Iowa unemployment increase ranked third highest in nation

By Mary Stroka | The Center Square contributor

April 24, 08:24 AM April 24, 08:24 AM

(The Center Square) – Iowa had the third greatest increase in unemployment from March 2022 to March 2023, WalletHub reported in a state-by-state ranking.

Still, it ranks just barely above average in terms of changes in unemployment rates compared with the rest of the nation, according to the report.

WalletHub compared all 50 states and the District of Columbia based on six metrics: overall unemployment rate in March 2023 and change in unemployment between March 2023 and five months of the past.

Iowa ranked 24th in the nation for overall unemployment rate change.

Its March 2023 unemployment rate was 2.8%, which was the same as Minnesota’s and Colorado’s. South Dakota, at 1.9%, had the lowest unemployment rate in March 2023, and Nevada had the highest: 5.5%.

The Hawkeye State’s unemployment rate last month was down 3.6% from its rate in February. District of Columbia had the greatest increase (4.1%) from February to March, while New Hampshire had the greatest decrease (8.9%).

It had the fourth greatest increase in unemployment from March 2020 to March 2023: 7.9%. Hawaii, Massachusetts and Oregon had increases of 58.8%, 27.6% and 24.1%, respectively. Nebraska had the greatest decrease; its unemployment rate was cut in half.

Iowa had the 11th biggest increase (7.9%) in unemployment from March 2019 to March 2023. Nevada had the biggest increase (35.1%), while Mississippi had the greatest decrease (35.7%).

Without adjusting continued claims based on season, Iowa had the fourth greatest decrease (12.5%) in March 2023 compared with February 2023. Missouri had the greatest decrease (18.1%), and Alabama had the greatest increase (77.2%).

Clemson University adjunct economics professor Miren Ivankovic said in the report that most countries the U.S. trades with are experiencing nearly double-digit inflation, and inflation is persisting domestically. Central banks are applying monetary policies to lower inflation and try to slow down the economy. He said a soft landing wouldn’t impact labor markets too much, but a hard landing could send the U.S. and other countries into a recession, with increased unemployment.

Ivankovic said he believes inflation is fairly stubborn in the U.S. and that the Federal Reserve will need to pursue a federal funds rate hike, which will affect firms' investments, production, and sales.

“Thus, one can expect a labor contraction,” he said.

He said he anticipates industries that involve skilled labor will continue to do well, as many of those positions allow people to work from home. There will always be a demand for cooks, plumbers and solar power installers.

“Education is becoming a key to having a good career and it is a permanent process now,” he said. “Four years of college, for example, is just the beginning of the learning process. Most jobs now require some knowledge of computers and software, good time management skills, and good soft skills.”

Ivankovic said that as federal help decreases and people’s incomes decrease, firms can anticipate better labor force participation.

Metro Detroit inflation spike second highest in nation

By Mary Stroka | The Center Square contributor

April 14, 08:11 AM April 14, 08:11 AM

(The Center Square) – Among 22 metro areas measured nationwide, Detroit has the second-highest rise in inflation, WalletHub reported.

WalletHub compared the Consumer Price Index for the latest month of available data from the Bureau of Labor Statistics to two months prior and one year prior for a snapshot of how inflation has changed in the cities.

The Philadelphia-Camden-Wilmington metro had the highest score, 84.62, with a 2% increase in CPI compared with two months prior and 6.90% compared with a year prior, Detroit was close behind, the report indicated.

The Detroit-Warren-Dearborn area had a total score of 83.30, with a 1.90% rise in the latest month versus two months prior and a 7% increase compared with a year prior.

Houston-The Woodland-Sugar Land in Texas has the same CPI change for the latest month compared with two months prior. Phoenix-Mesa-Scottsdale in Arizona (8.5%), Seattle-Tacoma-Bellevue in Washington (8%), Tampa-St. Petersburg-Clearwater in Florida (7.7%), and Atlanta-Sandy Springs-Roswell in Georgia (7.2%) have had higher rises in CPI in the latest month compared with a year earlier.

The Chicago metro area ranked 14

in the report, and the Minneapolis area ranked 21

.

Los Angeles-Long Beach-Anaheim in California had the lowest score in the report. It’s the sole metro area that has had a drop (-0.2%) in CPI in the latest month compared with two months prior. Its prior year rise was 3.7%.

