OCS Study 

MMS 2008-052 

 

Benefits and Burdens of OCS Activities 

on States, Labor Market Areas, Coastal 

Counties, and Selected Communities 

U.S. Department of the Interior

Minerals Management Service 

Gulf of Mexico OCS Region 
U.S. Department of the Interior

Minerals Management Service 

Gulf of Mexico OCS Region 

OCS Study 

MMS 2008-052 

Benefits and Burdens of OCS Activities 

on States, Labor Market Areas, Coastal 

Counties, and Selected Communities 

Authors 

John S. Petterson 

Edward Glazier 

Laura Stanley 

Carson Mencken 

Karl Eschbach 

Patrick Moore 

Pamela Godde 

Prepared under MMS Contracts 

1435-01-98-CT-30899 

1435-01-00-CT-31066 

(M98PC0001) 

by 

Impact Assessment, Inc. 

2166 Avenida de la Playa, Suite F 

La Jolla, California 92037 

Published by 

New Orleans

November 2008 
iii

DISCLAIMER 

This report was prepared under contract between the Minerals Management Service (MMS) and 

Impact Assessment, Inc. This report has been technically reviewed by MMS and has been 

approved for publication. Approval does not signify that the contents necessarily reflect the 

view and policies of MMS, nor does mention of trade names or commercial products constitute 

endorsement or recommendation for use. It is, however, exempt from review and compliance 

with MMS editorial standards. 

REPORT AVAILABILITY 

Extra copies of the report may be obtained from the Public Information Office (Mail Stop 5034) 

at the following address: 

U.S. Dept. of the Interior 

Minerals Management Service 

Gulf of Mexico OCS Region 

Public Information Office (MS 5034) 

1201 Elmwood Park Boulevard 

New Orleans, Louisiana 70123-2394 

Telephone: 1-800-200-GULF or 

504-736-2519 

CITATION

Petterson, J.S., E. Glazier, L.D. Stanley, C. Mencken, K. Eschbach, P. Moore and P. Goode. 

2008. Benefits and burdens of OCS activities on states, labor market areas, coastal 

counties, and selected communities. U.S. Dept. of the Interior, Minerals Management 

Service, Gulf of Mexico OCS Region, New Orleans, LA. OCS Study MMS 2008-052. 

470 pp. 

ACKNOWLEDGMENTS

This report is based primarily on analysis of primary and secondary data collected in Gulf of 

Mexico coastal communities and counties. The project is indebted to the thousands of 

informants, leaders, librarians, and other sources of information on which the report is founded. 

As indicated in the title page, many researchers were involved in completing the analysis and 

report write-up, and their contribution to the quality of the final report is acknowledged and 

appreciated. Particular credit, however, must go to Dr. Harry Luton, the Contracting Officer’s 

Technical Representative, for guidance, recommendations, and analytic insight over the years of 

data collection and analysis, and to the efforts of Ms. Debra Vigil. Her tireless and careful 

reviews and edits of the many drafts and final version of this document made its publication 

possible. Any shortcomings, of course, remain the responsibility of Impact Assessment, Inc. and 

the Principal Investigator. 
v 

TABLE OF CONTENTS 

Page

LIST OF MAPS............................................................................................................................ ix 

LIST OF FIGURES ..................................................................................................................... xi 

LIST OF TABLES ................................................................................................................... xxiii 

I. INTRODUCTION AND OVERVIEW ............................................................................1 

A. Purpose of the Study ....................................................................................................1 

B. Objectives of the Report ..............................................................................................1 

C. Study Background........................................................................................................2 

1. Introduction..........................................................................................................2 

2. Early History of the Gulf of Mexico Oil Development .......................................2 

3. History of Shallow Water OCS Oil Development...............................................4 

4. History of Deepwater OCS Oil Development .....................................................4 

5. Distribution of Onshore Impacts..........................................................................5 

D. Structure of the Report.................................................................................................5 

1. State Profiles ........................................................................................................6 

2. Labor Market Analysis ........................................................................................6 

3. County and Parish Profiles ..................................................................................7 

II. TEXAS STATE PROFILE .............................................................................................11 

A. Introduction ...............................................................................................................11 

B. Built Environment......................................................................................................12 

C. History .......................................................................................................................18 

D. Demographic Characteristics.....................................................................................23 

E. Economy ....................................................................................................................24 

F. Local Government .....................................................................................................32 

G. Social Context............................................................................................................32

H. Issues of Concern.......................................................................................................34 

I. Texas Labor Market Area Profiles.............................................................................35 

1. Corpus Christi, Texas: Labor Market Area........................................................39 

2. Houston, Texas: Labor Market Area .................................................................62 

3. Beaumont, Texas: Labor Market Area...............................................................88 

III. LOUISIANA STATE PROFILE..................................................................................113 

A. Introduction .............................................................................................................113 

B. Built Environment....................................................................................................115 

C. History .....................................................................................................................117 

D. Demographic Characteristics...................................................................................121 

E. Economy ..................................................................................................................122

F. Local Government ...................................................................................................126 
vi 

G. Social Context..........................................................................................................127 

H. Issues of Concern.....................................................................................................130 

I. Louisiana Labor Market Area Profiles ....................................................................131 

1. Lake Charles, Louisiana: Labor Market Area..................................................134 

2. Lafayette, Louisiana: Labor Market Area........................................................154 

3. Lafourche, Louisiana: Labor Market Area ......................................................181 

4. New Orleans, Louisiana: Labor Market Area..................................................202 

 

IV. MISSISSIPPI STATE PROFILE.................................................................................229 

A. Introduction .............................................................................................................229 

B. Built Environment....................................................................................................231 

C. History .....................................................................................................................235 

D. Demographic Characteristics...................................................................................238 

E. Economy ..................................................................................................................239

F. Local Government ...................................................................................................244 

G. Social Context..........................................................................................................244 

H. Issues of Concern.....................................................................................................246 

I. Biloxi, Mississippi: Labor Market Area ..................................................................247 

V. ALABAMA STATE PROFILE....................................................................................267 

A. Introduction .............................................................................................................267 

B. Built Environment....................................................................................................269 

C. History .....................................................................................................................272 

D. Demographic Characteristics...................................................................................274 

E. Economy ..................................................................................................................275

F. Local Government ...................................................................................................280 

G. Social Context..........................................................................................................281 

H. Issues of Concern.....................................................................................................282 

I. Mobile, Alabama: Labor Market Area.....................................................................283 

VI. FLORIDA STATE PROFILE ......................................................................................305 

A. Introduction .............................................................................................................305 

B. Built Environment....................................................................................................307 

C. History .....................................................................................................................314 

D. Demographic Characteristics...................................................................................318 

E. Economy ..................................................................................................................320

F. Local Government ...................................................................................................327 

G. Social Context..........................................................................................................328 

H. Issues of Concern.....................................................................................................330 

I. Florida Labor Market Area Profiles.........................................................................330 

1. Introduction......................................................................................................330 

2. Recent Trends ..................................................................................................333 
vii 

3. Tourism and Retirement Age Population Concentration in the Florida 

 Gulf of Mexico LMAs .....................................................................................341 

4. Pensacola, Florida: Labor Market Area...........................................................346 

a. Introduction ............................................................................................346 

b. Setting.....................................................................................................346 

c. Unit of Analysis......................................................................................346 

5. Panama City, Florida: Labor Market Area ......................................................357 

a. Introduction ............................................................................................357 

b. Setting.....................................................................................................357 

c. Unit of Analysis......................................................................................357 

6. Tallahassee, Florida: Labor Market Area ........................................................367 

a. Introduction ............................................................................................367 

b. Setting.....................................................................................................367 

c. Unit of Analysis......................................................................................367 

7. Taylor, Florida: Labor Market Area ................................................................380 

a. Introduction ............................................................................................380 

b. Setting.....................................................................................................380 

c. Unit of Analysis......................................................................................380 

8. Dixie-Gainesville, Florida: Labor Market Area...............................................390 

a. Introduction ............................................................................................390 

b. Setting.....................................................................................................390 

c. Unit of Analysis......................................................................................392 

9. Citrus-Marion, Florida: Labor Market Area ....................................................402 

a. Introduction ............................................................................................402 

b. Setting ....................................................................................................402 

c. Unit of Analysis......................................................................................402 

10. Tampa Bay-St. Petersburg, Florida: Labor Market Area.................................412 

a. Introduction ............................................................................................412 

b. Setting.....................................................................................................412 

c. Unit of Analysis......................................................................................412 

11. Sarasota, Florida: Labor Market Area .............................................................422 

a. Introduction ............................................................................................422 

b. Setting.....................................................................................................422 

c. Unit of Analysis......................................................................................422 

12. Ft. Myers, Florida: Labor Market Area ...........................................................433 

a. Introduction ............................................................................................433 

b. Setting.....................................................................................................433 

c. Unit of Analysis......................................................................................433 

13. Monroe County, Florida: Miami-Dade Labor Market Area.............................443 

a. Introduction ............................................................................................443 

b. Setting.....................................................................................................443 

c. Unit of Analysis......................................................................................445 

BIBLIOGRAPHY........................................................................................................................451 
ix 

LIST OF MAPS 

Page

Map 1. Map of Study States and Labor Market Areas............................................................ 3 

Map 2. State of Texas Depicting Gulf of Mexico Labor Market Areas (and component 

counties).................................................................................................................... 13 

Map 3. Corpus Christi, Texas Labor Market Area ............................................................... 40 

Map 4. Houston, Texas Labor Market Area ......................................................................... 63 

Map 5. Beaumont, Texas Labor Market Area ...................................................................... 89 

Map 6. State of Louisiana Depicting Gulf of Mexico Labor Market Areas (and 

component parishes) ............................................................................................... 114 

Map 7. Lake Charles, Louisiana Labor Market Area ......................................................... 135 

Map 8. Lafayette, Louisiana Labor Market Area................................................................ 155 

Map 9. Lafourche, Louisiana Labor Market Area .............................................................. 182 

Map 10. New Orleans, Louisiana Labor Market Area.......................................................... 203 

Map 11. State of Mississippi Depicting Gulf of Mexico Labor Market Area (and 

component counties)............................................................................................... 230 

Map 12. Biloxi, Mississippi Labor Market Area .................................................................. 248 

Map 13. State of Alabama Depicting Gulf of Mexico Labor Market Areas (and 

component counties)............................................................................................... 268 

Map 14. Mobile, Alabama Labor Market Area .................................................................... 284 

Map 15. State of Florida Depicting Gulf of Mexico Labor Market Areas (and component 

counties).................................................................................................................. 306 

Map 16. Pensacola, Florida Labor Market Area................................................................... 347 

Map 17. Panama City, Florida Labor Market Area .............................................................. 358 

Map 18. Tallahassee, Florida Labor Market Area ................................................................ 368 

Map 19. Taylor, Florida Labor Market Area ........................................................................ 381 

Map 20. Dixie-Gainesville, Florida Labor Market Area....................................................... 391 

Map 21. Citrus-Marion, Florida Labor Market Area ............................................................ 403 

Map 22. Tampa Bay-St. Petersburg, Florida Labor Market Area......................................... 413 

Map 23. Sarasota, Florida Labor Market Area ..................................................................... 423 

Map 24. Ft. Myers, Florida Labor Market Area ................................................................... 434 

Map 25. Monroe County, Florida Miami-Dade Labor Market Area .................................... 444 
xi 

LIST OF FIGURES

Page

TEXAS STATE PROFILE 

Figure 1. Crude Oil Prices, U.S. Average (price per barrel in 1998 dollars): 1969-1998........ 37 

CORPUS CHRISTI LMA 

Figure 1. Major Industry Employment, Corpus Christi LMA: 1940-2000.............................. 41 

Figure 2. Total Annual Employment and Three-year Moving Averages, Corpus Christi 

LMA: 1969-2000 ...................................................................................................... 42 

Figure 3. Forecasting Analysis for Total Annual Employment, Corpus Christi LMA: 

1971-2000 ................................................................................................................. 43 

Figure 4. Annual Employment Growth for Major Industry Categories, Corpus Christi 

LMA: 1969-2000 ...................................................................................................... 44 

Figure 5. Forecasting Analysis for Annual Mining Employment, Corpus Christi LMA: 

1971-2000 ................................................................................................................. 45 

Figure 6. Forecasting Analysis for Annual Construction Employment, Corpus Christi 

LMA: 1971-2000 ...................................................................................................... 45 

Figure 7. Forecasting Analysis for Annual Manufacturing Employment, Corpus Christi 

LMA: 1971-2000 ...................................................................................................... 46 

Figure 8. Annual Employment for Fabricated Structural Metal Products, Corpus Christi 

LMA: 1964-1996 ...................................................................................................... 48 

Figure 9. Forecasting Analysis for Fabricated Structural Metal Products, Corpus 

Christi LMA: 1966-1996 .......................................................................................... 48 

Figure 10. Annual Employment for Oil Field Machinery Manufacturing, Corpus Christi 

LMA: 1964-1996 ...................................................................................................... 49 

Figure 11. Annual Employment for Ship and Boat Building and Repair, Corpus Christi 

LMA: 1964-1996 ...................................................................................................... 50 

Figure 12. Drilling Oil and Gas Wells, Corpus Christi LMA: 1964-1996 ................................ 50 

Figure 13. Forecasting Analysis for Drilling Oil and Gas Wells, Corpus Christi LMA: 

1966-1996 ................................................................................................................. 51 

Figure 14. Oil and Gas Field Exploration Services, Corpus Christi LMA: 1964-1996............. 52 

Figure 15. Oil and Gas Field Exploration Services (NEC), Corpus Christi LMA: 1964-

1996 .......................................................................................................................... 53 

Figure 16. Forecasting Analysis for Oil and Gas Field Services (NEC), Corpus Christi 

LMA: 1966-1996 ...................................................................................................... 53 
xii 

Figure 17. Annual Employment for Water Transportation, Corpus Christi LMA: 1964-

1996 .......................................................................................................................... 54 

Figure 18. Forecasting Analysis for Water Transportation, Corpus Christi LMA: 1966-

1996 .......................................................................................................................... 55 

Figure 19. Annual Employment for Wholesale Trade of Industrial Machinery and 

Equipment, Corpus Christi LMA: 1977-1996 .......................................................... 56 

HOUSTON LMA 

Figure 1. Major Industry Employment, Houston LMA: 1940-2000........................................ 64 

Figure 2. Total Annual Employment and Three-year Moving Averages, Houston LMA: 

1969-2000 ................................................................................................................. 66 

Figure 3. Forecasting Analysis for Total Annual Employment, Houston LMA: 1971-

2000 .......................................................................................................................... 67 

Figure 4. Forecasting Analysis for Annual Mining Employment, Houston LMA: 1971-

2000 .......................................................................................................................... 67 

Figure 5. Forecasting Analysis for Annual Construction Employment, Houston LMA: 

1971-2000 ................................................................................................................. 68 

Figure 6. Forecasting Analysis for Annual Manufacturing Employment, Houston 

LMA: 1971-2000 ...................................................................................................... 68 

Figure 7. Forecasting Analysis for Annual Transportation, Communication, and Public 

Utilities Employment, Houston LMA: 1971-2000................................................... 69 

Figure 8. Drilling Oil and Gas Wells, Houston LMA: 1964-1996 .......................................... 71 

Figure 9. Forecasting Analysis for Drilling Oil and Gas Wells, Houston LMA: 1966-

1996 .......................................................................................................................... 72 

Figure 10. Oil and Gas Field Exploration Services, Houston LMA: 1964-1996....................... 72 

Figure 11. Forecasting Analysis for Oil and Gas Field Exploration Services, Houston 

LMA: 1966-1996 ...................................................................................................... 73 

Figure 12. Oil and Gas Field Services, Houston LMA: 1964-1996........................................... 74 

Figure 13. Forecasting Analysis for Oil and Gas Field Services, Houston LMA: 1966-

1996 .......................................................................................................................... 74 

Figure 14. Annual Employment for Fabricated Structural Metal Products, Houston 

LMA: 1964-1996 ...................................................................................................... 75 

Figure 15. Forecasting Analysis for Fabricated Structural Metal Products, Houston 

LMA: 1966-1996 ...................................................................................................... 76 

Figure 16. Annual Employment for Manufacture of Oil Field Machinery, Houston 

LMA: 1966-1996 ...................................................................................................... 77 

Figure 17. Forecasting Analysis for Manufacture of Oil Field Machinery, Houston 

LMA: 1966-1996 ...................................................................................................... 77 
xiii 

Figure 18. Annual Employment for Ship and Boat Building and Repair, Houston LMA: 

1964-1996 ................................................................................................................. 78 

Figure 19. Forecasting Analysis for Ship and Boat Building and Repair, Houston LMA: 

1964-1996 ................................................................................................................ 79 

Figure 20. Annual Employment for Water Transportation, Houston LMA: 1964-1996 ........... 80 

Figure 21. Forecasting Analysis for Water Transportation, Houston LMA: 1966-1996........... 80 

Figure 22. Annual Employment for Wholesale Trade of Industrial Machinery and 

Equipment, Houston LMA: 1977-1996.................................................................... 81 

BEAUMONT LMA 

Figure 1. Major Industry Employment, Beaumont LMA: 1940-2000..................................... 90 

Figure 2. Total Annual Employment, Beaumont LMA: 1969-2000........................................ 92 

Figure 3. Total Annual Employment and Three-year Moving Averages, Beaumont 

LMA: 1971-2000 ...................................................................................................... 93 

Figure 4. Forecasting Analysis for Total Annual Employment, Beaumont LMA: 1971-

2000 .......................................................................................................................... 93 

Figure 5. Major Industry Employment Patterns, Beaumont LMA: 1969-2000....................... 94 

Figure 6. Percent Change in Employment, Beaumont LMA:1981-1986 ................................ 95 

Figure 7. Total Annual Employment and Three-year Moving Averages for 

Manufacturing, Beaumont LMA: 1971-2000........................................................... 96 

Figure 8. Forecasting Analysis for Manufacturing Employment, Beaumont LMA: 

1971-2000 ................................................................................................................. 96 

Figure 9. Total Annual Employment for Mining, Beaumont LMA: 1969-2000 ..................... 97 

Figure 10. Total Annual Employment and Three-year Moving Averages for Fabricated 

Structural Metal Products (manufacturing), Beaumont LMA: 1971-2000 ............ 100 

Figure 11. Forecasting Analysis for Fabricated Structural Metal Products 

(manufacturing), Beaumont LMA: 1966-1996....................................................... 100 

Figure 12. Total Annual Employment and Three-year Moving Averages for Oil Field 

Machinery (manufacturing), Beaumont LMA: 1971-2000 .................................... 101 

Figure 13. Forecasting Analysis for Oil Field Machinery (manufacturing), Beaumont 

LMA: 1966-1996 ................................................................................................... 101 

Figure 14. Total Annual Employment and Three-year Moving Averages for Ship and 

Boat Building and Repair, Beaumont LMA: 1971-2000........................................ 102 

Figure 15. Forecasting Analysis for Ship and Boat Building and Repair, Beaumont 

LMA: 1966-1996 .................................................................................................... 102 

Figure 16. Oil and Gas Well Drilling and Field Exploration Services, Beaumont LMA: 

1966-1996 ............................................................................................................... 103 
xiv 

Figure 17. Total Annual Employment and Three-year Moving Averages for Water 

Transportation, Beaumont LMA: 1966-1995 ........................................................ 104 

Figure 18. Forecasting Analysis for Water Transportation, Beaumont LMA: 1966-

1996 ....................................................................................................................... 104

Figure 19. Wholesale Trade of Industrial Machinery and Equipment, Beaumont LMA: 

1977-1996 ............................................................................................................... 105 

LOUISIANA STATE PROFILE 

Figure 1. Crude Oil Prices, U.S. Average (price per barrel in 1998 dollars): 1969-1998...... 132 

LAKE CHARLES LMA 

Figure 1. Total Annual Employment and Three-year Moving Averages, Lake Charles 

LMA: 1969-2000 .................................................................................................... 137 

Figure 2. Forecasting Analysis, Lake Charles LMA: 1971-2000 .......................................... 138 

Figure 3. Employment by Major Industry Category, Lake Charles LMA: 1971-1997 ......... 139 

Figure 4. Forecasting Analysis for Mining Employment, Lake Charles LMA: 1971-

2000 ........................................................................................................................ 140 

Figure 5. Forecasting Analysis for Construction Employment, Lake Charles LMA: 

1971-2000 ............................................................................................................... 140 

Figure 6. Forecasting Analysis for Manufacturing Employment, Lake Charles LMA: 

1971-2000 ............................................................................................................... 141 

Figure 7. Forecasting Analysis for Transportation Employment, Lake Charles LMA: 

1971-2000 ............................................................................................................... 141 

Figure 8. Annual Employment for Ship and Boat Building and Repair, 

(manufacturing), Lake Charles LMA: 1964-1996.................................................. 143 

Figure 9. Forecasting Analysis for Ship and Boat Building and Repair, 

(manufacturing), Lake Charles LMA: 1964-1996 ................................................. 144 

Figure 10. Parish Earnings in Key Nondurable Goods Manufacturing Sectors, Calcasieu 

Parish: 1969-1996................................................................................................... 144 

Figure 11. Drilling Oil and Gas Wells, Lake Charles LMA: 1964-1996................................. 145 

Figure 12. Forecasting Analysis for Drilling Oil and Gas Wells, Lake Charles LMA: 

1966-1995 ............................................................................................................... 146 

Figure 13. Oil and Gas Field Services, Lake Charles LMA: 1964-1996................................. 146 

Figure 14. Forecasting Analysis for Oil and Gas Field Services, Lake Charles LMA: 

1966-1996 ............................................................................................................... 147 

Figure 15. Annual Employment for Water Transportation, Lake Charles LMA: 1964-

1996 ........................................................................................................................ 148 
xv 

Figure 16. Forecasting Analysis for Water Transportation, Lake Charles LMA: 1966-

1996 ........................................................................................................................ 148 

Figure 17. Wholesale Trade of Industrial Machinery and Equipment, Lake Charles 

LMA: 1977-1996 .................................................................................................... 149 

LAFAYETTE LMA

Figure 1. Major Industry Employment, Lafayette LMA: 1940-2000 .................................... 156 

Figure 2. Annual Employment and Three-year Moving Averages, Lafayette LMA: 

1971-2000 ............................................................................................................... 158 

Figure 3. Forecasting Analysis, Lafayette LMA: 1971-2000 ................................................ 159 

Figure 4. Employment by Industry Sector, Lafayette LMA: 1969-1999............................... 159 

Figure 5. Employment Growth and Percent Change by Industry Sector, Lafayette 

LMA: 1977-1982, Inclusive ................................................................................... 160 

Figure 6. Employment Growth and Percent Change by Industry Sector, Lafayette 

LMA: 1982-1988, Inclusive ................................................................................... 161 

Figure 7. Employment Trends for Mining Employment, Lafayette LMA: 1971-2000 ......... 162 

Figure 8. Forecasting Analysis for Mining Employment, Lafayette LMA: 1971-2000 ........ 162 

Figure 9. Employment Trends for Manufacturing Employment, Lafayette LMA: 1971-

2000 ........................................................................................................................ 163 

Figure 10. Forecasting Analysis for Manufacturing Employment, Lafayette LMA: 1971-

2000 ........................................................................................................................ 163 

Figure 11. Annual Employment in Fabricated Structural Metal Products, Lafayette 

LMA:1966-1996 ..................................................................................................... 166 

Figure 12. Employment in Oil Machinery (manufacturing), Lafayette LMA: 1966-1996...... 167 

Figure 13. Forecasting Analysis for Oil Field Machinery (manufacturing), Lafayette 

LMA: 1966-1996. ................................................................................................... 167 

Figure 14. Annual Employment for Ship and Boat Building and Repair, Lafayette LMA: 

1966-1996 ............................................................................................................... 168 

Figure 15. Forecasting Analysis for Ship and Boat Building and Repair, Lafayette LMA: 

1966-1996 .............................................................................................................. 169 

Figure 16. Annual Employment for Oil and Gas Exploration Services, Lafayette LMA: 

1966-1996 ............................................................................................................... 170 

Figure 17. Forecasting Analysis for Oil and Gas Exploration Services, Lafayette LMA: 

1966-1996 ............................................................................................................... 170 

Figure 18. Annual Employment for Oil and Gas Field Services, Lafayette LMA: 1966-

1996 ........................................................................................................................ 171 
xvi 

Figure 19. Forecasting Analysis for Oil and Gas Field Services, Lafayette LMA: 1966-

1996 ........................................................................................................................ 172 

Figure 20. Annual Employment for Water Transportation, Lafayette LMA: 1966-1996 ....... 173 

Figure 21. Forecasting Error Analysis for Water Transportation, Lafayette LMA: 1966-

1996 ........................................................................................................................ 173 

Figure 22. Annual Employment for Wholesale Trade of Industrial Machinery and 

Equipment, Lafayette LMA: 1977-1996 ................................................................ 174 

LAFOURCHE LMA

Figure 1. Major Industry Employment, Lafourche LMA: 1940-2000................................... 183 

Figure 2. Total Annual Employment, Lafourche LMA: 1969-2000...................................... 184 

Figure 3. Total Annual Employment and Three Year Moving Averages, Lafourche 

LMA: 1971-2000 .................................................................................................... 185 

Figure 4. Forecasting Analysis for Annual Employment, Lafourche LMA: 1971-2000....... 185 

Figure 5. Major Industry Employment Patterns, Lafourche LMA: 1969-2000..................... 186 

Figure 6. Forecasting Analysis for Mining Employment, Lafourche LMA: 1971-2000....... 187 

Figure 7. Forecasting Analysis for Manufacturing Employment, Lafourche LMA: 

1971-2000 ............................................................................................................... 187 

Figure 8. Forecasting Analysis for Transportation and Utilities Employment, Lafourche 

LMA: 1971-2000 .................................................................................................... 188 

Figure 9. Annual Employment in Fabricated Structural Metal Products 

(manufacturing), Lafourche LMA: 1964-1996....................................................... 190 

Figure 10. Forecasting Analysis for Fabricated Structural Metal Products 

(manufacturing), Lafourche LMA: 1966-1996....................................................... 190 

Figure 11. Annual Employment in Oil Field Machinery (manufacturing), Lafourche 

LMA: 1964-1996 .................................................................................................... 191 

Figure 12. Forecasting Analysis for Oil Field Machinery (manufacturing), Lafourche 

LMA: 1966-1996. ................................................................................................... 191 

Figure 13. Annual Employment for Ship and Boat Building and Repair, Lafourche 

LMA: 1964-1996 .................................................................................................... 192 

Figure 14. Forecasting Analysis for Ship and Boat Building and Repair, Lafourche 

LMA: 1966-1996 ................................................................................................... 192 

Figure 15. Annual Employment in Drilling Oil and Gas Wells, Lafourche LMA: 1964-

1996 ........................................................................................................................ 193 

Figure 16. Forecasting Analysis for Drilling Oil and Gas Wells, Lafourche LMA: 1966-

1996 ........................................................................................................................ 193 
xvii 

Figure 17. Annual Employment in Oil and Gas Field Exploration Services, Lafourche 

LMA: 1964-1996 .................................................................................................... 194 

Figure 18. Annual Employment in Oil and Gas Field Services, Lafourche LMA: 1964-

1996 ........................................................................................................................ 195 

Figure 19. Forecasting Analysis for Oil and Gas Field Services, Lafourche LMA: 1966-

1996 ........................................................................................................................ 195 

Figure 20. Annual Employment for Water Transportation, Lafourche LMA: 1964-1996 ...... 196 

Figure 21. Forecasting Analysis for Water Transportation, Lafourche LMA: 1966-

1996 ........................................................................................................................ 197 

Figure 22. Annual Employment for Wholesale Trade of Industrial Machinery and 

Equipment, Lafourche LMA: 1977-1996 ............................................................... 197 

NEW ORLEANS LMA 

Figure 1. Major Industry Employment, New Orleans LMA: 1940-2000 .............................. 205 

Figure 2. Total Annual Employment Trends and Three-year Moving Averages, New 

Orleans LMA, 1969-2000....................................................................................... 207 

Figure 3. Forecasting Analysis for Total Employment, New Orleans LMA: 1971-2000...... 207 

Figure 4. Major Industry Annual Employment, New Orleans LMA: 

 1969-2000. ......................................................................................................... 208 

Figure 5. Forecasting Analysis for Mining Employment, New Orleans LMA: 1971-

2000 ........................................................................................................................ 209 

Figure 6. Forecasting Analysis for Construction, New Orleans LMA: 1971-2000 ............... 209 

Figure 7. Forecasting Analysis for Manufacturing, New Orleans LMA: 1971-2000............ 210 

Figure 8. Annual Employment for Fabricated Structural Metal Products, New Orleans 

LMA: 1964-1996 .................................................................................................... 212 

Figure 9. Forecasting Analysis for Fabricated Structural Metal Products, New Orleans 

LMA: 1966-1996 .................................................................................................... 212 

Figure 10. Annual Employment in Oil Field Machinery, New Orleans LMA: 1964-1996..... 213 

Figure 11. Forecasting Analysis for Oil Field Machinery, New Orleans LMA: 1966-

1996. ....................................................................................................................... 214 

Figure 12. Annual Employment for Ship and Boat Building and Repair, New Orleans 

LMA: 1964-1996 .................................................................................................... 215 

Figure 13. Annual Employment for Drilling Oil and Gas Wells, New Orleans LMA: 

1966-1996 ............................................................................................................... 215 

Figure 14. Annual Employment for Oil and Gas Field Services, New Orleans LMA: 

1964-1996 ............................................................................................................... 216 
xviii 

Figure 15. Forecasting Analysis for Oil and Gas Field Services, New Orleans LMA: 

1966-1996 ............................................................................................................... 216 

Figure 16. Annual Employment for Oil and Gas Field Services-NEC, New Orleans 

LMA: 1964-1996 .................................................................................................... 217 

Figure 17. Forecasting Analysis for Oil and Gas Field Services-NEC, New Orleans 

LMA: 1964-1994 .................................................................................................... 218 

Figure 18. Annual Employment for Water Transportation, New Orleans LMA: 1964-

1996 ........................................................................................................................ 219 

Figure 19. Forecasting Analysis for Water Transportation, New Orleans LMA: 1966-

1996 ........................................................................................................................ 219 

Figure 20. Annual Employment for Wholesale Trade of Industrial Machinery and 

Equipment, New Orleans LMA: 1964-1996 .......................................................... 220 

MISSISSIPPI STATE PROFILE 

BILOXI LMA 

Figure 1. Crude Oil Prices, U.S. Average: 1969-1998........................................................... 249 

Figure 2. Major Industry Employment, Biloxi LMA: 1940-2000 ......................................... 251 

Figure 3. Annual Employment, Biloxi LMA, 1969-2000...................................................... 252 

Figure 4. Forecasting Analysis for Employment, Biloxi LMA: 1971-1999 .......................... 253 

Figure 5. Total Employment by Major Industry Categories, Biloxi LMA: 1969-1999......... 254 

Figure 6. Annual Employment for Fabricated Structural Metal Products, Biloxi LMA: 

1964-1996 ............................................................................................................... 256 

Figure 7. Annual Employment for Ship and Boat Building and Repair, Biloxi LMA: 

1977-1996 ............................................................................................................... 256 

Figure 8. Annual Employment for Oil Field Machinery, Biloxi LMA: 1964-1996 .............. 257 

Figure 9. Annual Employment for Water Transportation, Biloxi LMA: 1964-1996............. 258 

Figure 10. Annual Employment for Wholesale Trade of Industrial Machinery and 

Equipment, Biloxi LMA: 1977-1996 ..................................................................... 259 

ALABAMA STATE PROFILE

MOBILE LMA 

Figure 1. Crude Oil Prices, U.S. Average: 1969-1998........................................................... 285 

Figure 2. Major Industry Employment, Mobile LMA: 1940-2000........................................ 287 

Figure 3. Total Annual Employment, Mobile LMA, 1970-1990........................................... 288 

Figure 4. Total Annual Employment and Three-year Moving Averages, Mobile LMA: 

1971-2000 ............................................................................................................... 290 
xix 

Figure 5. Forecasting Analysis for Employment, Mobile LMA: 1971-1999 ........................ 290 

Figure 6. Employment Growth by Industry, Mobile LMA: 1969-2000 ................................ 291 

Figure 7. Total Annual Employment and Three-year Moving Averages, Mobile LMA: 

1971-2000 ............................................................................................................... 292 

Figure 8. Forecasting Analysis for Manufacturing, Mobile LMA: 1971-1999 ..................... 292 

Figure 9. Annual Employment for Fabricated Structural Metal Products, Mobile LMA: 

1966-1996 ............................................................................................................... 294 

Figure 10. Forecasting Analysis for Fabricated Structural Metal Products 

manufacturing), Mobile LMA: 1966-1996............................................................. 295 

Figure 11. Annual Employment for Ship and Boat Building and Repair, Mobile LMA: 

1966-1996 ............................................................................................................... 296 

Figure 12. Forecasting Analysis for Ship and Boat Building and Repair, Mobile LMA: 

1966-1996 ............................................................................................................... 296 

Figure 13. Detailed Mining Categories, Mobile LMA: 1964-1996 ......................................... 297 

FLORIDA STATE PROFILE

FLORIDA LABOR MARKET AREAS 

Figure 1. Florida Labor Market Areas ................................................................................... 331 

Figure 2. Annual Employment, Tampa-St. Petersburg LMA: 1970-2000............................. 334 

Figure 3. Annual Employment, Sarasota LMA: 1969-2000 .................................................. 335 

Figure 4. Annual Employment, Miami-Dade LMA: 1969-2000 ........................................... 335 

Figure 5. Annual Employment, Ft. Myers LMA: 1969-2000 ................................................ 336 

Figure 6. Annual Employment, Taylor LMA: 1969-2000..................................................... 336 

Figure 7. Annual Employment, Citrus-Marion LMA: 1969-2000......................................... 337 

Figure 8. Annual Employment, Dixie-Gainesville LMA: 1969-2000 ................................... 337 

Figure 9. Annual Employment, Tallahassee LMA: 1969-2000............................................. 338 

Figure 10. Annual Employment, Panama City LMA: 1969-2000 ........................................... 338 

Figure 11. Annual Employment, Pensacola LMA: 1969-2000................................................ 339 

PENSACOLA LMA 

Figure 1. Major Industry Employment, Pensacola LMA: 1940-2000 ................................... 348 

Figure 2. Annual Employment, Pensacola LMA: 1969-2000................................................ 349 

Figure 3. Total Annual Employment and Three-year Moving Averages, Pensacola 

LMA: 1969-2000 .................................................................................................... 351 

Figure 4. Employment Forecasting Analysis, Pensacola LMA: 1971-1999.......................... 352 
xx 

PANAMA CITY LMA 

Figure 1. Major Industry Employment, Panama City LMA: 1940-2000............................... 359 

Figure 2. Annual Employment, Panama City LMA: 1969-2000 ........................................... 360 

Figure 3. Total Annual Employment and Three-year Moving Averages, Panama City 

LMA: 1969-2000 .................................................................................................... 362 

Figure 4. Employment Forecasting Analysis, Panama City LMA: 1971-1999 .................... 363 

TALLAHASSEE LMA 

Figure 1. Major Industry Employment, Tallahassee LMA: 1940-2000................................. 369 

Figure 2. Annual Employment, Tallahassee LMA: 1969-2000............................................. 370 

Figure 3. Total Employment and Three-year Moving Averages, Tallahassee LMA: 

1969-2000 ............................................................................................................... 372 

Figure 4. Employment Forecasting Analysis, Tallahassee LMA: 1971-1999...................... 373 

TAYLOR LMA 

Figure 1. Major Industry Employment, Taylor LMA: 1940-2000......................................... 382 

Figure 2. Annual Employment, Taylor LMA: 1969-2000..................................................... 383 

Figure 3. Employment Forecasting Analysis, Taylor LMA: 1971-1999............................... 385 

DIXIE-GAINESVILLE LMA 

Figure 1. Major Industry Employment, Dixie-Gainesville LMA: 1940-2000....................... 392 

Figure 2. Annual Employment, Dixie-Gainesville LMA: 1969-2000 ................................... 394 

Figure 3. Total Employment and Three-year Moving Averages, Dixie-Gainesville 

LMA: 1969-2000 .................................................................................................... 395 

Figure 4. Employment Forecasting Analysis, Dixie-Gainesville LMA................................. 396 

CITRUS-MARION LMA 

Figure 1. Major Industry Employment, Citrus-Marion LMA: 1940-2000 ............................ 404 

Figure 2. Annual Employment, Citrus-Marion LMA: 1969-2000......................................... 405 

Figure 3. Total Employment and Three-year Moving Averages, Citrus-Marion LMA: 

1969-2000 ............................................................................................................... 406 

Figure 4. Employment Forecasting Analysis, Citrus-Marion LMA ...................................... 408 
xxi 

TAMPA BAY-ST. PETERSBURG LMA 

Figure 1. Major Industry Employment, Tampa Bay-St. Petersburg LMA: 1940-2000......... 414 

Figure 2. Annual Employment, Tampa Bay-St. Petersburg LMA: 1970-2000 ..................... 416 

Figure 3. Total Annual Employment and Three-year Moving Averages, Tampa Bay-St. 

