The Springfield metropolitan statistical area leads all other MSAs statewide in 12-month job growth and is outpacing the nation.
Between June 2013 and June 2014, the Springfield MSA gained more than 4,000 jobs for a 12-month growth rate of 1.9 percent, according to a July Springfield Business Development Corp. report utilizing U.S. Bureau of Labor Statistics data.
Of the seven other MSAs in the state, St. Louis was the only other area to grow by more than 1 percent (1.1 percent) and four metropolitan areas lost jobs. Nationwide, employment grew by 0.8 percent during the 12-month period.
According to the BLS, while the Show-Me State added more than 44,000 jobs during the past year for an overall growth rate of 1.6 percent, several states outperformed Missouri. California added more than 356,000 jobs, a jump of 2.4 percent; Florida generated more than 237,000 new jobs during that time, an increase of 3.1 percent; and Texas added 371,000 jobs, growing employment by 3.3 percent. In all, 33 states increased jobs year-over-year, with North Dakota realizing the biggest gains per capita by raising nonfarm payroll by 4.6 percent. Alaska garnered the biggest decrease in its jobs percentage, losing 0.7 percent.
Ryan Mooney, senior vice president of economic development for the Springfield Area Chamber of Commerce and leader of the SBDC, said a diverse local economy is most likely the driving force behind area employment gains.
“While, from time to time, certain areas may benefit from a surge in a certain industry, Springfield has had a steady, consistent growth for quite a long time,” Mooney said. “The areas of growth are in manufacturing, business and professional services, health care and leisure. Those are some of the growth areas, but it’s not like those are making up for other areas that are declining. All areas are pretty consistent.”
Mooney said as the national economy improves, he expects new jobs to be added in the Springfield market.
“Manufacturers are continuing to make reinvestments, and that has to lead to job growth eventually. Those may be more technical jobs, but with business and professional services, we have a great talent pipeline in the universities and colleges in Springfield,” he said, adding local enrollments have been on the rise in recent years, bolstering the potential workforce. “We are only going to have more graduates available for companies in this area.”
Although a lack of Medicaid expansion dollars flowing into the state makes for an uncertain future in the health care industry, Mooney said Springfield is well positioned to serve the aging population with large employers such as Mercy and CoxHealth.
According to the SBDC and Springfield Business Journal archives, notable area companies with hiring plans in the past year include: Chase Card Services (NYSE: JPM), 200 new positions; CNH Reman LLC, around 45 employees; North American Tank LLC, 30 jobs; Stainless Technology, 88 jobs; Tank Components Industries, 27; T-Mobile, 90; and Watson Metal Masters, 77 jobs. In addition, Paul Mueller Co. (OTC: MUEL) and Expedia Inc. (Nasdaq: EXPE) are still hiring as part of their long-term plans to add 289 and 500 jobs, respectively.
“T-Mobile, Chase, Expedia, those big operations are always hiring. They are going to have turnover, so they are always in a hiring mode, which is good. But, what we are always looking for is are they adding new jobs, above and beyond that,” Mooney said. “A number of those have been in that growth mode.”
As the local jobs scene ramps up, the Missouri Career Center reports fewer people seeking work.
Springfield Director of Workforce Development Mary Ann Rojas said she’s seen a roughly 50 percent drop in the foot traffic at Springfield’s center during the past year. The drop largely is due to changes in unemployment reporting, according to Rojas, but an improving economy is part of the picture. “Last year, some things changed in the system,” Rojas said. “But, I think many of those who were coming in to do their reporting are now working.”
She said about 3,500 to 4,000 job seekers visit the center on average each month, but that’s down from a high-water mark of 11,000 per month in 2010.
“The labor market is tightening up a bit right now. That just means people are going to work and there are fewer people employers have to draw from,” Rojas said, adding the career center has more than 1,200 jobs posted through companies such as Mercy, AT&T (NYSE: T), Teletech, Reckitt Benckiser and Bass Pro Shops. “What concerns me is we still have a group of individuals, for whatever reason, at whatever age, who are still having barriers to going to work.”
She said barriers to work include a lack of education, a lack of child care or simply a lack of soft skills, such as communication, teamwork and attitude.
“Most employers that I talk to, if I ask them what is their biggest challenge in hiring people, they say they just need people to show up every day,” Rojas said.
On Aug. 11, transportation company J. Howard Fisk Limousines Inc. is hosting a hiring event at the career center with plans to hire up to 20 part-time drivers.
Owner Howard Fisk said he currently employs a staff of around 65 part-time drivers. He hopes the event would bring the company back to a pre-recession level of around 75.
“Back in 2006, we saw a little contraction in the market when bigger companies like the Paul Muellers and the Bass Pros started to contract a little. When people weren’t coming to see them, they didn’t need us,” Fisk said. “Now, markets are expanding and local engines are heating up again. We’re back in business, so we need more drivers.”
To put the 1.9 percent local job growth in historical perspective, Mooney said the Springfield MSA routinely grew by 2.5 to 3 percent annually before the recession.
“We are moving at a pretty healthy clip,” he said. “At the same time, we don’t want to be adding 10,000 to 20,000 jobs a year. That gets to be super-heated growth that sometimes cannot be sustained. That steady growth is one of our strong suits.”