University of Michigan Gerald R. Ford School of Public Policy political scientist and statistics lecturer Jonathan Hanson said in the report that over the past three months, inflation has basically been close to 0, as the CPI’s only .45% higher.

“Annualized, that is a rate of less than 2%, which is what the Fed has been targeting,” he said.

The CPI fell .1 points in December, he said. The BLS reported in January that the CPI for All Urban Consumers declined 0.1% in December 2022, seasonally adjusted, after rising 0.1% in November 2022.

“I think the consensus is growing that inflation is largely a transitory phenomenon connected with disruptions in global supply chains,” he said. “We seem to be coming out of that, though we need more time to pass to be sure.”

He said people have trouble distinguishing the level of the price index and the rate of change in the price index.

“Inflation is typically measured as the change in prices year over year,” he said. “The December inflation rate of 6.5% means that, compared with December 2021, the consumer price index is 6.5% higher. But pretty much all of that increase took place from December to June.”

Prices aren’t currently rapidly increasing, he said. Rather, price increases already occurred, and the overall price index has mostly held steady for three months. The goal of interest rate increases is to slow down the economy, cooling demand.

“Pressure on prices thus falls,” he said. “It’s effective for controlling the rate of inflation but does not come without some pain.”

Minnesota ranks second in the nation for highest corporate tax rate

By Mary Stroka | The Center Square contributor

January 28, 08:58 AM January 28, 08:58 AM

(The Center Square) – Minnesota’s top marginal corporate tax rate, 9.8%, is the second-highest the nation, according to an analysis the Tax Foundation released Tuesday.

The North Star State is one of the 44 states that levy corporate income taxes. Nationally, on average, these taxes accounted for 7.07% of state tax collection and 4.04% of state general revenue in fiscal year 2021, the report said.

“And while these figures are not high, they represent a substantial increase over prior years,” the report said. “Corporate income taxes accounted for 2.26% of general revenue in FY 2020, which is more in line with historical norms.”

Many states also impose gross receipts taxes and capital stock taxes while some impose an alternative minimum tax and special rates on financial institutions, the report said.

Minnesota has higher rates compared with its neighbors.

Iowa’s top rate is 8.4%, which ranks it 10th nationally. Wisconsin ranks 13th, with a top rate of 7.9%. North Dakota top corporate income tax rate is 4.31% tax, placing it 41st in the nation. Companies that make more than $50,000 in a year pay that rate. South Dakota and Wyoming don’t levy corporate income or gross receipts taxes.

New Jersey has the highest top statutory corporate tax rate, 11.5%. North Carolina, on the other hand, has the lowest, at 2.5%.

According to the Tax Foundation, economists view corporate income taxes as double taxes, and workers, shareholders and consumers bear the burden.

“The same income is taxed once as profit and once as individual income when distributed as dividends to shareholders,” the foundation said.

The Tax Foundation reported in December that across 180 global jurisdictions, the average statutory corporate income tax rate is 23.37%. Those rates have declined from an average 40.11%.

“Countries have recognized the impact that high corporate tax rates have on business investment decisions,” the report said.

Report: New Jersey has worst fiscal health in the nation

By Christian Wade | The Center Square contributor

January 09, 08:46 AM January 09, 08:46 AM

(The Center Square) — New Jersey has the worst fiscal health in the nation, with billions of dollars in debt and not enough money to cover bills, according to a watchdog report.

The latest Financial State of the States 2022 report from Truth in Accounting, placed the Garden State dead last among the top five "sinkhole states" for fiscal health, with an individual taxpayer burden estimated at nearly $59,000, the highest total for any state in the nation.

It's the 13th straight year New Jersey has been ranked last in the nation.

The report's authors gave New Jersey’s financial condition an “F” grade due to excessive spending and the pension and healthcare debt. The group said the money needed by the state to pay its outstanding bills has increased by more than $12.5 billion in the previous fiscal year. Overall, the state's outstanding bills add up to more than $241 million, the group said.

New Jersey’s financial position appeared to decrease in 2021, according to the report. The decline will likely continue as federal pandemic aid dries up, and the market value of the state's retirement system assets declines.

"New Jersey had only set aside 47 cents for every dollar of promised pension benefits and one cent for every dollar of promised retiree health care benefits," the report's authors wrote. "Given these facts, the state’s overall debt situation will likely further deteriorate over the coming year."

