ECONOMIC STUDY SHOWS MAINE LAGS BEHIND NATION IN JOB CREATION

Declining unemployment masks trend: workers in their prime and young families still struggling after recession

AUGUSTA—Even with the recent uptick in employment, Maine’s economy lags behind most of the country and all of New England according to a new economic study released by the non-partisan group, the Maine Center for Economic Policy (MECEP). The analysis shows that Maine’s declining unemployment rate is masking a more troubling trend in the Maine job market, namely the large number of “prime aged” workers (ages 25 -54) who remain either unemployed or underemployed.

New England job growth

“After four years, Governor LePage’s policies have left too many Mainers behind. His blueprint and actions aren’t working and Mainers are continuing to feel that effect,” said Senate President Justin Alfond of Portland. “Governor LePage has forfeited opportunities to bring more good paying jobs across our state and chased opportunity out the door. Mainers should have the security of knowing that if you want to work hard, there’s a job out there for you. ”

According to the report, older Mainers (ages 55 – 64) are driving the recent employment improvements while job prospects for prime aged workers remain stagnant. Currently, there are nearly 100,000 Mainers who want more work but can’t find it or have stopped looking for work.

ME unemployment by age

“Maine families are struggling in Governor LePage’s back-of-the pack economy,” said Speaker of the House Mark Eves of North Berwick. “While Governor LePage claims to be a business expert, his policies have only made it harder for many Maine people. Older workers don’t have the economic security to retire and younger families simply aren’t seeing the job opportunities. ”

Long-term unemployment remains a problem in Maine. According to the report, Maine has only recovered less than half of the jobs lost as a result of the recession compared to other New England states that have recovered 96% of their jobs. The nationwide recovery rate for jobs lost during the recession stands at 93%. The report cites that nearly one in three out of work Mainers have been looking for work for more than six months.

“A number doesn’t tell a whole picture but the stories from thousands of young families across Maine do. Governor LePage has us in a race to the bottom with his failed policies,” said Senate Majority Leader Troy Jackson of Allagash. “He’s continued to pick winners and losers and Governor LePage’s policies ignore most of us who are living outside the city. Where I come from, bragging rights don’t go to those at the back of the pack.”

Analysis shows that the Portland, Bangor, and Lewiston metropolitan areas account for 83 percent of the job growth post-recession but less than half the population of Maine lives there. Among states where unemployment is higher in rural areas than in urban areas, the difference in Maine is one of the largest in the nation.

USA job growth

“Maine has missed out on opportunities for job growth because of the governor. From sitting on voter-approved bonds to failing to invest in our innovation economy to chasing away Statoil, he’s stifled job creation efforts in our state,” said House Majority Leader Seth Berry of Bowdoinham, the House chair of the Joint Select Committee on Maine’s Workforce and Economic Future. “We need a CEO who makes smart choices to create jobs in the near-term and beyond.”

Under Governor LePage’s watch, he has twice refused to issue voter-approved bonds—a known economic stimulator. For three years in a row, Governor LePage has pushed so-called right to work measures. Research has found that workers, union and non-union, earn $1,500 less per year in so-called right-to-work states than in states that allow unions. Additionally, researchers have found that employees are less likely to receive healthcare and pension benefits through their jobs in right to work states.