’t think about it every day.”Fed officials are not yet comfortable, and they may do more to tame price increases. Officials predicted last week that they would raise interest rates to 5.6 percent this year, making two more quarter-point rate moves that would push rates to their highest level since 2000.Investors doubt that will happen. Given the recent cooling in inflation and signs that the job market is beginning to crack, they expect one more rate increase in July — and then outright rate cuts by early next year. But if that bet is wrong, the next phase of the fight against inflation could be the more painful one.As higher borrowing costs prod consumers and firms to pull back, they are expected to translate into less hiring and fewer job opportunities for people like Mr. Scarbrough. The slowdown might leave some people out of work altogether.Fed policymakers estimated that joblessness will jump to 4.5 percent by the end of next year — up somewhat from 3.7 percent now, but historically pretty low. But Mr. Blanchard thinks that the jobless rate might need to rise by one percentage point “and probably more.”Jason Furman, a Harvard economist, said he thought the unemployment rate could go even higher. While it is not his forecast, he said that in a bad scenario it was “possible” that it would take something like 10 percent unemployment for inflation to return totally to normal. That’s how high joblessness jumped at the worst point in the 2009 recession, and inflation came down by about two percentage points, he noted.In any case, Mr. Furman cautioned against jumping to early conclusions about the path ahead for inflation based on progress so far.“People have been so crazily premature to keep declaring victory on inflation,” he said. More