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

January 6th, 2012

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 EMPLOYMENTThe 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.