Here’s Why Spiking Inflation And Labor Shortages Won’t Tank The Economic Recovery, According To Experts

New York City Reopens As Most Pandemic Restrictions Are Lifted

Spiking inflation, disappointing jobs gains and shortages of labor and commodities have investors wringing their hands over the state of the economy and the seemingly growing risk of overheating, but according to Moody’s chief economist, Mark Zandi, there’s no cause for alarm.

In a research note published Tuesday, Zandi emphasizes that all those factors are temporary.  “The recovery . . . may be uneven, given the considerable adjustments needed for the economy to fully reopen, but our outlook for a boom-like economy over the coming year has not changed materially,” he wrote.

The labor shortage and hiring difficulties will improve as students return to school and parents have more childcare options, he suggests, and he describes the evidence that federal supplemental $300 weekly unemployment benefits are keeping workers home as “thin.”

Zandi expects inflationary pressures to ease later this year once the economy returns to normal and businesses—especially those in the travel and leisure industry—get past the point where they are reversing their pandemic-era price cuts.

He suggested investor fears that stubborn inflation will force the Federal Reserve to hastily raise rates, thereby triggering a recession, are unlikely to materialize because of the significant slack still extant in the labor market.

Zandi also cites the ongoing semiconductor shortage as a major factor in the job losses and shortages in the auto manufacturing industry, but adds that he expects those pressures to abate by next year once surging demand and soaring prices for the chips prompt suppliers to boost production, thereby stabilizing the supply chain.

Crucial Quote

“Until the supply side of the economy wakes up and catches up with the fast-reviving demand side coming out of the pandemic, the economic statistics will undoubtedly hold more surprises—output and supply chains scrambled; labor, commodities and products in short supply; and price spikes,” Zandi wrote. “If history is a guide, when businesses can make a healthy profit, they will solve the problems,” he added. “Quickly.”

Key Background

Zandi isn’t the only expert looking beyond the risk factors to a robust recovery. Despite raising their expectations for one measure of inflation by more than a percentage point to a peak of 3.5% this year, analysts from investment giant Goldman Sachs believe the factors that caused them to hike the target for core CPI inflation—soaring used-car prices, production delays in the auto industry and changes in health insurance payouts—are temporary.

Not to mention, their impact isn’t as large across other measures of inflation that weigh prices differently. That sentiment is also beginning to make its way to Wall Street: “The inflation debate is not over, but the majority of Wall Street believes it will be transitory,” OANDA senior market analyst Edward Moya wrote in a Tuesday note.

Just as telling as the wage data, the share of working-age Americans who are in fact working has declined in recent decades. The country now has the equivalent of a large group of bakeries that are not making baguettes but would do so if it were more lucrative — a pool of would-be workers, sitting on the sidelines of the labor market.

Corporate profits, on the other hand, have been rising rapidly and now make up a larger share of G.D.P. than in previous decades. As a result, most companies can afford to respond to a growing economy by raising wages and continuing to make profits, albeit perhaps not the unusually generous profits they have been enjoying.

Chief Critic

But not everyone agrees. Larry Summers, an economist who served in the Clinton and Obama Administrations, wrote in a Monday op-ed in the Washington Post that while some of the recent inflation might normalize with time, “not everything we are seeing is likely to be temporary.”

Summers suggests that a handful of factors including demand that grows faster than supply, higher housing prices, inflation expectations and even higher minimum wages and more benefits for employees have the potential to push inflation even higher. Summer recommends that policymakers “explicitly [recognize] that overheating, and not excessive slack, is the predominant near-term risk for the economy.”

What We Don’t Know

When the Federal Reserve will move to tighten policy and raise interest rates. Atlanta Federal Reserve President Raphael Bostic told CNBC last week that given the 8 million jobs that have yet to be recovered, “I think we’ve got to have our policies in a very strongly accommodative situation or stance.” He added: “I don’t think we’re going to have answers on this until at least early fall, and it may take longer than that.”

One of the few ways to have a true labor shortage in a capitalist economy is for workers to be demanding wages so high that businesses cannot stay afloat while paying those wages. But there is a lot of evidence to suggest that the U.S. economy does not suffer from that problem.

If anything, wages today are historically low. They have been growing slowly for decades for every income group other than the affluent. As a share of gross domestic product, worker compensation is lower than at any point in the second half of the 20th century. Two main causes are corporate consolidation and shrinking labor unions, which together have given employers more workplace power and employees less of it.

I’m a breaking news reporter for Forbes focusing on economic policy and capital markets. I completed my master’s degree in business and economic reporting at New York University. Before becoming a journalist, I worked as a paralegal specializing in corporate compliance.

