Labor Force, Employment, and Unemployment, Nebraska, 1995 to 2004
NEBRASKA ANNUAL ECONOMIC PERFORMANCE INDICATORS
Prepared by
Research Staff Nebraska Department of Economic Development Revised August 2008
Nebraska Annual Economic Performance Indicators by Research Staff
Nebraska Department of Economic Development Revised August 2008
List of Tables and Graphs I. Employment (Jobs) and Population Page 1 Table 1 -- Labor Force, Employment, and Unemployment, Nebraska, 1995 & 2000-07 Graph 1 -- Average Annual Unemployment Rates, Nebraska, the Plains States, & U.S. Graph 2 – Total Nonfarm Payroll Jobs Index, Nebraska, the Plains Region, and U.S. Graph 3 – Manufacturing Employment Index, Nebraska, the Plains Region, and U.S. Graph 4 – Goods-Producing Jobs as a Percentage of All Jobs, Nebraska, the Plains States, and U.S. Table 2 – Components of Population Change, Nebraska, 1980-90, 1990-00, & 2000-07 Graph 5 – Percent Change in Population, Nebraska and the U.S. Graph 6 – Median Age of Population, Nebraska, the Plains Region, and U.S. II. Income and Earnings Page 9 Graph 7 – Nebraska Per Capita Income as a Percent of U.S. and Plains Region PCI Graph 8 – Index of Average Annual Pay for All Unemployment Insurance Covered Employees, Nebraska, the Plains Region, and U.S. Graph 9 – Average Annual Pay Per Job, Metropolitan and Nonmetropolitan Nebraska III. Business Development Related Page 11 Graph 10 – New Manufacturing Industry Capital Investment Per Production Worker, Nebraska, the Plains Region, and U.S. Graph 11 – Number of Patents Per 100,000 Population, Nebraska, the Plains Region, and U.S. Graph 12 – Number of New Housing Units Authorized, Metro and Non-metro Counties, Nebraska Graph 13 – Value of New Metro and Non-metro Residential Housing, Nebraska Table 3 – Selected Characteristics of Nebraska Homeowners and Renters Graph 14 – Owner-Occupied Housing as a % of All Occupied Housing, Nebraska, the Plains States, and U.S. Graph 15 – Net Taxable Retail and Motor Vehicle Sales, Metro and Non-Metro Counties, Nebraska IV. Tourism Page 23 Graph 16 – Index Value of Travel-Generated Employment, Nebraska, the Plains States, and U.S. Graph 17 – Nebraska State and Total County Lodging Tax Revenues Graph 18 – Sum of Annual Daily Average Traffic Counts at 8 Rural Highway Locations, Nebraska V. State Government Graph 20 – Growth in Nebraska Tax Revenues, 2000-2007
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Nebraska Annual Economic Performance Indicators by
Research Staff Nebraska Department of Economic Development Revised August 2008
The Nebraska economic indicators included below are the most recent annual figures available in each category. The tables and graphs generally include ten years of numbers but the exact years included varies from table to table. A few explanatory/interpretive comments accompany the numbers and graphs.
I. Employment (Jobs) and Population Unemployment Rate: Historically, Nebraska has had low unemployment rates (Table 1 and Graph 2). However, in 2001, that rate increased as did the U.S. and Plains states’ averages. (Plains states include Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota.) By 2007, the upward trend in Nebraska and the Plains ended as the rate fell to 3.0% from 3.9% in 2005. Table 1. Labor Force, Employment, and Unemployment, Nebraska, 1995 & 2000 to 2008 2004
2005
2006
2007
2008
Labor Force 906,351 952,057 956,879 959,363 975,639 985,340 Employment 882,603 925,898 926,926 923,620 936,736 947,882 Unemployment 23,748 26,159 29,953 35,743 38,903 37,458 Rate 2.6 2.7 3.1 3.7 4.0 3.8 Source: U.S. Department of Labor, Bureau of Labor Statistics, February 2009
1995
984,705 946,534 38,171 3.9
974,476 945,270 29,206 3.0
983,438 953,769 29,669 3.0
995,131 961,766 33,365 3.4
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2001
2002
2003
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Graph 1. Average Annual Unemployment Rates, Nebraska and U.S.
