Private-sector jobs are gone, but government is hiring
A couple of news stories today paint an intriguing picture of employment trends in the Portland metropolitan area. One covers private-sector employment, and the other covers employment overall. Put together, they seem to demonstrate that while private-sector employment is dwindling, other employment -- which we assume to mean public-sector employment -- is in fact growing.
Let's start with the private-sector first. The Portland metropolitan area has lost 88,800 private-sector jobs in the last two years, according to these statistics from the federal Labor Department. That's 9.94% of the private-sector employment in the area. May 2010 metro area private-sector employment is estimated at 804,300, down from 893,100 in May 2008.
Over the last decade, the private-sector job loss in the area has been 32,300, or 3.86%. On a percentage basis, that's 36th worst on the list of 100 largest metropolitan areas in the country.
In the last year, private-sector employment in the area declined by 21,700 jobs, or 2.6%.
But then there are the overall nonfarm employment statistics, which are over here. According to those numbers, in the past year overall employment in the area in the area was down 20,100, or 2.1%. But if private-sector employment is down 21,700, while overall employment is down 20,100, one could reasonably conclude that the public sector actually added 1,600 jobs.
Or maybe I'm misinterpreting unfamiliar data sets. Here they are in a table -- readers, help me out if I'm missing something:
Date
Private-sector
Overall nonfarm
Difference (public sector)
May 2010
804,300
958,500
154,200
May 2009
826,000
978,600
152,600
Increase (decrease) 2009-2010
(21,700)
(20,100)
1,600
The figures also show that while Portland is being hammered economically, Bend and Corvallis have had an even rougher year, each posting a 2.9% overall employment decline since May 2009. Funny thing, though -- Salem, the state capital, lost only 0.4% of its jobs over that year. Eugene was at 0.7%, and Medford 1.2%.
Comments (23)
This is pretty much what happens in every economic downturn: private sector sheds jobs, government hires. In the upturn, private sector starts hiring; government starts shedding jobs. Unfortunately, government never sheds anything close to the number they added.
"government never sheds anything close to the number they added."
I'd have to disagree. Once things get good govt hires even faster. cf. 2007 when Kulongoski got a big upside in revenue. Govt only lays off if they really, really, realy have to.
I've noticed the return of a scam I haven't seen in twenty years: the services that promise to assist the desperately unemployed with getting government positions for a fee. The ongoing mantra is that government jobs are stable, easy, and ageism-free, so you see a lot of people in their fifties and sixties paying for these services. Naturally, they're about as above-board as those "apartment search" services in Portland in the Nineties, that would charge a nonrefundable $70 for a list of places that hadn't had a rental vacancy in three years.
But Randy "Dear Father" Leonard has bloated the PWB with people who need favors, and a whole lot of bloggers. PR people writing articles for neighborhood papers getting the "word out" about how great they are at PWB.
I do a lot of economic research and can provide some insight here. In bad recessions, historically, state & local government job counts have declined. The last bad recession was in the early 1980s. In soft recessions, state and local government jobs grow slightly. In all recessions, pretty much by definition, private jobs are lost.
In this recession, obviously a very bad recession, we have lost many private sector jobs. But what is an anomaly is that S&L jobs are up.
In the last dozen years, Multnomah has seen private job declines. Most other counties, including those in our suburbs, have seen private job increases. It is a big discrepancy.
Growth and security of government jobs (local and state, not federal) depends on an economy's ability to foster private sector job growth. Unless you are a bicycle shop, the city has not done much fostering.
You need to be somewhat careful with comparing employment statistics, as the definitions vary widely. This info is easily available for the Portland metro area at the following link:
Your general observation appears to be supported by the most recent data. Private sector payroll employment dropped 23,000 since last year, while Government employment added 100 jobs net. Oddly, this included an 1,100 addition to local education.
It's the same link that Pete gave above. Click on "Employment and Labor Tools" in the lefthand column. Have to play around with it for awhile, but the data is there.
I do a lot of economic research and can provide some insight here. In bad recessions, historically, state & local government job counts have declined. The last bad recession was in the early 1980s. In soft recessions, state and local government jobs grow slightly. In all recessions, pretty much by definition, private jobs are lost.
In this recession, obviously a very bad recession, we have lost many private sector jobs. But what is an anomaly is that S&L jobs are up.
I'd like some sources on this claim because this is completely contradicted by this chart from the NY Times:
It is not unusual for government jobs to grow during recessions because governments are trying to reduce unemployment and put money into the economy.
A better question is whether the jobs are productive or not. For instance, the stimulus bill created 10's thousands of trail maintenance jobs for students at national parks and forests, which seems to me a very reasonable use of stimulus funds.
