Missouri's unemployment rate for June is 4.4 percent. That rate is up 0.4 of a point from the previous month but is down 0.9 of a point from a year ago.

The state's latest labor market report shows 32,800 more Missourians working in June than in May, pushing the number of Missourians with jobs to 2,768,000, up 40,000 from June 1995.

Worker pay increases averaged 4.01 percent.

Business is booming around the state. In 1995, more than 350 companies either relocated to, or expanded in Missouri, creating about 20,000 new jobs.

Missouri has received high marks in economic performances by a national, Washington-based organization.

The Corporation for Enterprise Development, a private, non-profit group, gave the state an "A" for economic performance in its 10th annual Development Report Card.

Good employment growth

The grade is based on high marks in employment growth, a low unemployment rate and growth in earnings.

The group has graded states in their economy during the past decade. Missouri grades have bounced up and down over the past five years, with a "C" in economic performance in 1992, "B" in 1993 and 1994 and a "D" in 1995.

The state also received good marks on diverse industry base and financial resources for businesses.

The CFED ranks the states in economic performance, business vitality and development capacity. Missouri didn't fare so well in the latter two categories.

Missouri received a "C" for development capacity, a measure of human resources, technology resources and infrastructures, and a "D" for business vitality, based on business competitiveness, entrepreneurial energy and business adversity.

Illinois receives an 'A'

Illinois, meanwhile, received a "C" in econmomic development performance, a "B" in business vitality and an "A" for development capacity. Kentucky received a "D" in economic development, an "A" in business vitality and "D" in business development.

Tennessee received an "A" in business vitality, and "C"s in the other two categories. Arkansas' highest grade, a "B", came in business vitality. Arkansas received a "C" in business development and an "F" in development capacity.

Missouri Gov. Mel Carnahan, who recently signed an economic development bill that creates incentive programs for expanding existing businesses and recruiting new businesses throughout, said the state had recorded three steady years of growth in employment, business activity and economic opportunities.

"We are pleased to see that the nation is awakening to what we, in Missouri, have known all along," said Carnahan concerning the ranking. "Missouri has become a world-class place to live, work and do business."

Education reform package

A Carnahan spokesman said Friday steps to address the weaker spots in the economy may not have been reflected in the report. These include a major education reform package that addresses the human resources issue and other legislation aimed at improving the overall business climate.

The new economic development bill -- House Bill 1237 -- provides tax credits for manufacturers that add 100 jobs and invest a minimum of $15 million in the state, and office projects that add 500 jobs and invest at least $10 million.

The new law also creates certified capital companies that will receive investments from insurance companies and then reinvest the funds in Missouri small businesses that qualify. Missouri becomes only the second state to implement such a method of providing investment capital to the state's small businesses.

After insurance companies receive an agreed-to return on their investments, the state will realize a 25 percent return on distributions, which will be reinvested in other small businesses through the Missouri Development Finance Board.

DED looks at the ratings

Also, the new law creates a nine-member Missouri Film Commission in the Department of Economic Development to lure moviemakers to the state. Missouri already has a small film office. Film production boosts the local economy where the film is being made and showcases the beauty of the state.

Joe Driskill, director of the Missouri Department of Economic Development, said he is also pleased with the top grade for Missouri's economic performance, but he questioned some of the report's methodology in regard to business vitality, noting that some of the data used were from 1991.

Internal research bears out CFED's findings that Missouri's economy is strong and growing with excellent future prospects, noted Driskill. "But, due to the lag in CFED's collection data, I believe the organization's current report card is just now reflecting a period of growth that started three years ago," said Driskill. "It does not reflect the results of some of the initiative that we have undertaken since that time."

Well-diversified business base

Specifically, Driskill said the report does not reflect initiatives in technology development, job training and small business financing.

The CFED report does recognize Missouri's diversity in the work force, noted Jim Gardner, DED spokesman.

A number of companies locate in the state because of its Midwest location, noted the CFED report. "Missouri does have a well-diversified business base."

Almost a fourth of the state's jobs are provided by manufacturing. The number of industrial jobs increased over the past year, to 469,000.

Tourism provides almost 10 percent of jobs -- 269,000.

Other jobs are found in business services, engineering and management services, education, medical, construction, real estate and agriculture.

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A downtown business will soon be under new ownership.

More later.

B. Ray Owen is business editor of the Southeast Missourian.