We’ve just posted the January edition of State of the Economy. This is a monthly publication that pulls together key economic developments both locally and nationally. It also includes the most recent data available about referrals made by United Way 2-1-1.

A few highlights from our most recent issue:

• Both local and national unemployment rates remained steady in January at 10% (U.S.) and 7.4% (MN) respectively.
• Lender-mediated home sales averaged $124,000 in the Twin Cities in 2009 compared to $204,000 for traditional home sales.
• The Twin Cities’ housing inventory is down 22% from a year ago.
• Teenagers are experiencing the highest unemployment rates nationally (27%) while women and Asians are experiencing some of the lowest rates (8%).
• Weekly wages declined 1.6% in 2009 when inflation is factored in.
• TCF is ending its “Totally Free Checking” program. More than 1,000,000 accounts that were previously free will be charged a monthly maintenance fee beginning early this year.
• Target Corp. is opening fewer than 10 new stores this year, but is renovating 340 stores already in operation.
• UnitedHealth Group reported fourth quarter profits up 30% and profits for the year up 28%.
• United Way 2-1-1 made nearly 175,000 referrals for basic needs in 2009. More than one-third of these were for either emergency food or emergency shelter.

For more news on the local and national economy, read the full report (including graphics!) here. 

What is the state of your economy? What one issue has had the most impact on you, your family, or your work in the past year? What do you think the State of the Economy will be next year at this time? Let me know, and I’ll post selections of the answers I receive.

Quarterly Economic Pulse December 2009

The most recent Quarterly Economic Pulse has just been published—local data about the economy and what that means and how it affects the nonprofit sector. The Pulse is a joint venture of Greater Twin Cities United Way and Twin Cities Compass, and this is our third issue (see previous issues here—you have to scroll down a little bit for the links).

The good news: The economy is inching its way out of recession, reflected in Gross Domestic Product, employment figures, consumer confidence and the stock market. Key word: inching.

The bad news: Because this is expected to be a long, slow, jobless (or nearly jobless) recovery with employment and wages depressed through much of 2010, there will be little relief for the social service sector, which is expected to see high levels of need—especially in the areas of food, housing/shelter, and healthcare—continue through much of the year.

However, some hope is better than no hope, and things will eventually turn the corner for the nonprofit sector as well.

In the meantime, if you’re looking for some interesting reading material to start out the new year, check out The Spirit Level: Why Greater Equality Makes Societies Stronger. More on this later….

I’ve been reading Shop Class as Soulcraft: An Inquiry into the Value of Work, by Matthew B. Crawford for the last couple of weeks, and I can’t remember the last time I felt so ambivalent about a book. (Okay, I checked and it was 2005—Cool Memories by Jean Baudrillard, which alternately infuriated and impressed me.) Shop Class as Soulcraft is having a similar effect. 

For example, passages like the following infuriate me:

So now, if you go to a Toyota dealership to look at a Scion (their cheaper, youth-oriented brand), you get a brochure full of pictures of crazy custom Scions, and profiles of the custom fabricators who have built them, typically with a welding helmet perched just so on their heads, and the obligatory wife beater. 

And: 

If different human types are attracted to different kinds of work, the converse is also true: the work a man does forms him.

I found this annoying sexist writing woven throughout the book.

On the other hand, he challenges some assumptions that many of us hold dear, and with very good reasoning. The one that stopped me in my tracks was higher education in general and advanced degrees in particular. Crawford’s criticism isn’t based on envy; he has a Ph.D. in political philosophy. He was the executive director of a think tank for a while, and is currently a motorcycle mechanic and also a fellow at the Institute for Advanced Studies in Culture at the University of Virginia. 

I think what made him begin to question the value of higher education was his first job after getting his master’s degree: “My new job was to read articles in academic journals, index them under established categories, and write abstracts of about two hundred words.” For someone who loves to read and has a broad interest base, it sounds like a dream job.

But as it turns out, not so much. The job is based on the assumption that in writing an abstract, there is a method that merely needs to be applied. There is no need to actually understand the article. Doesn’t that seem a little odd? The starting quota was 15 articles a day. Indexed and abstracted. Before he had been there a year, the quota was up to 28.

Twenty-eight.

That’s a lot of abstracts. I would be pleased as punch if I could index and abstract five academic articles in one day.

Crawford found that meeting the quota “required me to actively suppress my own ability to think, because the more you think, the more the inadequacies in your understanding of an author’s argument come into focus.” Seriously, a good academic article can take hours to read and fully understand. (A bad one can take even longer.)

He questions the increasing educational credentials many employers require—often without evidence that the additional education will make them better at those jobs. He references a study of air traffic controllers—a job requiring complex decision making—which found an inverse correlation between educational achievement and job performance. Seriously. Think about that.

And that is why I am enjoying this book. It makes me think. It causes me to question some of my assumptions. 

And that is one of my definitions of an excellent book.