Petersburg LMA: 1969-2000.................................................................................. 417 

SARASOTA LMA 

Figure 1. Major Industry Employment, Sarasota LMA: 1940-2000..................................... 424 

Figure 2. Annual Employment, Sarasota LMA: 1969-2000 .................................................. 425 

Figure 3. Total Employment and Three-year Moving Averages, Sarasota LMA: 1969-

2000 ........................................................................................................................ 427 

Figure 4. Employment Forecasting Analysis, Sarasota LMA: 1971-1999 ............................ 428 

FT. MYERS LMA 

Figure 1. Major Industry Employment, Ft. Myers LMA: 1940-2000.................................... 435 

Figure 2. Annual Employment, Ft. Myers LMA: 1969-2000 ................................................ 436 

Figure 3. Total Employment and Three-year Moving Averages, Ft. Myers LMA: 1969-

2000 ........................................................................................................................ 438 

Figure 4. Employment Forecasting Analysis, Ft. Myers LMA: 1971-1999 .......................... 439 

MONROE COUNTY (MIAMI-DADE LMA) 

Figure 1. Annual Employment, Monroe County: 1969-2000 ................................................ 445 

Figure 2. Total Annual Employment and Three-year Moving Averages, Monroe 

County: 1969-2000 ................................................................................................. 448
xxiii 

LIST OF TABLES

Page

Table 1. Study County/Parish Communities by State............................................................... 9 

TEXAS STATE PROFILE 

Table 1. Population Changes, Texas State: 1930-2000 .......................................................... 23 

Table 2. Racial and Ethnic Populations, Texas State: 2000 ................................................... 24 

Table 3. Income, Poverty and Family Structure, Texas State: 1970-2000 ............................. 25 

Table 4. Employment in Major Industrial Sectors, Texas State: 1990-2000.......................... 26 

Table 5. Earnings in Major Industry Sectors and Selected Sub-sectors, Texas State: 

1990-1999 ................................................................................................................. 28 

Table 6. Adult Educational Attainment (age 25+), Texas State: 1950-2000.......................... 33 

CORPUS CHRISTI LMA 

Table 1. Key Industry Groups and Sectors............................................................................. 47 

Table 2. Total Population, Corpus Christi LMA: 1940-2000................................................. 57 

Table 3. Percent of White Population, Corpus Christi LMA: 1940-2000 .............................. 57 

Table 4. Percent of Black Population, Corpus Christi LMA: 1940-2000............................... 58 

Table 5. Adult Educational Attainment (age 25+), Corpus Christi LMA: 1970-2000........... 59 

Table 6. Total Revenue, Per Capita, Corpus Christi LMA: 1972-1997 ................................. 60 

Table 7. Total State Revenue, Per Capita, Corpus Christi LMA: 1972-1997 ........................ 61 

Table 8. Total Tax Revenue, Per Capita, Corpus Christi LMA: 1972-1997 .......................... 61 

Table 9. Total Debt, Per Capita, Corpus Christi LMA: 1972-1997........................................ 62 

HOUSTON LMA 

Table 1. Key Industry Groups and Sectors............................................................................. 70 

Table 2. Population by County, Houston LMA: 1940-2000 .................................................. 82 

Table 3. Percent of White Population, Houston LMA: 1940-2000 ........................................ 83 

Table 4. Percent of Black Population, Houston LMA: 1940-2000 ........................................ 83 

Table 5. Adult Educational Attainment (age 25+), Houston LMA: 1970-2000..................... 84 

Table 6. Total Revenue, Per Capita, Houston LMA: 1972-1997 ........................................... 86 

Table 7. Total State Revenue, Per Capita, Houston LMA: 1972-1997 .................................. 86 
xxiv 

Table 8. Total Tax Revenue, Per Capita, Houston LMA: 1972-1997 .................................... 87 

Table 9. Total Debt, Per Capita, Houston LMA: 1972-1997 ................................................. 87 

BEAUMONT LMA 

Table 1. Key Industry Groups and Sectors............................................................................. 98 

Table 2. Population by County, Beaumont LMA: 1940-2000 ............................................. 106 

Table 3. Percent of White Population, Beaumont LMA: 1940-2000 ................................... 107 

Table 4. Percent of Black Population, Beaumont LMA: 1940-2000.................................... 107 

Table 5. Adult Educational Attainment (age 25+), Beaumont LMA: 1970-2000................ 108 

Table 6. Total Revenue, Per Capita, Beaumont LMA: 1972-1997 ...................................... 110 

Table 7. Total State Revenue, Per Capita, Beaumont LMA: 1972-1997 ............................. 110 

Table 8. Total Tax Revenue, Per Capita, Beaumont LMA: 1972-1997 ............................... 110 

Table 9. Total Debt, Per Capita, Beaumont LMA: 1972-1997............................................. 111 

LOUISIANA STATE PROFILE

Table 1. Population Changes, Louisiana State: 1940-2000 .................................................. 121 

Table 2. Racial and Ethnic Populations, Louisiana State: 2000 ........................................... 121 

Table 3. Income, Poverty and Family Structure, Louisiana State: 1960-2000..................... 122 

Table 4. Employment in Major Industrial Sectors, Louisiana State: 1990-2000 ................. 123 

Table 5. Earnings in Major Industry Sectors and Selected Sub-sectors, Louisiana 

State: 1990-1999..................................................................................................... 124 

Table 6. Educational Attainment of Adults (age 25+), Louisiana State: 1990-2000............ 129 

LAKE CHARLES LMA 

Table 1. Key Industry Groups and Sectors........................................................................... 142 

Table 2. Population by Parish, Lake Charles LMA: 1940-2000 .......................................... 150 

Table 3. Percent of White Population, Lake Charles LMA: 1940-2000 .............................. 150 

Table 4. Percent of Black Population, Lake Charles LMA: 1940-2000............................... 151 

Table 5. Adult Educational Attainment (age 25+), Lake Charles LMA: 1970-2000 ........... 151 

Table 6. Total Revenue, Per Capita, Lake Charles LMA: 1972-1997.................................. 153 

Table 7. Total State Revenue, Per Capita, Lake Charles LMA: 1972-1997......................... 153 

Table 8. Total Tax Revenue, Per Capita, Lake Charles LMA: 1972-1997 .......................... 154 

Table 9. Total Debt, Per Capita, Lake Charles LMA: 1972-1997........................................ 154 
xxv 

LAFAYETTE LMA 

Table 1. Key Industry Groups and Sectors........................................................................... 165 

Table 2. Population by Parish, Lafayette LMA: 1940-2000................................................. 175 

Table 3. Percent of White Population, Lafayette LMA: 1940-2000 .................................... 175 

Table 4. Percent of Black Population, Lafayette LMA: 1940-2000..................................... 176 

Table 5. Adult Educational Attainment (age 25+), Lafayette LMA: 1970-2000 ................. 177 

Table 6. Total Revenue, Per Capita, Lafayette LMA: 1972-1997........................................ 179 

Table 7. Total State Revenue, Per Capita, Lafayette LMA: 1972-1997............................... 179 

Table 8. Total Tax Revenue, Per Capita, Lafayette LMA: 1972-1997 ................................ 179 

Table 9. Total Debt, Per Capita, Lafayette LMA: 1972-1997.............................................. 180 

LAFOURCHE LMA 

Table 1. Key Industry Groups and Sectors........................................................................... 189 

Table 2. Population by Parish, Lafourche LMA: 1940-2000 ............................................... 199 

Table 3. Percent of White Population, Lafourche LMA: 1940-2000 ................................... 200 

Table 4. Percent of Black Population, Lafourche LMA: 1940-2000.................................... 200 

Table 5. Adult Educational Attainment (age 25+), Lafourche LMA: 1970-2000................ 201 

NEW ORLEANS LMA 

Table 1. Key Industry Groups and Sectors........................................................................... 211 

Table 2. Population by Parish, New Orleans LMA: 1940-2000........................................... 221 

Table 3. Percent of White Population, New Orleans LMA: 1940-2000............................... 222 

Table 4. Percent of Black Population, New Orleans LMA: 1940-2000 ............................... 222 

Table 5. Adult Educational Attainment (age 25+), New Orleans LMA: 1970-2000 ........... 223 

Table 6. Total Revenue, Per Capita, New Orleans LMA: 1972-1997.................................. 225 

Table 7. Total State Revenue, Per Capita, New Orleans LMA: 1972-1997......................... 225 

Table 8. Total Tax Revenue, Per Capita, New Orleans LMA: 1972-1997........................... 226 

Table 9. Total Debt, Per Capita, New Orleans LMA: 1972-1997........................................ 226 
xxvi 

MISSISSIPPI STATE PROFILE 

Table 1. Population Changes, Mississippi State: 1940-2000................................................ 238 

Table 2. Racial and Ethnic Populations, Mississippi State: 2000......................................... 238 

Table 3. Income, Poverty and Family Structure, Mississippi State: 1960-2000 .................. 239 

Table 4. Employment in Major Industrial Sectors, Mississippi: 1990-2000 ........................ 240 

Table 5. Earnings in Major Industry Sectors and Selected Sub-sectors, Mississippi 

State: 1990-1999..................................................................................................... 241 

Table 6. Adult Educational Attainment (age 25+), Mississippi State: 1990-2000............... 245 

BILOXI LMA 

Table 1. Key Industry Groups and Sectors........................................................................... 255 

Table 2. Population by County, Biloxi LMA: 1940-2000.................................................... 260 

Table 3. Percent of White Population, Biloxi LMA: 1940-2000.......................................... 260 

Table 4. Percent of Black Population, Biloxi LMA: 1940-2000 .......................................... 261 

Table 5. Adult Educational Attainment (age 25+), Biloxi LMA: 1970-2000 ...................... 262 

Table 6. Total Revenue, Per Capita, Biloxi LMA: 1972-1997............................................. 263 

Table 7. Total State Revenue, Per Capita, Biloxi LMA: 1972-1997.................................... 263 

Table 8. Total Tax Revenue, Per Capita, Biloxi LMA: 1972-1997...................................... 264 

Table 9. Total Debt, Per Capita, Biloxi LMA: 1972-1997 ................................................... 264 

ALABAMA STATE PROFILE 

Table 1:. Population Changes, Alabama State: 1920 to 2000................................................ 274 

Table 2. Racial and Ethnic Populations, Alabama State: 2000 ............................................ 275 

Table 3. Income, Poverty and Family Structure, Alabama State: 1960-2000 ...................... 276 

Table 4. Employment in Major Industrial Sectors, Alabama: 1990-2000............................ 277 

Table 5. Earnings in Major Industry Sectors and Selected Sub-sectors, Alabama State: 

1990-1999 ............................................................................................................... 278 

Table 6. Adult Educational Attainment (age 25+), Alabama State: 1990-2000................... 281 

MOBILE LMA 

Table 1. Key Industry Groups and Sectors........................................................................... 293 

Table 2. Population by County, Mobile LMA: 1940-2000 .................................................. 298 

Table 3. Percent of White Population, Mobile LMA: 1940-2000 ........................................ 299 
xxvii 

Table 4. Percent of Black Population, Mobile LMA: 1940-2000 ........................................ 299 

Table 5. Adult Educational Attainment (age 25+), Mobile LMA: 1970-2000..................... 300 

Table 6. Total Revenue, Per Capita, Mobile LMA: 1972-1997 ........................................... 301 

Table 7. Total State Revenue, Per Capita, Mobile LMA: 1972-1997 .................................. 302 

Table 8. Total Tax Revenue, Per Capita, Mobile LMA: 1972-1997 .................................... 302 

Table 9. Total Debt, Per Capita, Mobile LMA: 1972-1997 ................................................. 303 

FLORIDA STATE PROFILE 

Table 1. Population Changes, Florida State: 1920-2000 ...................................................... 319 

Table 2. Racial and Ethnic Populations, Florida State: 2000 ............................................... 319 

Table 3. Income, Poverty and Family Structure, Florida State: 1970-2000 ......................... 320 

Table 4. Employment in Major Industrial Sectors, Florida State: 1990-2000...................... 321 

Table 5. Earnings in Major Industry Sectors and Selected Sub-sectors, Florida State: 

1990-1999 ............................................................................................................... 322 

Table 6. Adult Educational Attainment (age 25+), Florida State: 1990-2000...................... 329 

TOURISM AND RETIREMENT AGE POPULATION CONCENTRATION IN THE FLORIDA 

GULF OF MEXICO LMAS 

Table 1. Total Employment in Tourism Related Industries, Florida Gulf Coast 

Counties: 2000 ........................................................................................................ 342 

Table 2. Percent Population Over 65, Sarasota LMA: 1950-2000 ....................................... 343 

Table 3. Percent Population Over 65, Dixie-Gainesville LMA: 1950-2000 ........................ 343 

Table 4. Percent Population Over 65, Ft. Myers LMA: 1950-2000 ..................................... 343 

Table 5. Percent Population Over 65, Citrus-Marion LMA: 1950-2000.............................. 343 

Table 6. Percent Population Over 65, Tallahassee LMA: 1950-2000 .................................. 344 

Table 7. Percent Population Over 65, Miami-Dade LMA: 1950-2000 ................................ 344 

Table 8. Percent Population Over 65, Taylor LMA: 1950-2000 ......................................... 344 

Table 9. Percent Population Over 65, Panama City LMA: 1950-2000 ................................ 345 

Table 10. Percent Population Over 65, Pensacola LMA: 1950-2000..................................... 345 

Table 11. Percent Population Over 65, Tampa Bay-St. Petersburg LMA: 1950-2000 .......... 345 

PENSACOLA LMA 

Table 1. Employment by Sector, Pensacola LMA: 2000 ..................................................... 350 

Table 2. Population by County, Pensacola LMA: 1940-2000.............................................. 353 
xxviii 

Table 3. Percent of White Population, Pensacola LMA: 1940-2000.................................... 353 

Table 4. Percent of Black Population, Pensacola LMA: 1940-2000 .................................... 353 

Table 5. Percent of Hispanic Population by County, Pensacola LMA: 1970-2000 ............. 354 

Table 6. Percent of Population Over 65, Pensacola LMA: 1950-2000 ................................ 354 

Table 7. Adult Educational Attainment (age 25+), Pensacola LMA: 1970-2000 ................ 355 

Table 8. Total Revenue, Per Capita, Pensacola LMA: 1972-1997....................................... 356 

Table 9. Total State Revenue, Per Capita, Pensacola LMA: 1972-1997.............................. 356 

Table 10. Total Tax Revenue, Per Capita, Pensacola LMA: 1972-1997................................ 356 

Table 11. Total Debt, Per Capita, Pensacola LMA: 1972-1997 ............................................. 357 

PANAMA CITY LMA 

Table 1. Employment by Sector, Panama City LMA: 2000................................................. 361 

Table 2. Percent of White Population, Panama City LMA: 1940-2000 ............................... 363 

Table 3. Percent of Black Population, Panama City LMA: 1940-2000 ............................... 364 

Table 4. Percent of Hispanic Population, Panama City LMA: 1970-2000........................... 364 

Table 5. Percent of Population Over 65, Panama City LMA: 1950-2000............................ 364 

Table 6. Adult Educational Attainment (age 25+), Panama City LMA: 1970-2000............ 365 

Table 7. Total Revenue, Per Capita, Panama City LMA: 1972-1997 .................................. 366 

Table 8. Total State Revenue, Per Capita, Panama City LMA: 1972-1997 ......................... 366 

Table 9. Total Tax Revenue, Per Capita, Panama City LMA: 1972-1997 ........................... 366 

Table 10. Total Debt, Per Capita, Panama City LMA: 1972-1997 ........................................ 366 

TALLAHASSEE LMA 

Table 1. Employment by Sector, Tallahassee LMA: 2000................................................... 371 

Table 2. Population by County, Tallahassee LMA: 1940-2000 ........................................... 373 

Table 3. Percent of White Population, Tallahassee LMA: 1940-2000................................. 374 

Table 4. Percent of Black Population, Tallahassee LMA: 1940-2000 ................................. 374 

Table 5. Percent of Hispanic Population, Tallahassee LMA: 1970-2000 ............................ 375 

Table 6. Percent of Population Over 65, Tallahassee LMA: 1950-2000.............................. 375 

Table 7. Adult Educational Attainment (age 25+), Tallahassee LMA: 1970-2000.............. 376 

Table 8. Total Revenue, Per Capita, Tallahassee LMA: 1972-1997 .................................... 378 

Table 9. Total State Revenue, Per Capita, Tallahassee LMA: 1972-1997 ........................... 378 

Table 10. Total Tax Revenue, Per Capita, Tallahassee LMA: 1972-1997............................. 379 
xxix 

Table 11. Total Debt, Per Capita, Tallahassee LMA: 1972-1997 .......................................... 379 

TAYLOR LMA 

Table 1. Employment by Sector, Taylor LMA: 2000........................................................... 384 

Table 2. Population by County, Taylor LMA: 1940-2000 ................................................... 385 

Table 3. Percent of White Population, Taylor LMA: 1940-2000......................................... 386 

Table 4. Percent of Black Population, Taylor LMA: 1940-2000 ......................................... 386 

Table 5. Percent of Hispanic Population, Taylor LMA: 1970-2000 .................................... 386 

Table 6. Percent of Population Over 65, Taylor LMA: 1950-2000...................................... 387 

Table 7. Adult Educational Attainment (age 25+), Taylor LMA: 1970-2000...................... 388 

Table 8. Total Revenue, Per Capita, Taylor LMA: 1972-1997 ............................................ 389 

Table 9. Total State Revenue, Per Capita, Taylor LMA: 1972-1997 ................................... 389 

Table 10. Total Tax Revenue, Per Capita, Taylor LMA: 1972-1997..................................... 389 

Table 11. Total Debt, Per Capita, Taylor LMA: 1972-1997 .................................................. 390 

DIXIE-GAINESVILLE LMA 

Table 1. Employment by Sector, Dixie-Gainesville LMA: 2000 ......................................... 394 

Table 2. Population by County, Dixie-Gainesville LMA: 1940-2000 ................................. 397 

Table 3. Percent of White Population, Dixie-Gainesville LMA: 1940-2000 ....................... 397 

Table 4. Percent of Black Population, Dixie-Gainesville LMA: 1940-2000........................ 398 

Table 5. Percent of Hispanic Population, Dixie-Gainesville LMA: 1970-2000................... 398 

Table 6. Percent of Population Over 65, Dixie-Gainesville LMA: 1950-2000.................... 399 

Table 7. Adult Educational Attainment (age 25+), Dixie-Gainesville LMA: 1970-2000.... 399 

Table 8. Total Revenue, Per Capita, Dixie-Gainesville LMA: 1972-1997 .......................... 400 

Table 9. Total State Revenue, Per Capita, Dixie-Gainesville LMA: 1972-1997 ................. 401 

Table 10. Total Tax Revenue, Per Capita, Dixie-Gainesville LMA: 1972-1997 ................... 401 

Table 11. Total Debt, Per Capita, Dixie-Gainesville LMA: 1972-1997................................. 401 

CITRUS-MARION LMA 

Table 1. Employment by Sector, Citrus-Marion LMA: 2000............................................... 406 

Table 2. Population by County, Citrus-Marion LMA: 1940-2000 ....................................... 408 

Table 3. Percent of White Population, Citrus-Marion LMA: 1940-2000............................. 409 

Table 4. Percent of Black Population, Citrus-Marion LMA: 1940-2000 ............................. 409 

Table 5. Percent of Hispanic Population, Citrus-Marion LMA: 1970-2000 ........................ 409 
xxx 

Table 6. Percent of Population Over 65, Citrus-Marion LMA: 1950-2000 ......................... 410 

Table 7. Adult Educational Attainment (age 25+), Citrus-Marion LMA: 1970-2000 ......... 410 

Table 8. Total Revenue, Per Capita, Citrus-Marion LMA: 1972-1997................................ 411 

Table 9. Total State Revenue, Per Capita, Citrus-Marion LMA: 1972-1997....................... 411 

Table 10. Total Tax Revenue, Per Capita, Citrus-Marion LMA: 1972-1997......................... 411 

Table 11. Total Debt, Per Capita, Citrus-Marion LMA: 1972-1997 ...................................... 412 

TAMPA BAY-ST. PETERSBURG LMA 

Table 1. Employment by Sector, Tampa Bay-St. Petersburg LMA: 2000 ........................... 416 

Table 2. Population by County, Tampa Bay-St. Petersburg LMA: 1940-2000.................... 418 

Table 3. Percent of White Population, Tampa Bay-St. Petersburg LMA: 1940-2000 ........ 418 

Table 4. Percent of Black Population, Tampa Bay-St. Petersburg LMA: 1940-2000.......... 419 

Table 5. Percent of Population Over 65, Tampa Bay-St. Petersburg LMA: 1950-2000 ...... 419 

Table 6. Adult Educational Attainment (age 25+), Tampa Bay-St. Petersburg LMA: 

1970-2000 ............................................................................................................... 420 

Table 7. Total Revenue, Per Capita, Tampa Bay-St. Petersburg LMA: 1972-1997 ............ 421 

Table 8. Total State Revenue, Per Capita, Tampa Bay-St. Petersburg LMA: 1972-

1997 ........................................................................................................................ 421 

Table 9. Total Tax Revenue, Per Capita, Tampa Bay-St. Petersburg LMA: 1972-1997 ..... 421 

Table 10. Total Debt, Per Capita, Tampa Bay-St. Petersburg LMA: 1972-1997................... 422 

SARASOTA LMA 

Table 1. Employment by Sector, Sarasota LMA: 2000........................................................ 426 

Table 2. Population by County, Sarasota LMA: 1940-2000 ................................................ 428 

Table 3. Percent of White Population, Sarasota LMA: 1940-2000 ...................................... 429 

Table 4. Percent of Black Population, Sarasota LMA: 1940-2000 ...................................... 429 

Table 5. Percent of Hispanic Population, Sarasota LMA: 1970-2000.................................. 429 

Table 6. Percent of Population Over 65, Sarasota LMA: 1950-2000................................... 430 

Table 7. Adult Educational Attainment (age 25+), Sarasota LMA: 1970-2000................... 430 

Table 8. Total Revenue, Per Capita, Sarasota LMA: 1972-1997 ......................................... 431 

Table 9. Total State Revenue, Per Capita, Sarasota LMA: 1972-1997 ................................ 432 

Table 10. Total Tax Revenue, Per Capita, Sarasota LMA: 1972-1997 .................................. 432 

Table 11. Total Debt, Per Capita, Sarasota LMA: 1972-1997 ............................................... 432 
xxxi 

FT. MYERS LMA 

Table 1. Employment by Sector, Ft. Myers LMA: 2000...................................................... 437 

Table 2. Population by County, Ft. Myers LMA: 1940-2000 .............................................. 439 

Table 3. Percent of White Population, Ft. Myers LMA: 1940-2000 .................................... 440 

Table 4. Percent of Black Population, Ft. Myers LMA: 1940-2000 .................................... 440 

Table 5. Percent of Hispanic Population, Ft. Myers LMA: 1970-2000................................ 440 

Table 6. Percent of Population Over 65, Ft. Myers LMA: 1950-2000................................. 441 

Table 7. Adult Educational Attainment (age 25+), Ft. Myers LMA: 1970-2000................. 441 

Table 8. Total Revenue, Per Capita, Ft. Myers LMA: 1972-1997 ....................................... 442 

Table 9. Total State Revenue, Per Capita, Ft. Myers LMA: 1972-1997 .............................. 442 

Table 10. Total Tax Revenue, Per Capita, Ft. Myers LMA: 1972-1997 ................................ 442 

Table 11. Total Debt, Per Capita, Ft. Myers LMA: 1972-1997 ............................................. 443 

MONROE COUNTY (MIAMI-DADE LMA) 

Table 1. Employment by Sector, Monroe County: 2000...................................................... 446 

Table 2. Total Employment in Tourism-related Industries, Florida Gulf Coast 

Counties: 2000 ........................................................................................................ 447 

Table 3. Total Population, Monroe County: 1940-2000....................................................... 448 

Table 4. Percent of Population Over 65, Monroe County: 1950-2000................................. 449 

Table 5. Adult Educational Attainment (age 25+), Monroe County: 1970-2000................. 449 

Table 6. Per Capita Government Finances, Monroe County: 1972-1997 ............................ 449 
1

I. INTRODUCTION AND OVERVIEW 

A. PURPOSE OF THE STUDY 

 The Minerals Management Service (MMS) is the agency responsible for managing the 

mineral resources on the Federal OCS and is obligated under the National Environmental Policy 

Act of 1969 (NEPA) and the Outer Continental Shelf Lands Act, as amended in 1978 (OCSLA), 

to assess and monitor the effects of its sale of oil, gas, and mineral leases located on the outer 

continental shelf. 

 The outer continental shelf (OCS) extends up to 200 miles off the coast of the U.S. It 

consists of over 2.75 million square miles, 7,300 active oil and gas leases, on 42 million acres 

(65,000 square miles) of submerged federally owned lands, and represents the most likely 

location of undiscovered oil and gas resources in the U.S. It is also the source of roughly one 

third (32%) of the oil produced in the U.S. (Texas produces 22%, Alaska 20%, and California 

14%) – a percentage that is rapidly growing (USDOE, EIA, 2004a). 

 This study is one of several funded in response to intensification of sale-related activities 

in the Gulf of Mexico OCS in deeper waters. The study’s purpose is to develop reliable and 

consistent information about past and potential future human effects of OCS development in 

support of the agency’s lease sale and management decision-making process. 

B. OBJECTIVES OF THE REPORT 

 This report represents the culmination of a six-year project designed with four principal 

objectives: (1) to develop a baseline description of coastal counties/parishes bordering on the 

Gulf of Mexico; (2) to analyze patterns in the distribution of benefits and burdens for places 

affected by OCS oil and gas activities (e.g., changes in community demographic structure, 

industry structure, labor force composition, and social and economic well-being of the 

population); (3) to examine significant changes in the study areas associated with “deepwater” 

oil and gas development program; and (4) to comparatively analyze the differential response of 

two coastal communities in the Florida Panhandle to past and anticipated future oil development 

associated with MMS OCS activities. 

 These objectives are addressed at four levels of analysis: (1) at the level of the five Gulf 

of Mexico coastal states (Texas, Louisiana, Mississippi, Alabama, and Florida); (2) at the level 

of groups of counties organized by Labor Market Area (LMA)1

; (3) at the level of the individual 

counties and parishes bordering on the Gulf of Mexico; and (4) at the level of the community in a 

comparative case study of two Florida Panhandle communities (Pensacola and Panama City, 

Florida) differentially affected by past and anticipated offshore oil development (Map 1). 

 The core analysis of the study effort centers on the analysis of the LMAs that highlights 

recent changes in local involvement in the OCS oil and gas industry resulting from deepwater 

 

1

 Labor Market Areas are analytic constructs used to describe the economic and demographic 

characteristics of a cluster of counties or parishes linked by commuting patterns into an 

economically integrated region surrounding a central city or town. These groupings allow for 

analysis of larger geographic aggregations of populations associated with regional economic 

centers in which workers can easily change jobs without changing their place of residence. 
2

developments, the “boom and bust”2

 characteristics, and an examination of the benefits and 

burdens of OCS activities on public institutions and infrastructure. 

 This report integrates the results of two MMS projects, BENEFITS AND BURDENS OF OCS

ACTIVITIES ON SELECTED COMMUNITIES AND PUBLIC INSTITUTIONS and EFFECTS ON LOCAL 

HUMAN COMMUNITIES OF OCS MINERAL EXTRACTION IN FRONTIER AREAS carried out by Impact 

Assessment, Inc., between 1998 and 2004. This period has been one of extremely accelerated 

deepwater oil and gas development, of substantial reorganization within the oil industry, and of 

profound change in public perceptions of the role of oil in the world political economy. 

C. STUDY BACKGROUND

1. Introduction 

 The oil and gas industry has operated in Louisiana and Texas for nearly 100 years and 

has operated in offshore waters for over 50 years. While growth in this industry slowed in the 

early 1980s through the early 1990s, recent changes reinvigorated the industry and focused many 

of its new efforts in deepwater (i.e., water depths greater than 300 meters). These changes 

produce benefits such as increased economic activity and employment, but they also place new 

demands on local infrastructure and institutions. Since ports with sufficient draft to 

accommodate deepwater servicing equipment are limited, many onshore effects appear to be 

increasingly concentrated in a few communities. This contrasts with nearer shore activities, 

which were supported by innumerable ports and coastal communities. 

External events play a role in the pace, location, and scale of onshore impacts of oil 

development. For example, in the past, long periods of relatively low oil prices resulted in a 

correspondingly low investment in infrastructure (refineries, pipelines, etc.), exploration, and 

development. Higher world oil prices have had the opposite effect, and abrupt changes in prices, 

in turn, have had abrupt impacts on affected communities. This was particularly the case after 

the OPEC3

 oil embargo of 1973. The embargo and U.S. policy responses ramped up oil prices, 

U.S. exploration, and infrastructure investment. Then, in the 1980s, abrupt declines in oil prices 

led to deep declines in infrastructure investment, exploration and development. 

2. Early History of Gulf of Mexico Oil Development

The modern oil industry had its origins in early 1901 with the discovery of oil at 

Spindletop, Texas. This discovery, just south of Beaumont, Texas, occurred atop a small salt 

 

2

 Strictly speaking, there have been many periods of rapid economic expansion and contraction, 

some more abrupt than others. We use the phrase “boom and bust” to characterize a broad 

spectrum of these industrial expansions and contractions. 3

 The Organization of the Petroleum Exporting Countries was originally formed in 1960 by five 

founding members – Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Despite the formation of 

this block of oil producers, prices continued to decline until 1971, when six other nations (Qatar 

[1961], Indonesia [1962], Libya [1962], United Arab Emirates [1967], Algeria and Nigeria 

[1971]) had eventually joined the group. OPEC’s ability to dictate oil prices can be said to date 

from about this time.
3

Map 1. Map of Study States and Labor Market Areas (IAI Staff, 2007).
4

dome at a depth of 1,020 feet. Within a few years, more than 400 wells were erected in the 

vicinity. 

 In September of the same year, oil was discovered in Jennings, Louisiana, located 

approximately 15 miles inland of Lake Arthur, and the Louisiana oil rush was underway with 

dozens of wells drilled and producing by 1902. Aggressive exploration and development 

activities between 1901 and the early 1920s led many to conclude that all the “easy finds” had 

already been made. However, the advent of WW I, and rapidly growing domestic industrial and 

transportation consumption, fueled an accelerated exploration and development in both Texas 

and Louisiana. 

3. History of Shallow Water OCS Oil Development 

 The first effort to drill over water was initiated in about 1910 at Caddo Lake, in a welldeveloped oil region near Shreveport, Louisiana. The first actual attempt to drill in offshore 

waters did not occur until 1934, when the Texas Company (precursor to Texaco) utilized a barge 

structure to establish a well one-mile off the coast. This is viewed as the advent of the offshore 

oil industry in the Gulf of Mexico. 

 In 1947, the first actual “platform” connected to the ocean floor (in 18 feet of water) was 

constructed by Kerr-McGee, approximately 12 miles offshore and beyond sight of the coast. By 

the end of the 1950s, 92 offshore platforms had been constructed, some to a depth of 100 feet. 

At the end of the 1960s, approximately 500 platforms had been erected – in water up to 350 feet 

deep. In the 1970s, the pace of development accelerated even more dramatically. By the end of 

that decade, over 12,500 platforms were producing oil on the continental shelf. An average of 

1,000 new platforms had been erected each year of the decade. 

4. History of Deepwater OCS Oil Development

 The first platform at a water depth of over 1,000 feet occurred in 1979 with erection of 

Shell Oil’s Cognac Platform. The second deepwater discovery occurred five years later, in 1984. 

Then, between 1984 and 1992, another four deepwater fields were brought into production. In 

the five years between 1992 and 1997, another 11 producing deepwater developments came on 

line in the Gulf of Mexico (GOM). In 1997 there were 12 deepwater oil-producing wells and 

12,500 shallow-water producing wells; just three years later, oil produced from deepwater wells 

exceeded the total production of those 12,500 shallow-water wells. By the end of 2001, there 

were 58 producing deepwater projects, and by the end of 2003, there were 86. A total of 15 new 

deepwater discoveries in water depths in excess of 1,000 feet were made in 2004 and an 

additional nine discoveries in 2005. 

 The water depth at which discoveries were being made also continued to increase 

dramatically. In 1992, 33 deepwater oil wells were drilled in the Gulf of Mexico, most in 

waters less than 1,500 feet deep and only 11 in water greater than 1,500 feet. Five years later, in 

1997, 174 wells had been drilled in deepwater, 132 of which were in depths between 1,500 

and 5,000 feet. Over the five years leading up to 2002, 191 wells were drilled in deepwater, 

126 of which were in depths between 1,500 and 5,000 feet, 35 at depths of 5-7,000 feet, 10 in 

waters 7,500 feet or greater depth. Two wells have now been drilled in water over 10,000 

feet deep. 
5

5. Distribution of Onshore Impacts 

 Oil development in deepwater GOM is concentrated off the coast of Louisiana. The ports 

and harbors that provide onshore access to these deepwater facilities are concentrated in the 

eastern coastal regions of Louisiana. The pipelines that will bring the deepwater oil production 

onshore will tie into the existing network of offshore pipelines already pumping oil to refineries 

in Louisiana, and back along the coast into Texas (Sabine Pass, Orange, and Beaumont). 

Considerable effort has been committed to identifying the cause-effect relationship between 

these activities and economic and demographic changes at the level of the county and labor 

market area. The majority of the analysis focuses on these impacts, and changes over time in the 

distribution of benefits and burdens among and between the affected counties, parishes, labor 

market areas, and coastal states. 

 It should be noted, however, that the distribution of benefits and burdens of OCS 

deepwater oil development activities is spread much wider, directly and indirectly affecting the 

entire state and each of its component parishes, counties, and labor market areas. For example, 

in 1970, the oil and natural gas industry employed approximately 71,000 full-time workers from 

coastal communities along the Gulf of Mexico. In 1980, that number had grown to over 

145,000, a net increase of 105 percent. This is direct employment; the numbers do not reflect the 

multiplier effect of employment in such industries as manufacturing of equipment, water 

transportation, wholesale trade, and general services or the effects of increases in government 

revenues and consumer demand. Between 1980 and 1990, the total number of workers in the oil 

and natural gas industries in that region declined 23 percent and, in some coastal counties and 

parishes, unemployment rates temporarily exceeded 20 percent (Gramling, 1996). Again, this 

reflected the widespread reach of the industry and its multiplier effects. 

