Employment in the Great Plains region increased by 106,228 (1.7 percent) from November 1996 to November 1997. Missouri added the most jobs (37,500) in the region. Although the growth rate of jobs in Kansas slowed some, the growth in its aircraft industry remained strong. Between November 1996 and November 1997, employment in this sector increased by approximately 6,400 jobs, or 16 percent. Iowa's annual rate of job growth rebounded to 1.8 percent during the same period after previously having declined.

The region's labor market remains tight, with the unemployment rate in the Great Plains as of November 1997 at 3.3 percent. The unemployment rate in Nebraska dropped to 1.9 percent as of November 1997. The very low unemployment has caused a labor shortage, especially for skilled workers. Competition for workers with high-technology skills is specially intense. Iowa's November 1997 unemployment rate of 2.7 percent was the fourth lowest in the Nation. As a result, many retailers in Iowa found it difficult to hire extra help for the Christmas shopping season. Missouri's unemployment rate in November 1997 was 3.9 percent. St. Louis banks experienced problems meeting their staffing needs, especially in November and December, because of low unemployment in the area. The Kansas unemployment rate of 3.6 percent in November was the lowest since 1979.

Existing home sales continued to remain strong in 1997 and totaled 258,200. All four States reported increased activity. Resales in Nebraska were up almost 16 percent compared with 1996.

Single-family permit activity in the Great Plains region totaled 40,321 units in 1997, down 7 percent compared with a strong 1996 volume. All States reported modest declines. Multifamily housing activity continued to be strong, with permits issued for 19,283 units, a 2-percent increase over 1996. The Kansas City metropolitan area accounted for much of the increase as multifamily activity reached 4,189 units, a record high for the 1990s. St. Louis area apartment construction continued at a relatively slow pace; permits were issued for 1,810 multifamily units in 1997, down from 2,134 units the previous year. Much of the activity is the result of low-income-housing tax credits and other housing programs that provide affordable housing to low- and moderate-income families.

Spotlight on Lincoln, Nebraska

Since the 1990 census, the population of the Lincoln metropolitan area has grown by about 2,900 annually to reach 236,000 as of January 1, 1998. Employment in the area totaled 142,789 in November 1997. Lincoln, the State capital and home of the University of Nebraska, has one of the lowest unemployment rates in the Nation, 1.3 percent in November 1997. The unemployment rate was the lowest recorded since 1978.

Lincoln's economic success has been significantly influenced by the growth of small businesses. Of the 7,500 businesses in the Lincoln metropolitan area, approximately 92 percent employ 20 or fewer employees. Only 70 private employers have more than 200 employees. Service and manufacturing are the fastest growing sectors of the Lincoln economy. Lincoln has 420 companies that manufacture goods. Industries that are leading the growth in Lincoln are electronic technology, pharmaceuticals, printing and publishing, and technology transfer.

One of the area's major new economic developments is the Technology Development Center operated by the University of Nebraska Foundation. The 130-acre Technology Park that began development in 1996 will eventually contain more than 1 million square feet of commercial, office, and research space. Eight tenants have signed up to occupy space and three more are on the waiting list for space when it becomes available. Five of the prospective tenants are software development companies. The other firms include a computer-aided motion systems firm, a DNA analysis firm, an electromagnetic shielding group, a highway safety production systems company, and a patent attorney.

The University of Nebraska Foundation is currently seeking $5 million from the State of Nebraska's current surplus tax receipts for the construction of a building in the Technology Development Center. This new facility will provide technical training and testing of new electronic products. Private funds will run the training center after public funds are used to construct the building.

A new regional shopping mall is being developed in the southern part of Lincoln to complement the discount retail center that was developed several years ago in the northern section. The new regional mall will house 1.3 to 1.5 million square feet of Class A retail space.

Permits were issued in 1997 for 1,046 single- family homes, compared with 997 in 1996. Since 1990 home construction in the Lincoln metropolitan area has been fairly stable, averaging approximately 1,100 units annually. Sales of existing homes increased for the third consecutive year, from 2,816 in 1995 to 3,185 in 1997 according to multiple listing service data. The median sales price of an existing home in 1997 was $92,800, compared with $87,200 in 1996.

Since 1994 multifamily housing production has averaged approximately 1,000 units annually. This pace of apartment construction has somewhat loosened the area's tight market conditions. The Lincoln Board of REALTORS^®' April 1997 Multi-Family Rental Property Survey Report showed a 4.3-percent vacancy rate in the almost 9,000 units surveyed, compared with a 3.1-percent vacancy rate in both 1996 and 1995 for the same period.