Republicans say the report highlights "reckless spending" by Democratic Gov. Phil Murphy's administration which they say has added billions of local pork into the state budget.

"What we’re doing now is only digging a deeper hole," Testa said. "All this does is make an already unaffordable state even more unaffordable. We must chart a new fiscal course because New Jersey residents deserve better."

Testa and other Republicans have filed legislation to curtail the amount of earmarks going into the budget to require some funding to be distributed through competitive grants.

“Some of these payouts may be for worthy causes," Testa said. "However, these awards should be transparent, competitive and merit based, but what we’ve seen out of Trenton is secretive, arbitrary and unfair."

Report: NY cities among worst in the nation for poverty and homelessness

By Steve Bittenbender | The Center Square contributor

January 03, 09:21 AM January 03, 09:21 AM

(The Center Square) – A recent study looking at U.S. cities with the most economically at-risk residents, found some areas of concern for New Yorkers.

While no Empire State city finished among the top 20 neediest in the WalletHub report, there were categories they ranked the worst.

For example, Rochester’s 48.2% of children living in poverty was the worst among the 180 cities studied. New York City’s homelessness rate of 9.3 people per 1,000 was tied for the highest in the country with cities such as San Francisco and Washington, D.C.

Both New York cities also had high unemployment rates, with New York City’s 6.8% third-worst and Rochester’s 6.4% sixth-worst. Rochester also had the sixth-worst adult poverty rate at 25%.

Similarly, the report found Buffalo also suffered from high poverty rates. The Western New York city came in fourth, with 42.3% of its children living in poverty. It also had the seventh-worst ranking for adult poverty at 24.2%.

It’s very possible the poverty rates in those cities and across the country could increase soon.

“The Child Tax Credit will come to an end within the next few months,” said Phil Coltoff, a senior fellow at the New York University Silver School of Social Work and the former CEO for the Children’s Aid Society of New York. “The program was established as a pandemic stimulus and was meant to sunset. When it ends, in the view of most experts, child poverty will again reach or exceed its pre-pandemic levels within one year.”

Overall, New York City was the 32nd neediest city in America. Rochester finished 37th, while Buffalo ranked 64th.

Yonkers, a New York City suburb in Westchester County, finished 151st.

Other than poverty and homelessness rates, the study also looked at such factors as bankruptcy rates, foreclosure rates, average personal credit scores, health insurance access and crime rates.

Washington gas prices fourth highest in the nation

By Timothy Schumann | The Center Square contributor

December 27, 08:50 AM December 27, 08:50 AM

(The Center Square) - After over ten straight weeks of price declines Washington state fuel prices are still among the highest in the nation and rank fourth among the 50 states.

On Monday, the average price of a gallon of regular unleaded was $3.88 statewide, down from $3.94 the week prior, according to AAA data. This 6 cents per gallon decrease was markedly lower than last week's decline of 16 cents per gallon.

Compared with the national average of $3.10 per gallon, Washington’s $3.88 price is 78 cents per gallon higher than the average. This is a full $1.24 off the nation's least expensive fuel costs of $2.64 per gallon currently paid by Texans.

Again this week, Washington finds itself firmly in the top ten most expensive fuel markets nationwide. Holding at fourth from the week prior, Washington’s pump prices were only beat out by Nevada, California and Hawaii.

In the Evergreen State intra-state variance remains high, spanning a range of $1.09 per gallon. The outliers this week are, for only the second time since The Center Square began reporting on fuel prices in Washington state, both on the same side of the Cascade Range.

San Juan County and Skagit County, which are geographically adjacent separated only by portions of the Salish Sea, represent the most and least expensive gas prices statewide at $4.39 and $3.30 per gallon respectively.

Other than the exception of Skagit county, this price variance still largely follows the Cascade Range, with residents to the west paying a higher premium at the pump than residents to the east.

Washington state residents also have a new cap-and-trade tax that starts Jan. 1 which, as previously reported by The Center Square, would drive fuel costs up an estimated 46 cents per gallon. This will come on top of Washington's current rate of 49.4 cents per gallon of state tax.

Phoenix area has nation's highest inflation

Cameron Arcand | The Center Square contributor

December 14, 08:49 AM December 14, 08:49 AM

(The Center Square) – The Phoenix metropolitan area has the highest annual inflation rate in the nation.