As usual, the feds and the state use slightly different numbers. The fed report shows Portland metro overall nonfarm employment in April '10 as 953,900. The state gives it as 954,600.
The last time we had a recession this steep was 1982. During that recession, Government employment dropped along with, although not as rapidly as private sector employment.
Not long after millions of new jobs were added to payrolls (1983 and 1984). GDP caught on fire, pushing up against ten percent annualized growth rates in late 1983 and early 1984.
Actually, another version of the state report confirms my numbers exactly.
Per this report, local government dropped 600 employees in the Portland MSA from May 09 to May 10, and the federal government added 1800. What federal agency would have added that many in the past year?
It would be nice to have even more data to work with. As I recall the Portland Police Bureau has not added any patrol people and the Portland Public Schools have been losing students. So which departments have been losing and which have been adding. Are they in Portland, Beaverton or other locations?
So there are all sorts of private sector segments where investors are just aching to spend, if local government would only "foster"? What are they? And how much corporate welfare does "fostering" require?
The New York Times article you site only looks at the current recession and federal stimulus dollars paid local government to keep employment up. In past bad recessions, state & local job counts dropped.
While it is true some government services are in higher demand during recessions (employment department and university jobs, for example) others are in lower demand (DMV, permit offices, revenue, and even foster care). There is less demand for infrastructure expansions because fewer private projects going on. Net, S&L job demand should be down, albeit slightly.
As I recall the Portland Police Bureau has not added any patrol people and the Portland Public Schools have been losing students.
At least with regard to the Portland Public Schools, you recall incorrectly. PPS has gained students in each of the past two years. The 2010-11 estimates (which are only rough guesses at this point) are that they will be at about the same level as in 2009-10. The ADMr (weighted FTE student count) numbers for the past three years, according to ODE:
Charamba, Douro 2008
Horse Heaven Hills, Cabernet 2010
Lorelle, Horse Heaven Hills Pinot Grigio 2011
Avignonesi, Montepulciano 2004
Lorelle, Willamette Valley Pinot Noir 2011
Villa Antinori, Toscana 2007
Mercedes Eguren, Cabernet Sauvignon 2009
Lorelle, Columbia Valley Cabernet 2011
Purple Moon, Merlot 2011
Purple Moon, Chardonnnay 2011
Abacela, Vintner's Blend No. 12
Opula Red Blend 2010
Liberte, Pinot Noir 2010
Chateau Ste. Michelle, Indian Wells Red Blend 2010
Woodbridge, Chardonnay 2011
King Estate, Pinot Noir 2011
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Quinta das Amoras, Vinho Tinto 2010
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Lorelle, Horse Heaven Hills, Pinot Grigio 2011
Tarantas, Rose
Chateau Lajarre, Bordeaux 2009
La Vielle Ferme, Rose 2011
Benvolio, Pinot Grigio 2011
Nobilo Icon, Pinot Noir 2009
Lello, Douro Tinto 2009
Quinson Fils, Cotes de Provence Rose 2011
Anindor, Pinot Gris 2010
Buenas Ondas, Syrah Rose 2010
Les Fiefs d'Anglars, Malbec 2009
14 Hands, Pinot Gris 2011
Conundrum 2012
Condes de Albarei, Albariño 2011
Columbia Crest, Walter Clore Private Reserve 2007
Penelope Sanchez, Garnacha Syrah 2010
Canoe Ridge, Merlot 2007
Atalaya do Mar, Godello 2010
Vega Montan, Mencia
Benvolio, Pinot Grigio
Nobilo Icon, Pinot Noir, Marlborough 2009
Portuga, Rose 2011
Revelation, Chardonnay, Pays d'Oc 2010
Beaulieu, Cabernet, Rutherford 2005
Monte Alto, Tinto Reserva 2005
Chateau Ste. Michelle, Cabernet, Indian Wells 2009
Espiral, Vinho Rose
Vin-Koru, Pinot Gris 2011
14 Hands, Hot to Trot Red 2009
Rodney Strong, Cabernet, Sonoma 2009
Abacela, Vintner's Blend #11
Portuga, White 2010
La Bourgeoisie, Red 2009
Januik, Red 2009
Three Rivers, River's Red 2008
Kirkland, Alexander Valley Merlot 2008
Muga, Rioja Rose 2010
Quinta das Amoras, Vinho Tinto 2009
Mauro Molino, Barbera d'Alba 2009
Garda Chiaretto Rose
Columbia Crest, Two Vines Vineyard 10 White
Chateau Ste. Michelle, Pinot Gris, Columbia Valley 2009
L'Hortus, Rose de Saignee 2010
Maculan, Pino & Toi 2008
McKinley Springs, Bombing Range Red 2008
Trader Joe's Pinot Gris 2009
