California Jobs September 2009: Shrinking

California continues to lose jobs.

The California Employment Development Department just released September numbers and California jobs declined by 39,300 during the month.  Unemployment was 12.2% for September, a slight improvement due to an upward revision of August to 12.3%

More unemployment is not a surprise considering all the problems the state has.  (See Why California is a Worst State for Jobs)

 

The Bureau of Labor Statisticsis is scheduled to release the nation’s September List of State Unemployment on Wednesday October 20.  August was bad news.  (See August 2009 Best and Worst States for Employment) California’s release on Friday is a preview of more state releases to come next week.

September should show more State Employment decreases as the September US Unemployment rate increased to 9.8% from 9.7%.

The LA Times ran a story California Job Losses Keep Climbing on Friday as well about the outlook for California Jobs.  Los Angeles County’s unemployment rate soared to 12.7% in September, upfrom 12.2% in August. Industries including leisure and hospitality,manufacturing and construction shed jobs over the month.  The Bay Area saw its unemployment rate decrease from August. The jobless rates in Napa County, at 8.7%,and the San Francisco-San Mateo-Redwood City Metro Division, at 9.2%,are among the lowest in the state. All five metro divisions in the Bay Area improved. California Jobs do not look like they will be improving significantly soon.  See also California Job Openings September 2009

The September 2009 California Employment by County List follows:

County Labor Force Employed Jobless Jobless %
ALAMEDA 768,700 681,500 87,200 11.30%
ALPINE 420 350 60 15.20%
AMADOR 17,960 15,790 2,170 12.10%
BUTTE 105,400 92,600 12,800 12.20%
CALAVERAS 21,000 18,000 3,000 14.30%
COLUSA 11,160 9,540 1,620 14.50%
CONTRA COSTA 529,900 470,400 59,400 11.20%
DEL NORTE 11,870 10,460 1,410 11.90%
EL DORADO 91,200 81,000 10,200 11.20%
FRESNO 452,200 388,600 63,500 14.10%
GLENN 12,590 10,860 1,730 13.80%
HUMBOLDT 60,000 53,800 6,200 10.30%
IMPERIAL 76,900 53,700 23,200 30.10%
INYO 8,980 8,120 860 9.50%
KERN 377,400 325,100 52,300 13.90%
KINGS 59,700 51,400 8,300 13.90%
LAKE 25,890 22,080 3,800 14.70%
LASSEN 13,510 11,910 1,600 11.80%
LOS ANGELES 4,923,800 4,298,200 625,700 12.70%
MADERA 70,400 61,700 8,700 12.30%
MARIN 134,600 123,900 10,700 8.00%
MARIPOSA 9,980 9,100 880 8.80%
MENDOCINO 43,420 39,040 4,390 10.10%
MERCED 106,700 89,900 16,700 15.70%
MODOC 4,050 3,600 450 11.10%
MONO 7,880 7,070 810 10.30%
MONTEREY 217,000 195,400 21,700 10.00%
NAPA 75,600 69,100 6,500 8.70%
NEVADA 49,730 44,290 5,440 10.90%
ORANGE 1,624,900 1,472,400 152,500 9.40%
PLACER 175,100 155,300 19,800 11.30%
PLUMAS 10,210 8,790 1,420 13.90%
RIVERSIDE 915,600 780,800 134,800 14.70%
SACRAMENTO 687,900 604,200 83,700 12.20%
SAN BENITO 24,800 21,700 3,100 12.50%
SAN BERNARDINO 867,500 749,700 117,800 13.60%
SAN DIEGO 1,560,000 1,400,200 159,800 10.20%
SAN FRANCISCO 447,100 403,700 43,400 9.70%
SAN JOAQUIN 304,600 257,400 47,100 15.50%
SAN LUIS OBISPO 138,400 125,900 12,500 9.00%
SAN MATEO 380,800 346,400 34,400 9.00%
SANTA BARBARA 221,600 202,700 18,800 8.50%
SANTA CLARA 886,600 782,200 104,400 11.80%
SANTA CRUZ 147,900 132,800 15,100 10.20%
SHASTA 84,000 71,600 12,300 14.70%
SIERRA 1,540 1,330 210 13.70%
SISKIYOU 18,870 16,320 2,550 13.50%
SOLANO 214,400 189,700 24,700 11.50%
SONOMA 262,400 236,400 26,000 9.90%
STANISLAUS 243,200 206,000 37,200 15.30%
SUTTER 41,600 35,300 6,300 15.10%
TEHAMA 26,220 22,630 3,590 13.70%
TRINITY 4,700 3,950 750 15.90%
TULARE 206,300 175,600 30,700 14.90%
TUOLUMNE 25,900 22,610 3,300 12.70%
VENTURA 428,800 381,600 47,200 11.00%
YOLO 97,500 86,900 10,600 10.90%
YUBA 28,800 23,700 5,100 17.80%

