April/May/June 2006

San Antonio’s Job Market Flourishing in ‘06…

The San Antonio economy continued to generate jobs at a healthy rate in the second Quarter of 2006. Total Nonfarm payrolls expanded by 13,933 jobs during (1.78 percent) the period as a broad sample of industry sectors experienced upturns in employment. The Leisure & Hospitality sector led the expansion, adding 6,700 jobs during the Quarter as area businesses ramped up for the busy summer season. Complimenting this seasonal shift, a continuingly expansive economy continued to generate strong demand within the Professional & Business Services sector and the Construction & Manufacturing sector spurring strong job growth.

Total Nonfarm Employment Summary:
2nd Quarter 2006

click to enlarge

The second Quarter’s aggressive payroll expansion is typical of recent years’ job growth for the period. Since 2000, Total Nonfarm payrolls have increased on average by 13,767 jobs during the second Quarter of the year. Annual job growth followed suit, remaining strong during the second Quarter of 2006. Total Nonfarm payrolls swelled 1.95 percent (15,233 jobs) versus employment levels during the same Quarter in 2005.

click to enlarge

Job Gains…
The Goods-Producing segment of the local economy continued to thrive in the second Quarter, adding 1,767 jobs (1.86 percent) versus the previous Quarter and expanding by 2,567 jobs (2.73 percent) versus the second Quarter of 2005. The segment’s continuing strong growth is largely attributable to a surge in job creation within the Construction sector, which expanded payrolls by 1,467 jobs (3.02 percent) during the second Quarter while registering a 3.52 percent (1,700 jobs) annual growth rate. The Manufacturing sector, meanwhile, continued its recent trend of steady quarterly gains, adding 300 jobs (0.65 percent) during the three-month period and posting a healthy 1.89 percent (867 jobs) annual growth rate. A sharp increase of 633 jobs (2.37 percent) among Durable Goods Manufacturing employers, driven by continued hiring by Toyota and its stable of on-site suppliers, accounted for the bulk of the sector’s quarterly gains.

The Service-Providing segment of the local economy likewise demonstrated strong performance in the second Quarter of 2006, posting Quarterly gains of 1.77 percent (12,167 jobs) and annual job gains of 1.84 percent (12,667 jobs). Leisure & Hospitality sector employers boasted the job market’s strongest gains for the Quarter expanding payrolls by 6,700 jobs (7.61 percent) during the three-month period and registering a 2.30 percent (2,133 jobs) annual growth rate. The sector’s second Quarter increase is on par with recent year’s additions and, despite the mildest second Quarter annual growth rate in three years, the sector’s annual growth continues to outpace growth in the greater job market.

The Professional & Business Services sector also experienced healthy job growth during the second Quarter of 2006, posting Quarterly gains of 2,700 jobs (2.75 percent) and annual gains of 3,500 jobs (3.59 percent). Increasing demand for Employment Services continues to catalyze growth in the sector. Employment Services employers collectively added 1,067 jobs (4.89 percent) to payrolls during the second Quarter and 1,033 jobs (4.73 percent) for the year.

The Financial Activities sector, meanwhile, experienced its strongest second Quarter expansion since 2001, adding 1,233 jobs (2.00 percent) in the period spanning April to June and elevating its annual growth rate to 1.61 percent (1,000 jobs). Strong hiring among Real Estate, Rental & Leasing employers, which grew payrolls 3.94 percent (567 jobs) in the second Quarter, has spurred the sector’s resurgence of late following tempered growth in 2005.

Contrastingly, the Education & Health Services sector experienced more moderate job growth in the second Quarter, adding 467 jobs (0.43 percent). Annual job growth for the sector, however, remained strong at 4.07 percent (4,267 jobs), more than double the growth rate of the greater job market and the strongest annual growth since the 4.44 percent registered in 2002 (second Quarter).

The Trade, Transportation, & Utilities sector was uncharacteristically flat during the second Quarter, posting only nominal quarterly and annual gains of 233 jobs (0.17 percent) and 133 jobs (0.10 percent) respectively. A weak year for Retail Trade is largely to blame for the sector’s relative inactivity thus far in 2006. Retailers posted gains of only 33 jobs (0.04 percent) in the second Quarter, a stark contrast to the job gains of 1,133 and 1,000 in the second Quarters of 2005 and 2004. Among Retailers, Department Stores faired the worst, trimming payrolls by 3.32 percent (-267 jobs) in the Quarter. In a year-to-year comparison, Retail Trade suffered a 0.44 percent reduction (-400 jobs) in employment levels versus the second Quarter of 2005.

The Government sector, likewise, showed little hiring activity in the second Quarter of 2006, adding only 400 jobs (0.27 percent) for the Quarter and expanding payrolls only 0.97 percent (1,400) versus the second Quarter of 2005’s employment level. Slow to moderate growth has characterized the government sector in recent years; annual growth (second Quarter) has not exceeded 1 percent since 2003.

Job Losses…
The Information sector experienced the only job losses in the second Quarter. Payrolls for the sector were down 0.50 percent (-100 jobs) for the Quarter and 2.28 percent (-467 jobs) for the year. Losses in the Telecommunications industry continue to drive that sector’s contraction.