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The FLW Region is a long chain of cities stretching 70 miles from east to west along I-44. Within this area is a workforce of approximately 52,000.
Ordinarily, this would be an acceptable body from which to draw labor, especially from companies seeking a more rural environment. However, this labor force is dispersed along an expanse pushing the outer limits of what is typically considered one commute area. In rural communities, commutes beyond thirty minutes for all but the most highly paid can be deemed excessive.
The distance between Rolla (to the east) and Lebanon (to the west) requires a one-hour drive, a stretch that would take considerably longer if not for the speed at which commuters can travel on I-44. The result is that each county draws from the surrounding counties. Laclede and Pulaski share workforce as do Pulaski and Phelps Counties. The Region has an ongoing workforce study that will better characterize the available workforce in the area.
The Region’s aggregate unemployment rate is just under 5 percent. This figure is, however, somewhat misleading. It fails to capture the sizable number of potential military retirees and university students available to the labor market. Breaking down this figure further reveals an unemployment rate in Phelps County of roughly 3 percent, very tight by recruitment standards. To the west in Laclede County, the unemployment rate stands at more than 7 percent.
Regional employment growth from 2000 to 2004 has been striking, again due most notably to the expansion of the military installation. During this period, employment in the Region grew by almost 12 percent, dwarfing that of Missouri and all competitor state averages. Although impressive, this employment growth was uneven. Pulaski County grew by 24 percent, while Laclede County witnessed a marked decline during the same period. Phelps County grew in its own right through university and general business expansion, greatly enhanced by spillover employment growth tied to the military installation.
|
Employment and Unemployment
(2004) |
|
|
Total
Emplymnt |
Unemplymnt
Rate |
Emplymnt Change
(‘00-’04) |
|
Laclede County |
14,914 |
7.7% |
(6.4%) |
|
Phelps County |
22,735 |
3.2% |
16.0% |
|
Pulaski County |
14,676 |
4.5% |
24.0% |
|
FLW Region |
52,325 |
4.8% |
11.9% |
|
Arkansas |
NA |
5.6% |
3.2% |
|
Illinois |
NA |
6.1% |
(3.8%) |
|
Iowa |
NA |
4.4% |
0.7% |
|
Kansas |
NA |
4.7% |
3.0% |
|
Missouri |
NA |
5.3% |
0.1% |
|
Five State Area |
NA |
5.2% |
(1.1%) |
Source: U.S. Bureau of Labor Statistics. Data is average for 1/04 to 11/04
To date unionization of the labor force has been low and not a significant factor in the operation of regional establishments. This includes companies in industries with an historically high union presence nationally.
The FLW Region has a higher percentage of Production Occupations, as well as Transportation and Material Moving Occupations, than is commonly found elsewhere. Combined, more than 9,000 people are employed in these two areas. While Laclede County accounts for less than 30percent of the Region’s entire employment, it employs more than half the Region’s workers in these largely manufacturing occupations.
On a regional level, the sheer number of those employed in advanced, technical and degree-dependent occupations is not exceptional. For instance, the Region’s percentage of those in Architecture and Engineering fields is consistent with the state and lower than the national average. Life, Physical and Social Science occupations are slightly below the state and nation.
But these figures are deceiving. First, the vast majority - almost 75 percent - of these individuals are centered in Phelps County, thanks to UMR. They are in over-abundance and within easy reach of companies operating in that county or neighboring Pulaski County. Second, the availability of talent far exceeds that which is recorded by the typical U.S. tracking agency. These sources tend to exclude part-time or seasonal student labor (UMR’s student population is around 5,500) and may overlook many of the professionals employed at the installation or “retired” from it.
The presence of more than 20,000 highly trained military retirees in the area is a distinct business advantage and may help compensate for the incumbent workforce skills challenge. However, the fact that they are retired means their skill sets are not readily captured by standard demographic data collection.