 Much of the benefit of OCS-related activities comes from increased economic activity. 

State and local governments benefit from this through increased revenues from income taxes, 

property taxes, and other fees. Another example concerns the allocation of revenue from OCS 

lease sale activities (e.g., royalties, rents, bonuses) by the federal government to the affected 

coastal states. Louisiana, for example, is entitled to 27 percent of the mineral royalties from 

producing federal offshore tracks adjacent to their seaward boundary. Federal royalty payments 

to Louisiana range from $30 to $40 million a year. Additional monies derive indirectly to state 

coffers through the Land and Water Conservation Fund, funded in part by royalty payments to 

MMS, which are then reallocated to all states (costal and non-coastal). 

 Finally, industry royalty payments to the federal government are tied to the market price 

of oil and gas. This means, for example, that the recent increase in the international benchmark 

price of oil will translate not only into increased revenue for the oil companies, but into increased 

royalty payments to the federal government and, subsequently, to the affected states as well. 

D. STRUCTURE OF THE REPORT 

 The report is organized into four components. The first consists of this introduction and 

overview of the study. The second component provides state-level profiles for each of the U.S. 

states that border the Gulf of Mexico. The need for these state profiles arose because many 

things that happen at the level of the LMA, or county, or parish, are consistent across all counties 

of the state, such as bases of taxation, local government structure, revenue sharing procedures, 

and educational funding and priorities. Thus, it is appropriate to describe these state-based 
6

processes one time at the state level and then use that discussion as a reference for each of the 

county profiles within that state. The third component consists of selected county or parish 

profiles. These include all counties or parishes bordering on the Gulf of Mexico, and all counties 

or parishes that are part of a cluster of counties that make up a coastal Labor Market Area. The 

fourth component of the study consists of a comparative analysis of two coastal communities that 

have experienced only very modest effects (primarily anticipatory) effects of OCS oil and gas 

activities, but that could, under hypothesized scenarios, be expected to experience impacts from 

future OCS activities. These two communities, Panama City and Pensacola, Florida, represent 

two very different orientations to development effects and are compared and contrasted with 

respect to their “pre-adaptation” to potential future OCS-related development. The following 

discussion provides an overview of the goals, objectives, and methods of each of the four 

components. 

1. State Profiles 

 Many important components of the analyses are consistent across all counties or parishes 

in each of the five states (Texas, Louisiana, Mississippi, Alabama, and Florida). All counties of 

Texas, for example, are organized according to state laws and regulations; educational systems 

all had the same structure, same funding mechanisms, and basic operating principals. Also, state 

level decision-making and structural requirements result in differences that are meaningful at the 

level of the counties (or parishes) and this relationship needs to be explained at the level of the 

state. State profiles are structured around the same general categories employed in the countylevel analyses in order to facilitate understanding of the relationship between, for example, state 

history and county history, or state level economic trends and county level trends. Each state 

profile consists of eight sections, including: (1) introduction; (2) built environment; (3) history; 

(4) demographic characteristics; (5) economy; (6) local government; (7) social context; and (8) 

issues of concern. 

2. Labor Market Analysis 

 The objectives of this task are to aggregate, integrate, and synthesize the county/parish 

profile information into a cohesive statistical and analytical summary at the level of the Labor 

Market Area (LMA). This synthesis was carried out for all LMAs in the five study states (Texas, 

Louisiana, Mississippi, Alabama, and Florida) containing a minimum of one coastal county or 

parish. In addition, all Florida LMAs were included in order to provide a broader contextual 

foundation for discussion, and a comparative basis for analysis. 

 The LMA analysis consists of three components: (1) development of a short history of 

the LMA involving the compilation and integration of county/parish level data; (2) aggregation 

and integration of the county/parish analyses to reflect the overall context of change at the LMA 

level; and (3) a summary of trends observed at the LMA level in each of the principal domains 

(i.e., history, geography and environment, demography, economy, infrastructure, and fiscal 

trends). 
7

3. County and Parish Profiles 

This study is organized to provide reliable and consistent information about past and 

potential human effects of Outer Continental Shelf (OCS) development. In support of the agency’s 

lease sale and management decision-making process, profiles of the 90 counties and parishes 

bordering on the Gulf of Mexico have been prepared to serve as a baseline for the coastal 

counties and parishes bordering on the Gulf of Mexico. More specifically, these county/parish 

profiles support assessments of the distribution of benefits and burdens of OCS oil and gas 

activities for the counties and parishes within each state (e.g., changes in community 

demographic structure, industry structure, labor force composition, and social and economic 

well-being of the population). They additionally examine significant changes in the study areas 

occurring in association with the MMS “deepwater” oil and gas development program. As such, 

they provide the basic foundation for the analyses performed at both the Labor Market Area 

(LMA) and state levels. 

 However, the overall objective of these baseline profiles is to describe and explain events 

and trends in order to provide a context for understanding why an event happened at different 

analytical levels (county/parish) for the study period (1920-present). Using information 

collected from the counties/parishes, oral histories, unstructured discussions with key informants, 

and the U.S. Census Bureau’s Decennial Census data, we describe what happened, how it 

happened as well as why it happened. 

 The profiles developed in this study include all coastal counties/parishes, as well as 

counties/parishes within coastal or key LMAs, of the five states of Texas, Louisiana, Mississippi, 

Alabama, and Florida (Table 1). Each profile provides detailed information on the same eight 

components employed in the state level analyses, including: (1) introduction; (2) built 

environment; (3) history; (4) population and demography; (5) economy; (6) local government; 

(7) social context; and (8) issues of concern. 

 The introduction first locates and describes the general physical features of the study 

county/parish geological conditions and trends. Notably, it identifies the geological formations 

and industry trends that have historically supported active onshore and OCS oil and gas 

exploration, and/or continue to support them. 

 Following this, the “built environment” section identifies the primary population centers 

of the study county/parish and describes their transportation and commercial infrastructure. 

Particular attention is given to the identification of predisposing county/parish characteristics that 

work to support or underwrite OCS activities, such as the presence of a deepwater port, major 

transportation routes, rail freight, and available utilities. We also examine the most recent data 

for toxic air, water, and land releases into the study communities and probe the relationship, 

and/or perceived relationship, between these environmental releases and local gas and oil 

activity. 

 The next section provides the salient history of the study county/parishes’ early and late 

settlement patterns. Besides exploring the major industrial developments within the region, we 

discuss the overall place of the petroleum industry within these developments. Finally, this 

section identifies some of the key technological advances within the petroleum industry and 

resulting social and socioeconomic effects. 

 Using decennial U.S. Census data, the fourth section identifies demographic trends and 

their variations within and among the counties between 1920 and 2000. Hence, each 

county/parish profile identifies and comparatively analyzes both local and regional 
8

socioeconomic trends. For example, in- and out-migrations are described with Census data and 

other compiled statistics at appropriate levels of aggregation (in a fashion parallel to the 

discussion of Labor Market Areas). 

 In section five, we examine correlations between OCS activities and income, poverty, 

employment and industry trends of the study county/parish. Our focus is on discerning the 

effects of the periodic expansion and contraction within the oil and gas industries upon the 

socioeconomic conditions within the study communities. 

 We next describe the governmental structure of each county/parish included in this 

report. Examining frameworks for representing local interests, we outline patterns of local 

political accountability. In particular, we delineate consequent variations in tax rates and the 

reliance of local government upon distinctive portfolios of taxes. 

 In section seven, we examine educational and health trends within each study 

county/parish. We make extensive use of U.S. Decennial Census data from 1940 through 2000 

to identify correlations between educational levels/funding and oil and gas related activities in 

the study counties/parishes. Additionally, we analyze the relative performance of the study 

county/parish on several key indicators of community health, such as infant mortality and child 

abuse rates. 

 Finally, we discuss the most pressing social issues facing the study county/parish in the 

first half of the 21st century. Notably, we identify concerns that are most likely related to the 

historic presence of the gas and oil industry and discuss how local civic leaders and community 

constituents are responding to these needs. 

 The following table enumerates, for each of the five Gulf Coast states (Texas, Louisiana, 

Mississippi, Alabama, and Florida), the counties and parishes profiled in this study effort and 

contained in the attached CD (Table 1). 
9

Table 1 

Study County/Parish Communities by State 

Alabama Florida Louisiana Mississippi Texas 

Baldwin Bay Acadia George Aransas 

Clarke Charlotte Allen Greene Austin 

Escambia Citrus Ascension Hancock Brazoria 

Mobile Collier Assumption Harrison Brooks 

Washington Dixie Beauregard Jackson Calhoun 

 Escambia Calcasieu Pearl River Cameron 

 Franklin Cameron Stone Chambers 

Gulf E. Baton Rouge Duval 

 Hernando Evangeline Fort Bend 

 Hillsborough Iberia Galveston 

 Jefferson Iberville Hardin 

 Lee Jeff Davis Harris 

 Levy Jefferson Jackson 

 Manatee Lafayette Jasper 

 Monroe Lafourche Jefferson 

 Okaloosa Orleans Jim Wells 

 Pasco Plaquemines Kenedy 

 Pinellas St. Bernard Kleberg 

Santa Rosa St. Charles Liberty 

 Sarasota St. James Matagorda 

 Taylor St. Landry Montgomery 

 Wakulla St. Martin Newton 

 Walton St. Mary Nueces 

 St. Tammany Orange 

 Terrebonne Polk 

 Vermilion Refugio 

 Vernon San Jacinto 

 San Patricio 

 Tyler

 Victoria

 Waller

 Washington 

 Willacy 
11

II. TEXAS STATE PROFILE 

A. INTRODUCTION 

 The State of Texas is located in the south central portion of the nation. It is bordered by 

New Mexico to the west, Oklahoma to the north, and Arkansas and Louisiana to the east. Texas 

is the second largest state in the United States (Map 2). It encompasses 267,277 square miles of 

land, 4,959 square miles of inland water, and 404 square miles of coastal water. This state’s 

territory spans northward from the Gulf of Mexico to the high plains in the Texas panhandle, and 

eastward from the Guadalupe Mountains to the Lower Rio Grande Valley. 

 Texas has a moderately wet climate. Average annual rainfall ranges from eight inches in 

west Texas to 48 inches in east Texas. The state experiences average high temperatures of 84° 

(July) and average lows of 47° (January). Mean elevation is 1,700 feet, but ranges from 500 feet 

in the Central Lowlands of north-central Texas to 4,000 feet in the High Plains in northern and 

central Texas (Doughty, 2003). 

There are 51 Wildlife Management Areas (WMAs) in Texas (756,464 acres) (Wildlife 

Management Areas of Texas, 2003). There are also 23 Gulf Ecological Management Sites 

(GEMS): Anahuac National Wildlife Refuge (34,296 acres), Aransas National Wildlife Refuge 

(58,982 acres), Armand Bayou Coastal Preserve & Nature Center (2,800 acres), Candy Abshier 

Wildlife Management Area (209 acres), Christmas Bay Coastal Preserve (4,173 acres), Flower 

Garden Banks National Marine Sanctuary (acreage not available), Freeport Liberty Ship Reef 

Complex (one-half square mile), Guadalupe Delta Wildlife Management Area (6,200 acres), 

Laguna Atascosa National Wildlife Refuge (65,096 acres), Laguna Madre (609 square miles), 

Lower Rio Grande Valley National Wildlife Refuge (acreage not available), Matagorda Island 

Wildlife Management Area and State Park (43,893 acres), McFaddin National Wildlife Refuge 

(56,181 acres), Murphee Wildlife Management Area (12,267 acres), Mustang Island State Park 

(4,060 acres), North Deer Island Sanctuary (acreage not available), Padre Island National 

Seashore (133,000 acres), Scenic Galveston Inc., Nature Preserve (2,400 acres), South Bay 

Coastal Preserve (3,500 acres), Sea Rim State Park (4,141 acres), Shamrock Island Management 

Complex (374 acres), Texas Point National Wildlife Refuge (8,952 acres), and the Welder Flats 

Wildlife Management Area (1,480 acres) (Texas Parks and Wildlife, 2003). 

 The State of Texas’s geography is characterized by four distinct regions: the Gulf 

Coastal Plain (the majority of eastern and southern Texas), the Central Lowland (north-central 

Texas), the Great Plains (the “panhandle” area in northern Texas), and the Basin and Range 

province (west Texas) (Doughty, 2003). Contained within these four regions are 254 counties, 

and 1,510 population centers. Mountains, deserts, low rolling hills, dry and grassy plains, and 

forests exemplify the characteristic diversity of the Texas topography. 

 Several large rivers flow across the state. The Rio Grande, the largest of those rivers, 

runs along the southern border between Texas and Mexico. The Red River serves as a natural 

boundary between Texas and Oklahoma, while the Sabine River delineates the Texas-Louisiana 

border. Other principal rivers include the Colorado, Trinity, and Brazos Rivers, which run 

through the central portion of the state; lesser rivers include the Nueces, the San Antonio, the San 

Jacinto, the Lavaca, and the Guadalupe (Doughty, 2003). 

 Texas is geologically complex. The State rests on Precambrian rocks that are more than 

600 million years old. The coastal region consists of Quaternary alluvium deposits and the 
12

Beaumont and Lipsic Formations also of the Quaternary epoch. The Catahoula Formation, the 

Oligocene undivided, the Claiborne Group, and the Wilcox and Midway Group of the Tertiary 

epoch run in a northeast-southwest direction in the northern part of Texas. The central part of 

the state consists of the Fredericksburg and Trinity Groups, as well as the Cretaceous undivided 

of the Cretaceous Mesozoic era, beginning about 245 million years ago. 

 The state’s diverse topography supports a wide range of agricultural products. These 

products include: wheat, sorghum, rice, citrus fruits, livestock and animal products, corn, dairy 

products, vegetables, cotton lint, poultry and eggs (Doughty, 2003). In 2000, Texas ranked 

second in the nation in terms of farm income from sales of all agricultural products. 

 Texas also produces a wealth of manufacturing products. These include: chemical and 

allied products, petroleum and coal products, food and kindred products, and transportation 

equipment. Primary mineral resources include petroleum, natural gas, and condensate (Doughty, 

2003). Importantly, Texas is a major center of petroleum refining, with Houston serving as the 

southern state headquarters for the majority of oil and gas companies in Texas. 

B. BUILT ENVIRONMENT

Human Geography and Population Centers. In the early 1900s, more than 75 percent 

of this state’s population lived in small rural or agricultural communities. By 1970, however, the 

reverse was true––only 20 percent of state residents were living on farms. This demographic 

shift reflects in part the rapid growth of industry throughout the 20th century and a concomitant 

increase in urban employment opportunities (Doughty, 2003). 

 The State of Texas had a year 2000 population of 20,851,820 persons. The population of 

Austin, the capital city, was 656,562 persons. Other major population centers, with their year 

2000 populations, include: Abilene (115,930), Amarillo (173,627), Arlington (332,969), 

Beaumont (113,866), Brownsville (139,722), Carrollton (109,576), Corpus Christi (277,454), 

Dallas (1,188,580), El Paso (563,662), Fort Worth (534,694), Garland (215,768), Grand Prairie 

(127,427), Houston (1,953,631), Irving (191,615), Laredo (176,576), Lubbock (199,564), 

McAllen (106,414), Mesquite (124,523), Plano (222,030), San Antonio (1,144,646), Waco 

(113,726), and Wichita Falls (104,197) (U.S. Census Bureau, 2000b). 

 The most populous counties in Texas in 2000 include: Bell (237,974), Bexar (1,392,931), 

Brazoria (241,767), Cameron (335,227), Collin (491,675), Dallas (2,218,899), Denton (432,976), 

El Paso (679,922), Galveston (250,158), Harris (3,400,578), Hildago (569,463), McLennan 

(213,517), Montgomery (293,768), Nueces (313,645), Tarrant (1,446,219), and Williamson 

(249,967) (U.S. Census Bureau, 2000b). 

 Transportation and Communication. The State of Texas provides a wide range of 

transportation options. Fifteen Interstate Highways provide Texas travelers with 3,231 miles of 

transportation infrastructure. Eight of these are major routes: I-10 (runs the entire length of 

Texas east to west), I-20 (east-west), I-30 (north-south), I-35 (north-south), I-35-E (Dallas), I-35-

W (Fort Worth), I-40 (east-west), and I-45 (north-south; Houston to Dallas). Minor routes 

include: I-27, I-37 (north-south), and I-44. There are also two spurs (I-110; I-345) and four 

beltways or “loops”: I-410 (San Antonio Loop), I-610 (loop), I-635 (east-west loop), and the I820 (loop). Additionally, approximately 30 U.S. Highways, 300 State Highways, and numerous 

other business routes, loops and spurs, farm roads, and park/recreation roads provide 1,686 miles 

 
13

Map 2. State of Texas and Gulf of Mexico Labor Market Areas (and component counties) (IAI 

 Staff, 2007). 
14

of non-interstate travel across Texas (Texas Highway Man Pages, 2001). In total, Texas’s 

highway system includes 296,581 miles of roadway (Doughty, 2003). 

 With 388 airports, air travel is easily accessible throughout Texas. Commercial airports 

(27) are located in: Abilene, Amarillo, Austin, Beaumont, Brownsville, Corpus Christi, Dallas, 

El Paso, Fort Worth, Killeen, Laredo, Longview, Harlington, Houston (3), McAllen, Midland, 

Lubbock, San Angelo, San Antonio, Texarkana, College Station, Tyler, Victoria, Waco, and 

Wichita Falls (Texas Department of Transportation, 2007). 

 Texas’s shipping industry also provides the state with a strategically important 

transportation mode. As of 2002, there are 13 major ports: Port of Brownsville, Port of Isabel, 

Port Mansfield/Willacy County Navigation District, Port of Corpus Christi Authority, Port 

Aransas, Port Freeport, Port of Galveston, Port of Texas City, Port of Houston, Port of Sabine 

Pass, Port of Port Arthur, Port of Beaumont, and the Port of Orange. 

The Port of Brownsville is located on the Gulf of Mexico at the southernmost tip of 

Texas in Cameron County. This 4,200-foot long man-made basin at the western terminus of the 

Gulf Intracoastal Waterway ranges in width from 400 feet to 1,200 feet. Primary imports and 

exports include chemicals, clays, liquid petroleum gas, petroleum, grain, agricultural products, 

sulfur, steel, bulk minerals, ores, fertilizers and aluminum. This Foreign Trade Zone is also 

home to one of the largest shrimp boat fleets in the world (Port of Brownsville, no date). 

 The Port Isabel-San Benito Navigation District is located in the southernmost portion of 

the Texas Gulf Coast in Cameron County. This 726-acre deepwater port houses 27-plus 

businesses and supplies jobs to an estimated 600 persons (Port Isabel-San Benito Navigation 

District, 2004). 

 The Port Mansfield Navigational District is located on the banks of Laguna Madre in 

Willacy County along the southern Texas Gulf Coast. This port has a channel depth of 18 feet 

and provides shipping passage from the Laguna Madre through South Padre Island to the Gulf of 

Mexico. In fact, this port provides the only access to protected waterways between Brownsville 

and Corpus Christi. Commodities handled by this port include oil and gas production related 

supplies, and seafood products (Port Mansfield, no date). 

 The Port of Corpus Christi is located along the east coast of Texas on the Gulf of Mexico 

in Nueces County. This Foreign Trade Zone (FTZ #122) has a channel depth of 45 feet. In the 

year 2003, 6,766 vessels moved through this port (906 dry cargo, 1,073 tankers, and 4,787 

barges). Total tonnage figures for that year (short tons) summed to 85,131,124. Commodities 

handled included grain, chemicals, dry bulk, break bulk, liquid bulk, and petroleum. Its top 10 

import commodities were: crude oil, gas oil, bauxite ore, feed stock, slop and slurry, fuel oil, 

condensate, naphtha, reformate, and toluene. Top export products included: crude oil, gasoline, 

feed stock, gas oil, fuel oil, diesel, bauxite ore, slop and slurry, naphtha, and condensate. Rail 

service for the port is provided by Burlington Northern Santa Fe, the Texas Mexican Railway 

Company, and the Union Pacific Railroad. All three of those railroads have direct access to the 

dock for ease of transportation (Port of Corpus Christi, no date). 

 The Port of Port Aransas is comparatively small. It is located on Mustang Island in 

Nueces County between the Intracoastal Waterway and the Gulf of Mexico. 

 Located on the central Gulf Coast in Brazoria County, Port Freeport is currently the 16th

largest port in the nation in terms of foreign tonnage. In 2001, top import products included 

bananas, fresh fruit, and aggregate; rice and chemicals were the major export commodities. 

Total tonnage (short tons) for this year equaled 1,263,970. This port has a 45 foot-deep, 400 

foot-wide channel, and five operation berths. Port Freeport also provides 30,000 jobs and has a 
15

local economic impact of $7.06 billion annually. Rail service is provided by the Union Pacific 

Railroad (Port Freeport, no date). 

 The Port of Galveston is located on the upper Texas Gulf Coast in Galveston County. 

This 38-acre terminal has a channel depth of 40 feet. In addition to being a point of commerce, 

the Port of Galveston provides Carnival Cruises and the Royal Caribbean with cruise ship 

terminals. The Port of Galveston is also a Foreign Trade Zone (#36), handling 3,356,568 total 

tons of cargo in 2002. The Galveston Railroad serves the port with additional connections to the 

Burlington Northern Santa Fe Railroad, and the Union Pacific Railroad System (Port of 

Galveston, no date). 

 With tonnages that surpass 78 million net tons per year, the Port of Texas is the third 

largest port in Texas and the eighth largest in the nation. It is located along the central Texas 

Gulf Coast in Galveston County. The Texas City Terminal Railway Company, which links to the 

Union Pacific and the Burlington Northern Santa Fe, provides the port with direct rail service 

(Port of Texas, no date). 

 The Port of Houston is located along the central Texas Gulf Coast in Harris County. This 

25-mile long complex houses the port authority and more than 150 private industrial companies. 

This Foreign Trade Zone handled an estimated 175 million tons of cargo in 2002, with a total of 

6,414 vessels moving through its ship channels. It is ranked first in the nation in terms of foreign 

tonnage, and second in total tonnage. The Port of Houston also bears the distinction of being the 

sixth largest port in the world. Top import commodities moving into the port (in terms of 

tonnage) include: petroleum and petroleum products, crude fertilizers and minerals, iron and 

steel, organic chemicals, and ceramic products. Petroleum and petroleum products, organic 

chemicals, cereals and cereal products, plastics, and, animal/vegetable fats and oils are the 

primary export products. The Port of Houston provides approximately 287,000 direct and 

indirect jobs throughout the state with an $11 billion economic impact (Port of Houston 

Authority, no date). 

 The Port of Sabine Pass is a comparatively small port. It is located in the southeasternmost portion of Jefferson County on the Gulf of Mexico. 

 The Port of Port Arthur is located along the barge shipping routes of the Intracoastal 

Waterway in Jefferson County only 19 miles from the Gulf of Mexico. The Kansas City 

Southern Railroad (KCS) is the Port’s primary source of rail support. KCS connects with 

Canadian National, Union Pacific, Burlington Northern Santa Fe (BNSF), and Tex Mex (Port of 

Port Arthur, no date). 

 The Port of Beaumont Navigation District lies along the Sabine-Neches ship channel in 

Jefferson County. It is located approximately 84 miles east of Houston, 270 miles west of New 

Orleans, and 42 miles from the Gulf of Mexico. This designated Foreign Trade Zone (FTZ 

#115) has a channel depth of 40 feet, and is 400 feet wide. The principal commodities moving 

through this port include: forest products, grains, project cargo, military, bagged goods, 

aggregate, metals, and wood chips (Port of Beaumont, no date). 

 The Port of Orange, “The Greatest Small Port in America,” is located at the junction of 

the Sabine River and the Intracoastal Waterway System in Orange County. It has a channel 

depth of 30 feet. Union Pacific, Sabine River, and BNSF railroads provide rail service (Port of 

Orange, no date). 

 In terms of rail transportation, Texas has three Class 1 (Burlington Northern Santa Fe, 

Kansas City Southern, and Union Pacific) and two Class III rail lines (South Orient, and TexasMexican). These railroads cover 5,544 miles of railway throughout the state (Wilbur Smith 
16

Associates, 2003b). Amtrak is the major intercity and interstate passenger rail service provider in 

Texas. However, private automotive travel remains the most popular mode of intercity travel as 

many residents find Amtrak rail services inconvenient (Texas Department of Transportation, 

2002). 

 Texans enjoy a wide variety and number of media sources, including daily and weekly 

newspapers (200+), 227 AM and 296 FM radio stations, and 102 television stations (Doughty, 

2003; U.S. Newspaper List, no date). 

Physical Infrastructure. As of 1999, a total of 159 utility companies provided 

electricity to 1,395,908 retail customers in the State of Texas (75 cooperative, 74 public, and 10 

private sector). The five largest electricity plants by retail sales within Texas, with 

corresponding megawatt hours, for all sectors were: TXU Electric Company (95,927,336); 

Reliant Energy HL&P (69,374,552); Central Power & Light Company (21,303,608); San 

Antonio Public Service Bd., (15,630,348); and Entergy Gulf States, Inc., (14,832,656). These 

five utilities accounted for 72 percent of all utility sales in Texas in 1999. Retail sales (per 1000 

megawatt hours) summed to $25,692 in this year (USDOE, EIA, 2003b). 

 The largest natural gas suppliers in Texas include: TXU Gas, Southern Union Gas, 

Energas, Reliant, Energy/Entex, Lone Star Gas, City of Corpus Christi, Enron Corporation, and 

City Public Service (San Antonio). Water and sewage services are offered primarily through the 

municipalities (Texas Economic Development, no date). 

 There are several major telecommunications companies serving Texas. These include 

Bell System, GTE Southwest, Contel of Texas, Central Telephone Company of Texas, United 

Telephone Company of Texas, and Lufkin-Conrow Telephone Exchange (Handbook of Texas 

Online, 2002b). 

Interaction of Biophysical and Built Environments. Texas is a comparatively polluted 

state; it ranked fifth of 56 US states and territories (one being the most polluted) in 2001. In this 

same year, Texas ranked in the 95th percentile for total environmental releases (235,259,620 

pounds) and in the 95th percentile for its air and water cancer risk. However, Texas’s total cancer 

risk scores have decreased 75 percent from 1988 to 2001 (Scorecard, 2003). 

 Of Texas’s total 2001 environmental releases (235,259,620), air releases accounted for 

101,707,777 pounds, water releases totaled 26,008,065 pounds, and land releases equaled 

29,848,767 pounds. Additionally, off-site transfers in 2001 totaled 410,234,671 pounds, while 

production related wastes equaled 3,964,757,315 pounds (Scorecard, 2003). 

 The top 25 (of 100) releasing facilities in Texas in 2001, with releases in pounds in 

benzene-equivalents, were: BASF Corporation (17,704,256); Solutia Chocolate Bayou 

(17,585,235); BP Chemicals Green Lake Facility (14,586,843); Du Pont Victoria Plant 

(9,941,013); DuPont Beaumont Plant (9,331,055); Gibbons Creek Steam Electric Station 

(8,423,634); TXU Monticello Steam Electric Station & Lignite Mine (5,565,078); BP Texas City 

Business Unit (5,554,455); Martin Lake Steam Electric Station and Lignite Mine (5,326,491); 

Lyondell Chemical Company (4,614,120); Eastman Chemical Company Texas Operations 

(3,943,180); Limestone Electric Generating Station (3,681,386); Du Pont Sabine River Works 

(3,310,228); Dow Chemical Company Freeport Facility (3,106,102); ISP Tech, Inc., (2,823,113); 

TM Deer Park Services L.L.C., (2,755,042); Big Brown Steam Electric Station and Lignite Mine 

(2,715,931); Alcoa (2,405,140); DuPont La Porte Plant (2,242,166); Merisol USA L.L.C., 

(2,205,550); International Paper Texarkana Mill (2,173,055); Union Carbide Corporation 

Seadrift Plant (2,153,637); ExxonMobil Oil Beaumont Refinery (2,098,040); W.A. Parish 
17

Electric Generating Station (2,072,004); and Deer Park Refining Limited Partnership (2,021,832) 

(Scorecard, 2003). 

 The top 10 chemical releases presenting a cancer risk to Texas residents in 2001, with 

pounds in benzene-equivalents, included: carbon tetrachloride (43,000,000); arsenic (organic or 

inorganic) compounds (39,000,000); cadmium compounds (21,000,000); cadmium (7,300,000); 

chromium compounds (3,800,000); ethylene oxide (2,300,000); lead compounds (2,300,000); 

benzene (1,900,000); 1,2,3–trichloropropane (1,200,000) and chromium (1,100,000) (Scorecard, 

2003). 

 More positively, Texas is home to 23 Gulf Ecological Management Sites (GEMS), the 

largest three of which are Laguna Madre (609 sq. miles), Laguna Atascosa (65,096 acres), and 

Padre Island (133,000 acres). Each of these GEMS attempts to mitigate the impacts of the built 

environment on the natural environment. 

 Separating Padre Island from the South Texas coast, the Laguna Madre is a large shallow 

body of water (average depth is three feet) encompassing 609 square miles of estuarine and 

coastal marine systems. Its primary geomorphic characteristics include mudflats, barrier islands, 

sand dunes, spoil islands, saline marsh, and coastal sand plains. Ownership of the Laguna Madre 

is both public (e.g., Texas General Land Office; Texas Parks and Wildlife) and private (e.g., 

Audubon Society; King Ranch) (Texas Parks and Wildlife, 2003). 

 The Laguna Madre is home to several rare and endangered species, and fifteen rookeries. 

Protected species include Lilia de Los Llanos, Piping Plover, and the Peregrine Falcon. The 

Laguna Madre also functions as a breeding ground for numerous waterfowl, and brown shrimp. 

Wintering duck populations (Redheads, Canada Geese, Snow Geese, Canvasbacks, Pintails, 

Mallards, and Blue-winged Teal) arrive in the thousands to seasonally feast on Laguna Madre’s 

abundant sea grasses, mollusks, and crustaceans (Texas Parks and Wildlife, 2003). 

 The Laguna Madre offers both recreational (sport fishing) and commercial (petroleum, 

fishing) use. Commercial fishermen primarily target brown shrimp, while redfish, black drum, 

and flounder are the preferred catch of sports fishermen (Texas Parks and Wildlife, 2003). 

 There are four primary threats to the ecological integrity of the Laguna Madre. These 

include: oil spills from barges, agricultural pesticide runoff from the Arroyo Colorado (an 

irrigation drainage of the Lower Rio Grande Valley), hydrocarbon extraction, and accidental 

release of exotic shrimp or effluent by nearby commercial shrimp farms (Texas Parks and 

Wildlife, 2003). 

 The Laguna Atascosa National Wildlife Refuge covers 65,096 acres of lower Gulf Coast 

land in Cameron and Willacy Counties. Founded in 1946, this habitat provides protection for 10 

federally endangered/threatened species including: northern aplomado falcon, ocelot, Gulf Coast 

jaguarondi, brown pelican, hawksbill sea turtle, Kemp’s ridley sea turtle, piping plover, 

American alligator, green sea turtle, and loggerhead sea turtle. A wide variety of migratory birds 

also use the refuge as a wintering area. Laguna Atascosa additionally bears the distinction of 

being an archeological site, the southernmost waterfowl refuge in the United States, and having 

the most bird species (411) of any national wildlife sanctuary (Texas Parks and Wildlife, 2003). 

 The primary geomorphic characteristics of Laguna Atascosa include resecas (dry oxbow 

lakes), tidal mud/sand flats, brush-covered sand/clay dunes, coastal prairies, and wetlands. The 

Laguna is primarily used for educational purposes (e.g., research, student fieldtrips), outdoor 

recreational activities (e.g., hiking, fishing, hunting, biking, bird watching), and various 

commercial activities (e.g., exploration, special use). It is owned by the federal government and 

managed by the U.S. Department of Interior, Fish and Wildlife Service. Threats to the Refuge’s 
18

ecological integrity include increased development of the surrounding area, state road expansion 

(improved roads may lead to increased ocelot mortality), dredging, and disposal of spoil 

materials on and near the sanctuary from the Gulf Intracoastal Waterway (Texas Parks and 

Wildlife, 2003). 

 Spanning more than 133,000 acres of barrier islands, the Padre Island National Seashore 

(PINS) extends across Kenedy, Kleberg, and Willacy Counties. Established by the federal 

government in 1962, PINS is composed of wide, clean sandy beaches, a row of sand dunes 

running parallel to the shore, and grassy flats. It serves as a coastal barrier island system. Rare 

and endangered species on the island include: peregrine falcon, Texas pipefish, piping plover, 

loggerhead sea turtle, Kemp’s Ridley sea turtle, and seacoast bluestem. Padre Island also serves 

as a breeding ground for colonial nesting birds such as white pelicans, great blue herons, snowy 

egrets and laughing gulls, and a variety of shorebirds. One hundred twenty-five migratory 

species visit the island in the fall and spring, while Sandhill Cranes, herring and ring-billed gulls, 

peregrine falcons, and ospreys winter here (Texas Parks and Wildlife, 2003). 

 Padre Island is primarily used educationally, recreationally (e.g., fishing, camping, 

boating), and privately (mineral rights). The National Park Service is principally responsible for 

managing the use of the privately held mineral rights and limits commercial use (Texas Parks 

and Wildlife, 2003). 

 There are four primary threats to Padre Island’s ecological integrity. These include: 

continued dumping of plastics into the Gulf of Mexico which then wash ashore on the Island; air 

quality problems from area industries; potential for oil/gas contamination and oil spills; and 

increased residential and commercial development (Texas Parks and Wildlife, 2003). 

C. HISTORY

Settlement. A number of Native American groups inhabited the region of Texas long 

before European settlement. The Caddoan linguistic group inhabited the eastern part of Texas, 

along with the neighboring states of Louisiana and Arkansas. These people lived in large, 

spread-out village farm dwellings between the Neches and Sabine Rivers. By 1500, 

approximately 200,000 Caddos had organized into three confederacies consisting of the 

Natchitoches, the Kadohadacho, and the Hasinai. By the 1700s, however, European-borne 

diseases had eliminated 90 percent of the Caddos (Campbell, 2003). 

 Other native populations included the Karankawas and the Coahuiltecan. The 

Karankawas were subsistence fishers, hunters and gatherers who lived along the Gulf Coast. The 

Coahuiltecan, who lived near the lower Rio Grand, survived on deer, javelina, pecans, mesquite 

beans, prickly pear cactus, stool plant bulb, lizards, and snakes. The Lipan, a nomadic subgroup 

of the Apaches, roamed across the eastern part of the state. While they initially fought against 

intruding American settlers, they became allies in the 19th century. The Mescalero, another 

Apache subgroup, inhabited the western part of the state. The Tonkawa, who hunted large game, 

occupied the central part of the state, while the Comanche claimed the north and northwest 

(Campbell, 2003). 

Beginning with Pineda in 1519, many Spanish explorers discovered Texas during the 16th

and 17th centuries. Other explorers included Cabeza de Vaca, who shipwrecked on Galveston 

Island in 1528, and De Coronado, who traveled across Texas between 1540 and 1542. 

Europeans began settling in the state in 1685 (Yoakum, 1855). 

 
19

 The first European emigrants to come to present-day Texas were Robert Cavalier, and 

the Sieur de La Salle exploration party. The latter navigated the Mississippi River from Canada 

and eventually followed the coastline to what is now Matagorda Bay in 1685. Here, he 

established Fort St. Louis and began a colony. Two years later, La Salle was murdered by his 

own men (Yoakum, 1855). 

