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State of Working Mississippi 2012 Chapter 1: JOBS

January 26, 2012

The release of MEPC’s State of Working Mississippi 2012 reveals that the 2000s challenged many Mississippi businesses, as well as working adults and their families. Chapter 1 of the report details trends in the state’s workforce, jobs and unemployment.

CHANGE IN EMPLOYMENT BY DECADE

Mississippi’s job losses in the 2000s appear particularly harsh when compared to the growth of the 1990s (see chart). Mississippi’s employment grew by 23.2% during the 1990s, in contrast to a 5.5% decline in the 2000s. The South experienced similar trends of strong job growth during the 1990s; however, the region did not experience the same level of overall decline in the last decade.

The latest data reveals that Mississippi was one of four states with an unemployment rate still above 10% in December 2011.

SHIFTS IN EDUCATIONAL ATTAINMENT AND AGE OF WORKFORCE

The percentage of workers with at least a bachelor’s degree rose to 22.8% during the decade, and 57.1% of the workforce has taken at least some college coursework. Even with gains, the state’s portion of adults with college experience registers below national norms (60.5%). Overall, more than 350,000 working-age adults still lack a high school diploma and college experience.

Older adults now represent a larger share of Mississippi’s workforce. Throughout the economic downturn in the late 2000s, many Americans delayed retirement to build economic security after suffering financial losses. In 2000, 13.3% of Mississippi workers were age 55 or over. By 2010, 18.7% of Mississippi’s labor force was at least 55 years old. In contrast, younger Mississippians now represent a smaller share of the state’s workforce.

RECOMMENDATION: (For full recommendations see complete State of Working 2012).

Increase wrap around supports for adults in adult basic education, job training and post-secondary courses. Strong wrap-around support services are critical for adults returning to school with the hope of gaining skills and moving into higher wage employment. Without these resources, even the strongest students will struggle to meet both the needs of their families and the demands of training. Examples of supports include: transportation vouchers, child care and staff dedicated to helping adults in adults basic education and GED programs transition to college-level classes.

Tomorrow: The SOW 2012 series continues with a closer look at wages by race, gender and educational attainment.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE STATE OF WORKING MISSISSIPPI 2012

January 25, 2012

Many communities across Mississippi continued to experience persistently high unemployment and underemployment, stagnant wages and economic insecurity. However, the state’s workforce remains resilient and continues to be one of the state’s greatest assets. Understanding how workers, industries and families have been affected over the last decade can lay a foundation for building up the workforce in the years ahead.

MEPC’s latest report, State of Working Mississippi 2012 is a comprehensive piece that looks at key aspects of the economy affecting Mississippi’s workforce from 2000 to the present. Specifically the report:

Inspects changes in critical areas of Mississippi’s economy since 2000 including: jobs, the workforce, wages, income, and state revenue.
Compares information in these areas with trends nationally and among Mid South states.
Examines each of these areas through the lens of race, gender and educational attainment.
Summarizes key takeaways and makes recommendations in each chapter for advancing working Mississippians and their families.

SELECT FINDINGS FROM STATE OF WORKING MISSISSIPPI 2012

TWO RECESSIONS RESULT IN JOB LOSS OVER THE DECADE

In Mississippi, employment peaked in February 2008 and then steeply declined until February 2010. In total, Mississippi lost 76,800 jobs over the two-year period. Mississippi’s job losses in the 2000s appear particularly harsh when compared to the prosperity of the 1990s. Mississippi’s employment grew by almost 25% during the 1990s, in contrast to a 5.5% decline in the 2000s. The Southern region and the United States experienced similar job growth during the 1990s; however, neither the South nor the nation experienced the same level of overall decline in employment in the 2000s.

MISSISSIPPI WORKERS EXPERIENCE LITTLE CHANGE IN WAGES

Many members of the state’s workforce have not seen an improvement in their wages since 2000, as companies were hit hard by two economic downturns, and state and local budgets tightened. The inflation-adjusted median wage in Mississippi grew marginally from 2000 to 2010, from $13.13 to $13.45. The gap between men’s and women’s wages narrowed over the decade, while the wage gap between white and African American workers persisted from 2000 to 2010.

