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North Carolina had 20,000 fewer people working in July than the previous month, as the state’s unemployment ticked up slightly to 6.5 percent.

The July jobs report that came out Monday morning (click here to read) puts the state’s unemployment rate at 6.5 percent, much lower than the 8.1 percent unemployment the state experienced a year ago, in July 2013.

The national unemployment rate is 6.2 percent.

July’s unemployment rate in North Carolina was an uptick from recent months, when the unemployment rate dipped as low as 6.2 percent in April.

North Carolina has seen its labor pool shrink steadily as it has emerged from the recession, and there were 19,848 fewer people receiving paychecks in July than there were in June.

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Dean BakerEarlier this week, we cross-posted a brief essay by one of the nation’s best economists, Dr. Dean Baker of the Center for Economic and Policy Research, in which he thoughtfully and professionally dissected and demolished the claims made by a Raleigh conservative think tanker in a Wall Street Journal piece. The think tanker’s central claim was that the state’s harshest-in-the-nation cuts to unemployment insurance had spurred all kinds of wonderful economic results in North Carolina.

Apparently not content to be put in his place just once, the think tanker posted a fairly snarky attempt at a response yesterday and today, with an almost audible virtual sigh, Baker took to his keypad (and the CEPR blog) to provide a few more lessons in basic economics. We’ve cross-posted his addendum below:

Addendum:

I see John Hood has replied to my post. Apparently he thinks that if we play games with the start and end dates we can say cutting benefits worked.

Okay, I don’t know what games they play in North Carolina, but let’s just remember what is at issue. The argument for cutting benefits was that if the state pushed people off unemployment insurance (UI) they would be motivated to get a job. We know that North Carolina pushed lots of people off UI. The question is whether there is any evidence this led more people to get jobs.

That gives us two numbers to focus on, Read More

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Dean BakerIn case you missed it, be sure to check out the latest from one of the nation’s sharpest economists, Dr. Dean Baker on the one-year anniversary of North Carolina’s harshest-in-the-nation cuts to unemployment insurance. In a post that originally appeared on the website of Baker’s Center for Economic and Policy Research, Baker specifically takes one of North Carolina’s right-wing think tank denizens to task for his recent column in the Wall Street Journal celebrating the cuts.

As Baker notes, the local pundit is simply and plainly wrong in his contention that the cuts are responsible for a job boom in the state — or that such a boom is even occurring: Read More

NC Budget and Tax Center

Last week, the folks at five thirty eight, a non-partisan website dedicated to statistically robust analyses of social, political and economic phenomena led by Nate Silver, released an analysis of claims that unemployment insurance cuts at the national level have been good for the country’s economy and jobless workers.

The claims sound eerily familiar to those in North Carolina of a Carolina Comeback. But similar to those claims, the folks at five thirty eight find these national claims to lack support from available evidence.

First from their findings specific to those who have lost unemployment benefits: “Of the roughly 1.3 million Americans whose benefits disappeared with the end of the program, only about a quarter had found jobs as of March, about the same success rate as when the program was still in effect; roughly another quarter had given up searching.”

Second, jobless workers, particularly the long-term unemployed, are not moving to employment. From the article: “Only about 10 percent of the long-term unemployed find jobs each month, a metric known as the job-finding rate. Among those unemployed six months or less, the finding rate is nearly 25 percent….”

Cutting off unemployment benefits have not delivered improved job prospects for the hundreds of thousands still seeking work across the country and in North Carolina. A different approach is needed.

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The lead editorial in this morning’s edition of Raleigh’s News & Observer tells it like it is with respect to the issue of unemployment insurance and North Carolina’s harshest-in-the-nation decision to cut off benefits to folks in need:

“It was one of the more shameful moments in the not-exactly-illustrious rule of Republicans in the General Assembly and the governor’s mansion. Last summer, GOP lawmakers cut state unemployment benefits knowing it would mean that jobless North Carolinians, many of them innocent victims of the Great Recession, would lose emergency federal benefits.

North Carolina was the only state to reduce unemployment benefits even though federal law required states to maintain benefit amounts to qualify for the extended federal payments. Gov. Pat McCrory and Republican lawmakers justified leaving thousands and thousands of families in the cold by saying that extended unemployment benefits discouraged people from going back to work. Read More