Source: Here’s Why Spiking Inflation And Labor Shortages Won’t Tank The Economic Recovery, According To Experts

.

References

Nelson 1995, p. 158. This Marxist objection is what motivated Nelson’s essay, which claims that labour is not, in fact, a commodity.

Labor Shortage Will Push Wages Higher, According To Bank Of America

A man hands his resume to an employer at the 25th annual...

As the U.S. economy roars back to life, new analysis from Bank of America suggests wages are likely to climb higher in the near term thanks to mismatches between supply and demand for workers.

Employers are desperate to staff up quickly to meet surging consumer demand, but some workers have been slow to return for a number of reasons including virus concerns, childcare constraints, early retirement and more generous federal unemployment benefits, BofA senior U.S. economist Joseph Song wrote in a Friday research note.

It’s already clear some workers are holding out for higher pay before they reenter the workforce: The average self-reported reservation wage—the lowest wage a worker says they will accept to start a new job—has grown 21% since the fall for people earning less than $60,000 per year, according to data from the New York Fed.

According to Song’s analysis, wage growth will be stronger in sectors that were hit hardest by the pandemic—including construction, real estate and hotels and food service.

Those are also the industries that tend to employ more workers at the lower end of the income spectrum. The mismatch in the labor market will abate later this year once the reopening boom abates and more Americans return to work, according to Song, which will lessen the upward pressure on wages.

Crucial Quote

“The current labor shortage should sort itself out by the fall as growth normalizes to more sustainable levels and more workers return to the labor force as health concerns subside and generous UI benefits expire by September,” Song wrote. That means wage growth could slow down a little as employers pull back on pay following big wage hikes this year and once they no longer need to compete with a $300 weekly federal unemployment supplement.

What To Watch For

Next year, Song expects wages to rise again when unemployment reaches prepandemic levels, though that growth will be driven by “better labor market fundamentals” rather than transitory factors like the pandemic and enhanced government unemployment benefits.

Big Number

4.2%. That’s the unemployment rate Bank of America is predicting for the end of 2021, down from 6.1%. It expects unemployment will fall even further to 3.5% at the end of 2022.

Key Background

Companies are already beginning to raise their wages to attract more workers as they reopen. Amazon is raising its average starting wage to $17 per hour and McDonald’s plans to raise its average starting pay at company-owned stores to $15 per hour by 2024. Chipotle said earlier this month that it will raise its average wage to $15 per hour by the end of June. Under Armour said Wednesday that it is hiking its minimum wage from $10 to $15 per hour, and Bank of America itself announced this week that it would raise its U.S. minimum wage to $25 per hour by 2025.

Tangent

As big businesses hike pay, the Wall Street Journal reported Thursday that some small businesses are struggling to remain competitive. The chief client officer at a St. Louis office furniture dealership told the Journal that he has had to raise wages in order to fend off competition for workers from larger companies including Amazon.

Further Reading

Biden Administration Doesn’t Think It Can Force States To Pay $300 Unemployment Benefits, According To Report (Forbes)

As Fears Of Worker Shortages Grow, White House Economists Say Covid-19 Is To Blame—Not $300 Unemployment Benefits (Forbes)

Could Covid-19 Worker Shortages Create A $15 Minimum Wage—Even Without A New Law? (Forbes)

At Least 21 States Dropping $300-A-Week Federal Unemployment Benefits (Forbes)

I’m a breaking news reporter for Forbes focusing on economic policy and capital markets. I completed my master’s degree in business and economic reporting at New York University. Before becoming a journalist, I worked as a paralegal specializing in corporate compliance

Source: Labor Shortage Will Push Wages Higher, According To Bank Of America

.

.

The Macroeconomics of Labour Markets

The labour market in macroeconomic theory shows that the supply of labour exceeds demand, which has been proven by salary growth that lags productivity growth. When labour supply exceeds demand, salary faces downward pressure due to an employer’s ability to pick from a labour pool that exceeds the jobs pool. However, if the demand for labour is larger than the supply, salary increases, as employee have more bargaining power while employers have to compete for scarce labour.

The Labour force (LF) is defined as the number of people of working age, who are either employed or actively looking for work (unemployed). The labour force participation rate (LFPR) is the number of people in the labour force divided by the size of the adult civilian non-institutional population (or by the population of working age that is not institutionalized), LFPR = LF/Population.

The non-labour force includes those who are not looking for work, those who are institutionalized (such as in prisons or psychiatric wards), stay-at-home spouses, children not of working age, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics, self-employed people are counted as employed.[5]

The skills required in a labour force can vary from individual to individual, as well as from firm to firm. Some firms have specific skills they are interested in, limiting the labour force to certain criteria. A firm requiring specific skills will help determine the size of the market.[6]

Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements.