Best States for Jobs September 2009, 48 States See Opening Decreases

We ran our September 2009 Best and Worst States for Job openings.  Job Openings dropped an alarming 6.2% on September 30 as compared to July 31.  This is particularly discouraging as we had seen our only increase in job openings this year in July.  This reversal ratifies the year long downward trend.  We develop our analysis from data listed by the nation’s largest job posting service CareerBuilder.com.  It is a good proxy for job openings nationwide.

Job Openings nationwide shrank in September to 217,040 from 231,370 in July, a drop of 14,330 job openings.

48 States saw jobs shrink.  Alaska, North Dakota, South Dakota and Montana saw the biggest percentage job opening lossesKentucky Jobs, with an increase of only 180 job openings. and Utah Jobs, up 30, were the Top States for Jobs and the only 2 states in the nation that showed improvement since July 31.

California Jobs shrank the most numerically with an 1197 loss at September 30. Texas Jobs, Florida Jobs and Pennsylvania Jobs showed large losses in numbers in September.  ( I will post analysis of Job Opening Losses during the Obama Administration after unemployment numbers are released for September)

The list of Best and Worst States for Jobs as of September 2009 follows:

30-Sep 31-Jul +/- % Change
1 California 22253 23450 -1197 -5.10%
2 Texas 18219 19373 -1154 -5.96%
3 Florida 14072 14927 -855 -5.73%
4 New York 12410 12667 -257 -2.03%
5 Illinois 11243 11747 -504 -4.29%
6 Pennsylvania 10407 11193 -786 -7.02%
7 New Jersey 7901 7938 -37 -0.47%
8 Ohio 8171 8286 -115 -1.39%
9 Virginia 7162 7547 -385 -5.10%
10 North Carolina 6486 6860 -374 -5.45%
11 Maryland 5928 6128 -200 -3.26%
12 Georgia 5824 6470 -646 -9.98%
13 Arizona 5357 5701 -344 -6.03%
14 Massachusetts 5261 5269 -8 -0.15%
15 Michigan 5177 5443 -266 -4.89%
16 Washington 4407 4940 -533 -10.79%
17 Indiana 5282 5589 -307 -5.49%
18 Missouri 4518 5109 -591 -11.57%
19 Colorado 3815 3937 -122 -3.10%
20 Tennessee 4627 4862 -235 -4.83%
21 Connecticut 3893 4271 -378 -8.85%
22 Wisconsin 3855 4816 -961 -19.95%
23 Minnesota 3494 3754 -260 -6.93%
24 South Carolina 3239 3470 -231 -6.66%
25 Kansas 2816 3281 -465 -14.17%
26 Louisiana 2898 3067 -169 -5.51%
27 Kentucky 3468 3285 183 5.57%
28 Iowa 2268 2460 -192 -7.80%
29 Alabama 2352 2883 -531 -18.42%
30 Oklahoma 2115 2339 -224 -9.58%
31 Nevada 1718 1864 -146 -7.83%
32 Oregon 1808 1986 -178 -8.96%
33 Mississippi 1475 1684 -209 -12.41%
34 New Mexico 1435 1468 -33 -2.25%
35 Utah 1370 1340 30 2.24%
36 Arkansas 1292 1557 -265 -17.02%
37 Nebraska 1135 1139 -4 -0.35%
38 Delaware 996 1030 -34 -3.30%
39 Alaska 659 1058 -399 -37.71%
40 Hawaii 668 748 -80 -10.70%
41 West Virginia 832 914 -82 -8.97%
42 New Hampshire 671 705 -34 -4.82%
43 Rhode Island 633 722 -89 -12.33%
44 South Dakota 497 664 -167 -25.15%
45 Idaho 741 813 -72 -8.86%
46 Vermont 600 608 -8 -1.32%
47 North Dakota 299 465 -166 -35.70%
48 Maine 509 539 -30 -5.57%
49 Montana 458 585 -127 -21.71%
50 Wyoming 326 419 -93 -22.20%
Entire U.S. 217040 231370 -14330 -6.19%

Will California’s Tax Proposal do any good?

