States Programs Need Stronger Job Creation and Quality Metrics, According to Study

Most state economic development programs employ quantifiable metrics, but too few report metrics related to job creation and job quality, according to a study and report card released by Good Jobs First. The authors examined 238 economic development subsidy programs in all 50 states and Washington D.C., including corporate income tax credits, cash grants, loans, enterprise zones, worker training grants and other types of programs. Though none of the states scored an "A" in the report ratings, Nevada, North Carolina and Vermont took the top spots.

Good Jobs First is a nonpartisan policy resource center that promotes improved tracking of economic development impacts, with an emphasis on smart growth and higher-quality jobs. In Money for Something, the group maintains that states spend billions on economic development subsidies each year, but many do not sufficiently track job creation or quality.

The 238 programs included in the study were evaluated on whether they tracked job creation, wages or worker benefits for recipient companies. Several sub-metrics were included within each of the three categories. Programs were then given a score between 0 and 100, with a potential 25 points of extra credit based on five less common requirements related to job quality. These include:

• Wage standards set above the labor market wage average;
• Other employee benefits, such as retirement, paid sick days and vacation time and parental leave;
• Wage and benefit requirements for part-time and temporary workers;
• Geographic hiring preferences; and,
• Labor relations provisions.

States were then assigned an average score based on their programs.

While Nevada, North Carolina and Vermont had the highest averages, other programs from around the country are given special notice for their high standards or their adoption of rarer requirements. Several TBED-related programs rated among the highest scoring programs in the nation, including Oklahoma's 21st Century Quality Jobs program and the One North Carolina Fund.

A state-by-state listing of the evaluated programs, their rankings and estimated annual cost is available on the website. The group plans to release a follow-up report evaluating state monitoring and enforcement practices related to these metrics.

Read Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs...