Hardy County Labor Market Summary College of Business and Economics West Virginia University www.bber.wvu.edu by George W. Hammond, Ph.D. Anthony Gregory Update November 2006 Copyright © 2006 WVU Research Corporation This summary provides an overview of the current performance of the Hardy County labor market compared to the Potomac Highlands Region, the state of West Virginia, and the U.S. The Potomac Highlands Region includes Grant, Hampshire, Hardy, Mineral, and Pendleton counties. Table 1 below contains summary data for the county, the region, metropolitan areas with component counties in the region, the state, and the nation. Data summarized in this document (and detailed in the associated Excel database) include job growth and wages by industry, the unemployment rate and labor force participation, population growth and demographics, educational attainment, job turnover by industry, farming, and commuting patterns. Hardy County added 238 nonfarm jobs from 2004 to 2005, with 196 of those new jobs coming in manufacturing, particularly in the wood products and furniture sector. Since 2001, the county has added 590 jobs, which translates into an average annual growth rate of 2.4 percent. That growth rate far exceeds results for the state (0.3 percent) and the nation (0.4 percent) during the same period. It is also the fastest growth rate posted by any county in the region. As Figure 1 shows, the county added jobs rapidly in professional and business services (which has almost tripled employment since 2001); leisure and hospitality; information; construction; government; and education and health care. Hardy County posted slower gains in manufacturing and trade, transportation and utilities, although the gains in manufacturing are in stark contrast to strong job losses statewide and nationally. The county posted job losses in natural resources and mining and other services (which includes repair and maintenance, personal services, and non-profits). Strong gains in construction reflect infrastructure development in the region (Corridor H) as well as residential building activity. Gains in professional and business services reflects activity at temporary help agencies, while gains in information are likely related to overall population growth in the region. Figure 1 Annual Job Growth Hardy County, W.Va. and the U.S. 2001-2005 Total Nat. Resources & Mining Construction Manufacturing Trade, Trans., and Utilities Information Financial Activites Prof. and Business Services Hardy W.Va. U.S. Education and Health Services +30.7% Leisure and Hospitality Other Services Total Government -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 Percent 8.0 10.0 12.0 14.0 *Annual job growth is based on covered employment and wages. The Hardy County nonfarm employment mix is heavily weighted toward manufacturing, with over half of county nonfarm payroll jobs in this sector. Hardy County manufacturing is dominated by poultry processing, with Pilgrim’s Pride Corporation of West Virginia the largest employer in the county in March 2006, but wood products activity also accounts for a significant share of nonfarm jobs. Agriculture remains an important sector of the county economy, with farm proprietors in Hardy County accounting for 9.1 percent of total full and part-time employment in 2004. This far exceeded the state share of 2.6 percent. In addition, the county accounted for 27.3 percent of state livestock cash receipts in 2004, with those sales dominated by poultry. The county has posted solid gains in wages per worker during the last four years, rising from $21,962 in 2001 to $24,722 in 2005. Even with that growth, average wages in the region remain well below the Potomac Highlands region average ($26,835), the state ($31,344) and the nation ($40,671). Further, job gains have contributed to the county’s low unemployment rate, even as population rose quickly. At 3.7 percent in 2005, the county’s unemployment rate remains well below the Potomac Highlands (4.5 percent), state (5.0 percent), and the nation (5.1 percent). In 2000, the county labor force participation rate was 64.0 percent, well above West Virginia (at 55.3 percent), and close to the national rate of 64.9 percent. Indeed, the