Source: USDOL, Bureau of Labor Statistics, 2008. The Plains States include Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. The Census Bureau classifies those states as the West North Central Division.
Non-farm Payroll and Manufacturing Jobs: In the 1990s, nonfarm jobs grew in Nebraska, the Plains States, and the U.S. (Graph 2). Between 2001 and 2003, job
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growth was negative, then returned to positive numbers in Nebraska between 2004 and 2007. Manufacturing job growth in the state, the region, and the nation turned negative in 2000 (Graph 3). Even though Nebraska manufacturing employment has declined, index number calculations indicate manufacturing employment has been more stable in this state than in the Plains or U.S. The Nebraska goods-producing jobs index declined after 2000 but not as much as nationally (Graph 4). Interestingly, goods-producing jobs are a higher percentage of all jobs in the Plain states than in the nation. Graph 2. Total Nonfarm Payroll Jobs Index, Nebraska, Plains States, and U.S.
Source: USDOL, Bureau of Labor Statistics, 2007. The Plains States include Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. The Census Bureau classifies those states as the West North Central Division.
Graph 3. Manufacturing Employment Index, Nebraska, the Plains States, & U.S.
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Source: USDOL, Bureau of Labor Statistics, 2008
Graph 4. Goods-Producing Jobs as a Percentage of Total Jobs, Nebraska, the Plains States, and U.S.
Source: USDOL, Bureau of Labor Statistics, 2008. Goods-producing employment includes natural resources and mining, construction, and manufacturing jobs. The other all-encompassing category is service-producing jobs.
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Population Change: The U.S. Census Bureau estimated the 2007 Nebraska population at 1,774,571. Over the last 35 years, the Nebraska population growth rate has been less than the national rate (Graph 5). From census to census, the natural change, births exceeding deaths, is a consistent contributor to Nebraska population growth. But, between 1990 and 2000, migration particularly international migration contributed significantly to the state’s population growth. Moreover between 2000 and 2005, ”population growth in the Midwest resulted entirely from international migration, because . . . (the) natural increase was completely offset by domestic outmigration of mostly young adults” (USDA, ERS, EIB #18, August 2006). That was not totally the case in Nebraska, but international migration has increasingly contributed to the state’s population growth. The median age of the populations in Nebraska, the region, and the nation have all increased about equally since 1970 (Graph 6). Graph 5. Percent Change in Population, Nebraska, the Plains States, and U.S.
Source: USDOC, Bureau of the Census, 2008
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Graph 6. Median Age of the Population, Nebraska, the Plains States, and U.S.
Source: USDOC, Bureau of the Census, 2008
Table 2. Components of Population Change, Nebraska, 1980-90, 1990-00, and 2000-07 Deaths
Natural Change
Net Migra.
Net Inter. Migra.
Net Domestic Migra.
109,569
77,995
-9,319
27,398
-36,717
235,210
150,599
84,611
48,234
30,276
-7,386
255,191
147,680
107,511
-98,947
Period
End-Year Pop.
Pop. Change
Births
2000-07
1,774,571
63,306
187,564
1990-00
1,711,263
132,846
1980-90
1,578,417
8,592
Residual
-10,826
Source: U.S. Bureau of the Census, 2004 Census and estimates, 2008
II. Income and Earnings Per Capita Personal Income: Per capita income is total income divided by total population. Since not everyone has an income, PCI is more a measure of economic well-being than of an area’s average income. In 2006, Nebraska’s preliminary PCI was $34,397, which ranked 23th in the nation (Graph7). Nebraska PCI has historically been six to eight percent points below the national average and a point or two below the Plains’ states average. In 2006, Nebraska PCI was 94.8 percent of the national average and a 98.8 percent of the Plains states’ average.