 While La Salle considered Texas a part of the Louisiana Territory, the Spanish did not. 

Not surprisingly, escalating tensions contributed to the war between France and Spain. Spain 

began permanently occupying the territory in 1715, establishing missions throughout Texas. The 

towns of San Antonio, Adaes, La Bahia, Nacogdoches, Orquisaco, and Mound Prairie were 

established alongside the Franciscan missions (Yoakum, 1855). Despite the Spanish claim to the 

land, France and England continued to contest sovereignty. 

 By 1800, the Spanish colony was increasingly surrounded by non-Spanish inhabitants. 

Hoping to stave off an attack, the Spanish government gave Anglo-Americans access to the 

Mississippi while it simultaneously discouraged immigration to Texas; Anglo-Americans who 

came to the territory were often slain. In 1812, the Republican Army of the North, under the 

command of William Magee and Bernardo Gutiérrez de Lara, crossed the Sabine River and 

invaded Texas. After several confrontations and retreats by the Royalist Army, the Republican 

Army eventually claimed the independence of Texas and drew up a constitution (Campbell, 

2003). 

Tensions between the Mexican and American governments once again flared when 

Mexico barred immigration into Texas in 1830. Within two years, escalating tensions 

culminated in the Battle of Fort Velasco and the Battle of Nacogdoches. After the defeat of the 

Mexicans, Texans completed their constitution and submitted it to the U.S. government for 

ratification and, in1836, the Texas Declaration of Independence was signed (Yoakum, 1855). 

 Nevertheless, the Mexican government continued to contest sovereignty. Indeed, 

between 1836 and 1846, fierce battles, sieges, and raids waged on both Texas and Mexican soils 

led to eruption of the Mexican-American War in 1846. By this time, however, President Polk 

had already admitted Texas as the 28th state in the nation. Boundary disputes would remain 

unresolved (at least as far as Mexico was concerned) until the Compromise of 1850. 

Industrialization. Beginning in the 1820s with the arrival of southern immigrants, the 

Texas economy developed around the institution of slavery and agricultural production, 

particularly cotton. At this time, nearly 75 percent of all Texan families were headed by 

southerners from other states; and, roughly 25 percent of these families owned at least one slave 

(Campbell, 2003). 

 Extreme growth characterized Texas’s agricultural economy between 1850 and 1860 

when acreage in the state increased by 305 percent, corn crops by 187 percent, and cotton crops 

by 643 percent. However, the state lagged behind others in transportation, manufacturing, and 

urbanization (Campbell, 2003). 

The Civil War had little direct impact on Texas. It did, however, prevent local railroad 

lines from linking with the national system, thus limiting access to external markets. As late as 

1871, Texas had only one interstate rail connection running between East Texas and Shreveport, 

Louisiana (Pratt, 1980). 

Between 1870 and 1900, the state’s population flourished, particularly along the coast 

and the interior areas that were economically and geographically connected to the coast. In 

1870, 9,382 persons lived in Houston and in 13,818 in Galveston. By 1900, the population of 

these cities grew to 44,623 and 37,789, respectively (Pratt, 1980). 
20

After the 1901 discovery of oil at Spindletop in Beaumont (Jefferson County), new 

economic patterns began to emerge, notably, the development of industry. In this decade, many 

new manufacturing plants were established, sulfur production quadrupled, meat-packing plants 

were constructed in Fort Worth and other cities, and public utility companies grew, generating 

power by burning oil, natural gas, or lignite coal (McKay and Faulk, 1965). Lumber developed 

as a distinct industry as paper-manufacturing plants proliferated, including the Champion Paper 

and Fiber Company at Pasadena. At the same time, timber exports declined as local demand for 

timber increased. The Sabine-Neches region continued as the center of timber activity, and 

Orange reemerged as a processing and shipping center for lumber (Pratt, 1980). 

The shipping industry grew tremendously during the interwar years, in part as a result of 

the Houston Ship Channel’s debut in 1914. Total tonnage at the Port of Houston increased from 

about one million to nearly 14 million between 1919 and 1929; and, by 1941, this figure had 

nearly doubled. By 1931, Houston was the sixth largest port in the nation in foreign commerce 

and third in total exports. Oil and cotton were its chief exports (Pratt, 1980). 

 The coastal cities of eastern Texas also experienced significant growth during these years 

of industrial growth. By 1940, Houston was the most populated city in the state and the 21st

largest city in the U.S. (Pratt, 1980). 

The manufacturing industry developed rapidly during the 1950s. Attracted to the Gulf 

Coast region’s numerous resources, including affordable transportation and easy access to oil 

and natural gas, many chemical production and manufacturing companies established plants in 

the area. These plants included Reynolds Aluminum, Dow Chemical, Sinclair Oil, Hughes Tool, 

Champion Paper, Cameron Iron, Sheffield Steel, Shell Oil, Carbide and Carbon Chemical, 

American Oil, Humble, DuPont, Gulf Oil, Texaco, and Magnolia Oil. At the same time, 

Convair, General Motors, and Ford settled in the northern part of the state. By 1947, there were 

7,128 manufacturing companies and plants in Texas, with $1.7 billion in value; by 1973, there 

were 14,431 manufacturing establishments, with $15.2 million in value. Although electronics 

grew faster than any other industry, oil refining and chemical production were the mainstays of 

the Texas economy throughout the latter half of the 20th century (Campbell, 2003). 

Oil. Sightings of oil seepages in Texas date back to the mid-1500s when Spanish 

explorers used oil to caulk their ships (Warner, 1966; Olien and Olien, 2002). Later, travelers on 

the Spanish Trail used oil from ground seepages to lubricate wheels, while Indian, Hispanic, and 

Anglo settlers found medicinal uses for oil taken from springs (Olien and Olien, 2002). 

 Albeit on a small scale, crude oil production has existed in Texas throughout the 19th

century. Between 1870 and 1890, a number of oil companies drilled wells, though all were 

shallow and limited in production. By 1890, local demand for oil as a lubricant and boiler fuel 

prompted the construction of a 15-mile pipeline from Oil Springs to the railroad at Nacogdoches, 

along with a small refinery near Bayou Vistador (Olien and Olien, 2002). In 1896, the state 

experienced its first oil boom, occurring at Corsicana. At this site, approximately 300 oil wells 

produced 800,000 barrels over the next four years (McKay and Faulk, 1965). 

 The discovery of oil at Spindletop in Beaumont, Texas ushered in a new era for the oil 

industry at both the state and national level. The Gladys City Oil, Gas, and Manufacturing 

Company, who had three failures in drilling in Beaumont, eventually found oil at about 1,020 

feet in early 1901. This discovery marked the beginning of the first great oil boom in Texas and 

the start of the “gusher age” (Olien and Olien, 2002). 

 Small refineries and pipelines followed the discovery of oil. By 1902, one pipeline from 

Spindletop to the Neches River, two pipelines to Port Arthur, and a fourth pipeline to Sabine had 
21

been laid. Refineries accompanied pipeline development. In 1902, three developers established 

two refineries in Port Arthur and one in Beaumont: J.S. Cullinan (then called the “Texas Fuel 

Company”), Guffey and Galey, and the Burt Oil Company. By 1904, over $10 million had been 

invested in refineries, which were soon competing on the petroleum market (McKay and Faulk, 

1965). 

 By 1903, however, Spindletop production began to suffer from over-drilling and 

overproduction of the area and, in 1905, production peaked at 28 million barrels. Production 

further fell to less than 10 million barrels in 1910 (McKay and Faulk, 1965). Consequently, 

overproduction caused prices to drop severely and “wrecked the market” (Haley, 1993). 

To counter this loss, industry leaders buried hundreds of miles of feeder pipelines 

bringing crude oil directly to the refineries; by 1910, oil production began to increase. Industry 

investments facilitating financial diversification contributed further to the economic growth of 

four major companies: Gulf Oil Corporation, the Texas Company, the Magnolia Petroleum 

Company, and the Humble Oil and Refining Company (McKay and Faulk, 1965). 

World War I increased national demand for more oil. “Perfectly timed” oil strikes at 

Goose Creek in 1916 and 1917, producing 8,000 and 35,000 barrels a day, respectively, turned 

the sleepy town of Ranger (south of Houston) into a boomtown. Following World War I, oil 

field discoveries at Mexia (1920), Luling (1922) and Permian Basin (1921) turned these villages, 

too, into boomtowns practically overnight (Haley, 1993). 

Growth in industry technology accompanied these discoveries. Ross Sterling, who 

bought his first oil well in 1911 and acquired a pipeline to transport petroleum from the Goose 

Creek field, established the Humble Oil and Refining Company. Other advances include an 

apparatus that prevented blowouts and steel platforms. By 1925, more than 80 refineries 

“elevated the state from the colonial status of a raw-materials producer to that of an economic 

colossus” (Haley 1993, 167). 

 In 1930, East Texas Field, the largest field in North America, was discovered. Drilling 

rapidly expanded into five counties and, soon, more than 27,000 wells on 134,000 acres were 

established. The field “became a giant” with reserves of roughly 6 billion barrels (Hughes 1993, 

138). 

 Beginning in 1930, however, oil from the East Texas field swamped the U.S. crude oil 

market, driving prices down to levels at which production was no longer profitable. Oilmen lost 

the hope that they could regulate themselves. Although the Railroad Commission tried to gently 

correct the market by enforcing production restrictions, Ross Sterling, governor of Texas in 

1931, declared a shutdown by martial law and ordered National Guard troops into the East Texas 

field. The field was temporarily shut down from August 17 to September 5 of 1931, during 

which time prices rose from 10 to 85 cents a barrel. In 1932, the Railroad Commission issued 19 

prorogation orders, all of which were successfully challenged by producers. The battle between 

producers and regulatory agencies continued. However, a number of independent producers and 

several “majors,” including Humble Oil, organized the Texas Oil and Gas Conservation 

Association (TOGCA) and, in 1933, TOGCA pushed the Texas Legislature to establish a new oil 

and gas regulatory agency–the Natural Resources Commission (Olien and Olien, 2002). 

While contention defined the oil industry of East Texas during the early 1930s, the 

industry continued to expand. In 1933, Amerada undertook the first seismic exploration off of 

Brazoria County, while both the Salt Dome Oil Company and the California Company conducted 

geophysical studies off of Galveston Bay. The first drilling pier was established in 1935 

following the Stanolind Oil and Gas Company’s work with area torsion balance and reflection 
22

seismograph. By September 1935, Texas was leasing tracts in and near Turtle Bay to three 

major oil companies. After the 1938 discovery and development of Creole Field offshore 

Cameron Parish in Louisiana, more attention was given to the Texas coast. In this same year, 

Humble drilled off of Jefferson County, but its holes were dry. A year later, another dry hole 

drilled at Sabine Pass further discouraged geoscientists. Finally, drilling offshore was put to rest 

for several decades. Nevertheless, technological advances continued including controlled 

directional drilling, submersible drilling barges, and diesel electric power (Olien and Olien, 

2002). 

 Shipyard development accompanied the growth of the oil industry. Shipyards along the 

Texas Gulf Coast became more specialized in constructing oil-related marine equipment, 

including offshore drilling rigs, and in facilitating the large oil companies’ private water 

transportation system (Pratt, 1980). Texaco, one of the first companies in the state to operate a 

shipbuilding industry, organized the Texas Steamship Company in 1912, but later abandoned this 

effort in favor of purchasing ships from established eastern shipyards. As Pratt notes: 

The oil-related industrial complex on the Gulf Coast centered around the large refineries; 

other regions throughout the world benefited more directly from other activities, such as 

shipbuilding ...The glue holding together the various regional economies that performed 

such oil-related functions was the vertically integrated operations of the largest oil 

companies (1980, 136). 

 During World War II, the petrochemical industry expanded along with the oil industry to 

accommodate the demands of the war. Although offshore oil exploration was well established 

by this time, production advanced in leaps and bounds following the war. The coast line soon 

became dotted with oil rigs established by major oil companies. 

 During the 1950s, eight new gas fields were discovered: Hansford (1953); Emperor 

(1954); Dora Roberts (1955); Fashing and Halley (1956); Viboras (1957); Thompsonville 

(1959); and the Massive First and Massive Second Sands of Viboras (1959). While production 

continued, the domestic market struggled against the inexpensive foreign crude oil market. In 

1955, imports increased by over 17 percent, and over the following few years, domestic demand 

dropped. Consequently, the Railroad Commission reduced producing days to only eight days of 

the month in 1990. As a result, a number of oil and gas companies were sold (Handbook of 

Texas Online, 2002a). 

 In 1964, the Permian Basin Rate Case went to the Supreme Court, which resulted in a 

ruling of greater jurisdiction by the Federal Power Commission over the production of oil and 

gas for the interstate market. Oil prices increased as well as activity in the state, and in 1972, 

Texas oil production peaked at over 1.26 billion barrels; however, oil reserves had been on the 

decline since 1951, when reserves proved to be 15.6 billion barrels. In 1973, drilling and 

exploration heightened, and the number of oil rigs established increased 61 percent from 1973 to 

1975 (Handbook of Texas Online, 2002a). 

 The final oil boom in the state occurred in the 1970s and the 1980s. By 1981, however, 

the bottom of the industry had fallen out. Nevertheless, Texas oil refineries remained the most 

active in the U.S., processing over 1.6 billion barrels of fluid during 1992 (Handbook of Texas 

Online, 2002a). 
23

D. DEMOGRAPHIC CHARACTERISTICS

Population and Growth. With the exception of the decade between 1930 and 1940, the 

state has experienced steady and significant increases in population in every decade since 1940. 

Particularly increases occurred between 1920 and 30 (25%), 1940 and 1950 (20%), 1950 and 

1960 (24%), 1970 and 1980 (27%) and 1990 and 2000 (23%). In all, the population of the State 

of Texas increased 72 percent, and gained (Table 1) (U.S. Census Bureau, 2000b). 

Table 1 

 Population Changes, Texas State: 1930-2000 

Year Population Change from Previous 

Census 

Percent Change from 

Previous Census 

2000 20,851,820 3,865,310 22.7 

1990 16,986,510 2,757,319 19.4 

1980 14,229,191 3,032,461 27.1 

1970 11,196,730 1,617,053 16.9 

1960 9,579,677 1,868,483 24.2 

1950 7,711,194 1,296,370 20.2 

1940 6,414,824 590,109 10.1 

1930 5,824,715 1,161,487 24.9 

 Source: U.S. Census Bureau, 2000b. 

Ethnicity and Age. The majority of the population in Texas is White; there is also a large 

Hispanic population. In 2000, the state’s population was 71 percent Caucasian or White, 32 

percent Hispanic, and 12 percent African-American or Black. American Indians, Asians, and 

Pacific Islanders comprised only a small percentage of the total population, and nearly 12 

percent of the population self-identified as “Other”. An additional 3 percent claimed two or 

more racial identifications (Table 2). 
24

Table 2 

 Racial and Ethnic Populations, Texas State: 2000 

Race/Ethnicity Population Percent 

 White 14,799,505 71.0 

 African American 2,404,566 11.5 

 Hispanic* 6,669,666 32.0 

 American Indian 118,362 0.6 

 Asian 562,319 2.7 

 Pacific Islander 14,434 0.1 

 Other Race 2,438,001 11.7 

 Two or More Races 514,633 2.5 

 * Hispanics may be of any race. 

Source: U.S. Census Bureau, 2000b. 

 Texas is a state with a large percentage of persons under the age of 18. In 2000, 10 

percent of the population was 65 years of age or older. In this same year, 28 percent of the 

population was under 18 years of age. The median age of Texan residents was 32.3 in 2000; the 

national median age was 35.3 (U.S. Census Bureau, 2000b). 

E. ECONOMY 

Income and Poverty. Indicators of economic health for the State of Texas are mixed. 

For example, while Texans earned a median family income of $45,861 in 2000, or 91 percent of 

the national median ($50,046), poverty rates for both individuals (15%) and families (12%) 

exceed national poverty figures of 12 percent and 9 percent, respectively. Additionally, while 

single women with minor children headed 7 percent of all Texan households, they accounted for 

36 percent of families living in poverty. Nevertheless, poverty rates for this population are lower 

in Texas than for the nation as a whole, where single women with minor children headed 12 

percent of all families, but represented 44 percent of all families living below the poverty 

threshold. Texan households receiving public assistance in 2000 (3.2%) did so at rates 

comparable to the nation as a whole (3.2%) (Table 3) (U.S. Census Bureau, 2000b). 
25

Table 3 

 Income, Poverty and Family Structure, Texas State: 1970-2000 

Year Median Family 

Income (2000 

Constant $) 

Change from

Previous 

Census 

Ratio to

National

Median

Persons 

in Poverty

Households 

Receiving 

Public 

Assistance* 

Female-Headed 

Families with 

Children 

2000 $45,861 $14,308 0.91 15.4% 3.2% 7.6% 

1990 $31,553 -$1,320 0.89 18.1% 8.4% 16.1% 

1980 $32,873 $6,166 0.98 14.7% -- -- 

1970 $26,707 $7,542 0.88 18.8% -- -- 

 *Prior to the Census 2000, the Decennial Census enumerated “persons” receiving public 

 assistance rather than “households”. 

 Source: U.S. Census Bureau, 2000b. 

Employment. Historically, the Texas economy has been based upon agriculture, 

livestock, and forestry. After the 1901 discovery of oil at Spindletop, the manufacturing industry 

boomed as oil refining and petrochemical businesses grew. State employment trends reflect this 

growth. In 1940, the majority of the state’s population worked in the agriculture, fishing, and 

forestry, and manufacturing industries. Over the latter half of the 20th century, however, services 

came to dominate the state as the primary employment sector. For example, while agriculture 

declined 29 percent in 1990, services increased 53 percent. This growth trend continued 

throughout the decade. By 2000, the service sector employed nearly four million people, or 41 

percent of the labor force. And, despite a 7 percent decrease in its employment rate, 

manufacturing remains strong in the economy, employing nearly 12 percent of the state’s labor 

force (Table 4) (U.S. Census Bureau, 2000b). 
26

Table 4 

 Employment in Major Industrial Sectors, Texas State: 1990-2000 

Year Agric., 

Fishing & 

Forestry 

Mining Constr. Manuf. Trans., 

Comm.

& Public 

Util. 

Wholesale 

& Retail 

Trade 

Finance, 

Insurance 

& Real 

Estate 

Services Public 

Admin

Workers in sector 

2000 150,792 121,524 743,606 1,093,752 535,568 1,470,932 630,133 3,812,328 417,100

1990 212,402 164,571 514,102 1,101,938 580,315 1,707,213 521,461 2,487,488 344,859

Percent of Workers in Sector 

2000 1.6% 1.3% 8.1% 11.8% 5.8% 15.9% 6.8% 41.3% 4.5% 

1990 2.8% 2.1% 6.7% 14.4% 7.6% 22.3% 6.8% 32.6% 4.5% 

Growth from Previous Census 

2000 -29.0% -26.1% 44.6% -7.0% -7.7% -13.8% 20.8% 53.2% 20.9% 

1990 -- -- -- -- -- -- -- -- -- 

Source: U.S. Census Bureau, 2000b. 

In 2002, the 20 largest employers by total number of employees in Texas were: 

American Airlines (Dallas/27,000); University of Texas at Austin (Austin/23,787); Dell Inc., 

(Round Rock/21,000); Kemah Boardwalk (Kemah/20,000); Drivers License Department (San 

Antonio/15,210); USAA (San Antonio/12,500); MD Anderson Cancer Center (Houston/12,000); 

University of Texas MD Anderson Center (Houston/11,000); UTMD Anderson Cancer Center 

(Houston/11,000); Lockheed Martin Corporation (Fort Worth/10,500); Electronic Data Systems 

Corporation (Plano/10,000); Wilford Hall USAF Hospital (Lackland AFB/8,000); Texas Tech 

University (Lubbock/8,000); Texas A & M University Newspaper (College Station/7,500); Dow 

Chemical Company (Freeport/7,500); Bell Helicopter Textron Inc., (Hurst/7,500); Scott & White 

Hospital (Temple/7,000); Parkland Health & Hospital System (Dallas/6,900); Motorola 

Semiconductor Products (Austin/6,000); and Methodist Diagnostic Hospital (Houston/6,000) 

(InfoUSA, 2004). 

 As of 2005, there were 48 Texas-based companies on the Fortune 500 list (Business and 

Data Industry Center, 2005), and 94 on the Fortune 1,000 list (Fortune 500, 2005). The top five 

companies on the list are: Exxon Mobil, Conoco Phillips, Valero Energy, Dell, and Marathon Oil 

(Fortune 500, 2005). 

Industry. While Texas was historically an agricultural and manufacturing center, state 

earnings increasingly point to the growing importance of the services sector. In fact, “services” 

is the principle industry sector in the state in terms of workers’ earnings, followed by 

government and manufacturing (Table 5). For example, services accounted for more than 25 

percent of workers’ earnings ($422 billion) in 1999. Moreover, this reflects an increase of nearly 
27

29 percent in service earnings from 1990. Manufacturing earnings in 1999 amounted to nearly 

$56 billion, or 13 percent of total earnings, with industrial machinery and equipment 

manufacturing, and chemical and allied product manufacturing each contributing 2 percent to 

this total. This sector experienced 11 percent growth from 1990, mostly in these two sub-sectors. 

Earnings from oil and gas extraction constituted 4 percent of total earnings, or $18 billion in 

1999 (Table 5). 

 In 2002, the top five agricultural commodities in Texas, with their value of receipts in 

thousands, were: cattle and calves ($5,862,734); greenhouse/nursery ($1,348,136); cotton 

($974,367); broilers ($893,327); and dairy products ($680,604). These commodities had a total 

value of $12,664,912 (U.S. Department of Agriculture, ERC, 2004). 

 The top five agricultural exports in 2002, with their value in millions, were: live animals 

and meat ($696); cotton and linters ($426); hides and skins ($284); feeds and fodders ($271); and 

feed grains and products ($260). Total economic value (in millions) of these products sums to 

$2,932 (U.S. Department of Agriculture, ERC, 2004). 

 The top five agricultural counties in terms of 1997 sales, with their percent of the state’s 

total receipts, were: Castro (5%), Deaf Smith (5%), Parmer (4%), Swisher (3%), and Dallam 

(3%) (U.S. Department of Agriculture, ERC, 2004). 

 As of June 1999, Texas had 4,620 banking and savings institutions, with deposits totaling 

over $144.7 billion. It also had 736 savings institutions, with deposits totaling $207 billion. 

Expenditures in federal funds and grants in this same year totaled $98 billion (U.S. Census 

Bureau, 2002). 
28

 Table 5 

 Earnings in Major Industry Sectors and Selected Sub-sectors, 

Texas State: 1990-1999 

Industry Earnings (Constant 2000 

$1000’s) 

Share of

Earnings

Change Share of 

Change 

1990 1999 1999 1990-1999 1990-1999

 Earnings $224,613,728 $422,006,707 100.0% $197,392,979 100.0% 

 Farm Earnings $2,713,136 $4,353,527 1.0% $1,640,391 0.8% 

 Ag. Services, Forestry, and 

Fishing $1,221,896 $2,487,724 0.6% $1,265,828 0.6% 

 Fishing $89,698 $91,498 0.0% $1,800 0.0% 

 Mining $10,886,626 $18,799,695 4.4% $7,913,069 4.0% 

 Oil and gas extraction $10,438,424 $18,136,274 4.3% $7,697,850 3.9% 

 Construction $13,052,816 $27,489,268 6.5% $1,443,452 0.7% 

 Special trade contractors $7,079,508 $16,355,426 3.9% $9,275,918 4.7% 

 Manufacturing $34,450,261 $55,753,761 13.2% $21,303,500 10.8% 

 Fabricated metal prods. $2,564,932 $4,233,729 1.0% $1,668,797 0.8% 

 Indust. machine & equip. $4,337,627 $8,443,702 2.0% $4,106,075 2.1% 

 Food and kindred $2,564,210 $3,483,331 0.8% $919,121 0.5% 

 Chemicals and allied $4,718,260 $7,952,397 1.9% $3,234,137 1.6% 

 Petroleum and coal $1,629,688 $2,004,974 0.5% $375,286 0.2% 

 Transportation and Public 

Utilities $17,851,374 $38,658,341 9.1% $20,806,967 10.5% 

 Trucking & warehousing $3,160,870 $6,350,399 1.5% $3,189,529 1.6% 

 Water transportation $485,294 $697,347 0.7% $212,053 0.1% 

 Transportation by air $3,045,495 $5,864,995 1.4% $2,819,500 1.4% 

 Wholesale Trade $15,374,575 $30,625,823 7.2% $15,251,248 7.7% 

 Retail Trade $21,233,611 $37,509,519 8.9% $16,275,908 8.2% 
29

 Table 5 

 Earnings in Major Industry Sectors and Selected Sub-sectors, 

Texas State: 1990-1999 (continued) 

 Eating & drinking places $4,766,639 $9,147,353 2.2% $4,380,714 2.2% 

Finance, Insurance, and Real 

Estate $13,992,269 $33,791,495 8.0% $19,799,226 10.0% 

Services $54,586,228 $111,568,827 26.4% $56,982,599 28.8% 

 Business services $11,235,877 $31,113,812 7.4% $19,877,935 10.1% 

 Health services $16,169,418 $28,583,862 6.8% $1,241,444 0.6% 

 Legal services $5,658,306 $8,066,697 1.9% $2,408,391 1.2% 

 Engineering and 

 management services $938,856 $2,477,888 0.6% $1,539,032 0.8% 

Government $39,250,936 $60,968,727 14.4% $21,717,791 11.0% 

 Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2000. 

 Marine-based Activities. Some 2.4 million persons fished recreationally in Texas in 2001 

(91% residents; 9% non-residents). These anglers spent $2 billion dollars on fishing-related 

expenses in Texas in this same year, 45 percent of which was spent on trip-related expenses, 36 

percent on equipment, and 20 percent on other fishing-related expenses (U.S. Department of the 

Interior, Fish and Wildlife Service & U.S. Dept. of Commerce, Census Bureau, 2003). 

 Saltwater and freshwater commercial and recreational fishing by both residents and nonresidents in the State of Texas in 2001 generated a combined total of $1.1 billion dollars in 

earnings, $125 million in state sales tax revenues, $187 million in federal income taxes, and $2.1 

billion in retail sales. A total of 41,313 persons were employed by the recreational and 

commercial industries in that same year (Southwick and Allen, 2003). 

 Commercial fishing in Texas centers on salt-water fishing along the Gulf Coastline where 

shrimp is the primary catch. Other important commercial product includes: crab, oysters, finfish, 

snapper, black drum and tuna. Brownsville-Port Isabel, Aransas Pass-Rockport and Freeport are 

the leading centers of commercial fishing in Texas. In 2000, 1,459,843 anglers acquired fishing 

licenses in the State of Texas (U.S. Department of Fish and Wildlife Service, 2000). 

 Aransas County relies extensively on shrimping, fishing, and marine-related tourism to 

support its economy, with shrimping as the top commercial fishing activity. White, brown, and 

pink shrimp are the primary catches, but the marine industry also supports a large bait shrimp 

industry. In 2002, the shrimp vessel contribution to the county tax base was 0.43 percent for 

Aransas County (Texas Parks and Wildlife 2002, 53). Other markets include blue crab, stone 

crab, commercial fin fishing, black drum, flounder, and snapper. 

 The Port of Brownsville also supports one of the largest shrimp boat fleets in the world, 

but, due to overfishing, the state implemented harvest restrictions on the shrimping industry in 
30

1994. In 2002, the shrimp vessel contribution to the county tax base was only 0.11 percent for 

Cameron County (Texas Parks and Wildlife 2002, 53). 

Military Installations. As of August 2001, there were 13 active military installations in 

Texas. Seven of these installations were Air Force, two were Army, and four were Navy. 

 Fort Brooks Air Force Base (AFB) is located in southeast San Antonio in Bexar County. 

It was dedicated in 1917. Fort Brooks is home to the 311th Human Systems Wing whose mission 

it is to protect and enhance aerospace medicine, crew systems, human resources, and 

environment, safety, and occupational health (Global Security, 2003; Military.Com, 2000). 

 Dyess AFB is located in west central Texas in the city of Abilene (Taylor County). This 

6,409 acre base is home to the Seventh Bomb Wing and more than 13,000 military and civilian 

personnel. It was dedicated in 1956. The Bomb Wing develops and maintains operational 

capacity for 38 B-1B aircraft. It is also responsible for educating and producing combat-ready 

aircrews. Employing over 5,000 people, Dyess AFB is the single largest employer in Taylor 

County (Global Security, 2003; Military.Com, 2000). 

 Goodfellow AFB is located on 1,137 acres of land in west Texas near San Angelo. This 

base is home to the17th Training Wing, and several tenant organizations. The Wing’s primary 

mission is to provide air education and training to Air Force personnel (Global Security, 2003; 

Military.Com, 2000). 

 The 7,000-acre Lackland AFB is located in southwestern San Antonio. It was established 

in 1942. This base houses the 37th Training Wing whose responsibility it is to provide training to 

all non-prior service airmen of the regular Air Force, Air National Guard, and Air Force Reserve 

(Global Security, 2003; Military.Com, 2000). 

 Laughlin AFB is located in Del Rio, Texas. In operation since 1962, this air education 

and training command readies undergraduate pilots for service in the United States Air Force 

(Global Security, 2003; Military.Com, 2000). 

 Randolph AFB is located in Universal City. It was dedicated in 1930. This base is the 

headquarters of the Air Education and Training Command. The Air Force Personnel Center, the 

Air Force Headquarters Recruiting Services, and the 19th Air Force also maintain a presence 

here. Randolph employs 5,700 military and 6,500 civilians (Global Security, 2003; 

Military.Com, 2000). 

 Sheppard AFB is located in Wichita Falls. This training and education center is the 

largest and most diversified training base. It provides specialty academic training to 

undergraduate pilots including aircraft maintenance, civil engineering, communications, and 

comptrolling. Sheppard AFB has been active since 1941 (Global Security, 2003; Military.Com, 

2000). 

 The Fort Bliss Army Base spans more than one million acres in the city of Fort Bliss. It 

is the Army’s second largest base and was established in 1848. Fort Bliss is primarily 

responsible for air defense artillery training, and contributes more than $1billion dollars to the 

local economy each year (Global Security, 2003; Military.Com, 2000). 

 Fort Hood is the largest active duty armored post in the nation (340 square miles). Fort 

Hood is located in west Texas adjacent to the town of Killeen. The First Cavalry Division, 

Fourth Infantry Division, Command III Corps (headquarters), Third Personnel Group, Third 

Signal Brigade, and many other tenet organizations make their home here. Approximately 

71,000 persons (42,000 soldiers) are posted at Fort Hood (Global Security, 2003). 

 The Naval Air Station (NAS) Corpus Christi is located 10 miles southeast of Corpus 

Christi in southeast Texas. This NAS is home to the Chief of Naval Air Training, Commander, 
31

Mine Warfare Command, Naval Hospital, Training Air Wing Four, VT-27, VT-28, VT-31, 

Corpus Christi Army Depot, U.S. Customs, and the Coast Guard Air Group/Air Station. The 

primary responsibilities of the NAS Corpus Christi include instruction on basic flight 

maneuvering and traffic pattern operations (Global Security, 2003; Military.Com, 2000). 

 The NAS Joint Reserve Base Fort Worth is responsible for training the Naval Air/Surface 

Reserve Forces. It is located in the city of Fort Worth and was commissioned in 1994. This base 

hosts several fighter/attack and airlift units from the reserve components of the Navy, Marine 

Corps, and Air Force (Global Security, 2003) 

 Naval Air Station (NAS) Kingsville is located in the city of Kingsville in south Texas 

near Corpus Christi. Its primary mission is jet aviation training. Kingsville hosts Training Air 

Wing TWO, and a variety of military and civilian tenant organizations. This base employs 850 

military personnel and 625 contract maintenance personnel (Global Security, 2003). 

 Naval Station Ingleside is in the city of Ingleside in the “Coastal Bend” region of Texas. 

It was established in 1988. The personnel at this base are responsible for supporting all 

commands of the “Mine Warfare Center of Excellence.” This base is the homeport to 12 

Avenger Class mine-countermeasure vessels and 12 Osprey Class coastal mine hunters. 

Approximately 3,400 Navy personnel are housed at Ingleside (Military.Com, 2000). 

Recreation and Tourism. Texas is a state known for its outdoor recreation, including 

hiking, paddling, biking, fishing, and birding. National parks include Big Bend, Big Thicket, 

and the Guadalupe Mountains. Angelina, Davey Crockett, Sabine, and Sam Houston are among 

the national forests located within the state. Popular State Parks include Beaver’s Bend, 

Buescher, Inks Lake, Pedernales Falls, and South Llano River. Texas’s National Recreation 

Areas– Lake Meredith and Padre Island National Recreation Areas– additionally afford ample 

opportunity for enjoyment. Golf is also an economically important recreational activity within 

the state. 

 State festivals include the Houston-Stafford Texas Hot and Spicy Festival, and the 

Sugarland Children’s Festival; the Anahuac Texas Gatorfest; the Hallettsville State 

Championship Fiddlers Frolics; the Huntsville Sam Houston Folk Festival; the Anhalt Cajun 

Festival and Gumbo Cookoff; the Houston Seafood Festival, the Houston Soulfood and Comfort 

Food Festival; the Bedfore Blues Festival and Arts Fair in Dallas; the Unity through Diversity 

Festival in Amarillo; the Rains County Eagle Festival in Emory; the Miller Fest in Fort Worth; 

the Texas Butterfly Festival in Mission; the Sahawe Indian Dancers Winter Night Festival; the 

Glen Rose Fall Bluegrass Festival; the Poteet Strawberry Festival; the Kilgore Shakespeare 

Festival; the Arlington Feast Fest; the Texas Book Festival in Austin; the Scottish Festival in 

Arlington; and the Friends of Willis Festival in Willis. Texas also maintains 542 public libraries. 

 The recreation and tourism industry is vital to the Texas economy. According to the 

Texas State Senate, only California attracts more visitors than Texas. Visitors from the United 

States took 116 million leisure trips to Texas in 2000, spending over $110 million each day. In 

that same year, over one million international tourists spent approximately $4 billion dollars. The 

travel and tourism industry contributed $40 billion to the Texas economy in 2000. It also 

employed nearly half of a million people, and produced $2 billion dollars in state revenue taxes 

(Texas State Senate, 2002). 

 In 2000, combined city and county local hotel occupancy taxes generated approximately 

$3 billion in revenue; this reflects a 9 percent increase from 1999. Dallas ($49 million), Houston 

($41 million), San Antonio ($34 million) and Austin ($29 million) were the top four revenue-
32

generating cities in 2000, while the Central Texas region generated the highest amount of per 

capita municipal hotel tax revenue ($26.35 per capita) (Texas Economic Development, no date). 

F. LOCAL GOVERNMENT 

 

Governmental Structure. The Chief Executive of Texas–the Governor– is elected to a 

four-year term with no term limits. Other elected officials serving in the executive branch 

include lieutenant governor, attorney general, treasurer, comptroller of public accounts, 

commissioner of agriculture, and commissioner of general land office. Thirty-one senators 

(four-year elected terms) and 150 representatives (two-year elected terms) comprise the body of 

the Texas legislature. At the local level, each of Texas’s 254 counties is governed by an elected 

commissioner’s court. Each court consists of a county judge or administrator and four 

commissioners. The local government structure also includes an elected county attorney, 

treasurer, sheriff, and assessor-collector of taxes. 

