Job Openings by State May 2010: Up 7.6% Under Obama

We have updated the Best States for Job Openings.

Since January of 2009 when President Obama took office,  job openings by state as measured on Career Builder  have increased 7.6% to 252,884 from 235,059. The U.S. unemployment rate stood at 9.9% in May of 2010 and 15.3 million people were unemployed.  While the increase is encouraging, job openings must increase much more to make a dent in the high number of unemployed.

Thirty six states have seen increases in job openings under Obama while 14 states have seen decreases.

Of the ten largest states, 9 have shown increases in the number of job openings.  Of these large states, North Carolina  was the Best State for Job Openings on Careerbuilder.  Job openings have increased 17.0% in North Carolina since Obama became President.   Illinois was the only large state to show a decrease in job openings since January of 2009.  Its job openings decreased 4.5%.   California has the most job openings on Careerbuilder yet its unemployment at 12.6% is the second highest in the nation.

The list of best and worst states for job openings follows.  Interestingly, some of the states with low unemployment such as North Dakota, South Dakota, Wyoming and Vermont  have seen job openings shrink.

Best and Worst States for Job Openings 2010

Historic Shrink of Government? States May Have No Choice

Smaller government fans may be in for a historic period.  Due to severe budget crises, state governments throughout the U.S. are “cutting budgets” i.e. shrinking in size.  Lack of money is forcing legislators, regardless of party affiliation, to shrink government spending.  In many cases states can not just raise taxes and fees enough to close the gaps.


Georgia, for example, this week, announced its revenue had shrank for the 15th consecutive month.  Revenue for February 2010 is a whopping 41.3% below February 2007.  January was down 27.3% from 2007.  Georgia legislators are faced with figuring out how to run the state on less money.  They will be forced to shrink the size of government.

 

The Tax Foundation recently highlighted Georgia’s budgetary issues in two releases, “Recession Offers Georgia Opportunity for Tax Reform”  and Georgia Cigarette Tax Hike Would Spur Cross-Border, Black Market Sales

Georgia residents pay the 16th-highest state-local tax burden in the country according to the Tax Foundation.

“There’s just no way to put a pretty face on it,” Lt. Gov. Casey Cagle said in an interview with The Associated Press. “We’ve got to cut this budget and we have to live within our means.”  (Emphasis added)

Georgia Not Alone, All States are Cutting

Georgia is not alone in facing severe cuts.

John Thomasian of the National Governors Association Center for Best Practices outlined the environment and cuts facing state governments in his paper, The Big Reset: State Government after the Great Recession

He writes, “So how must state government adjust to meet the new challenges? Already governors are grappling with this issue. Almost every state has an internal process underway to examine how to cut costs, and several states have created formal task forces or commissions to look at cost- savings and streamlining. Most efforts start by exploring the traditional tools of budget cutting: targeted and across-the-board program cuts, reductions to local aid, layoffs, benefit cuts, furloughs, and salary reductions. In today’s environment, however, states quickly find that these options do not shift the cost curve sufficiently, and they must look at actions that change the way government does business.

Additional steps that are being considered or undertaken today include:

Selling state assets (such as surplus equipment and state office buildings);

Consolidating data centers and IT functions;

Coordinating purchases across agencies;

Consolidating state real estate management into one entity and conducting a review of
real estate holdings and leasing arrangement; and

Reorganizing and combining agencies.”

Profound Changes in State Government

Thomasian writes,  “The current fiscal crisis has spawned a new round of state performance reviews, many of which will yield profound changes in the services state government delivers. This period of government downsizing and streamlining may be a protracted one, ending only when state budget health is restored. The delicate balance will be maintaining those services that help the state prosper, while eliminating those that produce the least value.”  (Emphasis added)

The challenge is that most of our legislators are reluctant to cut government programs.  Segments of the voting community also want their favored programs protected.  We may see a historic shrinking of state government if our legislators and voters reset budgets as circumstances dictate.

Those in favor of smaller government will be tested and have an opportunity to influence this process.

This “reset” of state government will affect all areas of lifestyle including education, jobs and safety. The big question yet to be answered is:  “Will people be happier with a smaller state government that taxes less and provides less services?”

Check in Mail States Delay Tax Refunds

Some states may delay paying tax refunds again this year.  Taxpayers should call them the “Check In the Mail” States.

Last year Kansas, North Carolina, California and Missouri delayed tax refunds.  Taxpayers were not happy about it.  Tax refund delays are another sign of government mismanagement.  In response to last years fiasco, Missouri state house legislators this week passed a bill that if enacted will shorten the time period that the state can withhold payment without interest.  Missouri had to use stimulus money to pay its tax refunds.  See: Missouri State House Approves Quicker Refunds .