The Bureau of Labor Statistics released the November consumer price index data on Tuesday, showing the rest of the nation that didn't receive data in the first batch of cities that included Phoenix.

In November, BLS reported Phoenix had a 12.1% inflation rate between October 2021 and October 2022. As a result, Phoenix also has the biggest change between October and August, with an increase of 1.4%.

No other metropolitan area hit 10% in November.

The national annual inflation rate was 7.1% last month, only a slight increase of 0.1% from October.

"Arizona's small businesses continue to struggle under a crushing labor shortage, supply chain disruptions, and historically high prices," National Federation of Independent Business Arizona State Director Chad Heinrich said in a press release.

"With Phoenix's inflation rate the highest in the country, small business owners are looking to our state legislature to support Main Street's recovery," Heinrich added.

Other metropolitan areas with high inflation include Atlanta with 10.7%, Miami with 10.1% in October, and Tampa with 9.6% in November.

The consumer price index is used as a measure of inflation because it looks at the change in prices of a "market basket of consumer goods and services," according to the BLS.

President Joe Biden considered the new inflation numbers a political victory.

"The inflation rate came down down more than experts expected," Biden said on Tuesday, according to CNBC. "In a world where inflation is rising double digits in many major economies around the world, inflation is coming down in America."

Several North Carolina cities rank highly nationally for increases in homicide rates

Victor Skinner | The Center Square contributor

October 22, 07:34 AM October 22, 07:34 AM

(The Center Square) — Several North Carolina cities rank among those with the highest increases in homicide rates in the United States over the last two years, according to a recent analysis.

The personal finance website WalletHub compared the homicide rates in the 50 largest cities in the U.S., and two in North Carolina ranked in the top third in a report released Wednesday.

Researchers assigned each city a total score out of 100, weighting half on homicides per capita in the third quarter of 2022, and half on the change in homicide rates over the last two years. The higher the score, the higher the rank.

Durham’s score of 32.07 ranked 26th nationwide, with its homicide rate increasing by 0.36 points since 2020 to a rate of 3.26 cases per 100,000 residents this year. The 2022 homicide rate ranked 25th overall.

Charlotte came in at 15th place with 41.40 points and a homicide rate per capita of 3.78 in 2022. That figure is up by 1.49 points over the last year and by 0.23 from 2020. Charlotte’s rate of increase since 2021 was the fifth highest in the country.

Raleigh ranked 14th overall in the WalletHub analysis with a score of 43. While the capital city’s per capita homicide rate stood in 26th place for 2022 at 3.19, increases in the rate over the last year, and last two years, ranked ninth and seventh, respectively.

Raleigh’s rate jumped by 1.06 since 2021 and by 1.28 since 2020, according to the analysis.

"The homicide rate is increasing rapidly in the U.S., so much so that President Joe Biden has made tackling the problem a priority and spoke in his State of the Union address about his plans to reduce violence," the report read. "Alarmingly, homicide rates have risen by an average of nearly 10% in 50 of the most populated U.S. cites between Q3 2021 and Q3 2022, and are still rising."

Kansas City, Missouri ranked in first place for the highest homicide rate increase with a score of 87.49. Kansas City ranked first in change in homicide cases per capita since 2021, jumping by 4.89, and first for change since 2020 at 2.04. The city’s homicide rate of 14.86 per 100,000 residents was the second highest in 2022.

Detroit placed second overall in the analysis with a score of 69.46, finishing third for its 2022 homicide rate of 13.24, while St. Louis came in third overall with a score of 58.88, posting the highest homicide rate per capita in the U.S. so far this year at 19.69.

Other cities in the top 10 include New Orleans, Milwaukee, Albuquerque, Philadelphia, Norfolk, Nashville, and Oakland.

Cities ranked at the bottom include Denver in last place with a rate of 1.96, followed by Chesapeake, Virginia; Madison, Wisconsin; Arlington, Texas; St. Petersburg, Florida; Columbus, Ohio; Minneapolis, Minnesota; Tucson, Arizona; Dallas, Texas; Chandler, Arizona; and Fort Worth, Texas in 40th.

The analysis found a correlation between homicide rates and the mayor’s political party, with Democrat run cities ranking higher on the list. The average rank for cities with Democratic mayors was 24.86, compared to the average rank of cities with Republican mayors at 26.50, WalletHub reports.

