Tag Archives: job growth

phoenix

Arizona drops from Top 10 for job growth

We’re still slowly recovering from the staggering loss of jobs during the Great Recession, but some cities and states are rebounding faster than others. The job-growth numbers for the first three quarters of 2014 are now out. Research Professor Lee McPheters of the W. P. Carey School of Business at Arizona State University provides rankings and analysis of the winners and losers, based on the latest figures from the U.S. Bureau of Labor Statistics.

Top 10 cities and surrounding metro areas (1 million or more workers), for non-agricultural job growth — comparing January through September of this year to the same nine months last year:

Orlando, Fla. – up 3.7 percent
Houston – up 3.5 percent
Dallas – up 3.4 percent
Miami – up 3 percent
Portland, Ore. – up 2.9 percent
Riverside, Calif. – up 2.8 percent (tie)
Denver – up 2.8 percent
San Francisco – up 2.6 percent (tie)
Seattle – up 2.6 percent
10.  San Diego – up 2.4 percent

Top 10 states for non-agricultural job growth – comparing January through September of this year to the same nine months last year:

North Dakota – up 4.6 percent
Nevada – up 3.6 percent
Texas  – up 3.3 percent
Utah – up 3.1 percent
Florida – up 2.9 percent
Oregon – up 2.8 percent
Colorado – up 2.7 percent
Delaware – up 2.5 percent
California – up 2.2 percent (tie)
Washington – up 2.2 percent

Analysis:

The United States has added about 2.4 million jobs so far this year. The monthly average from January through September was 1.8-percent job growth nationwide. That pace is only slightly better than last year’s, when we saw an overall annual increase of 1.7 percent, so the recovery remains relatively slow.

On the state list, North Dakota has held the No. 1 spot every year since 2009, largely thanks to its oil and gas production. Nevada, Texas and Utah also topped 3-percent job growth this time, with Nevada’s economy receiving a big boost from building activity and impressive construction gains of more than 10 percent.

“Seven of the top 10 job-growth states so far this year are in the West,” says McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. “Oregon and Delaware are new on the list this time, replacing Idaho and Arizona.”

Arizona actually fell out of the top 10 for the first time in two years. Even though it ranked No. 3 in health-care job growth and No. 5 in financial-activities job growth, the state has now dropped to No. 14 overall. Manufacturing, government and construction contributed to the decline.
The bottom 10 states so far this year are Michigan, Pennsylvania, Connecticut, Maryland, Illinois, Vermont, Virginia, New Jersey, New Mexico and last-place Alaska.  Five of these states were also on the bottom in 2013: Pennsylvania, Vermont, Virginia, New Mexico and Alaska.

McPheters notes very high interest in state economic performance right now because 30 governors are up for reelection, including those in top-10 states Nevada, Florida, Oregon, Colorado and California, as well as bottom-10 states Michigan, Pennsylvania, Connecticut, Illinois, Vermont, New Mexico and Alaska.

On the top 10 cities list, Orlando holds the No. 1 position with 3.7-percent job growth, double the national pace.

“Eight of the top large cities for job creation are in the West,” explains McPheters, “However, Florida also did well, with two cities on the list.”

Seven of the top 10 cities are clustered in Florida, Texas and California. They include Orlando, Miami, Houston, Dallas, San Francisco, San Diego and Riverside, Calif.

The greater Phoenix labor market dropped out of the top 10, as its rate of job growth slipped from 2.7 percent in 2013 to a more modest 2.2 percent during the first three quarters of this year. Phoenix is currently No. 12 among labor markets with 1 million or more workers.

Still, seven large labor markets have job creation below 1 percent: Chicago, Cleveland, Philadelphia, Kansas City, Pittsburgh, northern Virginia and lastly, Detroit.

The full rankings and other job-growth data from McPheters can be found at the W. P. Carey School of Business “Job Growth USA” website: www.wpcarey.asu.edu/jobgrowth. Use the “year to date” function for the current 2014 numbers.

pharmaceuticals

Arizona bioscience job growth outpaces nation

Arizona’s bioscience sector added jobs at nearly four times the national rate over the past decade and experienced double-digit job growth during the economic recovery, a new report shows.

Since Arizona’s Bioscience Roadmap was launched in 2002, Arizona’s bioscience jobs have increased by 45 percent to 99,018 in 2011. Nationally, the growth rate during this time was 12 percent. While hospitals dominate Arizona’s bioscience jobs, the state’s non-hospital subsectors grew 14 percent in 2011 alone.  During the economic recovery years of 2009-11, the state’s bioscience jobs increased 11 percent while there was no gain across the state’s private sector.

The new performance analysis of Arizona’s bioscience sector, commissioned by the Flinn Foundation, also found that the number of bioscience establishments in Arizona continues to grow faster than the national average and bioscience wages in the state are outpacing those in other private-sector industries.

The 10th-annual study, released Feb. 5 by the Battelle Technology Partnership Practice, did reveal funding challenges for the state.  In 2012, Arizona fell to its lowest venture capital investment level since 2009 and suffered a drop in National Institutes of Health funding while the top-10 funded states advanced.