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Graph 7. Nebraska Per Capita Income as a Percent of U.S. and Plains States PCI
Source: USDOC, Bureau of Economic Analysis, 2008
Average Annual Pay and Wages: As with PCI, the average annual pay of Nebraska private sector employees has historically been less than the U.S. average. In 2006, the average annual pay for all unemployment insurance covered private sector employees was $33,411 in Nebraska, $34,865 in the Plains, and $42,411 in the nation. Compared to its 2000 value, Nebraska’s average annual pay index continued to exceed the national index value (Graph 9).
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Graph 8. Index of Average Annual Pay for All Unemployment Insurance Covered Employees, Nebraska, the Plains States, and the U.S.
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Graph 9. Index of Average Annual Pay for All Unemployment Insurance Covered Employees, Nebraska, the Plains States, and the U.S.
Within Nebraska, the average annual wage per job has been considerably higher in the state’s metropolitan counties than in the non-metropolitan counties. (Note: the average annual pay per employee numbers came from the U.S. Department of Labor and the average annual pay per job numbers came from the U.S. Department of Commerce.) In 2006, the estimated average annual pay per job was $37,367 in metropolitan Nebraska and $28,037 in non-metropolitan counties. Nonetheless, nonmetro wages increased at about the same rate as metro wages (Graph 10).
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Graph 10. Average Wage/Job, Metropolitan & Non-metropolitan Nebraska
Source: USDOC, Bureau of Economic Analysis, 2008
III. Business Development-Related New Capital Investment and Invention: Nebraska manufacturers reported making $860,099,000 in new capital investments in 2006. Manufacturing capital investment per production worker allows a comparison of Nebraska investment with U.S. totals and broadly indicates manufacturers’ substitution of capital for labor. Through 2002, Nebraska’s investment per worker was well below the national average; in 2003, the Nebraska per worker investment leapt ahead of the Plains and U.S. averages (Graph 11). That surge was temporary as Nebraska investment per worker declined precipitously in 2004. One cause of Nebraska’s comparatively low per worker capital investment in the past may have been the state’s comparatively slow and low development of new products. Compared to the number issued per 100,000 persons in the other Plains states and the U.S., the number of new patents issued in Nebraska has been low – 11.4 in 2007 in Nebraska compared to 26.4 nationally (Graph 12).
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Graph 11. New Manufacturing Industry Capital Investment Per Production Worker, Nebraska, the Plains States, and U.S.
Source: USDOC, Bureau of the Census, 2008
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Graph 12. Number of Patents Per 100,000 Population, Nebraska, the Plains States, and U.S.
Source: U.S. Patent and Trademark Office, Patent Counts by Country/State, March 2008
New Residential Construction and Homeownership: Two strengths in Nebraska’s economy have been new residential construction activity and increases in home ownership. Since 2001, about three times as many new residential permits were issued in the metro counties than in the non-metro counties, but the annual growth rates for the two county types have not always been significantly different – e.g., between 2006 and 2007, the number of metro permits decreased and the number of non-metro permits increased slightly (Graph 13). Home construction has been strong force in the Nebraska economy but weakened in 2005, somewhat anticipating the subprime mortgage crisis.
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Graph 13. Number of New Housing Units Authorized, Selected Metro and NonMetro Counties, Nebraska
Source: Compiled by NDED from USDOC, Bureau of the Census, numbers released in 2008. For this table, metro counties included Cass, Dakota, Douglas, Lancaster, Sarpy, and Washington.
Graph 14. Values of New Residential Housing, Selected Metro and Non-Metro Counties, Nebraska
Source: Compiled by NDED from USDOC, Bureau of the Census, numbers released in 2007. For this table, metro counties included Cass, Dakota, Douglas, Lancaster, Sarpy, and Washington.
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One reason for the increasing investment in residential housing may have been the strong desire for homeownership in Nebraska. The percentage of all occupied housing in the state that is owner-occupied has and continues to exceed the national average (Graph 15).
