Jobs « Policy Matters

Share |

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.

Comments (0)

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

Comments (0)

Job Watch: A Tale of Two Sectors

September 30, 2011

Filed under: Income & Working Families,Jobs,September Job Watch — admin @ 9:00 AM

In total, Mississippi still has 61,400 fewer jobs than it did at the end of 2007.
The following post focuses in on the last two years and reviews public and private sector employment changes.

Overall, August’s job report showed little improvement in employment across the country. News of limited job growth has been followed by debate over what additional action can be taken to spur job creation and ensure families impacted by periods of unemployment have the resources they need to provide economic security for their families.

Over the last two years, Mississippi’s overall employment has not advanced substantially. However, the state has experienced an uptick in private sector employment- adding 5,400 jobs since July 2009 with growth throughout most of 2010. Private sector growth has occurred in industries like health care, transportation and business services. In contrast, manufacturing employment and construction employment continue to be at lower levels than two years ago.

While private sector employment subtly advances, public sector employment has fallen by an equal amount. Since July 2009, 5,200 jobs in local and state government have been lost as communities are forced to layoff individuals providing key services because of limited resources. Combining private sector and public sector jobs reveals little change in overall employment across the state since July 2009.

MEETING THE DEMANDS OF WORK, TRAINING AND FAMILY

As the private sector adds employment and shows job openings, training at community colleges can be a key vehicle to employment pathways with wages sufficient to keep a family safe and secure financially. However, adults balancing work and school may have to cut back work hours to attend class and find additional resources for added transportation and child care costs. Across Mississippi, many adults enroll and are academically prepared for courses but struggle to meet the costs of taking classes beyond tuition. To ensure adults can return to school to update skills, pursue new careers, and advance in the workforce, colleges need resources specifically targeted for child care, transportation, and broader wrap-around supports.

Beyond training, local governments will need to restore investments in jobs and public services that are now downsized in the wake of the economic downturn. Without adequate local resources for public investments, job loss in the public sector may weaken the state’s ability to recover the 64,100 jobs it still needs to reach pre-recession levels.

Author: Sarah Welker, Policy Analyst

Comments (0)

DAY 2 OF BUDGET HEARINGS: State’s Fragile Economic Recovery is Slowing, State Economist Reports

September 21, 2011

Filed under: Budget Hearings FY 2013,FY 2013,Jobs,Mississippi Economic Recovery Resources — admin @ 7:46 AM

Tuesday at the Joint Legislative Budget Committee budget hearings, the committee heard from Dr. Darrin Webb, the State Economist from the Institutions of Higher Learning’s University Research Center.

He reported that while the state and nation are still technically in a recovery (not a recession), growth has slowed. Growth in the economy has especially deteriorated over the last six months with employment falling in four of the last five months. Prominent economic forecasting analysts say the chance that the nation will see another recession in the near future is about 40%.

While the state is seeing slight economic growth, factors such as employment numbers and the stagnation in consumer confidence are making it “feel like” we are still in a recession. In Mississippi, jobs are still down by 69,000 from the peak in February 2008.

Average growth in state GDP over the last 20 years in Mississippi, during periods of expansion, has been 2.7 percent. The growth for 2011 is expected to be a modest 0.7 percent which is below the 1.5 percent growth expected for national growth. The state is not expected to meet the state’s 20 year average until at least 2014.

Estimated State Gross Domestic Product Growth Compared to MS Average Growth

All of these economic indicators (and more) will be taken into account as the State Economist and others prepare the Revenue Estimate that will serve as the basis for the creation of a balanced state budget for FY 2013. By all accounts, FY 2013 is expected to be another lean budget year for the state as the fledgling recovery is slowing and federal stimulus funds have ended.

During the remainder of the budget hearings we will likely hear how the cuts-only approach to the state’s revenue problem has threatened vital public services. A balanced approach that includes raising new revenue is required to maintain our investments like education, public safety, and workforce development that ensure our future economic growth.

Author: Sara Miler, Senior Policy Analyst
Source: Joint Legislative Budget Committee, Revenue Discussion, presentation from Dr. Darrin Webb, State Economist, September 20, 2011.

Comments (1)

DAY 1 OF BUDGET HEARINGS: Many State Workers Earn Wages Below Self-Sufficiency Levels

September 20, 2011

Filed under: Budget & Tax,Budget Hearings FY 2013,FY 2013,Income & Working Families,Jobs,Self-Sufficiency — admin @ 10:40 AM

Yesterday, the FY 2013 budget hearings commenced with an overview by the Mississippi State Personnel Board (MSPB). Currently 34% of the state’s workforce is under the purview of the MSPB with the remaining workers including K-12 teachers, IHL, the community colleges and the Governor’s Office / Legislative Branch.

During the hearing, the MSPB highlighted a number of challenges facing the state in the support and recruitment of a competitive workforce:

As of June 30, 2011, state employment experienced the largest decrease in employee numbers in the last decade.
The average salary of our state employees is $34,279—however, 62% of all state employees earn less than the average salary.

