PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

States with Top Job Growth Offer Better Policy Environments for Small Business

By at 23 September, 2019, 10:16 pm

by Raymond J. Keating-

According to the latest state employment report from the U.S. Bureau of Labor Statistics, employment growth in August was concentrated in just a few states.

Specifically, five states had statistically significant gains in nonfarm payroll employment in August over July – Arizona, California, Florida, Georgia and Kansas – while one state – Oklahoma – had a statistically significant decline in payrolls.

Taking a look at employment changes over the past year (August 2018 to August 2019), 26 states had statistically significant gains. The top 10 states in terms of percentage gains in employment each registered 2 percent or better.

August 2018-August 2019

State

     Percentage Employment Gain

Nevada

     3.0%

Utah

     2.8%

Washington

     2.6%

Arizona

     2.5%

Florida

     2.5%

Texas

     2.4%

Colorado

     2.4%

New Mexico

     2.1%

Idaho

     2.1%

Alabama

     2.0%

It must be noted that all of these states rank in the top 26 states ranked on SBE Council’s “Small Business Policy Index 2019: Ranking the States on Policy Measures and Costs Impacting Entrepreneurship and Small Business Growth,” which ranks the 50 states according to 62 different policy measures, including assorted tax, regulatory and government spending measures.

And 8 of these top 10 job gainers come in among the top 12 states on the Index, and 7 are in the top 10 on the Index.

Once again, we see that the policy environment for entrepreneurs, small businesses and investors – those who drive economic and employment growth – matters a great deal. The lighter the governmental burdens, the greater the freedom, ability and incentives for critical risk taking.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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