Graph 15. Owner-Occupied Housing as a % of All Occupied Housing, Nebraska and the U.S.
Sources: U.S. Department of Commerce, Bureau of the Census, 2000 Census, May 2001, and 2006 American Community Survey, 2008
Taxable Retail Sales: Changes in retail sales are generally a good indicator of economic activity and Nebraska taxable retail and motor vehicle sales increased from $25.0 billion in 2006 to $26.2 billion in 2007, or by 5.0 percent (Graph 16). That suggests the Nebraska economy was growing. However, some of that growth resulted from an increase in the number and type of the goods and services subject to the sales tax. Moreover, between 2003 and 2007, although sales tax collections increased 11.1 percent, part of that increase resulted from the sales tax rate going from 5.0 percent to 5.5 percent. In 2007, metro county taxable and motor vehicle sales increased 4.8 percent, while non-metro sales increased 5.4 percent.
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Graph 16. Net Taxable Retail and Motor Vehicle Sales, Metro and Non-Metro Counties, Nebraska*
Source: Nebraska Department of Revenue, Annual Report, 2008 *Metro counties are: Cass, Douglas, Lancaster, Sarpy, Saunders, Seward, and Washington. Taxable sales include retail and motor vehicle sales.
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IV. Tourism Travel-Related Employment: Travel-related employment in Nebraska increased from an estimated 32,200 jobs in 1994 to 42,100 in 2003. Indexed employment numbers suggest the state kept pace with other Plains states with that increase, but that travel-generated employment growth increased at a faster pace nationally. So, Nebraska is not out-of-line with the Plains states in the growth in travel-related employment. Graph 17. Index Value of Travel-Generated Employment, Nebraska, the Plains States, & U.S.
Source: Smith Travel Research, Lodging Outlook, February 2006
Lodging Taxes: An increasing number of Nebraska counties began collecting a sales tax on lodging after 1995. Local governments use those revenues to promote tourism and to develop attractions. So, although the steady growth in state collections reflected the growth in Nebraska motel and hotel room numbers, occupancy, and rates, the growth in county collections may have reflected changes in those variables as well but also the growth in the number of counties collecting a lodging tax.
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Graph 18. Nebraska State and Total County Lodging Tax Revenues
Source: Nebraska Department of Revenue, 2009
Traffic Counts: Finally, interstate and highway traffic volumes rose steadily in Nebraska after 1995 (see http://www.neded.org/files/research/stathand/hsect12.htm) . Not all of that increase resulted from an increase in tourism, but most tourists come to Nebraska via the automobile, so traffic counts are a partial indicator of increasing or decreasing tourism activity in the state. The dip in rural non-interstate traffic in 2006 and 2007 suggests that higher gas prices may have curtailed traffic. Note: The level of interstate traffic has remained constant for the past several years.
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Graph 19 – Sum of Annual Daily Average Traffic Counts at 8 Rural Highway Locations, Nebraska
The eight rural highway locations are: (1) I-80, east of Overton; (2) I-80 west of Seward; (3) I-80, east of Chappell; (4) US-77 and 275, north of Fremont; (5) US-75, south of Union [jct w/ US-34]; (6) US-20, east of Chadron; (7) US-6 and 34, east of Holbrook [west of Arapahoe]; and (8) US-81, south of Geneva. Source: Nebraska Department of Roads, Automatic Traffic Recorder Data, 2005.
