Nonagricultural wage and salary employment in the Great Plains increased by 173,400 jobs (2.9 percent) from February 1997 to February 1998. Kansas again led the region with a 4.1-percent growth rate, followed by Nebraska (3.8 percent), Iowa (2.6 percent), and Missouri (2.2 percent). The largest part of the increase in Kansas came from an expansion in services, but Missouri added the most jobs with 55,400.

Unemployment in the region averaged 3.5 percent in February 1998, ranging from a low of 1.9 percent in Nebraska to 4.5 percent in Missouri. Iowa's unemployment rate dipped to a record-low 2.6 percent. The labor market in the region is very tight, and job fairs are being held to find workers. Local chambers of commerce in the Kansas City area have scheduled Job Fair '98 for the Spring of 1998. It will be held at six locations in the metropolitan area, and nearly 200 employers are planning to participate.

Building permits for new single-family homes in the Great Plains declined 7 percent in 1997 after hitting an 18-year high in 1996. However, multifamily housing permit activity during 1997 reached the highest level (19,283 units) since 1986.

Existing home sales for 1997 increased 4 percent from the 1996 level. Sales increased in all four States in the region. Great Plains' housing markets experienced substantial price rises again in 1997. The Kansas City and Lincoln markets, with 1997 median sales prices of $106,800 and $92,800, respectively, had the greatest price increases (8 and 6 percent) over 1996 levels. The St. Louis and Omaha markets, with median sales prices of $96,900 and $93,600, respectively, both had increases of more than 6 percent.

Rental housing vacancy trends in the Great Plains were mixed. In Kansas City, the apartment vacancy rate was 4.4 percent at the end of 1997, down from 4.9 percent in 1996. Topeka's rental vacancy rate decreased to 8.6 percent in January 1998. Wichita's rate was up slightly to 5.9 in January 1998, and the rate in the greater Des Moines area increased to 8.6 percent.

Spotlight on St. Louis, Missouri-Illinois

The population of the St. Louis metropolitan area as of January 1998 was 2.6 million, a gain of 83,000 persons (3.3 percent) since 1990. During the past 3 years, the metropolitan area experienced a positive in-migration for the first time in about 30 years. Population estimates of the area's counties show a continuing pattern of population shifts from St. Louis County and St. Louis City to the outlying counties. The population in St. Charles County has increased by 25 percent since 1990, while St. Louis County has grown by only 1.7 percent and St. Louis City has declined by 11.5 percent.

The sales housing market in the metropolitan area was fairly strong over the past 3 years. During the first quarter of 1998, existing home sales increased by 8.1 percent over the same period in 1997. Sales during 1997 had increased for the second year in a row, up 3 percent from 1996. The median sales price for existing homes in 1997 was $96,900, approximately 6 percent above the 1996 median sales price.

Apartment construction was strong again in 1997 and continued to be strong in the first 3 months of 1998. High occupancy rates and rising rents are justifying new construction, although the lack of zoned land remains a constraint. As a result, the apartment market is seeing major rehabilitation of older, well-located developments.

On the Illinois side of the metropolitan area, several major developments will have a significant affect on the area's future economic growth. The new $300 million MidAmerica Airport recently opened in St. Clair County, adjoining Scott Air Force Base. In addition, the Air National Guard's 126th Air Refueling Wing will be moving from Chicago's O'Hare Airport to Scott Air Force Base in 1999, and construction recently began on its new wing headquarters and maintenance buildings. The move is expected to create more than 300 full-time jobs and 900 part-time jobs at Scott Air Force Base and to provide an estimated $39 million boost annually to the area's economy.

Construction has started on Phase II of Metro-Link, which will serve St. Clair County on the Illinois side of the St. Louis metropolitan area. MetroLink, a light-rail line that opened in 1994, currently runs from the Lambert-St. Louis International Airport to East St. Louis, Illinois. The 17.4-mile extension will run from East St. Louis to the Belleville Area College.

Several projects are under way in downtown St. Louis. The $25 million, 333-room Drury Plaza Hotel is under construction. In addition, developers of a $172.5 million, 1,000-room Marriott Renaissance convention hotel are hoping to start construction by late Summer 1998. The plan, which was selected by the city to receive development and financial assistance, calls for renovating the vacant Gateway Hotel and adding a new 38-story hotel tower. In another project next to the America's Center Convention Hall, the vacant, historic Lennox Hotel is to be renovated. The developers have private financing in hand and are counting on additional State and Federal funding. A $200 million redevelopment project is planned for the Cupples Station area just west of Busch Stadium. Projects in the works include a parking garage near the new Federal Courthouse, a 220-room hotel adjacent to Busch Stadium, and the conversion of warehouse space into offices and loft apartments.