National Economic Outlook - October 2015

National Economic Outlook - October 2015

Written By:
Ingo Winzer, President

Local Market Monitor

One of the main drivers of the economy in the past decade has been the healthcare sector, which now employs one in every eight workers. This is partly because of advances in medical care, partly because of the aging of baby boomers, and partly because more people have health insurance. In many communities where manufacturing was once dominant, healthcare is now the anchor of the economy.

Healthcare jobs require more skill and are better paid than in the past, with hourly wages of $24 that equal those in business services and finance, and are higher than those in manufacturing. Local markets with a growing healthcare sector will have steadily higher demand for homes and apartments.

The number of jobs in September was up 1.9 percent from last year, a slight slowing from previous months. The main culprit was manufacturing, where jobs increased just 0.7 percent - compared to 1.6 percent earlier this year. Jobs were higher by 2 percent in retail, 3.1 percent in business services, 3.1 percent in healthcare, and 3.2 percent at restaurants. Government jobs increased 0.8 percent, mainly at the state and local levels.

The slowdown in manufacturing was concentrated in metal products and machinery, probably linked to lower worldwide demand for mining and construction machinery. Jobs in the auto and aircraft manufacturing sector were up a solid 2.7 percent.