Nevada’s Labor Force Participation Rate Has Never Been Lower

Data Points: August 16, 2016

 


By Daniel Honchariw

Nevada’s Labor Force Participation Rate Has Never Been Lower

By many significant indicators, the national economy is in poor shape. In terms of how this has translated into Nevada’s economy, one troubling statistic concerns the size of the state’s labor force.

Nevada’s labor force participation rate is at 62.9 percent, an all-time low according to the Bureau of Labor Statistics. A corresponding decrease in the state’s unemployment rate appears to be a symptom of stagnation, not proof of economic recovery.

That’s because there are now more than 800,000 work-capable Nevadans who are altogether unwilling to look for work.

This situation has developed as a result of national economic policies which have thrust mountains of new regulations onto productive private businesses. Such policies have produced a weakest-on-record economic recovery following the 2008 financial meltdown.

Thus, while Nevada’s unemployment rate has fallen sharply versus its 2011 highs of more than 13 percent, Nevadans should take this perceived success with a grain of salt.

 

Between January 2011 and 2016, Nevada’s unemployment rate fell from 13.5 percent to 6.2 percent.

During the same period, however, the state’s labor force participation rate also fell steadily — and it continues to do so. This has some questioning whether the decrease in Nevada’s unemployment rate is being artificially boosted by a diminishing number of willing workers.

While the labor force participation rate and the unemployment rate both measure macroeconomic health, generally the two data points are actually quite different. The very nature of this difference means that a reduction in the labor force participation rate, ceteris paribus, can artificially inflate employment numbers. In turn, this may have the effect of portraying the economic landscape in a healthier context than reality might otherwise lend.

This is true because the unemployment rate only measures those who cannot find work among labor force participants. By definition, if you are neither employed nor actively looking for work, then you are not considered to be participating in the labor force.

To fully understand the impact this has on unemployment rates, it’s important to highlight the difference between labor force participants, and the labor force population.

The labor force population measures the number of civilian — non-institutionalized people ages 16 and older. At the start of 2011, Nevada’s labor force population was approximately 2,087,000; by 2016, that number had jumped to 2,280,000 — an increase of nine percent.

During the same five-year span, Nevada’s number of labor force participants increased from 1,364,000 to 1,433,000, a considerably-smaller proportional jump of five percent.

It is therefore easy to interpret a portion of Nevada’s decrease in the unemployment rate from 2011 as a predictable result of a mass migration from the labor force by former labor force participants.

Indeed, since 2011, Nevada’s unemployment rate has decreased in each of the five years. However, its labor force participation rate has decreased in each of those five years as well.

Unfortunately, this means that the data point used to highlight an allegedly strong post-recession recovery — a drop in Nevada’s unemployment rate — is actually a symptom of ongoing weakness in the economy.

 

 

 

In case you missed it...

Government corruption:

A unanimous three-judge panel has revived lawsuits by dozens of groups who were harassed by the IRS prior to the 2012 presidential election. In the 22-page ruling, Judge David Sentelle explained that the lawsuits should be revived, as it was “plain” to all parties — including the Treasury Inspector General and a lower federal court — that the IRS “cannot defend its discriminatory conduct.” (Read more)

 

Pension reform:

Taxpayer costs for U.S. public pension plans just keep climbing as long-term investment returns continue to underperform. But disappointing returns on investments aren’t the real reason behind the tax hikes that will be needed to bail out public pensions. In reality, the culprit is the extraordinarily generous nature of the benefits themselves, whose costs are only now coming to the surface. (Read more)

 

Second Amendment:

Gun owners with concealed-carry permits are among the most law-abiding demographic of Americans, according to a new study by the Crime Prevention Research Center. Concealed-carry permit holders are even six times less likely to commit a misdemeanor or felony than police officers. (Read more)

 

Green energy subsidies:

The Ivanpah solar power facility received a federal loan guarantee of $1.6 trillion, a tax credit in excess of $500 million, and contracts to sell power at four to five times the market rate of electricity — all because it was seen as a breakthrough in creating commercial solar power. But in truth, the plant isn’t even as “green” as it claims. Natural gas is a vital component to the plant’s operation, and is used throughout its daily operation. More notable, however, is that the plant’s use of natural gas is conveniently ignored by California’s environmental regulators. (Read more)

 

Healthcare:

A new government report finds that the cost of expanding Medicaid to millions more low-income people is 49 percent higher than originally anticipated. The increasingly high costs of the expansion could complicate President Obama’s decision to offer three years of full federal financing to states that have not yet taken part in the expansion. (Read more)

 

Taxation:

Nevadans already pay the third-highest price for unleaded gasoline among all 50 U.S. states. So what could a “yes” vote on Fuel Revenue Indexing (Clark Co. Ballot Question 5) mean for the average price per gallon for Clark County residents? (Read more)

 

Fuel Revenue Indexing, Clark County

NPRInsight

Data Points: Week of August 8-12, 2016


By Daniel Honchariw

Fuel Revenue Indexing, Clark County

Nevadans already pay the third-highest1 price for unleaded gasoline among all 50 U.S. states.

