Anemic U.S. Job Growth Compounds Concerns about Economic Impact of NC Budget
The U.S. economy created only 18,000 new jobs in June, a job creation number virtually unchanged from May, according to new employment data released today by the Bureau of Labor Statistics. Given that the national economy had previously generated an average of 215,000 new jobs per month from February through April of this year, this anemic job growth rate indicates a significant fall-off in the economy’s ability to grow employment opportunities for the newly and long-term unemployed.
At the heart of this collapse in employment growth lies public sector layoffs at all levels of government, which together shed 39,000 jobs over the last month. In fact, without these lay-offs, the economy would have created 57,000 new jobs—almost three times the existing number according to the report.
These topline employment numbers do not yet account for the economic ripple effects resulting from these layoffs, as former public sector employees cut back on consumer spending at local businesses.
The NC General Assembly should consider the broader economic impacts that result from cutting public sector jobs. BTC economic impact analysis of the total state budget, which considered the effects of both tax cuts and spending cuts, found that the state budget, as passed, will result in 29,782 North Carolina jobs lost, $1.2 billion in lower wages, and $2.3 billion in lost industry output by the end of FY12-13.
Given the role of public sector lay-offs in retarding the economy’s ability to create jobs, the recent state budget will clearly make North Carolina’s anemic job creation picture even worse.
Author: Allan Freyer (email@example.com)
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· At the heart of this collapse in employment growth lies public sector layoffs at all levels of government, which together shed 39,000 jobs over the last month. In fact, without these lay-offs, the economy would have created 57,000 new jobs—almost three times the existing number.