California has always had a wild streak.  This week California’s new tax proposal reinforced that image.

The Commission on the New 21st Century Economy  issued its report this week on a radical new tax structure for California.  Like all political taxing plans it has its good and bad aspects.  It did, however, increase discussion about what California needs to do to become an attractive state for business and individuals.

Here are the recommendations of the Commission: (My comments are in red)

  • Reduce Personal Income Tax (PIT) for every taxpayer – Reduce the number of tax brackets from six to two. The new tax rate would be 2.75 percent for taxable income up to $56,000 for joint filers ($28,000 for single) and 6.5 percent for taxable income above that amount. These changes would retain the PIT’s progressive nature but reduce income tax rates for all taxpayers. The proposal would reduce the amount of income tax paid by 29 percent.  (This is Good)
  •  Eliminate the corporation tax and minimum tax – Eliminate the corporate tax, which is currently at 8.84 percent. The $800 minimum franchise tax should also be eliminated. (This is Good)
  •  Eliminate the state general purpose sales tax – Eliminate the current 5 percent state sales tax, with the exception of the sales tax on gas and diesel fuels which would continue to be dedicated to transportation. Elimination of the sales tax would phase in over five years. (This is Good)
  • Establish a business net receipts tax (BNRT) – Establish a new tax, not to exceed 4 percent, applied to the net receipts of businesses. Small businesses with less than $500,000 in gross annual receipts would be exempt from this tax. This tax would have a much broader base than the sales tax (since it would apply not only to goods but also to services and to sales into the state from businesses located outside the state) and, unlike the sales tax, be deductible against federal taxes. (This is very very Bad)
  •  Create an independent tax dispute forum – This forum would provide taxpayers with a forum for resolving disputes with the state. (This is Good)

I have discussed previously why California is a Worst State.  It over taxes, over regulates and is costly do business there.  See our previous post California Facts Suggest it is a Worst State

This proposal does not appear to fix these problems.  It just shuffles the burdens around a little by being according to the Commission “revenue neutral.”

“This is the most significant tax policy proposal in three decades,” said Assemblyman Chuck Devore (R-Irvine). “But the chances of this getting approved, as is, are zero percent.”  The LA Times reported the proposal is unlikely to pass.  See LA Times story Tax commission report falls flat, but it’s a start

With the U.S. in the midst of a severe job shrinkage, it is only a matter of time that some states and legislatures start getting serious about creating an environment conducive to job creation.  Cutting tax burdens and tax rates will be a strong first step in getting the job engine going.  California’s proposal unfortunately is not a step in the right direction. It will remain a Worst State for Taxes even if it passes the Commission’s recommendations.

Where to Find a Job? Best States for Jobs

The Bureau of Labor Statistics released the July State unemployment numbers this past week.  More ugly in most states.

The Best States for Jobs are primarily heartland states.  The Best State for Jobs is North Dakota with an unemployment rate of only 4.2%.  Nebraska and South Dakota at 4.9% are the only other states under 5%.  Utah is our fourth Best State for Jobs at 6%.  You will have a decent chance to find a job in Iowa, Oklahoma, Wyoming and Montana.

If you are looking for a job in a state with very high unemployment, you might want to consider a state where the opportunities are broader and fewer people looking.  In other words, consider changing your state.  Michigan at 15.2% is the Worst State for Jobs. Approximately  1 in every 6 people are unemployed.  Rhode Island, Nevada, Oregon and California are some of the Worst States for Jobs with rates all close to 12%.

