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As it has at the national level, North Carolina’s official unemployment rate continues to fall. And while there’s certainly some good news there, numerous analysts continue to explain why this recovery is especially tepid and shallow for a huge proportion of North Carolinians (and why the trickledown economic policies pursued by state leaders continue to fall short). The latest comes from the economic wonks at CFED. Here’s the release:

New Report Finds North Carolina Ranks Near the Bottom for Financial Security of its Residents
Overall Poor Performance Shows Persistent Financial Insecurity, Need for Comprehensive Public Policy Response

Washington, D.C. – Despite an improving national economy, new data released today by the Corporation for Enterprise Development (CFED) show many North Carolina residents are barely scraping by. CFED’s 2015 Assets & Opportunity Scorecard ranked the state near the bottom among all states for its high number of low-wage jobs (ranked 41st), as well as its high number of low-income residents who don’t have health insurance (42nd) or a four-year college degree (44th).

The troubling data underscore the need for programs and policies that help more families achieve financial security, including reinstatement of the state’s Earned Income Tax Credit (EITC) and expansion of Medicaid. Additionally, a Children’s Savings Account program would provide every child in the state with their own matched savings account for postsecondary education. Recent research has shown that these accounts dramatically increase college attendance and graduation rates. Read More

Commentary

New from the good people at the Budget and Tax Center:

Five years into the official economic recovery, there were signs of a strengthening recovery in North Carolina albeit uneven and insufficient to deliver improved economic well-being broadly. The result is far too many North Carolinians remain without jobs or working for low-wages. Poverty levels have remained high and inequality has grown, both contributing to a less sustainable economy in the long-term. Here are 12 charts that tell the story of North Carolina’s economy in 2014.

Click here to see all twelve.

Commentary

The lead editorial in Raleigh’s News & Observer hits the nail on the head this morning when it says the following about the state of the U.S. economy:

“The recovery from the Great Recession appears to be getting stronger on the eve of Christmas. Alas, politics has dampened the enthusiasm of some Scrooges, President Obama’s critics, who can’t take “yes” for an answer.

As one liberal commentator noted, if this were the second year of a Mitt Romney presidency instead of the sixth year under President Obama, there would be parades in the streets and praise for the president from some of Obama’s perennial critics.

But the facts are the facts. And they’re mostly good.

In November, the Bureau of Labor Statistics estimated, there were 321,000 jobs created, an astounding number. Unemployment is down. The gross domestic product grew at 5 percent, on an annual pace, in the third quarter of this year, the biggest advance since the third quarter of 2003. Consumer and business spending are up.

And as Americans take off on their holiday travels, they’ll see lower gas prices.

And by the way: When the president was formulating the Affordable Care Act, Republicans predicted catastrophic consequences for the economy, with a federal deficit certain to explode. The deficit is down.”

The recovery has started to spread to North Carolina too, of course, and while things have a LONG way to go, there is cause for optimism. As was noted in this story earlier this month, however, the folks on Right-Wing Avenue have taken things to laughable extremes with their absurd attempt to blame every bad thing in the state economy on President Obama and attribute every improvement to Governor McCrory. As we noted in December: Read More

NC Budget and Tax Center

BTC - Missing Workers November 2014

The latest report on labor market conditions was released on Friday showing that despite improvements in North Carolina, there remains a long way to go to proclaim a fully recovered economy. One measure of just what remains unaddressed is the number of missing workers in the state, those workers who if job opportunities were stronger would be in the labor market looking for work.

In November 2014, there were an estimated 302,285 missing workers in North Carolina. If these workers had actually been counted in the official unemployment rate that rate would be 12.4 percent, more than twice the official rate for November of 5.8%.

Uncategorized

As Dean Baker notes this morning, the national economic news is encouraging. In addition to the record high Dow Jones average, Baker points out:

“The economy added 288,000 jobs in June, making it the fifth consecutive month in which the economy added over 200,000 jobs. This is the longest stretch of 200,000 plus job growth since before the recession. The job gains were broadly based. Retail was the biggest gainer, adding 40,200 jobs, with professional and technical services adding 30,100 jobs. Manufacturing added 17,000 jobs for the second month in a row.

The news was also positive in the household survey with the unemployment rate falling to 6.1 percent, a new low for the recovery. This was due to people entering the labor force and finding jobs; the employment-to-population ratio rose to 59.0 percent. This is a new high for the recovery, but still 4.0 percentage points below its pre-recession level. Another piece of positive news is that the percentage of people who are unemployed because they voluntarily quit their jobs rose to 9.0 percent, the highest since the collapse of Lehman. This is a sign of growing confidence in the labor market.”

Unfortunately, the economic news is not so encouraging in North Carolina. As Allan Freyer of the Budget and Tax Center pointed out in a news release on Tuesday: Read More