Jobs News

Investing in a World-Class Education System

To explore two interactive maps that show how investments in our schools will affect each state and district across the country, click here.

A report released today shows that schools across the country are in serious need of repairs and renovations that they simply can’t afford to make. From Rhode Island to Nevada, schools are operating with leaky roofs, broken pipes, and outdated mechanical and electrical systems. Far from being able to provide our students with the skills and training needed for 21^st century jobs, some schools are so overdue for renovations and upgrades that they can’t be wired for internet access.

When President Obama proposed the American Jobs Act, he included a $25 billion investment in renovating and modernizing our public schools, and $5 billion to upgrade infrastructure in America’s community colleges. The repairs and construction projects needed would put hundreds of thousands of Americans back to work on a range of projects, from emergency repairs and renovations to energy efficiency upgrades to modernizing and upgrading classrooms, labs, and technology infrastructure.

As today’s report shows, the physical condition of our schools has a real impact on our students.School buildings with poor lighting, ineffective heating and cooling systems, excessive noise, or other deficiencies put students at a disadvantage—simply put, students in poor buildings are more likely to struggle academically.  They are more likely to perform poorly on tests, miss days of school, or drop out altogether.

Another crucial piece of President Obama’s plan for our schools is a $30 billion investment to hire and retain teachers. Nearly 250,000 educators lost their jobs between October 2008 and October 2011 as a result of the recession’s effect on state and local budgets, and another 280,000 could be at risk without federal assistance.

America’s education system has always been one of our greatest sources of strength and global eco­nomic competitiveness. Our nation cannot expect to train our children for the high-skilled jobs of today, or for the opportunities of the future, without investments in a world-class education system.

To demonstrate the impact of the American Jobs Act’s investment in our schools, the Department of Education also released two interactive maps that show its effects on every state and school district in the country. The maps (and downloadable datasets behind them) are available here.

Ensuring Fair Pay for Homecare Workers

President Barack Obama delivers remarks on new minimum wage/overtime protections for in-home care workers at a “We Can’t Wait” event in the Eisenhower Executive Office Building of the White House, Dec. 15, 2011. Among the workers joining the President was Pauline Beck, right, a home care worker from California who, in 2007, was shadowed by then Senator Obama as part of an event called “Walk a Day in My Shoes.” (Official White House Photo by Pete Souza)

Four years ago, President Obama spent the day with Pauline Beck, a home health care worker. He followed her throughout her day -- as she got up at 5:00 in the morning to care for an 86-year-old amputee. He saw first-hand the demands of her work.

Their business is a growing industry -- one of the fastest in America. As the population of this country gets older, more Americans are turning to people like Pauline Beck to help make sure they have the care they need. And as the President said this morning, "As the homecare business has changed over the years, the law hasn’t changed to keep up." In the eyes of the law, homecare workers fall into the same category as a teenaged babysitter.

President Barack Obama delivers remarks on new minimum wage/overtime protections for in-home care workers at a “We Can’t Wait” event in Room 430 of the Eisenhower Executive Office Building of the White House, Dec. 15, 2011. Attendees include: Labor Secretary Hilda Solis, Karen Kulp, President & CEO Home Care Associates; and home care workers: Pauline Beck, Thelma Reta, Iterra Blackshear, Tracy Dudzinski, Manuela Butler, Elma Wauneetta Phillips, Bertie Caraway, Margaret Glover, Elva Munoz, Michelle Wise, Olive Nanette Lyons, April Jones-Britt, Martha Cobos, and Gilda Brown; and home care employers: Sascha M. Bittner and Robin L. Shaffert. (Official White House Photo by Lawrence Jackson)

So today, the President did something to help homecare workers like Pauline Beck. He announced his support of a law to extend overtime pay protections and a guaranteed minimum wage to those who do this work:

We are going to make sure that over a million men and women in one of the fastest-growing professions in the country don’t slip through the cracks. We’re going to make sure that companies who do right by their workers aren’t undercut by companies who don’t. We’re going to do what’s fair, and we’re going to do what’s right.

Watch President Obama's full remarks here.

