Steve Roberts: West Virginia won’t play the victim

August 6, 2015

By: Steve Roberts

The pathway to finding a job and the buying power and security brought by steady employment is becoming less and less real for too many West Virginians.

Federal data reveals our state has the nation’s highest unemployment rate, second fastest population decline, lowest level of participation in the workforce and less job creation than all other states.

This troubling state of affairs is documented in reports compiled by the U.S. Bureau of Labor Statistics and the U.S. Census.

Prior to today’s situation, our state had about a 10-year stretch of reasonably good news where per capita income and jobs increased, providing revenue to counties and the state.

This period of growth allowed communities and government to pay down long term debt, build new schools and offer employment to our fellow citizens. Energy production, chiefly coal mining, led the way in improving our economy through much of this period.

Many West Virginians are surprised to learn our state’s highest wages are paid in counties that produce the most coal.

During the 10-year coal boom, the highest average annual earnings to workers came from Boone County, then our largest coal producer. As U.S. Environmental Protection Agency rules take effect the picture for many West Virginia working families darkens.

Several factors, including the extraction of reasonably priced and abundant natural gas, must be considered in looking at world energy supplies and market costs.

However, it is important to know coal and all West Virginia-produced fossil fuels are under unprecedented attack from the Obama administration.

The Democratic Party platform calls for electricity production that would require 50 percent less coal use in the foreseeable future.

Meantime, China is opening a new coal powered generating plant each week.

The West Virginia Chamber of Commerce, whose members employ over half of our state’s workers, is not throwing in the towel, but is adding its voice with legislative and state leaders who know we can and should do better.

Most job creation in any state comes from existing business. As West Virginia’s largest business advocacy network, the Chamber has unique abilities to hear from employers who want the opportunity to grow and prosper where they are planted.

The Chamber has developed a jobs plan for West Virginia’s future and invites readers’ thoughts and comments.

Manufacturing: First, reverse the job losses. Our manufacturing members tell us West Virginia’s tax structure impedes job creation. The No. 1 problem identified is our tax on equipment and inventory.

Manufacturers also tell us that replacing an aging workforce with competent, well trained and drug-free new workers is a must.

Energy exploration and production: The world needs our fuel. Nearly 70 percent of U.S. electricity is produced by natural gas and coal. Technology, research and infrastructure are needed to keep these resources viable.

Banking and insurance: Some small states have attracted jobs from banks and insurance companies. These companies are ‘back office’ intensive.

Our low commercial occupancy costs and competitive wages could make us a real center of banking, insurance and credit company back office jobs.

Defense contracting: West Virginia is 50th in the nation in sales to the Department of Defense. The Pentagon is the largest purchaser of goods and technical services on Planet Earth. Let’s develop a vehicle for supplying these needs.

Tourism and state image: Let’s change regional and national perceptions. We have a wonderful story to tell. Let’s recommit ourselves to a bigger, better message.

Small business and entrepreneurs: the state’s engine of job creation needs well prepared, drug-free workers, high speed Internet and freedom from overly burdensome paperwork and compliance filings.

Health care and education: With so many people living in close proximity to our state, continuing to attract patients to world class health facilities is a must. Health providers demand good schools and a culture of innovation in our communities.

Universities and research: Our universities attract talent. Harnessing the innovation and horsepower of faculty and students is a must. Surrounding states have created research parks and innovation zones that keep our universities and their students at home.

The West Virginia Legislature enacted long-needed economic reforms in the 2015 session. Its bold leaders are promising to do more to help in 2016.

Innovation in education, assistance for small business, regulatory reform and legal fairness were meaningfully addressed by the new Legislature. These improvements will help West Virginia diversify its economy and compete with other states.

West Virginia has too much going for it to sit back and play the role of victim.

Now is our time to advance our future with good policy backed by vision and leadership.

Roberts is president of the West Virginia Chamber of Commerce.