WORKFORCE ADVANCES IN EDUCATIONAL ATTAINMENT

Mississippi’s workforce advanced in educational attainment over the decade, but needs to raise skill levels further to reach national norms. In 2000, 20.8% of the workforce received a bachelor’s degree or higher compared to 22.8% in 2010. Overall 57.1% of the state’s workforce has taken at least some college classes. However, over 350,000 working-age adults still lack a high school degree, and the share of workers without high school equivalency is larger in Mississippi than in the U.S.

Over the next several days we will take a closer look at the key findings and recommendations from each chapter of the report.

Author: Sarah Welker, Policy Analyst

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Part 2: Making Mississippi’s Income Tax More Equitable—The Earned Income Tax Credit

January 13, 2012

Filed under: Budget & Tax,EITC,Income & Working Families,Income Tax — Tags: Earned Income Tax Credit, Federal Poverty Line, income tax, Mississippi, Regressive Tax System — admin @ 10:11 AM

Our first post addressed the increasing gap between the state tax threshold and the federal poverty line. One policy solution that would reduce the effect of the state income tax on the poor is for our state to institute an Earned Income Tax Credit (EITC).

The federal EITC is the nation’s most effective anti-poverty program for working families.¹ It is designed to encourage and reward work as well as offset federal payroll and income taxes. In 2009, it lifted 6.5 million people above the federal poverty line—including 3.3 million children, nationally. Additionally, the federal EITC is refundable, meaning that if it exceeds a low wage worker’s income tax liability, the IRS will refund the balance.

404,394 Mississippians claimed the federal EITC in 2011 which brought an additional $1.5 billion into our state.² A state EITC would reduce the income taxes owed and provide a wage supplement for over 360,000 working families living in or near poverty in Mississippi. Finally, a state EITC that is tied to the federal EITC is automatically adjusted.

The next blog in this series will talk about the estimated cost and eligibility requirements for a state EITC while also describing the work benefits that an EITC could create in our state.

Author: Francinia D. McKeithan, Policy Analyst/ SFAI Policy Fellow

¹EITC Statistics http://www.eitc.irs.gov/central/eitcstats/

²Arloc Sherman, “Stimulus Keeping 6 Million Americans Out of Poverty in 2009, Estimates Show,” Center on Budget and Policy Priorities, September 9, 2009.

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Making Mississippi’s Income Tax More Equitable

January 11, 2012

Filed under: Budget & Tax,Income & Working Families,Income Tax — Tags: Federal Poverty Line, income tax, Mississippi, regressive, Tax System — admin @ 9:08 AM

Mississippi’s state income tax threshold, the amount at which persons start having to pay income taxes, has fallen below the federal poverty line since 2005 (See Figure 1, below).

Each year, the federal poverty line increases due to increases in the cost of living. However, Mississippi’s income tax threshold does not adjust for inflation.

Without adjustment, the gap between the state’s income tax threshold and the federal poverty line will increase annually. In turn, there will be more individuals living below the federal poverty line that will be required to pay state income taxes.

This blog is the first of a series of posts on the state’s tax system. Forthcoming posts will include policy solutions to address the growing regressive nature of the state’s income tax system.

Author: Francinia D. McKeithan, Policy Analyst/ SFAI Policy Fellow

Part 2: Making Mississippi’s Income Tax More Equitable—The Earned Income Tax Credit

Part 3: A State Earned Income Tax Credit – Estimated Cost, Eligibility, and Encouraging & Rewarding Work

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What Can Data Do?

November 1, 2011

Filed under: Childhood Advisory Council,College,Data System,Department of Education,Department of Human Services,Education,Income & Working Families,Institutions of Higher Learning,Longitudinal Data System,State Board for Community and Junior Colleges,Training,Workforce — admin @ 8:56 AM

A recent MEPC post raises concerns that the state’s future economic prosperity may be limited by persistently disparate outcomes between residents by poverty status and race. Moving towards many of the goals outlined in the post –job creation, quality schools and strong post-secondary and workforce training- will require more in-depth knowledge of how our education systems connect and support students of all ages.