We Can't Wait: Meet the Home Healthcare Worker Who Inspired the President

Today Pauline Beck will be at the White House to watch as President Obama announces proposed changes to the Fair Labor Standards Act (FLSA) that will affect home healthcare workers like herself. Today's event has special significance for Pauline, because it was the day then-Senator Obama spent "in her shoes" that informed him of the important work these Americans do and the need to level the playing field so they are fairly compensated for their efforts. Take a minute to watch the video and learn her story.

Will Extending the Payroll Tax Cut Affect Social Security? No.

Lately, many Americans have asked me if the payroll tax cut will affect Social Security. The answer is simply no.

The payroll tax cut has given tax breaks to millions of families across the country this year, providing a boost to their pocketbooks. Extending it would ensure that taxes do not go up for nearly 160 million hardworking Americans on January 1st -- an increase of $1,000 for the typical household.

While more money stays in workers’ paychecks, the law specifies that Social Security receive every dollar it would have gotten even without the payroll tax cut. This happens by automatically transferring resources from the government’s general coffers to the Social Security Trust Fund. And indeed, the chief actuary of the Social Security Administration has confirmed that the payroll tax cut would have no impact on the Trust Fund.  

The President believes that Social Security is a sacred compact, that in return for a lifetime of hard work, America’s seniors will have a chance to retire with dignity. We have an obligation to keep that promise and safeguard and strengthen Social Security for seniors, people with disabilities and all Americans, both now and in the future.

The President also believes in the need to spur economic growth. The payroll tax cut will generate growth and put people back to work.

Jon Carson is Deputy Assistant to President and Director of the White House Office of Public Engagement

President Obama Discusses Richard Cordray and the Payroll Tax Cut

President Barack Obama remarks on the Republican obstruction of Richard Cordray’s nomination to head the Consumer Financial Protection Bureau during a statement in the James S. Brady Press Briefing Room of the White House, Dec. 8, 2011. (Official White House Photo by Chuck Kennedy)

 

This morning, Senate Republicans blocked the confirmation of Richard Cordray.

Shortly after, President Obama walked into the briefing room here at the White House to address that vote -- and the refusal of Congress to extend the payroll tax cut.

The President spoke first about his nominee to head the Consumer Financial Protection Bureau:

Consumers across the country understand that part of the reason we got into the financial mess that we did was because regulators were not doing their jobs.  People were not paying attention to what was happening in the housing market; people weren’t paying attention to who was being taken advantage of.  There were folks who were making a lot of money taking advantage of American consumers.  

This individual's job is to make sure that individual consumers are protected -- everybody from seniors to young people who are looking for student loans, to members of our Armed Services who are probably more vulnerable than just about anybody when it comes to unscrupulous financial practices. 

There is no reason why Mr. Cordray should not be nominated, and should not be confirmed by the Senate, and should not be doing his job right away in order to carry out his mandate and his mission.

President Obama promised to explore all options and take nothing "off the table" with respect to ensuring that the CFPB is able to fulfill its mission of protecting consumers. 

Helping Job Creators Get the Capital They Need

Today, we can do more to increase the amount of capital that flows into the hands of entrepreneurs at every stage in the growth of their companies. 

Helping these businesses grow is a top priority for the Obama Administration, as we know that small businesses create most of net new jobs that are added to the economy each year.  We have an economic imperative to make sure we support these firms through creating an environment where they have access to capital markets to help facilitate growth at every stage.

Over the past three years, we have made great progress in helping small businesses.  The President has signed into law 17 tax cuts for small businesses, from greater expensing provisions to the President’s signature call to eliminate capital gains taxes on certain investments in small businesses as well as two new small business lending funds.  SBA loans also had an all-time record year. Right now, the President continues to call on Congress to cut payroll taxes in half for nearly 6 million small businesses, providing even more incentives for them to hire and grow. 

Startups and high-growth firms – the biggest job creators – have different capital needs than other small businesses.  That’s why almost a year ago, we launched Startup America, a White House initiative to create the best possible climate for high-growth entrepreneurs across the country. Today, at the Startup America Partnership board meeting hosted at the White House, we are announcing two important initiatives that show how we are working to specifically address the needs of startup businesses.  And the President is calling on Congress to do more.

