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sent on Thursday July 10
Tonight’s WCAX broadcast included a piece on the new population / demographic data from the Census Bureau. The reporter said, “The census estimates showing anemic growth are reflected in another reality. Vermont’s work force is shrinking — down by 2000 in just the last year alone. Without some kind of upturn, that points to stagnation in Vermont’s economy.”
I’m afraid Mr.Potter is confusing cause and effect and does not understand the data.
First, the “workforce” is not the “labor force” and the “labor force” is not population.
The “workforce” is only those who are “employed”, which includes the self-employed and those working without pay in family businesses. This is not the same as jobs. The number of “employed” Vermonters has declined by 5,400 in the last year. It is the “labor force” that has declined by 2,000, not the workforce.
Note: The number of jobs during the same period is flat. This is not great news but illustrates the sometimes confusing difference between the “workforce” and jobs.
Second, the “labor force” (a term of art for the Census Bureau) only includes those who are working and those who have looked for work in the last four weeks. Not surprisingly, when the job market goes south, many people who want and need work stop looking until circumstances improve. If so, they are no longer considered part of the “labor force” (curious how people can be made invisible). Thus, the “labor force” may decline even though the working age population increases.
In any case, the decline in the “labor force” has nothing to do with population.
The number of Vermonters ages 18 to 64 has increased by over 7,000 during the last five years (estimated to be over 405,000 in July 2007).
In addition, many Vermonters age 65 and over continue to work. National data shows that labor participation rates for older Americans have grown considerably in the last 15 years (34% of men and 24% of women ages 65 – 69 work).
Bottom line: There is no shortage of potential workers; only a shortage of jobs.
The report quoted the Vermont Commerce Secretary Kevin Dorn that “this is just further validation of what Governor Douglas has been saying for years now,” Dorn said, “which is, we’re faced with a declining work force. And what does that mean for our future economic development in this state.”
It is not “validation” – it is just spin. This is a convenient excuse for the failures of this administration. The number of working aged Vermonters is growing. The “labor force” and the “workforce” have declined because we’re in a recession and because there aren’t enough decent jobs. This has been going on for quite some time and has nothing to do with population changes.
It is disturbing that major media outlets do not seek information and perspectives from independent economists and other analysts. With respect, Kevin Dorn is not an economist or a demographer. He is a paid appointee of a governor running for re-election who has not lived up to the promise of Jim = Jobs. Why not contact the Legislature’s economist and get another perspective? When did it become sufficient for a journalist to quote an administration official (during a campaign for goodness sake) without any “balance”. And shouldn’t reporters get a better handle on the data before tackling such important subjects?
Viewers and readers deserve better.