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?”

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

Job Stimulus Not Working: Best States for Jobs 2009

Job Openings continued their year long decline in November.

Only 3 States show job opening increases since January 29 at the beginning of the Obama Administration.  The Best States for Jobs are Indiana, Kentucky and Idaho as they are the only states that have more job openings than at the end of January.  Yet despite these increases, unemployment continues to rise.  Indiana’s unemployment rate has increased this year to 9.8% from 8.2% in January.  Kentucky has increased to 11.2% from 8.7%.  Idaho has seen its unemployment rate increase to 9.0% from 6.5% in January.  Job openings are not keeping up with job losses.

The Worst States for Jobs are many.  47 states have lower job openings posted on careerbuilder.com than in January.

California Jobs
have decreased the most since January with 4,764 fewer openings.  Texas has 3,138 fewer jobs and Illinois Jobs have also decreased by 2,742.

Nationwide,  job openings have dropped 13.01% since January.  There were 204,475 job openings on careerbuilder.com at the end of November 2009 as compared to 235,059 in January.  This is an important indicator for employment direction as job openings precede employment.  Employers are not creating enough new jobs to keep up with the pace of losses.  The US had 15.7 million unemployed people in October 2009 according to the Bureau of Labor Statistics.  Many more job openings must emerge to improve the unemployment rate.

The Wall Street Journal today also ran a piece on upcoming job cuts.  It sees cuts increasing in 2010 as stimulus money is running out on certain construction infrastructure jobs.  Nationwide construction industry unemployment is now a staggering 19.1% and looks to get worse.  See Job Cuts Loom as Stimulus Fades

The stimulus program is showing few signs of progress on the job front.  Expect rising unemployment over the coming months because job openings are weak and the short term bump from the stimulus fades.  Private sector jobs are the key for long term employment improvement.  The List of Job Openings by State follows.

Job Openings by State

State 11/30/09 1/29/09 +/- % Change
1 California 21,091 25,855 -4,764 -18.43%
2 Texas 16,913 20,051 -3,138 -15.65%
3 Florida 13,263 15,174 -1,911 -12.59%
4 New York 11,702 13,057 -1,355 -10.38%
5 Illinois 10,960 13,702 -2,742 -20.01%
6 Pennsylvania 10,222 11,141 -919 -8.25%
7 Ohio 7,694 8,276 -582 -7.03%
8 New Jersey 7,421 8,628 -1,207 -13.99%
9 Virginia 6,385 7,186 -801 -11.15%
10 North Carolina 6,370 6,803 -433 -6.36%
11 Georgia 5,600 5,992 -392 -6.54%
12 Maryland 5,474 6,552 -1,078 -16.45%
13 Michigan 5,419 5,541 -122 -2.20%
14 Massachusetts 5,208 6,168 -960 -15.56%
15 Indiana 5,143 4,731 412 8.71%
16 Arizona 5,014 5,992 -978 -16.32%
17 Tennessee 4,214 4,413 -199 -4.51%
18 Washington 4,187 4,914 -727 -14.79%
19 Missouri 4,154 4,458 -304 -6.82%
20 Connecticut 3,895 4,531 -636 -14.04%
21 Wisconsin 3,736 4,314 -578 -13.40%
22 Minnesota 3,487 4,193 -706 -16.84%
23 Colorado 3,485 4,214 -729 -17.30%
24 Kentucky 3,005 2,763 242 8.76%
25 South Carolina 2,946 3,136 -190 -6.06%
26 Kansas 2,669 3,236 -567 -17.52%
27 Louisiana 2,643 3,494 -851 -24.36%
28 Alabama 2,132 2,567 -435 -16.95%
29 Iowa 2,028 2,499 -471 -18.85%
30 Oregon 1,770 1,832 -62 -3.38%
31 Oklahoma 1,676 2,269 -593 -26.13%
32 Nevada 1,661 1,865 -204 -10.94%
33 Mississippi 1,357 1,548 -191 -12.34%
34 New Mexico 1,242 1,423 -181 -12.72%
35 Utah 1,141 1,236 -95 -7.69%
36 Arkansas 1,121 1,414 -293 -20.72%
37 Nebraska 981 1,230 -249 -20.24%
38 Delaware 889 1,057 -168 -15.89%
39 West Virginia 754 856 -102 -11.92%
40 Idaho 739 665 74 11.13%
41 Hawaii 656 865 -209 -24.16%
42 New Hampshire 593 694 -101 -14.55%
43 Rhode Island 593 707 -114 -16.12%
44 Alaska 509 805 -296 -36.77%
45 Vermont 499 659 -160 -24.28%
46 South Dakota 452 585 -133 -22.74%
47 Maine 424 449 -25 -5.57%
48 Montana 392 508 -116 -22.83%
49 Wyoming 286 373 -87 -23.32%
50 North Dakota 280 438 -158 -36.07%
Entire U.S. 204,475 235,059 -30,584 -13.01%
Source: Careerbuilder.com

States running out of Jobless Money, Taxing Employers More

23 States are now borrowing from the U.S. Government to pay for unemployment benefits. (California has borrowed  $4.5 billion as of mid October 2009, the most in the nation.)

