94 years of economic insights for Indiana

The IBR is a publication of the Indiana Business Research Center at IU's Kelley School of Business

Richmond

Deputy Director, Indiana Business Research Center, Kelley School of Business, Indiana University

Slow growth is the most likely forecast for the coming year in Wayne County—but note the word growth is used here. This area has been hit hard by job declines in manufacturing in recent years and its population has also declined.

Looking at recent trends in quarterly employment, there are encouraging increases occurring in more sectors than not. The health care and social services sector is contributing more jobs and higher wages to the community, likely due to the significant changes with Reid Hospital and the likely growth of business services contributing to that regional health care facility. Construction has also benefited, with a 16.7 percent increase in the number of jobs between 2006 and 2007 and 13.3 percent increase in wages for that sector.

Manufacturing continues to shed jobs in the area, but at a slower rate. For those working in manufacturing, wages continue to increase and this industry continues to pay the highest weekly wage in the area (see Table 1).

Table 1
Covered Employment and Wages for Wayne County, 2007:1

Industry
Jobs
Percent Change Since 2006:1
Average Weekly Wage
Percent Change Since 2006:1
Totals 32,715 -1.1 $628 5.0
Growth in Jobs and Wages
Health Care and Social Services 5,023 1.0 $713 16.1
Retail Trade 3,975 0.3 $398 1.8
Accommodation and Food Services 2,813 1.8 $209 -0.9
Wholesale Trade 921 2.7 $771 -3.0
Construction 852 16.7 $709 13.3
Professional, Scientific, and Technical Services 407 0.7 $557 0.7
Decline in Jobs But Increase in Wages
Manufacturing 7,112 -1.7 $786 3.4
Transportation and Warehousing 1,041 -8.2 $724 7.1
Finance and Insurance 937 -0.2 $732 0.3
Information 508 -1.2 $572 4.2
Decline in Both Jobs and Wages
Educational Services 3,307 -0.5 $550 -1.4
Arts, Entertainment, and Recreation 141 -0.7 $241 -5.5

Source: IBRC, based on ES-202 data

Overall economic productivity is forecasted to climb out of the negative and into positive territory by 2009 (see Figure 1). But as the economy of Richmond and Wayne County continues to strengthen in the services sectors, such as health and business, it is likely that employment opportunities will also increase in other lower performing sectors.

Figure 1
Change in Gross Domestic Product for Indiana and Wayne County, Estimates and Forecast

Figure 1