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V. State Government Government represents another component of the economy. The ease and facility with which government raises tax revenues is an indicator of the private sector’s economic performance. Between 2000 and 2007, state general sales tax revenue increased 44.4 percent; individual income taxes increased 40.6 percent; and corporate income taxes increased 52.1 percent (Graph 20). However, corporate income taxes represented only 5.2 percent of total tax revenues (compared to 36.5 for general sales taxes and 40.6 percent for personnel income taxes). So, tax revenues seem to increase slightly faster than the inflation from year-to-year, suggesting a stable, growing economy. Graph 20
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Prepared by
Research Staff Nebraska Department of Economic Development Revised August 2008
Nebraska Annual Economic Performance Indicators by Research Staff
Nebraska Department of Economic Development Revised August 2008
List of Tables and Graphs I. Employment (Jobs) and Population Page 1 Table 1 -- Labor Force, Employment, and Unemployment, Nebraska, 1995 & 2000-07 Graph 1 -- Average Annual Unemployment Rates, Nebraska, the Plains States, & U.S. Graph 2 – Total Nonfarm Payroll Jobs Index, Nebraska, the Plains Region, and U.S. Graph 3 – Manufacturing Employment Index, Nebraska, the Plains Region, and U.S. Graph 4 – Goods-Producing Jobs as a Percentage of All Jobs, Nebraska, the Plains States, and U.S. Table 2 – Components of Population Change, Nebraska, 1980-90, 1990-00, & 2000-07 Graph 5 – Percent Change in Population, Nebraska and the U.S. Graph 6 – Median Age of Population, Nebraska, the Plains Region, and U.S. II. Income and Earnings Page 9 Graph 7 – Nebraska Per Capita Income as a Percent of U.S. and Plains Region PCI Graph 8 – Index of Average Annual Pay for All Unemployment Insurance Covered Employees, Nebraska, the Plains Region, and U.S. Graph 9 – Average Annual Pay Per Job, Metropolitan and Nonmetropolitan Nebraska III. Business Development Related Page 11 Graph 10 – New Manufacturing Industry Capital Investment Per Production Worker, Nebraska, the Plains Region, and U.S. Graph 11 – Number of Patents Per 100,000 Population, Nebraska, the Plains Region, and U.S. Graph 12 – Number of New Housing Units Authorized, Metro and Non-metro Counties, Nebraska Graph 13 – Value of New Metro and Non-metro Residential Housing, Nebraska Table 3 – Selected Characteristics of Nebraska Homeowners and Renters Graph 14 – Owner-Occupied Housing as a % of All Occupied Housing, Nebraska, the Plains States, and U.S. Graph 15 – Net Taxable Retail and Motor Vehicle Sales, Metro and Non-Metro Counties, Nebraska IV. Tourism Page 23 Graph 16 – Index Value of Travel-Generated Employment, Nebraska, the Plains States, and U.S. Graph 17 – Nebraska State and Total County Lodging Tax Revenues Graph 18 – Sum of Annual Daily Average Traffic Counts at 8 Rural Highway Locations, Nebraska V. State Government Graph 20 – Growth in Nebraska Tax Revenues, 2000-2007
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Nebraska Annual Economic Performance Indicators by
Research Staff Nebraska Department of Economic Development Revised August 2008
The Nebraska economic indicators included below are the most recent annual figures available in each category. The tables and graphs generally include ten years of numbers but the exact years included varies from table to table. A few explanatory/interpretive comments accompany the numbers and graphs.
I. Employment (Jobs) and Population Unemployment Rate: Historically, Nebraska has had low unemployment rates (Table 1 and Graph 2). However, in 2001, that rate increased as did the U.S. and Plains states’ averages. (Plains states include Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota.) By 2007, the upward trend in Nebraska and the Plains ended as the rate fell to 3.0% from 3.9% in 2005. Table 1. Labor Force, Employment, and Unemployment, Nebraska, 1995 & 2000 to 2008 2004
2005
2006
2007
2008
Labor Force 906,351 952,057 956,879 959,363 975,639 985,340 Employment 882,603 925,898 926,926 923,620 936,736 947,882 Unemployment 23,748 26,159 29,953 35,743 38,903 37,458 Rate 2.6 2.7 3.1 3.7 4.0 3.8 Source: U.S. Department of Labor, Bureau of Labor Statistics, February 2009
1995
984,705 946,534 38,171 3.9
974,476 945,270 29,206 3.0
983,438 953,769 29,669 3.0
995,131 961,766 33,365 3.4
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2001
2002
2003
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Graph 1. Average Annual Unemployment Rates, Nebraska and U.S.
