NewsFebruary 7, 1993
CAPE GIRARDEAU -- Each year, 50 to 60 new businesses open in Cape Girardeau County, ranging from retail and wholesale operations to manufacturing and industry. "New businesses and expansion of existing ones continued at a steady pace throughout the region in 1992," said Ron Steele, regional economic development planner for the Southeast Missouri Regional Planning and Economic Development Commission...

CAPE GIRARDEAU -- Each year, 50 to 60 new businesses open in Cape Girardeau County, ranging from retail and wholesale operations to manufacturing and industry.

"New businesses and expansion of existing ones continued at a steady pace throughout the region in 1992," said Ron Steele, regional economic development planner for the Southeast Missouri Regional Planning and Economic Development Commission.

"The business scene throughout the area, especially in Cape and St. Francois counties, is a busy one, and that's a good economic indicator.

"Growth is continuing," added Steele, who keeps tabs on business openings and closings in the commission's seven counties of Cape Girardeau, Bollinger, Iron, Madison, Perry, St. Francois and Ste. Genevieve.

"Despite what was described as a persistently recessive national economy, more than 180 business starts were reported in the seven-county area is 1992."

That total was below the 232 new business starts reported in 1991, but "it does not reflect a stagnant economy," said Steele.

Cape Girardeau County collected the lion's share of new businesses during the year, with 70. That figure almost matches the average for the annual new business totals for the county.

Cape Girardeau County reported more than 100 new businesses each of the past two years, but has averaged about 71 new businesses over the past five or six years.

"From the standpoint of new jobs, 1992 was a better year in the region than 1991," said Steele. "New business starts and expansions resulted in the creation of 1,864 jobs in 1992, contrasted with 1,622 jobs created in 1991."

Business failures in the seven-county areas resulted in the loss of 310 jobs in 1992, compared to 517 jobs lost in 1991. Overall, Steele said the region experienced a total increase of 1,554 estimated jobs compared with 1,105 jobs gained in 1991.

Meanwhile, more than 34,800 people had jobs in Cape Girardeau County during December.

"With the work force at 35,720, that means 96.3 percent of the people were working," said Jackie Cecil, director of the Missouri Job Service office at Cape Girardeau. "That means an unemployment total of 3.7 percent, which is up a tenth of a percent from November, but is still a good figure."

Cape Girardeau County was under the four percent mark in unemployment during four months March and April, November and December of 1992, and finished the year with a 12-month average of 4.3 percent.

"The annual average reveals a work force average of 36,280 workers, with an average 34,714 working," said Cecil. "The average jobless total was 1,566."

During the final month of December, the Cape Girardeau County work force was 35,720, with 34,389 of them working, leaving 1,331 without jobs.

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Missouri's unemployment rate for December was 5.3 percent, the lowest year-ending unemployment rate in the state since 1979.

"Records compiled by the Division of Employment Security show that Missouri experienced an economic rally the last six months of 1992," said Donna M. White, director of the Missouri Department of Labor and Industrial Relations. "This rally resulted in some economic statistics rivaling statistics recorded during the strong economic period of the late 1970s."

Estimated total unemployment during December, White noted, was 140,033. The last time December's unemployment estimate was lower was in 1979.

The strong finish in 1992 produced an average annual unemployment rate of six percent for Missouri, down from the 6.6 percent annual average of 1991. The year's unemployment average was 161,163, down from the 1991 average of 177,000. Total employment for the year averaged 2,540,977, almost 30,000 more than the 1991 average.

However, the December unemployment rate was up from the 4.8 percent figure of November, when more than 2,559,900 Missourians were employed.

Employment rates inched upward slightly in Southern Illinois in December.

"New claims increased in four primary sectors construction, manufacturing, trade and services," said Sherry Kertez of the Illinois Department of Employment Security, at the Centralia office. "The small size of each county in the region routinely produce large percentage changes from month to month."

Alexander County is a good example. The 14.6 percent unemployment rate is under the December figure of a year ago (17.9) but was up more than three percent from the November total. Alexander and Pulaski were fourth and fifth on the list of high unemployment. Pulaski totals were at 13.7, up from the 12.0 total of November.

Union County figures continue to inch up, at 11.9, from the 9.6 total of November. The Union County rates could go higher when January and February totals are tabulated.

Lewis Bakeries' Bunny Bread Bakery closed at Anna on Jan. 30, resulting in the loss of nearly 125 jobs. The closing of the bakery, which had been a part of Anna since 1925, was announced in December. Layoffs at Florsheim Shoe Co., also at Anna, also started in mid-January. More than 300 jobs will be lost during the phasing out of the shoe operation.

The Marion/Carbondale areas will also lose a number of jobs within the next year. GTE Corp. will shut offices in Marion and Carbondale within two years, laying off nearly 270 people, officials say.

The Marion office, which provides telephone operator services and directory assistance for parts of Illinois, Iowa, Missouri and Indiana, will lay off 159 workers, and GTE's Carbondale office, an administrative services center for 10 states, will close in May 1994, throwing 109 people out of work said company spokesman Jim Manis. The closing date for Marion has not been set, but it will be phased out in 24 months.

Poor market conditions for high-sulfur coal is also having its toll in Illinois. Old Ben Coal Co. laid off 92 employees, including 45 in Southern Illinois. The Benton-based company's Sparta mine let 19 workers go and another 26 were laid off in Coulterville last weekend.

There is some good news out of Southern Illinois. About 290 workers will be added to the Wal-Mart payroll at Carbondale when work is completed on the new Wal-Mart Supercenter at 1450 E. Main.

Grand opening of the 201,626 square foot Supercenter is scheduled this spring. Additional jobs will include Wal-Mart associates, department managers, cashiers, sales clerks and office clerks.

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