High unemployment also creates a reinforcing negative cycle.  Unemployment creates downward pressure on real estate, commerce and social institutions.   It does not turn around quickly.  While unemployment is one very important metric in your search for employment, job openings i.e. who is hiring now? should also be considered.  For recent info on job openings by state see Best States for Job Openings

 

July U.S. State Unemployment List

 

1 NORTH DAKOTA 4.2
2 NEBRASKA 4.9
2 SOUTH DAKOTA 4.9
4 UTAH 6
5 IOWA 6.5
5 OKLAHOMA 6.5
5 WYOMING 6.5
8 MONTANA 6.7
9 NEW HAMPSHIRE 6.8
9 VERMONT 6.8
11 VIRGINIA 6.9
12 HAWAII 7
12 NEW MEXICO 7
14 MARYLAND 7.3
15 ARKANSAS 7.4
15 KANSAS 7.4
15 LOUISIANA 7.4
18 COLORADO 7.8
18 CONNECTICUT 7.8
20 TEXAS 7.9
21 MINNESOTA 8.1
22 DELAWARE 8.2
23 ALASKA 8.3
24 MAINE 8.4
25 PENNSYLVANIA 8.5
26 NEW YORK 8.6
27 IDAHO 8.8
27 MASSACHUSETTS 8.8
29 WEST VIRGINIA 9
29 WISCONSIN 9
31 WASHINGTON 9.1
32 ARIZONA 9.2
33 MISSOURI 9.3
33 NEW JERSEY 9.3
35 MISSISSIPPI 9.7
36 ALABAMA 10.2
37 GEORGIA 10.3
38 ILLINOIS 10.4
39 DISTRICT OF COLUMBIA 10.6
39 INDIANA 10.6
41 FLORIDA 10.7
41 TENNESSEE 10.7
43 KENTUCKY 11
43 NORTH CAROLINA 11
45 OHIO 11.2
46 SOUTH CAROLINA 11.8
47 CALIFORNIA 11.9
47 OREGON 11.9
49 NEVADA 12.5
50 RHODE ISLAND 12.7
51 MICHIGAN 15

50 States 50 Laboratories, More on the Best and Worst States

We found the recent Economist article, California vs Texas: America’s Future  a positive contribution to the debate on Best and Worst States.

The article points out the marked differences between states and helpsmake the case that the lower tax, less government intrusion model of Texas is winning over California.  This is a case we have long advocated. The Economist also notes the work that this writer has developed overthe last 5 years on Chief Executive’s Best and Worst States for Business.  (Texas is #1 and California is #50 according to CEOs.)

We also would like to make note of a recent blog written by Kurt Brouer titled California or Texas: Which Model is Working Best?  Kurt’s Fundmasteryblog.com is getting it right by making the low tax, more personal freedom case.

With all 50 state governments under severe fiscal pressure, it is only a matter of time that the next phase of recovery will be focused on growth.  You can not spend your way out of a problem.  The severity of this budget crisis may lead finally to a rethinking of attitudes towards business. My list of states that need major rethinking would start with the 10 most broke states.  They are:

1. California: $53.7 billion shortfall or 58 percent of its budget
2. Arizona: $4 billion shortfall or 41 percent of its budget
3. Nevada: $1.2 billion or 38 percent of its budget
4. Illinois: $9.2 billion or 33 percent of its budget
5. New York: $17.9 billion or 32 percent of its budget
6. Alaska: $1.35 billion shortfall or 30 percent of its budget
7. New Jersey: $8.8 billion or 30 percent of its budget
8. Oregon: $4.2 billion or 29 percent of its budget
9. Vermont: $278 million or 25 percent of its budget
10.  Washington: $3.6 billion or 23 percent of its budget
10.  Connecticut: $4.1 billion or 23 percent of its budget

Source:  ABC News

The Top Ten Broke States tend to have the most taxation and most are run by liberal oriented governments.

All 50 states will be politically pressured to increase opportunities and jobs for their populations in the coming years.  Being attractive to business will be the obvious choice.  The wonders of our American system are our many state laboratories.  High Tax States, Low Tax States, Business Friendly States and Business Unfriendly States.  Those states early to adopt policies that encourage business will recover and grow faster than those who are slow.  We are glad to see more publications like The Economist contributing to the debate.  Hopefully we will start to see more low tax, business friendly policy changes in our many laboratories get enacted.

