Civic Health and Unemployment: Can Engagement Strengthen the Economy?

September 16, 2011
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States and localities have weathered the recent recession and its aftermath quite differently. For example, between 2006 and 2010, the unemployment rate rose by ten points in Nevada yet by only one point in North Dakota. The increase was nine percentage points in Riverside, CA and its neighboring communities, but just two percentage points in San Antonio, TX.

In seeking to explain such differences, analysts largely have examined economic and policy factors. A Goldman Sachs study found that states suffered less from unemployment if their housing prices had been less inflated prior to 2006, if oil and gas industries played relatively large roles in their economies, and if high proportions of their workers were employed in occupations defined by the Bureau of Labor Statistics as “professional and related” (which include engineers, physicians, lawyers, teachers, and others). The Goldman Sachs analysts tested but were able to dismiss the other economic and policy explanations. (1)

What about the role of civic engagement or civic health in the economic resilience of a state or city? Using the Census Current Population Supplement (CPS), strong positive correlations were found between civic engagement and resilience against unemployment. States and localities with more civic engagement in 2006 saw less growth in unemployment between 2006 and 2010. This was true even after adjusting for the economic factors that others have found to predict unemployment rates over this period. The forms of civic engagement tested included volunteering, attending public meetings, helping neighbors, voting, and registering to vote.

Note: Although these findings are important, these correlations do not prove that civic engagement lowers unemployment at the state level. There are alternative explanations for the statistical relationships found here. The evidence in favor of the idea that civic engagement actually boosts economic resilience is circumstantial, suggestive, and far from conclusive. The findings and related evidence are presented in order to promote further research and public discussion of the potential economic impact of civic engagement.
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