participation rate for women in Hardy County is particularly high (at 58.8 percent), which is more than 10 percentage points above the state average and also exceeds the national female participation rate. Hardy County’s labor force has increased by 2,200 since 1980, with growth driven by gains in resident employment. The labor force includes both employed residents, as well as unemployed residents that are actively seeking work. The growth in Hardy County’s labor force accounted for 24.4 percent of gains in the Potomac Highlands Region. In 2000, Hardy County drew 2,194 workers from outside the county, while 1,862 Hardy County residents commuted to jobs in other counties. One important measure of labor market performance is the job turnover rate. This is computed by summing the number of job accessions and job separations per quarter, dividing this sum by two, and then dividing by the number of jobs. According to new data released by U.S. Census Bureau, the county’s overall turnover rate is 8.7 percent, which is below the state average of 9.8 percent. This suggests that the county’s labor market was a bit less dynamic than the state last year. Hardy County has a relatively large share of residents with a high school degree as their highest level of educational attainment (at 44.6 percent), but relatively low shares of residents with associate’s (3.0 percent), bachelor’s (5.7 percent), and graduate and professional degrees (3.8 percent) compared to the state and the nation. However, Potomac State College of West Virginia University, in Mineral County, has granted 708 degrees or certificates during the last five years and Eastern West Virginia Community College, in Hardy County, had undergraduate headcount enrollment of 882 in certificate, associate degree, or non-degree programs in fall 2005. Population growth in the county has been strong since 2000, as the county has added 592 net new residents (129 new residents last year). This translates into an annual growth rate of 0.9 percent per year during the last four years, well above the state (0.1 percent) and close to the national average of 1.0 percent per year. Hardy County’s median age matched the state in 2000, at 38.9 years, but was well above the national average of 35.3 years. The county contains relatively large concentrations of residents in the 45-64 and 6584 age groups, with 38.7 percent of residents in these age groups. This is similar to the state share but is well above the national average of 32.9 percent. Hardy County construction has been very volatile during the 1999-2005 period, according to data from F.W. Dodge. This has been driven by large infrastructure projects in the region, reflecting activity related to Corridor H. Residential construction activity has gradually trended upward since 2001, reflecting population growth and low mortgage rates. It may also reflect increased activity in second home construction. According to Census 2000, 20.0 percent of homes in the county were for seasonal, recreational, or occasional use, compared to 4.5 percent for the state and 3.3 percent for the nation. That ranked Hardy County 6th in the state in 2000. 2 Hardy County Labor Market Summary Table 1 Summary Data for Hardy County Hardy County 6,633 2.4 $24,722 Nonfarm Jobs (Thous., 2005)* Annual Job Growth (2001-2005, %) Average Annual Wage Per Worker (2005) Job Turnover Rate (Four Qtr. Avg., %)** Unemployment Rate (2005, %) Labor Force Participation Rate (2000, %)*** Potomac Highlands Cumberland Region MSA 23,236 37,369 0.3 0.4 $26,835 $28,635 -4.5 59.8 -5.8 57.9 -2.8 67.6 13,287 0.9 38.9 81,857 0.6 -- 100,667 -0.2 39.1 116,267 2.3 -- 12.5 70.3 15.4 74.2 20.2 80.0 23.0 76.4 19.2 75.2 30.7 80.4 $22,551 $22,480 $23,907 $28,735 $25,792 $33,050 Farm Cash Receipts (2004, $Mil, Livestk & Crops) $109.2 $236.7 $14.5 $44.1 *Quarterly Covered Employment and Wages (QCEW) **Per quarter, from third quarter 2004 to third quarter 2005. Data for MSAs are W.Va. part only. ***Estimated based on institutionalized population for all ages. ^percent of population age 25 and older. Potomac Highlands Region includes Grant, Hampshire, Hardy, Mineral, and Pendleton counties in W.Va. Cumberland MSA includes Mineral County, W.Va. and