Wednesday, July 25, 2012

Brief Kane County Economic Update

Kane County continues to struggle on its way to economic expansion. For the past two years, sustained job growth has proved elusive. The county just vacillates between job growth and job loss. As of March 2012, Kane County is once again showing a marginal 0.6-percent job loss. This lack of focus is also reflected in other economic indicators—some are improving others are not. Here’s a brief look at the entire picture:

  • Between March 2011 and March 2012, Kane County’s nonfarm employment dropped by 17 jobs. That’s hardly a huge job loss, but still far from the moderate expansion residents would prefer.
  • While some industries are expanding, more are showing job loss. The leisure/hospitality services industry ranks, by far, as the largest job producer. Other job-gaining sectors show little improvement.
  • On the other hand, retail trade, private education/health/social services, and other services all showed noticeable contractions.
  • In recent months, Kane County’s unemployment rate has ticked up a notch. In May 2012, its jobless rate registered 7.7 percent--not far below the national average. On the other hand, initial claims for unemployment insurance are generally running below last year’s levels.
  • Construction permitting in Kane County has yet to revive. In the first four months of the year, approved home permits are down almost 60 percent. Moreover, total permit values also dropped by roughly 60 percent when compared to January to April permits for 2011.
  • Gross taxable sales provide the best economic news for Kane County. First quarter 2012 sales are up 10 percent compared to the first quarter of 2011. This gain marks the fifth straight quarter of improving sales.