Mississippi politicians are increasingly focused on improving the state’s low labor force participation rate.
For example, after his re-election to a second term, Lieutenant Governor Delbert Hosemann stated that increasing this number was a top priority.
Why has Mississippi been at the bottom of these labor market statistics for years? And why does that matter?
Empower Mississippi, a conservative research and advocacy group, has provided some helpful answers to both questions.
This week, she released a study she commissioned from a research center at Mississippi State University. The goal of the study, one of at least two reports that Empower Mississippi plans to produce on the topic, was to identify the problem and its causes. The report does not contain any recommendations. Those will follow later.
So why are fewer than 54% of adults in Mississippi employed or looking for work?
The study revealed two main factors. The first is the overall low level of education. The other is the age of the population.
The lower a person’s level of education, the lower their chances of being employed. People with low levels of education and qualifications are less employable. If they do find work, it is usually for lower wages and often in seasonal jobs.
It’s also no surprise that age is a determining factor in whether someone works or looks for work. As people get older, they’re more likely to think about retirement than about work. Nearly 9 in 10 Mississippians who are 65 or older aren’t working. The vast majority of them say it’s because they’re retired.
On both measures—education level and age—Mississippi does not do well when it comes to increasing the labor force participation rate.
Although the state has shown some notable improvements in standardized test scores in recent years, especially in the lower grades, a significant portion of the population never gets much further than high school or into a trade. And while the entire country is aging due to the imbalance between the large baby boomer community and the smaller numbers of succeeding generations, the imbalance seems particularly acute in Mississippi. Our predominantly rural state is struggling to retain and attract young adults who are moving to major metropolitan areas to work and raise their families.
Although race is also a factor in predicting labor force participation, its influence is not as great as some might expect. Black and white residents have virtually the same probability of being employed, both roughly matching the troubling national average. The higher percentage comes from residents of Hispanic origin, whose labor force participation rate is nearly 62%.
Why are these numbers important?
Empower explains it well. Low labor force participation leads to slower economic growth and greater dependence on government. Both outcomes also lead to higher taxes for those who work or have capital gains.
However, a large number of able-bodied people who are not working is not only a burden on the economy. Unemployment is also a burden on self-esteem and the feeling of achievement. It is a source of pride when you can support yourself and your family through your own work. Those who depend on the state for accommodation, food or other daily expenses do not experience the satisfaction that comes with self-employment.
Bottom line: To increase labor force participation in Mississippi, we need more education and more young people. That’s not hard to understand.
The challenge is to develop policies that do both. Empower Mississippi, already a big proponent of school choice, will surely have more to say on that.