Allegany County, Md. Winchester MSA includes Hampshire County, W.Va., Frederick County, Va., and Winchester City, Va. $467.2 $250,737.3 Share of residents with: Associates Degree or More (2000, %)^ High School Degree or More (2000, %)^ Per Capita Personal Income (2004) Nonfarm Employment Shares 2005 Hardy County, W.Va., and U.S. 700,000 Hardy W.Va. 6,500 Manufacturing 680,000 6,000 Hardy Average Employment Hardy W.Va. U.S. Financial Activities Prof. & Bus. Serv. Ed. & Health Services 660,000 5,500 640,000 5,000 620,000 4,500 600,000 4,000 Leisure & Hosp. 580,000 3,500 Other Services Government 560,000 3,000 0 10 20 30 40 Percent Source: Employment and Wages, Workforce WV 50 60 2,500 1980 W.Va. Average Employment Trade, Trans., & Util. Information -5.1 64.9 1,816,856 296,410,404 0.10 1.0 38.9 35.3 7,000 Construction • 9.8 5.0 55.3 Employment Trends in Hardy County and W.Va. Nat. Res. & Mining • W.Va. U.S. 695,300 131,595,637 0.3 0.4 $31,344 $40,671 8.7 3.7 64.0 Population (2005) Annual Population Growth (2000-2005, %) Median Age (2000) • Winchester MSA 54,055 1.8 $33,788 1985 1990 1995 2000 540,000 2005 Source: Employment and Wages, Workforce WV Manufacturing dominates the Hardy County employment mix, accounting for 54.0 percent of nonfarm employment. Hardy County manufacturing is dominated by poultry processing, with Pilgrim’s Pride Corporation of West Virginia the largest employer in the county in March 2006, but wood products activity also accounts for a significant share of nonfarm jobs. Since 1980, nonfarm employment in Hardy County has grown at an average annual rate of 3.7 percent, much higher than the West Virginia rate of 0.5 percent. WVU Bureau of Business and Economic Research 3 Total Wages per Worker in Hardy County, W.Va., and U.S. Annual Wages per Worker 2005 Hardy County, W.Va., and U.S. $45,000 Total Hardy W.Va. U.S. Nat. Res. & Mining Construction Hardy W.Va. U.S. $40,000 $35,000 Manufacturing $30,000 Trade, Trans., & Util. Information $25,000 Financial Activities $20,000 Prof. & Bus. Serv. Ed. & Health Services $15,000 Leisure & Hosp. $10,000 Other Services Government $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $5,000 1980 1985 • 2000 Average New Hire Earnings Hardy County and W.Va. Average New Hire Earnings Hardy County and W.Va. Average from 2004Q3 to 2005Q3 Average from 2004Q3 to 2005Q3 $4,000 $4,000 Hardy W.Va. $3,500 $3,000 Monthly Earnings Monthly Earnings $2,500 $2,000 $1,500 $0 $0 g e e g g g es on on rin Trad Trad usin nin tiliti cti ati & tu Mi il U tru le ho form nce ac re ns uf sa e ta n a a o n I e R l in C W F Ma ho & W s. an Tr Source: Quarterly Workforce Indicators, U.S. Census Bureau *Not Available • $1,500 * * r., $2,000 $500 $500 in nt Hu $2,500 $1,000 $1,000 h& F is Hardy W.Va. $3,500 $3,000 Fo 1995 In 2005, the average annual wage per worker in Hardy County was $24,722, well below the West Virginia ($31,344) and U.S. ($40,671) levels. Annual wages in Hardy County are below the U.S. level in every sector and below West Virginia in every sector except professional and business services in 2005. • ., Ag 1990 Source: Workforce WV Source: Employment and Wages, Workforce WV . Ins . . . . t. n. nt te st. rv od rv ec ch mi me Mgm . Se As t., R Fo sta , Te Se Ad & al ge d er lE i. e i n . t a a c E h n c E b t s n io O Re So rts, ., S Pu Ma , Wa at of t A od e& Pr or ar om C pp c u h S Ac al t n., He mi Ad Source: Quarterly Workforce Indicators, U.S. Census Bureau *Not Available Across all industries, Hardy County new hire earnings, at $1,493.00 per month, are well below the West Virginia average of $1,747.75. New hire earnings are higher than the comparable state level in agriculture, forestry and fishing; construction; administrative, support and waste management; and other services in Hardy County • 4 Hardy County Labor Market Summary 2005 Unemployment Rate Trends in Hardy County, W.Va., and U.S. Labor Force Participation Rates Census 2000 20.0 100 Hardy W.Va. U.S. 17.5 80 72.1 69.4 12.5 64.0 10.0 7.5 58.8 60 Percent Percent 15.0 Total Male Female 64.9 62.9 58.2 55.3 48.3 40 5.0 20 2.5 0.0 1980 1985 1990 1995 2000 2005 0 Hardy W.Va. U.S. Source: U.S. Bureau of Labor Statistics, Workforce WV • • • In 2005, Hardy