Source: USDOL, Bureau of Labor Statistics, 2008. The Plains States include Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. The Census Bureau classifies those states as the West North Central Division.
Non-farm Payroll and Manufacturing Jobs: In the 1990s, nonfarm jobs grew in Nebraska, the Plains States, and the U.S. (Graph 2). Between 2001 and 2003, job
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growth was negative, then returned to positive numbers in Nebraska between 2004 and 2007. Manufacturing job growth in the state, the region, and the nation turned negative in 2000 (Graph 3). Even though Nebraska manufacturing employment has declined, index number calculations indicate manufacturing employment has been more stable in this state than in the Plains or U.S. The Nebraska goods-producing jobs index declined after 2000 but not as much as nationally (Graph 4). Interestingly, goods-producing jobs are a higher percentage of all jobs in the Plain states than in the nation. Graph 2. Total Nonfarm Payroll Jobs Index, Nebraska, Plains States, and U.S.
Source: USDOL, Bureau of Labor Statistics, 2007. The Plains States include Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. The Census Bureau classifies those states as the West North Central Division.
Graph 3. Manufacturing Employment Index, Nebraska, the Plains States, & U.S.
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Source: USDOL, Bureau of Labor Statistics, 2008
Graph 4. Goods-Producing Jobs as a Percentage of Total Jobs, Nebraska, the Plains States, and U.S.
Source: USDOL, Bureau of Labor Statistics, 2008. Goods-producing employment includes natural resources and mining, construction, and manufacturing jobs. The other all-encompassing category is service-producing jobs.
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Population Change: The U.S. Census Bureau estimated the 2007 Nebraska population at 1,774,571. Over the last 35 years, the Nebraska population growth rate has been less than the national rate (Graph 5). From census to census, the natural change, births exceeding deaths, is a consistent contributor to Nebraska population growth. But, between 1990 and 2000, migration particularly international migration contributed significantly to the state’s population growth. Moreover between 2000 and 2005, ”population growth in the Midwest resulted entirely from international migration, because . . . (the) natural increase was completely offset by domestic outmigration of mostly young adults” (USDA, ERS, EIB #18, August 2006). That was not totally the case in Nebraska, but international migration has increasingly contributed to the state’s population growth. The median age of the populations in Nebraska, the region, and the nation have all increased about equally since 1970 (Graph 6). Graph 5. Percent Change in Population, Nebraska, the Plains States, and U.S.
Source: USDOC, Bureau of the Census, 2008
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Graph 6. Median Age of the Population, Nebraska, the Plains States, and U.S.
Source: USDOC, Bureau of the Census, 2008
Table 2. Components of Population Change, Nebraska, 1980-90, 1990-00, and 2000-07 Deaths
Natural Change
Net Migra.
Net Inter. Migra.
Net Domestic Migra.
109,569
77,995
-9,319
27,398
-36,717
235,210
150,599
84,611
48,234
30,276
-7,386
255,191
147,680
107,511
-98,947
Period
End-Year Pop.
Pop. Change
Births
2000-07
1,774,571
63,306
187,564
1990-00
1,711,263
132,846
1980-90
1,578,417
8,592
Residual
-10,826
Source: U.S. Bureau of the Census, 2004 Census and estimates, 2008
II. Income and Earnings Per Capita Personal Income: Per capita income is total income divided by total population. Since not everyone has an income, PCI is more a measure of economic well-being than of an area’s average income. In 2006, Nebraska’s preliminary PCI was $34,397, which ranked 23th in the nation (Graph7). Nebraska PCI has historically been six to eight percent points below the national average and a point or two below the Plains’ states average. In 2006, Nebraska PCI was 94.8 percent of the national average and a 98.8 percent of the Plains states’ average.
