Holding steady: Unemployment rates down, business formation up in Southeast Missouri

A steadying job market looks to have returned to Southeast Missouri as area unemployment rates recently reached the lowest mark in years, and some labor market summaries are unchanging -- but whether it will stay is uncertain.

Unemployment during October, November and December in the Cape Girardeau metropolitan statistical area was below 5 percent, the first time since fall 2007 that rates have been so low for three consecutive months, according to data from the U.S. Bureau of Labor Statistics. In January and February, the rate crept back up over 5 percent, but reports indicate the dip is likely due to businesses that hire seasonal full-time workers.

The data do not indicate which industries are employing the most workers or seeing the most growth, but the Missouri Department of Economic Development showed areas in the state with the most job growth in February were education and health services; construction; trade, transportation and utilities; and real estate, rental and leasing.

Summaries of the Southeast Missouri labor market from the Missouri Economic Research and Information Center, which analyzes job postings over 60-day periods, show the number of full-time job openings posted appear steady over the past year, with 70 to 75 percent of postings advertising a need for permanent, full-time workers.

The March labor market analysis shows industries with the top number of job postings were hospitals, nursing homes and restaurants, followed by building materials and supplies dealers, truck transportation and department stores. Those with the highest number of job postings were truck drivers, retail salespeople and retail supervisors.

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Mike Berry, functional leader at the Missouri Career Center in Cape Girardeau, says area hiring has picked up over the past year, but a problem lies in that many of the jobs are minimum wage or entry-level, and at best pay $10 to $11 per hour.

Wages aren't rising in many fields, says Berry, in part because people are shifting jobs more often, which doesn't require companies to pay at rates needed to retain qualified workers for certain positions, and instead hire constantly to keep positions filled.

The strengthening demand for full-time workers looked late last year to be a nationwide trend, but whether demand will continue to grow is debated. A survey by the National Federation of Independent Business shows businesses' plans to increase employment are beginning to wane. Missouri's Workforce Index as measured by AIM, a not-for-profit research organization, and the Creighton University College of Business, is down five places in the March rankings compared to February. A recent summary issued by AIM shows Missouri's job market based on online openings weakened for March, and the state's online job openings fell 1.8 percent in the first quarter of 2015.

Locally, at least six large employers plan to hold hiring events using the Missouri Career Center, which offers services to companies and jobseekers for free through state funding capabilities.

"A lot of jobs are going to be coming open in the near future" through the hiring events, Berry says.

The number of jobs gained statewide was also down in February, according to the Missouri Department of Economic Development, falling to 8,400 from the 11,200 gained in January.

Other indicators of a stronger economy can be seen in recent data. Several area counties, including Cape Girardeau and Perry, kept unemployment in February lower than the state and national averages. Area counties, including Dunklin, Iron and Wayne, also showed a higher business formation rate in 2014 than the rest of the state, according to an April report from the Missouri Economic Research and Information Center.