So what could a “yes” vote on Fuel Revenue Indexing (Clark Co. Ballot Question 5) mean for the average price per gallon for Clark County residents?

Currently, county residents pay in excess of 52 cents per gallon of unleaded gasoline in combined federal and state taxes. 

On average, Nevadans pay four cents more in fuel taxes per gallon than residents in other states.

The Fuel Revenue Index measure proposes the current tax level will increase with the rate of inflation as measured by the PPI2, with an annual cap of 7.8 percent, for at least the next ten years.

For fiscal years 2014, 2015 and 2016 the PPI rate was 6.22, 6.05, and 5.25 percent, respectively.

Assuming the maximum permissible rate increase for each of the next ten years, fuel taxes per gallon could increase by 110 percent (58 cents) by January 2027 versus current levels.

As an illustration, the cost per gallon of unleaded gasoline could go from $2.49 to $3.07, an increase of 23 percent versus current price levels.

 

 

1. Producer Price Index for Highway and Street Construction

2. Rocio Hernandez, “Nevada still has third-highest gasoline prices in US,” Las Vegas Review-Journal, 9 Aug 2016

 

In case you missed it...

Public employee pensions:

The American Academy of Actuaries and the Society of Actuaries abruptly killed a longstanding task force of top pension experts Monday, when a task force paper suggested public-sector pensions should follow the same real-world accounting rules as private pension plans. Apparently common-sense reform wasn’t ever supposed to be on the table. (Read more)

 

Tax policy:

United States Senator Chuck Schumer (D-NY) says the IRS shouldn’t tax Olympic athletes for the cash prizes they win in Rio, because athletes train hard to become successful at the games. “Our athletes deserve thanks and praise, not a bill from the IRS,” said Schumer. Judging by his voting record, however, Schumer seems to have no problem voting for higher tax bills on everyone else who works hard to become successful, such as business people, workers and investors. (Read more)

 

Solar energy:

The Nevada Supreme Court has ruled unanimously against a ballot question that could have restored solar’s net metering subsidy in Nevada. The court said the “description of effect” on the petition was “not only inaccurate and misleading, but also argumentative.” (Read more)

 

National Employee Freedom Week:

The Nevada Policy Research Institute will, once again, be spearheading National Employee Freedom Week, August 14 – 20. This year will be even more important than in the past, as labor unions launch court fights to prevent members from dropping union membership. (Read more)

 

Federal lands:

The fact that the federal government controls a high percentage of land in the western United States isn’t just an inconvenience for citizens — it actually violates rights guaranteed them by the Constitution. For millions of people who live in the West, where most of the land is controlled by the feds, “equal protection” under the law is only theoretical. In practice, we’re subjected to a very different set of rules and regulations than citizens in other states. (Read more)

 

It’s that time of year again!

Hello friends,

It’s that time of year again. Back-to-school plans are already being made — and open enrollment for Education Savings Accounts has just started!

That’s why our team has been working hard to get parents informed, prepared, and updated on Nevada’s educational choice opportunities.

ESA enrollment will be from August 1, 2016, until September 30, 2016.

Both English and Spanish applications can be found on NevadaESA.com, or by visiting the Treasurer’s website. Simply print the application, and mail the completed form to the Treasurer’s office before September 30th.

Unfortunately, because there isn’t yet a decision from the Supreme Court, parents won’t receive notice of receipt from the Treasurer. Therefore, I recommend sending applications certified, return-receipt-requested. That way you’ll have proof of delivery, should that be needed later.

Please, please, hold on to your receipt.

The Supreme Court has promised a speedy decision, so stay tuned for any major news! We’ll be sure to let you know the second there is a development.

Stay strong! And #LetOurChildrenSucceed!

- Karen

 

In case you missed it...

The Nevada Policy Research Institute is celebrating its 25th anniversary this year, and you’re invited to our anniversary dinner!

We are exceptionally grateful for all the support we have seen for our mission over the years. For a quarter of a century we have fought tirelessly for a freer and more prosperous Nevada — and we couldn’t have done it without you.  

