Agenda Packets - 1983/10/24 - Laserfiche WebLink

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EMPLOYMENT GROWTH Between 1960 and 1980, annual employment growth in the Region averaged 3.4 percent, faster than the national average (2.8 percent). In a ranking of the , 25 largest metropolitan areas, this Region had the 12th highest annual employment growth rate. UNEMPLOYMENT RATE Employment growth cannot be measured alone but must be compared with growth in the labor force. The unemployment rate measures the difference between employ- ment and the labor force. From 1970 to 1981 generally, the unemployment rates in the Region have been one and one -and -a -half to three percentage points below the national average. In order to maintain this better -than -average rate, it will be important to encourage economic development that provides jobs that at least keep pace with the labor force growth. NEW JOBS AND SMALL BUSINESS Not all sectors of the economy are equal generators of jobs. .Several national studies have identified the small business sector as the most dynamic sector and the largest creator of new jobs. Estimates on job creation by small business range from 51 to 66 percent of all new jobs. However, only a fraction of small firms --probably a range of 12 to 15 percent --create these new jobs. New businesses have low survival rates. Thus, public policy encouraging small businesses must recognize the risks involved. FAMILY INCOME Median family income rose faster in the Region than in the nation between 1960 and 1980. Median family income (adjusted for inflation using 1972 constant dollars) increased 45 percent, from $9,513 in 1960 to $13,835 in 1980. This is compared with a national average annual increase of approximately 35 percent for the same time period. However, the Region-s cost of living is slightly higher than the average for major metropolitan areas. The Region-s average annual inflation rate between 1960 and 1980 was 5.28 percent compared with a 5.19 percent average for the largest metropolitan areas. The average annual inflation rates are based on consumer price index data. TAX BASE The Region has experienced remarkable growth in its tax base, although compar- isons with national data or other SMSAs is not possible. The Region s market value of the taxable property has grown from $25,349 per household in 1972 to $58,122 in 1980. That is an average annual increase of 10.93 percent. ECONOMIC CHANGE One of the major strengths of the Region's economy is its diversity. Manufac- turing, wholesale and retail trade, and service industries each account for approximately one-fourth of the Region-s industrial mix. This diversity continues to be maintained even though the regional economy is undergoing some fundamental changes in its industrial mix, types of growing industries and occupations.