This year New York, Kansas, Iowa and Hawaii have already announced they may have to delay payments.  Taxpayers, who are entitled to refunds in these states, will unfortunately suffer.

Here are a few of the headlines and links to the state stories.

Hawaii will delay sending out tax refunds to balance budget

Hold It: Unpaid Parking tickets could delay Iowa tax refunds

NY Governor considers delays in paying tax refunds

Forbes recently published its “Special Report: The Global Debt Bomb.”  In one of its pieces,  United States of Debt , it ranks states according to financial health.  The metrics Forbes looked at for each state when building its ranking included unfunded pension liabilities, changes in tax revenue, credit agency ratings, debt as a percentage of Gross State Product, debt per capita, growth expectations for employment and the state economy, net migrations and a moocher ratio that compares government employees, pension burdens and Medicaid enrollees to private-sector employment.

The Worst States for Debt Trouble, according to Forbes, are Illinois, New York, Connecticut, California and New Jersey.

The States with the least Debt Problems are Utah, New Hampshire, Nebraska, Texas and Virginia.  All states have significantly lower debt per capita than the Worst States.  The Best States also have lower unemployment than the U.S. average of 9.7% and lower than the Worst States with Debt Problems.  The Best States for Jobs will typically have better government management of debt.

Forbes also ran an analysis that shows that the states with the Worst Debt and Financial Problems are blue states i.e. states controlled by Democrats.  The piece attributed political unions and big spending by Democrats as the cause of the deepest fiscal holes.
See Political Litmus Test: Bluest States Spilling The Most Red Ink

Becker Blocked: Blow to Unionism

Craig Becker’s nomination to the National Labor Relations Board was blocked by the Senate today.  The vote was 52-33.  Sixty votes were needed to pass his nomination.  This is a blow to the Obama administration and the union movement as Becker was considered very pro union.  Politico today reported that the battle may not be over as Democrats and union leaders will be pressing President Obama to make a recess appointment.  See Senate Stops Craig Becker

Objection to Becker also stems from the opposition to the Employee Free Choice Act which if enacted would make it easier for unions to organize. Many senators are also concerned about the possible elimination of secret personal voting.  If the Obama adminstration is committed to job growth, it might want to reconsider these positions.  We have recently written on this.  See Does Increased Unionism lead to more Unemployment?

Stay tuned the battle is not over.  Just stalled for now.

State Unionism Rankings: Do Highly Unionized States have Higher Unemployment?

Union employment in the U.S. continued to shrink this past year.  Nationwide union participation stands at 12.3% which is a slight decline from 2008.

The BLS 2009 Annual Union Affiliation by Statesurvey was recently published.  It has brought increased attention to the union movement. Union policy will further be in the spotlight this week as the Senate wrestles with the nomination of Craig Becker, a clearly pro-union candidate, to the National Labor Review Board.  See GOP’s Senate Gain Clouds Prospect of Obama’s Labor Board Nominee.  In view of this upcoming debate, we thought it would be helpful to take a deeper look at state unionization and employment.


Let’s take a look at state unionization.

New York is the most unionized state in the nation with 27.2% of its population working for a union.  More than 1 in four workers are represented by a union in New York.  Hawaii at 24.3% is the second most unionized state at 24.3%, followed by Alaska at 23.6%.  Washington, Michigan, and New Jersey are heavily unionized states with about 20% union participation rates.

The least unionized state is North Carolina at 4.4%.  Only one in 23 workers in North Carolina are represented by a union, a sharp difference as compared to New York.  Additional states with low union participation rates are Arkansas at 5.0%, Virginia at 5.4%, South Carolina at 5.4% and Georgia at 5.9%

Twenty seven states had decreased union participation in 2009 as compared with 2008.  States with low union participation rates generally became less so in 2009 and those states with union growth were primarily already highly unionized.  There are 22 states with right to work laws in the U.S.  Right to work laws generally do not require employees to pay fees or join a union even if voted in.

A look at union participation and unemployment shows states with high union participation rates are closely associated with higher unemployment.

The five Worst States for Employment in 2009 were Michigan, Rhode Island, Nevada, California and South Carolina.  All but South Carolina are highly unionized states.  The Worst States for Employment in 2009 generally were highly unionized states.

