Shelby County’s economy outshines state stats

As the national economy continues to recover, job growth in Alabama has lagged far behind.

The state was 49th in job growth for 2013, and the August 2014 unemployment rate of 6.9 percent was higher than the 6.5 percent rate of August 2013.

But amid those weak numbers there is a bright spot in the state – Shelby County.

Unemployment in Shelby County in August was just 5.1 percent, or 5,263 people. That’s up from the 4.4 percent rate for 2013 but significantly lower than the 2009 rate of 6.9 percent during the height of the recession.

How is Shelby County able to outshine the rest of the state?

Kirk Mancer, president and CEO of the Greater Shelby County Chamber of Commerce, attributes it to a stout workforce and a quality of life that is attractive to new businesses.

 “It’s a testament to the strong quality workforce we have in Shelby County,” Mancer said, pointing out that Chelsea and Calera are among the fastest growing cities in the state.

And continued growth is expected. A report by Washington-based Woods and Poole Economics in 2011 projected Shelby County as one of the nation’s hot spots for job creation over the next five years. They estimated the county’s employment will expand at an average rate of 2.61 percent between 2011-2015. That’s more than double the U.S. rate of 1.15 percent. The firm ranked Shelby County No. 8 among 3,000 counties across the nation for job growth.

But part of the answer also lies in demographics and geography. Figures are not available from the state Department of Labor, but many Shelby County residents actually work in Jefferson County.

The county’s median household income is more than 50 percent higher than the state’s. The poverty level is less than half the state’s. Population growth has far outstripped the state’s since 2010. Home ownership is higher and the value of homes is more than 50 percent higher than the state average.

Shelby County also has one of the best-educated workforces in Alabama. According to the U.S. Census Bureau, 40 percent of Shelby County adults age 25 and older have at least a bachelor’s degree, and 12.6 percent have a graduate or professional degree.

Shelby County’s strong economic base helped it weather the recession better than the rest of the state, but employment has not yet fully rebounded from 2007 when the unemployment rate was an impressive 2.2 percent.