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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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JOB WATCH: U.S. EMPLOYMENT GROWS BY 200,000

January 6, 2012

Filed under: Jobs — Tags: employment, job growth, Jobs, Mississippi, STEPS — admin @ 11:45 AM

Today the national employment data reported that the U.S. added 200,000 jobs in the month of December. The rise in employment brought the nation’s unemployment rate to 8.5%, down from 8.7% in November.[1] While the job numbers show positive momentum in employment growth, Mississippi’s unemployment rate of 10.5% registered above the nation’s last month, and the state’s leaders continue to focus on the need for substantial job creation.

A LONG TERM VIEW OF EMPLOYMENT

The figure below shows changes in Mississippi’s employment over the last three decades. In the 1980s and 1990s Mississippi experienced substantial employment expansion. However the early and late 2000s have brought decreases in overall employment with the largest decline (3.5%) coming in 2005-2010. In November 2011, Mississippi still had 50,000 fewer jobs than before the 2007 recession began. Unemployment rates for each of Mississippi’s counties can be found here.

POLICIES FOR ADDITIONAL JOB CREATION

Senior Economist Timothy Bartik from the W.E. Upjohn Institute researches state economic development policies that promote growth in jobs and earnings. Bartik’s findings have revealed that when states provide additional resources for customized job training to businesses, it increases job growth and per capita earnings substantially more than a general business tax cut per dollar invested. Customized training can provide skills to a business’ new or existing employees.

Enhancing funding for targeted job training provides the dual benefit of building up businesses already in a community and recruiting businesses to a region. Communities can also put policies in place to promote using customized training funds to prepare and hire unemployed workers from the local community.

In Mississippi, initiatives like the Subsidized Employment and Training Program (STEPS) used public funds to subsidize wages for businesses that hire and provide skills to unemployed workers. The Mississippi Community College Board’s Office of Workforce Education oversees resources to colleges that provide workforce training to local employers.

Mississippi continues to need actions that stimulate job growth across local communities. As state and regional leaders make decisions about how to spur job creation, dedicating additional resources to customized training and pooling industry training needs may offer an avenue to help Mississippi’s businesses compete and ensure more jobless Mississippians move into employment opportunities.

Author: Sarah Welker, Policy Analyst

[1] The U.S. unemployment rate in November was revised from 8.9% to 8.7% in the December release.

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JOB WATCH: Mississippi Unemployment Rate Above 10 Percent

December 5, 2011

Filed under: Jobs — admin @ 12:52 PM

The national jobs report released Friday showed substantial gains in overall employment with the U.S. adding 120,000 jobs. For the first time in over 2 years, the country’s unemployment rate fell to 8.6%. The report also found that job growth in October and September was stronger than initially reported.

While November reports for states have not been released, information on unemployment for October is available. In October, Mississippi’s unemployment rate remained unchanged at 10.6 percent for the second month in a row.

Almost four years after the start of the 2007 recession, Mississippi is one of ten states that continue to experience unemployment rates above 10 percent. Only California and Nevada were reported to have higher unemployment rates in October. The graphic below shows unemployment rates for states bordering Mississippi. Louisiana and Arkansas’ rates were below the national rate of unemployment.

While the uptick in national employment and consumer sentiment are positive developments, Mississippi’s workforce still faces a long recovery to reach pre-recession levels. In total, an estimated 138,700 adults in Mississippi were jobless and looking for work in October 2011, about 10,000 more than were jobless one year ago. The depth and persistence of this recession reaches beyond previous downturns. Without a substantial change in job growth trends, it will be several years before the state’s unemployment rate returns to normal levels.

As national and state employment levels recover slowly, steps can be taken to put more of Mississippi’s working families on a path to income gains and financial security. MEPC continues to recommend building workforce training through sector initiatives and strengthening work supports like child care, health care, energy assistance and affordable housing. Only by taking a balanced approach that includes raising revenue will Mississippi have the resources to put the education and work support systems in place needed to be competitive in the global economy.

Author: Sarah Welker, Policy Analyst

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November Job Watch

November 4, 2011

Filed under: Jobs,November Job Watch,Unemployment — admin @ 2:43 PM

The November jobs report from the Department of Labor revealed that the United States added 80,000 in October. National unemployment slightly decreased from 9.1 to 9.0%. The number of jobs added is a positive sign, but also slightly less than the 158,000 added in September.

Mississippi’s unemployment rate rose from August to September to10.6%.The state’s unemployment rate remains well above the national rate of 9.1% in September. The rise in Mississippi’s rate means that 1 in 10 Mississippi workers continue to be unemployed and looking for work.