Worst States for Employment and Union Participation

 

 

The Best States for Employment in 2009 were North Dakota, South Dakota, Nebraska, Iowa, Oklahoma and Kansas. All but Iowa have unionparticipation rates below the U.S. average and would be classified asstates with low unionization.  If you are looking for a job, look at states with low unionization.  They tend to have less unemployment. See  Best and Worst States for Jobs: Will Jobs Improve in 2010 for the rankings of all states by employment.  The list of Best States for Employment and Union Participation follows:

Best States for Employment and Union Participation



The list of Unionism by State follows:

Unionism by State


Union membership has been in a long term decline since 1983 when BLS first started measuring it in a consistent way.  Union participation was 20.1% of the working population in 1983.  It is now approximately 40% lower at 12.3%.  For the first time in 2009, the majority of union members now work for the government and not for private, for profit entities.  These state workers are on average paid significantly more than private industry.  Making it easier for government workers to unionize will only push labor costs higher and cost the taxpayers more.  Political leaders should be trying to keep these costs in check. (The average federal worker’s pay is $71,206 as compared to $40,331 in the private sector and is growing above inflation rates) The Obama administration’s labor policy approach creates a conflict with its responsibilities to protect the taxpayer. Increased unionization will increase our cost of government.  If the Obama administration is serious about job creation and deficit control, it may want to reconsider this approach.  Unions and job creation generally do not have a positive correlation.  Watch the news this week as it relates to Craig Becker.  It will have implications for jobs and deficits.

One Year Of Obama and Stimulus: Job Openings down 5.48% , Unemployment Up to 10%

It has been one year since President Obama took office and announced a stimulus bill that was to improve jobs.  The data suggests that the job market continued to deteriorate this past year.  Unemployment is up to 10% from 7.4%.  Job Openings are down 5.48%

Job Openings, as measured on careerbuilder.com, have not improved from one year ago.  Nationwide, job openings at January 31, 2010 were 5.48% lower than January 29, 2009.  Total job openings stand at 222,189 as compared to 235,059 last year, a decrease of 12,870.  37 States have lower job openings as compared to last year.

 

 

Best and Worst States has been tracking Job Openings by State for the past year and has reported on movements.  For some of our previouslinks see November 2009, Job Stimulus Not Working  , Job Openings September 2009 and last year’s Best and Worst States for Job Openings January 2009.  While the drops early in the year have appeared to stabilize, the level of job openings is not robust enough to suggest significant improvements in employment soon.

The Best State for Job Openings is Indiana as measured by growth.  Indiana had the largest gain in job openings, 887, up 17.4% from a year ago. Best States for Jobs also were Kentucky, Ohio and TennesseeFlorida and Ohio were the best large states for job openings.  They were the only 2 states of the Top Ten Employment States to show increases in openings.  13 States had increases in job openings from a year ago.

The Worst State for Jobs was California.  It has 3,667 less job openings from a year ago, a decrease of 14.18%.  California also has the fourth worst employment rate in the nation.  Unemployment in California is now at 12.4%, up 3.7% from a year ago.  California is struggling on many fronts and an increasing jobless population will not help it turn around.  For more on California see California Jobs Shrinking

Additional Worst States for Jobs  are Texas, Illinois,Massachusetts and Arizona.  They each had large job opening losses and double digit declines in percentage terms.

Another measure of job openings, the Conference Board’s Help Wanted On-Line Data Series is also indicating year over year decreases in job openings. The Conference Board Data for 2009 annual average job openings stands at 3,357,000, 1.1million below the 4,481,000 annual average for 2008.  More importantly their average job opening number for 2009 is 2.4 million below the 2007 average job opening number.  These are not good numbers.  On an encouraging note,the Conference Board reported positive improvement in job openings in New York, Washington, Connecticut, Virginia, North Carolina, Georgia, Delaware and New Jersey.

All 50 states saw their unemployment rates increase in 2009.  See Unemployment by State 2009 for the entire 2009 list and unemployment changes from a year ago. Job openings must increase significantly nationwide if unemployment is to improve to acceptable levels. It is going to take some time for this to occur.

 

Job Openings by State January 2010

 

Largest State
California Continues to
Show Shrinking Job Openings


Texas Jobs Not Growing

Florida Shows Small Increase

Illinois Jobs Down 10.64%

37 States Have
Fewer Job Openings

2 of 10 Largest States
Show Small Increase

Indiana Best State for Job Opening Growth

Job Openings Do Not Suggest
Employment Improvements

Best and Worst States for Jobs: Will jobs improve in 2010?

The Bureau of Labor Statistics released state unemployment for December 2009 today.  Every state in the U.S. saw its unemployment rate rise in 2009.

