Prominent in the news reports today is the unexpected job growth that has just been announced. (So much for the value of government prognosticators!) As I was listening to that news report I also happen to be opening an email from my friends at Seyfarth Shaw LLP. They had sent me one of their One Minute Memos describing a study done by them for the U.S. Chamber of Commerce. This report is entitled The Impact of State Employment Policies on Job Growth: A 50-State Review. (You can find the link to the report at the bottom of this post.) It is a big report and I will admit that I have not yet read the entire thing, but will be.
However, the One Minute Memo did summarize some information and I want to pass this on to you. First, the BOTTOM LINE:
“… if highly regulated states reduced the burden of labor and employment regulation in their state, that reduction would act as a “free” shot of economic stimulus equal to approximately seven months of job creation at the current average rate.”
Seyfarth Shaw did an analysis of regulations on a state-by-state basis and classified the states by their current level of regulation regarding employment and labor. They classified them at Tier I, II or III, with III being the states with the heaviest regulation. Here are those results:
The following states were ranked as Tier I: Good – Alabama, Florida, Georgia, Idaho, Kansas, Mississippi, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and Virginia.
The following states were ranked as Tier II: Fair — Alaska, Arizona, Arkansas, Colorado, Delaware, Indiana, Iowa, Kentucky, Louisiana, Maryland, Minnesota, Missouri, Nebraska, New Hampshire, New Mexico, Ohio, Rhode Island, Vermont, West Virginia, and Wyoming.
The following states were ranked as Tier III: Poor – California, Connecticut, Hawaii, Illinois, Maine, Massachusetts, Michigan, Montana, Nevada, New Jersey, New York, Oregon, Pennsylvania, Washington, and Wisconsin.
I don’t know about you, but I am not particularly surprised by those states listed as Tier III states.
The report estimates that job creation could be boosted by 750,000 just by changes in state laws. Just think what might happen if the Federal government would do the same. Yet we are seeing nothing but an effort to increase regulation.
Here is where you can go to download the U.S. Chamber of Commerce report.
If you want to check out Seyfarth Shaw’s One Minute Memo click here.