Yesterday's news that our state's unemployment rate ticked upward in December is not good news. The new numbers show that it is 9.5% on average across Washington State. Put simply, if you walk down the street of any city or town in our state, one out of 10 working-age man or woman has no job.
That's the official figure, but that number does not include the jobless people who have exhausted their benefits or have given up the search for new employment. For example, the Dept. of Employment Security reports: "An estimated 334,265 people (not seasonally adjusted) in Washington were unemployed and looking for work in December. A total of 287,086 people received unemployment benefits from Washington state last month."
Of equal concern was a story in the New York Times on January 16 indicating that unemployment rates for couples with children under age 18 had doubled from 2007 to 2009. According to the Times, "The loss of jobs also meant that the percentage of couples with children in which both parents had jobs declined, more often than not because the husband was out of work." In 2007, 67% of those married-couple households had both parents employed. By 2009, the percentage had declined to 59%.
In some parts of Washington, the unemployment rate is higher than the average. For example, the U.S. Dept of Labor reports that in the Longview metropolitan area, the unemployment rate was 12.9% in November while the Portland-Vancouver-Beaverton area, it was 10.8%. That's a lot of people without work and that doesn't reflect the number of working people in the private sector who have seen their work hours, pay and benefits reduced--unfortunately the only option in far too many cases to maintain a business and jobs.
For many employers, their unemployment taxes for 2010 skyrocketed--some by more than 1,000%. That is on top of an average 7.6% hike in workers compensation premiums which also kicked-in on January 1. That is bad news because, while the economy shows signs of improvement, for many job providers is still bumping along the bottom.
What can the Governor and lawmakers currently meeting in Olympia do about it? On unemployment, don't add more costs to employers by increasing benefits as union officials want. Doing so will raise UI taxes to struggling employers.
The trust fund--the bank account which employers fill and from which weekly unemployment checks are cut--is dropping like a rock. Don't put us in the situation like the early 1980s when the fund became insolvent and the state had to borrow from the feds. Employer taxes went up dramatically to pay benefits, replenish the trust and to repay Uncle Sam WITH INTEREST.
Second, reform workers comp. The Governor and Democrat leaders are saying wait until after the legislature adjourns and then we'll address it. That maybe too late because the Dept. of Labor and Industries (L&I) will be well into the rate calculations for 2011 and those new rates for next year could be well into double-digit increases--not a pleasant thought for those hitting the campaign trail next summer.
Remember, a rising tide lifts all boats and a rebounding and growing economy and private sector will add jobs, consumer spending and tax revenues to run our schools, fire departments and law enforcement. The costs of keeping a shop open or a manufacturing plant humming impact whether or not those operations successfully continue and keep people working. Killing the goose which lays the golden eggs is not an option---remember costs matter more than ever today.
As we all learned from last Tuesday's election.....People want a healthy economy and a job!
Don C. Brunell, President (DonB@awb.org)
