Dan Sutter: Why are Americans avoiding work?
Inflation is currently America’s most pressing economic concern, but I believe that our disappearing workers pose a greater long-term challenge. Almost four million fewer Americans are working now than in February 2020 despite record job openings. Yet, the decline in work participation predates COVID-19 and is explored in a new Congressional Joint Economic Committee (JEC) report, “Reconnecting Americans to the Benefits of Work.” The starkest decline has been among men between the ages of 25 and 54. In 1955, nearly 98 percent of prime working-age men were employed or seeking work; by 2020, this stood at 88 percent. These age ranges should exclude impacts from increased college attendance or earlier retirement. As the report notes, this “represents a tremendous loss of economic potential.” The reasons for the decline matter because we may not have a problem here. If the AWOL men want to be homemakers or retire early, not working makes them better off. Statistics show, however, that only about 15 percent of disconnected men fit these categories. Economists explain market activity using supply and demand. We can distinguish then demand and supply side explanations for work disconnection. Employers are the demanders of labor, so demand factors include declining wages, the elimination of jobs through automation and international trade, and an education and skills mismatch. With a demand problem, businesses no longer want to hire the men who have dropped out. Although demand side explanations have received much attention, the JEC argues that they are not the main drivers. Wages adjusted for inflation were higher in 2019 than in 1973. Wages fell between 1973 and 1994, but the work exodus has continued with rising real wages. Jobs have been lost due to automation and trade, but other jobs have been created as a result. Jobs with better pay and benefits than fifty years ago still exist for lower-skilled workers. The disconnected men offer evidence against demand side explanations: “Three out of four disconnected men say they do not want a job.” Work participation declines have been concentrated among the less well educated (especially those with no high school degree), the native-born as opposed to immigrants, and individuals on disability (the SSI and SSDI programs). The formerly incarcerated account for about one-third of disconnected men. I fully support imprisoning persons for criminal acts, but not every felony should result in a life sentence. Gainful employment enormously affects recidivism, the likelihood of former prisoners committing additional crimes. Failing to employ ex-cons costs society their productive labor and the ensuing crime. The JEC blames government programs for disconnecting Americans from work. Policies create two impediments: artificial barriers to people working legally and public assistance, making work less attractive. The enormous work disincentives of safety net programs are well documented. Decreased assistance reduces take-home pay, just like high-income tax rates. The marginal tax rate, the amount of tax paid on the next $1,000 one earns, affects decisions to work more hours or pursue a raise. The top federal income tax rate is currently 37 percent; the effective tax rate for low-income Americans can exceed 100 percent. The report details legal and regulatory barriers to work. Occupational licensing and zoning receive particular attention. Licensing sets minimum criteria for people to work in a profession. Acquiring costly training or a college degree burdens low-income Americans. Zoning frequently restricts home-based businesses, which comprise a majority of all businesses with no employees. Perhaps the report’s most powerful takeaway concerns the many benefits of work. Work is the best anti-poverty program. Few workers make the minimum wage for long because businesses will train and promote dependable, reliable employees. Work has psychological benefits, like earned accomplishment, a sense of control over life, and greater happiness; not working produces depression. Working men have more social connections and are more eligible marriage partners. America’s AWOL workers should concern us all. We do not understand all the forces involved, but I think the government should do no harm here. Given the economic and psychological value of work, politicians who care about well-being should eliminate government-created barriers to work. Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
Alabama ends 2019 maintaining record low unemployment rate
Alabama’s ended 2019 maintaining the lowest unemployment rate ever recorded in the state— 2.7%, the Department of Labor announced Friday. “I’m so proud to be able to close out this decade with record-breaking economic measures,” said Governor Kay Ivey. “All year long, we’ve had good news to share, and to be able to end the year, and the decade, on such a positive note is wonderful. Earlier this year, Alabama had never reported an unemployment rate lower than 3.0%, and now we’ve had one for the last three months! Nearly 84,000 more people have jobs now than last year. I’m excited about the path that Alabama is on, and the positive impacts this news has on our people.” December’s rate represents 2,204,740 employed Alabamians. “For the eleventh month in a row, our job growth has met or surpassed the nation’s,” added Alabama Department of Labor Secretary Fitzgerald Washington. “We’ve gained over 46,000 jobs since last December, and we continue to see employers posting job ads. Washington continued, “Average weekly wages showed significant growth this month, registering at an all-time high. Additionally, we saw many sectors and subsectors reach all-time wage highs, including manufacturing, with a monthly wage increase of $25.57, and financial activities, with a monthly wage increase of $50.78.” Unemployment rate by county:
Unemployment rate down to record 2.7 percent
Alabama’s unemployment rate is down to a record-low 2.7 percent, the state said Friday. A statement from Gov. Kay Ivey’s office said the seasonally adjusted jobless rate for November was one-tenth of a percent better than the October rate of 2.8 percent. It was also well below the national unemployment rate of 3.5 percent. November was the seventh straight month for the state to reach a record low for unemployment. The rate represented 2.2 million people who were employed compared to about 62,000 who were unemployed. The state’s economy has gained more than 50,000 jobs since this time last year, the statement said. Wages also increased, with average weekly earnings in November at $863.11, up $1.06 from October. The November number was an increase of $21.56 from November 2018. About 1.7 million people are working in service industries, and manufacturing employment rose to 273,700. “Manufacturing employment in Alabama is at its highest level in 11 years,” Labor Secretary Fitzgerald Washington said in the statement. “Other sectors are currently experiencing their highest levels of employment in history. Employers are hiring, and people are finding work.” Shelby County in metro Birmingham had the lowest jobless rate at 1.8 percent while Wilcox County in rural west Alabama was highest at 6.3 percent. Republished with the Permission of the Associated Press.
