US Unemployment Rate Hits 8-Year Low
Friday, February 05, 2016
GDP grew by just 0.7% in the fourth quarter, as the economy was hampered by global volatility and falling oil prices.
GoLocal teamed up with Graphiq to take a closer look at unemployment in the US.
Related Slideshow: New England States Battle Over Jobs
Here are several examples of business and job raiding by and against New England states, according to the Good Jobs First report,
States pirating other states for existing businesses and jobs is nothing new.
The 1950s saw heightened concern about the growing number of footloose companies that were abandoning long-standing industrial locations in the north to take advantage of benefits being offered by states such as Mississippi. Then-Sen. John F. Kennedy of Massachusetts decried southern “raiding,” especially in the textile industry. Organized labor took notice. In 1955, then-named American Federation of Labor published a pamphlet with the title “Subsidized Industrial Migration: The Luring of Plants to New Locations.”
In Massachusetts, the free market-oriented Pioneer Institute likened interstate lures to “playing the lottery” in examining the National Establishment Time-Series Database for 1990-2007.
Although the Bay State has had a small net loss of jobs to interstate moves, it loses and gains jobs from mostly the same states (New Hampshire, New York, Rhode Island and Connecticut all rank in the top 5 for both directions). In addition to some cautionary findings about the Bay State’s trends, the Institute concluded, “The majority of establishments that moved to the state did not receive special incentives from the state to do so. Therefore, public thinking and public policy with respect to economic development should be reoriented to place less emphasis on interstate relocation.”
Ballooning state-budget deficits are costing millions of jobs, affecting every state, with no regard for region or corporate tax or incentive regimens.
For example, a study of job loss due to the growing trade deficit with China names New Hampshire, California, Massachusetts, Oregon, North Carolina, Minnesota, Colorado and Texas among the 10 most affected states - proportionally, and in that order. That should be a sobering fact for states such as New Hampshire (that so shamelessly pirates jobs from Mass.) and Texas (that openly lures companies from Mass. and other states).
Several states have major state-subsidy programs with restrictions on intrastate job shifting. Among them, are two in New England:
- Rhode Island:
o Corporate-income tax-rate reduction for job creation
o Enterprise-zone tax credits
o Economic-advancement tax incentives
o Employment-growth incentives
In 2011, the Boston Globe published a profile of the State of New Hampshire’s top business recruiter, Michael Bergeron, labeling him a “full-time thief.”
Bergeron, who was said to have removed the state seal from his car to be less conspicuous when visiting prospects, claimed to have lured dozens of firms from Mass. to the Granite State. Brazenly, he posted the Globe profile on his agency website.
In 2010, Connecticut Governor Jodi Rell faced allegations of inciting a border war by writing to New York City-based hedge-fund managers.
“I am personally inviting you and a few of your colleagues to meet with me. We have much to discuss!” Rell added. “The meeting will be intimate, direct and private.”
- Job Corner: 2 Life Changing Communication Strategies You Need
- Ocean State Job Lot Donates 630,000 lbs of Food to Area Pantries
- RI’s Top 30 Highest Paid Jobs by the Hour
- Rhode Island’s Highest Paid Hourly Jobs
- Job Corner: 20 Signs Your Resume Won’t Pass The Skim Test
- Providence Ranks Among Worst in Job Creation
- RI Ranked 10th Worst for Job Creation in U.S. by Gallup
- RI Leaders Report Card - Who is Getting the Job Done
- ProJo To Lay Off 12 Copy Editors, Send Jobs to Texas: Moore News
- Fit For Life: Jobs
- Job Corner: Don’t Always Lead With Your Resume
- Estimated 30,000 Applied for 1,110 State Jobs in RI in 2014
- Don Roach: Let’s Give Raimondo’s Jobs Plan a Chance
- 1st Annual Central Falls Job Fair Set For Wednesday, September 16
- U.S. Jobless Claims Remain Near 15-year Low
- NEW: Providence is 5th Worst for Finding a Job in US
- US Economy Adds Roughly 292,000 Jobs in December
- Moore: RI Has Bigger Ethics Issues Than Lally’s Job
- Nelipak Healthcare Packaging to Host Job Fair at Cranston Headquarters
- Job Corner: One Simple Shift to Improve Your Communication
- Job Creation Proposal and a New State Pier in Newport: This Week at the State House
- Providence’s New Rec Director Won’t Give Up Outside $180K Refereeing Job
- NEW: May U.S. Unemployment Rate Rises, More Jobs Added
- Job Cuts Up 218% in January