Office-occupying employment has now had annual losses in three consecutive months. The most recent loss of 2,900 jobs was the largest since 2012. Government remained the laggard in the category, contracting by 4,000 jobs from the prior year. Employment in the sector is down 24 percent since its peak in 2010.
LCAR Unit 19 - Financing the Real Estate Transaction - 14th Edition Revised
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St Louis Office Employment Update
1. 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1,220,000
1,240,000
1,260,000
1,280,000
1,300,000
1,320,000
1,340,000
1,360,000
1,380,000
1,400,000
1,420,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total Employment
Unemployment
Office real estate implications
Office employment trends (12-month change)
St. Louis
Job growth/loss by sector (12-month change)
St. Louis
Office-occupying employment has now had annual losses in three
consecutive months. The most recent loss of 2,900 jobs was the largest since
2012. Government remained the laggard in the category, contracting by 4,000
jobs from the prior year. Employment in the sector is down 24 percent since its
peak in 2010.
The most notable news this month was the announcement from World Wide
Technology (WWT) to build a new 200,000 square foot corporate
headquarters in Westport. WWT joins other St. Louis-based companies in
owning real estate. Most recently RGA completed its new corporate campus in
Chesterfield. The company plans on adding 1,000 jobs locally, a 25 percent
increase from its current level. There are also plans for a new building on the
Delmar Gardens campus in West County; but it will require some pre-leasing
from office tenants before breaking ground.
Total jobs vs. Unemployment rate
St. Louis
Sources: JLL Research, Bureau of Labor Statistics
Peak: 1,385,303 jobs
3.1%
Office employment update
Metro St. Louis . May 2015
5.9%St. Louis unemployment
1.1%St. Louis 12-month job growth
5.4%U.S. unemployment
2.2%U.S. 12-month job growth
• St. Louis metro employment is growing faster than its labor force. While
this month saw 1,915 more job-seekers than last year, it also saw 21,913
more people employed. The unemployment rate is 5.9%, which is 140
basis points better than last year.
• Non-farm employment increased by 14,600 over last year—the largest
annual gain in the past 12 months. 6,200 of these jobs are in Education
and Health Services, a sector which has had annual gains 9 months in a
row.
• Mining, Logging, and Construction has begun its annual upcycle after
hitting a low point of 50,000 jobs at the beginning of the year. This year’s
cycle is not as strong as last year’s, with year-over-year losses for the
past 4 months.
• Total U.S. nonfarm employment increased by 223,000 jobs in April, a
healthy uptick after a disappointing March where job gains totaled just
85,000. The strong April results will help lower concerns among
economists and Wall Street of a hiring slowdown.
• U.S. unemployment decreased 10 basis points to 5.4 percent, its lowest
mark since May 2008. Wages also continued to trend in the right
direction in April, increasing 2.2 percent year-over-year. (10)
(5)
0
5
10
15
2010
2011
2012
2013
2014
2015
Financial Activities Professional and Business Services Information Government
(4,000)
(800)
(100)
100
500
700
3,000
3,100
5,900
6,200
(6,000) (4,000) (2,000) 0 2,000 4,000 6,000 8,000
Government
Mining, Logging & Construction
Professional & Business Services
Other Services
Information
Financial Activities
Leisure & Hospitality
Manufacturing
Trade, Transportation & Utilities
Educational & Health Services