Cape County median income rose in 2012

Although Missouri was one of two states to see a decrease in median household income in 2012, Cape Girardeau County saw an increase of about $5,000.

The U.S. census released data this month that showed Missouri's median income fell about 1.6 percent from 2011, down to $45,321. Cape Girardeau County's median income increased from $41,023 in 2011 to $46,090 in 2012, the data shows.

The national median income for U.S. households in 2012 was $51,017. Virginia was the only other state to see a median income decline.

Median household income represents more than how much money households are bringing in -- it represents a chain reaction that unemployment plays a large part in, according to Bruce Domazlicky, an economics professor at Southeast Missouri State University and former director of the Center for Economic and Business Research.

With more people working, more income is earned and more money is spent, which creates growth, he said. When jobs are lost, the economy "spirals in the other direction" and "everything kind of flows down," he said.

Domazlicky said he has his doubts about Missouri's median income. He said the numbers, which were collected from the American Community Survey, are based on sampling, and the outcome is based on where the samples are drawn. He said he uses caution when interpreting such data.

"Given how the state's been doing, those numbers are a little surprising to me," he said. "I don't really have a good explanation for it."

The best explanation Domazlicky could give for Missouri's outlier status was a sampling error.

"To me, it sounds a little suspicious," and it might be more of a statistical error than the state having an actual problem, he said.

The median income for Cape Girardeau County did not come as much of a surprise for Domazlicky. The county has shown resilience and recovered from the recession quickly, he said, and its unemployment rate is "much better that the rest of the nation."

In August, Missouri's unemployment rate was 7.2 percent and Cape Girardeau County's was 6.4 percent, increasing almost a whole point from 5.5 percent in April, according to the Missouri Department of Labor and Industrial Relations.

Cape Girardeau Area Chamber of Commerce president and CEO John Mehner said in 2012, National Asset Recovery Services, now called Integrity Solution Services; Spartech, now owned by PolyOne; QC Corp.; and AT&T all expanded their operations in Cape Girardeau. The expansions, along with the medical community that always is adding jobs, could have had an effect on the jump in the median household income for the county, he said.

The area has been hit since then by large layoffs, including the elimination of hundreds of jobs at Cape Girardeau call center Integrity Solution Services and the announcement of about 90 jobs lost by 2014 when the PolyOne plant at 4753 Nash Road shuts down.

Overall, the state and county are doing "OK" in terms of growth, but faster growth is needed to bring down the unemployment rate, Domazlicky said.

adowning@semissourian.com

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Cape Girardeau, Mo.