February 2, 2012

More on State Employment: Looking at the Private Sector

Filed under: Economy,OH-02 US House,Taxes & Government — Tom @ 4:30 pm

Let’s compare the increase in private sector employment in states with Republican vs. Democratic governors, right to work and non-right to work states, and the various combinations of the two:


Everything is as expected except perhaps the Democrat-RTW category, which only has two states, and was dragged down by the disaster in North Carolina known as Beverly Perdue.

Differences of 0.3% to 0.4% between GOP- and Dem-governed states and right to work vs. non-right to work states many not seem like much, but it’s what has been happening consistently for a couple of decades, and explains why a lot of the Midwest, whose income and standard of living used to exceed the South by miles, no longer really does.

The difference between the sum of the states and the national report may (emphasis may) indicate a downside surprise in prior-month revisions when tomorrow’s Employment Situation report is released, or possibly an increase in the state numbers when the next related state report is released later this month.

Now let’s look at the top 15 private sector performers, which is deep enough to pick up the great State of Ohio:


Several points:

  • Louisiana, as indicated in my column earlier this week, has done very well considering the barriers the Obama administration has put in the way of full Gulf drilling resumption.
  • Texas’s performance in the private sector compared to overall (where it placed sixth) directly contradicts the silly claim made late last year by a Democratic hack who said that Rick Perry as governor had overseen big growth in public sector employment.
  • Of the top 15, ten are GOP-governed. Eight of those ten are right to work states. Of the five Democrat-governed states, two (KY and WV) are arguably governed relatively conservatively, and DC keeps growing because of Uncle Sam. Washington State is the only real star performer of the bunch.

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