 Revenues and Taxation. Sales and state income taxes generate 55 percent of Texas’s 

annual tax revenue. In fact, Texas ranks third among the states in personal income taxes (Texas 

Senate Committee, 2002). Texas imposes neither corporate income taxes nor a state property 

tax. Sales, and use tax for the state is approximately 6 percent; however, local taxing 

jurisdictions retain the option of imposing up to an additional 2 percent in sales and use taxes 

(Texas Comptroller of Public Accounts, 2004). 

 In the 2001 fiscal year, Texas state and local taxes generated $54 billion in revenue. Of 

this amount, local property taxes accounted for 23 billion (43%), state sales tax contributed 15 

billion (27%), other sales taxes generated 13 billion (23%), and local sales taxes raised 4 billion 

(7%) (Texas Comptroller of Public Accounts, 2004). Businesses pay an estimated 60 percent of 

all taxes collected in Texas. The state government absorbs approximately half of all tax revenue, 

while local governments and school districts receive the remainder (Texas Senate Committee, 

2002). 

 In 2002 total tax revenues for the state of Texas summed to $26,279,102,493. The 

following revenues contributed to this total: sales tax ($14,516,341,226); motor vehicle 

sales/rental, manufacturing ($2,949,540,192); motor fuels taxes ($2,833,607,460); franchise tax 

($1,935,709,140); insurance occupation ($1,045,710,105); natural gas ($628,496,630); cigarette 

and tobacco taxes (540,038,314); alcoholic beverages ($560,197,124); oil production tax 

($338,661,102); inheritance tax (334,190,915); utility taxes ($311,051,398); hotel and motel tax 

($230,909,206); and other taxes (54,649,681) (Texas Comptroller of Public Accounts, 2002). 

G. SOCIAL CONTEXT 

 

Education. In the 2000-2001 academic school year, 4,059,619 K-12 students (42% 

Caucasian; 41% Hispanic; 14% African-American; 3% Asian/Pacific Islander; and less than 1% 

Native American) were enrolled in the Texas school system. A total of 274,816 teachers served 

these students. Average student to teacher ration was 15:1. Expenditures for the 2000-2001 

school year totaled $13,853,098,768. Per pupil expenditures amounted to $6,638 (Texas 

Education Agency, 2002). Teachers earned, on average, $38,361 during this school year. The 

vast majority of these teachers held at least a Bachelor’s Degree (75%). 

In the 2003-04 school year, the average elementary and secondary school teacher salary 

for the State of Texas was $39,974; the national average was $45,771. The State of Texas 
33

ranked 31st of 51 states (ranking includes the District of Columbia) in terms of teacher salaries 

for this year. Teachers in California earned, on average, the highest salary at $55,693 (U.S. 

Census Bureau, 2005). 

 The State of Texas maintains 142 public and independent institutions of higher education 

including: 70 community colleges (in 50 districts), 31 public universities, four public two-year, 

upper-division universities, four Technical College Systems campuses, three public two-year, 

lower-division Lamar state colleges, 38 independent four-year colleges and universities, nine 

public health-related institutions, one independent medical school, and two independent junior 

colleges. In 2001, approximately 1 million students were enrolled in a Texas public or 

independent institution of higher education. In 2002, out-of-state enrollments accounted for 

28,451 of enrolled students (Texas Education Agency, 2004). 

 Overall K-12 attendance for the 1999-00 school year was 96 percent, while the dropout 

rate for grades 7-12 equaled 1 percent. In the 2000-2001 school year, the drop out rate increased 

to 5 percent, which is just above the national rate of 4.9 percent for this year. In this same school 

year period, the mean SAT score for Texas high school seniors was 990 while the average ACT 

score was 20.3. Fifty-four percent of graduating seniors planned to attend college in the 2001-02 

school year (Texas Education Agency, 2002). 

 Regarding the educational attainment levels of adults, Texas approaches national 

averages in some cases and exceeds others. In 2000, the ratio of high school graduates in Texas 

to the U.S. was 0.94, while it was 0.93 among college students. In previous years, the ratio of 

college graduates to the U.S. was 1.00 or greater. In this sense, Texas is unique in that it exceeds 

national averages for attaining college degrees (Table 6). 

Table 6 

Adult Educational Attainment (age 25+), Texas State: 1950-2000 

Year High School 

Diploma or More 

State BA/BS

or More 

Ratio to Nation: High 

School Diploma or More 

Ration to Nation: 

BA/BS or More 

1950 29.9% 6.0% 0.89 1.00 

1960 39.5% 8.0% 0.96 1.04 

1970 47.4% 10.9% 0.90 1.02 

1980 62.6% 16.9% 0.94 1.04 

1990 72.1% 20.3% 0.96 1.00 

2000 76.8% 23.5% 0.94 0.93 

 Source: U.S. Census Bureau, 2000b. 

 Health and Welfare. Health and welfare indicators for the State of Texas are mixed. In 

2001, there were 411 general and specialty hospitals in the State of Texas providing 2.6 hospital 

beds per 1,000 population. In 2002, 1,096 nursing homes offered a total of 106,577 certified 

facility beds. Total health care employment in this same year equaled 7 percent, which is 

comparable to the national rate (Kaiser Family Foundation, 2003). 
34

 Teen birth and pre-natal care rates in Texas fall below the national average. In 2002, the 

teen birth rate was 64 per 1,000 live births, as compared to 43 per 1,000 live births at the national 

level. However, the teen birth rate in Texas has decreased 13 percent between 1991 and 2001. 

Eighty percent of Texan mothers, regardless of age, began prenatal care in their first trimester 

(88% Caucasian; 77% African-American; 75% Hispanic), as compared to 84 percent at the 

national level (89% Caucasian; 75% African-American; 77% Hispanic) in that same year (Kaiser 

Family Foundation, 2003). 

 There were also more pre-term born in Texas than in other states in 2001. The overall 

percentage of pre-term infants in Texas (13%) exceeded that of the nation as a whole in 2001 

(12%). Of the pre-term infants born in Texas, 12 percent were to Caucasian mothers, 13 percent 

to Hispanic mothers, and 18 percent to African-American mothers (Kaiser Family Foundation, 

2003). However, the percentage of low-birth weight babies born n Texas hospitals in 2001 was 

equal to the national rate of 8 percent (7% Caucasian; 13% African-American; 7% Hispanic). 

Mortality rates for infants per 1,000 live births in that same year (six) is also lower than the 

national rate (seven per 1,000 live births) (Kaiser Family Foundation, 2003). 

 In 2000, 4 percent (20,900) of all children in the state of Texas were in foster care; 4 

percent were also Temporary Assistance for Needy Families (TANF) recipients. In the same 

year, 16 percent (994,339) of Texan children were enrolled in Medicaid, while 34 percent 

(559,493) were Women, Infants, and Children (WIC) recipients. Eight percent of all children in 

the state were confirmed victims of child abuse in Texas in this year; there were 1,126 child 

deaths (Kids Count, 2003). 

 Also in 2000, there were 2,701,500 people enrolled in the Texas State Medicaid program; 

total spending for the medically needy equaled $123 million, or $3,284 per person. This figure is 

below the per enrollee national spending average of $3,762. In 2002, total federal and state 

Medicaid spending reached $13,638,487,484 (Kaiser Family Foundation, 2003). 

Religion. In 2000, 55 percent (11,573,549) of Texas residents claimed a religious 

affiliation: Evangelical Protestant (24%); Mainline Protestant (8%); 4,368,969 Catholic (21%), 

and 2 percent “other.” Forty-five percent (9,278,204) of residents did not claim a religious 

affiliation in this year (American Religion Data Archive, 2002) 

H. ISSUES OF CONCERN 

 

 Given the territorial expanse of the state, its diverse population, and the range of 

industries it supports, it is difficult to narrow the field of concerns facing the state. Nevertheless, 

three issues stand out: environmental management, economic health, and illegal immigration. 

 The air quality in Texas is extremely poor. By Environmental Protection Agency (EPA) 

standards, Texas is the fifth dirtiest state in the country, and 16 of its counties are identified as 

having unacceptable levels of ozone. These counties are located around the cities of Dallas-Fort 

Worth, Houston-Galveston, Beaumont-Port Arthur, and El Paso. After the 1997 air standards 

were established by the EPA, many regions in the state were deemed non-compliant with the 

Clean Air Act. New proposed water pollution standards also have impacted many regions, 

notably the urban centers of the state. The state was recently ordered to ameliorate the situation 

by cleaning up the excessive nitrogen oxides and other pollutants. Continued non-compliance 

will result in the loss of federal highway funds and other penalties. The State has a plan in place 

for reducing emissions. For example, because these emissions stem in part from an increase in 
35

urban area automobile travel, the state legislature recently passed a bill raising vehicle 

registration fees for out-of-state vehicles. 

 A related concern is the extent to which stricter regulations on industry emissions might 

affect businesses within the state. Twenty-five of the top releasers in the state are also the major 

producers of emissions. Many of these are petrochemical industries and other oil and gas related 

industries. Corpus Christi, for example, depends on refining and petrochemicals. In an effort to 

manage this problem, the Texas Natural Resource Conservation Commission, an agency that 

monitors such industries, recently submitted new enforcement rules that potentially eliminate 

compliance history. These new rules concentrate efforts on agencies with a history of noncompliance while affording “cleaner” companies more self-enforcement measures (Mathieu, 

2001). These new regulations are not without objection. Some industry officials, for example, 

argue that maintaining a compliance history is unfair. State environmentalists are currently 

considering this contention. 

 Coastal erosion and degradation is another ongoing state concern, especially during 

hurricane season. Increased public awareness regarding marine-life quality, and pressure from 

the fishing and tourist industries keep this issue in the forefront of civic consciousness. 

 Deregulation of the electricity industry is an additional state concern, particularly in light 

of the Enron Corporation’s collapse. However, conflicted State officials and controversy 

regarding the Texas Public Utility Commission has slowed the deregulation process (Dyer, 2001; 

Wolfson, 2001). 

 Finally, the State is experiencing all of the social ills that typically accompany a rapidly 

growing population (21 million as of 2000), including an inadequate transportation 

infrastructure, a dwindling water supply, lack of access to health care for all populations, rising 

inflation, and substandard living conditions. These ills are exacerbated, in part, by a large illegal 

immigration population that is second in the nation only to California’s. The Migration Policy 

Institute estimates that illegal immigrants living in Texas numbered more than 1.2 million in 

2000. The Immigration and Naturalization Service (INS) estimates that illegal residents account 

for 35 percent of Texas’ 2002 foreign-born population, and 14 percent of the state’s total 

population; the national average was 11 percent for this same year. Texas’ booming (legal and 

illegal) population impacts the environment and quality of life. For example, Kenedy County 

officials claim that illegal immigration burdens law enforcement and social services resources, 

especially Medicaid, healthcare, and education resources. Supporting this contention, poverty 

rates among the 14 Texas-Mexico border counties were 34 percent in 2000, and double the 

statewide poverty rate of 17 percent (Federation for American Immigration Reform, 2002). 

I. TEXAS LABOR MARKET AREA PROFILES 

 The purpose of this project is to understand how structural changes in industry, 

particularly oil and gas related industries, impact local communities and public institutions 

within the Gulf of Mexico Region (GOMR). The task at hand requires that we utilize a variety 

of data sources and methodologies to provide a more complete narrative of the phenomenon in 

question. We also utilize a rather unique definition of local communities: Labor Market Areas. 

Labor Market Areas (LMAs) are defined by patterns of transportation to and from work both 

within and across county boundaries. Therefore, the areas contained within LMAs better 

empirically represent local social systems, communities, and economies (Killian and Tolbert, 
36

1993). This section of the report carefully considers the Labor Market Areas in Corpus Christi, 

Houston, and Beaumont, Texas. 

 At the heart of this analysis are changes in the industries related to offshore oil and gas 

exploration and production, particularly the boom and bust periods of the 1970s and 1980s. In 

the profile that follows, we first present an overview of the significance of the project, followed 

by a theoretical framework with which to examine the interconnection between industry and 

local community structural changes. 

 The analysis itself is divided into three units of time: 1940-1970, 1970-1990, and 1990-

2000. The first unit of time presents a brief industry history of the Mobile LMA from 1940 to 

1970, followed by a minimalist overview of population changes. In the second unit, we examine 

all oil and gas and related industries within the LMA for the years between 1970 and 1990, 

inclusive. We then link industry changes during this period to fluctuations in population 

structure and dynamics, education, and local government finance. The third unit examines the 

period between 1990 and 2000 to assess the fallout of the oil and gas industry during the decade 

immediately following the bust. 

Industry Overview. The oil and natural gas industry experienced a “boom” during the 

1970s (Gramling, 1996; Seydlitz and Laska, 1994). Rising demands for on-shore domestic 

supplies of oil, and political instability surrounding OPEC and the Middle East increased 

offshore oil and natural gas exploration activities in the Gulf of Mexico (Gramling, 1996; 

Gramling and Freudenburg, 1990). The subsequent “boom” is reflected in the LMA 

employment data. For example, in 1970, approximately 71,000 workers were directly employed 

full-time in the oil and natural gas industry in the coastal economies of the Gulf of Mexico. By 

1980, that number had grown to over 145,000, reflecting a net increase of 105 percent––and 

those numbers do not reflect changes in oil and gas multiplier industries such as equipment 

manufacturing, water transportation, wholesale trade, and general services. 

During the early 1980s, however consumption trends began to change and affect 

employment. First, a gradual drop in demand occurred as substitution effects played-out, with 

actors reducing their consumption of oil and gas by-products (e.g., buying more fuel efficient 

cars; see Gramling, 1996). Additionally, the oil and natural gas industries experienced a sharp 

decline in the mid 1980s brought about largely by overproduction among OPEC members trying 

to “starve” weapon shipments into warring Iran and Iraq (Heilbroner and Milberg, 1999). 

Between 1980 and 1990, the total number of workers in the oil and natural gas industries in the 

coastal economies of the Gulf of Mexico declined from over 145,000 to 112,000, a decrease of 

23 percent. The following figure presents the “boom and bust” data as reflected in the price of 

oil (Figure 1). 
37

0

10

20

30

40

50

60

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

0

10

20

30

40

50

60

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

 Figure 1. Crude Oil Prices, U.S. Average (price per barrel in 1998 dollars): 

 1969-1998 (Energy Statistics Sourcebook, 1999). 

 The coastal economies of some oil dependent LMAs in the Gulf of Mexico were more 

severely impacted by the oil bust than others. For example, the Lafayette LA economy lost 

14,000 jobs in the oil and natural gas extraction industries between 1982 and 1988, a 63 percent 

loss. Other industries throughout the greater Lafayette area were affected as well, with total 

employment dropping from 200,000 workers in 1982 to 160,000 workers in 1987.4

 These losses 

translated into an unemployment rate of more than 16 percent in 1988. However, the Lafayette 

area was not the hardest hit by the oil bust; unemployment rates exceeded 20 percent in some 

other coastal communities (Gramling, 1996). 

Sociology of Regional Processes. To understand how industries, public institutions, and 

communities change in response to fluctuations in the oil and gas industries, we draw upon the 

assumptions of human ecology theory. One of these assumptions is that the range and diversity 

of community industry functions are important determinants of community size, complexity and 

organization (see Frisbie and Poston, 1976; Hawley, 1986; Mencken, 1997; Murdock et al., 

1993; Nord and Luloff, 1993; Poston, 1984; Frisbie and Poston, 1978). Communities also can be 

placed along a continuum of industry structures, from less to more diverse. Generalist 

communities (those with a variety of industries) and specialist communities (those with one or 

two main industries) both have advantages and disadvantages for growth and social organization 

at the local level (Poston, 1984). 

Generalist communities are larger in size and more complex in structure. Fluctuations in 

one industry do not reverberate throughout the entire system so long as the other industries upon 

 

4 Source: U.S. Department of Commerce’s Regional Economic Information System of the 

Bureau of Economic Analysis. 
38

which the community depends for employment are independent of those shocks and remain 

relatively stable. As a result, generalist systems tend to be more stable over time. This 

longitudinal stability is important for local public institutions, such as schools and financing of 

local government services, because it allows administrators to plan for incremental changes in 

the supply of revenues and the demand for resources. Generalist systems can also support more 

stable population growth patterns (Frisbie and Poston, 1976, 1978; Micklin and Choldin, 1984; 

Poston, 1984). 

 Specialist communities, on the other hand, are primarily dependent upon one or two 

industries for subsistence. Communities that rely upon natural resource-based industries, such as 

coal, oil/gas, timber, or fishing, are specialist communities (Gramling and Freudenburg, 1990; 

Hawley, 1986; Rural Sociological Society Task Force, 1993). 

A second assumption of human ecology theory is that significant industry contraction 

(and expansion) will alter drastically the social organization of the community (England and 

Albrecht, 1984; Jobes, 1999; Krannich and Grieder, 1984). During industry contraction, jobs are 

lost, and an out-migration of younger population typically results (RSS, 1993). The negative 

effects of these cycles, particularly in rural America, manifest in social disorganization, higher 

crime rates and other social problems (Freudenburg and Jones, 1991; Jobes, 1999). 

Third, the human ecological approach assumes that local communities are ecosystems 

comprised of four basic and interdependent components: population, organization, environment, 

and technology (Hawley, 1986; Poston, 1984; Micklin and Choldin, 1984). This approach 

further assumes that changes in one of these four components will create changes throughout the 

community. For example, changes in the external environment (e.g., oil prices dropping 

significantly) will affect changes in the other components of the community (jobs and 

population) that rely upon the oil and gas industry for employment (Gramling, 1996). 

Additionally, changes in the technology used in the production of sustenance (e.g., 

mechanization of coal extraction) will affect the population and organization of the ecosystem 

(loss of jobs and out-migration), independent of any changes in the external environment. Not 

surprisingly then, economies that were most involved in the exploration and production of oil 

and natural gas in the Gulf of Mexico region were also most affected by changes in the oil and 

gas industry. Those communities that are more concentrated in multiplier industries will also be 

affected, but not as directly. 

In order to establish when, or if, unexpected changes in employment occurred in the 

Texas LMAs, we performed a time-series forecasting analysis. In our analysis, we employ a 

moving average forecasting model to locate the years in which shocks occur in the Corpus 

Christi, Houston, and Beaumont LMAs. The forecasting procedure includes the following. 

First, three-year moving averages (current plus previous two years) of employment levels are 

computed. Second, at each year the expected value (three-year moving average) is subtracted 

from the observed value. Each of these deviations is squared to provide the forecasting error for 

each year. These squared deviations are summed and averaged across all years in the analysis to 

compute a mean squared error (MSE). We establish a “shock” for any given year in which the 

squared deviation for that year is greater than or equal to two times the mean squared error for 

the industry sector in question (Anderson et al., 1990). 
39

1. Corpus Christi, Texas: Labor Market Area

 The Corpus Christi Labor Market Area (LMA) is made up of nine Texas counties: 

Aransas, Brooks, Duval, Jim Wells, Kenedy, Kleberg, Nueces, Refugio, and San Patricio (Map 

3). The year 2000 Census records the total population of these nine counties as 503,493 persons. 

The Corpus Christi LMA is an interesting case study because of its size and location as a port 

city along the Gulf of Mexico. This next section will profile the extent to which this LMA was 

affected by the oil and gas industries’ “boom and bust” pattern of the late 1970s and 1980s. 

 First Unit of Analysis: Corpus Christi LMA Employment, 1940-1970. The following 

figure presents Decennial Census employment data for 1940-2000 (Figure 1). The Corpus 

Christi LMA employed over 57,000 people in 1940. Agriculture employed over 28 percent of 

those workers, while wholesale/retail trade, and services employed more than 50 percent. There 

is an even distribution of employment among the other key industries. Manufacturing, 

construction and transportation/communication each represented between 7 and 9 percent of the 

total labor force. The mining sector employed over 5,000 workers in 1940, or 9.4 percent of the 

labor force. 

 Between 1940 and 1950 total employment grew by 40 percent, with total employment in 

the Corpus Christi LMA approximating 80,000 in 1950. Agriculture lost 3,000 jobs during the 

1940s, but still captured 16 percent of the total labor force in 1950. Mining employment grew by 

20 percent. Construction (107%), manufacturing (99%), and transportation/communication 

(60%) were the fast growing industries in the 1940s. Wholesale/retail trade and services 

employed over 55 percent of the total labor force in 1950. 

 Between 1950 and 1960, total employment in the Corpus Christi LMA grew by 32 

percent, with employment levels exceeding 106,000. In contrast to the growth transportation, 

construction and mining experienced during the 1940, these three key industry sectors accounted 

for less than 1,000 new jobs in the 1950s. The major growth sectors were manufacturing (4,000 

jobs at a growth rate of 56%), and services (over 15,000 jobs with a growth rate of 119%). The 

agricultural sector experienced a 16 percent decline in employment. 

 While the mining sector did not grow during the 1950s, this industry employed almost 

6,500 persons in 1960. This level is twice the number of workers in the Beaumont, Texas LMA; 

a comparably sized LMA in the Gulf of Mexico region. 

 Total employment in the Corpus Christi LMA grew by 13 percent between 1960 and 

1970. In 1970 over 128,000 people were employed throughout the LMA. Services experienced 

the most employment growth (16,000 jobs; 40% growth rate). Mining added 1,000 jobs, 

transportation/communication added 900 jobs, while construction added 2,000 jobs. In 1970 

these three industries represented about 23 percent of the labor force. Employment in agriculture 

declined significantly by 38 percent, or 5,000 jobs, dipping below 10 percent.5

 

5 Natural resource dependency is defined as 10 percent or more employment in agriculture or 

mining (Rural Sociological Task Force (RSS), 1993). 
40

Map 3. Corpus Christi, Texas Labor Market Area.
41

 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Constructi on Manufacturing Trans/Pub. Util. Whole/Retail Trade Services

 Figure 1. Major Industry Employment, Corpus Christi LMA: 1940-2000 

 (U.S. Census Bureau, 2000b). 

Corpus Christi Demographic Changes: 1940-1970. Total employment in the LMA 

grew by 124 percent between 1940 and 1970. Agriculture experienced further decline, while 

mining and manufacturing increased. These changes in employment most likely affected 

population growth. The Corpus Christi LMA population was 196,594 in 1940. By 1970, the 

population was over 389,900. In Nueces County, population growth increased by more than 150 

percent between 1940 and 1970. 

Second Unit of Analysis: Corpus Christi Employment, 1970-1990. The total 

employment rate in the Corpus Christi LMA grew by 40 percent between 1970 and 1980, with 

179,000 workers employed in 1980. The largest growth rates were in mining (54%; 11,000 

workers), construction (52%), manufacturing (56%) and transportation/communication (39%). 

Combined, these four sectors had a net increase of 20,000 jobs between 1970 and 1980. Growth 

was also substantial in services (20,000 additional jobs) and wholesale/retail trade (10,000 

additional jobs) during the 1970s. The growth in mining employment was connected to oil and 

gas industry activity. 

 By 1990, however, manufacturing, mining and construction had experienced significant 

employment losses. The losses were particularly notable in the mining sector, which lost 34 

percent, or 4,000 jobs. Manufacturing lost 15 percent of its total 1980 employment, 

approximately 3,000 jobs. Despite these losses, total employment actually grew in the Corpus 

Christi LMA by 3.5 percent, with a net gain of 5,000 jobs. Services led employment growth in 

the 1980s, gaining 12,000 net jobs for a growth rate of 16 percent. 

 This positive growth sets the Corpus Christi LMA apart from other oil and gas-related 

Gulf Coast LMAs, many of which experienced a net loss of total employment in the 1980s. The 
42

Corpus Christi LMA data show an economy that experienced some declines in oil and gas 

related industries. Moreover, the growth of multiplier industries (particularly services) was 

significantly less during this time period, than in other time periods. In short, these data indicate 

an LMA with a significant concentration of oil and gas activities spread across a number of 

industries, such as mining, construction and manufacturing. We turn now to an analysis of 

annual employment data for the Corpus Christi LMA in order to locate a better understanding of 

what changes occurred between Census years. 

 The following displays annual full- and part-time employment for the Corpus Christi 

LMA (Figure 2). These data show a steady increase in total employment between 1969 and 

1982. These data also show a drop in total employment of about 10 percent between 1982 and 

1986. However, by 1993, total employment returns to the 1982 level. And, since 1991, 

employment has grown at a steady pace. 

0

50,000

100,000

150,000

200,000

250,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Total Empl oyment Three Year Movi ng Avg.

0

50,000

100,000

150,000

200,000

250,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991

0

50,000

100,000

150,000

200,000

250,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Total Empl oyment Three Year Movi ng Avg.

 Figure 2. Total Annual Employment and Three-year Moving Averages, Corpus 

 Christi LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 

 In order to establish when, or if, unexpected changes in employment occurred in the 

Corpus Christi LMA, we performed a time-series forecasting analysis. The results of this effort 

are reported in the following figures (Figures 3-4). Figure 3 shows the actual employment data 

charted with the three-year moving employment level average for each year. In Figure 3 we see 

that in 1978, 1979 and 1981, the observed employment number was significantly greater than 

expected. This indicates a period of greater than expected employment growth. We also see that 

the observed employment is significantly less than expected in 1986. This finding signals a point 

of rapid employment decline, or fewer workers employed than expected. Interestingly, this 

pattern for the Corpus Christi LMA is slightly different than what is observed in other LMAs in 
43

the GOM region. For example, total employment in the Lafourche and Lake Charles LMAs in 

Louisiana drops off significantly in 1983. The same pattern is present in Beaumont, Texas. 

And, unlike other oil and gas LMAs in the GOMR, total employment actually increases in the 

Corpus Christi LMA between 1983 and 1985. The significant drop-off in total employment in 

the Corpus Christi LMA comes in 1985 and 1986. 

 The following figure documents forecasting errors, which occur when the observed 

employment number in a given year substantially exceeds the expected employment number in 

that year (based on a three-year moving average) (Figure 3). 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 3. Forecasting Analysis for Total Annual Employment, Corpus Christi LMA: 

 1971-2000. 

 With the exception of the 1980s, the growth and decline in total employment in the 

Corpus Christi LMA’s fits the “boom” pattern found throughout most other LMAs in the 

GOMR. We turn now to an analysis of annual employment data in order to uncover in which 

industry sectors these “boom and bust” patterns are present in the Corpus Christi LMA. 

 The next data set displays annual employment data for nine general industry categories 

for 1969 and 1999 (Figure 4). Construction, manufacturing, and mining grew most rapidly 

during the late 1970s, growing 50 percent, 30 percent, and 100 percent, respectively. These three 

industries also led the 1980s decline. By 1986, construction, manufacturing, and mining 

employment returned to their 1977 levels. Mining employment did not recover until 1999. 

Transportation in this LMA did not experience a “boom and bust pattern”. 
44

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Agricult Mining Constr. Manf Trans/Comm Whole. Trade Retail Tr. FIRE Services 

 Figure 4. Annual Employment Growth for Major Industry Categories, Corpus 

 Christi LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of 

 Economic Analysis, 2000). 

 These data indicate that three industry sectors led the boom and bust of the late 1970s and 

early 1980s. We perform forecasting analysis on these three sectors to document statistically 

these trends (Figures 5, 6, and 7). These figures underscore the observations noted above. For 

mining, there are greater than expected declines in employment in 1986 and 1987. For 

construction, the downturn appears in 1986. In manufacturing there are declines in 1983 and 

1986. The Corpus Christi LMA experienced employment growth in the 1970s and employment 

decline in the 1980s. However, the forecasting analysis for this LMA indicate fewer “shocks” 

than experienced in other places of (relatively) similar size, particularly the Beaumont (TX), 

Lake Charles (LA), and Lafourche (LA) LMAs. The next step is to determine to what extent 

these changes in major industry employment trends are directly linked to the oil and gas industry. 
45

1971

1972

1973

1974

1975

1976

1977197819791980198119821983198419851986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 5. Forecasting Analysis for Annual Mining Employment, Corpus Christi LMA: 

 1971-2000. 

 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 6. Forecasting Analysis for Annual Construction Employment, Corpus Christi 

 LMA: 1971-2000. 
46

197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Forecasting Error 2 X MSE

 Figure 7. Forecasting Analysis for Annual Manufacturing Employment, Corpus Christi 

 LMA: 1971-2000. 

Detailed Industry Analysis. In this next section, we present analyses of industry sector 

codes for four key industry groups: manufacturing, mining, transportation and wholesale trade 

(Table 1). We chose those categories based on a) relationship to oil and gas activities, b) 

employment levels, and c) availability of data in the years we are studying. The manufacturing 

category includes the sub-categories of fabricated structural metal products, ship and boat 

building and repair, and oil field machinery. Mining includes drilling oil and gas wells, oil and 

gas field exploration services, and oil and gas field service, N.E.C. The transportation category 

focuses exclusively on water. Wholesale trade considers only industrial machinery and 

equipment. 
47

Table 1 

Key Industry Groups and Sectors 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale 

of derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and 

supplies. 

 

Corpus Christi LMA Manufacturing. The Fabricated Structural Metal Products (SIC 

3440) employment data suggest a pattern that is not consistent with the “boom and bust” patterns 

of the oil and gas industry (Figures 8 and 9). Throughout most of the 1970s and 1980s, this 
48

industry employed less than 600 workers throughout the Corpus Christi LMA. The growth in 

this industry began in the 1990s (1993, in particular). 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

19881989

1990

1991

1992

19931994

1995

1996

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

19881989

1990

1991

1992

19931994

1995

1996

 Figure 8. Annual Employment for Fabricated Structural Metal Products, 

 Corpus Christi LMA: 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

1996

Forecasting Error 2 X MSE

 Figure 9. Forecasting Analysis for Fabricated Structural Metal Products, Corpus 

 Christi LMA: 1966-1996. 

 The next figure shows that Oil Field Machinery (SIC 3533) is an industry sector with 

sparse representation (and not enough data to perform a forecasting analysis) (Figure 10). In 
49

1981 and 1982, this industry employed over 500 people. In most other years, however, 

employment levels were below 100. There were significant employment gains and losses in 

manufacturing since 1960. However, the detailed industry data fail to indicate gains and losses 

in key oil and gas related manufacturing enterprises. Between 1982 and 1985, however, there 

was a 15 percent drop in real dollar earnings in this sector in Nueces County, TX, the largest 

county in the Corpus Christi LMA. 

0

100

200

300

400

500

600

700

1964

1965

1966

1967

1968

1969

19701971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

19841985

1986

198719881989

1990

1991

1992

19931994

1995

1996

 Figure 10. Annual Employment for Oil Field Machinery Manufacturing, Corpus 

 Christi LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

 The following figure presents the data for Ship Building and Repairing (SIC 3731) 

(Figure 11). Ship and Boat Building and Repairing (SIC 3730) was a viable industry in this 

LMA in the late 1970s and early 1980s. However, employment in this sector was very low 

compared to other LMAs in the GOM region, peaking between 1979 and 1982 with slightly over 

1,200 workers. However, by 1986, employment levels had fallen below 200 workers. 

Moreover, the employment levels in this LMA pale in comparison to other LMAs in the region. 

For example, over 5,000 people were employed in Ship and Boat Building and Repairing (SIC 

3730) in the Beaumont, Texas LMA in 1982. 
50

0

200

400

600

800

1,000

1,200

1,400

1964

19651966

19671968

1969

19701971

19721973

1974

19751976

19771978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

0

200

400

600

800

1,000

1,200

1,400

1964

19651966

19671968

1969

19701971

19721973

1974

19751976

19771978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 11. Annual Employment for Ship and Boat Building and Repair, Corpus 

 Christi LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

 Corpus Christi LMA Mining. The data for Drilling Oil and Gas Wells (SIC 1381)

depicts strong employment levels during the late 1970s and early 1980s (Figure 12). Between 

1976 and 1986, over 2,000 people were employed in this industry throughout the Corpus Christi 

LMA. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1964

1965

1966

1967

1968

1969

19701971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

19951996

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1964

1965

1966

1967

1968

1969

19701971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

19951996

 Figure 12. Drilling Oil and Gas Wells, Corpus Christi LMA: 1964-1996 (U.S. 

 Census Bureau, 2000a). 
51

 The forecasting analysis for this sector shows that 1982, 1986 and 1987 were key points 

for this industry (Figure 13). Almost 1,000 jobs were added in 1982. However, almost half of 

the jobs were lost in this industry sector (1,600) between 1985 and 1987. By the early 1990s, the 

number of jobs in this industry in the Corpus Christi LMA fell to a 30-year low-point. 

 

19661967

1968196919701971

197219731974197519761977197819791980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 13. Forecasting Analysis for Drilling Oil and Gas Wells, Corpus Christi 

 LMA: 1966-1996. 

 Employment data on Oil and Gas Field Exploration Services (SIC 1382) is presented 

next (Figure 14). Employment in this industry peaked in 1981 with approximately 350 workers. 

By 1984 this number had fallen below 200 workers, and has remained below this number ever 

since. 
52

0

50

100

150

200

250

300

350

400

450

1964

1965

1966

1967

1968

1969

1970

19711972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

19901991

1992

1993

1994

1995

1996

0

50

100

150

200

250

300

350

400

450

1964

1965

1966

1967

1968

1969

1970

19711972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

19901991

1992

1993

1994

1995

1996

 Figure 14. Oil and Gas Field Exploration Services, Corpus Christi LMA: 1964-1996 

 (U.S. Census Bureau, 2000a). 

 The following figures display employment trends for Oil and Gas Field Service N.E.C.

(SIC 1389) (Figures 15-16). These data show a growth and decline pattern from 1975 through 

the early 1990s. Employment peaks in 1982 at almost 4,400 workers. What we do not see in the 

Corpus Christi LMA is a “bust” in employment during the 1980s. While half of all jobs in this 

industry were lost between 1982 and 1992, the decline pattern is much smoother than the 

fluctuations experienced by other oil and gas LMAs in the GOMR (i.e., Lafayette and Lafourche 

in Louisiana). In addition, employment levels remain relatively high for this sector throughout 

the 1990s (almost 2,000 jobs). 
53

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1964

1965

1966

1967

19681969

1970

1971

1972

19731974

1975

1976

1977

19781979

1980

1981

1982

19831984

1985

1986

1987

19881989

1990

1991

1992

19931994

1995

1996

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1964

1965

1966

1967

19681969

1970

1971

1972

19731974

1975

1976

1977

19781979

1980

1981

1982

19831984

1985

1986

1987

19881989

1990

1991

1992

19931994

1995

1996

 Figure 15. Oil and Gas Field Exploration Services (N.E.C.), Corpus Christi LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 

 1966 1967

1968196919701971

197219731974197519761977197819791980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 16. Forecasting Analysis for Oil and Gas Field Services (N.E.C.), Corpus Christi 

 LMA: 1966-1996. 

 
54

Corpus Christi LMA Water Transportation. Next we present data on Water 

Transportation (SIC 4400) employment (Figures 17 and 18). Unfortunately, there is no category 

that directly measures water transportation related to offshore oil and gas activities. 

Furthermore, this is not a large sector in the Corpus Christi LMA. Employment exceeds 1,000 

workers in only eight years. While there is a clear “boom and bust” pattern in the late 1980s and 

early 1990s, it involves only a small number of workers. During the “boom and bust,” the 

industry gained and lost about 700 jobs. Despite being a port and coastal LMA, this is an area 

with relatively little water transportation employment, especially when compared to other 

similarly situated LMAs, like the Lafourche LMA in Louisiana, which employed over 10,000 

workers in this industry in 1982. 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 17. Annual Employment for Water Transportation, Corpus Christi LMA: 1964- 

 1996 (U.S. Census Bureau, 2000a). 
55

19661967

1968196919701971

197219731974197519761977197819791980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Analysis 2 X MSE

 Figure 18. Forecasting Analysis for Water Transportation, Corpus Christi LMA: 

 1966-1996. 

