Category Archives: Economics

Kansas personal income growing, but slowly

For 2017, just four states had less growth in personal income than Kansas.

Statistics released today by the Bureau of Economic Analysis, an agency of the United States Department of Commerce, show personal income in Kansas growing at a slow rate.

The figures released today are through calendar year 2017. For that year, personal income in Kansas grew to $141,459 million, up 2.4 percent from $138,105 million the previous year. These are current dollars.

Using inflation-adjusted dollars, income growth was 0.8 percent.

Of the states, BEA noted: “Two states had declines in real personal income — North Dakota (-1.3 percent) and South Dakota (-0.4 percent). States with the slowest growth in real personal income were Iowa (0.3 percent), New Mexico (0.6 percent), and Kansas (0.8 percent).”

The per capita personal income figures for Kansas rose by the same percentage values as the current and inflation-adjusted income. In current dollars, per capita personal income in Kansas for 2017 was $48,600.

BEA offers these definitions:

Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses.

Personal income is measured before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes). Comparisons for different regions and time periods reflect changes in both the price and quantity components of regional personal income.

The estimate of personal income for the United States is the sum of the state estimates and the estimate for the District of Columbia; it differs slightly from the estimate of personal income in the national income and product accounts (NIPAs) because of differences in coverage, in the methodologies used to prepare the estimates, and in the timing of the availability of source data.

Per capita personal income is calculated as the total personal income of the residents of a given area divided by the population of the area. In computing per capita personal income, BEA uses Census Bureau mid-year population estimates.

Updated: Gross domestic product by state and industry

An interactive visualization of GDP by state and industry, updated with annual data through 2018.

New figures from the Bureau of Economic Analysis, an agency of the United States Department of Commerce, show gross domestic product in the states by industry.

BEA defines GDP as “the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production.” It is the value of the final goods and services produced. These values are real, meaning adjusted for inflation. The values for year 2018 are preliminary and subject to revision.

As shown in the accompanying illustration, Kansas has not kept up with most surrounding states.

In the interactive visualization, you may select a time period, one or more states, and one or more industries.

To learn more about the data and access the visualization, click here.

Click for larger.

Kansas GDP

In the fourth quarter of 2018, the Kansas economy grew at the annual rate of 0.9 percent, down from 1.2 percent the previous quarter.

In the fourth quarter of 2018, the Kansas economy grew at the annual rate of 0.9 percent in real (inflation-adjusted) dollars, according to statistics released today by Bureau of Economic Analysis, a division of the United States Department of Commerce. GDP for the quarter was at the annual rate of $169,558 million.

The rate of 0.9 percent ranked forty-fifth among the states.

Quarterly GDP growth for states can be volatile, as shown in the nearby chart.

Over the last eight quarters, Kansas has averaged quarterly growth rates of 0.5 percent in annual terms. For the nation, the rate was 2.7 percent. For the Plains states, it was 1.5 percent. (For this data, BEA defines Plains states as Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota.)

For Kansas, industries that differed markedly from the nation include agriculture, utilities, construction, nondurable goods manufacturing, educational services, and government and government enterprises.

Wichita jobs and employment, March 2019

For the Wichita metropolitan area in March 2019, jobs are up, the labor force is up, and the unemployment rate is unchanged when compared to the same month one year ago. Seasonal data shows a small decline in jobs from February.

Data released today by the Bureau of Labor Statistics, part of the United States Department of Labor, shows an improving, but also mixed, employment situation for the Wichita Metropolitan Statistical Area.

Click charts and tables for larger versions.

Total nonfarm employment rose from 296,000 last March to 300,700 this March. That’s an increase of 4,700 jobs, or 1.6 percent. (This data is not seasonally adjusted, so month-to-month comparisons are not valid.) For the same period, jobs in the nation grew by 1.7 percent.

The unemployment rate in March 2019 was 3.9 percent, the same as one year ago.

