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Dick Davis Column: Fascinating Facts and Figures |
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Written On: September/October 2005 |
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Written By: By Richard S. Davis - President, Washington Research Council |
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Every year, I look forward to the new edition of the WashACE Competitiveness Redbook. This annual publication gives us a chance to see how Washington compares with other states and how we compare with our own performance in prior years. Here’s a sample of some of what you’ll find in the 2006 Redbook.
Unemployment Insurance
Evidence of a stronger state economy and signs that policy changes are beginning to show results can be found in the unemployment insurance data.
In 2003, the unemployed worker drew benefits for an average of 19.2 weeks; in 2004, that dropped to 18.7 weeks. For 2005 (these numbers are all taken from first quarter records), the average fell sharply to 16.3 weeks. We still rank ninth in the nation, but the trend is better. Further, the average weekly benefit went from $312.10 in 2004 to $284.35 in 2005, from sixth in the nation to 11th.
Some, perhaps most, of that movement reflects job creation in the state, as laid-off workers are recalled by their employers or more easily find new jobs. Washington gained more than 52,000 non-agricultural jobs from April 2004 to April 2005, ranking 12th both in the pace of job creation and in the total number of jobs added.
But credit should also be given to governors, legislators and business leaders who have pushed for UI reform, not solely in legislation but also in improved administration. More work will be done on UI in the coming months. Even with our recent improvements, Washington remains far from the mainstream on this critical measure of employer costs.
Minimum Wage
Washington continues to have the country’s highest minimum wage, $7.35 per hour, followed by Northwest neighbors Oregon ($7.25) and Alaska ($7.15). We cannot say that we’re leading the nation, because few seem willing to follow: Only 14 states have set their minimum wage above the federal minimum of $5.15.
Government Employment
As a share of population, state and local government employment declined slightly, from 52.5 employees per 1,000 residents in 2002 to 52.1 in 2004, dropping us from 36th to 38th in the nation. We rank seventh in pay per government employee at $47,942, compared with a U.S. average of $42,497.
Data lags from the federal government continue to frustrate us, as we’re unable to get timely comparative information on state and local government taxes and spending. Where the feds let us down, however, we rely on estimates from credible private sources.
Taxes
According to the Tax Foundation, state and local taxes in 2005 claim about $100 of every $1,000 of personal income, ranking us 24th in the nation. On a per capita basis, we rank 13th, at $3,530.
New data from the Council on State Taxation shows that Washington businesses pay 50.1 percent of all state and local taxes, the 10th highest share in the nation. Folks who follow this number will notice a decline. Our tax burden didn’t lessen, the methodology changed. COST did not include workers' compensation premiums, which are notably difficult to compare, in their measure of taxes this year. Business taxes in Washington amount to 5.7 percent of gross state product, ninth in the nation and more than a 20 percent higher than the U.S. average of 4.7 percent.
Student Import/Export Ratios
A new table this year presents the "import/export ratio" of college bound students, using information from the U.S. Department of Education. Washington is a net exporter: For every 100 Washington students leaving the state for college, we bring in just 63 from out of state. Only five other states export more students. Utah, at the other extreme, imports 375 students for every 100 that leave. Do such policy choices have consequences? What are they?
As this example shows, the data answer questions and inspire new ones. Beginning with the facts, we can more confidently move to a discussion of their implications. And that’s the joy of the Redbook.
Copies of the 2006 Competitiveness Redbook will be available from AWB in late September. The cost is $7.00. Call (360) 943-1600 to order a copy.
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