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By Bryan Bezold,
RCGA Director of Research and Chief Economist
Growing Employment in Slowing
Economy
In spite of the slowing national economy, St. Louis is still growing.
The St Louis region's successful Campaign for a Greater St. Louis
has added 122,523 net new jobs to the local economy from 1995
to present. Seasonally adjusted data from the Missouri Department
of Economic Development shows that, through April, the St. Louis
region has added more than 20,000 new jobs in the last 12 months.
Locally and nationally, the manufacturing sector is struggling,
but we’ve continued to add jobs in other important sectors of
the local economy. Employment in the service sector is 2.5 percent
higher than last year, and finance, insurance and real estate
employment is 2.1 percent higher than last year.
The local and national manufacturing sectors will continue to
struggle until businesses reduce excess inventories, but consumer
spending growth is keeping the economy afloat. Employment gains
in the non-manufacturing sectors of the economy are key to the
health of the national economy. Continued payroll employment growth
here in St. Louis means that local consumers still have disposable
income to spend, which will support local businesses through the
current economic slowdown.
A Home Run
for Downtown St. Louis
Above:
An artist's rendering of the new baseball stadium, which will be
a boon for economic developers.
The Memorandum of Understanding between the St. Louis Cardinals
and the City, County and State regarding the new baseball stadium
and Ballpark Village is a giant step forward for downtown St. Louis.
With an annual economic impact of $230 million each year, the Cardinals
are an important part of the downtown economy. The use of taxes
for stadium financing is always a controversial topic, and any use
of tax dollars deserves careful scrutiny. But the main points of
the deal outlined in the memorandum compare favorably with recent
stadium development deals. By agreeing to pay for 42% of the stadium
development costs, the Cardinals are paying more that most baseball
teams have. Of the 13 baseball stadia built since 1990, only 4 had
a higher percentage of private funding than the Cardinals are offering.
And the Cardinals agreement to develop the Ballpark Village is an
almost unique commitment to downtown St. Louis.
Downtown development is important for the City of St. Louis, but
also the region as a whole. The 2000 census results told us that
the region’s population grew modestly, but the population of the
city declined. At the same time, other cities, like Atlanta, San
Francisco, and Chicago saw their populations grow, and their MSAs
grew at a faster rate than the St. Louis MSA. In order to keep up
with other metro areas, St. Louis must have a vital and active downtown.
Projects like the new stadium and the Ballpark Village are critical
to the future of downtown St. Louis.
Two Cities in One
The St. Louis metropolitan statistical area (MSA) is made up of
11 counties and the City of St. Louis. Unfortunately, many think
of St. Louis being strictly Missouri. That couldn’t be further from
the truth. The 5 counties on the east side of the Mississippi make
up 23 percent of the metro population, and is a significant part
of the greater St. Louis’ economic engine.1 If the eastern half
of the metro area were its own MSA, its level of economic activity
would put it on par with cities such like Flint, Mich. or Shreveport,
La.(2) Employment in the five Illinois counties makes up roughly
18 percent of the total St. Louis employment, and Illinois plays
a prominent role in the growth of the MSA’s warehousing and distribution
cluster. The metro east is home to considerable warehouse space,
several transportation and distribution facilities, and most of
the region’s petroleum refining capacity.
BioBelt Boom
Plant and life sciences have increasingly been in the news. Since
the unlocking of the human genome last year, much attention has
been focused on the potential of gene-based medication, and genetically
modified foods may yet help ease hunger problems around the world.
St. Louis is already home to firms that are exploring the frontiers
of plant and life sciences. The RCGA is committed to leveraging
the region’s strengths in the area of plant and life sciences, and
turning those strengths into increased jobs and incomes. In 1997,
1,183 firms in the plant and life science cluster employed approximately
23,000 people, and compensated them handsomely. The average annual
wage paid by these firms was more than $69,000. These firms also
contribute to other local economic activity, requiring legal, financial,
advertising, and transportation services as they grow. These indirect
economic impacts of plant and life science firms were roughly $1.7
billion and 28,000 jobs in 1997(3).
(1) 2000 Census
(2) U.S. Conference of Mayors
(3) Minnesota IMPLAN Group, Inc. |