To help us celebrate, political humorist P.J. O’Rourke will be delivering the keynote address at our Anniversary Celebration on September 14th, at the Venetian | Palazzo.

Please mark your calendars, and help us celebrate this landmark anniversary! (Click here for details, or to register)

And may the next 25 years be as productive as the last!

Sincerely,

Sharon J. Rossie


In case you missed it in the news this last week:

 

Education Savings Accounts:

Isabella needed help learning English — help that her “5-star Exemplary Reward School” wasn’t giving her. Rita, Isabella’s mom, realized that something had to be done, so she looked at alternatives and found Nevada’s two new educational choice programs: Tax scholarships and Education Savings Accounts. With the tax scholarship in hand and her ESA application filed, Isabella was accepted into not one, but two of the most prestigious schools in Las Vegas. Today, she’s winning spelling bees and excelling in class — but all this progress could come crashing down if ESAs aren’t funded soon. “We’ve found the perfect fit. Without the ESA, without that $5,000 to help with tuition, what will be Isabella’s future?” (Read more)

 

ESA Oral Arguments:

ESA’s had their day in the Nevada Supreme Court. Parents arrived en masse to show support for the nation’s most inclusive and expansive educational choice program. Taliyah Johnson — a 14 year old who says ESAs are crucial to getting the education she deserves — shared her letter to the Supreme Court  with the crowd of supporters on the courthouse steps. (Read more) 

 

Labor unions:

Opting-out of a teacher union is no easy task. One teacher in Nevada has learned the hard way that the union cares more about collecting dues than they do about representing the interests of individual teachers. She tried to opt out, but failed to inform union bosses during the narrow two week window in July, and now must endure yet another year of inadequate, and unwanted, union membership. (Read more)

 

PERS:

“Public pension plans are inherently opaque, with PERS in a class of its own,” says Robert Fellner, Transparency Director for the Nevada Policy Research Institute. With the PERS board made up exclusively of PERS members, financially naïve citizen-lawmakers being bullied by unions and massive unfunded liabilities, it’s no wonder PERS is in so much trouble. So how did it get this bad? Let’s start at the beginning… (Read more)

 

Energy:

Start rationing your electricity use. If the EPA has its way, your electricity bill is about to skyrocket. A recent study by Heritage Foundation economists estimates that “green-energy” regulations will increase household spending on electricity between 13 and 20 percent over the next 20 years. (Read more)

 

It’s here. It’s finally here!

Hello Everyone!

I’m so excited!  It’s here. It’s finally here!

We’re just days away from the event that parents have been waiting for: Nevada’s ESA support rally and Supreme Court oral arguments! This Friday, July 29th!

Grab your ESA support signs and join in as parents and community members from across the valley come together to support Nevada’s ESA program!

Head down to the Regional Justice Center at 200 Lewis Ave in Las Vegas and stand strong with other ESA supporters for an early rally before going upstairs to view the Supreme Court oral arguments.

    R a l l y : 8 : 3 0 a . m . t o 9 : 0 0 a . m .

1 0 : 0 0 A M - L o p e z O r a l A r g u m e n t s

   1 1 : 3 0 A M - D u n c a n O r a l A r g u m e n t s

Come early with your friends and family and let your voice be heard!  Lend your strength and support to the legal team, Treasurer Dan Schwartz and the brave families who have intervened in Duncan. 

Once again, a few reminders for this historical day:

Security

  • Everyone who wants to watch the oral arguments will need to go through security, so be prepared to remove your shoes, belts and purses.
  • Plan on a delay entering the Regional Justice Center as the Marshals search for weapons and other contraband.

Dress Code

  • The Regional Justice Center prohibits any show of support or opposition in the building. So while we encourage everyone to show their support on the courthouse steps, no shirts, hats, accessories or other apparel showing support will be allowed inside. (Rally signs must also remain outside.)
  • The Supreme Court courtroom is a professional setting and attendees are encouraged to dress accordingly: Shirts and shoes are required. Hats must be removed before entering court. No tank tops or shorts.
  • No cell phones allowed in the Supreme Court courtroom. You will be required to leave your cellphones with the marshal before entering.

Etiquette and Decorum

  • The Supreme Court courtroom is a professional setting requiring complete quiet from the audience. The atmosphere is akin to that of a very, very quiet church. Talking will not be tolerated and you could be removed by marshals.  
  • No food or drinks are allowed in the courtroom.
  • Children are allowed in the courtroom. However, I recommend families with young children view the proceedings from the Jury Assembly Room on the third floor, which is a slightly less formal setting.
  • The overflow room is open to everyone and will not be segregated by support or opposition. Marshals have advised they will be present to maintain civility. Shouting and other outbursts will not be tolerated.