With 62% of state employees earning less than $34,279, many state workers are earning wages below self sufficiency levels.
Mississippi’s state employees covered under the MSPB earn significantly less than state employees in each of its border states (between 14.7% less than AR and 31.5% less than workers in LA).
Despite population increases, there are fewer state workers covered by the MSPB than there were ten years ago.

The information shared by the MSPB illustrates that many of Mississippi’s state workers are not earning high wages. In fact – many are not even earning wages that bring their families to self-sufficiency. The wage information on state workers comes in light of two additional and important facts at both ends of career life cycle for state employees:

Over the past 5 years 72% of employee resignations came from individuals that were employed for 5 years or less.
Over the next 5 years, nearly 33% of the workforce will be eligible to retire.

Appropriately, much attention has been paid to the Public Employee Retirement System Study Commission. Any policy changes considered regarding the changing of the Public Employee Retirement System should be reviewed in the context of the total compensation package available to state workers. If Mississippi continues to provide very low wages and cannot offset the low wages with a competitive benefit package, how will it attract the talent needed to provide high quality services to its citizens?

Authors:
Francinia McKeithan, Policy Analyst, SFAI Policy Fellow
Ed Sivak, MEPC Director

Comments (0)

Do Mississippi Universities Have Enough Resources to Build Up the State’s Workforce?

August 26, 2011

Filed under: Budget & Tax,Education,Income & Working Families,Jobs,Workforce — admin @ 10:27 AM

Sid Salter’s column calls attention to a developing funding trend among the state’s public universities. Institutions of Higher Learning like Mississippi State University are increasingly looking to private giving to help address the financial strain that comes when limits in state funding and growing student attendance converge. The column notes that “The troubling part of that budget reality is that the cuts are coming at a time of increased enrollment as students head back to universities to get new skills in the new economy after the prolonged recession.”

More and more students return to university campuses with the hope of increasing skills, earning a degree, and moving into higher wage employment. As high school graduates and adults pursued courses, university enrollment experienced a particularly strong uptick between 2008 and 2010. From the fall of 2008 to the fall of 2010, Mississippi’s public universities enrolled an additional 3,100 undergraduate students, the largest real increase in students among the years charted.

Enrolling more students puts increased demand on a university’s faculty, administrative staff, infrastructure and classroom, library, and dormitory space. Inadequate funding of universities can force schools to pass costs on to students through tuition, over half of which already need to take out student loans to finance their education.[i]

While a challenging funding environment for universities persists, leaders across Mississippi are seeking ways to increase the number of higher wage, higher skill employment opportunities in the state. Increasing such opportunities will mean that employers, workers, and community leaders will depend on the post-secondary education system to meet industry and workforce needs.

The increasing demands set on the state’s university system need to be met with adequate resources. The knowledge that public universities are increasingly turning to private giving to make ends meet underscores the importance of taking a balanced approach that includes raising revenue instead of a cuts only approach that constrains education systems in a time of growing need.

Author: Sarah Welker, Policy Analyst

[i] National Center for Education Statistics. Integrated Postsecondary Education Data System. Financial Aid Data for FY2008-09.

Comments (0)

Debt Limit Deal will Mean More Job Losses for Mississippi

August 22, 2011

Filed under: Budget & Tax,Income & Working Families,Jobs — admin @ 11:18 AM

The large federal spending cuts prescribed in the recent debt limit deal from Congress will mean more cuts for state budgets as well–resulting in more jobs lost in state and local economies.

While specific cuts have not yet been decided on, some general areas are outlined for cuts, including “non security discretionary” spending. According to the Center on Budget and Policy Priorities, “Fully one-third of this category of federal spending flows through state governments in the form of funding for education, health care, human services, law enforcement, infrastructure, and other services that states and localities administer.”

If the supercommittee, the group tasked with finding the cuts prescribed, decides to include Medicaid in the spending cuts, Mississippi will be hit especially hard. Mississippi receives the largest federal Medicaid match rate—meaning it relies on federal funding for a larger percentage of Medicaid funding than any other state.

These cuts will mean more jobs lost on the state and local level. Public sector jobs in Mississippi have already decreased by almost 8,000 in the last year and are now at 2007 levels. At the same time, needs for public sector services like education and health care and infrastructure, have become even more vital for our economc recovery. The chart below shows public sector job levels in Mississippi over the last few years.

Public Sector Jobs in Mississippi January 2007 to Present

Not only do public sector job losses affect the quality of and access to vital public services, they also lower demand for goods and services in the private sector. Ultimately, this drop in demand for goods and services could result in job losses in the private sector. Without new revenue on the federal and state level, these job losses will continue to strain our fledging economic recovery.

Author: Sara Miller, Senior Policy Analyst
Source: Economic Policy Institute

Comments (0)

FIVE FACTS ABOUT JOBS AND UNEMPLOYMENT

August 8, 2011

Filed under: Jobs,Unemployment — admin @ 11:15 AM

Friday’s job report indicated that employers across the nation added 117,000 jobs in the month of July, significantly more than June’s revised growth of 46,000 jobs. With the national jobs report in mind, what trends are seen in Mississippi’s economy? Today’s post highlights five facts on Mississippi’s current employment situation and provides data on changes to unemployment and jobs over the last year.

