Volume 7, No.4
Winter 2001

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Metro East: 1965 to Today

Occupations of the Future

Some Companies Find Ways to Limit Layoffs

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Metro East: 1965 to Today
By: Dennis Hoffman

Dramatic changes have taken place in the labor force composition of the Illinois Section of the St. Louis Metropolitan Statistical Area. During the last 35 years, in keeping with the trend throughout the nation, the labor market in the Metro East area has been transformed from a largely goods producing manufacturing base to a service and trade dominated economy. The number of manufacturing jobs declined by nearly half, as the number of industrial workers dropped from 52,000 in 1965 to 27,400 in 2000. During the same time period, however, trade employment more than doubled and service occupations tripled. This long-term work force trend presents questions about future employment opportunities and validates the complexity of a constantly changing labor market. Thirty-five years ago the nonagricultural wage and salary employment in the Illinois portion of the St. Louis region totaled 145,650. By the turn of the century, this number had expanded to 206,425.

About Metro East

The Illinois Section of the St. Louis Metropolitan Statistical Area, better known as the Metro East, is comprised of five counties: Clinton, Jersey*, Madison, Monroe and St. Clair. Approximately 600,000 citizens reside in the Metro East—with many economic, social and political ties to the Missouri side of the river. Madison and St. Clair are the major counties that hug the Mississippi River across from the Gateway Arch in St. Louis. Easy commuting access is available throughout the metropolitan region via interstates 64, 55, 70, 255, and 270 and the new extended MetroLink through St. Clair County (see map). Alton, Belleville, East St. Louis and Granite City are the four largest communities with populations of more than 30,000. Other cities with sizable populations include Collinsville, Edwardsville, O’Fallon, Cahokia, Godfrey and Fairview Heights.

Employment Developments

From 1965 to 2000, total nonagricultural wage and salary employment in the Metro East area increased by 41.7 percent (see chart). Although employment opportunities steadily multiplied, changes developed in the types of jobs available and in the industrial distribution of the labor market. The most significant reorganization occurred as past growth in manufacturing industries was replaced by expansions in the trade and service sectors. During the past 35 years, sizable workforce gains also occurred in construction, finance-insurance-real estate and government.

Another contributor to the area’s economic development is the building boom which has prevailed throughout the five-county region during the 1990s. In addition to the increased construction of homes and commercial buildings, numerous major projects, such as MetroLink, MidAmerica Airport and school construction projects, dominated the region. Especially from 1965 to 1990, the public’s demand for more options in financial products (for instance, different types of loans and checking accounts) and greater customer services enabled steady payroll advances in finance-insurance-real estate. And from 1965 to 1975, the development and expansion of social programs caused local government payrolls to grow. While the transportation industry has experienced constant growth the last 15 years, employment in the coal mining industry has steadily declined since the mid-1980s.

Trade-Services Soar

The public’s persistent demand for more products and services fueled employment growth in retail trade, wholesale trade, professional services and nonprofessional services. The share of jobs in the trade industries increased from 17.1 percent in 1965 to 25.5 percent in 2000. Trade payrolls more than doubled during the past 35 years and totaled over 52,000 last year. Service businesses tripled since 1965 and added nearly 40,000 workers to the payrolls. The tremendous explosion in trade and service firm expansion is evidenced by traveling the interstate system. Major commercial areas have developed and continue to be proposed near interstate communities. In the early 1990s, two river boat casinos—which added approximately 2,000 workers to the service industrial sector—were established.

Construction Jobs Up

During the last ten years, the building trade industry increased payrolls by more than 3,000. Many large and small commercial developments have sprung up throughout the region. In the past ten years, significant major building projects were in progress, such as the MetroLink expansion and MidAmerica Airport. In addition, the establishment of numerous new housing developments is evident throughout the area. The substantial expansion and improvement of the roadway system also continued during the past decade. Also, currently providing an impact and increased activity in the construction trades, are available state funds for new school buildings and additions.

Manufacturing Jobs Down

The significant loss of manufacturing jobs in the Illinois Section of the St. Louis Metropolitan Statistical Area reflects the nationwide trend. Manufacturing employment declined by more than 24,600 or 47.3 percent since 1965. Employment at durable goods factories was reduced by 12,650 and at nondurable goods plants by nearly 12,000. Although this disturbing trend slowed during the past decade, manufacturing employment continues to decline gradually. Manufacturing jobs comprised 35.7 percent of total non-farm jobs in 1965, but were only 13.3 percent by the turn of the century. Automation, computerization and aging factories have all contributed to the changing industrial mix. This general loss of high paid jobs with benefits continues to be troubling to the general work force.

During the past thirty-five years, tremendous labor force growth has taken place throughout the Metro East. In addition, the industrial and occupational composition of the workforce has been constantly evolving. With the accelerated developments in technology and increased consumer demands, continued rapid labor market changes and expansions are anticipated. This five-county region, offering employment diversity and growth along with an excellent transportation system, has entered the 21st century with a forward-looking labor market that continues to gain strength.

* In 1965, the Metro East Area did not include Jersey County. Its nonfarm wage and salary employment totaled 3,000 in 1965.