Changes in unemployment depend on inflows (non-employed people starting to look for jobs and employed people who lose their jobs that are looking for new ones) and outflows (people who find new employment and people who stop looking for employment). When looking at the overall macroeconomy, several types of unemployment have been identified, which can be separated into two categories of natural and unnatural unemployment.

References

Paul, Oyer; Scott, Schaefer (2011). Personnel Economics: Hiring and Incentives. Handbook of Labor Economics. 4. pp. 1769–1823. doi:10.1016/S0169-7218(11)02418-X. ISBN 9780444534521.

IRS Delivers Covid-19 Surprise To Workers:  A Chance To Redo Their 2021 Health Plan And FSA Choices

If your employer lets you make changes to your workplace healthcare elections for 2021 under new Treasury guidance, it could cut your tax bill.

 

Wish you could change your health plan for 2021? In newly released guidance on new flexible rules for healthcare and dependent care FSAs, the Internal Revenue Service has included a new Covid-19-relief surprise: Employers can allow employees to make changes prospectively to health care coverage for 2021.

“The guidance is very employer and employee friendly; it really gives a lot of flexibility,” says Jake Mattinson, an employee benefits lawyer with McDermott Will & Emery in Chicago.

Notice 2021-15 allows for mid-year changes to employer-sponsored health care coverage, healthcare flexible spending accounts and dependent care accounts. It will help employees whose medical and caregiving situations have changed because of the coronavirus pandemic. That is, if your employer is on board.

Usually healthcare elections are set in stone on a calendar year basis. Last May, the Treasury Department came up with a partial mid-year fix for 2020, allowing prospective changes and extending grace periods and carryovers through year-end (IRS Notice 2020-29). But employees still cried foul: they had socked away more money than they could spend in these workplace tax-favored accounts, and would be subject to forfeiture rules.

In December, in the tax provisions tied onto the year-end spending package, Congress passed new special rules allowing rollovers and more for leftover 2020 and 2021 FSA money for employees and ex-employees. Notice 2021-15 answers a lot of the open questions about how to implement the new rules.

For 2021, you can revoke an existing healthcare plan election and make a new election, or revoke an existing election and attest that you’re getting coverage elsewhere. Say you picked an HMO plan, but really want to be in a PPO plan. Or say you decide you’d be better off under a spouse’s plan. This gives you the chance to make a mid-year change. That allowance is not in the December law, so it was a surprise, Mattinson says.

For healthcare and dependent care FSAs, the guidance says employers can allow employees to carryover unused amounts they’ve stashed in these accounts from the 2020 and 2021 plan years. It wasn’t clear before, but the IRS says that any plan can implement a 100% carryover or extended grace period, no matter what feature the plan had before, Mattinson says. That means employees might be able to carry over their whole balance (instead of just $550 under current law) from one year to the next.

The extended grace period could go out 12 months, instead of just 2.5 months. as of January 1, 2022, everything would shift back to the regular rules. Under the regular rules, you can stash up to $5,000 pretax per year in a dependent care FSA, but if you don’t use the money for the specified year, you lose it. You can put up to $2,750 in a healthcare FSA, and if you don’t use it, you may be able to either use it up during a grace period or carry over $550.

Don’t get your hopes up just yet: Employers have to adopt these changes, and while some have already been working on amendments to their plans based on the December law even before today’s guidance, others have decided to do nothing. “The reaction among employers is mixed; everyone has their own ideas of what to implement. It’s all optional,” says Mattinson. One client said they would implement it all, while another client said they wouldn’t make any of the changes, for example.

Some of the nitty-gritty guidance surrounds COBRA and health savings accounts. For COBRA, the guidance makes clear that if an employer lets terminated workers seek reimbursement from an FSA, that won’t hurt their qualification for COBRA. For health savings accounts, the guidance clarifies that for employees who want to make a midyear change into a high deductible health plan with an HSA, they could convert a general purpose FSA to a limited purpose FSA so as not to be disqualified from contributing to the HSA.