Montes Alpha, Cabernet 2007
Gran Sasso, Sangiovese, Terre di Chieti 2009
Garda, Classico Chiaretto Rose
Beaulieu, Cabernet, Rutherford 1999
Picos del Montgo, Tempranillo 2008
Chateau de Montmirail, Vacqueyras 2008
La Granja 360, Syrah 2009
Montgras, Carmenere Reserva 2009
Lange, Pinot Gris 2009
Columbia Crest, Horse Heaven Hills Cabernet 2008
Kirkland, Pinot Grigio 2010
Trader Joe's Coastal Syrah 2009
Columbia Crest, Horse Heaven Hills Merlot 2008
Trader Joe's Coastal Chardonnay 2009
Vieux Papes Red
Domaine de l'Aujardiere, Chardonnay 2009
Santa Rita, Cabernet, Medalla Real 2007
Penfold's, Koonunga Hill Shiraz Cabernet 2008
Guild, Red, Lot #02 2008
Dievole, Dievolino Sangiovese 2008
Laforet, Burgogne Chardonnay 2009
Columbia Winery, Merlot 2007
Bonterra, Cabernet 2008
Elk Cove, Pinot Gris 2009
Maquis Lien 2006
Scott Paul, Pinot Noir, Le Paulee 2007
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Comments (23)
This is pretty much what happens in every economic downturn: private sector sheds jobs, government hires. In the upturn, private sector starts hiring; government starts shedding jobs. Unfortunately, government never sheds anything close to the number they added.
Posted by Max | July 1, 2010 2:30 PM
Welcome to the new economy.
"government never sheds anything close to the number they added."
I'd have to disagree. Once things get good govt hires even faster. cf. 2007 when Kulongoski got a big upside in revenue. Govt only lays off if they really, really, realy have to.
Posted by Steve | July 1, 2010 2:45 PM
Wouldn't you expect some of that as the result of a fiscal stimulus? If so, would it be a bad thing in itself?
Posted by Allan L. | July 1, 2010 2:49 PM
I've noticed the return of a scam I haven't seen in twenty years: the services that promise to assist the desperately unemployed with getting government positions for a fee. The ongoing mantra is that government jobs are stable, easy, and ageism-free, so you see a lot of people in their fifties and sixties paying for these services. Naturally, they're about as above-board as those "apartment search" services in Portland in the Nineties, that would charge a nonrefundable $70 for a list of places that hadn't had a rental vacancy in three years.
Posted by Texas Triffid Ranch | July 1, 2010 2:54 PM
It is indeed troubling.
The bottom 20% of American's are struggling big time, and nobody seems to want to do anything about it.
But as government adds jobs the private sector is turning out THIS
So there is plenty of money out there.
It's just the same old story, the rich get richer and the poor die.
The history of the world in one sentence.
Posted by AL M | July 1, 2010 2:55 PM
Would this May 2010 public sector number be inflated by the federal "census worker" temporary jobs?
Posted by Poot | July 1, 2010 3:39 PM
Yes it does include Census data.
But Randy "Dear Father" Leonard has bloated the PWB with people who need favors, and a whole lot of bloggers. PR people writing articles for neighborhood papers getting the "word out" about how great they are at PWB.
Posted by richard g. | July 1, 2010 4:04 PM
I do a lot of economic research and can provide some insight here. In bad recessions, historically, state & local government job counts have declined. The last bad recession was in the early 1980s. In soft recessions, state and local government jobs grow slightly. In all recessions, pretty much by definition, private jobs are lost.
In this recession, obviously a very bad recession, we have lost many private sector jobs. But what is an anomaly is that S&L jobs are up.
In the last dozen years, Multnomah has seen private job declines. Most other counties, including those in our suburbs, have seen private job increases. It is a big discrepancy.
Growth and security of government jobs (local and state, not federal) depends on an economy's ability to foster private sector job growth. Unless you are a bicycle shop, the city has not done much fostering.
Posted by Robert | July 1, 2010 4:09 PM
I took a quick look at data from 2001 to 2009. This is data for Pdx/Vancouver Metro area. Data is from the state.
Over that time private sector lost 10,100 jobs or 1.2% loss.
From 2001 to 2009, the total public sector grew by 16,800 or 12.8% gain. LOCAL government grew by 13.8%.
Local government grew in all of those years except 2003. It grew fastest in 2007 and 2008, and even grew in 2009 by 700 jobs.
The government most certainly does NOT shed jobs in "good times."
