ARKANSAS EMPLOYMENT GROWTH
TRAILS NATIONAL AVERAGE
"There is significant
evidence that reductions in marginal state tax rates encourage state economic
growth ...Rates on productive behavior should be reduced." “Reduce the state's
income tax…repeal the state's capital gains tax.” Arkansas Policy Foundation,
Murphy Commission project, 1998
(December
2017) Nine years into a national economic expansion Arkansas' economy trails
the national average in jobs creation, according to U.S. Bureau of Labor
Statistics records.
Arkansas
payroll employment has increased 8.3% since the expansion began in June 2009.1 By contrast, U.S. employment increased 12.2%,
BLS records show.2 U.S.
jobs creation also expanded at a higher percentage rate (5.5%) in the preceding
expansion (November 2001-December 2007).
Arkansas employment grew 5.2% in the period.3
State Legislators Examine Jobs Issue
State
legislators on the Arkansas Tax Reform and Relief Task Force are reviewing the
state's fiscal structure. The task
force's4
purpose "is to examine and identify areas of potential reform and to recommend
legislation" for consideration during the 2019 regular session.
The
act specifies the panel examine the following issues:
(A)
Modernize and simplify the Arkansas tax code;
(B)
Make the Arkansas tax laws competitive with other states in order to attract
businesses to the state;
(C)
Create jobs for Arkansans; and
(D)
Ensure fairness to all individuals and entities impacted by the tax laws of the
State of Arkansas.
Arkansas Also Trails Region
Payroll
employment is the broadest economic indicator at the state level. BLS records
also show Arkansas trails most states in the 12-state southeast region in the
current expansion.
State June 2009 October 2017 Growth Rate Florida 7,221,100 8,655,100 19.9% South Carolina 1,808,600 2,102,500 16.3% Tennessee 2,602,800 3,023,400 16.2% Georgia 3,898,300 4,510,100 15.7% North Carolina 3,896,500 4,439,300 13.9% Kentucky 1,754,200 1,949,400 11.1% Virginia 3,652,200 3,973,100 8.8% Arkansas 1,161,400 1,258,200 8.3% Alabama 1,883,600 2,012,200 6.8% Mississippi 1,095,800 1,153,600 5.3% Louisiana 1,896,900 1,977,700 4.3% West Virginia 749,400 748,700 -0.09%
Arkansas
also trailed most states in the preceding expansion.
State Nov. 2001 Dec. 2007 Growth Rate Florida 7,123,000 7,931,800 11.4% South Carolina 1,796,500 1,949,300 8.5% North Carolina 3,847,000 4,168,200 8.3% Virginia 3,496,100 3,777,000 8.0% Alabama 1,895,900 2,013,400 6.2% Georgia 3,933,700 4,170,300 6.0% Tennessee 2,658,600 2,804,600 5.5% Arkansas 1,147,600 1,207,400 5.2% Kentucky 1,777,400 1,858,000 4.5% West Virginia 735,200 760,200 3.4% Mississippi 1,125,000 1,160,300 3.1% Louisiana 1,905,800 1,935,000 1.5%
--Greg
Kaza
1 National Bureau of Economic Research,
http://www.nber.org/cycles/cyclesmain.html
2 BLS, Current Employment
Statistics. Arkansas (June 2009)1,161,400 (October 2017)1,258,200. United States (June 2009)
131,021,000 (October 2017) 147,013,000.
https://www.bls.gov/home.htm
3 BLS,
CES. Arkansas (November
2001) 1,147,600 (December 2007) 1,207,400. U.S. (November 2001) 131,176,000
(December 2007) 138,413,000.
4 PA 79 of 2017 (Sponsor: Rep. Mathew W. Pitsch, R-Fort Smith)