A strong national economy has been of benefit to Maine as 11,100 net payroll jobs have been added in the last year including 8,600 private payroll jobs. Maine economic indicators show average earnings per job of $61,708 in 2022 and a percentage increase of 4.1% between 2021 and 2022.

Average earnings in Maine are increasing at rates that exceed both New England and U.S overall. The increase of the Maine’s minimum wage, now set at $14.15 per hour (the city of Portland has set a minimum wage of $15) along with the statutory requirement for annual minimum-wage adjustments based on cost of living has contributed to Maine wage growth and an overall better deal for Maine workers.

More than 14 million jobs have been created since President Biden took office. Among these jobs are 750,000 new manufacturing jobs as part of revival of this critical sector of our economy. These numbers are record-breaking and indisputable. The unemployment rate has been below 4 % for the 30 months — the longest stretch in 50 years. The U.S. Labor Department reports the share of working women rose to a historic high of 78%. And, according to the Bureau of Labor Statistics over the past 12 months, average hourly earnings have increased by 4.1%. The Economic Policy Institute reports that real wages (adjusted for Inflation) of low-wage workers grew 12.1% between 2019 and 2023.

In this economy, Maine workers have experienced some of the most favorable labor market conditions as job openings have exceeded the number of workers looking for jobs and wages have had to adjust to these market conditions. These labor market dynamics have also allowed thousands of workers trapped on low wage-low skill jobs to be able to switch to higher wage jobs, enter new career fields and improve their living standards. This newfound mobility was supported by workforce development policies including access to free community college and the availability of “no cost”, employer-sponsored skills training programs. Federal Pell grants have also been increased for low and middle income students incenting their enrollment in post-secondary education in preparation for future workforce entry. These active labor market policies have been accompanied at the national level by the cancellation of 132 billion dollars in student loan debt putting more income in young workers pockets.

How does job creation occur? Mainly, it through the confidence gained over the last 3 years among America’s employers and investors that the economy will grow and is supported by favorable public policies. As an example, the new Biden infrastructure law enables states to invest in workforce development using their highway formula funds which total nearly $250 million. The law is estimated to support more than 700,000 new jobs a year, including 175,000 manufacturing jobs,175,000 construction jobs and 100,000 transportation jobs. Most of this work will be performed by private contractors. The majority of these jobs will not require a college degree and are aimed for workers in rural areas, workers displaced from fossil fuel related industries, disadvantaged workers and workers in distressed areas.

Even with this buoyancy in the labor market, American consumers are facing high prices for food and housing causing negative attitudes about the economy overall. The price increases over the past two years have hung on stubbornly. As wholesale and producer prices have been lowered and corporate profits have increased over the last year, consumers have seen little relief exacerbating their negative view of the economy.

Yet, changes in attitudes of workers and employers about what we want from the economy are underfoot. A persistence of tight labor markets has caused a “newfound rise of labor unions” and “the highest numbers of Americans approving of labor unions since 1965,” according to the American Bar Association.

Tight labor markets and intense competition for labor are helping to change not only wages scales but also overall compensation and benefit offerings. For example, the state of Maine passed one of the most progressive Paid Family and Medical Leave (PFML) in the nation joining only 12 other states. Maine’s PFML will provide up to 12 weeks of paid leave for family, military or safe leave.

The economic collapse bought on by the pandemic has been profoundly remedied over the 4 years of the Biden administration. Record-breaking job growth, new investments in America’s infrastructure and the rebuilding of critical and strategic industries have renewed our economy. What was once considered an economy in retreat has now become the envy of the world. The path to a better future looks good but only if we can stay course. Sixteen Nobel Prize winning economists have warned that former President Trump’s plans for the economy would reignite inflation and cause lasting harm to the global economy. A Harris/Walz administration will give added thrust to the continuation of these positive economic policies.