Considering seasonally adjusted data from the household survey, the labor force rose by persons (0.0 percent) in March 2019 from February 2019, the number of unemployed persons rose by 149 (1.3 percent), and the unemployment rate rose from 3.7 percent to 3.8 percent. The number of employed persons not working on farms fell to 299,597 in March from 299,738 the prior month, a decline of 141 persons, or 0.0 percent.

The following chart of the monthly change in labor force and employment shows a general decline over the past year, with some recent months of losses for both measures.

The following chart of changes from the same month one year ago shows recent declines in the rate of growth.

Looking at the charts of changes in employment year-over-year, we see some months in the past year where Wichita outperformed the nation. That last happened in 2012.

Updated: Employment in the States

An interactive visualization of the civilian labor force, employment, and unemployment, for each state. Updated through March 2019.

As seen in the nearby example, Kansas continues its undistinguished record in job growth as compared to nearby states. In the visualization, you can easily choose states to compare, select a timeframe, and look at labor force, employment, and unemployment.

Click here to learn more about the data and access the interactive visualization.

Click for larger.

Kansas jobs, March 2019

Employment in Kansas continues to mostly grow in March 2019, but continues a trend of slower growth than the nation.

Data released last week from the Bureau of Labor Statistics, part of the United States Department of Labor, shows a decline in jobs in Kansas for February 2019.

Click for larger.

Using seasonally adjusted data, from February 2019 to March 2019, nonfarm employment in Kansas fell by 2,500, which is 0.2 percent. Over the year, the number of Kansas nonfarm jobs for March 2019 rose by 5,900 or 0.4 percent over last March. This is using seasonally adjusted data. The non-adjusted figure is nearly the same at 5,300.

Over the year (March 2018 to March 2019), the Kansas labor force is up by 0.5 percent using seasonally adjusted data, with only small changes over the past three months. Non-seasonal data shows a slight decline in the labor force over the year.

The number of unemployed persons rose from February 2019 to March 2019, rising by 792 persons, or 1.5 percent. The unemployment rate was 3.5 percent in March, up from 3.4 percent from one year ago, and also up from 3.4 percent in February.

Click charts and tables for larger versions.

The following chart shows the change in nonfarm jobs over the same month one year ago. For the past several years the line for Kansas has been below the line for the nation, meaning jobs were growing slower in Kansas. Recently, however, the gap between the lines is smaller.

Wichita aerospace manufacturing concentration

Wichita leaders want to diversify the area economy. Has there been progress?

One way to measure concentration of an industry in a location is by the proportion of employment in that industry. The Bureau of Labor Statistics provides employment by industry for metropolitan areas. I’ve gathered the data for the Wichita MSA for two industries: Aerospace Product and Parts Manufacturing (NAICS code 3364) and all manufacturing. I’ve gathered this data for the Wichita Metropolitan Statistical Area and compare it to total private sector employment. This data is not adjusted for seasonality, as some is available only in that manner.

Click for larger.
Click for larger.

As the charts illustrate, there was a large shift in the two industry’s share of employment around the time of the Great Recession. Since then, the ratios have been more stable, with a slow decline until a small reversal of that trend over the last year.

The chart of employment ratio changes from the same month one year ago confirms: Manufacturing and aerospace employment has grown faster than total private employment in the recent year or so.

Click for larger.

Another way to measure concentration of an industry is through location quotients. The Bureau of Labor Statistics provides these, most notably for counties as part of the Quarterly of Census and Wages. 1 As described by BLS, “Location quotients are useful for studying the composition of jobs in an area relative to the average, or for finding areas that have high concentrations of jobs in certain occupations. As measured here, a location quotient shows the occupation’s share of an area’s employment relative to the national average.” 2

Further: “For example, a location quotient of 2.0 indicates that an occupation accounts for twice the share of employment in the area than it does nationally, and a location quotient of 0.5 indicates the area’s share of employment in the occupation is half the national share.”

