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NC Budget and Tax Center

Another new jobs report, the same old story for North Carolina’s metro areas–too many of the state’s urban centers are struggling to create jobs and meaningfully create opportunities for the unemployed. Some of the low-lights from yesterday’s June report on local area unemployment include:

  • 13 out of 14 metros saw their labor forces decline since June 2013, suggesting that too many workers are unable to find work and continue to drop out of the workforce.
  • 8 out of 14 metros saw their unemployment rates drop because the majority of unemployed workers moved out of the labor force rather into jobs. That means that the unemployment rate isn’t going down because things are getting better for workers, but rather because things are getting worse.
  • 3 metros (Fayetteville, Hickory, and Jacksonville) have fewer people going to work in June 2014 than they did last year.
  • Only 4 metros (Durham, Raleigh, Charlotte, and Wilmington) have created enough jobs to fully replace the jobs lost during the Great Recession. After five years, 10 metros have yet to fully recover from the recession.
  • For 10 metros, it will take more than a year to fully replace those lost jobs, if they create jobs at the current pace.
  • One metro, Hickory-Lenoir, will take almost a half century to fully return to pre-recession employment levels if they maintain their current pace of job creation.

All told, this is a dismal jobs reports for our state’s metro areas, far removed from recent claims about the state’s supposed economic renaissance.

Women and the Economy

Support for Paid family leave advanced in the U.S. Senate yesterday, as lawmakers heard testimony on its benefits in a key Children and Families Subcommittee hearing on Capitol Hill.

During the hearing—which was requested by U.S. Senator Kay Hagan—North Carolina business owners, advocates, and representatives of working families made the case for why paid family medical leave policies benefit both employees and businesses. Such programs allow workers to recover from a serious illness or care for a sick loved one or new child without risking their job or the income they need. The hearing renewed a call for a universal family and medical leave insurance program that doesn’t shoulder all the burden of cost on employers.

Currently the Family and Medical Leave Act is the only federal law designed to help working people succeed both as providers and caregivers. It leaves out 40 percent of the workforce and guarantees only unpaid leave, which millions cannot afford. Only 12 percent of U.S. workers have access to paid family leave through their employers, and less than 40 percent have personal medical leave through an employer-provided temporary disability program. This means millions of workers who develop serious health conditions, have seriously ill family members or become parents are forced to choose between providing care or having the income they need to cover basic expenses.

In North Carolina, 77 percent of mothers with children under 18 work, and 44 percent of workers have no access to paid sick days, let alone paid family medical leave. Low-income workers have it even worse off and are often given no flexibility in their work schedules at all.

Two North Carolinians testified at the hearing. Jeannine Sato is a resident of Durham, NC and member of NC MomsRising. Sato’s previous employer denied her extended leave after the birth of her first child. She said:

We are human – to pretend that people don’t get sick and that they don’t give birth just doesn’t make sense….Families should have the opportunity to care for their loved ones without the risk of losing their jobs or falling into poverty…. America needs to step up and join the rest of the industrialized world in offering paid family leave in order to be competitive and humane.

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NC Budget and Tax Center

Jobs11-5During the debate over last year’s billion-dollar-a-year tax cut plan, supporters made a lot of big promises about the supposed economic benefits of cutting corporate and personal income taxes for wealthy individuals and highly profitable corporations. The problem—as many warned at the time—is that tax cuts almost never live up to their promises.

And that’s the point made in a recent piece by the well-respected Fiscal Times. In order for the tax proponents’ claims to be true, North Carolina would have needed to generate job growth that is significantly better than other states and the national average. According to the Fiscal Times:

The trouble is that the promised job growth hasn’t really materialized.

To be sure, with the U.S. economy as a whole adding jobs at a pace of 250,000 per month, there aren’t many states seeing a downturn in employment anymore. But the promises that went along with the tax cuts and reduced spending weren’t about keeping up with the rest of the country, but about surging ahead.

The Fiscal Times examined the job creation record of North Carolina and two other states that have experimented with deep tax cuts—Kansas and Wisconsin—and found that:

The dramatic tax cutting doesn’t appear to have done nearly as much for job growth as promised.

Wisconsin and Kansas, for example, have actually lagged the national average in job creation since their big tax cuts and budget cuts were enacted:

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NC Budget and Tax Center

We keep hearing that North Carolina’s economy is turning around. But while it’s true that we’re slowly making progress in replacing the jobs lost during the Great Recession, the bad news is that the overwhelming majority of these new jobs just don’t pay enough to make ends meet. In fact, many don’t pay enough to keep workers out of poverty, despite working full time. Check out the latest Prosperity Watch for details.