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Monthly Policy Update

New estimates from the Federal Reserve project a national unemployment rate of more than 9% for the rest of this year, falling to only about 8.5% by the end of 2011.  Maine’s unemployment rate stood at 8.3% in December, 1.4% lower than the national average, but still painfully high, with much higher rates in northern, eastern and western parts of the state.

There may be a recovery slowly taking shape  – but for now Maine’s economic situation demands a careful approach at the state house.  And to their credit many lawmakers understand the need to avoid doing anything that will hurt job creation, or make it harder to retain employees on the job.

The Labor Committee has two bills before it that run headlong into today’s economic reality.  One tries to mandate better job benefits (mandatory paid sick leave, LD 1665) – another tries to mandate higher wages (automatic minimum wage increases indexed to inflation, LD 192).  Both bills are well intended, but neither one helps to keep workers on the job, or to make it easier to hire new people. 

Right now the simple reality is that employers are fighting tooth and nail to keep the doors open and the paychecks coming.  Better pay and better benefits will come from economic recovery – not from laws demanding something most Maine employers can’t currently deliver.

In the coming days the legislature will hold votes on these two bills.  Even if you’re not directly impacted by either bill, many other employers and employees will be, and in the end we all share the same economic fate.  It’s a good time to help lawmakers understand why they need to step away from bills – like the two above - that hurt jobs in Maine today, and tomorrow.

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