Nonagricultural wage and salary employment in the Great Plains region increased by 115,100, or 1.8 percent, from August 1997 to August 1998. Kansas led the region with a 2.9-percent growth rate, followed by Nebraska with 1.9 percent, Missouri with 1.5 percent, and Iowa with 1.3 percent. Kansas continues to add jobs in durable goods manufacturing, primarily from the production of private aircrafts and aircraft parts.

The unemployment rate in the region declined slightly to 3.4 percent as of August, down from 3.6 percent of August 1997. Nebraska, with the lowest unemployment rate in the region, recorded a decline to 2.3 percent. Iowa's unemployment rate of 2.5 percent was down from 3.1 percent a year earlier and has been hovering near record-low levels. However, the recent declines in agricultural commodity prices could cause job losses in the months ahead. The unemployment rate in Missouri of 4.1 percent was unchanged from a year earlier. There are significant labor shortages in Columbia, Missouri, where the unemployment rate has been less than 2 percent for almost 5 years.

The Great Plains region is on track for another good year in home construction. Through September 1998, permits were issued for 34,361 single-family homes, a 9.7-percent increase over 1997 volume. The St. Louis metropolitan area recorded 8,024 single-family permits issued, an 8.5-percent increase over the first 9 months of 1997. Des Moines, with 2,049 homes permitted, recorded the largest percentage increase in activity of the region's metropolitan areas: a gain of 34 percent.

Multifamily building permit activity in the region during the first 9 months of 1998 totaled 12,388 units, down 15 percent from the same period in 1997. The decline is due in large part to a cutback in the Kansas City metropolitan area, where activity decreased 27 percent as the market adjusted to the substantial pipeline of new units.

The sales housing market in the Great Plains region has paralleled the strong showing in the rest of the Nation. As of the second quarter of 1998, the annual rate of sales in the region had increased to 290,200 homes, a gain of 11 percent compared with second-quarter 1997.

Iowa, Kansas, and Nebraska all recorded double-digit gains. In the Kansas City metropolitan area, the median sales price of existing homes was up 7.4 percent for the second quarter of 1998 compared with the second quarter of 1997, while the median sales price in the Omaha area increased 11 percent. Realtors in the St. Louis area reported that existing home sales for the first 9 months of 1998 were up 20 percent compared with the same period in 1997, and that prices were up 7 percent.

Spotlight on Omaha, Nebraska

Since 1990, employment growth in the Omaha area has averaged a robust 3 percent annually. Nonagricultural wage and salary employment during the first 8 months of 1998 averaged 410,375, up 5.1 percent over the same period in 1997. The greatest growth rates were in wholesale trade, up 11.4 percent, followed by finance, insurance, and real estate (up 10 percent); and construction (up 9.2 percent). The unemployment rate for the 8-month period averaged a remarkably low 2.1 percent.

The First National Bank of Omaha recently announced the construction of a 40-story office tower. The First National Center, to be located in Omaha's central business district, will be the tallest office building in Nebraska. Construction is to start in Spring 1999, with completion scheduled for 2002. It will contain 954,000 square feet of space. First National also has a 194,000-square-foot operations and technology center under construction, which is expected to be completed in June 1999. The technology center will house the bank's mainframe computers and backroom operations. The city of Omaha is constructing a 956-car parking structure near First National's technology center.

Other construction projects in downtown Omaha include the $51.2 million Roman Hruska Federal Courthouse, scheduled to be completed in late 1999. ConAgra is constructing a new office building that will serve as its global trading center. The Ford Storage Building is being converted to apartments and retail space. The Old Market district is being expanded, and plans are moving forward to develop a riverfront park along the Missouri River, just north of the central business district. Outside the downtown area, the University of Nebraska at Omaha has broken ground for its first residence hall, which will house 576 students in 144 suites.

In the first 9 months of 1998, 10,434 homes were sold in the three-county Omaha metropolitan area, a 44-percent increase over the same 9-month period in 1997. The average sales price during the first 9 months of 1998 was $108,000, up 7 percent from the same period of 1997.

The rapidly growing economy of the Omaha area has supported a steady increase in home construction. From 1993 to 1995, annual permit activity averaged 2,800 homes. As a result of increased demand and lower interest rates, permit activity since 1995 has averaged 3,200 units annually. In the first 9 months of 1998, permits were issued for 2,442 single-family units, a 9-percent increase over 1997 levels for the same period.

Multifamily housing construction activity in 1996 and 1997 averaged 2,300 units annually, compared with only 900 units a year from 1990 through 1995. However, with the substantial pipeline of units under construction, permit activity for the first 9 months of 1998 fell to 1,516 units.