County’s unemployment rate was 3.7 percent, well below the West Virginia (5.0 percent) and U.S. (5.1 percent) rate. Hardy County’s labor force participation rate of 64.0 percent is much higher than the West Virginia average of 55.3 percent, but just below the national average of 64.9 percent. At 58.8 percent, Hardy County’s female labor force participates at a higher rate than both the West Virginia (48.3 percent) and U.S. (58.2 percent) averages. Hardy County Employment and Unemployment Potomac Highlands Region Labor Force Growth by County 1980-2005 8,000 7,000 Grant -120 6,000 3,730 Hampshire 5,000 Employment Unemployment 4,000 2,200 Hardy 3,000 1,000 0 1980 • • 800 Pendleton 1985 1990 1995 Source: Workforce WV • 2,410 Mineral 2,000 2000 2005 -1,000 0 1,000 2,000 3,000 4,000 5,000 Source: Workforce WV Hardy County’s labor force has increased by 2,200 since 1980, with growth driven by gains in resident employment. The labor force includes both employed residents, as well as unemployed residents that are actively seeking work. The growth in Hardy County’s labor force accounted for 24.4 percent of gains in the Potomac Highlands Region. WVU Bureau of Business and Economic Research 5 Turnover Rates Hardy County and W.Va. Turnover Rates Hardy County and W.Va. Average from 2004Q3 to 2005Q3 Average from 2004Q3 to 2005Q3 35.0 35.0 Hardy W.Va. 30.0 25.0 Percent 25.0 Percent Hardy W.Va. 30.0 20.0 15.0 20.0 15.0 10.0 10.0 5.0 5.0 * * 0.0 0.0 A is ., F or F , g. h& . t t. e v. v. c. h. n. od en mt ss er er tat Tec mi Re Fo em e Mg d. S ial A r S . Ad Es , t. , . & g e l i n a t a c E h n c b E s n Ot Re ti o So rts, ., S Pu Ma , Wa of da A rt e& Pr mo ar po o C p c h Su Ac alt n., He mi d A Source: Quarterly Workforce Indicators, U.S. Census Bureau . s e e g n g n g Ins ing inin ilitie tio tio rin Trad Trad usin nt & tu uc M ma l o Ut Hu str fac sale etai eh nfor ance r n u a I R Co Man hole W Fin & W s. an r T Source: Quarterly Workforce Indicators, U.S. Census Bureau *Not Available • *Not Available Across all industries, the turnover rate in Hardy County is 8.7 percent, compared to 9.8 percent for West Virginia. Hardy County recorded the highest turnover rates in real estate; administrative, support and waste management (which includes call centers); mining; arts, entertainment, and recreation; and construction. The turnover rate is computed by summing the number of job accessions and job separations per quarter, dividing this sum by two, and then dividing by the number of jobs. • • Hardy County School Enrollment and Graduates Educational Attainment Census 2000 2,500 2,000 13.2 Less than 9 10.0 7.5 Graduates Enrollment 16.5 14.8 9-12, no diploma 1,500 12.1 44.6 High school & equiv. 39.4 28.6 1,000 13.2 Some college, no degree 16.6 21.0 Hardy W.Va. U.S. 3.0 Associate's degree 4.3 6.3 5.7 Bachelor's degree 500 8.9 15.5 0 3.8 Grad. or prof. degree 5.9 8.9 0 10 20 30 40 Percent • 50 -19 98 19 99 -20 99 19 00 0 20 1 00 0-2 -2 01 20 2 00 -20 02 20 03 0 20 4 00 3-2 -2 04 20 5 00 20 0 -20 05 6 Source: West Virginia Department of Education *Pre-kindergarden through grade 12. In 2000, 9.4 percent of Hardy County residents held a Bachelor’s degree or higher level of education. This is lower than the state average of 14.8 percent and much lower than the national rate of 24.4 percent. During the 2005-2006 school year, school enrollment in Hardy County hit 2,293 with 139 graduates. • 6 Hardy County Labor Market Summary Population Age Distribution Census 2000 Population Trends in Hardy County and W.Va. 35 Hardy W.Va. U.S. 30 14,000 2,000,000 Hardy W.Va. 13,000 1,950,000 12,000 1,900,000 11,000 1,850,000 10,000 1,800,000 9,000 1,750,000 20 15 10 W.Va. Residents Percent 25 5 0 r de Un ea 5y • • rs 5t o1 7 s ar ye t 18 o2 4 s ar ye t 25 o4 4y e s ar t 45 o6 4y e s ar t 65 o8 4y 8 e s ar d an rs ea y 5 o r ve 8,000 1969 1975 1981 1987 1993 Source: U.S. Census Bureau Similar to the U.S. and West Virginia, the bulk (28.8 percent) of Hardy County’s population is located in the 25 to 44 year old age range. Hardy County’s second largest concentration occurs in the 45 to 64 age range at 25.4 percent, more than both West Virginia and the U.S. Since 1969 the population in Hardy County has grown at