From $39k to $155k, teacher salaries in the U.S. are all over the map

Tom Gantert and Brett Rowland | The Center Square

August 15, 09:56 AM August 15, 09:56 AM

(The Center Square) – A 28-year-old teacher's video announcing he quit his job in Ohio to go work as a manager in Walmart went viral in July and his story landed him on ABC's Good Morning America.

"Leaving teaching after 6 years to go be a manager at Walmart and make more not using my degree," Seth Goshorn posted in his video that received more than 63,000 likes on TikTok.

Goshorn had a gross salary of $48,962 in 2021 – his final full year as a teacher at Plain Local School District in Canton, Ohio. He left for a $55,000-a-year job as a Walmart manager. According to district documents, Goshorn worked four years as a teacher.

Goshorn's story continued a long-running debate on teachers salaries in this country. It's a complicated issue because teachers' compensation can vary greatly.

About 125 miles southwest of Canton, where Goshorn had a base pay of $44,735, teachers in the Columbus school district in Ohio are threatening to strike. A teacher with four years of experience in that school district had a base salary of $59,721, or 33% higher than Goshorn's base pay.

A National Education Association survey reports the average teacher salary in 2021 was $67,507. That's higher than what the inflation-adjusted average teacher salary of $59,693 was in 1970, according to the National Center for Education Statistics.

But teachers' salaries are difficult to encapsulate in a single salary figure. Salaries for teachers can vary drastically, depending on the size and location of the school district.

While a first-year-teacher in Jackson, Mississippi made $39,318 in 2021, 1,400 miles away a veteran teacher in Boston, Massachusetts, had gross pay of $154,968 that same year. But cost of living plays a part in teacher compensation. Median rent in Jackson, Mississippi, was $856 a month from 2016-2020 compared to Boston's $1,685, according to the U.S. Census.

In Seattle, a teacher with 15 years experience and a Master's degree can have a base salary of $121,138. That teacher with the same credentials in Norman, Oklahoma's public school district would have a base salary of $54,296. That same teacher would have a base salary of $65,559 in Charlotte-Mecklenburg public schools in North Carolina and $126,103 at Scarsdale, New York's public school district.

The vast majority of teachers in the U.S. are compensated based on two criteria – years of service and level of college credits attained.

The base salaries reported in this story come from teacher pay scales and do not include the cost of benefits or any extra pay for accepting optional duties such as teaching summer school or coaching a school sports team.

Pandemic put more strain on restaurants than owners anticipated, survey finds

Misty Severi

October 06, 10:55 PM October 06, 10:55 PM

More restaurants are struggling from the pandemic than expected and say money from the government has become increasingly important, according to a new survey issued by the National Restaurant Association.

With more obstacles from the pandemic — including workers demanding higher wages, an increase in the price of food from supply chains, and customers still not at pre-pandemic numbers — the majority of respondents say the restaurant industry is worse off than it was three months ago.

INDUSTRY GROUP SAYS 18,000 NEW YORK RESTAURANTS IN DIRE NEED OF ADDITIONAL FINANCIAL AID

Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, sent a letter to Congress warning of the dangers of the Build Back Better Act.

“Our nation’s restaurant recovery is officially moving in reverse,” Kennedy said. “The lingering effects of the delta variant are a further drag on an industry struggling with rising costs and falling revenue. We support many of the goals of the Build Back Better Act, but the legislation is too large and too expensive a check for small businesses to take on. Restaurants still need help today and overwhelming them with costly new obligations will only prevent progress in turning the tide of recovery.”

The survey polled over 4,000 restaurant operators that found the delta variant slowed indoor dining in 75% of restaurants. Ninety-one percent have seen an increase in food prices, 84% have higher labor costs, and 71% are understaffed. About 75% of restaurants changed menu items because of issues with the supply chain.

Forty-four percent think it will be at least a year until business normalizes, and another 19% don't think it ever will.

A survey by the Independent Restaurant Coalition found 82% of those surveyed believe they will have to close if they do not receive government aid.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

The National Restaurant Association asked Congress to replenish the Restaurant Revitalization Fund, which set aside $28.6 billion in grant money to help restaurants as part of the American Rescue Plan Act of 2021. Funds in the RRF ran out in July.