A variety of alternative measures have evidenced how hard the 2008 recession hit Delaware’s economy. Yet another perspective is available through the Bureau of the Census American Community Survey (ACS) data for the state.
Not surprisingly, the ACS data shows that between 2005 and 2012 the total aggregate hours worked by persons age 16 to 64 residing in Delaware dropped by 1.2%, or around 213,000 hours. The average hours worked per week fell from 39.5 to 37.9. The percent of the labor force that usually worked 35 hours or more a week dropped from 67.3% to 58.3%, and the percent who did not work during the year rose from 17.5% to 23.2%.
All of this helps explain why the average wage adjusted for inflation in Delaware over this time period has fallen and why the growth in the wage component of Delaware personal income is so weak.
Underneath these “macro” shifts are some major differences arising by gender. For example, from 2005 to 2012 the aggregate hours worked by Delaware males age 16 to 64 fell 4.3% while the aggregate hours worked by females rose 2.5%. Over the same time period the female labor force participation rate in Delaware rose slightly while the male labor force participation
rate fell (85.8% to 82.4%). And while the overall unemployment rate among Delaware residents rose between 2005 and 2012, the female unemployment rate went from higher than the male rate in 2005 to lower in 2012 (8.1% vs 8.6%).
The patterns of net job losses and gains among full-time employed Delaware males and females between 2005 and 2012 are striking. The largest net loss for males (5,700) occurred in the construction industry. Males also experienced big losses in manufacturing, with higher paying jobs in such sectors as transportation equipment and chemicals, and gains in lower paying sectors such as food processing and textiles. As a result of the decline in manufacturing, Delaware men also lost over 3,000 positions in the higher wage wholesale trade industry.
Industries where the job gains for Delaware men and women were roughly similar included retail trade, professional and scientific and health care. Women were clearly favored over men in hiring for public administration positions (2 jobs gained for women to each job gained by men) and social assistance (3 to 1). There were three major industries where male employment dropped while female employment gained: electronic shopping, data processing, and real estate. The shift was greatest in real estate with a net loss of 2,000 males compared to a net gain of 3,300 females. The only industry where men gained on women was food services, including restaurants, where the work force went from 49% male to 58% in 2012.
CONCLUSION
What are we to make of all this? A number of factors jump out.
First, the weak labor market has diminished wages as a path to higher personal income. The labor force participation of men is not only falling, men are also shifting from higher to lower paying jobs. Consequently, households are more dependent upon transfer payments and the ownership of wealth is even more important in capturing the soaring gains in asset markets (e.g., dividends).
Second, as experienced across the nation, much of the employment being gained is part-time and historically women have been more willing to take part-time jobs.
Finally, there is a growing formal education gender gap. Among Delaware residents ages 45 to 64, 30% of the women have a bachelor’s degree or more compared to 29% of the men. This gap widens to 35% and 29% for Delaware women and men ages 25 to 34. This means women will continue to gain jobs on men in industries and occupations that require more formal education and come with higher pay.
Dr. John E. Stapleford, Principal
DECON First uses economics to strengthen Delaware business. This is accomplished by providing accurate, objective, and relevant analysis of the economy, coupled with best practice recommendations that deliver new customers. The detailed analysis for the Indicators above is found in the DECON First Summer Delaware Economic Review (www.deconfirst.com). Direct questions to info@deconfirst.com
