Anderson.

• Author: Ritchey, Barry C.

Employment is the big story nationally. Many communities are faced with the difficult task of attracting more jobs. Anderson and Madison County are no exception. The competitive environment brings new demands for creativity and accommodation for communities like ours. The task is not only to attract new jobs but to find ways to retain those jobs that are already in the community.

Total employment in Madison County rose last year, as more Madison County residents were working in 2002 compared to 2001. That number rose from 61,620 to 61,920 (an increase of 300). However, many of those in the labor force found employment in other counties, as the number of jobs in Madison County fell from 45,174 in 2001 to 44,228 in 2002 (a loss of 946). This means more people are working, but fewer of them are finding their jobs in Madison County. Net commuting rose by 1,246.

With the increase in the number of people working, we might make the incorrect assumption that the unemployment rate fell. The unemployment rate in 2001 was 4.8 percent for Madison County, rising to 5.9 percent in 2002. The increase in the number of people working (300) was offset by an increase in the number of people who were unable to find employment (800). With the national economy performing in a rather sluggish fashion, we might have expected the unemployment rate in Madison County to rise above the national level. The 5.9 percent rate for Madison County was only 0.1 percent higher than the national rate for 2002 (5.8 percent). For 2003, the local unemployment rate is running slightly below the national figures. This outcome is somewhat surprising given our historically high rates of unemployment during recessions and national slowdowns (see Figure 1). The changing mix of local employment and the uniqueness of automotive labor contracts are the likely explanation for the variation away from these historic trends.

[FIGURE 1 OMITTED]

There were significant losses in the county in terms of manufacturing employment. Over the past ten years, manufacturing employment fell from 15,054 in 1992 to 8,928 in 2002. That averages to about 613 lost jobs per year. For 2002, the net loss was 691. In October 2003, over four hundred automotive workers accepted retirement from the local Anderson plants. It is obvious that this trend will continue. The only thing we do not know is the pace of the attrition. Fortunately, job losses have been spread over the past twenty years, helping to avoid the...