South By North Strategies, Ltd.

Repackaging Economic Development

The Washington Post reports on how some state governors are repackaging existing business incentives and tax cuts as “jobs” programs.

Economists and some proponents of governors’ plans say those pushed by [Maryland Gov. Martin] O’Malley, [Virginia Gov. Robert] McDonnell and others are likely to produce fewer jobs than advertised and exaggerate what states can do to spur job growth. None, for example, appears able to significantly lower their states’ unemployment rates this year. And with so many states trying similar strategies to grab a finite number of jobs, one governor’s win is bound to be another’s loss.
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“I’ll be honest with you, these things cost money. And given the fiscal situations they are in, there’s not a lot they can do in terms of job creation,” said Raymond C. Scheppach, executive director of the National Governors Association. He added that he has been surprised by governors’ boisterous assertions.

Around the Dial – Feb. 18

Economic policy reports, blog postings, and media stories of interest:

• David Leonhardt says that job data show that the stimulus helped.
• Naked Capitalism argues that the Fed’s exit strategy is premature.
• Paul Waldman looks a the arguments for selling insurance across state lines.
• North Carolina’s banking commissioner calls for reforms.

NC Benefit Claims: Week of 1/30

For the benefit week ending on January 30th, 17,977 North Carolinians filed initial claims for state unemployment insurance benefits, and 205,904 individuals applied for state-funded continuing benefits. Compared to the prior week, there were fewer initial and continuing claims. These figures come from data released today by the U.S. Department of Labor.

Averaging new and continuing claims over a four-week period — a process that helps adjust for seasonal fluctuations and better illustrates trends — shows that an average of 19,986 initial claims were filed over the last four weeks, along with an average of 207,857 claims. Compared to the previous four-week period, both initial and continuing claims were lower.

One year ago, the four-week average for initial claims stood at 29,355 and the four-week average of continuing claims equaled 202,136.

The graph (right) shows the changes in unemployment insurance claims (as a share of covered employment) in North Carolina since the recession’s start in December 2007.

Although new and continuing claims appear to have peaked for this business cycle, the claims levels remain elevated and point to a labor market that remains extremely weak. Especially troubling is the high level of continuing claims, which suggests that unemployed individuals are finding it extremely difficult to find new positions.

The Recovery Act Turns One

A new report from the Center for American Progress estimates that the federal recovery act already has created or saved 1.8 million jobs across the country. And as the map below shows, the act has helped to save or preserve 62,000 jobs in North Carolina.

Around the Dial – Feb. 17

Economic policy reports, blog postings, and media stories of interest:

• Dean Baker says the folks who missed the bubble want your social security.
• The Triangle Business Journal shows at home sales data for Raleigh-Durham.
• The UNC Center for Community Capital asks about the foreclosure generation.
• Economix ranks America’s happiest cities and states.