The Best State for Jobs and Employment in 2009 was North Dakota.  It had the lowest unemployment rate in the nation at 4.4%.  Its unemployment rate increased by 1.1% in 2009.  South Dakota, Nebraska, Iowa, Oklahoma and Kansas were also Top States for Jobs and Employment.

The Worst State for Jobs and Employment in 2009 was Michigan.  Its unemployment ended the year at 14.6%, an increase of 4.4% in 2009.  21 states and D.C. saw their unemployment ranks increase by 3% or more in 2009.  2009 was a very bad year for those seeking employment.  Nevada, Rhode Island, South Carolina, California and D.C. all were Worst States for Jobs and Unemployment in 2009.  They all have unemployment rates of 12% or higher.

Minnesota and North Dakota had the smallest unemployment increases in 2009 with increases of only 0.8%. The Worst States for Unemployment Increases were West Virginia and Nevada which had increases of 4.6% in unemployment.  The list of Best and Worst States for Jobs and Employment is below.  It is presented from best to worst based on year over year changes.  Politically, these are very poor numbers for the Obama administration.  With the large health care bill off the table for now, let’s hope businesses will become a little more willing to hire in 2010.

Best and Worst States for Jobs

Source:  Bureau of Labor Statistics

Health Care Stopped!!! Jobs will be front and center.

The massive health care bill fiasco is over.  Speaker Nancy Pelosi today told the world “In its present form without any changes I don’t think it’s possible to pass the Senate bill in the House.”  Health care as sold by the Democrats is over.  She further commented on next steps with an insightful, “We’re not in a big rush.”

When we posted the results of the first poll showing Scott Brown in the lead  on January 10, the mainstream media still was not ready to get behind the idea of a possible Brown victory in Massachusetts.  It was not until mid-week when some more traditional polling organizations showed similar race tightness that the media explosion took off.  The Massachusetts vote became a national referendum on President Obama and his policies.

While the bill was unpopular with the majority of Americans and swept in Brown, it was also unpopular with many state legislatures and governors.  They viewed it as a major usurpation of states rights. More importantly,  it was filled with unfunded mandates that would put even more pressures on state’s budgets.  Look for the Democrats and Republicans now to quickly change the focus to jobs.  Let’s hope they do no more harm to a tepid recovery.

The Department of Labor reported an increase in jobless claims today.  The 4 week average of jobless claims for week ending January 16, 2010 was 448,250.  Last year the 4 week average was 526,500, a reduction of 78,250 from a year ago.  While there is talk of improvement in the jobs market, the data supporting such a claim is sketchy.  The 14.8% reduction in claims from a year ago, while positive, is still a very high number from historical perspectives.  It is associated with very poor labor environments.  With health care dead, businesses will have one less risk and expense wildcard to deal with.  It will be a while before the job engine gets going.

The BLS will publish year end state unemployment rates for 2009 tomorrow.  Check back for the list of Best States for Jobs in 2009.

Source:  Department of Labor 2010

Taxpayers Leave New York

The Empire Center for New York State Policy released a quality report on Empire State Exodus

The report provides enlightening data on the migration patterns in NY and its implications for policy makers.  It should concern NY policy makers.

We have regularly reported on the negative impact of high income taxes on creating a Best State. See New York Jobs: Will they come back?


According to the Empire Center report, New York experienced the nation’s largest loss of residents to other states—a net domestic migration outflow of over 1.5 million, or 8 percent of its population at the start of the decade.This follows a 1.7 million loss in the 1990’s.  Taxpayers are leaving New York.  High income taxpayers, in particular, are leaving.

The States that benefited from New York’s migration losses were Florida, New Jersey, Connecticut, North Carolina and Pennsylvania.  Florida gained over 314,000 taxpayers from NY representing a staggering $9.1 billion of tax base.  It has no state income tax.  New Jersey gained 167,067 taxpayers and $5.7 billion of tax base. North Carolina gained 82,169 and $1.85 billion. Connecticut gained 51,455 and $2.77 billion. Pennsylvania gained 88,961 and $1.52 billion.  New York has lost over $29 billion in tax base in the 2000’s alone.

Tax policy for states must be established with a view of what other options people have.  People have choices within the US as well as  other countries regarding where to live and be taxed.  People are voting with their feet in NY.  They prefer lower tax rates.  The chart below on New York Net Domestic Migration by Year is from the study.  New York has lost almost 1 million people in the 2000’s to other states.

