The document proposes a "Job Insurance" program that would provide unemployment insurance and jobs for unemployed workers. For a modest monthly premium paid by workers and employers, the program would create a national Job Insurance Fund to finance jobs for laid off workers. It would be administered through a national Labor Market Board and state/local boards to design public projects that unemployed workers would be assigned to. The program aims to permanently reduce unemployment, poverty, and increase economic growth while providing workers basic rights and benefits like healthcare.

1. Job Insurance The Safety Net Under The Safety Net © Steven Attewell The Realignment Project 8/27/2009

2. Overview Job Insurance: The Concept Historical Background Finance Organization Employment Results 2 © Steven Attewell, The Realignment Project, 8/27/2009

3. Job Insurance – The Concept For a modest monthly premium, you get the right to a job if you get laid off Spread the costs of a full employment program Across the entire workforce 3 © Steven Attewell, The Realignment Project, 8/27/2009

4. Job Insurance – The History Committee on Economic Security, 1934/5: Labor Department focuses on Unemployment Insurance FERA (Fed. Emergency Relief Admin) argues for jobs instead Emerson Ross’ memorandum: Option 1: contributory work insurance + Work Program Option 2: contributory work insurance -> Work Program Option 3: Work Program and U.I side by side 4 © Steven Attewell, The Realignment Project, 8/27/2009

5. Job Insurance – Financing, I It costs approx. $40 billion to create 1 million jobs/1 year Approx. $20-24k in salary +12% for FICA = $26.8k per job $26.8k x 1 million = $26.8 billion per million jobs + 30% non-labor costs (vs. historical 20% in WPA) = $35 billion/1 million jobs (good to keep some margin for error) 5 © Steven Attewell, The Realignment Project, 8/27/2009

6. Job Insurance – Financing, II How do you find the $40 billion/year? 150 million workers in U.S workforce x $20 a month premium(split with employer) = $3 billion a month x 12 = $36 billion a year into a Job Insurance Fund Thus, within a few years, the JIF can build a reserve that could create several million jobs in a recession (4 million as avg.) With some government assistance, the JIF could dramatically speed up the process of reserve building and potentially dealing with 10%+ unemployment 6 © Steven Attewell, The Realignment Project, 8/27/2009

7. Job Insurance – Organization, I Locate in Labor Department or Independent Agency: 3 Key Parts: 1. Job Insurance Fund – Collects premiums through IRS withholding, Deposits premiums in U.S Treasury Office of Fund Management oversees the Fund, disperses moneys when authorized, reports to President and Congress as to level of funds compared to demand and potential demand for labor 7 © Steven Attewell, The Realignment Project, 8/27/2009

8. Job Insurance – Organization, II 2. National Labor Market Board – Chair and Executive Director is advised by board with 2 members from labor, 2 members from business, and 2 members from Congress; Board sets national policy, authorizes funds to be spent // to Military Base Recommendations, within 18 days Project Design Office designs model projects, approves projects forwarded to it Employment Monitoring Officesets number of jobs to be created to maintain employment of X% or less 8 © Steven Attewell, The Realignment Project, 8/27/2009

9. Job Insurance – Organization, III State + Local Labor Market Boards (Fed-operated): Design “shelves” of public projects Keep track of local unemployment conditions Hire project managers, engineers, etc. Partner with U.S Employment Service to place Job Insurance claimants in positions Partners with state and local government to finance non-labor costs (materials, tools, land, etc.) 9 © Steven Attewell, The Realignment Project, 8/27/2009

10. Job Insurance – Employment, I After a certain # of months of private employment, a premium-paying worker would become eligible for a spot on a Job Insurance Project After applying through their local Employment Office, workers would be hired through the local Labor Market Board (either by random lottery, order of application, etc.) and assigned to a project in their area, attempting to match skills where possible however, there would also be regional projects open to deal with the problem of spatial mismatch 10 © Steven Attewell, The Realignment Project, 8/27/2009

11. Job Insurance – Employment, II Terms of Employment: Workers would be hired for a 6-month contract, after which they would be required to do a job search (if job search failed, then they could re-apply for another 6 months) Pay and Benefits: Pay would be approx. $20-24k a year Job Insurance would also provide health care, pay FICA Prevents disruption in coverage; maximizes payees/retiree 11 © Steven Attewell, The Realignment Project, 8/27/2009

12. Job Insurance – Employment, III Conditions of Work: 32 hours work/week, 8 hours/week in job training/higher education (to improve and maintain skills and employability) Workers would operate under basic Just Cause setup; however, absenteeism, performing below expectations, or insubordination would be grounds for termination (J.I is about the right to get a job, not the right to keep it) Worker’s Rights: Workers would work under a J.I Worker’s Bill of Rights, establishing basic rights of fair treatment Workers would also have the right to organize under the NLRA 12 © Steven Attewell, The Realignment Project, 8/27/2009

13. Job Insurance – Results A Job Insurance program could: …permanently reduce unemployment to 3-4% or below …permanently reduce poverty rates to as low as 8% …increase average economic growth by anywhere from 1-3% 13 © Steven Attewell, The Realignment Project, 8/27/2009

14. Conclusion Job Insurance can massively reduce economic insecurity, unemployment, poverty Job Insurance is a deficit-neutral mechanism for expanding and strengthening the Social Security System Job Insurance offers a uniquely American solution to the modern social question 14 © Steven Attewell, The Realignment Project, 8/27/2009