Two local labor market lookbacks as we wait for July’s reports


In a little over a week we’ll have the first look at the Tri-Cities labor market and employment for July.

But before we move on, there’s a couple of things about June and ETSU economist Steb Hipple’s Q2 report deserving of a second look.

During his radio spot on WETS’s Business Matters Hipple expanded on what was widely reported when his Q2 analysis was released. That point was the Bureau of Labor of Statistics two monthly reports were finally telling the same story – one that local economy watchers have been waiting for. Hipple said the Q2 employment numbers were “incredible” and the best performance in three years.

If you want the background of the different story aspects of the employment and jobs report check out the Business Matters podcast when it posted at http://www.etsu.edu/wets/programming/podcasts.aspx  or read up on it at my posts  “Tri-Cities labor market continues positive trend”  or “May preliminary employment report positive – ETSU economist question accuracy of local Q1 employment date”.

Professor Hipple’s outlook is the local labor market is finally being to show the effects of the national jobs improvements. In other words, our boat is finally being lifter by the national rising tide.

The second lookback at June’s market reports comes from MTSU’s heat chart for the Kingsport-Bristol and Johnson City MSAs. Heat charts are a good way to quickly get you head around the year-to-year labor sector trends.

There are several job sectors shows a multiple month growth trend in both MSA.

Professional and Business Services in the Johnson City MSA is one to watch because most of the jobs are in the higher pay category and the growth trend has lasted for nine straight months. Manufacturing has also seen two straight months of strong growth. The Leisure and Hospitality sector also has a solid growth line. The only reason it’s discounted is the sector’s record of low-paying and low-quality jobs.

Unfortunately the Kingsport-Bristol chart doesn’t paint as overall strong a trend picture of the Johnson City MSA, but there is encouraging growth in the manufacturing sector. That sector has seen year-over-year growth above 1% for the past four months. The growth trend is stronger in the retail sector – but the wages are lower.

Check out the Johnson City MSA heat chart at http://capone.mtsu.edu/berc/tacir/johnsoncityjobs.html

Kingsport-Bristol’s chart can be found at http://capone.mtsu.edu/berc/tacir/kingsportbristoljobs.html

Here’s some drill-down on the five major sub-sectors in the Professional and Business Services sector for those who want a closer look at jobs:

“The Professional, Scientific, and Technical Services sector comprises establishments that specialize in performing professional, scientific, and technical activities for others. These activities require a high degree of expertise and training. The establishments in this sector specialize according to expertise and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: legal advice and representation; accounting, bookkeeping, and payroll services; architectural, engineering, and specialized design services; computer services; consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific, and technical services.

“The Management of Companies and Enterprises sector comprises (1) establishments that hold the securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest or influencing management decisions or (2) establishments (except government establishments) that administer, oversee, and manage establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision making role of the company or enterprise. Establishments that administer, oversee, and manage may hold the securities of the company or enterprise. Establishments in this sector perform essential activities that are often undertaken, in-house, by establishments in many sectors of the economy. By consolidating the performance of these activities of the enterprise at one establishment, economies of scale are achieved.

“The Administrative and Support and Waste Management and Remediation Services sector comprises establishments performing routine support activities for the day-to-day operations of other organizations. These essential activities are often undertaken in-house by establishments in many sectors of the economy. The establishments in this sector specialize in one or more of these support activities and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: office administration, hiring and placing of personnel, document preparation and similar clerical services, solicitation, collection, security and surveillance services, cleaning, and waste disposal services.

“Industries in the Administrative and Support Services subsector group establishments engaged in activities that support the day-to-day operations of other organizations. The processes employed in this sector (e.g., general management, personnel administration, clerical activities, cleaning activities) are often integral parts of the activities of establishments found in all sectors of the economy. The establishments classified in this subsector have specialization in one or more of these activities and can, therefore, provide services to clients in a variety of industries and, in some cases, to households. The individual industries of this subsector are defined on the basis of the particular process that they are engaged in and the particular services they provide.

“Industries in the Waste Management and Remediation Services subsector group establishments engaged in the collection, treatment, and disposal of waste materials. This includes establishments engaged in local hauling of waste materials; operating materials recovery facilities (i.e., those that sort recyclable materials from the trash stream); providing remediation services (i.e., those that provide for the cleanup of contaminated buildings, mine sites, soil, or ground water); and providing septic pumping and other miscellaneous waste management services. There are three industry groups within the subsector that separate these activities into waste collection, waste treatment and disposal, and remediation and other waste management.”

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  1. […] June Kingsport-Bristol and Johnson City MSA heat carts  […]

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