Schwarzenegger “California Best State.” Facts Don’t Support Claim

Governor Schwarzenegger put the Best and Worst States debate in the news during a July 3 San Francisco news conference.  See Sacramento Bee.com

California regularly shows up as one of the Worst States in the union based on many important indicators.  Yet the Governor recently attempted to make a case for California being the best! He did not make a very persuasive case.  He claimed a diversified economy should be the benchmark to judge a best state.

Gov. Schwarzenegger said, “We are the best place simply because of we are a diversified economy,”

“What state has entertainment, music, agriculture, biotechnology, nanotechnology, green technology, high technology?”

We strongly disagreeCalifornia regularly ranks as one of the Worst States.

Here are just a few of the facts and measurements:

California has the Worst Credit rating of all 50 states in the country.  It has no money and is currently issuing iou’s.

California is rated 47th, a Worst State for Entrepreneurship and Small Businees, according to the Small Business and     Entrepreneurship Council.  CEO’s have ranked it the Worst State for 5 years in a row according to Chief Executive Magazine.

It is rated 49th, for  Best and Worst States for Individual Income Taxes according to the Tax Foundation.

California has the 2nd highest marginal income tax rate in the nation at 10.3%.  Only Hawaii is higher.

According to Missouri Economy.org  California is the 2nd highest cost of living state in the country, behind only Hawaii.

California has the highest gas tax in the nation. See Best and Worst States for Gasoline Taxes.

California has the most unemployed people in the nation and has the 5th highest unemployment rate in the nation with 11.5% of     its population unemployed.

California has the most job red tape and licensing requirements of any state in the nation according www.reason.org with a nation     leading 177 job license requirements.

California has the 3rd most political convictions in the nation according to the Report to Congress on the Activities and Operations of     the Public Integrity Section.

Governor how can you say California is the best?

“Look at other states. … Texas? Oil. Florida? Old people. Whatever,” he said. “We have a whole bunch of things.”

Taking shots at Texas and Florida was also uncalled for and does not make the case for California.  These states rank far better than California regularly and are considered as top states for growing business. Both states’ populations enjoy zero personal income taxes.  Gov. Schwarzenegger should focus on California and not bash other states that are in far better position than his.

“California is doing very well,” he said. “We just have to get out of this crisis.”

We are all for Governors being salespeople for their states.  In this case Gov. Schwarzenegger telling the world that California is the best is just not believable.  The facts suggest otherwise.  Look in other states if you are thinking of relocating.


Career Builder Openings Continue to Alarmingly Shrink, No Improvement in Big States

With the U.S. unemployment rate now at the 25 year high of 9.4%, some in the media have suggested it is good news that the rate of job loss is slowing.  While there may be a glitter of hope in the lower number of job loss filings, the fact is job openings must improve in order to start absorbing the unemployed.  The question is when will corporations start hiring more and where.  The U.S. unemployment rate will not improve until job openings increase.

We have reported that job openings fell dramatically from January 2009 to March 14, 2009(See:  Job Openings Drop Nationwide in first 45 Days of Obama).  Job openings continued to drop but at a slower rate.

Best and Worst States analysis shows that job openings on careerbuilder.com have dropped 10.6% from Jan 29 to May 31 2009. Job openings less than 30 days old decreased to 210,048 as of May 31, 2009 from 235,059 as of January 29, 2009.  More importantly, job openings dropped further since March 14, 2009 when we last reported.  Job losses dropped 1.4% from 213,077 to 210,048.  One might cheer at only a 1.4% loss in 45 days but if your portfolio declined about 1% per month you should consider this alarming.  We are still losing job openings at the alarming rate of 1%  per month.  This is not what recoveries are built upon.

More importantly, all 10 of the biggest states have seen job opening drops since January.  These 10 states represented 54% of all the open jobs on Career Builder in May.  These states have seen a drop in openings of 12.25% since January, larger than the country average.  Illinois was the Worst State for Job Openings with a decline of 20.4%.  California at 16.6% decline was the second Worst State for Job Openings. New York at minus 14.3%, New Jersey at minus 13.2% and Pennsylvania at minus 10.6% job opening loss round out the 5 Worst States for Job Openings.

8 States showed improvement in job openings since January.  These states showed small job increases.  The Best State for Job Opening Improvement was South Carolina.  Its job openings increased by only 237 or 7.6%.  Kentucky at 134 and Indiana at 133 were the only other states that saw job openings improve by greater than 100.