an average annual rate of 1.1 percent, much higher than the West Virginia average annual growth rate and similar to the national rate. Hardy County, W.Va. Value of Construction Starts by Type Hardy County and W.Va. Total Value of Construction Starts F.W. Dodge F.W. Dodge Hardy W.Va. $140,000 $2,700,000 $120,000 $100,000 $2,450,000 $80,000 $2,200,000 $60,000 $1,950,000 $40,000 $1,700,000 $20,000 $1,450,000 • • • 2000 2001 2002 2003 2004 $1,200,000 2005 West Virginia in Thousands Hardy County in Thousands $120,000 $2,950,000 Nonresidential Residential Nonbuilding $100,000 Thousands $140,000 $0 1999 1,700,000 2005 1999 $80,000 $60,000 $40,000 $20,000 $0 1999 2000 2001 2002 2003 2004 Total construction value in Hardy County has fluctuated greatly in the last 6 years, with a low of $10.4 million in 2003 and a high of $132.0 million in 2000. Over the last 6 years, Hardy County construction has been dominated by the nonbuilding sector, with little activity in the nonresidential sector. Residential construction in Hardy County has risen from $9.6 million in 2003 to $18.6 million in 2005, reflecting strong population growth and low mortgage interest rates. According to Census 2000, 20.0 percent of homes in the county were for seasonal, recreational, or occasional use, compared to 4.5 percent for the state and 3.3 percent for the nation. That ranked Hardy County 6th in the state in 2000. WVU Bureau of Business and Economic Research 7 2005 Farm Cash Receipts in Hardy County Farm Employment Shares in Hardy County and W.Va. $120,000 16 Hardy County W.Va. 14 Livestock and Products Crops $100,000 12 Thousands Percent $80,000 10 8 6 $60,000 $40,000 4 $20,000 2 0 $0 1969 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Bureau of Economic Analysis • • Work County Hardy County, WV Grant County, WV Frederick County, VA Shenandoah County, VA Rockingham County, VA Hampshire County, WV Harrisonburg city VA Winchester city VA Fairfax County, VA 1989 1994 1999 2004 Top Commuting Sources for Hardy County Jobs, 2000 Number of Employed Residents As a Percentage of Hardy Traveling to Work County County Employed Residents 4,150 69.0 312 5.2 284 4.7 237 3.9 217 3.6 155 2.6 136 2.3 135 2.2 81 1.3 Total 6,012 Source: U.S. Census Bureau, Population Division, Journey-To-Work & Migration Statistics Branch, Census 2000. Tabulation by the Bureau of Business and Economic Research, West Virginia University 100.0 Residence County Hardy County, WV Grant County, WV Hampshire County, WV Mineral County, WV Pendleton County, WV Allegany County, MD Total Counties with 1.0 percent or more Number of Workers Traveling From Residence County 4,150 940 467 348 177 104 As a Percentage of Hardy County Workers 65.4 14.8 7.4 5.5 2.8 1.6 6,344 100.0 According to data from Census 2000, 1,862 Hardy County residents commute to work outside the county, while 2,194 residents of other counties commute into Hardy County for work. Grant County draws the most Hardy County residents. It also sends the most workers to jobs in the county. Top 10 Largest Employers in Hardy County March 2006 Rank 1984 In 2004, 9.1 percent of Hardy County’s full and part-time employment was in the farm sector, more than the West Virginia average of 2.6 percent. Cash receipts from livestock and products (primarily poultry) accounted for nearly all of farming receipts in Hardy County in 2004, with a total of $107.2 million. Counties with 1.0 percent or more • 1979 Source: Bureau of Economic Analysis Top Commuting Destinations for Hardy County Residents, 2000 • 1974 Company Name 1 Pilgrim's Pride Corporation of West Virginia 2 American Woodmark Corporation 3 Hardy County Board of Education 4 Wal-Mart Associates, Inc. 5 CPBEC, Inc. 6 South Branch Inn, Inc. 7 Summit Financial Group, Inc. 8 Eastern West Virginia Community & Technical College 9 E.A. Hawse Continuous Care Center 10 Carmir, Inc. Source: Workforce WV Industrial, Business, and Technology Parks in Hardy County Name City Baker Industrial Park Baker Wardensville Industrial Park Wardensville Robert C. Byrd-Hardy County Industrial Park Moorefield Source: West Virginia Development Office *Location to nearest interstate or four lane highway. Miles to Highway* 30 18 45 Total Acreage 30 29.46 61.34