More About Chad Stone

Chad Stone

Chad Stone is Chief Economist at the Center on Budget and Policy Priorities, where he specializes in the economic analysis of budget and policy issues. You can follow him on Twitter @ChadCBPP.

Full bio and recent public appearances | Research archive at CBPP.org


Today’s Jobs Report in Pictures

August 1, 2014 at 10:02 am

Today’s solid jobs report shows a labor market that is moving in the right direction but still has a ways to go before everyone who would like to be working has a reasonable chance of finding a suitable job.  In particular, Congress dealt the long-term unemployed a harsh blow when it allowed federal emergency jobless benefits to expire prematurely at the end of last year.  Seven months later, long-term unemployment remains higher than when any of the previous seven emergency unemployment programs expired after previous recessions.  In addition, the share of the population with a job remains well below where it was at the start of the recession.

Today’s Jobs Report in Pictures

July 3, 2014 at 11:28 am

Today’s jobs report contains encouraging signs that the labor market is healing but also reminders that it remains far from fully healed.  Payroll employment jumped by 288,000 in June and the unemployment rate fell to 6.1 percent.  While employment increased sharply and unemployment fell, there was little net growth in the labor force, leaving the percentage of people with a job well below where it was at the start of the Great Recession.  Nearly a third of the unemployed have been looking for work for 27 weeks or longer and encounter more re-employment obstacles than the typical jobseeker.  That’s why Congress should act immediately to restore emergency federal unemployment insurance.

Employment bar chart

Unprecedented job losses

Unemployment rate

Epop

Long-term unemployed

Emergency Jobless Benefits Cut-Off Has Hit Nearly 300,000 Veterans

June 24, 2014 at 12:16 pm

The number of jobless veterans who’ve lost access to federal jobless benefits since Congress allowed Emergency Unemployment Compensation (EUC) to expire at the end of last year — which we estimated at the end of February was close to 200,000 and counting — will reach an estimated 285,000 by the end of this month.

EUC provided additional weeks of unemployment benefits to people who could not find a new job before exhausting their regular state benefits, which run for up to 26 weeks in most states.  About 1.3 million workers were cut off from EUC when the program expired on December 28, according to the most recent Labor Department estimates, and another 1.6 million have exhausted their regular state benefits in the first six months of this year.

We estimate that about 1 in 10 EUC recipients were veterans (based on the Census Bureau’s March Current Population Survey, which shows that over the last three years, 9.7 percent of unemployment insurance recipients who were looking for work for between 27 and 73 weeks were veterans).  Applying that percentage to the Labor Department totals, about 285,000 veterans have been cut off from EUC — about 130,000 when the program expired December 28 and even more since then who have exhausted their regular benefits and not received any EUC.

In February, we urged Congress to act quickly to reauthorize EUC retroactively to restore benefits to those who’d already lost them and keep the total number of vets — and other long-term unemployed workers — denied emergency jobless benefits from continuing to grow.

Congress hasn’t acted yet — and the numbers keep growing.

Today’s Jobs Report in Pictures

June 6, 2014 at 9:54 am

Today’s jobs report shows that more than six years after the onset of the Great Recession and the worst jobs slump since the 1930s, payroll employment has finally topped its level at the start of the recession.  Still, with essentially no net job growth since December 2007 but continued growth in the working-age population, there are many more people now who want to be working but don’t have a job.

Click here for my full statement with further analysis.

Need to Protect Low-Income Households Up in the Air Under EPA Climate Regulation

June 3, 2014 at 12:42 pm

In my latest post for US News & World Report, I previewed the Obama Administration’s proposal to reduce carbon pollution from existing electric power plants.  It was important to include robust low-income protections in the comprehensive national “cap-and-trade” proposal that Congress debated but failed to enact.  Should the new proposal also include such protections?

At this point, we don’t know.  The new proposal relies on the Environmental Protection Agency (EPA) to establish emissions-reduction goals for each state and approve state plans for meeting those goals.  As CBPP has explained, such a prescriptive regulatory approach will likely be less cost-effective (i.e., it will cost more to achieve a given emissions target) than a comprehensive market-based approach like cap-and-trade or a carbon tax that “puts a price on carbon” and lets market forces determine where emissions reductions come from.  But the consumer impact is likely to be smaller under regulation precisely because the price signal is weaker.

As I say in the US News post:

The Obama administration pledges to give states as much flexibility as possible to meet the new regulations on emissions from existing power plants, and there are several ways to do that, including some that mimic a carbon tax or cap-and-trade, achieving some of the cost efficiencies (but only within the existing power plant sector)…

One leading issue in designing market-based solutions is the impact on consumers, especially low-income households, of putting a price on carbon.  The comprehensive bills that Congress debated in 2009-10 addressed that issue by allocating some of the revenue the government received from selling emissions allowances to consumer relief.  EPA regulation is less cost-effective, but it also has a less adverse impact on household budgets.  But were states to choose more market-based solutions within the EPA’s requirements, such as joining regional cap-and-trade systems, both federal and state policymakers should be mindful of the possible harm to low-income households.

The EPA will issue final guidelines in about a year and states will have until June 2016 to submit plans.  In the meantime, CBPP will continue to urge policymakers to develop policies that are compatible with protecting both the environment and low-income households.