The job numbers are back. The employment level has climbed back to where it was when the economy crashed in 2008-09. Unfortunately, many things have changed since 2008.

 

First, we have to remember that the work-age population grew by 15 million since 2008. That means we have the same number of jobs, but a lot more potential workers. Having all of those would-be workers on the sideline, ready to jump into the labor market, means wages are not going to grow any time soon.

 

In addition, the job market has changed. A recent report from the Federal Reserve shows that the number of people performing low-pay, low-skill jobs has increased. So have the number of high-skill, high-pay jobs. The trouble is the jobs in the middle have not. This leads to a labor market polarization. If we drew a picture of it, the situation would look like an hourglass. That is good for the people in the upper part, not so good for the people at the bottom – after all, while they might have jobs, it takes the skills they do not possess to move up. The middle-skill, middle-levels jobs are disappearing.

 

Gov. Markell and his administration are pressing for retraining and job connections. They are trying to match employers with would-be employees as well as establishing skills training for workers who lost out to automation. In addition, the administration should be complimented on its continuing efforts to match school students with the needed skills in the workplace. Delaware is pushing companies to start using apprenticeships to pull young people into the market.

 

More, of course, is needed – not only from government, but from business as well. Businesses should be investing more in products and training. However, industry leaders do have a point when it comes to on-again, off-again signals from government.

 

Delaware's U.S. Rep. John Carney heard some of that himself this week during his "Make It in Delaware" tour of the state. State manufacturers told Mr. Carney the federal government must update its corporation tax system. It is the highest rate in the world. Not only do smaller corporations suffer, but also larger ones are trying to do something about it – incorporating elsewhere. That would have been one of the big advantages for Pfizer if it could have taken over AstraZeneca: A much lower tax rate if it were incorporated in England like AstraZeneca. The U.S. corporation tax is keeping corporate profits overseas where they cannot be taxed at the high rate. However, that means that money is not being invested in facilities, products and employees here.

 

Rep. Carney also is pushing to make the research and development tax credit permanent. Congress keeps extending the tax credit after it expires. Making it permanent would allow businesses to do longer-range planning.

 

Friday's jobs report, therefore, was a mixture of immediate good news and, we hope, a promise of more good news in the future. That is, if we work toward it.