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The Delaware Job Magnet is Waning 20 March, 2008

Posted by David Anderson in Economic Policy, State.
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Our state has a relatively low unemployment rate.  This is good news.  The bad news is that according to the State’s economic report written in 2007, our job growth has been weakening consistently over the last decade and a half. We are in the bottom 1/3 of the nation in job creation. This is evidence that we are running on the fumes of the DuPont reforms 30 years ago.  It is time to refuel the tank.  Here is the money quote from the report.

Looking at the Local Area Unemployment Statistics (LAUS), the resident employment data for the state, Delaware’s economy looks rather healthy. The annual average unemployment rate dropped from 4.0 percent in 2005 to 3.6 percent in 2006, and it has been even lower in 4 out of the first 5 months of 2007. All of these rates are substantially below the national unemployment rate. As measured by this data series, employment growth has averaged 1.89 percent per year in Delaware over the last 30 years. It was 1.88 percent in 2005, and 2.12 percent in 2006, and has only just fallen below that, averaging 1.67 percent through May, 2007. On the other hand, a look at job growth in the state yields a different picture. Delaware has added jobs at a 2.06 percent annual rate since 1976. It last surpassed that rate in 2004, and growth has steadily slowed since then, to a current 0.82 percent rate in 2007. Growth over the last 18 months has been positive, but only about half the long-term rate – not enough to be considered healthy.Delaware’s 1.18 percent job growth from 2005 to 2006 placed it just in front of the bottom one-third of states in this regard. There were 33 states with faster job growth, and 16 with slower job growth. With the exception of Louisiana and Mississippi, the two states hit hardest by Hurricane Katrina, all of the other states with slower job growth are contiguous and located in the northeastern part of the US. The states with job growth slower than Delaware’s were all of New England, New York, New Jersey, and Pennsylvania, then Ohio, Kentucky, Indiana, Michigan, and Wisconsin.

Delawareans seem to be like the proverbial frog in gradually heating water. The Minner-Carney regime is slowly strangling job creation. Will we feel the heat before we are doomed?

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1. frog - 20 March, 2008

[…] single beadless point the chance to curl right up. I’m not entirely sure abocrazylanea.typepad.comThe Delaware Job Magnet is Waning Our state has a relatively low unemployment rate.? This is good news.? The bad news is that […]


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