Rally Signs

We are asking supporters to bring their own signs highlighting their personal message of support. A poster board decorated with markers, paints, glitter, etc., is a simple and inexpensive way to do this.  We will also have a handful of pre-made signs — created earlier in the week by parent volunteers — available at the rally. 

As a show of solidarity with other ESA supporters we are asking that signs have both, our hashtag #LetOurChildrenSucceed and that of our fellow ESA supporters: #YestoESA.

We will have a place outside the courthouse building to leave signs, for parents that want to watch the oral arguments.

Parking

Metered parking is available in lots along 3rd St. and Clark and at the Clark County Parking garage at 455 S. 3rd Street.  The Fremont Street Experience parking garage, located at 425 Fremont, also offers paid parking. (For that parking, you enter off 4th Street off Carson.) If parking is an issue, please call me at 702-222-0642.  We can arrange free shuttle transport with our rally partner group.

Seating

The Supreme Court courtroom, located on the 17th floor, seats about 60 – 70 people.  An estimated 30 seats are expected to be reserved, leaving just a few seats for the public.  Overflow seating is located in the Jury Assembly Room, located on the Third Floor. All seats will be filled on a first-come, first-seated basis.

This is it, parents! The legal team, Treasurer Dan Schwartz and the brave parents intervening in Duncan need your support. They need your strength! 

Come on down and rally for Nevada’s children — for your children.

And if you are in northern Nevada, or can’t make it to Las Vegas, call me for information regarding events in your area: 702-222-0642. Your voice will not be left out!

#LetOurChildrenSucceed

~Karen

Download a flyer to invite your friends and family! Download file ESA Rally flyer

 

In case you missed it...

Education Savings Accounts:

Keith Diggs, from the Institute for Justice, explained exactly what is wrong with the argument against Education Savings Accounts. “These groups, which have attacked ESAs in the Nevada courts, will tolerate no new ideas in education,” Diggs wrote in the Reno Gazette Journal. He’s right. With oral arguments just one week away, be sure to RSVP now for our ESA Policy Luncheon on July 29th, featuring Vicki Alger from the Independent Institute. (RSVP here)

 

Over regulation:

Anxious to please activists and environmentalists, politicians have agreed to force companies that sell produce to clearly label their genetically modified organic foods (GMOs). So what exactly is a GMO? Well, no one really knows. Genetic engineering is essentially a continuum of techniques that have been used over millennia — and the legislation itself is so broad, it fails to narrowly define what kind of bioengineered foods might qualify as “GMOs.” Maybe, before regulating an entire industry, government should first obtain a better understanding of what, precisely, is being regulated. (Read more)

 

Climate Change:

Climate-change alarmists, activists and even lawmakers try to silence scientific and policy debate by claiming that “ninety-seven percent of scientists agree” on global warming. But, as former NASA scientist Dr. Roy Spencer points out, science is not a democratic process. “Since when is science settled by a survey or a poll? The hallmark of a good scientific theory is its ability to make good predictions… From what we’ve seen, global warming theory is definitely lacking in this regard,” Spencer wrote. The truth is, climate change is a complex issue, and the science behind it is constantly evolving. Debate over the issue shouldn’t be censored or ignored simply because some alarmists want it to be. (Read more)

 

Economic Development:

For a prime example of how government manages to stifle job growth, look no further than your local licensing requirements. License requirements for various occupations — essentially a government-created permission-slip to work — have been on the rise for decades. And many of these requirements do virtually nothing to protect the public from abusive businesses. In Washington D.C., for example, a shoe-shine must obtain four separate licenses from various government agencies before being legally allowed to operate. (Read more)

 

Federal debt:

The federal debt climbed to more than $19.4 trillion dollars this week. That means in less than nine months since Congress passed the “Bipartisan Budget Act” — which suspended the legal debt limit until March of 2017 — the federal government has overspent by more than $1.25 trillion dollars. (Read more)

 

Less than ten days, Folks!

Friday, July 29 — the day we’ve all been waiting for!  The day to show your support for the country’s most expansive educational choice program and fight for Nevada children — your children — is just around the corner.

Come down to the Regional Justice Center at 200 Lewis Ave in Las Vegas at 8:45 a.m. and stand strong with other ESA supporters for an early rally before going upstairs to view the Supreme Court oral arguments.

Bring your friends, neighbors and children and stand up to #LetOurChildrenSucceed.