First, today we’re announcing that the Administration has taken action to create a new Early Stage Innovation Fund through SBA’s existing Small Business Investment Company (SBIC) program.  We’re making $1 billion available over the next 5 years to match private capital in funds that invest in early-stage, high growth-potential startup companies. SBA’s existing SBIC program just had a record year of helping over 1,000 businesses get $2.6 billion in capital, and created new vehicles like SBA’s first Impact Investment Fund, which recently launched in Michigan.

At the same time, the independent Startup America Partnership has mobilized commitments from more than 50 private-sector partners to deliver over $1 billion in value – from free software to free consulting and legal services – to 100,000 startups over the next three years.

And there’s more action we can take.  In September, when the President announced his American Jobs Act, he called on Congress to take specific steps to help small businesses raise the funds they need to innovate and grow.  Consistent with this call to action, the President is urging Congress to work on a bipartisan basis to develop these ideas by passing legislation related to:

• Crowdfunding:  Nonprofits have already harnessed the power of online fundraising and social media to help meet their mission.  In a similar way, we can create an appropriate regulatory framework for small businesses and startups to raise the capital they need from many small-dollar investors, while ensuring investor protections.
• Regulation A “Mini-Offerings”:  For small businesses seeking to raise less than $5 million, there is an existing exemption from certain SEC requirements.  But very few businesses are taking advantage of this “Regulation A” exemption today.  The President has called for raising that limit to up to $50 million, making it easier for small companies to raise the capital they need to grow.
• Creating an On-Ramp for Emerging Growth Companies:   For emerging growth companies, the vast majority of new jobs are typically created after they “go public.”  Yet from 1995 to 2010, listings on U.S. exchanges shrank from 8,000 to 5,000 while listings on non-U.S. exchanges grew from 23,000 to 40,000.  In March, after we held an Access to Capital conference, entrepreneurs and other private sector stakeholders formed an “IPO task force” and reported back to the Treasury Department with recommendations to help scale regulations for emerging growth companies while providing strong investor protections. Some of these ideas are being explored by Congress and the Administration right now.

While moving quickly to pass these initiatives, Congress must develop these proposals in ways that will continue to protect American investors. Over the past few months, we have begun to make real progress.  Members on both sides of the aisle have supported legislation consistent with the ideas that the President called for.  Legislation has passed the House of Representatives with overwhelming bipartisan support. And last week, these issues were highlighted at a Senate Banking Committee hearing where Chairman Tim Johnson noted “This is an issue where I believe there is real potential for bipartisan cooperation.” 

Overall, efforts like these could help improve liquidity for entrepreneurs, and help jump-start the innovative American companies of tomorrow.  At the same time, we need to ensure that as we develop these initiatives we are taking necessary measures to ensure that investors are protected – and the Administration will continue working with Congress to achieve this outcome.

The President, both of us, and leaders across the private sector understand that “one size doesn’t fit all” when it comes to helping small businesses, especially startups and high-growth firms.  Let’s make sure they can get access to the kinds of capital they need to grow and create the jobs we need now. 

What a Fair Shot at Success Means

Watch President Obama's full remarks here.

In the state where his mother was born, President Obama made an argument about laying a new foundation for broad-based prosperity in America.

"It starts," he said, "with making sure that everyone has a fair shot at success."

That means giving Americans the education, infrastructure, and resources necessary to out-innovate our global competitors, structuring our tax system fairly to pay for those investments, and it means creating an environment where everyone -- from Main Street to Wall Street -- plays by the same set of rules. The President said:

As infuriating as it was for all of us, we rescued our major banks from collapse, not only because a full blown financial meltdown would have sent us into a second Depression, but because we need a strong, healthy financial sector in this country. 

But part of the deal was that we would not go back to business as usual.  That’s why last year we put in place new rules of the road that refocus the financial sector on this core purpose:  getting capital to the entrepreneurs with the best ideas, and financing to millions of families who want to buy a home or send their kids to college.  We’re not all the way there yet, and the banks are fighting us every inch of the way. 

