SKILLED WORKERS LEAVING MISSOURI, NEW STUDY SHOWS

KANSAS CITY -- In economic circles, it is known as "skilled worker net migration." But the more common term for is just plain "brain drain," the process in which more educated workers leave a state than move in.

From 1985 to 1990, no state in the Midwest had a larger skilled-worker out-migration than Missouri.

According to officials at the 10th District Federal Reserve Bank here, Missouri suffered a significant loss of well-educated workers even as it was experiencing an increase in overall population. A study just completed by Federal Reserve economists shows Missouri lost 12,239 highly skilled workers ages 25 and over and still more educated workers under the age of 25 during the five-year period studied.

The population gain for Missouri was proportionately less than its loss of high-salaried and well-educated workers, and the bank's economists say this indicates a large increase in new residents with less than college-level educations.

Missouri's out-migration total during the period was 96,811 workers, with an expected annual income of $3.2 billion, while its in-migration total was 84,572 workers, with an expected combined income of $2.7 billion.

During the final year under study, 1989, Missouri's brain drain for the 12-month period cost the state $561.2 million in total salaries, representing 0.4 percent of the state's total personal income. The loss for the entire period form 1985 to 1989 was $1.2 billion, the Federal Reserve study shows.

Economists say a brain drain of the size experienced by Missouri not only reduces the state's economy but dampens retail and wholesale activity and erodes local as well as state tax bases.

As could be expected, most of the highly educated workers left administrative and white-collar jobs. They were executives, managers, professionals, technicians and sales and support workers. The study found that in Missouri most of the while-collar workers leaving the state were "professional specialty" employers and employees, such as engineers, architects, teachers, scientists, doctors, lawyers and commercial artists.

Because earnings typically rise with education, most of the skilled workers who left Missouri had higher than average income, with yearly total personal incomes of about $30,000. The income distribution among highly educated migrants was unbalanced within Missouri, since more than 80 percent of those leaving came from the higher income grouping.

Missouri's migration loss of highly educated workers saw a reduction of 2,590 workers in manufacturing, 1,935 in wholesale and retail trade, 6,266 in services and 1,299 in government. Losses were also registered in agriculture, transportation, communications, public utilities, construction, finance and insurance.

According to Deron Ferguson, a Federal Reserve research economist, the state suffered its significant brain drain as workers left for other parts of the United States in a search for better employment opportunities. Under the definitions set by the U.S. Census Bureau, a highly educated worker is one who holds a bachelor or higher college degree.

Missouri registered a brain drain deficit twice that of Kansas.