Vermont to lose 3.4 percent of manufacturing jobs due to federal climate regs

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Ver­mont will lose 3.4 per­cent of its man­u­fac­tur­ing jobs by 2023 due to Oba­ma admin­is­tra­tion cli­mate reg­u­la­tions, accord­ing to a report on the impact of EPA rules on labor.

In recent years, the EPA has issued new rules for pow­er plants and vehi­cles in an attempt to cut car­bon diox­ide emissions.

Heritage Foundation graphic

While many stud­ies exam­ine how the rules will affect glob­al emis­sions, a study pub­lished last week by The Her­itage Foun­da­tion cal­cu­lates how many man­u­fac­tur­ing jobs states will lose due to envi­ron­men­tal regulations.

Accord­ing to the report, the U.S. will sur­ren­der 586,000 man­u­fac­tur­ing jobs by 2023 due to increased reg­u­la­to­ry cost bur­dens on busi­ness­es. Of those job loss­es, an esti­mat­ed 1,378 will come from Vermont.

While 34 states will lose between 3 per­cent to 4 per­cent of man­u­fac­tur­ing jobs, nine states — includ­ing one New Eng­land state — will expe­ri­ence even high­er job losses.

Among New Eng­land states, set­backs for work­ers will range from 2,260 loss­es in Rhode Island to 3,452 loss­es in New Hampshire.

Watchdog graphic

More­over, the report claims the cli­mate reg­u­la­tions will dri­ve up ener­gy costs and wipe out $2.5 tril­lion in aggre­gate gross domes­tic prod­uct nation­wide while hav­ing only “a neg­li­gi­ble pos­i­tive impact on the cli­mate and environment.”

In explain­ing the impact on busi­ness, the authors note that pol­i­cy “incen­tivizes busi­ness­es and con­sumers to change pro­duc­tion process­es, tech­nolo­gies and behav­ior in a man­ner com­pa­ra­ble to the administration’s reg­u­la­to­ry scheme.”

A loss of man­u­fac­tur­ing jobs is bad news for Vermont’s labor force, which shrunk dur­ing the reces­sion and has not bounced back.

Graphic courtesy of George Malek

DEAD CAT BOUNCE: The orange line in this graph from the Dept. of Labor shows that jobs are on the decline again in Vermont.

As shown in the graph­ic to the left, sea­son­al­ly adjust­ed employ­ment in Ver­mont was 344,500 at the end of 2006.

In 2009, how­ev­er, a flood of lay­offs cut that num­ber to 333,450.

Since that low point, jobs have bounced back only slight­ly. The most recent jobs report from the Ver­mont Depart­ment of Labor shows the num­ber of employed work­ers now stands at 337,300.

A loss of an addi­tion­al 1,378 man­u­fac­tur­ing jobs due to fed­er­al CO2 reg­u­la­tions is bad news for Vermonters.

In most cas­es, the loss of man­u­fac­tur­ing jobs due to cli­mate reg­u­la­tions will hit the pri­vate sec­tor of Vermont’s econ­o­my, as opposed to gov­ern­ment and farm sectors.

Annu­al employ­ment num­bers since the start of the reces­sion until now — both for the pri­vate and gov­ern­ment sec­tors — are indi­cat­ed in the table below.

As seen from the data, employ­ment with­in Vermont’s pri­vate sec­tor took a hit in 2009 but has since climbed back to even with 2007 num­bers. Employ­ment with­in the gov­ern­ment jobs sec­tor remained steady but flat over the same period.

Watchdog graphic