This is only the beginning of the bad news for states and employers.  States will be borrowing more and taxing employers more in 2010. This will impact the willingness of companies to hire in the future.  This is not good news for the job market.

For example, Florida, which has borrowed $465 million as of mid October, this past week increased its unemployment insurance tax on employers for next year quite substantially.  The minimum tax will jump from $8.40 per employee to $100.30 – analmost 12-fold increase – while the maximum will go up from $378 peremployee to $459.  Florida is facing a multitude of issues as it tries to dig itself out of the faltering economy.  The Sun-Sentinel did a great piece this week highlighting how Florida is losing residents, jobs and borrowing $300 million per month to make unemployment payments.  See Shrinking Florida faces tough choices as residents flee, jobs vanish

Arizona is among 33 states that will increase unemployment compensationtaxes next year, according the National Association of State WorkforceAgencies.  See  State tax push makes U.S. firms wary of adding jobs

Arizona recently asked to borrow $600 million in federal funds to keep its jobless payments going.  With its October 2009 unemployment rate of 9.3% Arizona will be needing to raise taxes on employers as well.  It is currently estimated that Arizona will increase its tax 41.8% on employers in January 2010.  See Arizona jobless funds running out

Most states will announce their unemployment tax rates for 2010 before year end and taxes will be increasing.  This is bad news for employers and the outlook for jobs. The Heritage Foundation’s Foundry blog recently posted a good explanation on how these increases will further hurt the job market.  See How Unemployment Taxes and Obama’s Stimulus Are Killing Jobs

The List of States Borrowing To Pay Unemployment Benefits follows.  We added Arizona to the BLS list that was compiled as of October 19, 2009.

Rank State Fed Loan
1 California $4.5 billion
2 Michigan $2.8 billion
3 New York $1.6 billion
4 Ohio $1.4 billion
5 North Carolina $1.3 billion
6 Pennsylvania $1.3 billion
7 Indiana $1.3 billion
8 New Jersey $700 million
9 Texas $697 million
10 Wisconsin $684 million
11 Arizona $600 million
12 Illinois $590 million
13 South Carolina $570 million
14 Kentucky $469 million
15 Florida $465 million
16 Missouri $326 million
17 South Dakota $308 million
18 Minnesota $143 million
19 Arkansas $135 million
20 Rhode Island $104 million
21 Idaho $73 million
22 Alabama $47 million
23 Connecticut $31 million

Source:Bureau of Labor Statistics

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
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

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%

NY Jobs: Where are they? Will they come back?

The New York State Labor department today released its August 2009 NY Job numbersNY Jobs are scarce and NY Unemployment reached its highest level since May 1993.  Statewide unemployment reached 9.0% up from 5.7% a year ago.

New York City Unemployment is more of a problem for the New York.  NYC Unemployment reached 10.3% in August up from 6% a year ago.  September will be worse as September nationwide unemployment has already been reported and has increased again. This is a real problem for the NY State government since the NYC market is the real engine for tax revenues.  With a huge deficit the state needs a vibrant NYC job market.

The chart from the NYSLD follows:

Unemployment Rates* (seasonally adjusted)

August 2009* July 2009 August 2008
New York State 9.0 8.6 5.7
United States 9.7 9.4 6.2
New York City 10.3 9.5 5.9
NYS, excluding NYC 8.0 7.9 5.5
*Data are preliminary and subject to change.

We have reported for some time the issues in NY and they appear to be getting worse.  New York is now a Worst State for Jobs.

Employers look at many factors when creating jobs.  Cost of living, taxation, regulatory environment are just a few.

NY and particularly NYC has one of the highest cost of livings in the country.  See our previous Cost of Living by State

NYC has one of  highest marginal tax rates in the nation.  (See Tax Freedom Day by State  and State Individual Tax Rates )

The NY State Government is raising taxes in all types of areas and increasing regulatory costs for businesses. See States Raising Taxes

These facts suggest NY will have a tough job market for the foreseeable future.  If you are looking for a job, NY will suffer for a while.  See how NY Job Openings rank nationwide at Best States for Job Openings

What will its state leaders do to make it more competitive?  High Cost, High Taxes and Lots of Regulation does not attract new business or jobs.  How can state leaders say NY is a business friendly state? Comments?