Thursday, June 22, 2017

Why you should ignore Scott Walker’s rosy economic outlook

Underemployment remains a problem in Wisconsin — and that’s why jobs numbers matter

Scott Walker is making much ado about the unemployment rate in Wisconsin. And at first glance, it does look pretty great. Here’s his latest radio address spot, courtesy of the Capital Times’s Jessie Opoien:
A 3.1 percent unemployment rate, again, sounds great. But there’s important things to remember here...first, that the unemployment numbers count people as employed even if they’re working part time.

There isn’t a reliable measure of part time workers that we can look at. So, it’s important to look at the underemployment rate also when we look at how much things have improved.

That rate, also known as the U-6 rate, is actually hovering around 7.7 to 8.0 percent, meaning that nearly 4 to 5 percent of the workforce that Walker is touting as employed isn’t getting as much work as they wish they could (full time). In total, the Bureau of Labor Statistics estimates that nearly 100,000 individuals were involuntary part time workers in the state of Wisconsin.

This leads into the next point. In order to fix that problem of underemployment, there has to be new jobs created in the state, and frequently. This is true with any economy: a certain percentage of people, at any given time, want to be able to change career paths or just get a different job with a new employer. So, new jobs have to be created to keep up.

That’s not possible when new jobs aren’t being created. And with less than 12,000 jobs being created for all of 2016, it’s clear that Wisconsin isn’t keeping up with the demand for fluidity in the job marketplace.

It’s no wonder that millennials are seeking work elsewhere, as I pointed out earlier this month. Job opportunities are low, wages are dropping, and what job opportunities do exist are on many occasions part time jobs.

Scott Walker should be proud of the 3.1 percent unemployment rate. But that rate is hardly indicative of the overall economic picture. Voters should remind him of where the state really stands when 2018 rolls around.

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