This data is available by industry. I’ve gathered data for Aerospace Product and Parts Manufacturing (NAICS code 3364) for Sedgwick County and present it in a nearby chart.

First, note that the location quotient is large, 30 or more. This means the concentration of workers in this industry in Sedgwick county is over 30 times the concentration nationwide.

Second, the location quotient fell from 2007 through 2014. Since then, it has been steady.

Has the Wichita area diversified its economy? Based on these two measures, the answer is yes. That increased in diversity happened at the same time as a large decline in aviation-related employment, that decline being larger than the decline in all Wichita-area private-sector employment. That was not planned or desired. It was a result of worldwide trends. But since then, concentration in aviation-related employment has changed little, and shows signs of increasing concentration.

From General Aviation Manufacturers Association.


Notes

  1. Bureau of Labor Statistics. Quarterly Census of Employment and Wages. Available at https://www.bls.gov/cew/datatoc.htm.
  2. Bureau of Labor Statistics. Using Location Quotients to Analyze Occupational Data. Available at https://www.bls.gov/oes/highlight_location_quotients.htm.

Wichita jobs and employment, February 2019

For the Wichita metropolitan area in February 2019, jobs are up, the labor force is up, and the unemployment rate is down when compared to the same month one year ago. Seasonal data shows a return to job growth.

Data released today by the Bureau of Labor Statistics, part of the United States Department of Labor, shows an improving employment situation for the Wichita Metropolitan Statistical Area.

Total nonfarm employment rose from 295,400 last February to 300,700 this February. That’s an increase of 5,300 jobs, or 1.8 percent. (This data is not seasonally adjusted, so month-to-month comparisons are not valid.) For the same period, jobs in the nation grew by 1.7 percent.

The unemployment rate in February 2019 was 3.9 percent, down from 4.2 percent from one year ago.

Considering seasonally adjusted data from the household survey, the labor force rose by 1,115 persons (0.4 percent) in February 2019 from January 2019, the number of unemployed persons fell by 64 (-0.5 percent), and the unemployment rate fell from 3.9 percent to 3.8 percent. The number of employed persons not working on farms rose to 300,080 in February from 298,01 the prior month, an increase of 1,179 persons, or 0.4 percent.

Looking at the charts of changes in employment year-over-year, we see some months in the past year where Wichita outperformed the nation. That last happened in 2012.

Click charts for larger versions.

Kansas personal income

For 2018, the rate of personal income growth in Kansas was near the bottom of the states, although the fourth quarter was much better.

Today the Bureau of Economic Analysis, an agency of the United States Department of Commerce, released state personal income data for the fourth quarter of 2018, as well as preliminary state personal income for 2018.

For Kansas, personal income in 2018 was $146,028 million, an increase of 3.2 percent from 2017. For the nation, the increase was 4.5 percent. For Plains states, the increase was 3.9 percent. (For this data, Plains States are Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota.)

The increase in Kansas was forty-sixth best among the states.

Per capita personal income in Kansas was $50,155 in 2018, compared to $50,905 for Plains states and $53,712 for the nation.

Earnings in Kansas grew by $3,159 million in 2018, although farm earnings fell by $659 million.

For the fourth quarter of 2018, Kansas personal income grew at the annual rate of 5.7 percent, which was sixteenth-best among the states.

According to BEA, “Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses.”

Also from BEA: “Earnings by place of work is the sum of wages and salaries, supplements to wages and salaries, and proprietors’ income. BEA’s industry estimates are presented on an earnings by place of work basis.”

State personal income change, 2017 to 2018. Click for larger.

Updated: Kansas hotel guest tax collections

Kansas hotel guest tax collections presented in an interactive visualization.

Updated with data through January 2019.

Cities and counties in Kansas may levy a transient guest tax collection on hotel guests. It is sometimes called a bed tax or guest tax. The tax is collected as a percentage of total room revenue, not the number of rooms or the rate charged for rooms. While the Kansas Department of Revenue collects the tax, the proceeds are returned to the cities or counties, except for a two percent processing fee. In Wichita the rate is six percent.