Unemployment rates continue to be higher than this time last year, but Mississippi did add jobs in September after employment fell the previous two months. As the graphic below shows, Mississippi continues to be over 60,000 jobs below the employment peak in February 2008. And projections indicate that, in the absence of intervention, it could be 2016 before the state regains pre-recession employment.

As jobs are added and working adults find employment after a period of job loss, low-wage jobs without benefits are often not enough for true economic security. As seen from last week’s release of the Basic Economic Security Tables, a single worker in Mississippi needs $26,664 per year to cover basic expenses and save for emergencies and retirement. However, if that individual does not receive employment-based benefits like unemployment insurance, health insurance and retirement, the amount one worker needs rises to $31,416.

As the election nears, the state’s leaders face the challenge of building up the state’s economy and creating jobs for the thousands of families that still face economic insecurity because of periods of unemployment. Creating jobs that have pathways to economic security should be a priority, so many of Mississippi’s working families can advance beyond living pay check to pay check and can save for long-term security.

Author: Sarah Welker, Policy Analyst
Sources: Economic Policy Institute. Job Watch. Mississippi Department of Employment Security Labor Market Information.

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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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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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Investments in Education and Research Critical to State’s Future Economic Progress

October 6, 2011

Filed under: Economic Outlook Conference,Education,Income & Working Families,Jobs,Workforce — admin @ 8:14 AM

MEPC’s previous post focused on projections for job growth by sector presented in last week’s IHL Economic Outlook Conference. The conference also looked at projections for growth in Mississippi’s employment, personal income, inflation and output for next year.

As the chart below shows, growth rates in output, employment and inflation are all similar for the US and Mississippi with differences of only 0.1% for 2012. However, Mississippi’s personal income, already among the nation’s lowest, is projected to grow slower than the nation’s in 2012. In 2012, personal income is projected to grow 3.1% across the state.

Growth in personal income may be needed among many Mississippi households. As noted in a previous post, median household income across the state has fallen over the decade. Adjusting for inflation, median incomes declined $6,142 from $42,963 in 1999/2000 to $36,821 at the end of the decade

Dr. Marianne Hill with IHL noted that 2012 will likely have larger growth than 2011 assuming Mississippi and the nation avoid another economic recession. The nation and Mississippi are currently at a 40% probability of entering another recession.¹

In the longer term, investments in education and research were both listed as critical to the state’s future economic progress by state and national experts. Industry leaders regularly emphasized that innovation across sectors was key to future competitiveness.

They stated that this innovation could be fueled by investments in education that lead to the training of a more skilled workforce. However, budget hearings last week underscored that many of the needs across Mississippi’s education and training spectrum are at risk of being unmet without approaches that consider pathways to increasing state funding for K-12, community colleges and universities.

Author: Sarah Welker, Policy Analyst
¹Daco, Gregory. IHS Global Insight. Presentation on the U.S. Economic Outlook.

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State Not Projected to Surpass Employment Levels from 2000 Until 2016

October 4, 2011

Filed under: Economic Outlook Conference,Income & Working Families,Jobs — admin @ 10:18 AM

On September 28^th, the Mississippi Institutions of Higher Learning held their Annual Economic Outlook Conference. Presentations detailed that employment across Mississippi is projected to grow slowly through 2016, at 1.3% annually. Last year, projections were that Mississippi would regain the number of jobs that existed in 2000 by 2014. Slowing growth led IHL to revise their projection, indicating that the state will not surpass 2000 levels of employment until 2016.

Business services, health care and social assistance, and construction employment are expected to average strong employment growth between 2011 and 2016. In contrast, employment in hospitality & leisure, government and finance are each projected to average annual growth at less than one percent (see below).

JOB CONCENTRATION BY INDUSTRY MAY IMPACT STRENGTH OF RECOVERY

Jobs in government make up 23% of total employment in Mississippi, a larger concentration than the national average of 17%. On the other side of the spectrum, business services represented 9% of employment in the state compared to 13% nationally. The concentration of jobs in business services and health care is lower in Mississippi than across the nation, signaling that the state has a lower portion of jobs in sectors that will have relatively strong growth in the next 5 years.

With almost a quarter of Mississippi’s employment in government, economists with the Institutions of Higher Learning suggested that the state may experience a weaker recovery than other parts of the country through 2016.

Posts throughout the week will feature additional findings from the IHL’s Economic Outlook Conference.

Author: Sarah Welker, Policy Analyst

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