In an effort to build that knowledge, the state recently passed legislation that will eventually provide the state’s leaders and policymakers with data on student and workforce outcomes across all education systems- elementary school to employment. Through the recently passed Mississippi State Longitudinal Data System, Mississippi will now begin to build the capacity to link information together from key state entities and eventually make data driven decisions for investment in policies and programs that move the state forward.

The figure below shows the agencies that will potentially be included in the new state system:

In particular, the recent authorization could develop a system that provides a resource for looking at the wage and employment outcomes of adults that exit training programs across the state. The system can also help determine which programs are successfully preparing low-income, low-skill adults to move into jobs with advancement opportunities and higher wages.

Using the SLDS gives leaders a resource for strengthening the state’s education and training, so more adults are equipped with the skills they need to open the doors to higher wage employment. Opening these doors remains a key avenue for increasing the economic security of families and one solution for closing income and educational disparities across the state.

Want to learn more?

Read more on the State Workforce Investment Board’s goals for the State Longitudinal Data System.
Read more on how data systems can be used to strengthen Mississippi’s education and training systems.
Read the SLDS legislation passed by Mississippi during the last legislative session.

Author: Sarah Welker, Policy Analyst

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2011 Annual Policy Conference Recap

October 26, 2011

Filed under: 2011 Annual Policy Conference,Basic Economic Security,Budget & Tax,Education,Events,Healthcare,Income & Working Families,Jobs,Making Mississippi Competitive: Solutions For Building Assets In Low-Wealth Communities,Poverty,Predatory Lending,Revenue,Self-Sufficiency,Taxes,Workforce — admin @ 10:23 AM

The 2011 Annual Policy Conference was a great success. Thank you to everyone who attended and the presenters who shared their knowledge and expertise. This year, MEPC expanded our break out session format to allow participants to attend two sessions.

Darrin Webb, opened the conference with an overview of Mississippi’s economy and Bobby Harrison, Capitol Correspondent for the North East Mississippi Daily Journal and Emily Wagster-Pettus, Associated Press political reporter served as respondents to the presentation, offer insight on how the changing political landscape will affect efforts to engage policy makers on issues affecting working families.

Our keynote luncheon address focused on the importance of the role of government in the lives of all Americans and the need for various constituencies to work together for a more prosperous Mississippi. Video of our Keynote Speaker, Hodding Carter III, Professor of Leadership and Public Policy University of North Carolina at Chapel Hill will also be available soon on our website so check back!

Below are brief descriptions of our 2011 Breakout Sessions:

Taxes fund the public structures that make up the foundation of our economy and make job creation possible.

MEPC Senior Policy Analyst Sara Miller and Elaine Mejia Senior Program Associate with Public Works at Demos present tax reform options and how to talk about taxes effectively in the current political landscape.

Understanding the challenges and opportunities of health care reform implementation

Corey Wiggins with i-Think Group examine the ongoing efforts of health reform implementation in Mississippi and how those opportunities and challenges affect the lives of working Mississippians.

Measuring basic economic security in Mississippi and building pathways for working families to achieve it

Wider Opportunity for Women’s Delese Harvey explores the new benchmark for basic economic security and gives hands on guidance on how organizations can use the Basic Economic Security Tables to advocate for programs that support families in their community or to help adults budget and set goals as they re-enter the workforce.

Steps to help Mississippi’s working families protect and build assets

Mississippi Center for Justice Community Organizer, Alicia Netterville and Felicia Lyles, VP Regional Branch Administrator for Hope Credit Union explain the effects of payday lending and how working families can make responsible financial decisions and move toward economic security.

PDF versions of all the PowerPoint presentations given in each break out session at the conference.

