The Philadelphia Federal Reserve’s Tri-State Tracking report shows a mixed bag of economic trends for Delaware as of October.
Job growth continues to show promise with a 2.9 percent gain when compared to the same period a year earlier. The growth rate nationally has been around 2 percent.
The most encouraging news came out of the construction sector, which saw a 12.7 percent gain from the same period a year earlier. Also coming in with strong growth was the broad category of professional and business services, up 8.6 percent.
The gains in construction were reflected in an upturn in building permits in the state, with the increase outpacing national figures. Health and education, a category that fared relatively well during the economic downturn was up only 1.7 percent, while manufacturing saw a .4 percent drop.
The key financial services and real estate industry saw a 3.2 percent gain when compared to October of last year, while trade transportation and utilities jobs were up by 1.5 percent.
The positive news is also believed to be a factor in an unexpected gain in workforce participation as more people looked for jobs. That contributed to a 6.5 percent unemployment rate in September, with the Philadelphia Fed predicting a comparable rate in October.
That is above the 5.8 percent national rate and marks the end of a long period when the state’s jobless figure ran well below the national number.
The state is expected to release October jobless figures this week.
Home price growth, a sign of a recovering economy, remained below national figures. Seriously delinquent mortgages, as shown in a state map on Page 1, were highest in a small portion of northern Sussex County, with the lowest rates in affluent areas on the northern edge of the state and coastal Sussex County. The term “seriously delinquent” refers to mortgages that are 90 days or more past due.
Personal income was up 3.5 percent of the year, although one measurement of business activity (proprietors’ income) was up a 2.76 percent. Wages and salaries were up 4.3 percent. The 3.5 percent rate was below the national average.
The state has been hurt by the loss of higher paying blue collar jobs, due to the closing of the state’s auto plants as well as downsizings and closings of smaller employers. Last week, New Castle County and the City of Wilmington announced an economic development strategy aimed at bringing more good jobs to the area.