Corpus Christi LMA Wholesale Trade. The Industrial Machinery and Equipment (SIC 

5084) industry category includes the wholesale marketing of oil well machinery. These data are 

available only from 1977 to 1996, which does not provide enough years to perform a forecasting 

analysis. However, the trend line in this Figure shows a sector that experienced growth and 

decline during the late 1970s and early 1980s. The pattern is familiar. Between 1977 and 1982, 

the industry doubled in size to almost 1,800 workers. By 1987, however, the industry returned to 

its 1977 employment level (Figure 19). 
56

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 Figure 19. Annual Employment for Wholesale Trade of Industrial Machinery and 

 Equipment, Corpus Christi LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

 The data presented in the detailed industry analysis show that the Corpus Christi LMA is 

something of an enigma in the GOM region. The Corpus Christi LMA experienced some major 

changes in the 1970s and 1980s. However, only two of the mining sectors (Oil and Gas Field 

Exploration Services SIC 1382, and Oil and Gas Field Service N.E.C. SIC 1389) –the only 

industry sectors with significant connections to oil and gas activities– have an important 

presence in the Corpus Christi LMA. Corpus Christi LMA was not as affected by the “boom and 

bust” patterns in the oil and natural gas industries as were other LMAs in the GOM region (e.g., 

Lafayette, Lafourche, New Orleans, and Lake Charles). The trends for the petroleum sector 

suggest that the Corpus Christi LMA is integrated into the global oil and gas economy primarily 

(but not exclusively) as a “downstream” industry, refining and transforming the extracted 

product. 

 Third Unit of Analysis: Corpus Christi LMA Population, Education, and Local 

Government, 1970-1990. In this section we examine how industry changes affected population, 

education and local government issues between 1970 and 1990 in the Corpus Christi LMA. We 

begin with population. 

Population. The following tables present population data for the Corpus Christi LMA 

(Tables 2-4). Between 1970 and 1980, the population of the Corpus Christi Labor Market Area 

increased by 13 percent, from 389,905 to 441,121. The 13 percent growth rate for the entire 

LMA is greater than the national growth rate of 11 percent for the same time period. Within the 

LMA, the population grew fastest in Aransas County, although only slightly more than in Nueces 

County. Between 1980 and 1990, the population of the Corpus Christi LMA grew by only 6 

percent, a rate that is substantially less than the national growth rate of 10 percent. However, the 

positive growth rate is inconsistent with the negative growth rates experienced in many of the oil 

and gas LMAs in neighboring Louisiana for that time period. 
57

 The data on racial composition indicate that Caucasians were more affected by the 

growth and decline of population in the Corpus Christi LMA during the 1970s and 1980s. 

Between 1970 and 1980, the percent of the African-American population slightly declined from 

3.7 percent to 3.5 percent–a trend consistent with most southern labor markets. During the same 

period the Caucasian population declined from 96 percent to 84 percent. In 1970, Caucasians 

and African-Americans comprised 99.6 of the Corpus Christi LMA population, combined. By 

1980, however, Hispanics accounted for almost 13 percent of the total population. While there 

was some out-migration, the change in composition represents in-migration of other ethnicities. 

Many of these changes can probably be attributed to the industry changes during the decade. 

Table 2 

Total Population, Corpus Christi LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Aransas 3,469 4,252 7,006 8,902 24,260 17,892 22,497

Brooks 6,362 9,195 8,609 8,005 8,428 8,204 7,976 

Duval 20,565 15,643 13,398 11,722 12,517 12,918 13,120 

Jim Wells 20,239 27,991 34,548 33,032 36,798 37,679 39,326 

Kenedy 700 632 884 752 543 460 414 

Kleberg 13,344 21,991 30,052 33,166 33,358 30,274 31,549

Nueces 92,661 165,471 221,573 237,544 268,215 291,145 313,645

Refugio 10,383 10,113 10,975 9,494 9,289 7,976 7,828

San Patricio 28,871 35,842 45,021 47,288 58,013 58,749 67,138

LMA Total 196,594 291,130 372,066 389,905 441,121 465,297 503,493

 Source: U.S. Census Bureau, 2000b. 

Table 3 

Percent of White Population, Corpus Christi LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Aransas 98.0 97.5 95.9 95.9 88.8 85.6 87.4 

Brooks 99.4 99.5 99.8 99.9 87.5 82.4 75.8 

Duval 99.4 99.8 99.9 99.8 93.5 78.9 80.2 

Jim Wells 98.1 98.5 98.8 98.8 86.7 75.5 77.9 

Kenedy 100.0 100.0 100.0 99.0 84.5 84.5 64.5 

Kleberg 95.9 96.3 96.2 96.1 83.7 68.0 71.9 

Nueces 94.1 95.1 95.3 94.9 82.1 75.8 72.0 

Refugio 89.3 88.8 90.6 90.4 83.5 78.3 80.2 

San Patricio 97.3 98.0 98.1 98.4 86.0 76.6 76.7 

LMA % 95.7 96.1 96.2 95.9 84.0 75.9 74.2 

LMA Total 188,181 279,810 357,946 374,091 370,746 353,603 373,547

 Source: U.S. Census Bureau, 2000b. 
58

Table 4 

Percent of Black Population, Corpus Christi LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Aransas 1.9 2.5 4.0 4.0 1.7 1.5 1.4 

Brooks 0.6 0.4 0.1 0.0 0.0 0.1 0.2 

Duval 0.6 0.1 0.0 0.0 0.2 0.0 0.5 

Jim Wells 1.8 1.4 1.1 0.9 0.6 0.6 0.6 

Kenedy 0.0 0.0 0.0 0.0 0.0 0.0 0.7 

Kleberg 4.0 3.7 3.3 3.0 4.0 3.4 3.7 

Nueces 5.8 4.8 4.5 4.7 4.5 4.3 4.2 

Refugio 10.6 11.1 9.3 9.0 8.0 7.6 6.8 

San Patricio 2.6 2.0 1.8 1.4 1.0 1.3 2.8 

LMA % 4.2 3.8 3.7 3.7 3.5 3.3 3.5 

LMA Total 8,386 11,181 13,664 14,426 15,431 15,555 17,537 

 Source: U.S. Census Bureau, 2000b. 

Education. The Census data on adult educational attainment levels show that the Corpus 

Christi LMA lagged behind the State of Texas as a whole (Table 5). In 1970, 55 percent of the 

adults in this LMA had not graduated from high school, compared to 51 percent for the state. By 

1980, the percentage of adults not graduating from high school in Corpus Christi dropped to 45 

percent, compared to a 34 percent drop for the state. The 1980s saw a continuation of this trend. 

Between 1980 and 1990, the percentage of adults without a high school education in this LMA 

dropped from 45 to 35 percent. By 1990, only 15 percent of adults in the LMA held college 

degrees, a rate significantly lower than the national rate of 21 percent. The Corpus Christi LMA 

economy was not as information-intensive (as reflected in a large proportion of college 

graduates) as other LMAs across the nation. 
59

Table 5 

 Adult Educational Attainment (age 25+), Corpus Christi LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High 

School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or 

More 

Total 

 1970 

Aransas 33.7% 21.3% 26.1% 13.5% 5.4% 5,251 

Brooks 54.6% 14.0% 16.8% 7.8% 6.7% 3,953 

Duval 60.0% 15.8% 15.8% 4.2% 4.1% 6,004 

Jim Wells 48.1% 18.4% 19.1% 7.8% 6.5% 16,075 

Kenedy 71.5% 5.4% 13.2% 3.9% 6.0% 334 

Kleberg 35.5% 15.3% 21.3% 12.7% 15.1% 13,318 

Nueces 32.8% 18.3% 26.6% 11.9% 10.3% 115,135 

Refugio 41.7% 23.4% 23.0% 7.4% 4.5% 5,043 

San Patricio 43.8% 17.7% 21.6% 9.2% 7.5% 22,529 

LMA Total 37.3% 18.1% 24.2% 10.9% 9.4% 187,642 

 1980 

Aransas 22.4% 19.6% 31.3% 14.6% 12.0% 8,799 

Brooks 49.7% 9.6% 22.0% 9.8% 8.8% 4,594 

Duval 46.6% 16.8% 22.8% 6.8% 6.9% 6,757 

Jim Wells 39.9% 16.9% 23.6% 10.7% 8.8% 19,263 

Kenedy 59.6% 6.4% 13.2% 4.1% 16.6% 295 

Kleberg 28.6% 12.5% 23.7% 17.0% 18.1% 16,058 

Nueces 25.8% 15.2% 27.3% 17.1% 14.5% 143,878 

Refugio 34.5% 21.9% 21.9% 12.2% 9.4% 5,325 

San Patricio 32.2% 16.2% 26.9% 13.8% 10.8% 30,272 

LMA Total 29.1% 15.5% 26.4% 15.5% 13.3% 235,241 

 1990 

Aransas 14.2% 18.6% 28.6% 24.1% 14.4% 12,105 

Brooks 34.2% 20.2% 21.5% 17.5% 6.6% 4,729 

Duval 33.6% 18.5% 27.5% 14.0% 6.4% 7,475 

Jim Wells 27.3% 17.4% 26.7% 19.2% 9.3% 21,880 

Kenedy 40.5% 16.4% 25.2% 9.9% 7.8% 281 

Kleberg 20.9% 15.8% 20.9% 23.5% 18.9% 16,542 

Nueces 16.5% 14.5% 24.4% 27.5% 17.0% 174,396 

Refugio 20.5% 17.6% 28.3% 22.2% 11.3% 5,067 

San Patricio 22.4% 16.9% 26.4% 23.2% 11.0% 34,297 

LMA Total 19.1% 15.6% 24.9% 25.2% 15.0% 276,772 
60

Table 5 

 Adult Educational Attainment (age 25+), Corpus Christi LMA: 1970-2000 (continued) 

 2000 

Aransas 8.9% 16.3% 29.1% 28.8% 16.7% 15,728 

Brooks 29.6% 20.5% 23.3% 19.7% 6.8% 4,717 

Duval 22.8% 17.5% 29.7% 21.0% 8.9% 8,042 

Jim Wells 17.3% 17.8% 32.3% 21.5% 10.9% 23,525 

Kenedy 26.4% 15.7% 21.8% 15.7% 20.3% 261 

Kleberg 15.5% 16.2% 23.0% 24.8% 20.4% 17,896 

Nueces 12.3% 13.3% 25.0% 30.5% 18.8% 191,848 

Refugio 15.3% 16.5% 32.5% 24.0% 11.5% 5,178 

San Patricio 14.2% 14.4% 29.8% 28.6% 13.0% 39,551 

LMA Total 13.6% 14.4% 26.5% 28.6% 16.8% 306,746 

 Source: U.S. Census Bureau, 2000b. 

Finances. The oil and gas industry “boom and bust” of the 1970s and 1980s had an 

important effect on the financing of local governments in the Corpus Christi LMA. The first 

table shows that total revenues for local governments increased by 63 percent in constant dollars 

between 1972 and 1982 (Table 6). State allocation to local governments increased by 20 percent 

during the same period. In 1972, state allocations accounted for one-third of local government 

revenue in the Corpus Christi LMA. By 1982, state allocation accounted for only 20 percent of 

local government revenue (Table 7). 

Table 6 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Corpus Christi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Aransas $1,006 $1,268 $1,418 $1,848 $1,304 $1,709 

Brooks $1,929 $2,249 $2,668 $2,918 $2,601 $2,029 

Duval $1,936 $2,020 $2,769 $3,716 $2,727 $3,229 

Jim Wells $1,156 $1,609 $1,578 $2,045 $2,042 $1,978 

Kenedy $2,902 $2,827 $3,247 $5,711 $3,372 $6,132 

Kleberg $1,054 $1,683 $1,910 $2,151 $2,235 $2,400 

Nueces $1,344 $2,437 $2,445 $3,141 $2,770 $2,972 

Refugio $1,732 $1,760 $2,663 $3,130 $2,677 $2,980 

San Patricio $1,332 $1,760 $1,819 $2,179 $2,043 $2,088 

LMA Total $1,335 $2,177 $2,233 $2,927 $2,522 $2,680 

Source: U.S. Census Bureau, 2000a. 
61

Table 7 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Corpus Christi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Aransas $438 $313 $352 $280 $262 $374 

Brooks $364 $415 $543 $482 $845 $760 

Duval $530 $192 $804 $888 $1,161 $1,114 

Jim Wells $473 $612 $553 $770 $1,068 $1,030 

Kenedy $286 $114 $58 $62 $54 $43 

Kleberg $323 $422 $461 $648 $849 $905 

Nueces $448 $583 $595 $750 $848 $753 

Refugio $239 $271 $291 $357 $479 $595 

San Patricio $460 $571 $598 $789 $975 $796 

LMA Total $436 $542 $572 $724 $860 $780 

Source: U.S. Census Bureau, 2000a. 

Both total local and state government revenue increased between 1982 and 1987 by 27 

percent in constant dollars (Table 8). At the same time, local governments in the Corpus Christi 

LMA had to incur debt to finance the increased demand for the services that accompanied 

economic growth from the boom of the 1970s and early 1980s. Between 1982 and 1987, local 

governments in the Corpus Christi LMA accrued an average increase of 54 percent in debt. The 

debt load was highest in Nueces County where, in 1987, the total per capita debt exceeded 

$4,600 in 1997 dollars. By 1992, however, these debt levels had receded. Between 1972 and 

1982, local government debt for the entire LMA increased by 4 percent in real dollars. Between 

1972 and 1982, per capita local government debt increased by over 27 percent in Nueces County 

(Table 9). 

Table 8 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Corpus Christi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Aransas $439 $641 $629 $924 $840 $901 

Brooks $1,199 $1,359 $1,413 $1,569 $1,132 $890 

Duval $1,270 $1,551 $1,461 $2,400 $1,378 $1,031 

Jim Wells $518 $696 $642 $723 $762 $603 

Kenedy $2,306 $2,465 $2,428 $4,215 $3,174 $5,924 

Kleberg $444 $713 $724 $852 $842 $856 

Nueces $501 $776 $760 $992 $1,036 $1,086 

Refugio $1,300 $1,626 $1,797 $2,056 $1,412 $1,488 

San Patricio $506 $708 $676 $801 $733 $795 

LMA Total $555 $806 $786 $1,006 $974 $993 

Source: U.S. Census Bureau, 2000a. 
62

Table 9 

Total Debt, Per Capita (in 1997 adjusted dollars), Corpus Christi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Aransas $948 $201 $815 $582 $342 $466 

Brooks $1,550 $727 $690 $1,416 $232 $88 

Duval $4,483 $2,759 $1,137 $399 $176 $371 

Jim Wells $1,681 $1,086 $740 $1,161 $546 $493 

Kenedy $0 $0 $0 $0 $0 $0 

Kleberg $1,057 $1,147 $1,219 $1,726 $1,317 $689 

Nueces $2,044 $1,786 $2,614 $4,191 $3,046 $2,314 

Refugio $275 $336 $292 $221 $113 $266 

San Patricio $1,565 $1,095 $947 $936 $1,181 $669 

LMA Total $1,867 $1,521 $1,946 $2,992 $2,215 $1,648 

Source: U.S. Census Bureau, 2000a. 

In sum, the 1990s were a continued period of transition for the Corpus Christi LMA, 

when employment grew by a modest 9 percent. Many industries experienced net job losses, 

including agriculture, mining, manufacturing, and transportation/public utilities. The 

employment growth was led by the service sector, which added over 40,000 new jobs during the 

decade. 

 The population of the Corpus Christi LMA increased 8 percent from 465,297 to 503,493 

between 1990 and 2000, a rate slightly lower than the national rate of 10 percent. Populations 

increased in all counties within this LMA except for Brooks, Kenedy, and Refugio Counties, 

which experienced negative population growth, indicating continued out-migration. 

 The percentage of adults holding a high school diploma in Corpus Christi LMA reached 

26.5 percent in 2000, thus narrowing previous educational gaps comparative to the state. This 

could be because the “bust” in the oil and gas industry led to an out-migration of people without 

high school diplomas, chasing labor intensive jobs elsewhere. However, the low growth rate for 

college graduates (15% to 17%) indicates that the 40,000 service sector jobs were not high end 

jobs occupied by college graduates. 

 Total local government revenue increased 6 percent between 1992 and 1997. However, 

state allocation to local government decreased by 9 percent in the same time period. The 

continual increase evident in the total local government revenue is reflected in the local 

government debt numbers. Between 1992 and 1997, local government debt for the entire LMA 

decreased by 26 percent in real dollars. Most counties in the LMA experienced a decrease in 

their debt loads. 

2. Houston, Texas: Labor Market Area 

The Houston Labor Market Area (LMA) is made up of 10 Texas counties: Austin, 

Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, San Jacinto, Waller, and 

Washington (Map 4). 
63

Map 4. Houston, Texas Labor Market Area. 
64

According to the U.S. Census Bureau, the year 2000 population of those 10 counties 

approaches 4.5 million persons. The Houston LMA is a major force in offshore oil and gas 

exploration/production. Unlike other LMAs with specialist economies, the economy in the 

Houston LMA is very diverse. This diversity may have helped protect its economy from 

downturns in the oil and gas industry. 

First Unit of Analysis: Houston LMA Employment, 1940-1970. Over 250,000 people 

were employed in the Houston LMA in 1940. During this decade, the wide-ranging economy in 

the Houston LMA included agriculture (13%), manufacturing (20%), trade (22%), and services 

(21%). The mining industry, where oil and gas workers are employed, represented a very small 

portion of the labor force (3%), but a very large number of workers (8,500) (Figure 1). 

Moreover, more workers were employed in the Houston LMA mining sector in 1940 than in the 

Lafayette, Lafourche, Lake Charles, and Beaumont LMAs’ mining sectors combined. 

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Constructi on Manufacturing Trans/Pub. Util. Whole/Retail Trade Services

 Figure 1. Major Industry Employment, Houston LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

 Between 1940 and 1950, total employment in the Houston LMA grew by 47 percent 

(adding over 100,000 workers) to almost 400,000 workers. With the exception of agriculture, 

which suffered a 36 percent decrease in employment, there was growth in each sector: 

construction gained 20,000 workers (+106%), manufacturing gained 35,000 workers, and 

wholesale/retail trade gained 26,000 workers. Mining employment increased by 30 percent 

between 1940 and 1950, from 8,500 workers to over 11,000 workers. However, in 1950, this 

sector represented a very small proportion of the total labor force (2.9%). 

 Total employment in the Houston LMA grew by 36 percent between 1950 and 1960. 

Every industry sector experienced increases in employment, with the exception of agriculture, 

which lost 5,000 jobs. The growth leader was services, adding 60,000 jobs and representing 28 

percent of the labor force. Manufacturing also experienced growth in the 1950s, adding 30,000 
65

more workers. The mining sector experienced 43 percent growth between 1950 and 1960 and, 

by 1960, employed 3 percent of the Houston LMA’s total labor force. The total number of 

workers in the Houston LMA grew by 65 percent during the 1960s. By 1970 almost 850,000 

workers were employed in the Greater Houston LMA. Growth was greatest in services (109%), 

construction (83%), mining (46%) and manufacturing (41%). The 65 percent total employment 

growth rate for the Houston LMA is significantly greater (at least twice) than the growth rate of 

any other LMA in the region during the 1960s. Mining added 7,000 jobs, manufacturing 50,000 

jobs, and construction added 30,000 jobs. 

Houston LMA Demographic Changes 1940-1970. Several important industry structure 

changes occurred in the Houston LMA between 1940 and 1970. First, total employment in the 

LMA grew by 233 percent between 1940 and 1970. Second, agriculture declined in importance 

while mining and manufacturing emerged as dominant industries. Population growth within the 

Houston LMA reflects these employment changes. The Houston LMA had a year 1940 

population of approximately 760,000 people. By 1970, the LMA’s population was over 2.1 

million. In Harris, the LMA’s most populous county, the population increased by 226 percent 

between 1940 and 1970. 

Second Unit of Analysis: Houston LMA Employment, 1970-1990. Total employment 

grew by 76 percent in the Houston LMA between 1970 and 1980. By 1980, there were 1.5 

million workers in the Houston LMA. With the exception of agriculture, every sector grew by 

over 60 percent. The manufacturing sector added almost 100,000 jobs during the 1970s, and 

over 200,000 jobs were added in services. The mining (180%), construction (99%) and 

transportation (88%) sectors led this growth. The Houston LMA employed nearly half of all 

workers (66,000) employed in mining across all of the LMAs in the GOM region (135,000) in 

1980. 

 Employment increased 16 percent in the Houston LMA between 1980 and 1990. This 

trend is rather unique within the oil and gas Gulf of Mexico region. Indeed, many LMAs had net 

employment losses during this period (e.g., New Orleans, Lafourche, and Lake Charles in LA, 

and Beaumont in TX, while others grew at very low rates (e.g., Lafayette, LA and Corpus 

Christi, TX) during a decade of economic expansion. Predictably, however, employment levels 

declined in several key sectors: mining (-10%), construction (-7%), and manufacturing (-12%). 

These three industries mirror the “boom and bust” pattern of the 1970s and 1980s that occurred 

in other LMAs as well. All total, these three sectors accounted for a net loss of 50,000 jobs 

during the 1980s. However, mining employment in the Houston LMA remained at almost 

60,000 workers in 1990. 

 Several trends merit further study. First, the Houston LMA is the largest economy in the 

GOM region, and half of all oil and gas workers employed in the GOM region were employed in 

Houston LMA. Second, both the growth rates in the 1970s and the job losses in the 1980s were 

in broad industry sectors that are connected to the oil and gas industry (construction, 

manufacturing, transportation, and mining). However, the decline in some of the industries, 

particularly during the 1980s, may not have been directly related to the oil and gas industry, 

particularly manufacturing. Further analysis of these sectors with annual data is needed in order 

to locate a better understanding of what changes occurred between Census years. Analysis of 

Decennial Census data indicates that important changes occurred in the Houston LMA between 

1970 and 1980, and again between 1980 and 1990. However, Decennial Census data are not 

always capable of documenting important short-term trends, such as rapid declines or growth 

spurts in employment in a given industry. Establishing an accurate time line for major shifts in 
66

employment in key industries is very important for understanding when changes occurred in 

oil/gas and related industries. 

 In order to understand the benefits and burdens of certain industries to a system, it is also 

important to know the timing of the industry shocks. In our analysis, we employ a moving 

average forecasting model to locate the years that the shocks occur in the Houston LMA. The 

results of this effort are displayed below (Figures 2 and 3). The data in Figure 2 show the actual 

employment data charted with the three-year employment moving average for each year from 

1969-2000, inclusive. Figure 2 shows that employment grew steadily between 1969 and 1982. 

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Employment Three Year Movi ng Average

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Employment Three Year Movi ng Average

 Figure 2. Total Annual Employment and Three-year Moving Averages, Houston 

 LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 

 The forecasting analysis documents forecasting errors, which occur when the observed 

employment number in a given year substantially exceeds the expected employment number in 

that year (as based on a three-year moving average) (Figure 3). This data identify 1978 and 1981 

as two years of very rapid employment growth. Between 1982 and 1986, however, total 

employment declined from 1.7 million to 1.6 million. While the Census data analysis indicates 

that employment grew by 16 percent between 1980 and 1990, these data show a “bust” effect 

between 1982 and 1986. However, the forecasting analysis fails to reveal sharp drop-offs in 

employment during this bust. Since 1987, employment growth has increased steadily, with 

exception of the recession occurring between 1990 and 1992. Between 1987 and 2000, 

employment in the Houston LMA increased from 1.6 million to over 2.3 million. 
67

1971

1972

1973

1974

1975197619771978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992199319941995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 3. Forecasting Analysis for Total Annual Employment, Houston LMA: 

 1971-2000. 

 

 We turn now to an analysis of annual employment data for specific industry sectors in 

order to uncover in which industry sectors these “boom and bust” patterns are present in the 

Houston LMA. Mining, construction, manufacturing and transportation/communication all 

experienced growth and decline patterns during the late 1970s and 1980s. The forecasting 

analyses for those four sectors are presented in the following figures (Figures 4-7). 

 1971 1972 1973 1974 1975 1976

1977197819791980198119821983198419851986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 4. Forecasting Analysis for Annual Mining Employment, Houston LMA: 

 1971- 2000. 
68

1971

1972

1973

1974

1975

1976

1977197819791980198119821983198419851986

1987

19881989199019911992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 5. Forecasting Analysis for Annual Construction Employment, Houston 

 LMA: 1971-2000. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992199319941995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 6. Forecasting Analysis for Annual Manufacturing Employment, Houston LMA: 

 1971-2000. 
69

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 7. Forecasting Analysis for Annual Transportation, Communication, and Public 

 Utilities Employment, Houston LMA: 1971-2000. 

 The analysis for mining shows one period of greater than expected employment growth 

(1980-1982, inclusive). This is followed by a period of unexpected employment declines. In 

1986 and 1987, the industry hit a low employment point, losing almost 30,000 jobs in two years. 

This forecasting pattern is consistent with the “boom and bust” pattern of oil and natural 

activities. The data for construction employment fit a pattern similar to mining. There is greater 

than expected growth in the 1970s (1976, in particular). There is a pattern of unexpected decline 

between 1985 and 1987, during which about 30,000 jobs were lost in this sector. Manufacturing 

is a sector that experienced a sharp increase and decrease in employment during the 1980s. 

Between 1978 and 1981, employment grew by 22 percent, adding 50,000 jobs during a period of 

a national recession. However, between 1981 and 1987, almost 100,000 jobs were lost in this 

sector, with the sharpest drops in employment occurring in 1983 and 1984. Since 1987, 

manufacturing employment has grown in the Houston LMA. By 1999, employment levels were 

at 85 percent of their 1981 levels. 

 Unlike the other three industries, transportation/communication employment trends are 

inconsistent with “boom and bust” patterns of the 1970s and 1980s. Employment levels were 

stable between 1970 and 2000, unlike the employment peaks and valleys that occurred in other 

sectors. The forecasting analysis in Figure 7 underscores the lack of rapid growth and decline 

patterns in the Transportation, Communication and Public Utilities sector. 

Detailed Industry Code Analyses. The annual employment data show a “boom and bust” 

pattern beginning in the late 1970s and extending through the later 1980s. The analysis of 

annual full- and part-time employment data by single-digit industry codes indicate that a number 

of sectors, including mining, construction, and manufacturing experience this “boom and bust.” 

These data show that the patterns uncovered in the Census data analysis (growth in the 1970s, 

decline in the 1980s) are consistent with the “boom and bust” pattern in the oil and natural gas 

industry during this period. Moreover, the annual employment data document a decline during 

the 1980s that is not present in the Census data. However, using single-digit industry sector data 
70

will not allow us to confirm that these trends are oil and gas related. This is particularly 

important for the trends in manufacturing employment, a sector that experienced losses 

nationwide during the 1980s due to globalization. Therefore, we now turn to an analysis of 

detailed industry codes for four main industry groups: mining, manufacturing, transportation, and 

wholesale trade (Table 1)..

 We chose these detailed categories based on a) relationship to oil and 

gas activities, b) employment levels, and c) availability of data in the years we are studying. 

Table 1 

 Key Industry Groups and Sub-Categories 

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale of 

derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and supplies. 
71

Houston LMA Mining. The Drilling Oil and Gas Wells (SIC 1381) data show that the 

Houston LMA is the heart of the oil and gas industry for mining employment (Figures 8 and 9). 

In 1982, employment peaked in this sector at 15,000 workers. Annual employment data for Oil 

and Gas Field Exploration Services (SIC 1382) display levels that are significantly lower than in 

the other mining sectors during the late 1970s and early 1980s (Figures 10 and 11). However, 

these data do show the same trend as is found with Drilling Oil and Gas Wells (SIC 1381). 

Moreover, in terms of the spatial distribution of employment in this sector, the Houston LMA 

captures the vast share of workers. For example in 1981 over 6,000 workers were employed in 

Houston LMA, compared to 900 in Lafourche LMA, 1,600 in Lafayette LMA, 200 in Beaumont 

LMA, and 350 in Corpus Christi LMA. In fact, Houston LMA is the only GOM region LMA 

with very large numbers of Oil and Gas Field Exploration Services (SIC 1382) workers. 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1964

1965

1966

1967

1968

1969

19701971

197219731974197519761977

1978

1979

1980

1981

1982

1983

1984

198519861987198819891990

1991

1992

1993

1994

1995

1996

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1964

1965

1966

1967

1968

1969

19701971

197219731974197519761977

1978

1979

1980

1981

1982

1983

1984

198519861987198819891990

1991

1992

1993

1994

1995

1996

 Figure 8. Drilling Oil and Gas Wells, Houston LMA: 1964-1996 (U.S. Census 

 Bureau, 2000a). 
72

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Forecasting Error 2 X MSE

 Figure 9. Forecasting Analysis for Drilling Oil and Gas Wells, Houston LMA: 

 1966-1996. 

0

2,000

4,000

6,000

8,000

10,000

12,000

1964

1965

1966

1967

1968

1969

19701971

197219731974197519761977

1978

1979

1980

1981

1982

1983

1984

198519861987198819891990

1991

1992

1993

1994

1995

1996

0

2,000

4,000

6,000

8,000

10,000

12,000

1964

1965

1966

1967

1968

1969

19701971

197219731974197519761977

1978

1979

1980

1981

1982

1983

1984

198519861987198819891990

1991

1992

1993

1994

1995

1996

 Figure 10. Oil and Gas Field Exploration Services, Houston LMA: 1964-1996 

 (U.S. Census Bureau, 2000a). 
73

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Forecasting Error 2 X MSE

 Figure 11. Forecasting Analysis for Oil and Gas Field Exploration Services, Houston 

 LMA: 1966-1996. 

 

 The employment data for the Oil and Gas Field Service N.E.C. (SIC 1389) sector suggest 

three important trends (Figures 12 and 13). First, the “boom and bust” pattern is present in this 

sector. Between 1977 and 1982, employment doubled. By 1988, employment returned to pre1977 levels. The forecasting analysis in Figure 14 confirms 1982 and 1988 as key employment 

years. The second important trend is the size of this sector: in 1982, it employed almost 12,000 

workers. However, while the Houston LMA was the spatial home of Oil and Gas Field 

Exploration Services (SIC 1382) and Drilling Oil and Gas Wells (SIC 1381), it was not spatially 

dominant in terms of Oil and Gas Field Service N.E.C. (SIC 1389). 
74

 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1964

1965

1966

1967

1968

1969

19701971197219731974197519761977

1978

1979

1980

1981

1982

1983

1984

198519861987198819891990

1991

1992

1993

1994

1995

1996

 Figure 12. Oil and Gas Field Services, Houston LMA: 1964-1996 (U.S. Census 

 Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976

1977197819791980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 13. Forecasting Analysis for Oil and Gas Field Services, Houston LMA: 

 1966-1996. 
75

The third important trend is that there was significant employment in this industry sector 

beyond the “bust” of the 1980s. We find similar patterns in the Lafourche and Lafayette LMAs 

in Louisiana. There is still significant employment (and activity) in this sector in key Gulf of 

Mexico Region LMAs beyond the “oil and gas” bust of the 1980s. 

Houston LMA Manufacturing. The data on all of the manufacturing sectors show 

significant employment and interesting growth patterns in Houston LMA. The data for the 

Fabricated Structural Metal Products (SIC 3440) employment show a sector that employed over 

14,000 workers at its peak in the early 1980s, the height of the oil and gas boom (Figures 14 and 

15). By 1987, however, employment in this sector declined to less than 8,000 workers. The 

forecasting model indicates that a sharp decline in this sector occurred in 1983 and 1984. In fact, 

the 1983 employment levels were only 70 percent of those reported for 1982. 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1964

1965

1966

1967

1968

1969

19701971197219731974197519761977

1978

1979

1980

1981

1982

1983

1984

198519861987198819891990

1991

1992

1993

1994

1995

1996

Figure 14. Annual Employment for Fabricated Structural Metal Products, Houston 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 
76

19661967

1968196919701971

197219731974197519761977197819791980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 15. Forecasting Analysis for Fabricated Structural Metal Products, Houston 

 LMA: 1966-1996. 

 The following data discusses employment data on Oil Field Machinery (SIC 3533) 

manufacturing (Figures 16-17). Notably, this sector employed over 40,000 workers in the 

Houston LMA in 1982. As with Fabricated Structural Metal Products (SIC 3440), 1983 is the 

key year for sharp declines in employment. Significantly fewer workers were found in that 

sector in 1983 than expected, as based on trends in previous years. Between 1982 and 1987, 

30,000 jobs, or 75 percent of the total labor force, were lost in this sector. Moreover, the vast 

majority of Oil Field Machinery (SIC 3533) were located in the Houston LMA. Sector 

employment in other GOMR LMAs (e.g., Lafayette, Lafourche, and Beaumont) is a fraction of 

the levels found in the Houston LMA. 
77

 

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1966

1967

1968

1969

1970

1971197219731974

197519761977

1978

1979

1980

1981

1982

1983

1984

19851986198719881989

1990

1991

1992

1993

1994

1995

1996

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1966

1967

1968

1969

1970

1971197219731974

197519761977

1978

1979

1980

1981

1982

1983

1984

19851986198719881989

1990

1991

1992

1993

1994

1995

1996

 Figure 16. Annual Employment for Manufacture of Oil Field Machinery, Houston LMA: 

 1966-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983

1984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 17. Forecasting Analysis for Manufacture of Oil Field Machinery, Houston LMA: 

 1966-1996. 
78

The data for Ship and Boat Building and Repairing (SIC 3730) are presented below 

(Figures 18 and 19). This sector is the smallest of the key manufacturing sectors in our study, 

employing less than 5,000 workers at any point in this time-line. Compare this trend to the New 

Orleans LMA, where over 14,000 workers were employed in Ship and Boat Building and 

Repairing (SIC 3730) during the early 1980s; the height of the oil and gas boom. The Houston 

data for Ship and Boat Building and Repairing (SIC 3730) indicate increased employment 

activity in the early 1980s, with over 4,000 workers employed in this industry in 1981. By 1984, 

employment levels had receded to less than 2,000 workers. The employment levels in this sector 

are much smaller than what are found in Oil Field Machinery (SIC 3533) and Fabricated 

Structural Metal Products (SIC 3440). While the New Orleans LMA is the industry leader in the 

GOMR, the Houston LMA Ship and Boat Building and Repairing (SIC 3730) employment levels 

are comparable to levels and patterns found in other GOMR LMAs (e.g., Mobile, AL and 

Beaumont, TX). 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 18. Annual Employment for Ship and Boat Building and Repair, Houston LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 
79

19661967

1968196919701971

197219731974197519761977197819791980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 19. Forecasting Analysis for Ship and Boat Building and Repair, Houston LMA: 

 1966-1996. 

 Of the three key manufacturing sectors related to oil and gas activities that we examined 

in the Houston LMA, Oil Field Machinery (SIC 3533) and Fabricated Structural Metal Products

(SIC 3440) are industry leaders in the GOMR. More workers in these sectors were employed in 

the Houston LMA during the late 1970s and early 1980s than were employed in any other LMA 

in the GOMR. The employment patterns are classically consistent with what we know about the 

industry in this region of the country. 

Houston LMA Water Transportation. The following figures present data on Water 

Transportation (SIC 4400) employment (Figures 20 and 21). Unfortunately, there is no category 

that directly measures water transportation related to offshore oil and gas activities. In the 

annual employment analysis we did not find a “boom and bust” trend in transportation and 

public utilities for the Houston LMA that we have found in other LMAs. Nonetheless, we 

explore this category for the Houston LMA. The data show that employment in this sector grew 

by 35 percent between 1977 and 1981. However, by 1988, employment had declined to pre1977 levels. The forecasting analysis in Figure 21 shows that 1986 is the key year when 

employment began dropping off. Despite being one of the largest port facilities in the world, the 

“boom and bust” of the oil and natural gas industry took its toll on water transportation 

employment. The Water Transportation (SIC 4400) pattern for the Houston LMA is very 

similar to the New Orleans LMA. Both are world ports that employed nearly 20,000 workers at 

the height of the oil and gas boom; both experienced significant declines during the 1980s. 