A few things you should know to prepare for this historical day:

Dress Code

  • The Regional Justice Center prohibits any show of support or opposition in the building: No shirts, hats, accessories or other apparel showing support will be allowed inside. Rally signs must remain outside.
  • The Supreme Court courtroom is a professional setting and attendees are encouraged to dress accordingly: Shirts and shoes are required. Hats must be removed before entering court. No tank tops or shorts.
  • No cell phones allowed in the Supreme Court courtroom. You will be required to leave your cell phones with the marshal before entering the courtroom.

Etiquette and Decorum

  • The Supreme Court courtroom is a professional setting requiring complete quiet from the audience. The atmosphere is akin to that of a very, very quiet church. Talking will not be tolerated and you could be removed by marshals.  
  • Children are allowed in the courtroom. However, I recommend families with young children view the proceedings from the Jury Assembly Room on the third floor, which is a less formal setting.
  • No food or drinks allowed in the courtroom.

Rally Signs

We are asking supporters to bring their own signs highlighting their personal message of support. A poster board decorated with markers, paints, glitter, etc… is a simple, inexpensive way to do this.  We will also have parent-made signs available at the rally. 

As a sign of solidarity with other ESA supporters we are asking that signs have both, our hashtag #LetOurChildrenSucceed and that of our fellow ESA supporters: #YestoESA.

We will have a place outside the courthouse building to leave signs.

Parking

Metered parking is available in lots along 3rd St. and Clark and at the Clark County Parking garage at 455 S. 3rd Street.  The Fremont Street Experience parking garage located at 425 Fremont also offers paid parking.  You enter off 4th Street off Carson. If parking is an issue, please call me at 702-222-0642.  We can arrange free shuttle transport with our rally partner group.

Seating

The Supreme Court courtroom, located on the 17th floor, seats about 60 -70 people.  An estimated 30 seats are expected to be reserved, leaving just a few seats for the public.  Overflow seating is located in the Jury Assembly Room, located on the Third Floor. All seats will be filled on a first-come, first-seated basis.

This is it, parents. The legal team, Treasurer Dan Schwartz and the brave parents intervening in Duncan need your support. They need your strength! 

Come on down and rally for Nevada’s children — your children.

If you are in northern Nevada call me about events there, 702-222-0642.  Your voice will not be left out!

#LetOurChildrenSucceed

~Karen

 

In case you missed it...

 

Free speech:

Nineteen United States senators took to the Senate floor earlier this week in an organized attempt to shame and even criminalize political dissent. Senator Harry Reid even went so far as to single out NPRI by name — describing the Institute as a front group for big oil. For some power-hungry Washington elites, thoughtful policy discussions are apparently too much of a danger to allow. (Read more)

 

Climate change:

The Attorneys General who are spearheading an effort to obtain documents from researchers and think tanks that dissent from the environmentalist left’s position on global warming may soon have to come clean about their ties to green energy groups. A United States House committee has subpoenaed two of the attorneys general, demanding that they reveal the green energy activists encouraging them to pursue an investigation into groups that are skeptical of man-made climate change. (Read more)

 

Education:

About 56 percent of all teachers in the Clark County School District were absent for more than 10 days of school in 2013-14, according to the Las Vegas Review-Journal. Statewide, Nevada almost doubled the average national rate of teacher absenteeism. With critical teacher shortages already a major concern in recent years, maybe something ought to be done to make sure the teachers CCSD already hired improve their attendance records. (Read more)

 

Healthcare:

Another month, and there’s another Obamacare co-op failure. Oregon’s second taxpayer-funded healthcare co-op has closed its doors, leaving 40,000 consumers without federally mandated insurance. This most recent failure means that a total of 15 co-ops have now gone under, costing taxpayers more than $1.5 billion. (Read more)

 

Political correctness:

NASA is planning on spending $73,500 to teach its astronauts about diversity, “unconscious biases” and white privilege. The program will focus on how to avoid “micro-aggressions” in the workplace, while combating unintentional personal biases. The firm providing the politically correct sensitivity training describes itself as “a minority and woman-owned firm that advocates taking action.” According to its website, the company “is a catalyst for change,” adding that “the diversity journey has evolved.” (Read more)

 

Presidential politics:

A recent graduate from Reno High School, nineteen-year-old Ryder Haag, will be one of the youngest delegates at the Republican National Convention in Cleveland on Monday. After getting interested in speech and debate in high school, Haag says his main concern has been economic policies. “Balanced budgets just make sense,” Haag explained. “It’s the right things to do with our communities. You just can’t be leaving a large amount of debt to your grandchildren.” After campaigning for himself at the county and state level, Haag now heads to Cleveland as the youngest delegate from the Silver State. (Read more)

Total Records: 2016

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