Saturday, October 23, 2021

Red states lead in employment, blue states support for intensification of rebound: report

Overall, red states reported the lowest rates of unemployment in the United States in August, although blue states led in terms of the sharpest reduction in their rates of unemployment in the past year, new government data shows.

The top seven states with the lowest unemployment rates in August were Alabama (3.1 percent), Idaho (2.9 percent), Nebraska (2.2 percent), New Hampshire (3.0 percent), South Dakota (2.9 percent), Utah (2.6 percent). and Vermont (3.0 percent), according to a September 17 release of state-level unemployment data by the Commerce Department.

With the exception of Vermont, which has a Democrat-controlled state House and Senate and a GOP governor, all have a Republican trifectus, meaning that Republicans hold a majority in the governorship, a majority in the state Senate, and a majority in the state House.

“More than twice as many GOP-led states have below average national unemployment rates than Democrat-led states. Republican-led states’ consistent, top-performing is no coincidence,” Republican Governors Association (RGA) wrote in a tweet, Parsing the data by number of states above and below the 5.2 percent national unemployment rate.

The seven states with the highest unemployment rates in August are Hawaii (7.0 percent), California (7.5 percent), Connecticut (7.2 percent), Illinois (7.0 percent), New Mexico (7.2 percent), New Jersey (7.2 percent), and New York ( 7.4 percent). All seven are the Democrat trifectus.

Meanwhile, the Blue States led the sharpest drop in the unemployment rate in 12 months through August, with the top seven led by Democrats. California’s unemployment rate fell 4.8 percentage points over the past year, Hawaii fell 7.1 percentage points, Illinois fell 4.1 percentage points, Massachusetts fell 4.3 percentage points, Nevada and Rhode Island both dropped 6.8 percentage points And New York fell 4.3 percentage points.

The base effect is a likely explanation for why the year-over-year rebound in Blue State employment was so pronounced. there are blue states more dependent On service industries, particularly those related to travel, leisure and hospitality, which were hardest hit by the pandemic, driving unemployment more rapidly than in red states, where manufacturing and agriculture play a larger role.

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In addition, blue states generally took more aggressive steps in response to the pandemic, with Democrat leaders enacting stricter measures than their Republican counterparts, which may have pushed the unemployment rate artificially higher in blue states. Is. Last October, a study of lockdown measures across states was conducted by researchers at personal finance site WalletHub, concluding that the states with the most restrictions have the highest unemployment rates. An easing of restrictions and an economic reopening could lead to a proportionally larger jump in employment.

The Commerce Department’s state unemployment report comes as Federal Reserve officials use labor market data to calibrate the timing of rolling back crisis-era support measures for the economy. In response to the outbreak, the Federal Open Market Committee (FOMC) slashed interest rates to near zero and launched a massive bond-buying program, monthly purchases of about $120 billion in Treasury and mortgage securities. While rate hikes are still a way off, Fed officials are considering reducing asset purchases, with investors set for a possible taper announcement at next week’s FOMC meeting.

Although taping is expected to begin this year, the timing of the announcement, as well as the wind speed, has not yet been decided.

Patrick Harker, president and CEO of the Federal Reserve Bank of Philadelphia, told Nikkei in an interview on September 13 that he favors moving quickly toward a taper announcement.

“I favor moving to a tapering process sooner rather than later. When exactly this happens, the committee needs to decide. I hope sometime this year we will be able to start the taping process,” he told the outlet.

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Tom Ozimek has an extensive background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he’s heard from Roy Peter Clark: ‘Hit your goal’ and ‘Leave the best for last.’

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This News Originally From – The Epoch Times

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