However, employment in this sector for both LMAs has remained very stable since the volatile 

times of the 1980s. 
80

 

0

5,000

10,000

15,000

20,000

25,000

1964

1965

1966

1967

1968

1969

19701971

1972

1973

1974

1975

1976

1977

1978

1979

1980

19811982

19831984

1985

1986

1987

1988

1989

1990

1991

19921993199419951996

0

5,000

10,000

15,000

20,000

25,000

1964

1965

1966

1967

1968

1969

19701971

1972

1973

1974

1975

1976

1977

1978

1979

1980

19811982

19831984

1985

1986

1987

1988

1989

1990

1991

19921993199419951996

 Figure 20. Annual Employment for Water Transportation, Houston LMA: 1964-1996 

 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

1981198219831984

198519861987198819891990199119921993

199419951996

Forecasting Error 2 X MSE

 Figure 21. Forecasting Analysis for Water Transportation, Houston LMA: 1966- 

 1996. 
81

 Houston LMA Wholesale Trade. The data for Industrial Machinery and Equipment

(SIC 5084) are presented below (Figure 22). This industry category includes the wholesale 

marketing of oil well machinery. These data are available only from 1977 to 1996, which does 

not provide enough years for forecasting analysis. However, the trend line evident in Figure 22 

shows the familiar pattern of growth in the 1970s: an apex in the early 1980s (1981; 16,000 

workers) and decline throughout the 1980s. In 1987, employment in this sector reached a lowpoint of 9,000 workers. The “boom and bust” pattern in these data suggest significant wholesale 

trade of oil well machinery. These data demonstrate, again, the spatial dominance of the 

Houston LMA and the oil and gas industry in the GOMR. Employment in this sector during the 

“boom and bust” pattern of the 1970s and 1980s far exceeds that in all other GOMR LMAs. 

The detailed industry data show the impact of the “boom and bust” trend in the oil and 

gas industry in the Houston LMA and other GOMR economies. In those eight detailed 

categories alone, almost 77,000 jobs were lost between 1982 and 1987 in the Houston LMA. 

The annual employment analyses above suggest that total employment in the Houston LMA–one 

of the largest and most complex economies– stagnated between 1982 and 1988. Also in 

evidence, this analysis locates the Houston LMA as the heart of the oil and natural gas industry 

in the GOMR. Despite the size and complexity of the Houston LMA ecosystem, exploiting a 

natural resource niche for sustenance put the ecosystem at risk of contraction. 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 Figure 22. Annual Employment for Wholesale Trade of Industrial Machinery and 

 Equipment, Houston LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

Second Unit of Analysis: Houston LMA Population, Education and Local 

Government, 1970-1990. In this section we examine how industry changes affected population, 

education and local government issues between 1970 and 1990. We begin with population. 

 
82

Population. The following tables display the population data for the Houston LMA for 

the Decennial Census years 1940 through 2000 (Tables 2-4). Between 1970 and 1980, the 

population of the Houston Labor Market Area increased by 42 percent, from 2.1 million to 3 

million residents. The 42 percent growth rate for the entire LMA is significantly greater for than 

the national growth rate of 11.4 percent for the same time period. Despite having half of all 

workers in key oil and gas related industries in the 1970s and 1980s, the oil and gas bust of the 

1980s did not keep the Houston LMA from steady population growth. Between 1980 and 1990, 

the population in Houston LMA grew by 600,000 people, or 20 percent. Moreover, not a single 

county in the greater Houston LMA experienced negative population growth during the 1980s 

(unlike oil and gas LMAs in Louisiana). 

Table 2 

 Population by County, Houston LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Austin 17,384 14,663 13,777 13,831 17,726 19,832 23,590 

Chambers 7,511 7,871 10,379 12,187 18,538 20,088 26,031

Ft. Bend 32,963 31,056 40,527 52,268 130,846 225,421 354,452

Galveston 81,173 113,066 140,364 169,812 195,940 217,399 250,158

Harris 528,961 806,701 1,243,158 1,741,912 2,409,547 2,818,199 3,400,578

Liberty 24,541 26,729 31,595 33,014 47,088 52,726 70,154

Montgomery 23,055 24,504 26,839 49,479 128,487 182,201 293,768

San Jacinto 9,056 7,172 6,153 6,702 11,434 16,372 22,246

Waller 10,280 11,961 12,071 14,285 19,798 23,390 32,663

Washington 25,387 20,542 19,145 18,842 21,998 26,154 30,373

LMA 760,311 1,064,265 1,544,088 2,112,332 3,001,402 3,601,782 4,504,013

 Source: U.S. Census Bureau, 2000b. 

 The data on racial composition show similar growth patterns for blacks and whites. 

Between 1970 and 1990, white population grew by 44 percent and black population by 55 

percent. In 1990, the black population represented 18 percent of the total population; the white 

population 67 percent. The growing Hispanic/Latino population represents the balance of 

population. Most data indicate that out-migration of black population was the norm for any 

decade in the 1900s. And, this trend is similarly found in most of the oil and gas LMAs in 

Louisiana. However, data from the Houston LMA do not show evidence of extensive black outmigration. In fact, the high growth rates (55%), which are significantly greater than would be 

expected via natural replacement, indicate in-migration into the LMA during that period. 
83

Table 3 

 Percent of White Population, Houston LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Austin 74.7 79.4 78.5 80.5 81.7 66.8 80.2 

Chambers 76.8 80.2 77.9 79.0 82.8 83.6 81.9 

Ft. Bend 72.3 75.7 80.0 83.0 71.7 62.7 56.9 

Galveston 78.1 79.0 78.6 79.8 75.8 75.5 72.7 

Harris 80.3 81.3 80.0 79.2 70.9 64.8 58.7 

Liberty 75.2 77.2 76.5 79.1 84.5 84.0 78.9 

Montgomery 69.0 74.9 77.1 88.0 93.7 91.2 96.4 

San Jacinto 47.6 47.5 47.8 57.7 78.3 82.6 83.6 

Waller 51.4 47.1 46.3 47.2 55.0 55.5 57.8 

Washington 61.9 65.9 68.0 72.5 75.7 76.0 74.7 

LMA % 77.6 79.7 79.1 79.2 70.5 67.2 62.1 

LMA Total 590,498 848,675 1,221,721 1,673,535 2,177,016 2,421,787 2,795,878

 Source: U.S. Census Bureau, 2000a. 

Table 4 

Percent of Black Population, Houston LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Austin 25.3 20.5 21.4 19.4 14.5 13.2 10.6 

Chambers 23.2 19.4 22.0 20.4 14.3 12.1 9.7 

Ft. Bend 27.6 29.3 20.0 16.9 15.6 20.6 19.8 

Galveston 21.8 21.0 21.2 19.6 18.6 17.5 15.4 

Harris 19.6 18.5 19.8 20.1 19.6 19.2 18.4 

Liberty 24.7 22.7 23.4 20.8 15.5 12.9 12.8 

Montgomery 31.0 25.1 22.8 11.7 4.8 4.3 3.5 

San Jacinto 52.3 52.5 52.1 42.1 21.0 15.5 12.6 

Waller 48.6 52.9 53.5 52.5 42.0 37.5 29.2 

Washington 38.0 34.0 31.9 27.4 22.1 20.9 18.6 

LMA % 22.2 20.1 20.6 20.1 18.7 18.3 17.3 

LMA Total 169,322 214,368 318,844 425,915 563,250 661,549 779,940

 Source: U.S. Census Bureau, 2000a. 
84

Houston LMA Education. The data on adult educational attainment show that levels in 

the Houston LMA were higher than those in some of the oil and gas LMAs in the GOM region 

(Table 5). This is not a surprising finding for a major metropolitan area that attracts highly 

educated workers from other regions. In 1990 and 1980, the percentage of adults who had 

graduated from college in Houston LMA was on par with or exceeded the national rate. This is 

the only LMA in the GOM region with college education levels as high as the national rates. 

Within the LMA, college graduates were largely concentrated in Harris County. 

One of the concerns about the oil and gas industry is that the labor intensive nature of this 

employment, coupled with high wages, entices young men to drop out of high school to work in 

this sector. However, the data show that the percentage of adults without a high school diploma 

dropped dramatically during the 1970s (from 48% to 31%). This is the period in which 

employment grew in the oil and gas related industries. Previous models would have predicted an 

influx of less-educated workers during that period. Our analysis fails to show this trend. 

Table 5 

 Adult Educational Attainment (age 25+), Houston LMA: 1970-2000 

County 0-8 Years Some High 

School 

High School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Austin 56.1% 16.8% 15.8% 7.1% 4.1% 8,751

Chambers 37.7% 24.6% 22.2% 9.0% 6.4% 6,506

Ft. Bend 45.3% 20.1% 20.7% 7.5% 6.3% 25,446

Galveston 29.6% 24.4% 25.4% 10.1% 10.4% 90,946

Harris 23.9% 23.4% 24.7% 13.1% 14.6% 892,576

Liberty 40.5% 26.3% 20.7% 7.5% 5.0% 18,079

Montgomery 29.6% 26.1% 26.9% 9.0% 8.3% 26,622

San Jacinto 54.6% 23.1% 13.7% 5.0% 3.5% 3,772

Waller 36.9% 20.2% 19.4% 10.0% 13.4% 6,309

Washington 53.5% 15.7% 14.2% 9.7% 6.8% 11,334

LMA Total 26.1% 23.3% 24.4% 12.5% 13.5% 1,090,341

1980 

Austin 35.1% 19.3% 26.2% 11.7% 7.6% 11,046 

Chambers 22.0% 20.4% 31.8% 15.6% 10.0% 10,189 

Ft. Bend 17.2% 11.1% 26.0% 20.1% 25.5% 71,297

Galveston 17.4% 17.3% 22.2% 17.8% 15.4% 113,085

Harris 14.5% 14.9% 28.7% 18.8% 23.0% 1,342,703

Liberty 25.7% 25.3% 30.1% 11.8% 8.0% 27,027

Montgomery 15.0% 19.2% 33.4% 16.9% 15.4% 71,701

San Jacinto 30.8% 25.2% 29.3% 8.3% 6.3% 6,887

Waller 21.9% 19.9% 27.3% 14.4% 16.3% 9,980

Washington 25.7% 16.0% 22.2% 14.8% 11.3% 13,373

LMA Total 15.5% 15.5% 28.9% 18.4% 21.7% 1,677,288
85

Table 5 

 Adult Educational Attainment (age 25+), Houston LMA: 1970-2000 (continued) 

1990 

Austin 20.6% 16.8% 28.9% 19.9% 13.7% 13,021

Chambers 12.9% 18.9% 29.5% 27.0% 11.5% 12,406

Ft. Bend 9.1% 9.9% 21.9% 28.7% 30.2% 133,052

Galveston 9.6% 14.6% 27.8% 28.6% 19.2% 138,490

Harris 11.3% 13.7% 23.2% 26.2% 25.4% 1,713,593

Liberty 16.3% 21.2% 33.5% 20.9% 7.9% 32,682

Montgomery 8.1% 16.3% 29.5% 26.6% 19.4% 112,214

San Jacinto 17.0% 24.0% 34.2% 17.0% 7.7% 10,853

Waller 13.6% 16.8% 30.7% 22.7% 16.2% 12,735

Washington 20.1% 16.9% 25.8% 21.9% 15.1% 16,523

LMA Total 11.2% 13.9% 24.1% 26.3% 24.4% 2,195,569

2000 

Austin 12.2% 13.2% 32.3% 24.9% 17.3% 15,280

Chambers 8.5% 14.5% 32.4% 32.4% 12.1% 16,348

Ft. Bend 7.2% 8.5% 19.4% 28.0% 36.9% 214,461

Galveston 6.7% 12.3% 26.4% 31.8% 22.7% 161,503

Harris 12.1% 13.3% 21.6% 26.0% 26.9% 2,067,399

Liberty 10.5% 19.9% 36.1% 25.3% 8.0% 44,206

Montgomery 6.3% 12.1% 27.4% 28.9% 25.3% 183,737

San Jacinto 8.8% 18.5% 38.5% 24.5% 9.6% 15,040

Waller 11.0% 15.1% 31.4% 25.7% 16.7% 18,395

Washington 13.5% 14.4% 28.5% 24.5% 19.0% 19,451

LMA Total 7.3% 12.9% 22.7% 26.7% 26.7% 2,755,820

Source: U.S. Census Bureau, 2000b. 

Finances. The Houston LMA was a fast growing region during the 1970s and 1980s. 

When areas grow quickly, they increase the demand on local government services, particularly 

education. This trend is reflected in the local government finances of the Houston LMA (Tables 

6-9). Revenues grew dramatically through 1987. While taxes accounted for over half of that 

revenue, with state transfers accounting for some of the difference, these revenue sources grew 

more slowly. Local governments in the Houston LMA incurred significant debt. Between 1972 

and 1982, local government debt grew by 23 percent in real dollars. However, between 1982 

and 1987, debt grew by 85 percent in real dollars. To meet simultaneously the demands of 

growth on local government finances, and stresses of the drop-off in the oil and gas industry, 

local governments in the Houston LMA engaged in deficit financing. By 1992, debt had fallen 

to $4,000 per person (in 1997 dollars). However, this per capita debt load is 127 percent higher 

(in real dollars) than it was in 1982. The economic transformation of the 1980s has meant 

significantly higher debts for local governments in the Houston LMA. 
86

Table 6 

 Total Revenue, Per Capita*, Houston LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Austin $977 $1,544 $1,625 $2,180 $2,206 $2,159 

Chambers $2,288 $2,483 $2,808 $2,949 $2,706 $3,154 

Fort Bend $1,178 $1,591 $1,509 $2,120 $1,870 $1,999 

Galveston $1,872 $2,158 $3,098 $2,542 $3,058 $3,178 

Harris $1,015 $1,872 $2,158 $3,098 $2,542 $2,975 

Liberty $1,066 $1,398 $1,454 $1,931 $1,874 $1,799 

Montgomery $1,153 $1,517 $1,521 $1,353 $2,234 $2,020 

San Jacinto $1,039 $1,282 $1,233 $2,444 $1,730 $1,394 

Waller $1,268 $1,787 $1,784 $2,756 $2,107 $2,032 

Washington $1,321 $2,371 $2,304 $2,756 $2,552 $3,097 

LMA Total $1,081 $1,886 $2,114 $2,976 $2,495 $2,822 

 * In 1997 adjusted dollars. 

 Source: U.S. Census Bureau, 2000a. 

Table 7 

 Total State Revenue, Per Capita*, Houston LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Austin $396 $395 $436 $2,180 $755 $644 

Chambers $210 $218 $265 $2,949 $379 $469 

Fort Bend $442 $393 $389 $2,120 $561 $501 

Galveston $403 $492 $550 $3,269 $599 $537 

Harris $319 $346 $466 $3,098 $524 $548 

Liberty $403 $454 $495 $1,931 $728 $635 

Montgomery $404 $448 $426 $2,282 $663 $618 

San Jacinto $523 $564 $477 $1,353 $726 $534 

Waller $367 $326 $407 $2,444 $812 $820 

Washington $698 $635 $648 $2,756 $1,120 $1,017 

LMA Total $337 $366 $466 $2,976 $549 $554 

 * In 1997 adjusted dollars. 

 Source: U.S. Census Bureau, 2000a. 

 
87

Table 8 

 Total Tax Revenue, Per Capita*, Houston LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Austin $414 $626 $666 $867 $839 $873 

Chambers $1,494 $1,645 $1,966 $2,030 $1,895 $2,192 

Fort Bend $548 $861 $802 $1,286 $1,022 $1,106 

Galveston $771 $1,134 $1,050 $1,459 $1,541 $1,643 

Harris $512 $973 $979 $1,402 $1,289 $1,329 

Liberty $472 $584 $618 $689 $859 $697 

Montgomery $488 $718 $730 $1,118 $947 $997 

San Jacinto $365 $533 $516 $690 $815 $662 

Waller $684 $853 $809 $1,270 $882 $912 

Washington $285 $429 $367 $603 $624 $945 

LMA Total $536 $960 $955 $1,365 $1,253 $1,295 

 * In 1997 adjusted dollars. 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

 Total Debt, Per Capita*, Houston LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Austin $1,081 $1,295 $1,369 $2,826 $8,881 $1,503 

Chambers $1,067 $1,793 $3,104 $1,971 $1,437 $1,621 

Fort Bend $1,630 $1,841 $2,304 $3,385 $2,318 $2,301 

Galveston $3,322 $2,588 $3,192 $4,727 $4,080 $3,301 

Harris $2,350 $2,613 $2,989 $5,782 $4,519 $5,028 

Liberty $1,393 $1,434 $946 $1,220 $863 $752 

Montgomery $1,670 $1,528 $2,616 $4,260 $3,702 $3,198 

San Jacinto $773 $484 $576 $742 $558 $950 

Waller $1,814 $890 $1,678 $2,305 $1,597 $1,500 

Washington $994 $146 $1,023 $1,921 $1,468 $2,232 

LMA Total $2,334 $2,475 $2,881 $5,327 $4,154 $4,447 

 * In 1997 adjusted dollars. 

 Source: U.S. Census Bureau, 2000a. 
88

Employment grew by 17 percent during the 1990s, adding 300,000 new jobs, primarily in 

the service sector. The employment growth is reflected in the population growth, 25 percent for 

the entire LMA (more than twice the national growth rate). The white population in the year 

2000 comprised 62 percent of the total LMA population, but only 58 percent of the total Harris 

County population. Blacks and African-Americans comprised 17 percent of the Houston LMA 

population in 2000, and 18 percent of the total Harris County population. By 2000, Hispanics 

accounted for 21 percent of the population in Houston LMA – up from 15 percent in 1990. 

However, the growth in services appears to have created a demand for both very lowskilled (likely immigrant labor) and high-skilled workers. While the percentage of adults who 

did not graduate from high school only dropped one point from 25 to 24 percent between 1990 

and 2000, 26 percent of adults obtained a college degree during this same period, surpassing 

national figures for this category. In other GOMR LMAs, the number of high school drop-outs 

declined between 1990 and 2000. For example, high school drop-outs in the Mobile LMA 

decreased from 31 percent in 1990 to 23 percent in 2000. 

 The Houston LMA is the largest port on the Gulf of Mexico, and one of the largest and 

most economically diverse economies in the nation. Despite the fact that over half of all persons 

working in oil- and gas-related fields during the 1970s and 1980s were employed in the Houston 

LMA, the economy, when viewed as an integrated system of counties linked by commuting 

patterns, did not suffer any net population or employment loss during the crash of the 1980s. 

Still, between 1980 and 1990, the Houston LMA lost 50,000 jobs in mining, manufacturing, and 

construction. But, the region remains “the heart” of the oil and gas industry. Although this 

industry employed over 40,000 people in some form of oil and gas exploration and production 

(either in the corporate offices or out in the field) in 2000, this industry captured only 1.4 percent 

of the total labor force, compared to the nearly 5 percent in 1980. 

3. Beaumont, Texas: Labor Market Area 

 The Beaumont Labor Market Area (LMA) is made up of seven counties: Hardin, Jasper, 

Jefferson, Newton, Orange, Polk, and Tyler (Map 5). The population of this LMA was 

approximately 498,000 in 2000. The Beaumont LMA is geographically centered in the Gulf of 

Mexico region between the oil and gas economies of Houston/Galveston, Texas and 

Lafayette/Lafourche Louisiana. 

In this analysis, we examined to what extent industry, population, education and local 

government changes in the Beaumont LMA over time are connected directly (via oil and gas 

changes) or indirectly (via upstream or downstream industries) to the changes in the oil and gas 

industry in the region. Of particular concern are the “boom and bust” periods of the 1970s and 

1980s. 

First Unit of Analysis: Beaumont LMA Employment: 1940-1970. We next examine the 

changes in industry for each decade from 1940 to 2000, inclusive (Figure 1). In 1940 

manufacturing was the leading industry sector, employing over 20,000 workers and one-third of 

the Beaumont LMA workforce. Wholesale/retail trade was the second largest category, 

employing over 13,000 workers. Mining, a key oil and gas related industry, employed less than 

2,000 workers throughout the Beaumont LMA in 1940. Moreover, mining employment 

represented only 3 percent of the total Beaumont LMA workforce for that year.
89

Map 5. Beaumont, Texas Labor Market Area. 

.
90

 Between 1940 and 1950, total employment grew by 43 percent. Employment growth 

rates were high in all sectors, with the exception of agriculture, which saw a 40 percent decline 

in employment between 1940 and 1950. Construction had the highest growth rate (123%), while 

manufacturing continued to employ over one-third of the total workforce. Mining employment 

grew by 40 percent between 1940 and 1950, but still only represented less than 3 percent of the 

total workforce in 1950. 

Total employment grew at 26 percent between 1950 and 1960 in the Beaumont LMA. 

Services led all sectors with 122 percent growth rate, followed by mining employment growth of 

18 percent. In 1960, services and manufacturing shared nearly equal percentages of total 

employment (30%). Despite losses, manufacturing employment grew by 12 percent in the 

Beaumont LMA in the 1950s. Mining, despite relatively strong employment growth rates in the 

1950s, still employed less than 3 percent of the workforce in 1960. Agricultural employment 

continued to decline (39%) between 1950 and 1960. 

 Total employment in the Beaumont LMA grew by 13 percent in the 1960s. “Services” 

(20%) was the employment growth leader, followed by wholesale and retail trade (14%). 

Employment growth slowed somewhat in key industries during the 1970s, particularly 

manufacturing where employment growth was at 9 percent. Furthermore, 1970 is the first year 

in which manufacturing (29%) is not the largest employment category, having been replaced by 

services (31%). Mining continued to employ less than 3 percent of the total Beaumont LMA 

workforce. Agriculture declined by 36 percent during the 1960. 

0

20,000

40,000

60,000

80,000

100,000

120,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Constructi on Manufacturing Trans.Pub. Util. Wholesal e/Retail Services

0

20,000

40,000

60,000

80,000

100,000

120,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Constructi on Manufacturing Trans.Pub. Util. Wholesal e/Retail Services

 Figure 1. Major Industry Employment, Beaumont LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

 
91

Beaumont LMA Demographic Changes: 1940-1970. Total employment in the 

Beaumont LMA grew by 200 percent between 1940 and 1970. Agriculture declined in 

importance, while the significance of services and manufacturing increased. Prior to 1970, the 

Beaumont LMA was much more manufacturing-oriented than most of the other LMAs in the 

Gulf of Mexico Region. 

 Population growth within this LMA was affected by these employment changes. In 

1940, 242,000 people lived in the Beaumont LMA; by 1970, the population was over 400,000. 

The racial composition of the LMA, however, remained static during these decades. 

Second Unit of Analysis: Beaumont LMA Employment: 1970-1990. The oil and gas 

industries experienced both rapid expansion and decline during the 1970s and 1980s. An 

examination of oil and gas prices underscores this claim. Crude oil prices (in constant 1998 

dollars) began to spike in the 1970s, with a significant drop-off in 1986. The Beaumont LMA 

was not one of the major economies in the oil and gas exploration and production industries 

during this period, relative to the Lafayette or Houston LMA (Gramling 1996). However, 

Beaumont is a heavy manufacturing economy. Changes in the oil and gas industries may have 

created changes in those industries in the Beaumont LMA that were related to the oil and gas 

industry. We examine these potential relationships by first assessing the changes in broad 

industry sectors for the Beaumont LMA. 

 Total employment in the Beaumont LMA grew by 33 percent between 1970 and 1980. 

There was positive growth in each industry sector. Growth was strongest in transportation and 

public utilities (57%), construction (48%), services (43%) and wholesale/retail trade (33%). 

Employment grew by 20 percent in mining and 15 percent in manufacturing. Thirty-three 

percent of the workforce was employed in services by 1980, and 25 percent in manufacturing. 

Despite a 20 percent growth rate during the 1970s, mining employment accounted for only 2 

percent of total employment in 1980. 

 The Beaumont LMA experienced economic stagnation during the 1980s, with 

employment declining by nearly 4 percent. Mining lost 45 percent of its employment levels, and 

manufacturing lost 28 percent. Almost 16,000 jobs were lost in these two sectors alone. 

Manufacturing’s share of total employment fell to less than 20 percent in 1990, the lowest level 

for any period between 1940 and 1990. The downturn of the 1980s spread to other industries. 

Construction lost 15 percent of total employment, while transportation and public utilities lost 9 

percent. By 1990 services employed over 40 percent of the workforce. 

 By 1990, the economy in the Beaumont LMA had been transformed from one that was 

manufacturing-oriented to one that was service-based. We next consider whether the decline in 

manufacturing during the 1980s is linked to changes in the oil and gas industries 

 The Census data analysis indicates that important changes occurred in the Beaumont 

LMA between 1970 and 1980 (growth), and again between 1980 and 1990 (decline). However, 

Decennial Census data are not always capable of documenting important short-term trends, such 

as rapid declines or growth spurts in employment in a given industry. Establishing an accurate 

time line for major shifts in employment in key industries is very important for understanding 

when changes occurred in oil/gas and related industries. 

 The following figure displays annual full- and part-time employment data for the 

Beaumont LMA (Figure 2). These data show a steady increase in total employment from 1971 

until 1981, followed by a steady decline in full- and part-time employment between 1982 and 

1986. Since 1986, employment has increased in the Beaumont LMA. By 1991, these 

employment levels had surpassed their previous high mark set in 1981. 
92

0

50,000

100,000

150,000

200,000

250,000

1969

197019711972

1973

197419751976

19771978

197919801981

1982

19831984

19851986

198719881989

1990

199119921993

19941995

199619971998

1999

2000

 Figure 2. Total Annual Employment, Beaumont LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 In order to establish when, or if, unexpected changes in employment occurred in the 

Beaumont LMA, we performed a time-series forecasting analysis. The results of this effort are 

displayed below (Figures 3 and 4). 

 Figure 3 shows the actual employment data charted with the three-year employment 

moving average for each year. Figure 3 illustrates that, in 1974, 1976, and 1977, the observed 

employment number was significantly greater than the expected employment number. This 

indicates a general period in which employment grew at higher than expected rates. In 1983 and 

1986, we see that the observed employment number is significantly less than the expected 

employment number for those respective years. This finding signals a period of general, but not 

rapid employment decline. We also see a growth spurt in 1991, followed by consistent but 

slower growth rates throughout the 1990s. Taken together, we see the beginning and the end of 

a moderate “boom and bust” trend in the total employment data for the Beaumont LMA 

beginning in the mid-1980s and ending approximately in 1988. 

 The following figure documents forecasting errors for every year between 1974, 1976, 

and 1977 and again in 1983, 1986 and 1991 (Figure 4). Forecasting errors occur when the 

observed employment number in a given year substantially exceeds the expected employment 

number in that year (based on a three-year moving average). 
93

0

50,000

100,000

150,000

200,000

250,000

19711972

1973

19741975197619771978

1979

1980198119821983198419851986198719881989

1990

19911992199319941995

1996

1997199819992000

3 Yr. Movi ng Average Total Em ployment

0

50,000

100,000

150,000

200,000

250,000

19711972

1973

19741975197619771978

1979

1980198119821983198419851986198719881989

1990

19911992199319941995

1996

19971998

0

50,000

100,000

150,000

200,000

250,000

19711972

1973

19741975197619771978

1979

1980198119821983198419851986198719881989

1990

19911992199319941995

1996

1997199819992000

3 Yr. Movi ng Average Total Em ployment

 Figure 3. Total Annual Employment and Three-year Moving Averages, Beaumont 

 LMA: 1971-2000 (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 4. Forecasting Analysis for Total Annual Employment, Beaumont LMA: 

 1971-2000. 

 
94

We turn now to an analysis of annual employment data in order to uncover in which 

industry sectors these boom and bust cycles are present in the Beaumont LMA. The annual 

employment data for nine general industry categories for 1969 through 2000 are displayed below 

(Figure 5). Manufacturing experienced the greatest downturn in total employment between 1981 

and 1986. During that time period, full-time and part-time employment in that sector decreased 

by 36 percent, or an estimated 18,000 jobs. No other sector experienced that level of 

employment decline. 

 

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

19691970

1971197219731974197519761977197819791980198119821983

198419851986198719881989

19901991199219931994199519961997199819992000

Agric. Mining Construction

Manufacturing Transportation and public utilities Wholesale trade

Retail trade Finance, insur ance, and real estate Services

 Figure 5. Major Industry Employment Patterns, Beaumont LMA: 1969-2000 (U.S. Dept. 

 of Commerce, Bureau of Economic Analysis, 2000). 

The following figure shows the percentage change in full- and part-time employment in 

each sector for 1981 through 1986, inclusive (Figure 6). Almost all sectors experienced 

employment loss during that period; with manufacturing, an industry which has historically 

employed over one-third of the labor force in this LMA, leading the decline. The data in Figure 

6 show that services and retail trade led the employment growth cycle of the early 1990s. 
95

-0.4

-0.3

-0.2

-0.1

0

0.1

0.2

Agric., forestry, and fishing

Mining

Construction

Manufacturing

Trans. and Pub. Utils. 

Wholesale trade

Retail trade

Finance,

insurance, and real

estate

Services

Total

 Figure 6. Percent Change in Employment, Beaumont LMA: 1981-1986 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 These data tell a story about the impact of the oil and gas industry in the Beaumont LMA. 

The Census data indicate an LMA oriented toward manufacturing employment for most of the 

years prior to and including 1980. The annual employment data show a moderate boom and bust 

trend in total employment from the mid-1970s through the mid-1980s. The annual employment 

data indicate that manufacturing employment drove the employment downturn of the 1981-1986 

period; not mining employment like in oil and gas intensive economies (i.e., Lafayette and 

Houston). These data indicate that further analyses of manufacturing employment trends are 

warranted. 

 We next present the time-series forecasting analysis for manufacturing employment in 

the Beaumont LMA (Figures 7 and 8). Not surprisingly, these data have similarities to the total 

employment patterns for the 1980s. From 1981 through 1986, employment in manufacturing 

declined at a faster than expected rate, based on the forecasting model. Furthermore, Figure 8 

indicates that in 1982, 1983 and 1986 the number of observed manufacturing workers was 

significantly less than the number of expected workers, based on previous years. 
96

0

10,000

20,000

30,000

40,000

50,000

60,000

19711972197319741975197619771978

1979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Employment 3 Yr. Moving Avg. 

0

10,000

20,000

30,000

40,000

50,000

60,000

19711972197319741975197619771978

197919801981198219831984198519861987198819891990199119921993199419951996

0

10,000

20,000

30,000

40,000

50,000

60,000

19711972197319741975197619771978

1979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Employment 3 Yr. Moving Avg. 

 Figure 7. Total Annual Employment and Three-year Moving Averages for 

 Manufacturing, Beaumont LMA: 1971-2000 (U.S. Dept. of Commerce, 

 Bureau of Economic Analysis, 2000). 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

1989199019911992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 8. Forecasting Analysis for Manufacturing Employment, Beaumont LMA: 

 1971-2000. 
97

 Employment in the Beaumont LMA mining industry doubled from approximately 2,200 

to 4,400 workers between 1977 and 1982, but fell from 4,300 to 2,700 workers between 1985 

and 1987 (Figure 9). However, employment in mining is minimal relative to total LMA 

employment. Furthermore, this industry shows very low levels of concentration compared to 

other oil and gas intensive LMAs (i.e., Lafayette, Lafourche, and Houston). Between 1977 and 

1982, employment in transportation and public utilities (which includes transportation related to 

the oil and gas industry) grew by 40 percent to over 14,000 workers. However, by 1988 

employment levels in this category had declined to pre-1977 levels. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

19691970

1971197219731974

1975197619771978197919801981

1982198319841985

1986198719881989199019911992

1993199419951996

1997199819992000

 Figure 9. Total Annual Employment for Mining, Beaumont LMA: 1969-2000 (U.S. 

 Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 

 While the forecasting analysis shows a growth spurt for overall employment beginning in 

the mid-1970s, the data shows only a downturn in the 1980s for manufacturing employment. 

Mining, transportation and public utilities, and construction show a positive growth trend in the 

late 1970s. These three categories accounted for over 11,600 new jobs between 1975 and 1981 

(compared to just 2,700 new manufacturing jobs), or approximately 33 percent of all new jobs 

created during the 1975-81 period. However, just like manufacturing, these sectors experienced 

downturns in the 1980s. 

 The analysis of annual full- and part-time employment data by single-digit industry codes 

indicate that the transportation and public utilities, construction and manufacturing sectors led 

the growth from the mid-1970s through early 1980s. Between 1981 and 1986, however, the 

Beaumont LMA lost an estimated 25,254 full-and part-time jobs. The bust of the 1980s (1981- 

1986) is led primarily by the decline in the manufacturing industry, which lost an estimated 

18,000 full- and part-time jobs during these years. 

Detailed Industry Code Analyses. We now turn to an analysis of detailed industry codes 

for four key industries– manufacturing, mining, transportation and wholesale trade– to further 

identify and examine trends related to industry changes (Table 1). We chose those detailed 
98

categories based on: a) relationship to oil and gas activities, b) employment levels, and c) 

availability of data in the years we are studying. 

 

Table 1 

Key Industry Groups and Sub-Categories 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale 

of derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and 

supplies. 

 
99

 Beaumont LMA Manufacturing. The data for Fabricated Structural Metal Products

(SIC 3440) employment show very low levels of employment in these industries (Figures 10 and 

11). The employment levels peak in 1981 at just over 2,000 workers. Further, the patterns are 

erratic from year-to-year. The forecasting analysis (Figure 10) shows a number of years where 

the observed number of workers was significantly different from the expected number of 

workers in this industry. While every year from 1971 through 1974 shows an important pattern, 

the patterns are off-setting. For example, in 1971, fewer workers are observed in this sector than 

are expected, documenting an employment downturn in this industry for that year. However, 

1972 and 1973 are years in which a greater number of workers are observed than was expected 

based on previous year employment levels. This shows a two-year sharp upturn in the industry. 

However, by 1974, the industry had experienced another significant downturn. By 1986, the 

industry reached a new employment low-point. Since 1986, employment has continued a slow 

but steady increase. 

 The data for Oil Field Machinery (SIC 3533) manufacturing also show a manufacturing 

sector with very modest employment levels (Figures 12 and 13). In 1982 employment exceeded 

1,400 workers throughout the Beaumont LMA, the highest level of employment during the 

period under investigation. The data patterns show consistent employment growth between 1976 

and 1982. After 1982, employment in the industry drops considerably. By 1987, the industry 

has no presence in the Beaumont LMA. 

 The data for Ship and Boat Building and Repairing (SIC 3730) employment suggest 

important patterns (Figures 14 and 15). First, this is an industry with a substantial presence in 

the Beaumont LMA. Over 5,000 workers were employed in this industry sector during the late 

1970s and early 1980s. Second, these data show a clear boom and bust pattern. There is 

significant employment growth in this industry in the 1970s followed by a sharp decline in the 

1980s. The worst year is 1983, when 4,000 fewer workers were employed than in 1982. By the 

1990s, there were fewer than 1,000 workers employed in this sector, or less than 20 percent of 

employment levels in 1981.

 
100

0

500

1,000

1,500

2,000

2,500

1966

1967

1968

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1991

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Employment 3 Yr. Moving Avg. 

0

500

1,000

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2,500

1966

1967

1968

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1967

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1981

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1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Employment 3 Yr. Moving Avg. 

 Figure 10. Total Annual Employment and Three-year Moving Averages for 

 Fabricated Structural Metal Products (manufacturing), Beaumont LMA: 

 1971-2000 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985

19861987198819891990199119921993199419951996

Forecasting Error Twice MSE (Statistical Significance)

 Figure 11. Forecasting Analysis for Fabricated Structural Metal Products 

 (manufacturing), Beaumont LMA: 1966-1996. 
101

0

200

400

600

800

1000

1200

1400

1600

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

Employment 3 Yr. Moving Avg.

