Missouri losses of jobs rate highest in nation

JEFFERSON CITY, Mo. -- Missouri lost more than 90,000 jobs over a 20-month period ending late last year -- one of the largest work force losses among the 50 states, officials said Tuesday.

In fact, on a per-capita basis, Missouri's decline led the nation, said state economic development officials.

Missouri lost 3.28 percent of its nonfarm jobs over the 20 months from March 2001 through November 2002, the most recent month for which statistics are available.

Several other states were not far behind. Georgia, Washington, Colorado, Delaware and Massachusetts all lost more than 2.5 percent of their jobs.

But 16 states gained jobs, led by Alaska, which had an increase of nearly 3 percent.

Joe Driskill, director of the state Department of Economic Development, said Missouri's big losses are taken from previous gains. During an economic boom from March 1994 to March 2001, the state gained 311,454 jobs.

"We do believe it's because we had good job growth in the 1990s in categories that were hit hardest in the recession," Driskill said, citing the communications, transportation and securities industries.

Driskill said the state must position itself to be on sound footing when the recession ends by investing in new technologies, paying attention to the needs of small businesses and improving education levels.

Missouri was one of 35 states with net job losses during the 20-month period. Texas, New York, Illinois, Georgia and Ohio all lost more jobs than Missouri did, but those five states had more total jobs and workers than Missouri.

Missouri's job losses initially came predominantly from the manufacturing sector, but they have since spread to other areas. In fact, 20 states have lost a greater percentage of factory workers than Missouri, according to the economic development department.

Significant losses have occurred in Missouri's business services sector and in electronics equipment manufacturing. State budget cuts also have resulted in fewer government jobs and heavy construction jobs.

Both Democrats and Republicans are saying they want to make job creation an issue in the new legislative session.

Gov. Bob Holden on Wednesday proposed more tax incentives to keep businesses in Missouri, a change of policy from efforts that traditionally have sought to attract new businesses.

House Speaker Catherine Hanaway, R-Warson Woods, has said repeatedly that job creation is her top priority.