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Moving More Mississippi Families Toward Greater Economic Security

October 24, 2011

Filed under: Basic Economic Security,Income & Working Families,Jobs,Workforce — admin @ 10:14 AM

Last week MEPC’s posts focused on the release of a new report, The Basic Economic Security Tables for Mississippi. In the post below we provide more background on the measure and recommendations for moving more families to greater economic security.

Poverty data from 2010 revealed that 22.4% of Mississippians lived in households facing extreme economic vulnerability. However, the Basic Economic Security Tables underscore that many families across our state are earning wages below what they need to provide basic needs for their families and save for retirement and emergencies such as a job loss or large health care bill.

The graphic above compares the Federal Poverty Threshold for a family of four to basic economic security levels for 1 worker, 1 worker and a school child, and 2 workers with 2 children. Families with 2 workers and 2 school children need $53,808 to provide basic needs for their families and save for their retirement and emergencies, more than double the Federal Poverty Level for a family of 4- $22,314.

Mississippi faces the challenge of enhancing opportunities for working adults to advance towards the income levels set by the Basic Economic Security Tables. Now knowing what families need to reach economic security, MEPC makes the following recommendations for lifting up more pathways to true economic security:

Support sector initiatives that train low-skill, low-income individuals for in demand jobs
Increase access to capital to start small businesses among historically underserved populations
Support early childhood education and reducing costs through workforce support programs

All of these recommendations are not new to MEPC. We’ve long advocated for the enhanced investment in sector initiatives such as career pathways for low-skilled adults. We are also housed in a community development finance institution that has over 17 years of experience in lending to minority owned small businesses – especially in rural communities.

What is different today is that there is convergence around these recommendations with strategies that are currently being lifted up by the business community in Blueprint Mississippi. We must recognize the significance of this moment and work together to build the Mississippi that we all want to see for our children and grand children.

Authors: Sarah Welker, Policy Analyst
Ed Sivak, MEPC Director

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Exploring Basic Economic Security In Your County Online

October 19, 2011

Filed under: Basic Economic Security,Education,Income & Working Families,Self-Sufficiency,Workforce — admin @ 8:59 AM

The previous post focused on the release of a new report – Basic Economic Security Tables for Mississippi- that measures how much Mississippi’s families need to cover basic expenses and save for long-term economic security. Across Mississippi, 1 worker needs $26,664 per year to reach this benchmark and a family with 2 workers, 1 preschooler and 1 schoolchild needs $55,586 per year for their basic needs and modest savings for retirement and emergencies.

WHAT ABOUT BASIC ECONOMIC SECURITY IN MY COUNTY?

Families experience different costs for basic needs and different savings targets depending on where they live in the state. To ensure residents, non-profits, schools, and public agencies have access to county-level information on the income families need for basic economic security, MEPC has printable fact sheets for each county.

To the right is an example of county-level basic economic security tables for Lauderdale County. In Lauderdale County, 1 worker needs $25,956 per year for basic economic security compared to the state average of $26,664. Each fact sheet shows basic expenses and savings for 6 different family types. County fact sheets are available for each of Mississippi’s 82 counties.

UPGRADES TO THE ONLINE CALCULATOR

The Basic Economic Security Tables build on MEPC’s use of the Self-Sufficiency Standard, and MEPC’s online calculator has been upgraded to include basic needs and savings amounts from the new report.

The new Basic Economic Security Calculator allows individuals to pick their monthly savings targets for emergencies, retirement, homeownership and children’s post-secondary education. The savings are then included in the family’s monthly budget. After an individual gets their basic economic security wage, they can proceed down the page to compare it with the wages different occupations pay in their community. Occupational wages have been updated to 2010 with the help of the Mississippi Department of Employment Security.

The online calculator has been a valuable resource for Mississippi’s high school students, teachers, guidance counselors and adults returning to training. MEPC is excited to launch this upgraded online resource and looks forward to working with individuals and groups across the state to expand awareness of what families need to reach true economic security and advance beyond living pay check to pay check.

