NE Ohio fares well in study of economy

When adjusted for cost of living, local income statistics aren’t so bad.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

The Mahoning Valley isn’t as poor as some statistics show.

In fact, it’s almost average if you use a calculation developed by a regional economic development group based in Cleveland.

Team NEO combines per capita personal income — where the Valley ranks last in the nation — with cost of living — where the Valley ranks first in affordability.

The result is income adjusted for cost of living. The Valley comes in at No. 20 among 35 cities studied, sandwiched between Boston and Washington, D.C.

The ranking is one of the items highlighted in Team NEO’s quarterly economic report, which was released today.

Tom Waltermire, Team NEO chief executive, said the quarterly report always has some features that go against the negative perceptions that some people hold about the 16-county region.

The group recalculated personal income rankings because it thinks they should go hand-in-hand with cost-of-living issues, such as housing costs. Northeast Ohio residents are paid less than residents in some cities, but they also have to spend less, Waltermire said.

The cities’ rankings were adjusted on a percentage basis, depending on how close they were to the national average for cost of living.

The result is that Houston was at the top of the list with an adjusted personal income of about $49,000 a year and Los Angeles was at the bottom at about $26,000.

Rankings for Northeast Ohio metropolitan areas were: Cleveland, No. 11, $43,000; Akron, No. 16, $41,000; Youngstown-Warren, No. 20, $39,000; and Canton, No. 23, $37,000.

In other matters, the report showed that the economy in Northeast Ohio grew slightly last year. It estimates that the gross regional product — the value of all goods and services produced — increased by 0.7 percent.

The report noted that GRP has increased in 14 of the past 15 years, with 2001 being the lone exception.

“We continue to be long-term bullish on the transformation of our economy,” Waltermire said.

He added, however, that the first half of 2008 will be a challenge because of national issues, such as the higher cost of oil and problems in credit markets.

Waltermire noted that higher-paying jobs are growing faster than lower-paying jobs in the region. The number of jobs in occupations that pay above average in the region has increased 10 percent since 1992, while the number of below-average-wage jobs is up 6 percent. The average wage is $37,800.

While some occupations, such as production workers, are suffering a loss of jobs, opportunities exist elsewhere if people are willing to retrain, he said.

Production workers, for example, can train to become health-care practitioners or technicians, which have a higher average pay. In addition, manufacturing companies continue to report that they need skilled workers, such as machinists, he said.

shilling@vindy.com