Of note, while Wichita is the largest city in Kansas, Overland Park collects the most hotel guest tax. Of the largest markets in Kansas, Wichita is usually one of the lowest-growth cities.

Click here to access the visualization.

Example from the visualization. Click for larger.


Notes

Updated: Metro area employment and unemployment

An interactive visualization of labor force, employment, and unemployment rate for all metropolitan areas in the United States.

Updated with data through January 2019. Click here to learn more about the visualization and to access it.

Example from the visualization, showing Wichita compared to all U.S. metropolitan areas. Click for larger.

Kansas jobs, February 2019

Employment in Kansas shows a seasonal decline for February 2019.

Data released this week from the Bureau of Labor Statistics, part of the United States Department of Labor, shows a decline in jobs in Kansas for February 2019.

Using seasonally adjusted data, from January 2019 to February 2019, nonfarm employment in Kansas fell by 2,200, which is 0.2 percent. Over the year, the number of Kansas nonfarm jobs for February 2019 rose by 8,800 or 0.6 percent over last February. This is using seasonally adjusted data. The non-adjusted figure is nearly the same at 7,600.

Over the year (February 2018 to February 2019), the Kansas labor force is up by 0.4 percent, with only small changes over the past three months.

The number of unemployed persons rose from January 2019 to February 2019, rising by 301 persons, or 0.0 percent. The unemployment rate was 3.4 percent in February, down from 3.5 percent from one year ago, and the same as January.

Click charts and tables for larger versions.

The following chart shows the change in nonfarm jobs over the same month one year ago. For the past several years the line for Kansas has been below the line for the nation, meaning jobs were growing slower in Kansas. Recently, however, the gap between the lines is smaller.

Wichita and national jobs

Growth of employment in Wichita compared to the nation.

Overall, since 2001 — roughly the end of the Great Recession — Wichita has been gaining jobs, evidence being its trend line above zero in the nearby chart which shows the change in jobs over the same month one year ago. But the line has not always been above zero, indicating months where the Wichita metropolitan area had fewer jobs than the year before.

Since that time, Wichita’s growth rate has almost always been below the nation’s rate, and by no small amount. The state of Kansas has been lagging behind the nation, too.

Click for larger.

Wichita jobs and employment, January 2019

For the Wichita metropolitan area in January 2019, jobs are up, the labor force is up, and the unemployment rate is unchanged when compared to the same month one year ago. Seasonal data shows a slowdown in the rate of job growth and a rising unemployment rate.

Data released this week by the Bureau of Labor Statistics, part of the United States Department of Labor, shows a mostly improving employment situation for the Wichita Metropolitan Statistical Area, although some areas are not improving.

Click for larger.

Total nonfarm employment rose from 292,900 last January to 297,900 this January. That’s an increase of 5,000 jobs, or 1.7 percent. (This data is not seasonally adjusted, so month-to-month comparisons are not valid.) For the same period, jobs in the nation grew by 2.0 percent.

The unemployment rate in January 2019 was 4.1 percent, unchanged from one year ago.

Considering seasonally adjusted data from the household survey, the labor force rose by 739 persons (0.2 percent) in January 2019 from December 2018, the number of unemployed persons rose by 769 6.8 percent), and the unemployment rate rose from 3.6 percent to 3.9 percent. The number of employed persons not working on farms fell to 299,090 in January from 299,120 the prior month, a decrease of 30 persons, or 0.0 percent.

BLS is revising some data and presented this monthly release in a slightly different format than usual.

Click charts for larger versions.

Kansas jobs, January 2019

Employment in Kansas continues to grow, but slower than the nation.

Data released today from the Bureau of Labor Statistics, part of the United States Department of Labor, shows a mostly improving jobs picture for Kansas in January 2019.