New York politicians continue to raise taxes and are taxing a shrinking base.  See States are Raising taxes

New York State is in a negative cycle downward.  At some point it might look to draw more people in by lowering its rates.  Unfortunately until it does so, people will keep leaving. The entire listing of taxpayer migration by state to (from) New York is listed below courtesy of the Empire Center for New York State Policy.

Top States for Jobs September 2009

The Bureau of Labor Statistics BLS released the September 2009 List of State Unemployment last week.  23 States saw unemployment rise from August, 19 saw decreases and 8 were unchanged.  The US Unemployment rate for September 2009 was 9.8%.

New York was the Worst State for Jobs in September with a loss of 81,700 jobs.

 

Texas (-44,700), California (-39,300), Wisconsin(-21,700), and Michigan (-21,500) rounded out the 5 Worst States
for
Jobs in September. Michigan continues as the Worst State for Employment with a staggering 15.3%
unemployment rate.
Nevada, Alabama, Oregon and West Virginia are also in the 5 Worst States for Employment.
California is not far behind
as a worst state for jobs. See our post on California Jobs Shrinking


 


 
The Best State for Jobs in September 2009 was Indiana which gained 4,400 jobs. The Best State for Employment
was North Dakota with a 4.2% unemployment rate. Only 3 other states qualified as Best States for Jobs in September.
They were New Mexico (+3,700), Nevada (+2,700), and Utah (+2,500). Go to our lastest
September list of job openings by state
for more on where the job openingsAll states and the District of Columbia recorded statistically significant increases in their jobless rates on a year on year basis.
Michigan had the largest increase +6.4%.  Nevada, 6.0% and Alabama at 5.3% also had the highest increases in the U.S.
North Dakota had the smallest increase at +.9%.  The Year on Year change of Unemployment for all 50 States is below.

 

Rank State Sep-08 Sep-09 Change
1 NORTH DAKOTA 3.3 4.2 0.9
2 NEBRASKA 3.4 4.9 1.5
3 SOUTH DAKOTA 3.2 4.8 1.6
4 ALASKA 6.7 8.4 1.7
5 LOUISIANA 5.6 7.4 1.8
5 MISSISSIPPI 7.4 9.2 1.8
7 ARKANSAS 5.2 7.1 1.9
7 MINNESOTA 5.4 7.3 1.9
7 VERMONT 4.8 6.7 1.9
10 COLORADO 5 7 2
10 MONTANA 4.7 6.7 2
12 KANSAS 4.6 6.9 2.3
13 CONNECTICUT 6 8.4 2.4
14 IOWA 4.2 6.7 2.5
15 MARYLAND 4.6 7.2 2.6
15 VIRGINIA 4.1 6.7 2.6
17 OKLAHOMA 4 6.7 2.7
18 HAWAII 4.4 7.2 2.8
18 UTAH 3.4 6.2 2.8
20 MAINE 5.6 8.5 2.9
21 ARIZONA 6 9.1 3.1
21 DELAWARE 5.2 8.3 3.1
21 NEW YORK 5.8 8.9 3.1
21 TEXAS 5.1 8.2 3.1
25 MISSOURI 6.3 9.5 3.2
25 PENNSYLVANIA 5.6 8.8 3.2
27 NEW HAMPSHIRE 3.9 7.2 3.3
27 NEW MEXICO 4.4 7.7 3.3
27 OHIO 6.8 10.1 3.3
30 IDAHO 5.4 8.8 3.4
31 GEORGIA 6.6 10.1 3.5
31 INDIANA 6.1 9.6 3.5
33 TENNESSEE 6.9 10.5 3.6
33 WISCONSIN 4.7 8.3 3.6
33 WYOMING 3.2 6.8 3.6
36 MASSACHUSETTS 5.6 9.3 3.7
37 ILLINOIS 6.7 10.5 3.8
37 WASHINGTON 5.5 9.3 3.8
39 DC 7.4 11.4 4
39 KENTUCKY 6.9 10.9 4
39 NEW JERSEY 5.8 9.8 4
39 NORTH CAROLINA 6.8 10.8 4
43 SOUTH CAROLINA 7.5 11.6 4.1
44 FLORIDA 6.7 11 4.3
45 CALIFORNIA 7.8 12.2 4.4
46 RHODE ISLAND 8.5 13 4.5
47 WEST VIRGINIA 4.3 8.9 4.6
48 OREGON 6.8 11.5 4.7
49 ALABAMA 5.4 10.7 5.3
50 NEVADA 7.3 13.3 6
51 MICHIGAN 8.9 15.3 6.4