Notice 2021-15 is 34 pages long and includes detailed examples, suggesting this is an area of the tax code that could be simplified! Here’s a bullet point summary of the law changes addressed in the IRS guidance; employers can:

 

  • allow employees to carry over unused money up to the full annual amount from the plan year 2020 to 2021, and also from the plan year 2021 to 2022 for healthcare and dependent care FSAs
  • allow up to a 12-month grace period for employees to incur new expenses and submit claims against unused accumulated funds for plan years ending in 2020 or 2021 for healthcare and dependent care FSAs
  • allow midyear election changes on a prospective basis without a change in status event for plan years ending in 2021 for healthcare and dependent care FSAs
  • allow dependent care reimbursement up to age 14 in cases where an employee’s dependent turned 13 in 2020 and the employee had leftover funds from 2020 (this special carry forward rule helps employees whose dependents “aged out” during the pandemic) for dependent care FSAs
  • allow health FSA participants who stop participating in the plan (ex-employees) during calendar year 2020 or 2021 to continue to receive reimbursements through the end of the year, including grace periods (this post-termination benefit applies to healthcare FSAs, not dependent care FSAs)

 

Further reading: Healthcare And Childcare FSA Fix For 2021, Finally: Special Carry Over Rules And More

Follow me on Twitter or LinkedIn.

I cover personal finance, with a focus on retirement planning, trusts and estates strategies, and taxwise charitable giving. I’ve written for Forbes since 1997. Follow me on Twitter: @ashleaebeling and contact me by email: ashleaebeling — at — gmail — dot — com

Source: IRS Delivers Covid-19 Surprise To Workers:  A Chance To Redo Their 2021 Health Plan And FSA Choices

.

.

More Contents:

