An inability to maintain jobs and attract businesses means most U.S. state governments are losing ground to global competition, a new study reports. Many jobs can be kept in the U.S. if state governments make the right efforts to work with businesses, according to Dr. Ronald R. Pollina, author of the Top Ten Pro-Business States 2005: Keeping Jobs in America, an annual study of state and federal economic development policies.
“Each job loss has a reverse multiplier effect on the local economy of between 1.5 and 1.7 jobs,” commented Dr. Pollina. “This means that the impact of losing the three million U.S. manufacturing jobs that vanished between July 2000 and January 2004 could reach 5.1 million in total lost jobs.”
The report notes that since 2000, approximately 8,500 industrial facilities have been closed or significantly vacated as blue-collar jobs move to low wage markets overseas. As more manufacturing and service sector jobs go offshore, states need to reevaluate the economic development efforts, insisted Dr. Pollina.