By Dr. Patrick
Rishe, RCGA chief economist & director of research
Regional Unemployment rates have Fallen during the Last Year;
Net JobGrowth surpasses 100,000 Goal
Though the local unemployment rate has risen slightly over the
last few months to 3.4 percent as of July 2000, the St. Louis
economy still enjoys unemployment rates considerably lower than
a year ago at the same time (i.e. 4.2 percent unemployment as
of July 1999). Furthermore, the local unemployment rate for
July 2000 is significantly lower than the national unemployment
rate for July 2000 of 4.0 percent.
The RCGA is able to tentatively announce the achievement of
the Campaign for Greater St. Louis’ five-year goal of creating
100,000 net new jobs. Though the July employment numbers are
preliminary, July 2000 total employment is estimated at 1,343,861
workers, which pushes us above the campaign goal by almost 10,000
jobs.
Over the last six months, total employment as measured by the
Bureau of Labor Statistics increased by 51,300 workers, with
43,000 of those jobs arising in either construction and mining
(10,100), wholesale and retail trade (13,100), and services
(20,000). The remaining job growth was realized primarily in
agriculture and in finance, insurance, and real estate.
Construction employment typically expands during this six-month
stretch as the local climate becomes more conducive to construction
activity. Service and trade employment typically expand during
this period as various forms of seasonal employment within these
sectors increase, and as full-time college students take summer
jobs.
St. Louis Ranks 4th in the Number of Fortune 500 Headquarters
According to the April 19, 2000 issue of Fortune magazine, St.
Louis ties for 4th with respect to the number of Fortune 500
companies headquartered in the region. 15 cities have at least
six Fortune 500 headquarters. St. Louis and Atlanta both host
11 such companies.
St. Louis Experienced Slight Increase in Cost of Living;
Still Ranks 4th Lowest in Cost of Living among the 20 Largest
Cities
Comparing the first half of 1999 to the first half of 2000,
the St. Louis
Metropolitan Statistical Area (MSA) realized a 3.58% rise in
the cost of living. This is measured by observing changes in
the consumer price index, which is a measure of the cost of
a market basket of goods and services purchased by the typical
urban household. The index for the first half of 2000 is 162.
This means that a basket of goods and services that cost $100
in 1982 (the base year used in these calculations) will cost
$162 today.
According to ACCRA (American Chamber of Commerce Researchers
Association) data from the 2nd quarter of 2000, St. Louis ranked
as the 4th Most Inexpensive Place to Live out of 20 cities.
Only Memphis, Baltimore, and Houston realize lower costs of
living than St. Louis.
