Alabama's Metropolitan Areas:
The Year 1998 in Review

Anniston. The Anniston Metropolitan Area (MA) faced challenges on several fronts in 1998. Jobs in the MA were 200 below 1997 through November, while there were 900 fewer employed residents. Employment in the manufacturing sector was off 500 through November, primarily due to job losses in apparel and electrical machinery manufacturing. On the positive side, retail sales for the first six months of 1998 were 6.9 percent above the same period in 1997 and trade employment was up 200. And, while Fort McClellan has been winding down to its closure in September 1999, work at the Anniston Army Depot has increased.

Birmingham. With unemployment averaging 2.7 percent through November, jobs up 8,100, and 2,600 more area residents employed, the Birmingham Metropolitan Area fared well in 1998. Birmingham continued to build on its strengths in services and trade. Services employment increased by 3,800 through November 1998. Health, business, amusement, and telemarketing services all saw strong growth. Trade employment was up 3,100, with gains primarily in the retail sector. However, retail sales for the first six months of 1998 were a modest 2.6 percent higher than sales in the same period of 1997. Birmingham enhanced its position as the financial center of the state, with the addition of about 1,300 jobs in finance, insurance, and real estate. In contrast, manufacturing employment continued to decline, averaging 1,200 fewer jobs in 1998. Primary and fabricated metals were hit hard- employment through November 1998 was 800 below 1997.

Decatur. With construction of Boeing's Delta IV rocket plant progressing on schedule, Decatur is poised to build on its strength in manufacturing. About 29.2 percent of area employment was in manufacturing in 1998, the highest concentration in the state. Although steel producer Trico was forced to scale back production, a number of other manufacturing firms announced expansions. Because production at Boeing is not yet online, manufacturing employment was up just 100 through November. Construction continued strong, with employment averaging 300 above 1997. Gains in services and trade were modest. Retail sales for the first six months of the year were up a moderate 3.2 percent. Unemployment dropped to an average of 4.0 percent through November 1998, with jobs in the area up 500 and the civilian labor force below its 1997 average.

Dothan. The Dothan Metropolitan Area continued to build on its strength as a regional center for employment and trade in 1998. There were about 600 more people commuting to work in the Dothan MA from outside Dale and Houston counties during the year. Employment of local residents was up 400, with unemployment averaging 3.3 percent through November. Retail sales of $10,080 per capita in 1997 were the highest in the state. Sales were 6.8 percent higher for the first six months of 1998 compared to 1997. Trade employment increased by about 200, while services sector jobs were up 600 through November. Although manufacturing employment declined by about 100, Dothan strengthened its position in transportation equipment manufacturing.

Florence. The Florence Metropolitan Area faced problems in 1998 in its manufacturing sector that were only partially offset by growth in other areas of its economy. Manufacturing averaged 1,300 fewer workers through November 1998 compared to 1997. Employment in primary metals averaged 500 below 1997, while nondurables employment, including textiles and apparel, was off 500. The recent announcement by Reynolds Metals of a definitive agreement to sell its complex to Wise Alloys LLC could boost area manu- facturing. Trade, the area's dominant employer, added about 400 jobs, although retail sales were up just 1.5 percent for the first six months of the year. Unemployment stayed at its 1997 level of 6.6 percent through November 1998 as both the number of employed residents and the size of the area labor force declined.

Gadsden. Restructuring in the Gadsden economy in the 1990s has created an employment mix balanced among manufacturing, trade, and services. Trade growth was strongest in 1998, with over 200 new workers. Retail sales for the first six months of the year compared to 1997 were up a moderate 3.0 percent. Employment in every other sector held steady or increased slightly over 1997, contributing to an overall increase of 600 nonagricultural jobs through November. Unemployment averaged 4.4 percent in 1998. Layoffs in the fall at Goodyear's Gadsden tire plant and Gulf States Steel contributed to rising unemployment late in the year.

Huntsville. With the launching of the first components of the International Space Station in 1998, Huntsville was prominently in the public's eye as a center for space technology. Overall employment in area manufacturing, which has a strong high-tech component, was up an average of 400 through November. However, a month-to-month comparison of November 1998 to November 1997 saw the loss of 1,900 electrical and nonelectrical machinery manufacturing jobs. The services sector was the major strength of the Huntsville economy in 1998, with jobs averaging 1,700 above 1997 levels. Trade employment was up also, with about 400 more workers in wholesale and retail trade. Still, retail sales for the first six months of the year were flat. Unemployment in the Huntsville MA averaged 2.9 percent, with 2,000 additional jobs on average in the area during 1998.

Mobile. Growth was balanced across all sectors of the Mobile Metropolitan Area during 1998. About 3,900 nonagricultural jobs were created. The addition of 1,200 jobs helped services remain the area's dominant employer, with particular strengths in tourism and telemarketing. Wholesale and retail trade also had a good year, gaining about 1,000 jobs. However, retail sales were up a modest 0.8 percent for the first six months of 1998. Strong growth was also seen in state and local government. Manufacturing jobs were up just 300, as the area's paper and textiles and apparel industries responded to competitive pressures. With jobs in the Mobile MA up strongly overall and the civilian labor force growing more slowly, unemployment was down from 4.9 percent in 1997, averaging 3.7 percent through November 1998.

Montgomery. Weak performance on the goods- producing side of the Montgomery Metropolitan Area economy moderated employment gains in 1998. Employment in manufacturing was up 100 through November, while construction employment was off 300 compared to 1997. Services, already the area's dominant employer, had the strongest gains with the addition of about 900 jobs. Retail trade employment, down for most of the year, recovered late in 1998. Retail sales for the first six months of the year were up 0.8 percent over the same period in 1997. The Montgomery MA continued to build on its strength as a financial center in the state, with the addition of about 200 FIRE jobs. With nonagricultural jobs up 600 and the civilian labor force down slightly, unemployment averaged just 3.2 percent through November 1998.

Tuscaloosa. Tuscaloosa's economy registered the highest percentage job growth in the state in 1998. Manufacturing continued the steady job gains seen during the 1990s. Success of the Mercedes M-Class spearheaded growth in the Tuscaloosa MA's automotive manufacturing cluster as Mercedes and its area suppliers added capacity and jobs. Other segments also contributed to the gain of 800 manufacturing jobs through November 1998. Construction employment averaged 400 above 1997 levels. Services added about 500 jobs for the year, while retail trade employment in November 1998 was 400 above November 1997. Retail sales for the first six months of 1998 were 4.5 percent above the same period in 1997. At 2.6 percent, unemployment in the Tuscaloosa MA was the lowest in the state. Non- agricultural jobs rose 2,400 through November, while employment of area residents was up 1,600.

Carolyn Trent
**02/99

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