Here is the listing of Job Openings by State for May 31,2009 as compared to Jan 31, 2009.

May-31-09 29-Jan-09 %Since 1-29
1 California 21565 25855 -4290 -16.6%
2 Texas 17988 20051 -2063 -10.3%
3 Florida 14119 15174 -1055 -7.0%
4 New York 11189 13057 -1868 -14.3%
5 Illinois 10912 13702 -2790 -20.4%
6 Pennsylvania 9964 11141 -1177 -10.6%
7 New Jersey 7492 8628 -1136 -13.2%
8 Ohio 7554 8276 -722 -8.7%
9 Virginia 6822 7186 -364 -5.1%
10 North Carolina 6359 6803 -444 -6.5%
11 Maryland 5872 6552 -680 -10.4%
12 Georgia 5500 5992 -492 -8.2%
13 Arizona 5237 5992 -755 -12.6%
14 Massachusetts 4810 6168 -1358 -22.0%
15 Michigan 4906 5541 -635 -11.5%
16 Washington 4354 4914 -560 -11.4%
17 Indiana 4864 4731 133 2.8%
18 Missouri 4451 4458 -7 -0.2%
19 Colorado 3735 4214 -479 -11.4%
20 Tennessee 4321 4413 -92 -2.1%
21 Connecticut 3633 4531 -898 -19.8%
22 Wisconsin 3760 4314 -554 -12.8%
23 Minnesota 3257 4193 -936 -22.3%
24 South Carolina 3373 3136 237 7.6%
25 Kansas 3232 3236 -4 -0.1%
26 Louisiana 3082 3494 -412 -11.8%
27 Kentucky 2897 2763 134 4.8%
28 Iowa 2322 2499 -177 -7.1%
29 Alabama 2551 2567 -16 -0.6%
30 Oklahoma 2083 2269 -186 -8.2%
31 Nevada 1732 1865 -133 -7.1%
32 Oregon 1667 1832 -165 -9.0%
33 Mississippi 1535 1548 -13 -0.8%
34 New Mexico 1369 1423 -54 -3.8%
35 Utah 1123 1236 -113 -9.1%
36 Arkansas 1347 1414 -67 -4.7%
37 Nebraska 1016 1230 -214 -17.4%
38 Delaware 855 1057 -202 -19.1%
39 Alaska 826 805 21 2.6%
40 Hawaii 761 865 -104 -12.0%
41 West Virginia 757 856 -99 -11.6%
42 New Hampshir 592 694 -102 -14.7%
43 Rhode Island 591 707 -116 -16.4%
44 South Dakota 673 585 88 15.0%
45 Idaho 703 665 38 5.7%
46 Vermont 562 659 -97 -14.7%
47 North Dakota 466 438 28 6.4%
48 Maine 459 449 10 2.2%
49 Montana 455 508 -53 -10.4%
50 Wyoming 355 373 -18 -4.8%
Entire U.S. 210048 235059 -25011 -10.6%

Source:  Best and Worst States and CareerBuilder.com

Finally, the recent drop is all the more alarming as there has been a headwindof positive stimulus.  The U.S. American Recovery and Reinvestment Actwas signed into law on February 14, 2009 about one month prior to ourlast measurement.  March was also the bottom of the stock market dropwith a strong rally of 25.6% in the Dow from March to May.  Onewould expect improvement in view of the great wealth effect of thestock market and the government stimulus.  We will update more fully job changes since March when the stock market began to recover in an upcoming post.  Signs of encouragement for job openings are not yet strong.

Comment on “Soak the Rich, Lose the Rich”

My good friend Steven Moore along with Art Laffer wrote a great piece today in the Wall Street Journal titled Soak the Rich, Lose the Rich

Their piece reinforces the general messages of this site, namely that there are Best and Worst States in the U.S. to live, create wealth and grow a business.  The story makes a case for common sense state policies of low taxes and favorable business regulatory climate.  In the piece Moore and Laffer point out that the no income tax states have created “89% more jobs and had 32% faster personal income growth than their high-tax counterparts.”  In other words, successful people and businesses go to the more favorable tax and regulatory environments.