Martha Roby: A Time To Give Thanks
Martha Roby: A Time To Give Thanks
Alabama jobless rate dips to record 2.8 percent
Alabama’s unemployment rate has dropped to a record 2.8 percent. A statement released Friday by the state labor agency says the preliminary, seasonally adjusted unemployment rate for October was down two-tenths of a percent from 3 percent in September. That’s 1 percentage point better than the jobless rate from a year ago, and it’s well below the national employment rate of 3.6 percent. The state has gained about 60,000 jobs this year in the civilian workforce. Officials say the improvement came as Alabama’s manufacturing plants reached a 10-year high for employment. Manufacturing employment grew to 271,600 jobs, and the professional and business services segment has a record-high 259,700 jobs. Shelby County in metro Birmingham has the state’s lowest jobless rate at 1.8 percent. Wilcox County in rural western Alabama is highest at 6.3 percent. Republished with the permission of the Associated Press.
Alabama unemployment rate holds steady at 3.8 percent
Alabama’s unemployment rate held steady in January at 3.8 percent for the eighth consecutive month. “People are working in Alabama. Employers are hiring in Alabama,” said Fitzgerald Washington, Secretary of the Alabama Department of Labor. “We continue to report record numbers of people with jobs, and we are seeing fewer and fewer people counted as unemployed, which is what we like to see.” The number of people counted as unemployed in January measured 83,406, which is the third lowest count in history. Just one year ago, this number measured 86,250. “While maintaining our record low unemployment rate, we’ve also seen some great over-the-year growth in some of our high wage industries,” continued Washington. “Both the construction, information, and manufacturing sectors saw significant increases from January 2018 to January 2019.” Counties with the lowest unemployment rates are: Shelby County: 3.2% Marshall and Cullman Counties: 3.7% Tuscaloosa, Morgan, Madison, and Elmore Counties: 3.8% Counties with the highest unemployment rates are: Wilcox County: 10.5% Lowndes County: 8.2% Clarke County: 7.9% Major cities with the lowest unemployment rates are: Homewood: 2.7% Vestavia Hills: 2.9% Alabaster: 3.0% Major cities with the highest unemployment rates are: Selma: 8.8% Prichard: 7.5% Anniston: 6.1%
Alabama unemployment rate drops to 3.9 percent
Alabama’s unemployment rate dropped ever so slightly in December. The Alabama Department of Labor (ADOL) said December’s seasonally adjusted jobless rate is 3.9 percent — a decrease from November’s 4 percent. “We are ending 2018 with great economic news all around,” said Alabama Department of Labor Secretary Fitzgerald Washington. “To see this kind of record job growth is extraordinary. Alabama employers have added nearly 45,000 jobs over the past year – economists predicted that our economy would grow by 27,000 jobs. I’m happy to say that we more than exceeded their predictions.” For seven consecutive months, the number of people counted as employed has reached record highs, with December’s count measuring 2,130,194, an increase from November’s count of 2,127,934, and an increase of 49,018 compared to December 2017’s count of 2,081,176. December’s rate represents 86,023 unemployed persons, compared to 87,754 in November and 82,378 in December 2017. Counties with the lowest unemployment rates are: Shelby County: 2.5% Cullman County: 2.9% Marshall, Madison, Limestone, and Elmore Counties: 3.0% Counties with the highest unemployment rates are: Wilcox County: 8.7% Clarke County: 7.1% Dallas County: 6.6%. Major cities with the lowest unemployment rates are: Homewood and Vestavia Hills: 2.3% Alabaster, Hoover, Madison, and Northport: 2.5% Daphne: 2.9% Major cities with the highest unemployment rates are: Selma: 7.9% Prichard: 6.3% Bessemer: 4.8%
U.S. jobs report beats expectations, added 201,000 jobs in August