Learn what documents you will need to get a Social Security Card | SSA
[…] you can apply for an Individual Taxpayer Identification Number from the Internal Revenue Service (IRS). Visit IRS in person or call the IRS toll-free number, 1-800-TAXFORM (1-800-829-3676), and request Form W-7 (Application for IRS Individual Taxpayer Identification Number) […] you can apply for an Individual Taxpayer Identification Number from the Internal Revenue Service (IRS). Visit IRS in person or call the IRS toll-free number, 1-800-TAXFORM (1-800-829-3676), and request Form W-7 (Application for IRS Individual Taxpayer Identification Number) […]
513
6 Things I Wish I Knew Sooner About Payroll
[…] of the work The nature and degree of control you have over the worker The Internal Revenue Service (IRS) also provides guidelines to help you figure out if your worker is an employee or independen […] The IRS breaks down the degree of control and level of independence into three categories, includin […] Plus, the IRS requires businesses to maintain employment tax records for at least four years […]
1
Anyone funding their poker account with cashapp and Bitcoin and also cashing out with them? Causing tax problems : poker
[…] your transaction data to calculate your cost basis for the purpose of reporting gains/losses to the IRS […] $300 (and really, over like $60 since it’s just the marginal income tax that you’re shorting the IRS by not reporting it) […] I think the fact that you got a 1099-B from CashApp (that they presumably also sent to the IRS) means that if you don’t report anything for crypto, you’re just bringing marginally more attention […]
0
THE WhistleBlowers   | CALIFORNIA (USA): VENTURE CAPITALIST (Imaad Zuberi) PLEADED GUILTY to tax evasion for filing false foreign agent registration records + providing illegal campaign contributions to various presidential election campaigns, SENTENCED to 12 years in FED prison
thewhistleblowers.is – Today
[…] partners and pocketed most of the funds for himself,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation Los Angeles Field Office […] At the end of the day, IRS Criminal Investigation worked closely with our partner federal agencies to ensure Zuberi’s criminal […] This matter was investigated by the FBI and IRS-Criminal Investigation […]
0
Export.gov
emenuapps.ita.doc.gov – Today
[…] Our IRS Tax ID number for the U […]
0
Dr. Paulvalery Roulette, MD – Orthopedic Hand Surgery Specialist In Matthews NC – AMe Pro
proame.net – Today
[…] that handle your information securely as well such because the DMV, VA, SSA, and most lately the IRS in sending out stimulus checks […]
0
DRL Support to Workers’ Freedom of Association in Vietnam
[…] gov you will need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and a Commercial and Government Entity (CAGE) code […] United States and do not pay employees within the United States, you do not need an EIN from the IRS […]
7
PSA: For those of you in the US who develop paid apps on the side, be careful how you file your taxes : androiddev
I just had my return rejected by the IRS after filing with turbotax […] it and just needed me to resubmit, but they refills with the schedule H again (which strangely, the irs accepted this time so now I have to file an amendment) […]
N/A
Enforcing Current Tax Law Makes Financial Sense –
itep.org – Today
[…] tax audits of big corporations and high-income individuals and by providing more resources to the IRS. The Tax Gap The IRS estimated that the tax gap – the difference between federal taxes owed and federal taxes paid […] When measured as a share of GDP or tax collections, the IRS has been cut 35 percent over the past decade. To undo those funding cuts, they suggest the IRS budget would need to be increased by more than $100 billion over the next decade (which Rep […]
6
HOT JOBS & COOL JOBS: PROJECT MANAGER ARLINGTON VA USA
[…] Apply Now>> 40 Project Manager with IRS experiance Lanham, MD, USA Project Manager Lanham Maryland Responsibilities The Project Manager i […]
0
As GOP splits, Collins’ courage should earn her more credit
bangordailynews.com – Today
[…] ” Nixon tried, but failed, to get the IRS to audit my taxes and find something wrong […]
N/A
HOT JOBS & COOL JOBS: EXPERIENCED TAX PREPARER FORT WAYNE IN USA
[…]  Collaborate with staff on income tax preparation and planning * Represent clients with IRS, State  […]
N/A
Comparative analysis of drug response and gene profiling of HER2-targeted tyrosine kinase inhibitors
[…] CDK 12 drives breast tumor initiation and trastuzumab resistance via WNT and IRS 1‐ErbB‐ PI 3K signaling […]
N/A
Grant Process 2021
[…] Also a copy of the most recent 990 filed with the IRS […]
N/A
Only those who don’t consider themselves Sri Lankan refuse to take jab – Army Commander – The Island
island.lk – Today
[…] partners and pocketed most of the funds for himself,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation Los Angeles Field Office […]
0
Webinar Fiduciary File: The Importance of Maintaining Proper Documentation
[…] The Internal Revenue Service (IRS), as well as the Employee Retirement Income Security Act (ERISA), require plan sponsor […]
N/A
Money-in-Politics Timeline •
[…] independent expenditures by the FEC and political activity of tax-exempt organizations by the IRS meant that transparency would not be guaranteed […]
363
Books for All and All for Books – Indian Masterminds – Bureaucracy, Bureaucrats, Policy, IAS, IPS, IRS, IFS, Civil Services, UPSC, Government, PSUs complete information, NEWS, Transfers, Features, and Opinion.
indianmasterminds.com – Today
IAS officer Rahul Kumar, who cracked UPSC even without having formal college education, is on another mission now. He is aiming to start libraries in all the `panchayats’ of Bihar’s Purnea district.
2
Electronic Code of Federal Regulations (eCFR)
[…] plus “cost of goods sold” as these terms are defined and reported on Internal Revenue Service (IRS) tax return forms (such as Form 1120 for corporations; Form 1120S for S corporations; Form 1120 […] (1) The Federal income tax return and any amendments filed with the IRS on or before the date of self-certification must be used to determine the size status of a concern […] SBA will not use tax returns or amendments filed with the IRS after the initiation of a size determination […]
N/A
Third stimulus check: Will you get a $1,400 check? – CBS News
[…]   For instance, the IRS said it sent 30 million payments to households earning more than $75,000 during the first round o […] After that, the IRS would direct stimulus checks to eligible households […]   However, people who don’t have banking accounts or payment information on file with the IRS would likely have to wait longer for paper checks or prepaid debit cards to arrive in the mail […]
N/A
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
I’ll Tell You How To Start Your Own Medical Billing Business! : TheJadedBiller
[…] Fiscal year-end: December 31 ☐ Apply for IRS Employer Identification Number (EIN), if applicable […] To obtain Form SS-4 to apply for an EIN, go to IRS ( […]
0
What If You Get Audited? | Financial Planning Consultants
[…] In 2017, the IRS audited 0.5% of all individual tax returns.¹ And being audited does not necessarily imply that the IRS suspects wrongdoing. The IRS says an audit is just a formal review of a tax return to ensure information is being reporte […] The IRS selects returns for audit using three main methods […]
N/A
HOT JOBS & COOL JOBS: VP TAX WORK IN LINCOLN NE LAS VEGAS NV USA
[…]  Provide support to clients in the case of an IRS audit * Perform other clerical duties as necessary  […]
N/A
TurboTax® #1 Best-Selling Tax Software, Taxes Done Right
turbotax.intuit.com – Today
[…] Unemployment Income reported on a 1099-G 100% Accurate Calculations Guarantee: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we’ll pay you the penalty and […] 100% Accurate Expert Approved Guarantee: If you pay an IRS or state penalty (or interest) because of an error that a tax expert or CPA made while providin […] The IRS issues more than 9 out of 10 refunds in less than 21 days […]
2
Tax Tips for Bitcoin and Virtual Currency – TurboTax Tax Tips & Videos
turbotax.intuit.com – Today
OVERVIEW Virtual currency like Bitcoin has shifted into the public eye in recent years. Some employees are paid with Bitcoin, more than a few retailers accept Bitcoin as payment, and others hold the e-currency as a capital asset. Recently, the Internal Revenue Service (IRS) clarified the tax treatment of virtual currency transactions.
155
TurboTax® Basic CD/Download 2020-2021 Tax Software, Easy Tax Preparation
turbotax.intuit.com – Today
[…] calculations are 100% accurate so your taxes will be done right, guaranteed, or we’ll pay you any IRS penalties […]
82
Can Feudalism Save the Western World? –
[…] land, worked about 30 days a year for his lord (as opposed to the average American’s 167 for the IRS), and could NOT work on Sundays and the 30-odd Holy Days of obligation and certain other state […]
N/A
FAQ – Coronavirus: Impact on Benefits and Employment
[…] or The individual experiencing any other substantially similar condition as specified by HHS/Labor/IRS […] The individual experiencing any other substantially similar condition as specified by HHS/Labor/IRS 2/3 of the greater of the amount of pay (defined above), subject to maximum of $200 per day o […] As discussed in our At Issue and CBIZ article, the IRS recently issued guidance (IRS Notice 2020-29) that temporarily permits, but does not require, Section 125 cafeteria plans t […]
2
Third stimulus check updates today: IRS tax return, $600 California, dates, who gets and how much | Live
en.as.com – Today
Third stimulus check updates today: IRS tax return, $600 California, dates, who gets and how much | Live AS ENGLISH Update 20 February 2021 […] 9 trillion COVID-19 aid bill – Dollar nurses losses after jobs data mars recovery – Your IRS tax return may affect your third stimulus check amount (full story) – Governor Newsom has announced […] los cheques de estímulo en español) – US covid-19 cases/deaths: 28 million / 495,804 (live updates) IRS warns against latest scam doing the rounds ​​​​​​The Internal Revenue Service, state tax agencie […] such as vaccine production and the next stimulus checks How to track your tax refund 2021 status in IRS web The IRS are ready for your 2020 tax returns and you can check the progress of any refunds you are owed […]
0
Important reminders before filing 2020 tax returns | Internal Revenue Service
[…] The IRS reminds taxpayers that they may elect to use their 2019 earned income to figure the EITC if thei […] taxpayers who received a refund on their 2019 tax returns also received interest from the IRS […] The IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10 […]
36
Insects | Special Issue : Insecticides for Mosquito Control: Strengthening the Evidence Base
[…] control, which relies heavily on insecticide-treated nets (ITNs) and indoor residual sprays (IRS) […]
0
Understanding The Pros And Cons Of Life Settlement Investments
[…] The IRS considers any earnings that are larger than the investment as taxable […]
2
Budget Check Up: Tax Time Is the Right Time | Karl Weidel Insurance
[…] IRS, 2019 The content is developed from sources believed to be providing accurate information […]
N/A
Budget Check Up: Tax Time Is the Right Time | Deep South Investment Service LLC
[…] IRS, 2019 The content is developed from sources believed to be providing accurate information […]
0
Ex-WilmerHale Temp Says White House Atty Lied For Toyota – Law360
[…] authorities — meaning the Justice Department, the IRS, the SEC — and also from its shareholders,” Delaney’s attorney Christopher Beres told Law360 […]
1
How to Start a Small Business – State Farm®
[…] Is your business a sole proprietorship or a partnership? The Internal Revenue Service (IRS) can provide more information on types of business structures […] help run your small business, you’ll need to apply for employee identification numbers through the IRS […]

