Magazine article Economic Trends

The Youngstown-Warren-Boardman Metropolitan Statistical Area

Magazine article Economic Trends

The Youngstown-Warren-Boardman Metropolitan Statistical Area

Article excerpt

[GRAPHIC OMITTED]

[GRAPHIC OMITTED]

08.05.14

Youngstown, Ohio, is at the center of a larger metropolitan statistical area (MSA) that includes the cities of Youngstown, Warren, and Boardman, Ohio, and the counties of Trumbull and Mahoning in Ohio and Mercer in Pennsylvania. The area, often referred to as the Mahoning Valley and once known as the Steel Valley, was home to a flourishing steel industry from the mid- 1800s to the 1970s. Back in the 1920s, the valley's steel production ranked second in nation, but today most of the steel mills have been closed down, sold, and scrapped. Now producing little steel, the area has experienced a vast population decline and has yet to regain employment lost from previous recessions.

Recent employment statistics for the Youngstown MSA are startling. Employment typically falls around recessions but picks back up once the recovery begins. The Youngstown MSA followed this pattern after the 1990 recession, but in the two subsequent recessions, employment did not bounce back. Since the business cycle peak in 2001, employment has fallen almost continuously. At the time the 2007 recession hit 81 months later, employment was nearly 6 percent lower than it was in 2001. During the 2007 recession, employment continued to decline until November 2009, where 23 months into this business cycle, the Youngstown MSA's job market had lost an aggregate 14 percent since its peak in 2001. As of May of 2014, the MSA's employment has expanded but still remains nearly 10 percent below where it was at the peak in 2001 and 4 percent below where it was at the start of the 2007 recession. By comparison, employment levels in the nation as a whole recovered after all three recessions.

Even with the near absence of the steel industry, manufacturing still accounts for a significant share of employment in the Youngstown MSA. The share of employment in manufacturing has been higher in the Youngstown MSA than in both Ohio and the nation as a whole since 1990, even as the manufacturing sector has declined considerably over that time. Since 1990, manufacturing's share of total employment has declined from 24 percent to 13 percent in the MSA, while in the nation it has declined from 16 percent to 9 percent. The Youngstown MSA's employment shares also exceed Ohio's and the nation's in the trade, transportation, and utilities sector, other services sector, and the educational and health services sector.

[GRAPHIC OMITTED]

[GRAPHIC OMITTED]

Overall, the employment shares of most sectors in the Youngstown MSA relative to the nation have been fairly stable across business cycles. However, since 2001 the share of employment in the professional and business services sector has increased in Youngstown relative to the nation. This trend is encouraging, as the sector has accounted for roughly 30 percent of job growth nationally since 2010.

Mirroring the continuous declines in overall employment is a similar decline in Youngstown's population. Since 2000, the two series have both fallen significantly. However, employment has declined much more and at a quicker pace over the period. Recently, employment has started to increase, while population continues to decline.

Much of the population decline over the last several decades has been fueled by major migrations out of the MSA. In general, though, when people decide to leave Youngstown, they often stay fairly close to home. County-to-county migration data from the American Community Survey for 2007-2011 shows that 35 percent of residents left the Youngstown MSA for the South, 33 percent went to the Midwest, 22 went elsewhere in the Northeast, and 11 percent went to the West. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.