An economist looking at Vermont statistics can see that the state is benefiting from the U.S. economic expansion, which became
the longest on record last summer: There are more jobs, higher wages, fewer children in poverty.1
At the same time, many Vermonters can look at their paychecks and wonder when the recession is going to end. The state’s
economic growth continues to favor those who are well off, while low- and moderate-income families wait for things to pick up.
Both views are true.
In many ways, Americans have been given a gift for the last decade – an economic expansion unprecedented in its length. And many of the indicators of the expansion are quite strong: Unemployment levels are very low, particularly for those with college degrees. The nation continues to add jobs each month, though Ohio cannot consistently say the same. And the economy is growing each quarter.
But by other measures, we are far behind previous economic peaks. At this point in the business cycle, labor market participation (the share of those either working or seeking work) should be higher than ever – it is instead lower than in all but one of the last 40 years. After so many years of growth, median wages should be at an all-time high – they are instead lower than they were in 1979, when workers were much less educated and our economy was much less productive. And at this point in the cycle, our elected officials should have used the boom years to be ready for the inevitable bust, by investing in essentials that benefit us all long term. Instead, nationally and in Ohio, policymakers have neglected critical needs, leaving us less equipped to face any looming downturn.
Op-Ed: “The longest economic recovery on record and a state unemployment rate of 4.3% sounds like a strong foundation for Kentuckians’ prosperity. But a close look at the numbers this Labor Day shows an economy in which many Kentucky communities still lack jobs, especially quality jobs families need to thrive.”
- August 30, 2019
- Laura Dresser & Joel Rogers
Each year on Labor Day, COWS draws a picture of how working people in Wisconsin are faring. The long report, The State of Working Wisconsin, is released biannually on even-numbered years and looks at the economy comprehensively from a working-family perspective. In odd-numbered years, like 2019, we provide a more abbreviated and focused report, called The State of Working Wisconsin: Facts & Figures.
On some of the most well-known economic indicators, there is good news for Wisconsin workers. The unemployment rate in the state has been consistently low. The economy is steadily adding jobs. These are important measures for working people’s lives. When jobs are more available not only is it easier to secure a job, it is also easier to get the hours of work you want, to be able to ask for time-off you need, and to make ends meet. This Labor Day, with the memory of the Great Recession of 2007 now fading from memory, workers across Wisconsin have this good news to celebrate.
Even so, many working families in the state feel stressed and stretched. In this report, then, we provide information on few key long-term trends that are contributing to the stress even in the context of low unemployment. Looking across the last forty years, the challenges working people face are clear. Wage growth has been anemic. Income inequality is reaching new highs. Unions, which have been so critical to supporting workers in this state, are in serious decline. Additionally, state policy, which could be helping to close gaps, is actually exacerbating these trends. From tax changes that reward our highest income families to rejection of health insurance to cover our families in need, policy continues to pave the low-road for our state.