 

An Expert on Getting Fired Shares How to Suck It up and Push Forward

1

Sometimes I get asked about hard decisions I’ve had to make in my career and how I’ve dealt with it. The hardest decisions in my career were the ones that were made for me. Namely, being terminated from a job.

As the effects of COVID-19 continue to unfurl, many promising careers are coming to an abrupt end. Headlines from all over the world are about companies large and small being forced to let employees go. It’s been a jolt to the senses.

I’ve had the “luxury” of getting let go (fired) from the last four companies that employed me. That’s right. I’ve been sacked four times in the last four and a half years. Before you pass judgement, I should note that I’ve over delivered and shattered every goal and benchmark I set from the start. Four years ago I moved from Washington, D.C., and entered the startup scene here in Copenhagen, Denmark. I brought my American work ethic and culture with me.

Regardless of the reasons I was fired—I don’t believe it was ever due to my processes, skills, or results—purpose of this article is to share with you how I’ve managed to spring back faster and stronger from being cut out of my job, time after time. … And how you can, too.

Get a reason.

In most cases, this type of abrupt change has given me a chance to reflect and re-frame my energy toward constructive growth. Self-reflection after being let go from a job is incredibly important. Even if you weren’t a fan of your previous boss or supervisor, there’s almost always a nugget of truth in their reasoning. It’s beneficial for you to consider it from his or her point of view.

