GCO analysis: Nearly half a million Georgians have given up on work

by Georgia Center for Opportunity | Nov 8, 2022

GCO analysis: Nearly half a million Georgians have given up on work

PEACHTREE CORNERS—A new analysis from the Georgia Center for Opportunity shows that around 454,100 Georgians are missing from the labor force. This figure comes even as pundits celebrate a statewide and national unemployment rate that remains at historic lows.

The 454,100 figure developed by the GCO team does not include those unable to work, those who were retired, those in school or college full-time, and full-time caregivers for minor children in the home. In other words, that nearly half-million figure is people who are able to work but have simply decided to detach from the labor force altogether, for some other reason.

“The startling statistic shows a hidden story behind the unemployment rate that reveals deeper cracks in the labor market that will cause problems for years to come, both in the economy and in individuals’ lives,” said GCO director of research Erik Randolph. “The reason why this matters is not strictly an economic one — we know that these individuals’ giving up on work has profound social, psychological, and relational impacts that extend well beyond the pocketbook.”

The U.S. Bureau of Labor Statistics announced Nov. 4 that the unemployment rate rose to 3.7%, which is a tick higher than the previous low of 3.5% but still at historic lows. Georgia’s unemployment rate stands at 2.7%, 14th best in the nation.

The troubling trend is in the labor force participation rate, however. This rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether. The U.S. labor force participation rate was at 62.2% in October, down from a pre-pandemic rate of 63.4% in February 2020.

GCO research has found that when individuals are separated from work, they lose more than just monetary compensation or the food, shelter, clothing, and other basics that money can buy. They also face a loss of social connection, meaningful activity, self-respect, and overall purpose.

Randolph developed the figure using microdata accessed through the IPUMS-USA at the University of Minnesota. The tabulations come directly from the survey the federal government uses to calculate unemployment numbers. It counts those who are not in the labor force and are not retired, are not unable to work due to disability or sickness, are not in school or college full time, and who don’t have a child under 18 years of age while living with a married or unmarried partner.

Randolph also found that 208,600 Georgians fall under the official definition of “unemployed” and an additional 147,900 Georgians are currently working part-time but in search of full-time work.

Issues impacting voters ahead of the midterm elections

by Georgia Center for Opportunity | Oct 26, 2022

Issues impacting voters ahead of the midterm elections

Joshua Crawford, Senior Fellow of Public Safety Policy, joined FOX 5 to discuss issues about high-crime and criminal justice policy impacting voters ahead of the midterm elections.

Watch the full interview

Labor Participation Rate Remains Abysmal, but Former Inmates Provide Solutions

by Georgia Center for Opportunity | Oct 20, 2022

Labor Participation Rate Remains Abysmal, but Former Inmates Provide Solutions

Official government unemployment numbers remain low, but the abysmal labor participation rate is a story too often ignored. Amazingly, The Washington Post notes that the prime male work rate is below 1940 numbers, the tail end of the Great Depression when unemployment was almost 15%. Only 62% of the eligible labor force is currently in the workforce.

Read the full article here

Georgia policy group says inflation is not conquered, is becoming ingrained in economy

by Kimberly Sawatka | Oct 13, 2022

Georgia policy group says inflation is not conquered, is becoming ingrained in economy

The country has not conquered inflation, and it has become ingrained in our economy, the research director of a leading Georgia policy group said.

On Thursday, the U.S. Bureau of Labor Statistics announced that the Consumer Price Index for All Urban Consumers rose 0.4% in September. The year-over-year inflation rate stands at 8.2%.

“The Biden administration prematurely declared victory in August after passage of the Inflation Reduction Act,” Erik Randolph, director of research for the Georgia Center for Opportunity, said in a statement. “But as we’ve seen in the weeks since, inflation has a strong foothold and isn’t going away anytime soon.

Read the full article here

Stress cracks in the labor market

by David Bass | Sep 26, 2022

Stress cracks in the labor market

Key Points

There are more jobs available in America than ever before.
There are more people NOT working in America than ever before.
At Georgia Center for Opportunity, we have created a two-step process to create meaningful, self-supportive work.

