Employment growth in the Great Plains has slowed due in part to labor shortages. Nonagricultural wage and salary employment grew by 69,200, or 1.1 percent, from August 1998 to August 1999. Nebraska and Missouri experienced growth rates of less than 1 percent. Iowa added the most jobs, with an increase of 34,800, or 2.4 percent, over a year earlier, including the durable goods sector, which added 2,400 new jobs despite the continuing farm crisis and decreased demand for new farm equipment. The region's unemployment rate declined to 3.1 percent in August 1999 compared with 3.5 percent in August 1998. Iowa and Nebraska have two of the lowest unemployment rates in the Nation, 2.5 and 2.4 percent, respectively. As many companies continue to scramble to find workers, job fairs are being held to find workers. One was held in Columbia, Missouri, in October to deal with the area's labor shortage, which is reflected in its 1.4-percent unemployment rate. About 50 companies were represented at the second annual job fair, which attracted more than 800 persons seeking employment.

Of major concern in the Kansas City area is the recent announcement that Sprint Corporation will be absorbed by its larger long-distance rival MCI WorldCom, Inc. Sprint, with headquarters in Overland Park, Kansas, is the area's largest private employer. The merger could mean possible job losses as the two telecommunications giants consolidate operations. Sprint employs almost 4,100 people at its headquarters, where job consolidation is likely to occur. However, Sprint has announced that it intends to continue construction of the company's new 247-acre, $920 million world headquarters in Overland Park.

Homebuilding continues its strong pace in the Great Plains region. Single-family building permits were up 7 percent during the first 9 months of 1999 compared with the same period a year ago. Activity was up 20 percent in the Omaha area and 12 percent in the Kansas City metropolitan area. In the St. Louis metropolitan area, the increase in homebuilding is occurring primarily in St. Charles County, which has surpassed St. Louis County in recent years. Move-up buyers are attracted to St. Charles by larger homes, golf villas, and recreational amenities. Home prices start at $90,000 for affordable townhomes and range from $120,000 to $450,000 for single-family houses.

Existing home sales in the region were up 9 percent in the first half of 1999 over the first half of 1998. Although the St. Louis Area Real Estate Board reported a decrease of about 7 percent in volume during the first half of 1999, the decline was off a very strong 1998 and the market remains strong.

Multifamily building permit activity in the Great Plains region during the first 9 months of 1999 is down 20 percent from the same period in 1998. Activity in Kansas, however, was up 27 percent due to the continued strong demand for rentals in the suburbs of the Kansas City metropolitan area. Apartment occupancy in the Kansas City and St. Louis areas is currently at 95 percent.

Spotlight on Cedar Rapids-Iowa City, Iowa

The Cedar Rapids and Iowa City metropolitan areas had a combined population of 287,000 as of July 1998, an 8.4-percent increase since 1990. Between 1990 and 1998, nonagricultural wage and salary employment in the two areas increased by almost 20 percent, or 29,800 new jobs. For the 12 months ending in August, employment grew by 1.8 percent, or 3,300 jobs. The unemployment rate was a low 1.9 percent in August.

One of the recent major economic developments has been the establishment of the University of Iowa Research Park located just north of Coralville on Iowa Highway 965. The park is the location of the Oakdale Research Campus and its Technology Innovation Center. The center serves as an incubator for startup firms. Fourteen companies are currently being developed at the center and almost that many firms remain in business after having graduated from the incubator. Two other technology parks are being developed in the area. The first is just north of Coralville and is bounded by Interstate 80 and I-380. The second is located near I-380 northeast of the Eastern Iowa Airport. The Coral Ridge Mall has also been a growth stimulus, with more than 1.2 million square feet of retail space. The mall also includes an ice arena, and the Iowa Children's Museum is under construction there.

From 1992 through 1998, single-family home building permit activity held fairly steady, averaging more than 1,300 homes annually. The volume of existing home sales for the first 9 months of 1999, 4,204 homes, was almost unchanged from the first 9 months of 1998. The average price of $125,000 for the first 9 months was 4.6 percent above the average for the same period in 1998.

From 1991 through 1998, about 700 multifamily housing units were authorized annually by building permits. The apartment market is balanced in the Cedar Rapids area but is tight in the Iowa City area.