I’ve always asked for a meeting a day or two after I sign the termination paperwork so I can gather my thoughts. I try to schedule an hour with my supervisor. And unless you’ve really messed something up, they’re likely to give you time. Why meet again after the initial firing?

Get some certainty: In many cases, you will replay the moments of that final conversation over and over in your head. Take notes on “the why” that led to the decision.

Get the story straight: Make sure that if you’re going to use your recent ex-employer as a reference, they have the right story and agree to give the positive side to your abilities.

Expectations of the future: Maybe you can ask about getting access to documents or files. Maybe there were some email connections you made. It never hurts to ask. The worst they can say is no.

Here are some additional considerations during your post-firing meeting:

Objectivity: Taking the objective route of working your way through thinking about the firing from their perspective can be cathartic.

Humanize it: Think of the person who fired you as a flawed human just like the rest of us and assume he or she made a decision out of something that was based in reason or fairness.

Beyond control: If the firing was only due to economic reasons, then rest assured that this happened through no fault of your own.

Angles: Consider the circumstances from all angles before moving forward. Would colleagues agree with the decision? Would a perfect stranger? Would it matter?

Post firing exercise.

In order to move on fast while growing as an individual and professional, I advise giving the following topics some thought. Write a few bullet points out:

  • Top 3 reasons given for being let go: X, Y, Z
  • Top 3 things I could have done to avoid this: A, B, C
  • Top 3 things I can learn to overcome A, B, C and avoid X, Y, Z are 1, 2, 3

If you couldn’t have changed anything, you’re nearly ready to move on. If you could improve something; save that. This should be the cornerstone of your road map moving forward.

changelly5Also important is to give yourself a reasonable period of time with a specific end date/time in mind where you are no longer going to allow yourself to feel bad about being fired. The last time I was terminated, I gave myself a total of an hour to feel sorry for myself. The first time I got fired I gave myself three days to throw myself a pity party. It’s OK to embrace all of the non-productive “woe is me” thoughts during this time. But once the time limit I set in advance was up, I set my mind into a state of focus on the next steps. Fight the urge to bring up or dwell on negative thoughts. They won’t serve you and won’t change anything.

Create your to-do list.

Step one to moving forward is starting something … anything. Often, the less time you put between your last day and getting back on your journey makes bouncing back much easier.

Focus on completing your to-do list. Put yourself into something that is cathartic but also measurable. Blend it with the three things you need to learn from the earlier bullet point exercise (Remember: X, Y, Z, / A, B, C, and 1, 2, 3). Even if you don’t believe in the reasons for your untimely exit, these points are still somewhat valid. Set a schedule that reflects working hours and begin working through your “to do list.”

Depending on your circumstances, you may feel that some self-improvement is necessary. Go for it. Find out what courses or books might help provide you with the insights and skills you need to take you to the next level. Perhaps even consider meditation if you don’t practice it already. A clear mind is ready for new challenges.

From there, of course, you’ll want to think about creating income. In other words, finding a new job. Spend time updating your resume, portfolio, and LinkedIn profile. While you’re on LinkedIn, consider reaching out to your connections. Someone you know in your industry might already be hiring for your next dream job. Never forget to ask for the job at the end of a meeting for just help in general. I always try to remember to ask people how I can help them for good measure, as well. Create a list of job prospects and keep it updated as your conversations progress.

Be proactive about staying positive.

Finding a new job might happen fast, or it might take some time. What should you do if the negative thoughts persist? Repurpose them into something constructive. Gamify it.

  • I’m not good enough = Work through a tutorial on YouTube and learn a new skill
  • Nobody will hire me = Make three new connections on LinkedIn or apply for three jobs
  • Nobody likes me = Read a chapter of a self-improvement book of your choice
  • I don’t have a network = Go to one event per week (virtual!) and meet three people

What came of my job losses?

I used all of my negative experiences as momentum and pure energy to drive forward. I went all-in on working toward setting meetings and interviews.

And you can do that, too.

After my last firing, I came to terms with my desire to run my own companies again rather than defer to others. Public speaking came first. I landed a ton of talks at meetups, keynotes, and guest lectures. When talking about what I was working on, I had a sense of humor about my job loss and used the opportunity to also mention I was looking for new clients and investment.

Ultimately, I went full in on my digital marketing/growth-hacking agency and proptech startup for architects.

Losing your job is not your identity, so don’t make it into one. Unemployment is temporary.

Remember things always get better when you’re being constructive. Building a to-do list and sticking with it should be your goal for now.

And whatever you do, don’t feed negative thoughts. They grow every time you give them a chance. Use any negative inclinations that spring up as momentum to get more done.

Never be afraid of asking for help. Put yourself out there. I’ve certainly done it here.

