The unemployment rate in Louisiana has increased for 6 straight months while the national unemployment rate has been going down. According to the Louisiana Work Force Commission unemployment for December 2012 was 5.6%, for January 2013 it was 5.9%, for Feb. 6%, for March 6.2%, for April 6.4%, for May 6.8%, for June 7% and July 7%. As of this writing August unemployment numbers have not been reported.
In two articles published August 30 in the Times Picayune and the New Orleans Advocate a study released by the Louisiana Budget Project reported the following. Worker productivity has increased 35% since 1979 but the median income in Louisiana has been stagnant and has increased only 1%. That workers in the top 10% saw their income increase in the past 34 years and the bottom 10% saw their income drop. Over all manufacturing employment in Louisiana has declined 10% since 2008 and 20% since 2000.
There has been no project boom in Louisiana to reverse or counter the larger shift from higher to lower wage jobs or for pay to rise with productivity. Louisiana needs to create 4000 jobs a month to keep up with the growing population of working age adults and are now creating half that number now.
This report actually is a mirrow image of several recent reports on the national economy that showed how the top 2% of wage earners enjoyed the benefits of increased productivity over the past 30 plus years while the average wage earner saw their wages stand still even though they made the increase in productivity happen.
These reports confirm what this writer has commented on here in PolitiDose for the past few years. That wealth is being transferred from the middle class to the wealthy. The increase in production benefits are going to the CEO's and Exectives and not the workers who are loosing benefits while their pay is going no where. It is the robbing Peter to pay Paul effect and Paul just happens to be the wealthy.
Former Labor Secretary Robert Riech who served during the Clinton administration recently reported the same information and pointed out the Walton family who own most of Walmart's stock earn more than the bottom 40% of U.S. workers. The reports are not a pretty picture of what has been happening to middle class income nationally or in Louisiana. Just think how bad it would be had President Clinton not been elected. The middle class made its best gains in income on Clinton's watch during that 34 year span and in just about every area.
Dennis Lockhart, President of the Federal Reserve Bank of Atlanta on a recent visit to New Orleans in a Times Picayune article of September 6 said Louisiana has been beating the nation on indicators such as unemployment. Is it any wonder why people are so poorly informed on the issues when a Frederal Reserve Bank President makes such a false statement. The nation's unemployment rate today is lower than it was when President Obama took office, but Louisiana's unemployment rate is higher today than it was when Gov. Jindal took office. (See previous commentary here in PolitiDose concerning the subject matter.)
The economic facts tell a very different story than Gov. Jindal's press releases or Mr. Lockhart's statement.
This commentary written by John Lucia.
