Think Tank Contradicts Other Sources in Citing Unemployment Hike for Least Educated

The Employment Policies Institute has issued a press release today that claims that unemployment is rising among those making the least amount of money. The Institute reports that this jump in the jobless rate is due to the increase in the federal minimum wage. Even though the Employment Policies Institute bases its numbers on figures obtained from the U.S. Department of Labor, the September report from the U.S. Bureau of Labor Statistics shows no such increase in unemployment.

The Employment Policies Institute (EPI) is sending its press release out to major media outlets and news services such as NewsWire in hopes that those outlets will pass on the story without additional confirmation of the numbers and their sources. The EPI states that it is nonprofit research organization dedicated to studying public policy issues surrounding entry-level employment. However, the EPI is listed as a client of Berman and Company, which manages other "nonprofit" groups such as the American Beverage Institute. The ABI fights groups like Mothers Against Drunk Drivers and such legislation as state and city smoking bans in bars and restaurants.

The Employment Policies Institute does not list a board of directors or even their staff on its Web site. There is no contact information or even an address. SourceWatch reports that the Institute's address is the very same as Berman and Company, and that Richard Berman is the Executive Director of the Institute. Berman is a well known lobbyist in Washington, who has in the past worked for a front group for Philip Morris.

The Institute's press release cites U.S. Labor Department statistics that report that unemployment rose in September. Dr. Jill Perkins, the Chief Economist for the EPI, "Politicians continue to ignore the overwhelming evidence that minimum wage hikes increase unemployment among economically vulnerable groups like high school dropouts and African American teens. Mandated wage hikes price many low-skilled Americans out of the job market."

However the Bureau of Labor Statistics' October 5 Employment Situation Summary reports that "the unemployment rate was essentially unchanged at 4.7 percent" Furthermore, the Summary states that food services, which usually pays the minimum wage, added jobs, and "nearly half of the over-the-month increase in the labor force occurred among teenagers."

The EPI states that such Web sites as Gatewayjobs.com supports its numbers and claims. However, that Web site is part of the EPI. The Web site has reports and charts that show increasing unemployment levels among certain groups, but no where does it report where those numbers and figures originate.

Sources: Employment Policies Institute; Bureau of Labor Statistics of the US Department of Labor; SourceWatch, NewsWire