Job Losses During Walker's Tenure Don't Relate to Unemployment Figures

Unemployment percentage figures are not good indicators of job creation, as Wisconsin has had the worst job creation record of all 50 states during Walker's first 13 months in office.

How do job losses during Gov. Scott Walker's administration relate to unemployment figures?

The answer: they don't.

These are two separate numbers that are not related to each other, and not intended to be related.

The number of jobs created or jobs lost is the tracking of the actual number of people "employed."

The unemployment figure is the tracking of the actual number of people "looking for employment."

The key word here is "looking."

If the long-term unemployed have lost all hope of gaining a job, and they have stopped looking and are not counted in the unemployment numbers. 

If Wisconsin residents lose hope of finding a Job in Wisconsin, and move Illinois or Minnesota, both of which are gaining in jobs, they will not immediately show up in the unemployment number, as they are no longer in the state.

The latest figure that shows state unemployment rate of 6.9 percent is so ridiculous it is beyond believable. The Federal Reserve policy in the past has been to raise interest rates if the unemployment rate fell below 6 percent, for fear of inflation, and to discourage additional hiring.

A 6.9 percent rate would mean that Wisconsin's economy is so hot under Federal Reserve thinking, that inflation would be a bigger concern than the current "slump" or "recession."

Looking at the latest "employment" figures, during Walker's administration through December, there was a net job loss of 9,700 jobs. It does appear that the job increase in January turned that number to a net job gain of about 6,000 jobs.

With "Wisconsin open for business" under Scott Walker, through his first 13 months, Wisconsin gained 6,000 jobs, while our neighboring states all had much higher job gains — Michigan with 98,000 jobs, Illinois gaining 49,000 jobs and Minnesota with 56,000 jobs.

"Open for business" may make a nifty political slogan, but it is obvious that employers do not like the business plan that Walker has for Wisconsin, as they are doing their hiring in other states than ours.

In fact, of the 50 states, Wisconsin had the worst job record under Walker's in his first 13 months.

If Walker is not recalled from office in the upcoming election, and he continues with his job-losing economic program, will the last person to leave Wisconsin, please turn out the lights?

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

David Tatarowicz March 20, 2012 at 04:26 PM
@Keith I have worked in a wide variety of jobs including both private and public sector. Some Union, some Non-Union. I have been in executive management in both Union and Non-Union companies. I would not dispute that Union Workers always want as much as they can get --- and that Management always wants to give as little as they can. Both sides are elected --- Unions Members vote for their representatives, Stockholders vote for their Board of Directors who appoint the Management. The beautiful part about our government in America is the Balance of Power and the Dynamic Tension that our Founders wrote into the branches and working of the government and which carries over to the parties. I for one am extremely cynical of All Government and Politicians, and I appreciate this system. It doesn't work very fast, and often makes mistakes, but in the long run, things seem to come out right. It is the same for Workers and Management --- in a Non Union workplace, the Workers do not enjoy a participation --- in a Union Workplace, they have some say. Now if Management is lax and gives too much to the Unions -- shame on them -- and if the Union Leaders are too greedy and try to take too much and hurt the viability of the company -- shame on them too. They are suppose to be at odds -- but also they both need to know when to compromise. UPS is the best example I can think of as this Union - Management working in the long run to build a fantastic company.
CowDung March 20, 2012 at 04:36 PM
...but there is a big difference between private sector unions and public sector unions in the area of 'Dynamic Tension'. In the private sector, there is always an adversarial relationship between labor and management, with each trying to negotiate for their own best interest. This tends to result in negotiations that are pretty fair to all involved parties. In the public sector, the guys negotiating with the unions are often people that were elected with the help of union money. That adversarial relationship has been compromised. Being beholden to the unions isn't exactly a good position for the person that is supposed to be representing the interests of the taxpayers, and has indeed resulted in compensation packages that are beyond reasonable in many cases.
David Tatarowicz March 20, 2012 at 04:47 PM
@CD --- yep, Unions due tend to give money in hopes it will help them politically --- just as the Koch Bros and others give to their political friends in hope they will help to destroy Unions. Financially speaking, I don't think either side wins in such situations -- you can only run so many ads before you hit the point of diminishing returns. One cancels out the other. Ultimately, just like the Stockholders elect their Board of Directors based upon what they want the Board to do --- so WE the Citizens have the power of our Vote to elect those who are bargaining with the Unions. Walker went overboard in attempting to destroy the Unions "Which Did Not Support Him" -- obviously he liked the Cops and Firefighters -- he did not try to destroy them --- Because they gave him MONEY !!! Now the Voters have to decide --- allow some Unions to be destroyed at a whim --- or continue with Bargaining --- and By the Way --- I am not one to coddle Unions, I have been on record long before Walker that I think our elected officials often give too much. I believe in Hard Line Bargaining --- Yet knowing how to compromise, so each side has received a Fair Deal.
Keith Hendrickson March 20, 2012 at 05:03 PM
Good point David but CowDung is right also. There is no such thing as bargaining when the unions paid off the elected officials that is supposed to be looking at the best interest of the state. Also people need to stop with this Koch brothers conspiracy. Walker gets money from Koch brothers during the campaign yes but is no way getting influenced by them. Everything he has done he campaigned on. Look at the October 2010 newsletter of the WEAC website. This is nothing but a do over election paid by the unions. The majority of the people didn't fund this because Walkers approval numbers are going up every money as people are seeing It's Working. Why you think the unions want to rush into this. Silent majority is winning the minds over the loud sheep minority.
CowDung March 20, 2012 at 05:10 PM
The cops gave Walker the grand total of $1,100 for his campaign. The firefighters donated $0. Barret (not Walker) was endorsed by 300 or so fire and police locals for the governor's race. Walker was endorsed by 4. The claim that Walker was paying them back for their support is false. The steps that Walker took to end collective bargaining in the public sector unions was not a whim. It was long overdue. Our elected officials often give too much because they know where their campaign money comes from. They have to play ball with the unions or they don't keep their job.


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