We have long advocated state governments to adopt  more business and citizen friendly policy.  Laffer and Moore bring this issue to the forefront today with their well-written piece.  I hope state governors and legislators also read it and take action.

For more on tax policy of states see our posts Best and Worst States for Individual Taxes

and Best and Worst States for Business

For those of you interested the nine no income tax states in the U.S. are  Texas, Nevada, New Hampshire, Florida, South Dakota, Wyoming, Washington, Alaska and Tennessee.  New Hampshire and Tennessee do tax interest and dividends however.

Are Business Friendly States Best for Jobs?

Editors Note:  If you are looking for a Best State for Jobs start your search with our latest posts:

 

Which States had the Best Employment Markets in 2009? Will 2010 Job Market Improve?

Best States for Job Openings September 2009

Best States for Job Openings and Where to find a Job

For the August 2009 list of Best States for Employment see Best and Worst States for Employment

Click on the category Best and Worst States for Jobs on the right navigation for our collection of articles on Jobs.

In our Job Openings post you will see the trends by state in job openings and what states are currently experiencing increased job openings.  We also have published the List of Job Openings by State

******Editor’s Note:  The rest of this post was published in April 2009 Go to  Best and Worst States   for our latest  *********************

The Bureau of Labor Statistics released the March State Unemployment rates this week.   For our August 2009 listing and analysis of Best States for Job Openings click

We now have 8 states with unemployment above 10%.  Michigan is the Worst State for Jobs with an unemployment rate of 12.6%. Oregon is also very bad for jobs with a rate of 12.1%.  California, our most populated state, has an unemployment of 11.2% meaning that 1 out of 9 people are out of work. South Carolina also is a Worst State for Jobs with unemployment of 11.4%.

The  Best State for Jobs in March was North Dakota at 4.2%.  The other Top 5 States for Jobs were Wyoming at 4.5%, Nebraska at 4.6%, South Dakota at 4.9%.  Iowa and Utah were tied for fifth with 5.2% unemployment.

We thought we would take a look this month also at how states that are ranked for small business are doing on the job front.  In theory the better the small business environment the better the job environment.  We used the recently released SBEC report.  See: Best and Worst States for Small Business

The data shows that the Best States for Small Business are not all the Best States for Jobs at this moment.  5 of the top 10 Best States for Small Business, for example, have below average i.e. higher, unemployment. 45th ranked Iowa for example has the 4th best employment in the U.S.

As mentioned in the previous post, the SBEC index is primarily a tax based system and high or lower taxes are not the only reason companies grow and create jobs.  It would appear intuitive over time business friendly states should create more business and jobs. We will continue to watch this during the cycle as the better states may grow first and faster.

           Small
Rank State %Unemp  Biz Rank
1 NORTH DAKOTA 4.2 36
2 WYOMING 4.5 3
3 NEBRASKA 4.6 40
4 SOUTH DAKOTA 4.9 1
5 IOWA 5.2 45
5 UTAH 5.2 24
7 LOUISIANA 5.8 26
8 NEW MEXICO 5.9 27
8 OKLAHOMA 5.9 15
10 KANSAS 6.1 33
10 MONTANA 6.1 31
12 NEW HAMPSHIRE 6.2 25
13 ARKANSAS 6.5 23
14 TEXAS 6.7 5
15 VIRGINIA 6.8 16
16 MARYLAND 6.9 35
16 WEST VIRGINIA 6.9 39
18 IDAHO 7 41
19 HAWAII 7.1 37
20 VERMONT 7.2 43
21 COLORADO 7.5 8
21 CONNECTICUT 7.5 30
23 DELAWARE 7.7 21
24 ARIZONA 7.8 17
24 MASSACHUSETTS 7.8 42
24 NEW YORK 7.8 46
24 PENNSYLVANIA 7.8 29
28 MAINE 8.1 48
29 MINNESOTA 8.2 49
30 NEW JERSEY 8.3 50
31 ALASKA 8.5 7
31 WISCONSIN 8.5 32
33 MISSOURI 8.7 14
34 ALABAMA 9 9
35 ILLINOIS 9.1 18
36 GEORGIA 9.2 19
36 WASHINGTON 9.2 4
38 MISSISSIPPI 9.4 12
39 TENNESSEE 9.6 13
40 FLORIDA 9.7 6
40 OHIO 9.7 10
42 DC 9.8 51
42 KENTUCKY 9.8 28
44 INDIANA 10 22
45 NEVADA 10.4 2
46 RHODE ISLAND 10.5 44
47 NORTH CAROLINA 10.8 38
48 CALIFORNIA 11.2 47
49 SOUTH CAROLINA 11.4 11
50 OREGON 12.1 34
51 MICHIGAN 12.6 20