Over the year (January 2018 to January 2019), the Kansas labor force is up by 0.7 percent, also rising slightly over the past three months.

The number of unemployed persons rose from December 2018 to January 2019, rising by 931 persons, or 1.9 percent. The unemployment rate was 3.4 percent in January, down from 3.5 percent from one year ago, but up by 0.1 percentage points from December. This is because the labor force grew by a larger proportion than did workers.

Click charts and tables for larger versions.

The number of Kansas nonfarm jobs for January 2019 rose by 14,300 or 1.0 percent over last January. This is using seasonally adjusted data. The non-adjusted figure is nearly the same at 14,000.

From December 2018 to January 2019, nonfarm employment in Kansas grew by 500, which is 0.04 percent.

Using seasonal data, nonfarm employment in Kansas grew by 0.85 percent from January 2018 to January 2019. Over the same period, job growth in the nation was 1.68 percent.

Kansas GDP

In the third quarter of 2018, the Kansas economy grew at the annual rate of 2.3 percent, down from 4.7 percent the previous quarter.

In the third quarter of 2018, the Kansas economy grew at the annual rate of 2.3 percent in real (inflation-adjusted) dollars, according to statistics released today by Bureau of Economic Analysis, a division of the United States Department of Commerce. GDP for the quarter was at the annual rate of $165,415 million.

Kansas real GDP growth through 2018-Q3. Click for larger.
The rate of 2.3 percent ranked thirty-eighth among the states. In the second quarter of 2018, Kansas GDP was seventh-best in the country.

Quarterly GDP growth for states can be volatile, as shown in the nearby chart.

For Kansas, industries that differed markedly from the nation include agriculture, durable goods manufacturing, real estate and rental and leasing, and government and government enterprises.

Sedgwick County job growth exceeds national rate

In the third quarter of 2018, Sedgwick County quarterly job growth exceeded the national rate for the first time in nearly ten years.

Data released today by the Bureau of Labor Statistics, part of the United States Department of Labor, show an improving jobs picture for Sedgwick County.

Data from the Bureau’s Quarterly Census of Employment and Wages (QCEW) program show that from September 2017 to September 2018, Sedgwick County gained 5,200 jobs, which is a rate of 1.9 percent, as calculated by BLS. For the nation, growth was 1.6 percent.

While the rate in Sedgwick County for the third quarter of 2018 exceeded the national rate, for the most recent four quarters the average rate for Sedgwick County was 0.85 percent, and 1.55 percent for the nation. This was the first quarter since 2009 in which Sedgwick County job growth outpaced the nation.

Average weekly wages in Sedgwick County increased by 3.8 percent over the year to $880. For the nation, wages rose by 3.3 percent to $1,055.

Click charts for larger versions.

Wichita jobs and employment, December 2018

For the Wichita metropolitan area in December 2018, jobs are up, the labor force is up, and the unemployment rate is down when compared to the same month one year ago. Seasonal data shows a slowdown in the rate of job growth and a rising unemployment rate.

Data released yesterday by the Bureau of Labor Statistics, part of the United States Department of Labor, shows a mostly improving employment situation for the Wichita Metropolitan Statistical Area.

Total nonfarm employment rose from 296,900 last December to 302,300 this December. That’s an increase of 5,800 jobs, or 2.0 percent. (This data is not seasonally adjusted, so month-to-month comparisons are not valid.) For the same period, jobs in the nation grew by 1.8 percent.

The unemployment rate in December 2018 was 3.4 percent, down from 3.5 percent one year ago.

Considering seasonally adjusted data from the household survey, the labor force rose by 596 persons (0.2 percent) in December 2018 from November 2018, the number of unemployed persons fell by 394 (3.6 percent), and the unemployment rate rose from 3.5 percent to 3.6 percent. The number of employed persons not working on farms rose to 299,120 in December from 298,918 the prior month, an increase of 202 persons, or 0.1 percent.

Click charts for larger versions.