St. Louis Reinvents Itself to Become Resillient in Recession

St. Louis has experienced some major changes as a result of the recession, like every other city in the US.  Its unemployment rate is similar to the national average, and has steadily risen in the face of economic downturn and turmoil.  The city is a major port along the Mississippi River and offers the country a convenient, centrally-located transportation and trade hub.  There are also strong government employment and manufacturing sectors here as well.  Interestingly St. Louis has worked hard over the past decade to attract new business and companies to headquarter there.  The city has been successful in creating a more diverse, modernized economy that showcases a strong medical services and healthcare employment sector.

A couple of employment sectors that have really struggled over the past couple of years here are the construction and retail sectors.  Both have taken huge hits as consumers are no longer buying houses and goods at the same rate they were only two years ago.  Construction jobs are off nearly 15%, as the bursting of the real estate bubble has adversely affected this sector quite a bit.  St. Louis used to have one of the healthiest real estate markets in the US only five short years ago.  The median home price versus the median income was one of the best ratios in the nation.  The window of opportunity in real estate has been closed for some time now, but will likely reopen as more and more people and businesses make St. Louis their home.  The city’s central location and large pool of both labor and material resources make it an attractive place to be post recession.

Even the city’s leisure and hospitality sectors have begun to struggle as of late.  There has been about a 5% drop in employment in these sectors overall, half of which came in the first six months of 2009 alone.  Less and less people are spending their hard earned cash on vacations, and those that do are looking to really stretch their dollars.  St. Louis has always been a hotspot for tourists looking to sample a truly American city, but the numbers don’t lie.  There will likely be a continued decrease in the tourism sectors as the recession drags on.

The education and health services sectors in St. Louis have actually grown since the beginning of the recession by nearly 2%.  The education sector has grown in nearly every city, and continues to provide secure employment for tens of thousands in the St. Louis area.  The employment opportunities in these fields have helped keep the city’s head above water, economically speaking, and have helped to redefine St. Louis as a Midwest hub for healthcare businesses and services.  The city is re-establishing itself as a major central US services provider as well, and though the services employment sector has seen a slight downturn, the numbers are starting to show that this sector may rebound before many others will.  The city is in a great position to begin to rebuild after the recession, and will likely emerge again even stronger than before as a major Midwest economic hub.