To learn about ways to use both the county fact sheets and online calculator in your community and across the state, attend MEPC’s 2011 Annual Policy Conference on October 21, 2011.

Author: Sarah Welker, Policy Analyst

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INTRODUCING THE BASIC ECONOMIC SECURITY TABLES FOR MISSISSIPPI, 2011

October 18, 2011

Filed under: Basic Economic Security,Education,Income & Working Families,Jobs,Making Mississippi Competitive: Solutions For Building Assets In Low-Wealth Communities,Self-Sufficiency,Workforce — admin @ 10:59 AM

In the wake of the 2007 recession, many Mississippi families are still struggling to reach financial stability in their households. A new report –Basic Economic Security Tables for Mississippi- from MEPC and Wider Opportunities for Women redefines how much Mississippi’s families need for true economic security in today’s economy by covering their basic needs but also saving for life-long economic security.

Basic Economic Security Tables for Mississippi determines how much families need for daily necessities and includes monthly savings targets for emergencies and retirement. These savings targets insulate families from poverty and increase economic security across generations. In Mississippi, a family with 2 workers, a preschooler and a school child needs each adult to work full time and earn $13.16 per hour to reach basic economic security.
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BASIC ECONOMIC SECURITY LINE BY LINE FOR 2 MISSISSIPPI FAMILY TYPES

The tables show monthly basic expenses and savings targets for 2 family types. The table on the left shows average monthly targets for 1 worker in Mississippi. The worker needs $443 for housing, $138 for utilities and $246 for food and so on. In total, a single working adult in Mississippi needs $26,664 per year or $12.63 per month to cover basics and have modest savings for emergencies and retirement.

The table on the right shows similar expenses and savings for family with 2 working adults, 1 preschooler and 1 schoolchild. For this family to reach basic economic security, each adult needs to earn $13.16 per hour for a combined income of $4,632 per month to cover their basic needs and save for retirement and emergencies like job loss or an unexpected medical bill.

The tables assume workers receive employment-based benefits like health insurance through their employer and unemployment insurance. Without these additional employment-based benefits families will need to save more for emergencies and increase their monthly healthcare budget substantially. For example, the average 2-adult, 2-child family which cannot participate in an employer-sponsored health insurance plan pays $634 more per month -$7,608 per year- more than those who do participate in employer health plans.

Want to know more? Keep reading, tomorrow’s post will drill down and look at basic economic security in different counties and we’ll walk through updated online resources for members of communities across the state.

Author: Sarah Welker, Policy Analyst

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As Population Ages Mississippi’s Retirement Income Exemption Will Threaten State Revenue

October 13, 2011

Filed under: 65 and Older,Income & Working Families,Income Tax,Population,Retirement,Revenue,Shifting Demographics,Taxes,Workforce — admin @ 7:48 AM

Over the next twenty years, the US population of people over 65 is expected to increase. In Mississippi that it is projected to increase so that in 2030, one in five Mississippians will be over 65. The US Census Bureau data in the figure below shows the projected percentage of the population over 65 in five year increments from 2000-2030.

Percent of Population 65 and Older in United States and Mississippi 2000-2013

This population shift will affect Mississippi’s income tax revenue due to an exemption for retirement income. The exemption was added to the tax code in 1994 and exempts all retirement income (both public and private). The exemption applies regardless of the amount of retirement income a taxpayer receives. The exemption currently costs the state over $300 million annually. If it remains in effect, it could put a significant strain on the state budget in the years to come. It may cause revenue increases in other areas or detrimental cuts due to the loss of revenue. The loss in revenue may be amplified by any increases in the costs of providing services to an aging population.

In order to mitigate the loss in revenue without putting a burden on low-income seniors, the exemption could be phased out at higher income levels.

Over the next several months, we will be profiling potential threats to the state’s revenue collections. Stay tuned for more areas that are in need of updating to keep up with the changing environment.

Author: Sara Miller, Senior Policy Analyst
Source: MEPC analysis of data from the US Census Bureau and US Administration on Aging

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