Volume 3,
No.4
Winter 1997
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NUMBERS TELL THE
STORY
By: Mike Vessell
A lot of attention has been focused on the nose dive that the coal mining industry has taken over the past ten years, but another problem that is facing the small town economies of southern Illinois is the lack of diversity in their industrial composition. In some towns, the majority of jobs are found in one or two industries. Having all their "eggs in one basket" can cause any number of small communities in deep southeastern Illinois to change almost overnight from one that is thriving to one with high unemployment, sometimes with the closing of only one business.
Just as balance is important to a stock portfolio or to a sports team, it also is important to a sound economy. The chart below graphically depicts the uneven distribution of employment in seven towns in the southeastern region of Illinois. The data show the industrial imbalance in these small towns, a reflection of the conditions existing throughout the region. The numbers really do tell the story.
Is imbalance always bad? No. For example, if the majority of jobs are found in the public sector (government), then the problem isn't as potentially dangerous for a community's economy. Why? Private sector industries such as mines, factories, and retail stores are more likely to close than a publicly-owned state university or prison. Look at Chester, Carbondale, and Vienna: 50 percent or more of their employment is at state educational or correctional facilities, which are not likely to close or relocate. However, most employment in Albion, Fairfield, Olney, and Pinkneyville is found in the more vulnerable durable goods component of the manufacturing industry. If 30 or 40 percent of a community's employment is in one private sector firm, the situation is critical. And with today's business climate of corporate mergers, downsizing, and relocating, virtually every private sector job is at risk.
What can be done? For starters, local officials, planners, and chambers of commerce need to take a realistic look at their communities and work to diversify those economies. To get a clear picture of what industries are prevalent in your community and how jobs are distributed among those industries, contact your local Labor Market Economist (LME). A list of LMEs appear on our Internet homepage. If you don't have a modem, call the Publications Unit 312-793-9349 and request a copy of Your Guide to LMI in Illinois. With this publication, you can match any county with the Labor Market Economist who serves that county. All our LME's are there to help you with your planning needs.