Greene County employment fastest growing in Missouri

The most up-to-date figures from the U.S. Bureau of Labor Statistics show that from September 2006 to September 2007, employment in Greene County grew by 3 percent to 158,800. That growth rate is tied with Clay County, north of Kansas City, for the fastest growth among the state’s seven largest counties, and it is more than double the next fastest-growing county. Jackson County in Kansas City posted 1.3 percent growth.

Nationwide, Greene County was 23rd out of the largest 328 counties.

Earnings figures, however, tell a different story. Greene County’s employees’ $637 average weekly wage as of September puts it 309th nationally and well below the state average of $719 and the national average of $818. St. Louis County posted an average wage of $873, while Jackson County’s average is $826.

“It’s no surprise,” said Greg Williams, senior vice president of economic development for the Springfield Area Chamber of Commerce. “We’ve known for quite some time that this part of the state has been the fastest-growing job creator in the state and the Midwest. It’s also no surprise that wages in this region remain less than the larger metro areas like St. Louis and Kansas City.”

Greene County’s wage growth rate was 3.6 percent versus the state’s 4.2 percent growth – both outpacing the 2.9 percent inflation rate during the same period. However, workers also are hampered by increasing costs of goods; the latest Consumer Price Index by BLS, released May 14, showed Midwest prices were up 4 percent from April 2007 to April 2008.

Service sector

Missouri State University economics professor Thomas Wyrick said the area’s economy, which is mostly service-oriented, is the reason why the local job numbers have continued to grow when St. Louis and Kansas City, as well as the state and national averages, are holding steady at best.

Service industries, he said, tend to hold their own during economic downturns, while manufacturers – especially those making durable goods such as cars and TVs – take the brunt.

“People aren’t optimistic about the future during a recession, so instead of buying a new car, they get the old one fixed. That kills Kansas City and St. Louis, but it doesn’t kill us in Springfield because we don’t have a lot of durable goods,” Wyrick said. “Service jobs don’t diminish during hard times. If you have a heart attack, you go to the hospital even if there’s a recession.”

Wyrick said the Springfield area’s relatively low wages also can be attributed to the same dependence on the service sector.

“Education and health care are by far the biggest sectors, and then there’s retail and wholesale trade,” Wyrick said. “So there are a lot of jobs working in a store at the mall or serving food, but those aren’t high-wage jobs. Working at Chrysler or manufacturing computers – that’s where the high wages are (at).”

Despite the area’s job growth, the chamber’s Williams is looking for additional improvement.

“This area has traditionally been known as a low-cost, low-wage area,” he said, pointing to the metropolitan statistical area’s per capita income, which rose 14.6 percent from 2001 to 2006, basically matching the 13.8 percent rate of inflation during the same period. “We’ve made some real strides … but we do have some work to do.”

Job projections

Officials are banking on payoffs through efforts such as the Jordan Valley Innovation Center and the Partnership Industrial Centers.

JVIC anticipates employing 80 to 100 people once build-out is complete in early 2009, and the east industrial center employs more than 2,000. JVIC employees make an average of at least $60,000 annually, or $1,154 monthly, according to Allen Kunkel, chief operating officer of Sprigfield Innovation Inc., which is part of JVIC.

St. John’s Hospital’s new patient tower, opened in April, also will add to the job numbers; hospital officials have said they will likely hire several hundred new employees during the next year to fill the space.

Ozarks Technical Community College is attempting to train the area’s work force to handle higher-paying, high-skill jobs.

“When businesses are putting out feelers for which communities to move into, if we can show them that we have a highly skilled work force, we’re going to attract that business,” said Shirley Lawler, OTC’s associate vice president of academic affairs.

She pointed to the school’s efforts in developing customized training for the construction, welding and manufacturing industries as examples of how OTC is fostering and creating a highly skilled work force. BLS data shows that employees working in those sectors locally can make as much as $880 a week on average.

Wyrick was not so optimistic about the area’s ability to add major manufacturers. He said that large industrial facilities require sheer manpower unavailable in a city the size of Springfield.

But, he added, not being dependent on manufacturing may not be a bad thing.

“When the economy turns around, people will start buying cars and you’ll hear about the boom in the big cities, and people will say, ‘Why aren’t we booming?’” Wyrick said. “It’s a big roller coaster in those cities. Ours is more steady, moderate growth.”