Great Job Creation Numbers!

The January jobs report and the revisions for December and November from the Bureau of Labor Statistics are out today and they look great. America created 257.000 new private sector jobs, only 14,000 public sector jobs wre lost to dumb spending cuts, for a net new 243,000 jobs in January. December's numbers were revised up from 200,000 to 203,000 new jobs, and November from 100,000 to 157,000 as late reporting businesses trickle their statistics in and the BLS does further monthly recalculation of seasonal factors.

The unemployment rate dropped from 8.5% to 8.3%.

Looking under the hood, in January we created 70,000 positions in proefessional and business services. Manufacturing added 50,000. Leisure and hospitality was up by 44,000. Health care was up by 33,000. (So much for Obamacare killing the health care sector, looks like they're staffing up to take care of the additional 30 million who will soon be insured). Construction increased by 21,000 in January, following a gain of 31,000 in the previous month. That's good news for the housing industry as the Obama adminstration has revamped some of their programs to make it easier for buyers to get mortgages for new houses and others to refinance.

The manufacturing workweek increased by 0.3 hour to 40.9 hours, and factory overtime increased by 0.1 hour to 3.4
hours. This means there is room for more new hires in the manfacturing sector as GM, Ford and Chrysler all have plans to do. Good thing Obama didn't pay attention to Republicans in 2009 when they preferred to kill the American car companies and not only their jobs but millions of others at their suppliers.  

For months now forecasters have been telling us that growth in the second half of 2011 would be strong but the beginning of 2012 will be weak. It's not looking that way so far but that doesn't mean it won't fade back. Government spending cuts enacted last year in the GOP hostage dramas last spring and summer over the budget and debt ceiling, possible oil price hikes from an Israeli attack on Iran, oil company and speculator greed coupled with oil demand from developing countries could send gasoline prices to $5 a gallon by summer putting a kabosh on a recovery. And let's not forget that the unexepected, like the earthquake/tsunami in Japan and the resulting Fukushima nuclear plant meltdown that idled almost the entire car manufacturing sector in the US, transplant and American alike for months last year, can happen at any time.

But enough of those worries for now.

Let's turn to what happened here in our own neighborhood here the Midwest. The BLS also released numbers a week ago for job creation last year in individual states.

In Illinois we created 52.000 private sector nonfarm payrolls jobs in 2011 even though we raised corporate and individual income taxes. In that so-called employer's paradise Indiana, where everybody knew the GOP controlled assembly and governor were set to pass a "Right to Work for Less" law that makes paying union dues strictly voluntary and are eyeing teaching creationism's dressed up sister "intelligent design" as science in the classroom they created all of 17,700 new non farm jobs in 2011. In WI where Governor Walker gutted public employee union bargaining rights and slashed their pay and pensions after giving away $127 million in tax cuts to big business all in the name of job creation they only created 3,200 new nonfarm jobs and none, zero, nadda in the second half of the year after Walker's policies went into effect.

Recently Greg Bedalov President & CEO of Choose DuPage, the regional economic development corporation that works in close conjunction with DuPage County government to bring businesses to DuPage County addressed the Downers Grove Township Democratic Organization at our monthly meeting. When I say closely I mean closely, their board reads like a list of companies doing business with the county, the largest employers in the area, and local GOP politicians. One of our DGTDO members, the always thoughtful Greg Hose asked Mr. Bedalov what is the single biggest factor businesses look for when they are thinking of relocating or building a new plant or office. Without a doubt said Greg the one thing they look for most is an educated workforce, hands down.

Yesterday Germany-based ThyssenKrupp, a diversified manufacturing company that makes elevators, auto components and carbon steel, said it will establish a regional headquarters for North America in Chicago this summer. The regional HQ will employee 100 people to add to the 1400 they already employee at two plants in Danville. From the Tribune article today:

"The company did not seek financial incentives as it considered more than 20 cities around the U.S. for the regional headquarters."
"We've learned not to run where the incentives are or where there is the lowest tax rate," Gessner said. "We need the overall picture."
"Weighing in Chicago's favor are its extensive air service and a highly skilled profession labor pool, Emanuel said."

It's pretty clear we have advantages states like WI and IN don't have with our transportation facilities and a world class city like Chicago. What's also clear is that employers want well educated workers. Indiana, which hasn't had public sector unions for some time and Wisconsin whose governor is doing his best to destroy theirs aren't doing their kids any favors by convincing their teachers they're not valued. If WI and IN want to make their schools Double A minor league ball teams where good teachers work for peanuts until they graduate to the big leagues in states like Illinois that's their problem. But such shortsighted thinking isn't going to make them more appealing to employers or help create jobs in the long run.