On Friday, the Bureau of Labor Statistics released the national August jobs report, which found the U.S. economy added 201,000 jobs, while the unemployment rate stayed at 3.9 percent. The numbers reveal that the labor market continued to defy worker shortages and trade battles. All in all, the economy has added 1.2 million new, non-farm, payroll jobs over the past 12 months. During which time unemployment rates for all major races and ethnicities dramatically improved (August 2017 to August 2018). Alabama 5th District U.S. Rep. Mo Brooks said the improved numbers are thanks to President Donald Trump and the work of Congress. “Congress and President Trump have worked hard and taken substantial political risks to jump start America’s economy. The tax cuts for American families and job creators, the reduction of Obama-era regulatory burdens, the preference for free enterprise principles over socialism, and the cuts in costly economic dictates by federal bureaucrats in their cubicles and windowless D.C. offices are all paying off,” explained Brooks. Brooks continued, “After a decade of anemic sub-3 percent economic growth, the American economy sizzled at a 4.2 percent growth rate in the 2nd quarter of 2018 and appears to be surging again in the 3rd quarter! American families and workers are enjoying a double whammy of good news: plentiful jobs and bigger paychecks brought about by the double dose of higher wages and lower taxes.” August’s jobs report also revealed the average hourly earnings for all non-farm American workers increased by 10 cents in August and 77 cents (2.9 percent) over the past year. “A 2.9 percent boost in average income over one year is fantastic!,” said Brooks. Brooks however pointed to America’s border problems with illegal immigration as the reason behind the one negative aspect of the new report. “The one big negative in the August report is that the average hourly earnings of ‘production and nonsupervisory employees’ (those most impacted by the surge in illegal alien labor caused by porous borders) increased at a 15 cents per hour slower pace (at 62 cents per hour) than the average for all American workers (77 cents per hour),” added Brooks. “I ask American voters to ponder how much higher their incomes would be if there was no competition from lower wage, and often illegal, foreign labor.”
Alabama’s unemployment holds steady at 3.8 percent
Alabama’s jobs market has held steady through the first quarter of 2018, with the unemployment rate coming in at 3.8 percent in April — the same as it was in March. According to numbers released Friday by the Alabama Department of Labor (ADOL), the unemployment rate has held in the 3.7 – 3.8 percent range all year, with January and February at the slightly improved rate of 3.7 percent. “The good news just keeps coming in Alabama,” Governor Kay Ivey said. “Our workforce is growing, more people are working, and businesses are moving to our great state. We are proud of how much we’ve improved, and are working hard to build on that momentum.” According to ADOL statistic, 2,086,659 people were counted as employed in April, an increase of 19,877 from last year. Additionally, average weekly earnings increased $41.92 over the year with wages in the construction, manufacturing, trade, transportation, and utilities, financial activities, professional and business services, education and health services, and leisure and hospitality sectors all increased over the year. “All 67 Alabama counties experienced rate drops both over the month and over the year,” said Fitzgerald Washington, Secretary of the Alabama Department of Labor. “Wilcox County, which traditionally has the highest unemployment rate in Alabama, saw its rate drop by 2.2 percentage points over the year.” Counties with the lowest unemployment rates are: Shelby County: 2.6% Cullman County: 2.8% Marshall, Madison, and Elmore Counties: 3.0% Counties with the highest unemployment rates are: Wilcox County: 8.6% Clarke and Lowndes Counties: 6.6% Greene County: 6.0%. Major cities with the lowest unemployment rates are: Homewood and Vestavia Hills: 2.2% Alabaster: 2.5% Hoover, Madison, and Northport: 2.6% Major cities with the highest unemployment rates are: Prichard: 6.1% Selma: 6.0% Anniston: 5.2%.