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Graph 7. Nebraska Per Capita Income as a Percent of U.S. and Plains States PCI
Source: USDOC, Bureau of Economic Analysis, 2008
Average Annual Pay and Wages: As with PCI, the average annual pay of Nebraska private sector employees has historically been less than the U.S. average. In 2006, the average annual pay for all unemployment insurance covered private sector employees was $33,411 in Nebraska, $34,865 in the Plains, and $42,411 in the nation. Compared to its 2000 value, Nebraska’s average annual pay index continued to exceed the national index value (Graph 9).
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Graph 8. Index of Average Annual Pay for All Unemployment Insurance Covered Employees, Nebraska, the Plains States, and the U.S.
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Graph 9. Index of Average Annual Pay for All Unemployment Insurance Covered Employees, Nebraska, the Plains States, and the U.S.
Within Nebraska, the average annual wage per job has been considerably higher in the state’s metropolitan counties than in the non-metropolitan counties. (Note: the average annual pay per employee numbers came from the U.S. Department of Labor and the average annual pay per job numbers came from the U.S. Department of Commerce.) In 2006, the estimated average annual pay per job was $37,367 in metropolitan Nebraska and $28,037 in non-metropolitan counties. Nonetheless, nonmetro wages increased at about the same rate as metro wages (Graph 10).
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Graph 10. Average Wage/Job, Metropolitan & Non-metropolitan Nebraska
Source: USDOC, Bureau of Economic Analysis, 2008
III. Business Development-Related New Capital Investment and Invention: Nebraska manufacturers reported making $860,099,000 in new capital investments in 2006. Manufacturing capital investment per production worker allows a comparison of Nebraska investment with U.S. totals and broadly indicates manufacturers’ substitution of capital for labor. Through 2002, Nebraska’s investment per worker was well below the national average; in 2003, the Nebraska per worker investment leapt ahead of the Plains and U.S. averages (Graph 11). That surge was temporary as Nebraska investment per worker declined precipitously in 2004. One cause of Nebraska’s comparatively low per worker capital investment in the past may have been the state’s comparatively slow and low development of new products. Compared to the number issued per 100,000 persons in the other Plains states and the U.S., the number of new patents issued in Nebraska has been low – 11.4 in 2007 in Nebraska compared to 26.4 nationally (Graph 12).
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Graph 11. New Manufacturing Industry Capital Investment Per Production Worker, Nebraska, the Plains States, and U.S.
Source: USDOC, Bureau of the Census, 2008
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Graph 12. Number of Patents Per 100,000 Population, Nebraska, the Plains States, and U.S.
Source: U.S. Patent and Trademark Office, Patent Counts by Country/State, March 2008
New Residential Construction and Homeownership: Two strengths in Nebraska’s economy have been new residential construction activity and increases in home ownership. Since 2001, about three times as many new residential permits were issued in the metro counties than in the non-metro counties, but the annual growth rates for the two county types have not always been significantly different – e.g., between 2006 and 2007, the number of metro permits decreased and the number of non-metro permits increased slightly (Graph 13). Home construction has been strong force in the Nebraska economy but weakened in 2005, somewhat anticipating the subprime mortgage crisis.
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Graph 13. Number of New Housing Units Authorized, Selected Metro and NonMetro Counties, Nebraska
Source: Compiled by NDED from USDOC, Bureau of the Census, numbers released in 2008. For this table, metro counties included Cass, Dakota, Douglas, Lancaster, Sarpy, and Washington.
Graph 14. Values of New Residential Housing, Selected Metro and Non-Metro Counties, Nebraska
Source: Compiled by NDED from USDOC, Bureau of the Census, numbers released in 2007. For this table, metro counties included Cass, Dakota, Douglas, Lancaster, Sarpy, and Washington.
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One reason for the increasing investment in residential housing may have been the strong desire for homeownership in Nebraska. The percentage of all occupied housing in the state that is owner-occupied has and continues to exceed the national average (Graph 15).
