Missouri ranks high in job creation

Simmons also reported that Missouri’s job growth was the highest in the nation between May and June, with 27,600 new jobs being created during that time.

“It is obvious that Missouri is enjoying strong economic momentum,” said Simmons in a news release. “We are creating and retaining jobs. We have a vibrant business climate. Economic growth is occurring all across our great state. I am excited about where our economy is headed.”

Simmons released another in a series of economic conditions reports from the Department of Economic Development, compiled by the department’s research center and provided periodically to assess the overall progress of the state’s economy. Wednesday’s report offered a mid-year look at how Missouri’s economy has fared over the past six months.

Joining Simmons at the press conference were Carol Fischer, director of the Department of Revenue, and Marty Romitti, director of the Missouri Economic Research and Information Center.

Since last July, Missouri’s job growth rate ranks the state second in the nation with the addition of nearly 83,000 jobs. The state’s growth rate of 3.12 percent during this period was nearly three times the nation’s growth rate of 1.15 percent.

Between January 2001 and June 2004, the state added 5,600 jobs. Missouri is one of only 20 states to show job growth during that period.

“None of the eight states that border Missouri have net job growth since January of 2001,” Simmons said.

“This shows that Missouri is not only coming out of the national recession at a faster rate than most states, but at a faster rate than all other states in the Midwest. We find that news quite exciting because it shows we are bucking the national trend and adding, not losing, jobs. This is a strong trend that we expect to continue,” he said.

Missouri’s unemployment rate has generally been below the U.S. rate, usually by a half point or more. Missouri’s June rate is 5.2 percent, seasonally adjusted, which remains below the nation’s rate of 5.6 percent. The state’s June unemployment rate is six-tenths of a point lower than it was in June 2003.

Another important economic indicator is taxable sales. Fischer reported positive trends in this category as well.

“Preliminary taxable sales estimates for the first quarter 2004 were $15.8 billion in Missouri, an increase of 5.5 percent in actual dollars from the same quarter of 2003,” Fischer said. “The increase in jobs has led to an increase in disposable income and consumer confidence and is bolstering taxable sales.”

Simmons gave credit for improving conditions to a focus on Missouri’s target industries – life sciences, advanced manufacturing and information technology, and to the state’s “Blueprint for Prosperity and Jobs.”

The blueprint was created in response to a directive from Gov. Bob Holden shortly after he took office in 2001 to seek statewide input and prepare a strategic plan for transitioning the Missouri’s economy to the knowledge-based, global economy of the future.

“This plan focuses on building partnerships, investing in education and re-training, innovation and research, targeting high wage industries, and helping our communities build the intellectual and physical infrastructure to attract and retain businesses,” said Simmons. “It outlines the changes we had to make in order to be competitive in a changing global economy.

“We still have a way to go, but the recent job growth trends we are seeing, particularly in comparison with other states in the Midwest, shows that our plan is moving us toward results.”

Other factors cited by the DED director include a stabilized manufacturing sector and a record number of businesses, which is setting a foundation for future job growth. Missouri’s manufacturing sector, which makes up nearly 12 percent of the state’s employment, has shown stability for more than a year, Simmons said. Between June of 2003 and June of 2004 the state ranked fourth in the nation in overall manufacturing job growth, and its percentage growth is more than twice the national rate.

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