DED chief - Sky not falling on economy

Last week, the Missouri Chamber of Commerce declared a state of emergency after a U.S. Department of Labor report said Missouri led the country in job losses last year.

OK. I can see their point. Missouri did lose 78,000 jobs in 2002, more than any other state. Here in Southeast Missouri, we saw several of those jobs vanish, too.

Those lost jobs, the chamber said, represent $2.26 billion in lost wages and $126 million in lost tax revenue to the state.

"This is a crisis," said chamber president Dan Mehan.

It would certainly seem so. But, really, is it as bad as all that?

Two days later, Joe Driskill, the director of the state's Department of Economic Development, had every major business writer on the phone to rebut the claim.

"Let me make one point very clear: The sky is not falling on Missouri's economy," he said during the conference call last Thursday. "We don't believe there is a crisis. We think we're toward the end of an economic recession caused mainly by national developments."

He says the job loss figure only tells part of the story.

"If that's all you look at, there's a danger of not having a full understanding," he said.

Driskill offered several points. The key one was that the unemployment rate in Missouri dropped to 4.7 percent in February, the lowest it has been since July 2001. That's the sixth-greatest decrease in the country.

"While this is just one indicator of Missouri's economic conditions, it's a very important one," Driskill said. "The unemployment picture is very good and, frankly, is improving. It shows a trend that people are starting to go back to work in greater rates."

Driskill also took issue with the chamber's contention that job losses were severe because Missouri has a poor business climate, which makes employers want to locate elsewhere.

The Missouri Chamber of Commerce is proposing more restrictions on workers' compensation claims as well as caps on lawsuit liability recoveries. Chamber leaders say that would improve the business climate in Missouri and bring in more jobs.

Driskill doesn't deny that Missouri's business climate could be better.

"It's a case of, the bad news is we're in the middle," he said. "But the good news is, we're in the middle."

In other words, it could be worse.

Driskill also disagrees that new legislation would help.

"There's no one action, no silver bullet," he said. "There's nothing that can be done that instantly will turn us around in a different direction. To say that there is does oversimplify the challenges we face."

Driskill says that there are obviously challenges, but he thinks that Missouri mostly has been affected because of national developments and that we're near the end of the recession.

"The signs are clear, that despite our downturn, there is a good economy in this state," he said. "Very soon, we're going to see sustained growth in the economy."

I think even the folks at the chamber would think he's right.

Keyed in

Su Hill, who owns Saffron and Manee Thai in Cape Girardeau, is in the process of selling her house to move into the loft apartment at the former Keys Music Store at 121 Broadway.

Su also wants to develop a business in the downstairs part that used to house the music shop. She has several options and will know more in a couple of months.

"It's a beautiful building and I want to do something nice," she said.

Downtown development

There was some dirt moved around in downtown Cape Girardeau just north of Broadway and Main Street this week on property that affords a beautiful view of the Mississippi.

"Right now all we're doing is taking out the weeds and old scrub trees to clean up the neighborhood, but we hope to have some news about this property sometime in May," said Frank Kinder, a spokesman for RKJ Riverfront, LLC.

Briefly

Some downtown businesses have signed on to stay open after dark, according to Old Town Cape executive director Catherine Dunlap. So far, eight businesses have agreed to participate from May to September in keeping their businesses open until 8 p.m. on Friday nights. She's hoping others will agree to participate.

Scott Moyers is the business editor for the Southeast Missourian. Send your comments, business news, information or questions to Biz Buzz, 301 Broadway, Cape Girardeau, Mo., 63702-0699, e-mail smoyers@semissourian.com or call 335-6611, extension 137.