And Republicans are standing with Wall Street to block broader reform by refusing to confirm a head of the Consumer Financial Protection Bureau -- the watchdog group is charged with protecting everyday Americans from lenders who are out to take advantage of them. Here's what President Obama had to say:

The man we nominated for the post, Richard Cordray, is a former Attorney General of Ohio who has the support of most Republican and Democratic Attorneys General throughout the country.  

But the Republicans in the Senate refuse to let him do his job.  Why?  Does anyone think the problem before that led to this crisis was too much oversight of mortgage lenders or debt collectors?  Every day we go without a consumer watchdog in place is another day when a student, or a service member, or a senior citizen could be tricked into a loan they can’t afford – something that happens all the time.  Financial institutions have plenty of lobbyists looking out for their interests.  Consumers deserve to have someone whose job it is to look out for theirs.  And I intend to make sure they do.

The Senate is slated to vote on Richard Cordray's confirmation later this week. Check back at WhiteHouse.gov for more information.

School Lunch Pioneer Says the American Jobs Act Will Help Him Make Great Hires

The Bridge to Work provision of the American Jobs Act will enable Justin Gangon's California company, Choicelunch, to offer training in the extremely marketable food service industry to disadvantaged youths in 2012. Provisions in the President's comprehensive plan to immediately put workers back on the job and put more money in the pockets of working Americans will also help the company optimize long-term employee retention by allowing both Choicelunch and prospective employees to determine a better fit prior to hiring. Gangon, a co-founder, says the American Jobs Act will help him grow his business in 2012:

"In doing my initial research, I believe the Bridge to Work provision could be a great benefit.  We have a lot of employees who have been with us for years, and we've had people walk-off the job in the first few hours after making it through a lengthy interview process because they didn't fully realize what it would entail (even though we allow them to observe the work performed and detail the job at length). Ultimately, putting people in a job on a provisional basis is as good for the employee as it is for the employer - both sides get to assess if it's a good match and the probability of long-term success, retention and job satisfaction increases."

President Obama Announces $4 Billion Investment to Make Buildings More Energy Efficient

President Barack Obama and former President Bill Clinton take a tour of the upgrades of the Transwestern Building in Washington, Dec. 2, 2011. (Official White House Photo by Lawrence Jackson)

This morning, President Obama met with former President Bill Clinton to announce the next piece of the "We Can't Wait" campaign -- a $4 billion effort to improve energy efficiency in buildings across the country.

The two were joined by Tom Donohue -- the head of the U.S. Chamber of Commerce -- and Randi Weingarten -- the president of the American Federation of Teachers.

The group toured a building in northwest Washington that's currently seeing an efficiency upgrade. That improvement employs around 250 full-time workers and will save the building $200,000 a year on its energy bills.

Making our buildings more energy efficient is one of the fastest, easiest, and cheapest ways for us to create jobs, save money, and cut down on harmful pollution, President Obama said:

It is a trifecta, which is why you’ve got labor and business behind it.  It could save our businesses up to $40 billion a year on their energy bills – money better spent growing and hiring new workers.  It would boost manufacturing of energy-efficient materials.  And when millions of construction workers have found themselves out of work since the housing bubble burst, it will put them back to work doing the work that America needs done.  So this is an idea whose time has come.

As part of today’s announcement, President Obama directed all Federal agencies to make at least $2 billion worth of energy efficiency upgrades over the next two months. Additionally, 60 private companies, hospitals, cities, states, colleges, and universities, among others, have collectively committed another $2 billion in energy efficiency retrofits to 1.6 billion square feet of property—roughly the equivalent of 500 Empire State Buildings.

The investments announced today are part of President Obama’s Better Buildings Initiative, which set a goal of improving energy efficiency in commercial buildings by 20 percent by 2020. The initiative will reduce energy bills for businesses by $40 billion per year, and one report found it could create up to 114,000 jobs.

More information:

• Read the Better Buildings Initiative Fact Sheet on today's announcement