Another labor opportunity is the abundance of potential student and spousal employment, the latter aligned with the military installation or UMR. For flexible companies (part-time or seasonal operations, flexible shift work, etc.) struggling to secure labor, these sources could be most beneficial. The problem is the inherently high turnover of university and military-oriented spouses (relocations out of the area). Other advantages of military spouses are their access to their own health and child care, and their relatively high education levels.
|
Select Occupational Employment*
(2000) |
|
|
Laclede
County |
Phelps
County |
Pulaski
County |
FLW
Region |
|
Management |
842
(5.7%) |
1,205
(6.8%) |
737
(5.7%) |
2,784 |
|
Business & Financial Operations |
290
(1.9%) |
389
(2.2%) |
323
(2.5%) |
1,002 |
|
Computer & Math Occupations |
98
(0.7%) |
182
(1.0%) |
119
(0.9%) |
399 |
|
Architecture & Engineering Occupations |
60
(0.4%) |
519
(2.9%) |
144
(1.1%) |
723 |
|
Life, Physical & Social Science Occupations |
13
(0.1%) |
251
(1.4%) |
52
(0.4%) |
316 |
|
Production Occupations |
3,288
(22.1%) |
1,195
(6.8%) |
1,107
(8.5%) |
5,590 |
|
Transportation & Material Moving Occupations |
1,364
(9.2%) |
1,319
(7.5%) |
880
(6.8%) |
3,563 |
*Percent indicates percent of respective county total civilian employment Source: U.S. Census
|
Percent of Select Occupational Employment*
(2000) |
|
|
FLW |
AR |
IL |
IA |
KS |
MO |
US |
|
Management
|
6.1% |
6.7% |
8.9% |
6.8% |
7.9% |
7.7% |
8.6% |
|
Business & Financial Operations
|
2.2% |
3.2% |
4.7% |
3.7% |
3.9% |
4.0% |
4.3% |
|
Computer & Math Occupations
|
0.9% |
1.1% |
2.7% |
1.7% |
2.0% |
2.1% |
2.4% |
|
Architecture & Engineering Occupations
|
1.6% |
1.2% |
1.9% |
1.5% |
1.9% |
1.6% |
2.1% |
|
Life, Physical & Social Science Occupations |
0.7% |
0.6% |
0.9% |
0.8% |
0.8% |
0.8% |
0.9% |
|
Production Occupations
|
12.3% |
12.9% |
9.1% |
10.8% |
8.9% |
9.4% |
8.5% |
|
Transportation & Material Moving Occupations |
7.8% |
8.1% |
6.6% |
7.3% |
6.0% |
6.9% |
6.1% |
*Percent of total civilian employment Source: U.S. Census
One of the most marketable qualities of the FLW Region is its operating cost structure, including its overall labor costs. For many companies, labor costs account for well over two-thirds of variable operating costs. This works to the great advantage of the FLW Region. An examination of the Region’s wage indices for a sampling of manufacturing industries reveals costs well below the Missouri average and the combined average of the states within the primary study area.
The same holds true for the sampling of white collar industries. But, as with many other variables, the labor cost situation is not uniform throughout the Region. Wage rates in the western half of the Region truly are quite low and a compelling fact for business attraction. They are not as competitive in the eastern portion of the Region, where higher paying employers such as the Wal-Mart Distribution Center and Briggs & Stratton in Phelps County heavily influence pay scales.
|
Approximate Wage Indices*
(2004) |
|
|
FLW
Region |
Missouri |
Five State Region** |
|
Wood Product Mfg.
(NAICS 321) |
.67 |
.82 |
1.00 |
|
Nonmetallic Mineral Products Mfg.
(NAICS 327) |
.71 |
.95 |
1.00 |
|
Fabricated Metal Products
(NAICS 332) |
.65 |
1.04 |
1.00 |
|
Credit Intermediation & Related
(NAICS 522) |
.74 |
.98 |
1.00 |
|
Administrative & Support Services
(NAICS 561) |
.56 |
1.03 |
1.00 |
* General indices: FLW Region and Missouri versus Five-State Area. Only industries with sufficient FLW sample size
** Arkansas, Illinois, Iowa, Kansas and Missouri
Source: Bureau of Labor Statistics and FLW regional data
In March 2006, results of a regional workforce study will be available that will provide an in-depth look at workforce availability and quality in each of the three counties in the Region. Please contact us for a copy.
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