Thirty states measure 4.0 or higher on an “Economic Richter Scale,” according to a new report released today that examines objective criteria of how working families in all 50 states are faring. The rating indicates that most states are still experiencing major economic problems. North Carolina ranked at the top of the scale with the worst rating, 9.3, while Montana ranked lowest at –0.7. The rankings were based on changes in each state’s unemployment rate, job growth, health insurance coverage, household income, poverty rate and personal bankruptcy filings over the last three years. The data, all based on official government statistics, were compiled by the AFL-CIO, which represents 13 million U.S. working men and women.

Two years after the recession ended, all states except the District of Columbia reported higher unemployment rates than at the end of 2000 – with the total number of unemployed workers up by at least 20 percent in more than 40 states -- and all states except Alaska and Wyoming lost manufacturing jobs. Poverty increased in 22 states, the ranks of the uninsured rose in 34 states, median household income declined in 38 states and personal bankruptcy filings jumped in all states except Hawaii.

“The numbers in the Economic Richter Scale report confirm that current national economic policies are not working for working families,” said John Sweeney, president of the AFL-CIO. “Good jobs are being eliminated and the quality of life has deteriorated for families as the ranks of the unemployed and uninsured increase.”

The nation’s economic Richter scale rating of 5.1 was worse than 36 states. The measurements in the new report include the increase in the national unemployment rate from 4.1 percent to 6.1 percent between January 2001 and September 2003. Since President Bush took office in January 2001, the nation has lost a net of nearly 3 million private sector jobs since President Bush took office in January 2001 and 2.7 million manufacturing jobs.

According to the reports, 50 percent or more of the unemployed who collected temporary extended unemployment compensation exhausted their benefits in all states except North Dakota between March 2002 and September 2003.

The number of the long-term unemployed has tripled between January 2001 and September 2003. “The policies of the Bush administration have failed working families,” said Sweeney, noting that “Bush promised that his tax cuts, which were skewed to the wealthiest Americans, would create 306,000 new jobs nationally each month starting this past June. But as of today, Bush is nearly 1 million jobs short of his promise,” he said.

Nationally, the ranks of those without health insurance rose from 14 to 15.2 percent between 2000 and 2002, the poverty rate climbed to 12.1 percent – three million more Americans are living in poverty -- and personal bankruptcy filings increased by 28 percent, with a record 1.5 million personal bankruptcy filings in 2002.

“This is the worst economic recovery since the Great Depression,” said Sweeney. “Instead of investing in our communities, the Bush administration has favored the very rich and implemented policies that caused the loss of good paying, middle-class jobs for our residents.”

The AFL-CIO and its allies are launching a national mobilization to draw attention to the need for good jobs and steps that must be taken to build a strong economy. The labor federation, which has 64 affiliated unions, holds that in order to create jobs and improve conditions for working families, the administration and Congress must invest in our nation’s infrastructure, provide financial assistance to the states, extend the federal emergency unemployment insurance compensation program, address the nation’s health care crisis, reverse flawed trade policies and raise the minimum wage.

View the chart on Economic Richter Scores for each state. For detailed data on each state, contact Suzanne Ffolkes at 202/637-5018.