HARRISBURG, Pa., Jan. 26, 2006 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry today said that the Rendell administration's ongoing characterization of the state's job count does not paint an accurate picture of the Commonwealth's overall economic health.
"Employment numbers are different than job numbers, and that distinction needs to be made," said Maura Donley, PA Chamber vice president of communications. "Unemployment rates don't tell us the whole story, and by themselves, don't indicate how Pennsylvania compares with the rest of the nation."
Despite the Rendell administration's claims to the contrary, Pennsylvania witnessed only lackluster employment growth and a decreasing labor force in 2005. According to the U.S. Bureau of Labor Statistics, the Commonwealth's labor force decreased by 4,000 from November 2005 to December 2005, and by 20,000 for the year.
Donley said while the state did experience some employment growth, the rate was well behind the national average. In 2005, Pennsylvania's total employment growth was just 0.5 percent, compared to the national average of 1.9 percent.
"The reality is that the Commonwealth continues to lag behind the rest of the nation," she said. "Statistics and studies show that Pennsylvania consistently under-performs when compared to other states. We aren't improving from a competitiveness standpoint, and that is nothing to brag about."
Donley said now is not the time to implement policies, such as an increase in the minimum wage, which would further hinder job creation by escalating the costs of doing business.
"Mandatory wages are job killers," she stressed. "Many small businesses are unable to absorb mandatory wage hikes because they can't pass along costs to customers or suppliers. As a result, they may be forced to either cut benefits, let job vacancies go unfilled or reduce the size of their work force to offset the pay increase."
As a new state budget season approaches, Donley urged the administration to take steps to create a stronger, more competitive business climate.
"The governor's plan for economic development has been to pick and choose projects that receive state dollars, while ignoring reforms that would improve the long-term competitiveness of all job creators, and advancing policies that threaten job creation altogether.
"This approach does nothing to make Pennsylvania a more attractive place for companies to expand or set up shop."
Donley said the PA Chamber looks forward to working with the administration and state lawmakers to implement meaningful improvements that will move the Commonwealth forward instead of allowing it to languish near the bottom of the competitiveness scale.
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with more than 12,000 members statewide. More information is available on the Chamber's website at www.pachamber.org.
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353