Alabama’s jobless rate holds steady at record low 3.7 percent
Alabama’s jobless rate did not budge in February. State labor officials said Alabama’s unemployment rate held steady at 3.7 percent in February, unchanged from January’s record low. The month saw strong job gains in education and health care, government and professional and business services. “The fact that we are able to maintain our record low unemployment rate for yet another month shows that we are, in fact, keeping Alabamians working,” said Governor Kay Ivey. “Once again, we can announce that we have the fewest number of unemployed people in history. More people are working, and our economy is adding jobs. This is a combination I’m proud of, and one we hope to maintain for many more months to come.” Alabama Labor Secretary Fitzgerald Washington said the state has maintained a wage and salary employment count of over two million for eleven months in a row. “Not long ago, we were looking forward to just attaining that ‘magic number.’ We are consistently adding jobs to our economy. These numbers show that employers are confident in the economy and are continuing to hire.” Counties with the lowest unemployment rates are: Shelby County: 3.1% Cullman County: 3.6% Marshall, Madison, and Blount Counties: 3.7% Counties with the highest unemployment rates are: Wilcox County: 10.5% Clarke County: 8.0% Lowndes County: 7.4% Major cities with the lowest unemployment rates are: Vestavia Hills: 2.6% Homewood: 2.9%, Alabaster and Hoover: 3.0% Major cities with the highest unemployment rates are: Prichard: 7.5% Selma: 7.2% Anniston: 6.5%
January unemployment rate sets new record low, nearly 40,000 fewer unemployed
Alabama’s unemployment rate is down to 3.7 percent — a new record low. The state released preliminary, seasonally adjusted numbers Monday morning showing the jobless rate declined one-tenth of a percent in January from December’s revised rate of 3.8 percent, well below January 2017’s rate of 5.5%. January’s rate represents 80,841 unemployed persons, compared to 82,378 in December and 120,788 in January 2017. “As we start a new year, we’re pleased to announce that we’re starting off with a new record low unemployment rate,” Governor Kay Ivey said of the news. “Nearly 40,000 fewer people are counted as unemployed, also setting a new record low. We have been working hard for months to bring quality, high-paying jobs to Alabama, and we’re putting our people back to work. We will continue this work in 2018, and we hope to maintain these fantastic numbers.” The U.S. jobless rate continues to hold steady at 4.1 percent, making Alabama’s unemployment rate is four-tenths of a percent better. “It is not uncommon for preliminary rates to be adjusted as more precise data becomes available, especially around highly seasonal periods, such as the holidays,” said Fitzgerald Washington, Secretary of the Department of Labor. “Even with the adjustments, we are still in an extremely good place. It was recently announced that our yearly average unemployment rate in 2017 dropped more than any other state in the country. Our wage and salary employment continues to show yearly increases, and all 67 counties have experienced significant yearly drops in their unemployment rates, some as high as 4.9 percentage points.” Over the year, wage and salary employment increased 17,700, with gains in the leisure and hospitality sector (+6,000), the education and health services sector (+5,600), and the professional and business services sector (+4,800), among others. Counties with the lowest unemployment rates are: Shelby County: 3.0% Cullman County: 3.5% Marshall, Madison, Elmore, and Blount Counties: 3.6% Counties with the highest unemployment rates are: Wilcox County: 10.4% Clarke County: 8.1% Lowndes County: 7.5%. All 67 counties experienced yearly drops in their unemployment rates, ranging from 1.2 percentage points in Autauga County to 4.9 percentage points in Wilcox County. Major cities with the lowest unemployment rates are: Vestavia Hills: 2.5% Homewood and Hoover: 2.8% Alabaster and Northport: 2.9% Major cities with the highest unemployment rates are: Prichard: 7.7% Selma: 7.0% Anniston: 5.8%
Alabama’s jobless rate holds steady at record 3.5 percent low
Governor Kay Ivey announced on Friday that 2,093,063 people were counted as employed in December, the most ever recorded. Alabama’s preliminary, seasonally adjusted December unemployment rate is 3.5%, maintaining last month’s record rate. “We are ending 2017 with great news on the employment front,” Ivey said. “Not only have we reached a record low unemployment rate, but now we can add another record to our list – more people are working in Alabama than ever before! We’ve been busy recruiting new business to our state, like our recent announcement of Toyota-Mazda’s decision to locate in North Alabama, bringing 4,000 jobs and more than 300 jobs in Troy due to Kimber’s recent announcement.” The new figures also indicate the Yellowhammer State is ahead of the national employment average as the U.S. jobless rate is holding at 4.1 percent, a 17 year-low due in part to President Donald Trump‘s policy initiatives. Fitzgerald Washington, Secretary of the Alabama Department of Labor, said Alabama surpassed economists predictions for 2017. “In early 2017, economists predicted that Alabama’s economy would gain 18,700 jobs over the year,” said Washington. “I’m happy to say that we surpassed that prediction by more than 13,000 jobs, gaining a total of 32,500 jobs. Employers are hiring in Alabama, and we stand ready to provide whatever assistance is needed to make sure that they are able to fill their open positions.” Over the year, wage and salary employment increased 32,500, with gains in the leisure and hospitality sector (+8,700), the construction sector (+6,100), and the manufacturing sector (+5,800), among others. “Over the year, all 67 showed significant decreases in their unemployment rates,” continued Washington. “Wilcox County is leading with a 6.2 percentage point drop from the same time last year.” Counties with the lowest unemployment rates are: Shelby County: 2.5%, Cullman County: 2.8% Marshall, Madison, and Lee Counties: 2.9% Counties with the highest unemployment rates are: Wilcox County: 9.5% Clarke County: 6.7% Lowndes County: 6.5%. Major cities with the lowest unemployment rates are: Vestavia Hills: 2.1% Homewood: 2.3% Alabaster and Hoover: 2.4% Major cities with the highest unemployment rates are: Selma: 6.3% Prichard: 6.2% Anniston: 5.0%