Posted by Snards | July 1, 2010 4:10 PM
You need to be somewhat careful with comparing employment statistics, as the definitions vary widely. This info is easily available for the Portland metro area at the following link:
http://www.qualityinfo.org/pubs/llt/06-10/0610-pdx.pdf
Your general observation appears to be supported by the most recent data. Private sector payroll employment dropped 23,000 since last year, while Government employment added 100 jobs net. Oddly, this included an 1,100 addition to local education.
Posted by Pete | July 1, 2010 4:14 PM
I took a quick look at data from 2001 to 2009. This is data for Pdx/Vancouver Metro area. Data is from the state.
Interesting stuff. Do you have a link to that?
Posted by Jack Bog | July 1, 2010 4:14 PM
It's the same link that Pete gave above. Click on "Employment and Labor Tools" in the lefthand column. Have to play around with it for awhile, but the data is there.
Posted by Snards | July 1, 2010 4:26 PM
I do a lot of economic research and can provide some insight here. In bad recessions, historically, state & local government job counts have declined. The last bad recession was in the early 1980s. In soft recessions, state and local government jobs grow slightly. In all recessions, pretty much by definition, private jobs are lost.
In this recession, obviously a very bad recession, we have lost many private sector jobs. But what is an anomaly is that S&L jobs are up.
I'd like some sources on this claim because this is completely contradicted by this chart from the NY Times:
http://www.nytimes.com/2009/08/20/us/20states.html?_r=1&partner=rss&emc=rss
It is not unusual for government jobs to grow during recessions because governments are trying to reduce unemployment and put money into the economy.
A better question is whether the jobs are productive or not. For instance, the stimulus bill created 10's thousands of trail maintenance jobs for students at national parks and forests, which seems to me a very reasonable use of stimulus funds.
Posted by paul g. | July 1, 2010 4:52 PM
As usual, the feds and the state use slightly different numbers. The fed report shows Portland metro overall nonfarm employment in April '10 as 953,900. The state gives it as 954,600.
Posted by Jack Bog | July 1, 2010 4:53 PM
Actually, another version of the state report confirms my numbers exactly.
Posted by Jack Bog | July 1, 2010 5:28 PM
Who makes the money?
Private citizens.
Public, government, union, et al, would not exist without 'em. Tax $0 income and you get $0.
Explain how this is incorrect. Take all day.
You better be good.
Posted by got logic? | July 1, 2010 5:34 PM
The last time we had a recession this steep was 1982. During that recession, Government employment dropped along with, although not as rapidly as private sector employment.
Not long after millions of new jobs were added to payrolls (1983 and 1984). GDP caught on fire, pushing up against ten percent annualized growth rates in late 1983 and early 1984.
Posted by Grady Foster | July 1, 2010 6:58 PM
Actually, another version of the state report confirms my numbers exactly.
Per this report, local government dropped 600 employees in the Portland MSA from May 09 to May 10, and the federal government added 1800. What federal agency would have added that many in the past year?
Posted by Dilbert | July 1, 2010 7:58 PM
Robert @4:09 - if you're game, I'd like to pick your brain for a few minutes. Send me an email if so - Lkotan@yahoo.com
Posted by Larry K | July 1, 2010 7:58 PM
It would be nice to have even more data to work with. As I recall the Portland Police Bureau has not added any patrol people and the Portland Public Schools have been losing students. So which departments have been losing and which have been adding. Are they in Portland, Beaverton or other locations?
Posted by Bluecollar Libertarian | July 1, 2010 8:37 PM
So there are all sorts of private sector segments where investors are just aching to spend, if local government would only "foster"? What are they? And how much corporate welfare does "fostering" require?
Posted by Allan L. | July 2, 2010 7:06 AM
Paul g -
The New York Times article you site only looks at the current recession and federal stimulus dollars paid local government to keep employment up. In past bad recessions, state & local job counts dropped.
While it is true some government services are in higher demand during recessions (employment department and university jobs, for example) others are in lower demand (DMV, permit offices, revenue, and even foster care). There is less demand for infrastructure expansions because fewer private projects going on. Net, S&L job demand should be down, albeit slightly.
Posted by Robert | July 2, 2010 8:26 AM
As I recall the Portland Police Bureau has not added any patrol people and the Portland Public Schools have been losing students.
At least with regard to the Portland Public Schools, you recall incorrectly. PPS has gained students in each of the past two years. The 2010-11 estimates (which are only rough guesses at this point) are that they will be at about the same level as in 2009-10. The ADMr (weighted FTE student count) numbers for the past three years, according to ODE:
2007-08: 42453.1
2008-09: 42461.6
2009-10: 43225.0
Posted by rural resident | July 2, 2010 9:50 AM