New study looks at Mississippi’s labor force participation

• Empower Mississippi’s latest study points to education, demographics playing a role in who chooses to seek employment in the Magnolia State.

Studies are underway to determine why the workforce participation rate in the Magnolia State is last in the nation. 

The most recent study came this week, released by Empower Mississippi in collaboration with the National Strategic Planning and Analysis Research Center at Mississippi State University. The report is preliminarily focused on the demographics of those least likely to seek gainful employment.

“Over the past five years, Mississippi has experienced significant economic growth, with historically low unemployment rates, record levels of capital investment, and wide job availability; yet, our state continues to struggle with a lagging labor force participation rate,” said Grant Callen, CEO of Empower Mississippi, about the report.

By the Numbers

According to data from the U.S. Bureau of Labor Statistics (BLS) included in the Empower report, Mississippi has the lowest work participation rate in the nation, a spot the state has held for a number of years. As noted, Mississippi has never had a labor force participation rate higher than 43rd in the nation since BLS first started keeping track of the statistic in 1976.

“At a rate of 53.9%, Mississippi sits at the bottom of U.S. rankings,” Callen said. “Empower commissioned this analysis of our state’s labor force to establish a baseline of findings and identify opportunities for improvement with a single goal in mind: help more Mississippians experience the life-changing benefits of work.”

Since 1976, the highest employment participation rate in Mississippi came in 2010, at 60.1 percent. From 2015 to 2019, the rate ranged from 55.6 percent to 56.1 percent, but saw a significant decline in 2020, near the same time as the COVID-19 pandemic began impacting the nation, the report shows. 

As announced on Friday, the most recent unemployment numbers for July 2024 shows Mississippi’s unemployment rate hit a new record low at 2.7 percent, lower than the national average of 4.3 percent. That rate indicates that most of the Mississippians who want to work are employed. However, as the labor force participation rate indicates, many more Mississippians who could work are not actively seeking employment.

How Education Plays a Part

Empower’s report states that one of the most critical indicators of labor force participation is “educational attainment.”

According to their findings, Mississippians who hold a post-secondary degree have higher levels of participation within the workforce. Those who hold an associate’s degree had slightly higher participation rates – 68.3 percent – than those who hold bachelor’s degrees – 66.7 percent. Residents who were least likely to participate in the workforce are those without a high school diploma, the study found. 

Lt. Governor Delbert Hosemann (R) has publicly stated that he aims to address the low workforce participation rate. One way to accomplish this, Hosemann believes, is by passing legislation that would provide free community college tuition to Mississippians. A bill to that effect was introduced last session but it did not make it far through the legislative process. Hosemann’s bill required all community college students to apply for state and federal student aid, leaving the state to cover the “last dollar.” 

During his speech at this year’s Neshoba County Fair, Hosemann promised to work on similar legislation in the coming 2025 session. 

“We are reaching a precipice in Mississippi, with almost half of our working age population not counted as employed,” said Lt. Governor Hosemann’s office in a statement to Magnolia Tribune in response to Empower’s report. “We look forward to continuing to address this significant challenge through the study group in the Senate led by Senator Daniel Sparks.”

Demographics

In terms of demographics, the Empower report indicates that Mississippians aged 25-44 have a labor participation rate of 78.9 percent, while residents aged 45-64 have a 61.7 percent participation rate.

Gender also plays a role, with 59.8 percent of males holding jobs, compared to 48.5 percent of females. 

The study shows Hispanic residents – 61.8 percent – have the highest rate of workforce participation, compared to 54 percent of non-Hispanic black residents and 53 percent of white residents. 

The Work Continues

Empower’s base line data is one part of a continuing effort to determine the reasons why Mississippians are less likely to find work and determine solutions to those issues.

The data is expected to assist lawmakers and other Magnolia State leaders in boosting the state’s economy, and subsequently the lives of Mississippians by finding ways to increase the labor participation rate.

Future reports from Empower are expected as those studies on the subject are completed in the near future. 

To see the full results of this report, click here.