While the economy has slowly started to rebound and state fiscal positions are getting stronger, high unemployment rates stubbornly remain and state leaders are still struggling to find ways to bring jobs to their states. According to a new Stateline article, states are once again turning to big incentive packages to either retain or lure companies into their states. In addition, states are experimenting with other creative solutions - such as work share - to help usher recovery in to a still-fragile economy.

According to a recent article in Governing magazine, New Jersey has been investing heavily in incentives as an economic development strategy. A Governing analysis found that the state's five major incentive programs awarded an estimated $1.95 billion to companies since 2011, which is more than the previous 15 years combined. “New Jersey has gone off the charts in the types of incentive deals it offers,” Dan Levine, a former assistant state treasurer who now runs MetroCompare, a corporate relocation firm, told Governing. “We’ve just got into a cycle of doubling down on incentives.”

Over the past decade as the Chinese market became more and more open, several U.S. states have seen their exports to the country grow by leaps and bounds. These states are now pushing to further increase the amount of exports to China. A recent Stateline article highlights the efforts of three states: California, Washington, and Iowa.

According to the U.S. Department of Commerce, 29 states set new records for export sales and 35 states saw an increase in merchandise export growth in 2012—20 of whom saw growth rates of five percent or more.  Nationally, exports increased 4.5 percent from 2011 to 2012. The value of total goods and services exported in 2012 reached a record $2.2 trillion nationally and supported 9.8 million jobs.

Ohio Senate Bill 116, introduced by Democratic Senator Eric H. Kearney and co-sponsored by Republican Sen. Bill Seitz, aims to exempt cities with populations over 50,000 from the state open container laws.  Cities would be able to designate “entertainment districts”, a one-half mile square area within which alcohol could be purchased and carried on the streets.  The idea is modeled after other popular tourist destinations such as New Orleans, LA, Las Vegas, NV, Savannah, GA, and Memphis, TN which allow open containers in some public places.  

Stateline Midwest ~ May 2013

At the same time that the nation’s unemployment rate was falling in 2012, entrepreneurial activity was slowing. According to the Kauffman Foundation’s annual Index of Entrepreneurial Activity, an average of 300 per 100,000 Americans started a business in 2012, down from 320 in 2011. This translates into approximately 514,000 new business establishments created each month in 2012, compared to about 543,000 in 2011.

Stateline Midwest ~ April 2013

Even as many indicators signal that state economies are on the rebound, one important and persistent labor market trend continues — the skills gap between the needs of employers and the qualifications of job seekers.

Wisconsin lawmakers believe a measure passed earlier this year will help close that gap in their state.

As China and other countries that attracted U.S. businesses in the past face some of those same issues that prompted their moves overseas, many U.S. and foreign businesses are looking to move to the U.S. “A lot of the same issues are happening in China as has happened in other countries as they move from developing economies to a developed economy,” said Chris Steele, chief operating officer at Investment Consulting Associates, an international company that offers advice on foreign direct investment and site selection. “You’re starting to see more of a demand for commodities, as well as for labor and it’s fundamentally changing the dynamics of that marketplace.”