Metro Economic Outlook: St. Louis

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1 Metro Economic Outlook: St. Louis A series of large-scale, private-sector expansions in the St. Louis region are adding thousands of jobs to local payrolls, headlined by one of the world s biggest aircraft manufacturers. Boeing announced in October 2014 that it would use its existing plant in St. Louis for production of a component of the new 777X commercial airliner. The move will bring 700 jobs to the region when work begins in Unemployment rate This comes on the heels of other announcements from the company in recent months Boeing will also create a research and technology center that will add 400 local jobs, and it will hire 500 more workers as part of a service contract for Lockheed Martin s F-22 0 Source: Bureau of Labor Statistics (October 2015) Raptor aircraft, used by the Air Force. ST. LOUIS METRO: : VITAL STATS Total working age population: 1,679,893 out of a total population of 2,805,856 Number of households: 1,096,200 Consumer price index: (goods and services that cost $100 in cost $ in 1 st half of 2015) Percentage of local residents with bachelor s degrees: 19.4 With graduate or professional degrees: 12.9 Student concentration: 76 college students per 1,000 residents Sources: Census Bureau (2014), Bureau of Labor Statistics (1 st half of 2015), American Institute for Economic Research (2014) Overall, we are recovering nicely from the recession, said Denny Coleman, CEO of the St. Louis Economic Development Partnership, the local economic development agency. Manufacturing has come back, and financial services has continued to grow. The only downturn has been in government services, but as the economy has turned around and more tax dollars come in, we expect that to get better. The St. Louis region spans 16 counties (eight each in Missouri and Illinois). It is anchored by St. Louis County in Missouri, which is home to 1 million people and responsible for 20 to 25 percent of the state s economy, as well as 50 percent of the metro region s economy. Two locally-headquartered Fortune 500 companies are in the midst of major growth spurts in the St. Louis region. Pharmacy benefit management company Unemployment and most CPI data updated monthly. Other data updated once annually as it becomes available.

2 Express Scripts will conduct a $56 million expansion and create 1,500 new jobs by 2018, and agricultural and biotechnology giant Monsanto will add a series of laboratories, greenhouses and research facilities to its local operations that will result in 675 new jobs by Mining, logging and construction Manufacturing Trade, transportation and utilities Information Financial activities Professional and business services Education and health services Leisure and hospitality Other services Government Total nonfarm Some of the region s other well-known Fortune 500 companies include Reinsurance Group of America, global manufacturing and technology company Emerson Electric, and financial services company Edward Jones. Labor force makeup Source: Bureau of Labor Statistics (January 2015) Cutbacks in the automotive industry left their mark on the St. Louis region in recent years, particularly in 2009 with the closure of a Chrysler manufacturing plant and subsequent losses of auto suppliers and ,000 1,500 Number in thousands distributors that supported its operations. But now the Chrysler property could see new life. A developer has purchased the 295-acre parcel and hopes to bring a variety of manufacturing, office and distribution uses to the site. Representatives of the property s new owner, KP Development, estimate that the project could generate 1,500 jobs by the end of Working age categories 173,799, 1 181,985, 11% 204,753, 12% 376,501, 22% 396,538, 24% 346,317, 21% Source: Census Bureau (2014) 20 to to to to to to 64 Elsewhere, German agricultural company KWS chose St. Louis as its North American research headquarters in June The company, which specializes in crop breeding, will create 75 jobs, but the move will do more than just add to the labor force, Coleman said. That was a very positive outcome for us, he said. It gives us a very strong recommendation as a place to do business, and it will help with other companies that we are recruiting, as well. 2

3 Employee Benefits Data 3 1 Employers offering consumer-driven health plans 23% Employers in the St. Louis metro area are slightly more likely to offer consumer-driven health plans compared with the national level, by a margin of 3 percent Employers offering domestic partner benefits 48% 18% They are much less likely to offer domestic partner benefits, by a 30 percent margin below the national level. Source: SHRM Health Care Benefits Database (2014) Retirement Employee 401(k) participation rate % 59% The rate of 401(k) participation in the St. Louis metro area s workforce is slightly below the national level, by a margin of 3 percent. 1 Source: SHRM Retirement & Welfare Benefits Database (2013) 3

4 Income and Turnover Data Overall turnover rate 15% 1 5% 17% 11% The turnover rate in the St. Louis metro area s workforce is somewhat lower than the national level, by a margin of 6 percent. Source: SHRM Human Capital Database (2014) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Median household income $53,657 $55,535 Median household income in the St. Louis metro area is slightly higher than the national level, by nearly $2,000 annually. $0 Source: Census Bureau (2014) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Per capita income $28,889 $30,293 Per capita income in the St. Louis metro region is also slightly higher than the national level, by more than $1,000 annually. Source: Census Bureau (2014) 4

5 Top Management Salaries Data Median salaries, top management Top legal executive Chief information officer *Top HR executive Chief financial officer Chief executive officer $283,000 $305,400 $270,000 $264,300 $228,500 $220,000 $350,000 $344,400 $544,700 $618,400 Median salaries for top management level employees in the St. Louis metro area vary when compared with national levels. *Without labor relations experience $0 $200,000 $400,000 $600,000 $800,000 Source: Towers Watson Data Services 2014 Survey Report on Top Management Compensation Project lead: Joseph Coombs, Senior Analyst, Workforce Trends, SHRM Project contributors: Alexander Alonso, Ph.D., SHRM-SCP, VP of Research; Jennifer Schramm, M. Phil., SHRM-SCP, Manager, Workforce Trends External contributors: Denny Coleman, St. Louis Economic Development Partnership Copy editing: Katya Scanlan, copy editor This report is published by the Society for Human Resource Management (SHRM). All content is for informational purposes only and is not to be construed as a guaranteed outcome. SHRM cannot accept responsibility for any errors or omissions or any liability resulting from the use or misuse of any such information Society for Human Resource Management. All rights reserved. Printed in the United States of America. These materials and the data contained within them are copyrighted by SHRM, another copyright holder (where noted), or are government-owned. SHRM hereby grants permission for users to copy and use these materials and the data contained within them only if proper attribution is given to SHRM (or the noted copyright holder) as the source of the material. For more information, please contact: SHRM Research Department SHRM Human Capital Database 1800 Duke Street, Alexandria, VA 22314, USA Phone: (703) Fax: (703) SHRM Compensation Data Center SHRMResearch@shrm.org Web: 5