I participated in my first presidential election in 1992 — well, sort of. Glen Dale Elementary School in Marshall County set up a mock election for the students to participate in, and I remember going into the voting booth and proudly voting for President George H.W. Bush. I guess it’s fair to say I was voting Republican in West Virginia long before it was in style.
Bush lost that reelection bid in a landslide to a relative unknown, Arkansas Gov. Bill Clinton. The reason for the 1992 outcome can largely be attributed to voter sentiment that was summed up by Clinton’s chief strategist, James Carville, when he said, “It’s the economy, stupid!â€
Thirty-three years later and the same still holds true — it’s the economy, stupid — and the business case for demanding action on this topic is real.
West Virginia has been slipping in the monthly jobs reports for over the past year, and the most recent monthly jobs report — July — shows West Virginia down 4,400 jobs from the same time period in 2024. These losses span across several sectors — mining and logging (-600), manufacturing (-200), leisure and hospitality (-2,700) and others. While the unemployment rate may be lower than last year and lower than the national average, that can largely be attributed to the reduction of nearly 7,600 people from the state’s private sector labor force. These workers are simply no longer being counted as either employed or unemployed.
West Virginians know this, and they can feel it. At the West Virginia Chamber of Commerce's Annual Meeting and Business Summit in August, longtime pollster Rex Repass took the stage to share some of the results about the West Virginia Poll. When asked about the economy, 29% say it’s improving vs. 35% who say it is worsening. That’s a major shift from 2023 when 44% thought the economy was improving compared to 19% who thought it was worsening. The real takeaway, however, was when 73% of respondents say state government should spend more time on economic issues, compared to just 10% who say more time should be spent on social issues.
When the Legislature convenes in January for the 2026 session, the focus needs to be squarely on what will make our state a better place to live, work and raise a family. It’s the economy. Attracting new investment to West Virginia is critical to accomplishing that goal. New investment means more jobs and more opportunity, but we must be careful not to lose focus of the issues that drive economic development -- increased workforce participation, better education, more child care, a good regulatory climate and competitive taxes. The good news is that there are plenty of opportunities to meaningfully address these topics.
A few of these items are fairly simple to tackle. West Virginia is in the 20 highest states for its Corporate Net Income Tax. That can be addressed by beginning to lower our rate to more competitive levels. Our state’s unemployment compensation fund has $440 million in it -- far more than needed -- that is collected from taxes on our employers, especially small businesses. That, too, can be addressed by reducing the wage base on which taxes are collected by employers without jeopardizing the health of the fund. Our judges, who are the bedrock of a fair and predictable legal climate that business needs to thrive, are last in the nation for pay. We can pass a pay increase.
We also have complex challenges that are going to take significant work and focus by the Legislature. West Virginia is 50th in workforce participation, and nearly eight points behind the U.S. average. Beginning to address that will take a complex approach that includes improved access and affordability of child care, revamping WorkForce West Virginia and better connecting the business community with our community and technical college system and higher education to improve the talent pipeline. This will take time, but it must be done.
West Virginia’s public education system continues to struggle, with the latest National Assessment of Educational Progress showing West Virginia ranking 46th in fourth-grade reading, 48th in eighth-grade reading, 47th in fourth-grade math and 48th in eighth-grade math. Those rankings each slip one place lower, if you include Washington, D.C. Thankfully, we are seeing some positive signs from the 3rd Grade Success Act, but our teachers continue to rank 47th in pay and are subject to several requirements and demands that take their attention from the students. Tackling this issue will be difficult, but it is critical.
We must also look how to better leverage our assets. One example is natural gas, of which West Virginia has vast quantities, but the state has failed to attract the downstream use within our borders that can revolutionize our economy.
When the Legislature convenes in January, it will have 60 days to spend on these issues. These are the issues on the mind of businesses 365 days a year. They want action on the issues that will drive more development — and its clear the voters do too. Again, it’s the economy.
Brian Dayton is vice president of policy and advocacy for the West Virginia Chamber of Commerce.