By: Taylor Ryan CEO Klint Marketing

bevtraders-2

Five Points To Consider When Looking At The Latest Labor Market Data

1

The Bureau of Labor Statistics released its latest estimates for the state of the labor market on August 7. The economy gained 1.8 million jobs in July and the unemployment rate fell to 10.2% in July from 11.1% in June. Still, 16.3 million workers were looking for a job but unable to find one and the unemployment rate stayed at double digits for the fourth month in a row. Moreover, the pace of job gains has markedly slowed from 4.8 million new jobs in June to a little over a third of that rate with 1.8 million new jobs in July.

The U.S. is looking at a deep, prolonged recession with massive economic pain for many workers. The continuation of the labor market picture requires swift and large-scale policy interventions from helping the workers hurt the most by the recession and from further worsening the economic outlook.

Five points are worth highlighting with respect to the latest jobs data.

First, the job market slowdown occurred as many states bungled their pandemic response. Several states rushed to reopen their economies in May, even as the virus’ spread was not under control. Many experienced massive surges in new infections. These surges prompted new public health measures, while people also curbed their own activities. Businesses closed and laid off people anew. Job gains stalled and economic pain deepened in states that had taken fewer precautions to stemming the virus’ spread. It is now abundantly clear that getting the spread of the novel coronavirus under control is key to a sustained economic recovery and to quickly bringing people back to work.

Related: How to start a real estate business by investing of only 500$

Second, this is still a recession that heavily falls on women. White, Latina and Asian women have higher unemployment rates than is the case for White, Latino and Asian men.

This trend reversed, though, among African-American men and women over the spring. Initially, Black women had higher unemployment rates than Black men, but Black men have had higher unemployment rates than Black women in June and July. In July, the unemployment rate for Black men stood at 15.2%, while that for Black women was 13.5%.

Third, all communities of color suffer from higher unemployment than white workers do. The unemployment rate was 14.6% for Black workers, 12.9% for Latinx workers and 12.0% for Asian workers in July 2020. In comparison, the unemployment rate for white workers fell below 10% with 9.2% last month. The difference in unemployment rates by race or ethnicity was thus largest between Black and white workers.

Moreover, the unemployment rate has declined more for white workers than for either Black or Asian American workers. The unemployment rate for white workers dropped by five percentage points from April to July 2020, a little less than the six percentage point drop for Latinx workers. In contrast, the unemployment rate only fell by 2.1 percentage points for Black workers and by 2.5 percentage points for Asian American workers. Slower labor market improvements for African-Americans than for white workers reflect the pattern of “first fired, last hired.” In any recession, Black workers suffer from more widespread, longer-term unemployment than white workers do.

Fourth, people are looking longer for a new job as the deep recession persists. The share of unemployed workers who have permanently lost their jobs grew from 11.1% in April to 22.6% in July. At the same time, the average length of unemployment almost tripled from 6.1 weeks in April to 17.9 weeks in July. As a growing share of workers have difficulties finding a new job amid double-digit unemployment rates, they will face economic hardships such as delayed or deferred rent payments and an inability to regularly pay for food.

Fifth, older workers now have relatively high unemployment rates. The unemployment rate for workers 55 years old and older was 8.8% in July, while that for workers from 35 to 44 years old was 8.1% and that for that for workers from 45 to 54 years old was 7.8%. This is a reversal from prior recessions, when older workers typically had lower unemployment rates than younger ones. Many older workers are staying in the labor market because they often lack savings and have high costs, for instance, from widespread debt and insufficient health insurance.

The Trump administration has abdicated responsibility for identifying and coordinating a national pandemic response. State and local governments have not gotten the pandemic under control in large parts of the country. With the public’s health at a high risk, people are slowing down on their own to protect their health and governments reimpose measures to control the spread of the virus on businesses. Job losses and widespread unemployment continue on a massive scale. To avoid making the recession even worse, Congress will need to quickly provide assistance to unemployed workers, struggling businesses and cash strapped state and local governments at the front line of the efforts to defeat the virus and bring the job market back.

Follow me on Twitter.

I am an economist focusing on retirement security, wealth inequality and economic policy. I care about how people handle economic risks and whether policies to address these risks can help reduce inequality. My research appears both in academic publications and as policy reports for Washington think tanks. I am a professor of public policy at the University of Massachusetts Boston and a senior fellow at the Center for American Progress, Washington, DC.

Source: forbes.com

financecurrent3

Whether you’re a bitcoin trader or new to the market, you can buy, sell, and trade cryptocurrency with AUD, USD, and other major currencies. We service clients globally, including Australia, the United States, Singapore, Canada, New Zealand, and Europe

%d bloggers like this: