Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 23, 1994 TAG: 9401220185
SECTION: ECONOMY PAGE: EC-13 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The Roanoke Valley survived the 1991-92 recession relatively unscathed when it came to statistical measures of unemployment.
But in 1993, while other Virginia metro areas bounced back, Roanoke had a smaller rebound in its employment figures.
That's the analysis by Bill Mezger, senior economist with the Virginia Employment Commission in Richmond.
"Roanoke was not bothered as much by the recession," Mezger said. Only Charlottesville had higher employment during that two-year period.
At the height of the recession, Roanoke averaged unemployment of 5.2 percent for 1992, Mezger said.
The high was 6.2 percent in January 1992. Mezger called this "not such a high figure" considering it fell in the middle of both winter and a recession. Mezger estimated that 1993 will show that unemployment rates averaged 4.5 to 4.6 percent when the final figures are reported, probably in late February.
That's lower than the year before, but not so good compared to other metro areas. Richmond, for instance, rose to an average of 6 percent in 1992 and should show about 4 percent when 1993 is calculated.
Last year brought some early and intermittent layoffs in manufacturing. At the end of the year, 200 fewer people were employed in manufacturing compared to the start of the year.
That was caused by layoffs and subsequent closing of the Roanoke operations of the Gardner-Denver division, he said, coupled with some cutbacks in defense work, notably at ITT Corp.
In the latter half of the year, he said, Roanoke had a large drop in the retail sector because of closing of the Sears Telemarketing Center. That operation accepted phone orders for the Sears, Roebuck & Co. catalog, which was eliminated by the national retailer.
The Roanoke Valley had negative job growth in August and September, he said, and "a big chunk of it was in the retail sector."
The former Sears center was acquired later by Retired Persons Services, which fills pharmacy orders for the American Association of Retired Persons. But for a period of time, he said, unemployment rose in the retail sector before the new operator began hiring.
But it was in the first months of last year that employment began to look less good compared to other areas. Virginia's other metro markets were gaining employment, he said, when the Gardner-Denver and Sears closings hit Roanoke.
Nor did the area's construction industry pick up as rapidly as it did in other areas of the state, Mezger said.
Another potential threat to Roanoke's employment stability never materialized, according to Mezger. That was an anticipated loss of financial jobs because of the March merger of First Union Corp. and Dominion Bankshares Corp.
Although the banks eliminated about 850 Roanoke Valley jobs before the merger, and some jobs moved out of Roanoke, other jobs moved into Roanoke from other areas in the First Union system, he said.
Employment totals don't measure it, he said, but it's probable that some lost jobs were highly paid executive positions while those that were gained were lower-paying clerical and technical positions.
Even so, he said, the employment stability in the banking sector was "a surprise to everybody."
Railroad jobs have declined over many years, but Mezger said the situation with Norfolk Southern Corp. stabilized last year. Trucking employment held level as well.
Growth was achieved last year in the health and business service sectors. Mezger said Roanoke has become an important health care provider for the western one-third of Virginia.
And, he added, it seems to be developing into the computer service center for the same area.
In addition to computer servicing, business services show promise. This sector is composed largely of payroll and other personnel service providers for commercial customers. Mezger said it's possible that jobs are being transferred from manufacturing and other sectors to this growth industry.
Roanoke is also known as a telecatalog order center. Mezger said that, with the exception of the closing of Sears, employment in this field remained constant throughout the year.
by CNB