1) Mississippi added jobs from May to June.
Total non-farm employment grew modestly by 1,600 jobs from May to June, an improvement from reported job losses in the previous month.

2) Mississippi’s overall employment sees little change over the last year.
In June 2010, Mississippi’s overall employment locked in at 1,095,000 jobs. Reports from June of this year show almost no change in the overall number of jobs available, coming in with 500 fewer jobs at 1,094,500.

3) Changes in employment are not equal across all sectors of Mississippi’s economy.
While the overall number of jobs has not markedly changed, some sectors are experiencing growth. Trade, business services, health & education, and leisure & hospitality have all seen employment growth over the last year. In contrast, construction employment has seen very modest gains and manufacturing and government employment both have experienced considerable job losses over the last 12 months. In the last year, local and state government employment has been hit especially hard with a loss of 8,900 jobs.

4) 1 in 10 Mississippians continue to be unemployed and looking for work.
Over the last year, Mississippi’s unemployment rate has been above 10%. The state’s unemployment rate remains above pre-recession levels as many adults continue to encounter hardship in their search for employment.

5) Mississippi’s unemployment rate exceeds national and regional rates.
Mississippi’s unemployment rate of 10.3% in June remains above the rate of states in the South Central region and the nation. However, all three geographies continue to be impacted by unemployment levels well above rates from 2000 to 2007.

The employment numbers, once again, provide a strong case for a balanced approach that includes raising revenues, especially in light of the large number of jobs lost in the public sector.

Author: Sarah Welker, Policy Analyst

Comments (4)

JUNE JOB WATCH

June 30, 2011

Filed under: Income & Working Families,Jobs,Mississippi Economic Recovery Resources — admin @ 10:19 AM

While a previous post focuses on many different measures of Mississippi’s economic growth after the recession, today’s post takes a closer look at employment in particular. Mississippi has gained 8,900 jobs since the state’s employment level reached a low point in February 2010. Incremental increases in private sector employment are a positive sign for the state’s workforce and economy. However, over the last year, slow job growth in the private sector paired with net job loss in the public sector has not produced jobs at the pace needed to replace jobs lost in the recession. The state still has 66,400 fewer jobs than it did when the recession began in late 2007.

To regain pre-recession levels of employment, Mississippi’s economy also needs to add jobs to meet the state’s population growth. The state’s population has growth 1.9% over the three and a half years. Combining jobs lost in the recession and the jobs needed to keep up with population growth means Mississippi’s would need to gain the 66,400 jobs lost in the recession and gain another 21,800 jobs keep up with the growing population, a total of 88,200 jobs according to the Economic Policy Institute.¹

The chart below illustrates Mississippi’s job deficit throughout the economic downturn.

Throughout the spring, storms and severe flooding negatively affected many communities across Mississippi and their local economies; however, rebuilding efforts should provide a lift to impacted regions. Mississippi has also benefitted from the growth of the national economy and projections are that economic growth will pick up slightly in the second half of 2011.²

Looking ahead, leaders should look to rebuild public investments in our state that declined during the recession. Strategies that build revenue and support greater investments in local communities contribute to a stronger economy and support job growth.

Author: Sarah Welker, Policy Analyst

¹Economic Policy Institute. Economic Analysis & Research Network. June JobWatch Data.
²Mississippi Institutions of Higher Learning. University Research Center. Mississippi’s Business. June 2011.

Comments (0)

Connecting Women To NonTraditional Occupations

June 22, 2011

Filed under: Income & Working Families,Jobs,Self-Sufficiency — admin @ 8:30 AM

In Mississippi, 55% of households headed by women live below the self-sufficiency level compared to 32% of male headed households or 18% of households with couples.¹ The portion of female headed households below self-sufficiency rises to 68% for women who are also single parents and financially providing for their children.

In Mississippi, women make up 48% of the state’s labor force.² They work across all industries and at all levels of the wage scale. In many industries, median wages for women fall below men’s wages. However, many occupations that are not usually pursued by women pay quality wages and offer upward career mobility. In an effort to transition more women into employment with higher wages, many states, including Mississippi, are working to connect women to training in fields labeled as nontraditional.

What are some examples of these nontraditional occupations?
The table lists 15 examples of nontraditional occupations across the spectrum of educational attainment for women based on the percentage of women that work in that occupation nationally and details Mississippi wages and estimated annual job openings.

With women comprising almost half of the state’s labor force, strategies that aim to raise women’s wages also increase economic security of children and communities. They also create a more skilled workforce.

Making training accessible to working women frequently requires support with child care, transportation, flexible scheduling and additional support as they enter a field with a traditionally male workforce. Providing training with these supports as well as educational outreach to inform women about the broader spectrum of job opportunities available are both important goals for leaders in education and workforce development.

Want projections more specific to your area? Click here and then select the link for your community college district.

Author: Sarah Welker, Policy Analyst

¹Overlooked and Undercounted: Struggling to Make Ends Meet in Mississippi.

²Mississippi Department of Employment Security. http://mdes.ms.gov/Home/docs/LMI/Publications/Affirmative%20Action/AffAct2010.pdf

Comments (0)

« Newer Posts — Older Posts »