Economy Archives - Page 19 of 36 - BirminghamWatch

Economy

These companies took $1.8 billion in federal aid to save jobs. They laid off 90,000 workers anyway.

This article was originally published by the Center for Public Integrity, a nonprofit investigative news organization based in Washington, D.C. Rosa Rodriguez spent eight years ironing and hanging bathrobes for guests at the Mirage, the Bellagio and other five-star hotels on the Las Vegas Strip. But as COVID-19 spread through the United States and kept tourists away, there were fewer and fewer robes for her to press. In March, Rodriguez and about 800 of her co-workers were laid off from Brady Linen Services, a laundry service provider for hotels in Las Vegas, Mexico and the Bahamas. Rodriguez said her boss told her he would call her back when more work was available. Brady Linen was approved for a loan of $4.6 million from the federal Paycheck Protection Program, according to data from the U.S. Small Business Administration. The government-backed loans were supposed to help small businesses that struggled during the pandemic pay employees’ salaries and benefits for up to six months, among other things. But Brady Linen did not use the money to rehire Rodriguez and all the other laid-off workers, which the program requires if companies want their loans forgiven. It is just one among hundreds of companies that reported layoffs right before, or soon after, receiving a government loan through the Paycheck Protection Program, according to an analysis by Public Integrity. Read more.

Bus Rapid Transit Line Coming to Birmingham

A new, faster bus line is on its way to the city of Birmingham. The Birmingham Xpress will run roughly 10 miles from Five Points West, through downtown Birmingham, to Woodlawn, connecting 25 city neighborhoods. Read more.

Alabama Struggling With Racial Disparities in Child Poverty Levels, Report Says

Even as Alabama’s child population grows more diverse, children of color are experiencing disproportionately high rates of poverty, according to a report published Thursday using pre-pandemic data. The report, titled Alabama Kids Count, indicates that children of color will make up the majority of the child population and the majority of the workforce by 2030. At the same time, Black and Hispanic children suffered average poverty rates of 41.9% and 42.6%, respectively, between 2014 and 2018. The rate for white children was 16.5%. These findings are especially significant considering that Alabama’s child population is shrinking, said Stephen Warner, the executive director of Voices for Alabama’s Children, which has published the Alabama Kids Count report annually since 1994. Though Alabama’s overall population grew by 10% from 2000 to 2019, its child population shrank by 3%. “Minority children are more likely to struggle in school. Minority children are more likely to live in poverty. And so as the workforce ages, we need these kids to be successful to be the next generation of workers,” Woerner said.

Birmingham Bringing Back Up to 132 of Its Furloughed Employees

The Birmingham City Council has approved a plan to bring up to 132 furloughed city employees — mostly from the Birmingham Public Library and the city parks department — back to work. The workers were furloughed in September due to budget cuts necessitated by COVID-19’s impact on city revenue. The plan, described as a compromise between mayor and council, will be funded by $4.85 million borrowed from the city’s general fund reserve. That’s far less than the $7 million requested in Woodfin’s initial plan, which would also have restored two paid holidays for city employees and reversed some salary reductions to appointed staff. Read more.