A regional economic divide within the county
In March, the Coos Index fell for the 11
th consecutive month on a monthly year-over-year basis. The percentage decline was the largest since October 2009. All five indicators fell on a monthly year-over-year basis. The tourism industry continued to suffer from the unusually warm weather, which ended the ski season early. The manufacturing sector showed no signs of rebound from the recent plunge. However, not all regions within the county are equally affected by the county’s economic woes. The NH Economic and Labor Market Information Bureau’s Quarterly Census of Employment and wages indicates a clear divide in economic performance between the two major labor market areas (LMA) within the County – Berlin and Colebrook. Unlike its neighbors in the County, Colebrook was up from the pre-recession level in terms of employment and number of worksites as of 3
rd quarter 2011. From 3
rd quarter 2007 to 3
rd quarter 2011, total employment rose by 1.3% in the Colebrook LMA, while it fell by more than 15% in the Berlin LMA. During the same period, the number of worksites rose in the Colebrook LMA by 3.3%, while it fell by 5.1% in the Berlin LMA. Since the Berlin LMA is about three times larger than its Colebrook counterpart in terms of employment, its struggle manifests itself in the county-wide economic indicators. The Colebrook labor market area, the northernmost LMA, includes Colebrook, Stewartstown, Pittsburg, Columbia, Clarksville and Dixville, while the Berlin LMA includes Berlin, Gorham, Milan and other small towns.
In March, the State economy continued to grow at a meager pace. The economic growth stalled at a measly 0.8% for past four months. The state’s employers appeared to add jobs at a much slower pace; the growth of the number of employed residents slowed to a crawl on a month-to-month basis. The manufacturing sector remained a major drag on the recovery; industrial electricity sales fell six months in a row on a monthly year-over-year basis. The economy remained vulnerable.
The real estate market analysis can be found at the end of this report.
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Overcast. Haze. Temperature: 64; Wind: Calm; Conditions as of Fri May 25 at 10:00 PM EDT courtesy of The PSU Weather Center