“Never has work been so readily available in modern America; never have so many been uninterested in taking it.”

That’s a key point made by social scientist Nicholas Eberstadt in a new column for The Wall Street Journal. Eberstadt points out that even in an environment with historically low unemployment, the truth is that millions of workers are missing from the labor force.

“We now face an unprecedented peacetime labor shortage, with employers practically begging for workers, while vast numbers of grown men and women sit on the sidelines of the economy—even though job applicants have more bargaining power in the ‘Great Resignation’ than at any time in recent history,” he writes.

Eberstadt points to the unprecedented federal government response to the pandemic as a key driver of the current quandary: stimulus payments, expanded child tax credits, and heightened unemployment benefits, to name a few.

The problems were evident before the pandemic but became worse after. “The current manpower shortage highlights the new face of the flight from work in modern America,” Eberstadt writes. “With pre-Covid rates of workforce participation, almost three million more men and women would be in our labor force today. Prime-age men account for only a small share of this shortfall: Half or more of the gap is owing to men and women 55 and older no longer working.”

Eberstadt has also written quite a bit on how people are spending their time as non-workers:

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020—possibly a new record in the inactivity olympics and nearly 300 hours more than a typical fulltime job requires in year. Prime-age women who are both work-free and child-free exhibit similar traits—especially those neither employed nor in education or training (called NEETs by economists). In 2020 they reportedly devoted even less time to household chores, taking care of other household members or getting out of the house than prime male labor-force dropouts—and allocated almost 11.5 hours a day to “personal time” (mainly sleep), more than any other group.”

“Men 55 to 64 who were neither working nor looking for work … were kings of the screen, clocking in a self-reported 2,400 hours during 2020.”

So, what’s the bottom-line conclusion of all of this? Here at the Georgia Center for Opportunity, we are striving to create a culture that values work and helps all people — particularly disadvantaged populations — find meaningful, self-supporting work. There is a two-step process here:

Policy solutions

A big problem standing in the way is a failing welfare system, one that traps people instead of serving them. Even if well-intentioned, the existing collection of complex and inefficient welfare programs is vast, disconnected, and dehumanizing. Tragically, it deprives people of the hope and dignity that comes with steady work and the government’s response to the pandemic only made these problems worse. That is why GCO advocates for welfare reform that streamlines and simplifies the safety net, while doing away with benefit cliffs that punish people for earning more and climbing the economic ladder.

Community solutions

The solutions don’t stop at policy reform, however. We also need on-the-ground help. That’s what GCO’s BETTER WORK program is all about. Now operating in Gwinnett County and Columbus — but soon spreading to other areas of the state — BETTER WORK is about collaboration between key stakeholders in our communities to help people find work.

The mission of BETTER WORK has never been more important than it is today. As we continue to emerge from the economic fallout of the COVID-19 pandemic, the labor market will keep shifting in significant ways. No matter what that looks like, BETTER WORK’s approach and mission will play an important role.

Randy Hicks is the winner of the Thomas A. Roe Award

by Georgia Center for Opportunity | Sep 23, 2022

Randy Hicks is the winner of the Thomas A. Roe Award

We are excited to announce Randy Hicks is the winner of the Thomas A. Roe Award given by the State Policy Network.

The award was created 30 years ago to pay tribute to leaders who embody innovation, conviction, courage, and solutions in public policy and whose achievements have advanced free-market philosophy. The award was named for the State Policy Network’s founder, who spent much of his life encouraging states to grow organizations who preserve American liberties.

Georgia Center for Opportunity has been one of the host organizations for the State Policy Network’s Annual Meeting which is being held this week in Atlanta, GA. This is a gathering of organizations working on a state-level to promote realistic solutions to policy. It’s also a time for our team to collaborate with like-minded people and be inspired by new ideas and tactics.

Randy Hicks is the winner of the Thomas A. Roe Award!

Randy Hicks is the winner of the Thomas A. Roe Award.