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Monday, October 15, 2007

Did Governor Hoeven Really Create 25,000 New Jobs?

Governor John Hoeven isn’t shy about about the number of new jobs in North Dakota, nor is he shy about attributing the creation of those jobs to himself and the tens of millions of dollars he’s spent on his “Centers of Excellence” and other initiatives.  The Governor is saying that some 25,000 new jobs have been created in the state since 2002, and that his policies deserve the credit for that.  But recently the Bismarck Tribune asked in editorial for proof that the tax dollars the Governor has been spending are, in fact, creating the jobs he’s claiming.

That is an excellent question, because it begs a number of other questions as well.  Such as: What criteria must be met before a new job can be attributed to the Governor’s spending?  And has the benefit of those new jobs - those that actually can be attributed to the Governor’s spending of our tax dollars - been enough for the citizens of North Dakota to justify that spending in the first place?

And beyond those questions, the job numbers the Governor is claiming don’t quite pass the smell test for a couple of reasons.

For one, North Dakota’s population growth has been anemic, so where have the 25,000 new people to fill these jobs supposedly created since 2002 come from?  According to the US Census Bureau the state actually lost some 7,000 citizens from 2000 to 2005 and is only projected to add about 1,200 citizens between now and 2010.

For another, according to North Dakota Job Service the number of people employed in the state has only increased from 333,605 in 2002 to 346,359 in 2006.  That’s a difference of only 12,754, or roughly half of what the Governor is claiming.  Also per North Dakota Job Service, the number of people unemployed in the state has fallen by only 630 people.

So how is the Governor coming up with that “25,000 new jobs” number?  Is he only counting jobs added to our economy during his time in office and not subtracting jobs lost (perhaps because of high taxes perpetuated by his spend-happy administration)?  And of those 12,754 jobs the Job Service numbers show, how many of them can actually be attributed to the Governor’s policies and not, say, the resurgent oil industry for instance?  Something the Governor isn’t really all that responsible for?

I’m not a statistician, so perhaps there is a perfectly reasonable explanation for why the Governor’s numbers aren’t matching mine.  But it would be nice to hear the Governor or one of his representatives offer that explanation, and do so before one more tax dollar is spent on his economic development schemes.

Comments

Avatar for FreeRepublicans.com

And how many are BS part-time jobs for high schoolers, college kids, or adults that have to work 4 jobs to pay the rent?

FreeRepublicans.com on October 15, 2007 at 08:44 am
Rob
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BS part-time jobs?  If we got rid of the jobs you’re talking about, where would the college kids and high school kids work?

The labor market is like any other market.  Supply and demand.  It doesn’t matter what kind of jobs are created, as long as demand for labor goes up so do wages and everything else.


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

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Rob on October 15, 2007 at 10:13 am
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Rob, Governor Hoeven has not only held the line on taxes, he has cut taxes since he has been in office.  He has also worked to create a business climate and an economy in North Dakota that allows for growth.  The incentives that have been put forward in energy, value-added agriculture and technology have been key to growth in those sectors.

North Dakota is competing in a global marketplace for new businesses and jobs.  If North Dakota puts its head in the sand and doesn’t continually strive to be the best state for businesses, we don’t take part in the growth.  South Dakota has no state income tax, yet according to Creighton University our economy is doing much better than theirs.  This shows that simply eliminating state income taxes is not enough in today’s economy.

Duane on October 15, 2007 at 02:20 pm
Avatar for J

Rob,

According to Job Service North Dakota’s Labor Market Information Center, CES unit, North Dakota had 352,900 employed in 2006.  In 2000, the year Governor Hoeven was elected, North Dakota had 327,700 employed.  That is an increase of 25,200. I would include a link to the information, but Job Service doesn’t have a good way to link to their data.

I’m not sure where the reference point of 2002 came from, but there has been a net job gain of 23,100 since 2002.

The job growth is one of the reasons why people are questioning the accuracy of Census estimates.  Back in the 90s the Census estimates showed population decline, but when the 2000 Census was taken there was actually an increase in population between 1990 and 2000.

J on October 15, 2007 at 02:22 pm
Rob
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Here’s the table of data I’m getting from Job Service (ND WIN):

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That’s tell me that we’ve only added about half the jobs Hoeven is claiming.

Something screwy is going on, and I think it has to do with the way Hoeven is counting these jobs.  We should be going by raw total number people employed numbers, and I don’t think he is.

And I’m going back to 2000 now.  Not sure why I only went to 2002 in the original post, but as far as numbers go it isn’t making a difference.

I flat-out don’t believe that there are 25,000 new jobs in the state under Hoeven, and I also don’t believe Hoeven is responsible for even a fraction of those that have been created.


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

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Rob on October 15, 2007 at 02:34 pm
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Rob, Governor Hoeven has not only held the line on taxes, he has cut taxes since he has been in office.  He has also worked to create a business climate and an economy in North Dakota that allows for growth.

This is utter baloney.  Hoeven has expanded the size of our state government and increased spending, most notably by 24% in the last session.  And his economic development has consisted mostly of the government giving special grants, loans, etc. to business picked out by the politicians.

This is not how free markets work.


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

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Rob on October 15, 2007 at 02:37 pm
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This is where I’m getting my employment data, by the way.


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

Rob’s recently listened-to songs:

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Rob on October 15, 2007 at 02:38 pm
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Rob,

Job Service’s website has different sources of data including Current Employment Statistics (CES), Quarterly Census of Employment and Wages (QCEW), and Local Area Unemployment Statistics (LAUS).

The difference between your numbers and the numbers cited by Governor Hoeven are that you are citing two different sources.

J on October 16, 2007 at 10:39 am
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