“Arizona’s bioscience sector continues to significantly outperform the nation in terms of job and establishment growth and has made impressive gains in building a more concentrated industry base,” said Walter Plosila, senior advisor to the Battelle Technology Partnership Practice.  “However, more attention must be paid to academic research performance and venture capital investment to continue the trend in years to come.”

Plosila added that progress has been made over the past decade on all 19 actions recommended by Battelle in 2002, including substantial progress on nine.

The Roadmap was launched in 2002 as a long-range plan to make the state’s bioscience sector globally competitive. The Roadmap was commissioned by the Phoenix-based Flinn Foundation, which committed to 10 years of major funding of Arizona biosciences and formed a network of committees involving statewide experts to implement its recommendations.

There was also a major increase in bioscience establishments, rising 31 percent since 2002 to 892 firms, which is above the national growth rate of 23 percent.

Bioscience jobs in Arizona pay an average salary of $56,328, or 28 percent higher than the $44,098 for all private-sector industries. Since 2002, bioscience salaries have increased 44 percent.

“After 10 years, Arizona has carved a niche in the highly lucrative and competitive biosciences field,” said Martin Shultz, chair of Arizona’s Bioscience Roadmap Steering Committee. “We’re one of the nation’s top emerging bioscience states, and our growth in high-wage jobs continued during both good economic times and bad.”

In terms of research dollars, NIH funding in 2012 was $174 million, or 19 percent greater, than the 2002 figure. This is a decrease from $184 million in 2011. While NIH funding, the gold standard for biomedical research funding, did increase slightly faster than the national average of 18 percent over the past decade, Arizona is no longer meeting its goal of obtaining funding at a growth rate higher than the top-10 funded states. In addition, its share of the funding pool remains nearly the same as it was in 2002.

The latest data also shows:
•    The largest non-hospital bioscience subsector continues to be research, testing and medical laboratories. This group now boasts about 8,900 workers across 466 establishments, roughly a 60 percent increase in both employees and firms since 2002. The other subsectors are drugs, pharmaceuticals and diagnostics; hospitals; medical devices and equipment; and agricultural feedstock and chemicals.
•    Venture capital investment was $22 million in 2012, which is the lowest figure since 2009. This was a drop of 68 percent from 2011, compared with a national decline of 49 percent.
•    Bioscience-related academic research and development expenditures at Arizona’s universities reached a record $452 million in 2011, a 55 percent increase since 2002. Arizona’s growth had outpaced the nation until 2009, but now trails the overall U.S. growth rate of 74 percent.
•    Arizona universities spun out seven bioscience companies in 2012. University discoveries have now led to 67 new bioscience startups since 2002 as well as 180 bioscience patents.

There were a number of major developments in 2012 that showed the collaborative nature of Arizona biosciences, including the completion of major projects, the approval of future pursuits, and an emphasis on education.

The University of Arizona opened its new Health Sciences Education Building on the Phoenix Biomedical Campus that enabled the UA College of Medicine-Phoenix to increase enrollment and for Northern Arizona University to begin Phoenix-based physician assistant and physical therapy programs. In addition, final approval was granted by the Arizona Board of Regents for the UA Cancer Center-Phoenix to be built on the same campus in partnership with St. Joseph’s Hospital and Medical Center.

A number of incubators and accelerators opened or expanded with more in the planning stages. BioInspire, an incubator for medical-device startups, opened in Peoria; GateWay Community College in Phoenix opened the Center for Entrepreneurial Innovation; the Arizona Center for Innovation at the UA Science and Technology Park in Tucson opened upgraded facilities and launched new programming; Flagstaff received funding for a planned accelerator; and the statewide Arizona Furnace accelerator began awarding seed money and access to incubation space.

Among other major developments, the inaugural Arizona SciTech Festival attracted 200,000 participants from across the state during February and March 2012, making it one of the largest in the nation; Banner Alzheimer’s Institute launched a $100 million trial to prevent or delay Alzheimer’s disease; a new skin-cancer drug first tested by Translational Genomics Research Institute and Scottsdale Healthcare received expedited approval from the Food and Drug Administration; Arizona State University began leading the first national algae biofuel testbed; Mayo Clinic announced plans for a new cancer center on its north Phoenix campus; and Banner MD Anderson Cancer Center in Gilbert announced a $63 million expansion.

On Dec. 4, 2012, the Flinn Foundation and bioscience leaders from across Arizona came together at the Arizona Biltmore to celebrate the 10th anniversary of the launching of Arizona’s Bioscience Roadmap. The Foundation announced it has committed to continue funding Arizona biosciences and coordinating the Roadmap as it enters its next chapter.

“We recognize this is a long-term pursuit,” said Jack Jewett, president and CEO of the Flinn Foundation. “We will continue to strive to improve the lives of Arizonans today and tomorrow through new medical discoveries, access to clinical trials and the recruitment of top researchers, while also attracting high-wage jobs that will strengthen Arizona’s economy.”

