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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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Uncategorized

120px-Tom_Barrett_talking_with_construction_workers

This morning consumer advocacy group Families USA released a report along with the NC Community Health Center Association and the NC Justice Center showing that most people who stand to benefit from closing our state’s health insurance gap are working. Many of these folks are in low-wage service jobs. The report also examines the top occupations in North Carolina where employees would benefit from Medicaid expansion.

There are 59,000 construction workers who would benefit from Medicaid expansion and 56,000 food service workers. When these employees are in good health we are all better off. Construction workers at home with a serious illness and food preparers with untreated diseases decrease productivity and threaten public health.

Chid care workers and home health aides are also disproportionately impacted by our state’s stance on Medicaid expansion, which means that the people who help nurture our children and tend to the elderly can’t take care of their own health needs.

It is a positive sign that Gov. McCrory says that he is keeping the door open to Medicaid expansion in the state. Still, this passive stance will not move us anywhere. If we are going to prevent unnecessary deaths, extend needed preventive care, and help the people who make our food and care for our kids then we need the Governor to lead.

Uncategorized

June’s jobs numbers are out for North Carolina, showing that the state has held on to its unemployment rate of 6.4 percent for the second straight month.

Jobs-buttonThe national unemployment rate was 6.1 percent for June.

The North Carolina numbers for June released by N.C. Commerce Department show a much lower unemployment rate than a year ago, when unemployment was at 8.3 percent and one of the highest rates in the nation.

This month’s job report (click here to read) also shows the state’s labor pool is still shrinking, with 8,577 less people working in June than May.

Over the last year, the state’s labor force has shrunk by nearly 12,000, while the ranks of unemployed dropped by about 90,000 people, according to North Carolina job numbers.

That difference (a shrinking labor pool corresponding with a much larger drop in the numbers of the unemployed) has lead some economists to attribute North Carolina’s drop in its official unemployment rate not to a healthy economy, but to large numbers of long-term unemployed people dropping out of the workforce completely after last year’s cuts to unemployment benefits.

“There is zero evidence that cutting unemployment benefits in North Carolina did anything to spur job growth,” wrote Washington-based economist Dean Baker in an editorial in the News & Observer earlier this month. “There is much evidence that it led those who saw their benefits end to give up looking for work and to drop out of the labor force.

Read more here: http://www.newsobserver.com/2014/07/11/4000035/zero-evidence-that-benefit-cuts.html#storylink=cp
Read more here: http://www.newsobserver.com/2014/02/13/3619704/benefit-cuts-pushed-people-out.html#storylink=cpy

Gov. Pat McCrory and state legislative leaders disagree, and say those changes to the unemployment system and North Carolina’s subsequent rejection of federally-funded long-term unemployment help has put North Carolina in a better economic position.

“Yes, there are some people who probably took jobs they didn’t want instead of staying on unemployment,” McCrory said earlier this week in an interview with Charlotte’s WFAE radio program (discussion begins at 35:00).

“By the way, in my career, I’ve taken jobs that I don’t want,” McCrory said.  He added, “but it gets you in the door, it gets you working and it gets you off the government payroll.”

Click here to read the entire release on North Carolina’s jobs report for June.

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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