Update On The Job Market In Kentuckiana December 2022
Updated: Dec 16, 2022
Turn on your favorite news channel and you're likely to hear reports of what is happening in the national economy or in places like New York, Chicago, or Los Angeles. But it isn't always easy to find economic data that is specific to our small corner of the country.
At the 812 Living Group we provide regular updates to our clients regarding the local real estate market which can offer clues to the economy as a whole, but we also like to scour the internet for other sources of data that can be helpful.
One such source is the Bureau of Labor Statistics (BLS) website. The BLS publishes data that covers the U.S. labor markets, such as unemployment rates, consumer prices, employee pay and benefits, etc.
The BLS just released their most recent "Economic Summary" report for the Louisville-Southern Indiana area and our Lead Realtor, Mike Schoonover, shared his thoughts in the video below:
As with the rest of the country, and much of the world, we are experiencing rising prices for both goods and services. However, the most recent Consumer Price Index (CPI), is showed that prices are starting to come back down towards their pre-pandemic levels.
But the most encouraging piece from the BLS's report shows that our area still has a strong job market with 4% employment growth and an unemployment rate that is well below the national average.
Clark County is currently showing an unemployment rate of 2.5% which is nearly one percentage point lower than the country as a whole and Floyd County came in even better at 2.4%.
We spoke to Scott Hawkins, Jeffersonville City Council member and President of Economic Redevelopment Commission, about the report and asked for his thoughts on Clark County's job growth and he told us:
The number one challenge we have when attracting quality, high paying jobs to the area is labor force. The things we have done, as a city, to improve quality of life (parks, concerts, venues, arts district, etc) are all directed to draw and retain talent. The influx of high quality jobs and quality of life projects has been making Jeffersonville and Clark County a better place to live, work, and raise a family."
Jeffersonville and surrounding cities have done a great job with local development over the last decade or so which is evidenced in part by the significant growth of major companies locating in River Ridge, the Sellersburg Industrial Park, and other parts of Southern Indiana. This has led to job growth and working opportunities for local residents.
A.D. Stonecipher, Clarksville Town Councilman and Chairman of the Clarksville Redevelopment Commission, shared:
Like many communities in our region, Clarksville continues to see businesses exploring an interest to relocate to Southern Indiana. The word is out that our market is business-friendly with growing, quality-of-life amenities."
The growth in access to amenities along with an emphasis on creating high-level recreational options for individuals and families appears to be having a positive effect on the community at large. Having said that, Councilman Stonecipher cautioned that the growth may not be without it's difficulties:
The challenges to securing these new jobs include housing supply and educational readiness. Municipalities are incentivizing developers to build what they can, while the State considers targeted increases to educational funding. Prepare for growing pains, as tax revenues must grow before the bonding out of new infrastructure can occur."
As we have reported in other posts, from a real estate perspective, we have seen local builders stepping in to fill the void in housing supply by ramping up building of both single family homes and multi-family complexes across the area. Building permits have been steady since the pandemic shut down in early 2020, but some construction projects have battled delays due to Covid-19 illnesses and building material shortages.
In spite of these challenges, the report from the BLS reflects that the Southern Indiana area is experiencing historically low unemployment and continued job growth which bodes well for the future of our community.
We spoke with Ryan Hodskins who is President-Elect of The Builders and Development Association of Southern Indiana as well as being the owner of a local home construction company and he told us:
We are in a very unique position with River Ridge. Large companies and manufacturers all over the country are looking at our community as home for their business. This large growth equals more jobs that require more housing and expanded municipalities such as sewers. This is an amazing time in southern Indiana and our economy is strong. “
To view the full report from the Bureau of Labor Statistics, click on the link here: https://www.bls.gov/regions/southeast/summary/blssummary_louisville.pdf
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