The Flinn Foundation is a Phoenix-based, private, nonprofit philanthropic endowment. It was established by Dr. and Mrs. Robert S. Flinn in 1965 with the mission of improving the quality of life in Arizona to benefit future generations. The nonprofit philanthropy supports the advancement of Arizona’s bioscience sector, the Flinn Scholars program, arts and culture, and the Arizona Center for Civic Leadership.

economy

Arizona Economy Expands in September

Comerica Bank’s Arizona Economic Activity Index increased by 0.9 percentage points in September, rising to a level of 87.7. The September index reading is 17 points, or 24 percent, above the index cyclical low of 71.0. Year-to-date the index has averaged 85 points, seven points above the average for all of 2011. August’s index reading was unrevised at a level of 86.8.

“The Arizona economy expanded for the fourth straight month in September, as shown by our Arizona Economic Activity Index. Job gains are strengthening the foundation of our index, as Arizona job growth continues to outpace that of the nation. Phoenix home prices have increased every month for the 12 months through September,” said Robert Dye, Chief Economist at Comerica Bank. “The recovery in home prices and in residential construction is providing broad support to nearly all aspects of the state economy. We expect to see further improvement to the Arizona economy in the months ahead.”

The Arizona Economic Activity Index consists of seven variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, and the Case-Shiller home price index. All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.

Comerica operates 18 full-service banking centers throughout the Phoenix/Scottsdale area. In addition to Arizona, Comerica locations can be found in its headquarters state of Texas, as well as in California, Florida and Michigan, with select businesses operating in several other states,

jobs

Top 10 cities and states for job growth

Unemployment and job growth remain big issues in the U.S. economy and in the current political campaigns. So now, more than halfway through the year, what are the top states and cities for job growth? Research Professor Lee McPheters of the W. P. Carey School of Business at Arizona State University provides rankings and analysis based on the latest figures from the U.S. Bureau of Labor Statistics.

Top 10 cities and surrounding metro areas (1 million or more workers) for non-agricultural job growth, comparing July 2011 with July 2012:

1. San Francisco – up 3.5 percent
2. Houston – up 3.2 percent
3. Denver – up 3 percent
4. (tie) Phoenix – up 2.9 percent
4. (tie) Seattle – up 2.9 percent
4. (tie) San Diego – up 2.9 percent
7. Cincinnati – up 2.8 percent
8. Riverside, Calif. – up 2.3 percent
9. (tie) Portland, Ore. – up 2.2 percent
9. (tie) Boston – up 2.2 percent

Top 10+ states for non-agricultural job growth, comparing July 2011 with July 2012:

North Dakota – up 6.9 percent
California – up 2.6 percent
Oklahoma – up 2.5 percent
Arizona – up 2.4 percent
Indiana – up 2.2 percent
Minnesota – up 2.1 percent
Texas – up 2.1 percent
Louisiana – up 2.1 percent
Kentucky – up 2.1 percent
Utah – up 2 percent
Vermont – up 2 percent
Ohio – up 2 percent

The overall job-growth rate for the United States, from July 2011 to July 2012, was 1.4 percent. The number of jobs went up 1.83 million nationwide.

However, 12 states had non-agricultural job creation at or above 2 percent. That includes North Dakota, which has ranked No. 1 for 38 consecutive months — thanks largely to oil and gas production. However, other states are moving up in the rankings.

“California is the state that’s really climbing,” says McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. “California added 362,000 jobs from July to July, more than any other state, placing it second on the list. It’s all the way up from 38th place last July. Big gains came in the professional and business services sectors, which accounted for almost one out of every three new jobs there.”

McPheters adds that Indiana and Ohio are growing faster now than at any other time since the year 2000. Those two states and Illinois each added more than 20,000 manufacturing jobs over the year. Ohio, California, New York and Texas are the only states that added more than 100,000 jobs total over the past 12 months.

Also, Arizona, Oklahoma and Minnesota are all on track for their best annual increase in employment since 2006.

“Arizona moved up to fourth place in the job-creation rankings, and I expect it to rank among the top 10 states for the year as a whole,” says McPheters. “This would be a big improvement over 2010, just two years ago, when the state ranked 49th in annual employment growth. Big gains in the retail sector have helped.”

As far as the election swing states: Colorado, Ohio and Virginia all exceeded the national job-growth average, while Florida, North Carolina and Pennsylvania were below it.

Eight states lost jobs year-over year: Alaska, Mississippi, Missouri, New Hampshire, New Mexico, Rhode Island, Wisconsin and Wyoming.

“State job growth is diversified, with every region represented in the top 10,” says McPheters. “However, the top 10 fastest-growing metro areas – except Cincinnati and Boston — are all in the West.”

San Francisco and Houston are the only two metro areas with annual job growth above 3 percent, more than twice the growth of the national economy. However, McPheters says the industries driving the growth are very different. San Francisco had an 8.6-percent boost in its professional and technical sectors, while Houston’s health care industry experienced 6.5-percent growth over the year.