Saturday, May 19, 2012

Wisconsin Employment Performance: The Good And Bad

SEARCH BLOG: ECONOMY and GOVERNMENT

Wisconsin's Gov. Scott Walker has come under fire for his policies of shifting benefit costs from taxpayers to government employees... specifically teachers.  With a recall election looming, we can look at what the employment conditions are in Wisconsin versus other states.

From the Bureau of Labor Statistics:


With an unemployment rate of 6.8%, Wisconsin has a fairly low unemployment rate compared with the rest of the nation.  That's the good news.


When you look at the change in non-farm employment from March, 2011 to March, 2012, Wisconsin's performance is ... falling at the bottom.  That's the bad news.

Part of the change in Wisconsin's employment is due to the loss of government jobs.  Looking only at private sector, non-farm jobs, Wisconsin has lost 6,100 jobs during that period.  That's essentially flat off a base of 2.7 million [-0.2%].

There are many excuses one could make for Wisconsin's performance under Gov. Walker, but the bottom line is that Wisconsin is not doing well from a jobs growth perspective under his administration.  Part of the problem may lie in the political uncertainty facing the state with a recall election looming in June.  Business doesn't like that.

From a financial perspective, the long term outlook for Wisconsin is better with benefit pension liabilities to teachers being reduced.  That presumes Gov. Walker's policies remain in place.  That may or may not be a positive for employment in the coming year.

I've requested that the BLS consider a third chart that backs out changes in government employment from Chart 2 to get a better picture of the private sector change.  They have the data to do that easily, but may choose not to do it.  I did receive a nice reply, however:
Hello Bruce,  
Thank you for writing.  
Your e-mail has been forwarded to the State and Metro Area Employment, Hours, & Earnings program office for a reply.  Someone will contact you. To contact their office directly call  (202) 691-6559 or send an e-mail to sminfo@bls.gov. 
 If we can be of further assistance, please let us know.  
Sincerely, B. Bigesby-Moore  
Division of Information Services 
Office of Publications and Special Studies 
Bureau of Labor Statistics
RELATED:

2012 IS HERE

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