Graph 15. Owner-Occupied Housing as a % of All Occupied Housing, Nebraska and the U.S.
Sources: U.S. Department of Commerce, Bureau of the Census, 2000 Census, May 2001, and 2006 American Community Survey, 2008
Taxable Retail Sales: Changes in retail sales are generally a good indicator of economic activity and Nebraska taxable retail and motor vehicle sales increased from $25.0 billion in 2006 to $26.2 billion in 2007, or by 5.0 percent (Graph 16). That suggests the Nebraska economy was growing. However, some of that growth resulted from an increase in the number and type of the goods and services subject to the sales tax. Moreover, between 2003 and 2007, although sales tax collections increased 11.1 percent, part of that increase resulted from the sales tax rate going from 5.0 percent to 5.5 percent. In 2007, metro county taxable and motor vehicle sales increased 4.8 percent, while non-metro sales increased 5.4 percent.
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Graph 16. Net Taxable Retail and Motor Vehicle Sales, Metro and Non-Metro Counties, Nebraska*
Source: Nebraska Department of Revenue, Annual Report, 2008 *Metro counties are: Cass, Douglas, Lancaster, Sarpy, Saunders, Seward, and Washington. Taxable sales include retail and motor vehicle sales.
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IV. Tourism Travel-Related Employment: Travel-related employment in Nebraska increased from an estimated 32,200 jobs in 1994 to 42,100 in 2003. Indexed employment numbers suggest the state kept pace with other Plains states with that increase, but that travel-generated employment growth increased at a faster pace nationally. So, Nebraska is not out-of-line with the Plains states in the growth in travel-related employment. Graph 17. Index Value of Travel-Generated Employment, Nebraska, the Plains States, & U.S.
Source: Smith Travel Research, Lodging Outlook, February 2006
Lodging Taxes: An increasing number of Nebraska counties began collecting a sales tax on lodging after 1995. Local governments use those revenues to promote tourism and to develop attractions. So, although the steady growth in state collections reflected the growth in Nebraska motel and hotel room numbers, occupancy, and rates, the growth in county collections may have reflected changes in those variables as well but also the growth in the number of counties collecting a lodging tax.
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Graph 18. Nebraska State and Total County Lodging Tax Revenues
Source: Nebraska Department of Revenue, 2009
Traffic Counts: Finally, interstate and highway traffic volumes rose steadily in Nebraska after 1995 (see http://www.neded.org/files/research/stathand/hsect12.htm) . Not all of that increase resulted from an increase in tourism, but most tourists come to Nebraska via the automobile, so traffic counts are a partial indicator of increasing or decreasing tourism activity in the state. The dip in rural non-interstate traffic in 2006 and 2007 suggests that higher gas prices may have curtailed traffic. Note: The level of interstate traffic has remained constant for the past several years.
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Graph 19 – Sum of Annual Daily Average Traffic Counts at 8 Rural Highway Locations, Nebraska
The eight rural highway locations are: (1) I-80, east of Overton; (2) I-80 west of Seward; (3) I-80, east of Chappell; (4) US-77 and 275, north of Fremont; (5) US-75, south of Union [jct w/ US-34]; (6) US-20, east of Chadron; (7) US-6 and 34, east of Holbrook [west of Arapahoe]; and (8) US-81, south of Geneva. Source: Nebraska Department of Roads, Automatic Traffic Recorder Data, 2005.
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V. State Government Government represents another component of the economy. The ease and facility with which government raises tax revenues is an indicator of the private sector’s economic performance. Between 2000 and 2007, state general sales tax revenue increased 44.4 percent; individual income taxes increased 40.6 percent; and corporate income taxes increased 52.1 percent (Graph 20). However, corporate income taxes represented only 5.2 percent of total tax revenues (compared to 36.5 for general sales taxes and 40.6 percent for personnel income taxes). So, tax revenues seem to increase slightly faster than the inflation from year-to-year, suggesting a stable, growing economy. Graph 20
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