Tax Freedom Day 2009: Pick Your State Carefully

The Tax Foundation recently released their 2009 Tax Freedom Day Study.  It measures how many days the average worker must work to  pay taxes. There is a wide disparity among states. The tax burden you bear can significantly impact your quality of life.

The Best State for Tax Freedom is Alaska where it takes 82 days almost 25% of the year just to pay taxes.  Louisiana, Mississippi, South Dakota, North Dakota and West Virginia are also rated Best States for Tax Freedom.  If you are not retired, these states would be considered as candidates for Best States to Work.

The Worst State for Tax Freedom is Connecticut where it takes 120 days or until April 30 to pay taxes.  If you live in Connecticut 1/3 of your time every year goes to pay taxes to the Federal, State and Local governments.  That is almost 50% more days than Alaska.  New Jersey, New York, California and Maryland are also rated Worst States for Tax Freedom.

According to the Tax Foundation study, five major categories of tax dominate the tax burden. Individual income taxes, both federal and state, require 38 days’ work. Payroll taxes take another 27 days’ work. Sales and excise taxes, mostly state and local, take 15 days to pay off. Corporate income taxes take 6 days, and property taxes take 12. Americans will log 4 more days to pay other miscellaneous taxes, most notably including motor vehicle license taxes and severance taxes, and about 1 day for estate taxes.

What state you live in is very important in determining your lifestyle as higher cost of living states tend to have higher tax burdens.  Lower disposable income is the result.  Many states are also increasing many taxes due to economic conditions which will increase tax burdens.  Noteworthy examples are the proposed increases in New York and California that will make these heavily burdened states more undesirable to live.  If you are not retired, New York and California would have to be considered as 2 of the Worst States to Work.

Tax
State Days Freedom Day
1 Alaska 82 23-Mar
2 Louisiana 87 28-Mar
3 Mississippi 87 28-Mar
4 South Dakota 88 29-Mar
5 North Dakota 91 1-Apr
6 West Virginia 91 1-Apr
7 Alabama 92 2-Apr
8 New Mexico 92 2-Apr
9 Montana 93 3-Apr
10 Kentucky 93 3-Apr
11 Oklahoma 94 4-Apr
12 Iowa 94 4-Apr
13 South Carolina 94 4-Apr
14 Arkansas 94 4-Apr
15 Tennessee 95 5-Apr
16 Wyoming 95 5-Apr
17 Missouri 96 6-Apr
18 Maine 96 6-Apr
19 Texas 96 6-Apr
20 Nebraska 98 8-Apr
21 Kansas 98 8-Apr
22 Nevada 98 8-Apr
23 Indiana 98 8-Apr
24 Florida 99 9-Apr
25 Oregon 99 9-Apr
26 North Carolina 99 9-Apr
27 Michigan 100 10-Apr
28 Arizona 100 10-Apr
29 New Hampshire 100 10-Apr
30 Ohio 101 11-Apr
31 Delaware 101 11-Apr
32 Vermont 102 12-Apr
33 Idaho 102 12-Apr
34 Georgia 102 12-Apr
35 Colorado 102 12-Apr
36 Illinois 103 13-Apr
37 Hawaii 103 13-Apr
38 Utah 103 13-Apr
39 Wisconsin 103 13-Apr
40 Pennsylvania 104 14-Apr
41 Rhode Island 104 14-Apr
42 Minnesota 105 15-Apr
43 Washington 106 16-Apr
44 Massachusetts 106 16-Apr
45 Virginia 106 16-Apr
46 Maryland 109 19-Apr
47 California 110 20-Apr
48 New York 115 25-Apr
49 New Jersey 119 29-Apr
50 Connecticut 120 30-Apr

Source: Tax Foundation, Tax Freedom Day

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