Coal profits are up in West Virginia, but so is poverty - Entrepreneur Generations

Though President Trump has boasted that he has turned around West Virginia's economy during his tenure, poverty is a growing problem there. "The Appalachian state is, along with Delaware, just one of two states where poverty rose last year, bucking the national trend of growing incomes and declining hardship, according to U.S. Census data released earlier this month," Aimee Picchi reports for CBS News. "West Virginia's poverty rate climbed to 19.1 percent last year from 17.9 percent, making it just one of four states with a poverty rate above 18 percent."

The state's GDP grew by 1.3 percent in the first quarter of 2018, putting it 37th in the nation and slowing from its 2.6 percent growth in the first quarter of 2017. The problem is that that growth has been in low-wage industries. "Folks who find jobs haven't found jobs that keep them out of poverty," said Sean O'Leary, senior policy analyst of non-profit think-tank the West Virginia Center on Budget and Policy. Overall, West Virginia saw a net job loss of 26,000 between early 2013 to late 2016, and has the lowest labor force participation in the U.S. at 53 percent, according to a West Virginia University study.

"West Virginia's dismal trends point to an economic issue that's impacting states across the country: Workers at the bottom of the pay scale aren't benefiting from the growing economy," Picchi reports. "Their issues range from low pay to unstable and scanty work hours, which makes it difficult to earn a living wage. Almost one in four West Virginians is employed in a low-wage job, the WVCBP found."

West Virginia is also reeling from the opioid epidemic and lack of college-educated adults. About 21 percent of West Virginians ages 25-64 has a college degree, making it one of the least-educated states in the country. In the post-recession economy, people with college degrees tend to fare better. "But many who lack that credential have been left out of the recovery, as evidenced in West Virginia," Picchi reports.

West Virginia also suffers from other hurdles in the fight against poverty: its smaller workforce size, older population, and higher rates of disability make it hard to attract employers.

from The Rural Blog https://ift.tt/2DPpZqZ Coal profits are up in West Virginia, but so is poverty - Entrepreneur Generations

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