See Why your college degree is worthless in Tennessee

Statistics chart evolution of local job market and employee wages

November 30, 2003

By SHARON CASKEY HAYES

KINGSPORT - From 1975 to 2000, the Tri-Cities gained more than 30,000 service jobs and more than 14,000 retail positions, while overall manufacturing employment declined.

Statistics from the Tennessee Department of Labor & Workforce Development show that manufacturing in the Tri-Cities lost a total of 2,747 jobs in the 25-year period. Durable goods manufacturing gained more than 5,000 jobs during the timeframe, while nondurable manufacturing lost 6,572 jobs in the region.

Employment levels declined in chemicals and allied products, textile and apparel manufacturing, paper and allied products, fabricated metals, and the stone, clay and glass industries.

Job gains were reported in industrial machinery, electronics manufacturing, and the printing and publishing industries.

Steb Hipple, economist at East Tennessee State University, said the data shows the region's employment growth has been centered in various service categories, many of which offer low-paying jobs.

"We're losing high-end jobs in manufacturing to offshore. And the growth in employment in services and retailing is lower-paying jobs, with the significant exception of the healthcare area," Hipple said.

The services industry added 30,634 jobs from 1975 to 2000, including 12,853 in health-related industries.

Business services added 7,661 jobs in the 25-year timeframe. Hipple said that increase reflects the growth in the temporary work and outsourcing industries.

The finance, insurance and real estate field also gained jobs in the period, from 3,278 in 1975 to 7,277 in 2000. The majority of that job growth occurred between 1995 and 2000 - reflecting the growth in the stock market during that period, Hipple said.

"A lot of people were drawn into different kinds of financial services over that period because of the big expansion and volume that occurred. But it was a bubble, and there have been substantial layoffs in that industry since 2000," Hipple said.

The construction industry also gained jobs in the period. In 1975, 6,726 people worked in construction in the region. By 2000, that number had risen to 9,914. Hipple said construction continues to be a strong industry sector here and across the nation, primarily because of low interest rates.

"People are continuing to take out mortgage loans and build new homes" despite the recent economic downturn, Hipple said.

"This is one of the characteristics of the present business cycle. Residential construction used to be very much affected by the business cycle, but it's been one of the strong areas in the regional and national economy right on through," he said.

The statistics also show which industries have posted strong wage growth by keeping pace or beating inflation through the years. If you're a skilled worker in the Tri-Cities, chances are your salary has outpaced inflation, based on the data. But if you work in a low-paying job, you may have seen your buying power erode.

According to the statistics, average wages in manufacturing, services, construction, and finance, insurance and real estate gained against inflation from 1975 to 2000.

Average wages in retail and government slipped when adjusted for inflation over the 25-year period.

According to the statistics, every employment sector in retail fell behind in wages based on inflation adjustments, except the automotive dealer category. T

he average annual wage for auto dealers rose from $7,666 in 1975 to $26,660 in 2000. That's a $3,662 gain on inflation. Meanwhile, restaurant workers have seen their average buying power decrease over the years.

In 1975, folks who worked in eating and drinking establishments earned $3,488 a year. By 2000, that figure had risen to $9,688 a year. But a restaurant worker would have had to earn $10,464 a year in 2000 just to keep pace with inflation.

To calculate for inflation, Hipple uses the consumer price index for 1975 vs. 2000, which shows that prices increased by three times in the 25-year period.

To adjust average wages for inflation, simply multiply the 1975 wage by 3. The resulting number represents the wage a worker in that job category would have to earn in 2000 to keep up with inflation.

Anything over that amount represents extra money in the worker's pocket. If the figure is below the inflation-adjusted amount, the worker has lost buying power in the 25-year period.

According to the data profiled, wages in every manufacturing category - except fabricated metals - outpaced inflation.

For instance, the average annual wage in nondurable goods manufacturing was $11,088 in 1975. If the wage had simply matched inflation, workers in nondurable goods manufacturing would have earned an average of $33,264 in 2000.

Instead, they earned an average of $42,310. "So you could say that $9,000 represents an increase in living standards over a 25-year period," Hipple said.

The majority of service industries posted wage gains over inflation as well, except business services and private educational jobs. And government wages fell short of inflation. The average annual government wage was $11,487 in 1975.

To keep pace with inflation, that wage should have been up to $34,461 in 2000, but statistics show the wage stood at $28,220 that year.

[ Islam Archive 1 ] [ Islam Archive 2 ]
[ Islam Archive 3 ] [ Islam Archive 4 ]