New Workforce Training Federal Grants; QE Begins in EU

Policy Watch

• President Obama is scheduled today to announce plans for a new program called TechHire that aims to help in training workers for jobs in fields such as software development, network administration, and cybersecurity.  As part of the initiative, $100 million will be made available in grants to universities, employers, and local governments to establish training programs.  In seeking to transition workers into technology intensive fields that can have wages up to 50% greater than the average private sector wage, the White House is hoping to combat stagnant wage growth that has persisted despite substantial jobs additions over the last year. [AP]
• This morning, Wisconsin Governor Scott Walker signed into law a bill passed on Friday by state lawmakers, which would extend right-to-work labor policies to private sector employees.  Right-to-work laws are designed to allow workers to have the option to not pay dues to a union that bargains in their area of work.  Right-to-work laws have been present in states throughout the south and west for decades.  The Midwest, where industrial unions have played integral roles in labor markets, has long resisted right-to-work policies.  However, the signing of today’s bill by Governor Walker builds on earlier actions that he took in 2011 to reduce the collective bargaining rights of public sector employees and is also consistent with right-to-work policies undertaken by other Midwestern states over the last five years.  The effects projected on wages and the labor market are disputed, and it is unclear how the Wisconsin state economy will be affected over the coming years.  [NYT]

Economic Indicators & News

• Today, the European Central Bank’s $1.1 trillion bond buying quantitative easing measure commenced with purchases of German, Italian, and Dutch government bonds, among others.  The program is designed to increase inflation and support the anemic Eurozone economy.  Yields on German bonds have declined to 0.34% this morning, and other bonds have seen yield decreases and corresponding price increases as well.  Greek debt stands alone with yields on ten-year bonds rising and hitting 9.82% this morning.  [FT]