Over the past year, the private sector job count in the Southern Tier fell by 14,100, or 6.3 percent, to 211,200 in December 2020. Job losses were greatest in leisure and hospitality (-3,900), educational and health services (-3,300), trade, transportation and utilities (-2,100), natural resources, mining and construction (-1,200), professional and business services (-1,200), manufacturing (-1,000) and other services (-1,000). Government jobs decreased by (-2,300) over the year.
By Christian Harris, Labor Market Analyst, Southern Tier (Excerpted from the August 2020 issue of the Employment in New York State newsletter)
Earlier this year, labor market analysts with the State Department of Labor developed lists of “Significant Industries” for each region in New York. These reports are intended to help local workforce development boards plan strategically and focus their resources in priority industries. In this article, we look at significant industries that have a major economic impact in the Southern Tier – hospitals, computers and electronic products, and transportation equipment – using data from the Quarterly Census of Employment and Wages program.
The health care sector – which includes ambulatory health care, hospitals and nursing homes – employed more than 30,000 in the Southern Tier in 2019, accounting for about 15% of the region’s overall employment. With more than 12,000 employees in 2019, hospitals are the largest segment of the region’s health care sector. Hospitals are also significant because their annual average wage ($55,400) is $4,500 higher than the average for all private sector industries in the region ($50,900). Over the 10-year period ending in 2019, the job count in the region’s 18 private sector hospitals increased by 856, or 7.6%.
United Health Services (UHS) has announced plans to undertake a $132 million renovation and expansion of Wilson Medical Center (WMC) in Johnson City (Broome County). This is Wilson’s first major expansion in 30 years. It is expected to improve customer care, while also helping to retain and attract workers to the region. Groundbreaking for the project could occur later this year, and construction is expected to take about 3½ years. WMC is co-located with Binghamton University’s (BU’s) newly constructed Health Sciences Campus, which houses BU’s pharmacy and nursing schools. Together, the investments made by both UHS and BU have helped to transform downtown Johnson City to a sought-after destination for health care students, workers and patients.
Another “Significant Industry” in the Southern Tier is computer and electronic products. Not only does this industry employ nearly 8,000 workers in the region, it also pays an annual average wage ($92,400) that is more than 80% higher than the region’s private sector average. The high salary is mainly because the industry employs many highly specialized information technology and engineering professionals.
One of the largest regional employers in this industry is Lockheed Martin, a high-tech aerospace and defense company that has a manufacturing facility in Owego (Tioga County). Lockheed was awarded a $2.4 billion contract by the government of India to produce 24 MH-60 Romeo helicopters. Manufacturing work is done by Sikorsky, a separate unit of Lockheed based in Connecticut. Installation of the helicopter’s avionics and electronics takes place at Lockheed’s Owego plant. Several other countries – including Denmark, Greece and Australia – as well as the U.S. Navy have ordered the Romeo helicopter. These ongoing sales should help provide a steady flow of revenue over the next several years.
Transportation equipment is a third “Significant Industry” in the region. It has enjoyed good employment growth (+14.1%) over the past five years and its average annual wage ($72,600) is well above the region’s private sector average. This industry received a major boost when Alstom, a French multinational company, announced it is expanding its high-speed train manufacturing facility in Hornell (Steuben County) this year.
The site is currently the only manufacturing plant of its type in the U.S. Alstom expects to expand its local employment count from 800 to 1,000 in order to meet orders due in 2021 and 2022. The company’s largest current work order is a $2.5 billion contract with Amtrak to develop the next generation of high-speed trains to replace an aging fleet along the northeast U.S. travel corridor.
Analyzing “Significant Industries” provides greater insight into the economic forces driving a regional labor market. Here, we have looked at three such industries. To learn more about “Significant Industries” in the Southern Tier, see the full report located at Significant Industries in the Southern Tier.
If you have any further questions regarding the Southern Tier Labor Market, please contact:Christian Harris
Thanks for the feedback! It will help us improve your experience.