By Will Collette
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| Source: RI Department of Labor & Training |
The latest unemployment figures for Charlestown show our town's rate is dropped to only 5.8%. That's a drop of 1.2 points just in the last month and brings Charlestown's unemployment rate down to the lowest point it's been since before the Big Recession (December 2007 when the rate was 5.2%).
Six and a half long and difficult years. But one key reason why Charlestown unemployment has gotten back to pre-Recession levels is because a lot of workers have simply left the workforce.
The last time Charlestown unemployment was under 6% in December 2007, almost 350 more Charlestown workers were actually working. In a small town like Charlestown, that's a big swing. It means that over 7% of Charlestown workers who were working in 2007 aren't working anymore.
It does not necessarily mean that more Charlestown workers are now blissfully retired with comfortable pensions since virtually every study showed that the Great Recession was historically different for how hard it hit older, experienced workers> Further, the long-term unemployed were stigmatized when they sought new employment.
Contrary to its image, Charlestown is far from being the paradise for wealthy, elderly retirees. 66.2% of Charlestown residents over the age of 16 are still counted as part of the workforce.
Many workers over 50 who were laid off during the Great Recession simply haven't been able to go back to work. They have either retired early on reduced benefits, applied for Social Security Disability, or fell off the charts when their unemployment compensation ran out.
That has left the American economy - and Rhode Island in particular - with a shortage of workers in many skill areas and further stiffled economic recovery.
That left many Charlestown workers in a bind. Most of the major occupations held by Charlestown workers, such as construction, declined between 2006 and today, while other occupations, many that require specific training, showed growth. This chart breaks it down:
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| From Nesi's Notes, using RIDLT data |
Many unemployed workers under the age of 50, especially those laid off early in the Recession, found themselves in the bind where their length of unemployment became another reason why prospective employers didn't want to hire them.
Many of these workers, facing an end to unemployment compensation benefits, took jobs that meant huge cuts in pay and benefits and could no longer afford to stay in Charlestown. Many resorted to desperate measures to stay alive.
It was the plight of these workers that motivated Charlestown Democrats to propose a Homestead Property Tax Credit to give some relief to permanent residents who suffered from the double-whammy of falling home values and equity, plus reduced employment opportunities, pay and benefits.
Of course, this was seen as "class warfare" by Charlestown's one-percenters, organized by the Charlestown Citizens Alliance and RI Statewide Coalition to strangle the idea of middle-class tax relief in its cradle.In its place, the ruling CCA Party has raised Charlestown property taxes for six straight years, even in those years when Charlestown had a sizeable surplus. Rather than offer tax relief, the CCA Party instead spent surpluses on capital projects and property acquisition.
Instead of growing at the moderate clip forecast in Charlestown's Comprehensive Plan, instead Charlestown lost population, dropping by 3.4% over the past four years. Indeed, the Comprehensive Plan predicted a Charlestown population of almost 9000 by the year 2000, but we only had 7,859 people. We lost population in the 2010 census.
According to the Comprehensive Plan Update we are currently working under, we should be hitting that 9,000 person mark right about now, but instead we have lost population since the last dicennial census.
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| Chart from the 2006 Five-Year Comprehensive Plan Update |
I understand that depopulation is the de facto policy of the CCA Party which has ruled Charlestown for the past six years. They've made it perfectly clear that the fewer people, the better and that they would especially like to encourage families with school-age children to leave Charlestown ASAP.
But our declining population and stagnant workforce costs us all money. It cuts the Charlestown "grand list" (the total taxable worth of Charlestown property - our tax base) which increases our individual tax burden.
While home foreclosures are very low, Charlestown still has a boatload of distressed properties where the banks are doing "pre-foreclosures" and auctions. Zillow shows a 1% decline in Charlestown home values over the past year and predicts another 2.3% drop over the next year.
Despite everything I've just said, I really am very glad to see Charlestown's official unemployment rate decline. May it continue to do so!
But let's not allow this bit of good news become an excuse to forget about the many very practical steps Charlestown could take - if it had leadership that actually cared about working families, rather than rich non-residents - to further improve the ability of town residents to thrive. I listed them HERE and still believe they are a necessary part of Charlestown's future.
