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

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.

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.