 Figure 12. Total Annual Employment and Three-year Moving Averages for Oil 

 Field Machinery (manufacturing), Beaumont LMA: 1971-2000 (U.S. 

 Census Bureau, 2000a). 

 

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Forecasting Errors Twice MSE (Statistical Significance)

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Forecasting Errors Twice MSE (Statistical Significance)

 Figure 13. Forecasting Analysis for Oil Field Machinery (manufacturing), Beaumont 

 LMA: 1966-1996. 
102

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1966

1967

1968

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1978

1979

1980

1981

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1983

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1985

1986

1987

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1989

1990

1991

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1993

1994

1995

1996

Employment 3 Yr. Moving Avg. 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1966

1967

1968

1969

1970

1971

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1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1966

1967

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1970

1971

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1976

1977

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1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Employment 3 Yr. Moving Avg. 

 Figure 14. Total Annual Employment and Three-year Moving Averages for Ship 

 and Boat Building and Repair, Beaumont LMA: 1971-2000 (U.S. Census 

 Bureau, 2000a). 

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

19911992

1993

1994

1995

1996

Forecasting Errors 2 X MSE

 Figure 15. Forecasting Analysis for Ship and Boat Building and Repair, Beaumont 

 LMA: 1966-1996. 
103

The three industries discussed above also have a common thread—all are directly or 

closely associated with oil and gas activities, including offshore activities. However, only Ship 

and Boat Building and Repairing (SIC 3730) shows substantial employment levels during any 

period. The major employment downturns we reported above did not come from exclusively 

from these manufacturing sectors. The employment levels in these sectors are not large enough 

to have caused trends in total employment levels throughout the Beaumont LMA. 

Beaumont LMA Mining. The data for the Drilling Oil and Gas Wells (SIC 1381) and 

Oil and Gas Field Exploration Services (SIC 1382) sectors in the Beaumont LMA show that less 

than 250 are employed in either category in any given year (Figure 16). The trends are not 

particularly significant because changes in these very small industry sectors could not impact the 

LMA-wide trends we document above. 

0

50

100

150

200

250

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Oil and Gas Well Drilling (SIC 1381) Oil and Gas Fi eld Exploration Services (SIC 1382)

 Figure 16. Oil and Gas Well Drilling and Field Exploration Services, Beaumont LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 

Water Transportation. Above we discuss a “boom and bust” pattern in transportation 

and public utilities. We suspect that this trend is directly related to offshore oil and gas 

activities. Unfortunately, there is no category that directly measures the Water Transportation 

(SIC 4400) sector in relation to offshore oil and gas activities. Still, we believe that a direct 

examination of water transportation earnings will bring us closer to the impact of oil and gas 

activities (Figures 17 and 18). 
104

0

1,000

2,000

3,000

4,000

5,000

6,000

1966

1967

1968

1969

1970

1971

1972

1973

1974

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1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

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1996

Employment 3 Yr. Moving Avg. 

0

1,000

2,000

3,000

4,000

5,000

6,000

1966

1967

1968

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1974

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0

1,000

2,000

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1966

1967

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1984

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0

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1980

1981

1982

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1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Employment 3 Yr. Moving Avg. 

 Figure 17. Total Annual Employment and Three-year Moving Averages for Water 

 Transportation, Beaumont LMA: 1966-1996 (U.S. Census Bureau, 

 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974

1975

1976197719781979198019811982

1983198419851986

19871988198919901991199219931994

19951996

Forecasting Errors Twice MSE (Statistical Significance)

 Figure 18. Forecasting Analysis for Water Transportation, Beaumont LMA: 1966- 

 1996. 

 The above data show a pattern somewhat similar to the other analyses. Employment in 

Water Transportation (SIC 4400) peaked in 1978 and 1979, and declined significantly 
105

afterwards. Between 1978 and 1987, over 3,300 jobs in this industry were lost in the Beaumont 

LMA. However, the forecasting analysis of this industry does not show any shocks in the 

employment patterns. The shocks in this industry appear in the 1970s. While the pattern in this 

industry is consistent with the boom and bust of the oil and gas industry, we maintain that the 

two-digit codes for water transportation are not adequate to capture fully the effects of offshore 

activities. Moreover, we know of no SIC code that will allow us to achieve this task. In short, 

the water transportation data are suggestive of an impact in the Beaumont LMA, but no 

confirmation can be drawn from this analysis. 

Beaumont LMA Wholesale Trade. The data for Industrial Machinery and Equipment

(SIC 5084) are presented below (Figure 19). This industry category includes the wholesale 

marketing of oil well machinery. These data are available only from 1977 to 1996, which does 

not provide enough years for forecasting analysis. However, the trend line in Figure 19 shows 

the familiar pattern of growth in the 1970s: an apex in the early 1980s followed by decline. In 

1987, employment in this sector reached an eight-year low of 418 workers; reflecting a 60 

percent decrease since 1982. There has been employment growth in the wholesale marketing of 

industrial machinery and equipment (including oil well machinery) in the 1990s. 

 

0

200

400

600

800

1000

1200

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 Figure 19. Wholesale Trade of Industrial Machinery and Equipment, Beaumont 

 LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

The detailed industry data presented above show the impact of the “boom and bust” cycle in the 

oil and gas industry across a range of industries in the Beaumont LMA. In these eight categories 

alone, over 13,000 jobs were lost between 1981 and 1987 in the Beaumont LMA. These data do 

not include the “ripple” effects of economic shocks throughout the rest of the economy. The 

data presented above show downturns in other industries that were dependent upon the boom 

generated in the oil and gas activities, particularly construction, where a significant number of 

jobs were lost as well. 
106

 Total employment declined in the Beaumont LMA during the early 1980s. Analyses of 

key oil and gas related manufacturing industries in the Beaumont LMA show patterns consistent 

with this trend. However, the overall volume of jobs lost does not appear to be sufficient to 

cause the decline in total employment throughout the LMA, especially when the data show that 

the service and retail trade sectors grew during the 1980s. 

 When the question of a manufacturing-led decline is further explored, we discover 

another trend worth noting. Preliminary analyses show that real earnings in petroleum 

production fell by an estimated 35 percent in the Beaumont LMA between 1981 and 1987. 

Petroleum production is a major industry in this LMA, employing more people than the oil and 

gas related manufacturing industries analyzed above. If our preliminary analysis is correct then 

the bust of the 1980s was led by manufacturing, but it was manufacturing of petroleum products 

that led the decline. This represents a much further “downstream” effect of the oil and gas 

industry in the Beaumont LMA. 

Beaumont LMA Population, Education, and Local Government: 1970-1990. In this 

section we examine how the industry changes affected population, education and local 

government issues between 1970 and 1990 (Tables 2-4). 

Population. Between 1970 and 1980, the population of the Beaumont Labor Market 

Area increased by 12.4 percent, from 409,000 to 460,000. The 12.4 percent growth rate for the 

entire LMA is on par with the national growth rate of 11.4 percent for the same time period. 

Within the LMA, the population grew fastest in Polk County (68%). Between 1980 and 1990, 

the population of the Beaumont LMA declined by 1.5 percent, in comparison to the national 

growth rate of 9.8 percent. The negative growth rates suggest extensive out-migration. 

However, unlike in the Lafayette, Louisiana LMA, where out-migration occurred in the most 

rural parishes, in the Beaumont LMA out-migration occurred in Orange and Jefferson Counties, 

the most urbanized regions of the LMA. 

Table 2 

 Population by County, Beaumont LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Hardin 15,875 19,535 24,629 29,996 40,721 41,320 48,073 

Jasper 17,491 20,049 22,100 24,692 30,781 31,102 35,604 

Jefferson 145,329 195,083 245,659 244,817 250,938 239,397 252,051 

Newton 13,700 10,832 10,372 11,657 13,254 13,569 15,072 

Orange 17,382 40,567 60,357 71,226 83,838 80,509 84,966 

Polk 20,635 16,194 13,861 14,457 24,407 30,687 41,133 

Tyler 11,948 11,292 10,666 12,417 16,223 16,646 20,871 

LMA Total 242,360 313,552 387,644 409,262 460,162 453,230 497,770 

Source: U.S. Census Bureau, 2000b. 

 The data on racial composition indicate that Caucasians were more affected by the 

growth and decline of population in the Beaumont LMA during the 1970s and 1980s. Between 

1970 and 1980, the African-American population grew by 11 percent and the Caucasian 

population by 10 percent. During the same time period the percent of the Caucasian population 

remained stable at 76 percent. Between 1980 and 1990, the Caucasian population declined by 
107

4.5 percent, while the African-American population increased by about 3 percent. These data 

indicate that the decline in the manufacturing industry, particularly petro-chemical production, 

led to an out-migration of Caucasian workers, with less impact on the residential patterns of 

African-American workers. 

Table 3 

 Percent of White Population, Beaumont LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Hardin 83.5 84.2 83.7 86.1 89.5 90.5 90.8 

Jasper 71.1 73.5 78.6 76.9 80.2 79.5 78.2 

Jefferson 76.7 77.3 76.6 74.9 69.3 64.4 57.2 

Newton 59.3 64.7 66.7 71.1 75.5 76.4 75.8 

Orange 88.0 91.5 90.0 90.4 90.5 89.8 88.0 

Polk 68.9 70.3 67.9 72.7 79.8 82.1 79.6 

Tyler 81.5 80.2 78.9 81.9 86.4 87.2 83.8 

LMA % 76.1 78.6 78.5 78.6 77.0 74.7 70.7 

LMA Total 184,550 246,644 304,572 321,709 354,519 338,740 352,233 

Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Black Population, Beaumont LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Hardin 16.5 15.7 16.2 13.7 10.0 8.4 6.9 

Jasper 28.8 26.4 24.8 22.9 19.3 18.9 17.8 

Jefferson 23.2 22.6 23.2 24.8 28.2 31.1 33.7 

Newton 40.6 35.3 33.2 28.8 24.0 22.3 20.7 

Orange 11.8 10.8 9.8 9.2 8.1 8.3 8.4 

Polk 29.4 27.8 29.3 26.4 15.7 12.6 13.1 

Tyler 18.4 19.7 20.9 17.9 12.9 11.9 11.9 

LMA % 23.6 21.5 21.2 21.1 27.3 21.9 22.6 

LMA Total 57,397 67,453 82,373 86,681 96,831 99,474 112,866 

Source: U.S. Census Bureau, 2000b. 

The population growth rates deviate from the national trends during the period of time 

between 1980 and1990. Net migration is a useful concept through which to understand the 

equilibration of employment and population in sub-regions, the adaptation of the ecosystem to 

changes in its external environment. One important component of the explanation of net 

migration is the expansion and contraction of employment opportunities in an area (Micklin and 

Choldin, 1984). Our data show that a decline in the manufacturing sector led to a net outmigration from the Beaumont LMA during the 1980s. This finding is important because without 

a detailed analysis, one might conclude that the population loss of the 1980s was directly related 
108

to the oil and gas bust in the region. Our analysis indicates that Beaumont LMA losses were, to 

some extent, independent of that effect. 

Education. The adult education data is examined next (Table 5). These data show that, 

relative to the State of Texas, adult educational attainment levels in the Beaumont LMA are 

mixed. 

 In 1970, 56 percent of the adults in the Beaumont LMA had not graduated from high 

school, compared to 71 percent for the State of Texas. However, by 1980, the percentage of 

adults who had not graduated from high school in both Texas and the Beaumont LMA had 

declined to 40 percent. In 1990, 28 percent of the adults in the Beaumont LMA had not 

graduated from high school, while the State percentage was 36 percent. These statistics are 

inconsistent with those for the Lafayette LMA in Louisiana, where the actual numbers of nonhigh school graduates actually increased over between 1970 and 1990. Other studies indicate 

that natural resource based industries are labor intensive and the jobs do not often require many 

years of formal education (RSS, 1993). Perhaps the regional differences in industry structure (oil 

and gas vs. manufacturing) explain part or all of this difference. 

Table 5 

 Adult Educational Attainment (age 25+), Beaumont LMA: 1970-2000 

County 0-8 

Years 

Some High 

School 

High School 

Diploma 

Some College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Hardin 33.3% 29.2% 23.7% 7.1% 6.4% 16,119 

Jasper 39.2% 27.4% 21.0% 7.0% 5.2% 13,593 

Jefferson 28.0% 25.0% 26.6% 10.8% 9.4% 130,981 

Newton 41.7% 25.2% 24.6% 3.1% 5.2% 6,278 

Orange 28.6% 27.2% 30.0% 7.4% 6.5% 36,033 

Polk 46.8% 25.0% 17.5% 5.9% 4.6% 8,327 

Tyler 40.7% 27.5% 19.6% 5.5% 6.6% 7,340 

LMA Total 30.8% 25.9% 25.9% 0.9% 8.1% 218,671 

1980 

Hardin 21.0% 26.0% 38.5% 13.4% 0.9% 21,220 

Jasper 26.8% 25.1% 35.8% 11.4% 0.8% 16,688 

Jefferson 21.0% 20.6% 37.2% 19.5% 1.5% 127,830 

Newton 28.2% 28.6% 33.8% 7.6% 0.4% 7,238 

Orange 18.9% 22.2% 41.8% 16.0% 0.9% 42,508 

Polk 30.9% 27.9% 28.9% 11.1% 0.9% 13,922 

Tyler 28.1% 26.6% 33.9% 10.1% 1.0% 9,215 

LMA Total 22.1% 22.5% 37.4% 16.6% 1.3% 238,621 
109

Table 5 

Adult Educational Attainment (age 25+), Beaumont LMA: 1970-2000 (continued) 

1990 

Hardin 9.8% 19.6% 37.0% 23.8% 9.7% 25,629 

Jasper 14.1% 21.4% 38.0% 18.0% 8.3% 19,869 

Jefferson 10.5% 15.0% 32.7% 26.2% 15.5% 152,608 

Newton 17.0% 23.8% 40.3% 13.3% 5.5% 8,399 

Orange 9.1% 18.3% 37.4% 24.8% 10.3% 50,076 

Polk 15.5% 24.8% 32.1% 18.9% 8.6% 20,808 

Tyler 15.1% 22.6% 36.2% 17.5% 8.4% 11,297 

LMA Total 7.3% 17.7% 34.6% 23.9% 12.5% 288,686 

2000 

Hardin 6.8% 14.0% 40.2% 26.2% 13.0% 30,747 

Jasper 9.4% 17.5% 39.5% 22.9% 10.4% 23,420 

Jefferson 7.9% 13.6% 33.1% 29.0% 16.3% 161,261 

Newton 10.3% 20.9% 45.4% 17.7% 5.5% 9,738 

Orange 6.4% 14.5% 38.7% 29.3% 11.0% 54,229 

Polk 9.5% 10.4% 21.0% 23.0% 10.4% 28,453 

Tyler 7.5% 20.5% 41.4% 20.7% 9.6% 14,433 

LMA Total 7.8% 15.2% 36.2% 27.1% 13.5% 322,281

Source: U.S. Census Bureau, 2000b. 

 Finances. The 1970s and 1980s were important periods for local government 

financing in the Beaumont LMA (Tables 6-9). Between 1972 and 1982, total revenues for local 

governments increased by 98 percent in constant dollars. State allocation to local governments 

increased by 16 percent during the same period. In 1972, state allocations accounted for almost 

one-third of local government revenue in the Beaumont LMA. By 1982, state allocations 

accounted for only 25 percent of local government revenue. 

 Revenues peaked in 1987 at over $2,000 per capita. This finding indicates that the 

Beaumont LMA was not affected by the oil and gas boom and bust period like local governments 

in other economies in the region. In Lafayette LMA state revenues dropped, but in the 

Beaumont LMA per capita state revenues to local governments increased by 20 percent in real 

dollars between 1982 and 1987. The data for Beaumont LMA do show, however, that 

considerable debt was undertaken between 1982 and 1987. During this time period, per capita 

local government debt grew by 60 percent in constant dollars. Moreover, this appears to be a 

one-time effect. By 1992, per capita debt levels had returned to 1982 levels (in constant dollars). 

However, the state did provide significantly more financing to local governments in the 

Beaumont LMA during the 1987-1992 time period. These data suggest that local governments 

in the Beaumont LMA borrowed money to finance any short-falls or new projects that were 

required during the fall-off in the manufacturing sector during that period. 
110

Table 6 

Total Revenue, Per Capita (in 1997 adjusted dollars), Beaumont LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hardin $1,095 $1,515 $1,319 $1,650 $1,651 $1,688 

Jasper $1,125 $1,526 $1,699 $1,838 $2,072 $2,903 

Jefferson $1,084 $1,806 $2,203 $2,664 $2,383 $2,417 

Newton $1,054 $1,387 $1,459 $1,650 $1,935 $1,729 

Orange $1,069 $1,600 $1,893 $2,680 $2,616 $2,566 

Polk $1,016 $1,306 $2,178 $3,118 $1,756 $2,471 

Tyler $1,371 $1,283 $1,410 $1,927 $1,974 $1,735 

LMA Total $1,090 $1,673 $1,984 $2,491 $2,262 $2,361 

 Source: U.S. Census Bureau, 2000a. 

Table 7 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Beaumont LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hardin $457 $529 $561 $708 $960 $865 

Jasper $489 $535 $557 $703 $920 $926 

Jefferson $327 $340 $363 $420 $515 $369 

Newton $517 $652 $598 $758 $1,203 $864 

Orange $403 $430 $460 $557 $632 $578 

Polk $461 $436 $428 $532 $668 $493 

Tyler $505 $486 $550 $682 $935 $741 

LMA Total $376 $403 $428 $517 $651 $533 

 Source: U.S. Census Bureau, 2000a. 

Table 8 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Beaumont LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hardin $457 $523 $524 $633 $523 $553 

Jasper $338 $380 $409 $500 $600 $892 

Jefferson $569 $939 $1,045 $1,111 $1,224 $1,364 

Newton $354 $445 $478 $615 $603 $565 

Orange $543 $787 $842 $896 $1,199 $1,010 

Polk $340 $561 $564 $619 $679 $696 

Tyler $549 $556 $546 $588 $620 $546 

LMA Total $527 $795 $859 $922 $1,032 $1,073 

 Source: U.S. Census Bureau, 2000a. 
111

Table 9 

Total Debt, Per Capita (in 1997 adjusted dollars), Beaumont LMA 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hardin $1,222 $1,070 $737 $852 $474 $715 

Jasper $917 $1,089 $665 $704 $468 $814 

Jefferson $2,495 $2,821 $2,163 $4,647 $3,333 $3,190 

Newton $1,056 $534 $1,122 $649 $355 $156 

Orange $1,839 $1,454 $6,287 $9,131 $8,759 $7,539 

Polk $757 $1,202 $11,506 $12,103 $7,750 $5,856 

Tyler $1,303 $1,272 $859 $1,094 $790 $307 

LMA Total $2,041 $2,120 $3,133 $5,063 $3,971 $3,578 

 Source: U.S. Census Bureau, 2000a. 

Following the oil and gas “boom and bust,” population in the Beaumont LMA grew by 

10 percent, on par with the national growth rate for that period. The service industry led that 

growth, with 130 percent growth rate occurring between 1990 and 2000. A significant 

proportion of these jobs appear to be “white collar,” as over 40 percent of the adults in the 

Beaumont LMA in 2000 had at least some formal education beyond high school. On the 

downside, manufacturing continued to decline in the 1990s, but the negative effects of this 

appear to have been limited within the LMA. 

This LMA did not experience problems to the same degree as other economies in the 

Gulf of Mexico region; consequently local governments in Beaumont LMA stabilized their 

finances between 1992 and 1997. Per capita debt declined by 10 percent in real dollars, and 

revenue streams (as measured in real dollars) were more stable. 

Unlike other Gulf of Mexico Region LMAs, the Beaumont LMA did not experience a 

“boom and bust” pattern. This is largely because mining and related industries were only 

marginally concentrated in this LMA. Historically, manufacturing was a key industry in the 

Beaumont LMA. Some of this manufacturing was related to the production of oil and gas related 

materials (e.g., equipment, shipping components). Yet these enterprises comprised a small 

portion of the Beaumont LMA manufacturing sector. The industry declined throughout the 

1980s and into the 1990s. There was a short-term negative effect of this decline in the 1980s, as 

population actually declined in the LMA between 1990 and 1980. However, by 2000, 

population growth rates were on par with national growth trends, and the deleterious effects of 

the loss of manufacturing jobs appear to have stabilized in the 1990s, particularly post-1992. 
113

III. LOUISIANA STATE PROFILE 

A. INTRODUCTION 

 Louisiana sits in the south-central part of the country along the Gulf of Mexico. It is east 

of Texas, west of Mississippi and south of Arkansas (Map 6). At its widest, the state is 

approximately 530 km; at its longest it is 450 km. With 123,677 square miles, Louisiana ranks 

31st in the nation in terms of land area. 

The geography of Louisiana has been described as “rambling” in that it is “neither 

planned nor systematic, but rather a rambling about from one section or feature to another” 

(Kniffen 1968, 5). Generally speaking, the state has five natural regions, the southernmost 

consisting of both fresh and salt water coastal marsh. Moving northward, the elevation gradually 

rises, forming prairie, flatwood and bluffland terraces. Eventually, these terraces give way to 

longleaf and short leaf hill country that roll all the way to the northern border of the state. The 

Red River Valley and the Mississippi Floodplain cut across the state’s marshes, terraces and hills 

with its natural levees, passes and swamps. This Valley and Floodplain sit as two separate arms 

of a great “Y” in the northern part of the state, conjoining in the central part. The Floodplain 

widens south of Baton Rouge, running 50 miles wide in most places but expanding to more than 

twice that when it meets the River Parishes of St. James, St. John, and St. Charles. For the most 

part, Louisiana is a plain with a total relief of 535 feet that is found near Driskill Mountain 

(Kniffen, 1968). As much of the coastal plain lies only slightly above sea level, the state’s 

residents have long had to cope with flooding. 

The Tensas Basin, formed by the Tensas River running south, lies in the northeastern part 

of the state. The Atchafalaya Basin, a wide swamp in the south-central part of the state, runs 

from the Lower Red River to the Gulf and has a number of distributaries and lakes within its 

area. The Atchafalaya River runs through the Basin, dividing into numerous braided streams at 

the southern end of the Basin that rejoin in the Lower Atchafalaya near the Gulf (Kniffen, 1968). 

Numerous bays and points, islands and inlets create the Louisiana shoreline. While the 

state’s coastline extends for approximately 400 miles, its shoreline spans for almost 1,000 miles 

(Kniffen, 1968). Coastal erosion, along with the shifting nature of the Mississippi River, whose 

fringe-like coastline and low lying coastal marshes make for a vulnerable ecological situation, 

explain much of this discrepancy. 

The State is well-endowed with waterways, the most prominent of which is the 

Mississippi River. The Mississippi runs north to south in the eastern part of the state. Other 

major rivers include the Sabine along the western border, the Calcasieu River and its tributaries 

draining the high terraces, Red River cutting across the state in a diagonal northwest-southeast 

fashion, Ouachita River and Bayou Macon in the north, and the Black and Atchafalaya Rivers. 

Sabine Lake, Calcasieu Lake, Grand Lake, White Lake, Lake Salvador, Lake Maurepas and Lake 

Ponchartrain are large bodies of water located in the southern part of the state. Toledo Bend 

Reservoir sits on the west-central border. 

 
114

Map 6. State of Louisiana Depicting Gulf of Mexico Labor Market Areas (and component 

parishes).
115

The State is also well-endowed with wildlife management areas, waterfowl/game refuges, 

national forests, and state parks and recreation areas. Poverty Point National Historic Landmark, 

which is managed by the National Park Service and operates to preserve and interpret an ancient 

Indian site, is located in the state. Louisiana is also home to the six separate units of Kisatchie 

National Forest (under U.S. Forest Service management), which were established as a 

countermove to the first wave of industrial lumbering at the end of the 19th century. Together 

these six units cover 598,000 acres of land. The Jean Lafitte National Historical Park is located 

in southern Louisiana in St. Bernard Parish. Thirteen waterfowl/game refuges are found in the 

northeast and southern part of the state, with the exception of Red Dirt Refuge, which is located 

in the west-central part of the state. The State also is home to 36 wildlife management areas, 54 

state parks and recreation areas and 33 Gulf Ecological Management Sites (GEMS) (Louisiana 

Department of Natural Resources, 2001b). 

The State’s economy over the past several decades has relied heavily upon the oil and gas 

industry. Louisiana contains nearly 10 percent of the U.S. oil reserves and is the nation’s third 

largest producer of petroleum (Louisiana Department of Economic Development, 2002). The 

first deep-water rig and the first deep-water port were established off of the state’s coastal 

boundary. The manufacturing and refining of oil and oil-related products constitute an economic 

mainstay for the state. Exxon, Shell, Citgo, Mobil, Marathon, Conoco, BP and STAR are all 

main producers in the state. The manufacturing of chemicals and allied products are also 

important. 

B. BUILT ENVIRONMENT 

Human Geography and Population Centers. The State capital, Baton Rouge, had a year 

2000 population of 227,818 persons. Other major population centers, with their year 2000 

populations, include: Alexandria (46,342), Bossier City (56,107), Houma (32,393), Lafayette 

(110,257), Lake Charles (71,757), Monroe (53,107), New Orleans (484,647), and Shreveport 

(200,145) (U.S. Census Bureau, 2000b). 

Transportation and Communication. Louisiana’s key transportation arteries include: 

Interstate Highway 20, running east-west in the northern part of the state and connecting Dallas, 

Texas to Shreveport; I-10, running east-west in the southern part of the state and connecting 

Houston, Texas to New Orleans; I-12, running east-west off of Interstate 10 and connecting 

Baton Rouge to Biloxi, Mississippi; and I-49, running south/north and connecting Shreveport to 

Lafayette. National Highways include: 71; 220; 80; 167; 165; 90; 171; 190; 51; and 61. State 

Highways running through the state are: 1; 15; 34; 2; 19; 10; and 25. Nearly two dozen freight 

rail lines run through Louisiana including: Acadiana Railway, Delta Southern, Kansas City 

Southern, Louisiana and Northwest, Louisiana Southern, North Louisiana and Gulf, Southern 

Pacific, and Union Pacific. Amtrak provides the state with passenger rail service. 

Major commercial airports are found in Shreveport, Baton Rouge, Alexandria, Lafayette, 

Lake Charles, Houma, Morgan City, and New Orleans. General aviation airports are located in a 

number of smaller communities. New Orleans International Airport is located 13 miles outside 

the city of New Orleans and offers service from several major airlines. It provides three runways 

(10,880 feet, 7,000 feet, and 3,576 feet), and averages 449 flights per day. Four miles from New 

Orleans, the New Orleans Lakefront Airport also provides three runways (6,879 feet, 3,699 feet, 

and 3,094 feet) (Louisiana Department of Economic Development, 2002). 
116

Louisiana has seven deep water/draft ports: Port of Greater Baton Rouge, Port of New 

Orleans, Port of Lake Charles, Port of South Louisiana (St. John the Baptist Parish), Plaquemines 

Parish Port, Harbor and Terminal District, Point Coupee Parish Port and Industrial Park, and St. 

Bernard Port, Harbor and Terminal District (Port of Greater Baton Rouge, 2002). 

Physical Infrastructure. Louisiana produces nearly all of its own energy from 

hydrocarbons (petroleum and natural gas) mined within the state. Entergy is a major electricity 

supplier in the state; in 2002, it was the operating company for seven of the 10 largest energy 

plants (by generating capacity) in the state (USDOE, EIA, 2004b). There are also numerous 

electric cooperatives. These include: Beauregard Electric Cooperative; Bossier Rural Electric 

Membership Cooperative Cajun Electric Power Cooperative; Claireborne Electric Cooperative; 

Concordia Cooperative; Dixie Electric Membership Cooperative Jefferson Davis Electric 

Cooperative; Northeast Louisiana Power Cooperative; Pointe Coupee Electric Membership 

Cooperative; South Louisiana Electric Cooperative Association; Southwest Louisiana Electric 

Membership Cooperative; St. Martinville Electric Cooperative; Teche Electric Cooperative, and 

Washington/St. Tammany Electric Cooperative. Other companies include Central Louisiana 

Electric Company, Lafayette Utility System, and Louisiana Energy Power Authority. Some 

individual municipalities supply their own electricity (Entergy, 2003). 

Natural gas is supplied by: Atmos Energy LA, Arkansas LA Gas, Bridgeline Gas 

Distribution Co., Collins Pipeline Co., Columbia Gulf, Dixie Gas Co., Entergy New Orleans, 

ENTEX, Evangeline Gas Co., Ferrellgas, Hadson Gas, Herring Gas Co., Iberville Natural Gas, 

Lake St. John, LA Interstate, LA State Gas, LEDCO, Louisiana Gas Service Co., Louisiana 

Nevada Transit, Mid-Louisiana Gas Co., Mississippi Gas Corporation, Monterrey Gas Co., 

Neches Gas Distribution Co., Oceana Heights Gas Co., Primos Production, Reliant Energy, 

Riverway Gas Pipeline, Sabine Pipeline Co., South Coast Gas Co. Inc., Southern Industrial Gas 

Co., Southern Natural Gas Co., Starks Water and Gas, Inc., Terrebonne Parish Consolidated 

Government, Texas Gas and Union Texas Petroleum, Tennessee Gas, Trans LA Gas Co., United 

Gas Pipeline Co., and Wintershall Pipeline Corporation (Entergy, 2003). 

The following entities provide water and sewage services to Louisiana’s parishes: Atlanta 

Water System, Bayou Teche Water Works, Coast Water Works, Corney Water System, Coteau 

Water System, Crystal Water Co., DOWAS, Louisiana Water Co., People’s Water Service 

Incorporated, Simmon’s Water Works, Southside Water Co., and many individual 

municipalities. BellSouth is the state’s primary telephone service provider (Entergy, 2003). 

Interaction of Biophysical and Built Environments. Louisiana is a comparatively 

polluted state. In 2001, it ranked 10th of 50 states and six U.S. provinces (one being the dirtiest). 

Louisiana also ranked in the 85th percentile for total environmental releases (122,488,319 

pounds) and in the 75th percentile for its cancer risk (air and water) (one being the cleanest). 

However, Louisiana’s total cancer risk scores have decreased 81 percent from 1988 to 2001 

(Scorecard, 2003). 

 Of the total 2001 environmental releases in Louisiana, air releases accounted for 

57,647,195 pounds, while water and land totaled 11,908,380 and 15,647,195 pounds, 

respectively. Also in this year, Louisiana’s off-site transfers totaled 88,923,335 pounds, while 

production-related wastes equaled 2,987,730,036 pounds (Scorecard, 2003). 

 In 2001, Louisiana’s top 10 releasing facilities, and their releases with pounds in 

benzene-equivalents, were: Cytec Industries Inc., Fortier Plant (10,986,025); Monsanto Luling 

(10,426,296); Rubicon Inc. (5,784,462); CF Industries Inc. (5,469,102); Angus Chemical Co. 

(5,397,602); International Paper (5,170,024); ExxonMobil Refining and Supply Baton Rouge 
117

Refinery (3,876,334); Louisiana Pigment Co. L.P. (3,635,743); Safety-Kleen (Plaquemine) Inc., 

(3,635,573); and Chemical Waste Management, Lake Charles Facility (3,358,054) (Scorecard, 

2003). 

 The top 10 chemical releases presenting a cancer risk to Louisiana in 2001, and their 

pounds in benzene-equivalents, included: carbon tetrachloride (27,000,000); arsenic (organic or 

inorganic) compounds (3,100,000); hexachlorobenzene (1,400,000); lead compounds 

(1,000,000); ethylene oxide (810,000); benzene (560,000); 1,2-dichloroethane (420,000); 2-

nitropropane (390,000); dichlorobromomethane (260,000); and chromium compounds (240,000) 

(Scorecard, 2003). 

C. HISTORY 

Settlement. The first human settlement in Louisiana dates back to the Lithic culture 

(10,000 B.C. or older), whose sites have been found near streams draining the terraces and on 

Avery Island. This culture possibly inhabited the floodplains and the Gulf Coast and hunted 

large game (Kniffen, 1968). The Poverty Point culture (1700 B.C.) is the second oldest in 

Louisiana. These intensive hunting and fishing people built earthen mounds in the northern part 

of the state and shell middens in the eastern coastal region (Kniffen, 1968). The prehistoric 

groups that followed also built mounds, but their architecture as well as their material cultural 

changed considerably over defined periods of time, and it is these changes that have been used to 

designate the varying groups: Tchefuncte (200 B.C. to A.D. 400), Marksville (A.D. 100 to A.D. 

500), Troyville (A.D. 500 to A.D. 950), Coles Creek (A.D. 950 to A.D. 1300), and the 

Plaquemine, Caddoan, Mississippian cultures (Kniffen, 1968). 

Indians who later settled present-day Louisiana fell under six linguistic groups: Caddoan; 

Tunican; Natchezan; Muckhogean; Atakapan; and Chitimachan (Kniffen, 1968). Several tribes, 

or political units, comprised each linguistic group. They settled along the major streams or on 

high ground at the edge of marshes, as these water bodies were best for fishing. The Caddoan 

people of the Red River in the northern part of the state engaged in agriculture prior to the arrival 

of Europeans, after which they took up hunting. The Tunican group in the far northeast and the 

Muskhogean in the southeast north of Lake Pontchartrain were agriculturalists. The Atakapan 

(“man-eater”) in the southwestern part of the state were so named by the Choctaw because they 

allegedly engaged in cannibalism after warfare (Swanton, 1911). These hunting and fishing 

people settled primarily along the Vermilion, the Mermentau, and the Calcasieu Rivers in 

southern Louisiana, but their territory extended relatively far north (Swanton, 1911). 

The first Europeans to come to Louisiana were Spanish explorers sailing the northern 

coast of the Gulf of Mexico from Florida to Vera Cruz. The Pineda (1519), Narváez and de 

Vaca (1528), and Moscoso (1542) expeditions all traveled the Louisiana coastline. Following 

those initial voyages, Spanish interest in the territory waned until the late 17th and early 18th

centuries when missionary work began in the region. By that time, a number of French groups 

had settled along the lower Mississippi. 

French explorers, led by La Salle, followed Spanish interests. La Salle descended, 

opening up fur trade to the area. In 1682, La Salle reached the Gulf and promptly claimed all the 

land drained by the Mississippi River, and then some. Naming the claim Louisiane after King 

Louis XIV of France, La Salle intended to establish a settlement. In 1684, his campaign for 

settlement missed the mouth of the Mississippi and landed in Texas (Kniffen, 1968). 
118

Sieur de Iberville followed La Salle in 1699, sailing up the Mississippi. During that 

expedition, he encountered a British ship in present-day Plaquemine Parish. Iberville 

pronounced the territory in the name of France and, after a brief skirmish, the English ship turned 

around. This event marked the founding of Louisiana. Other French expeditions of note 

include: Tonti (1689); Iberville and Bienville (1700); St. Denis (1714-1716); and La Harpe 

(1719) (Goins and Caldwell, 1995). 

 Between 1699 and 1792, Louisiana was under French rule. Nevertheless, in this time, 

exchanges in portions of the state were made through a series of treaties, to both the British and 

Spanish governments. Settlements established during that time consisted largely of rice, sugar, 

and indigo farms, and outposts. Acadian exiles from France and Canada were instrumental in 

populating the southern part of the state and in cultivating the land (Goins and Caldwell, 1995). 

 The Louisiana Purchase transferred ownership of Louisiana to the United States in 1803. 

The Territory of Orleans was then divided into 12 parishes (divisions of land were based on 

former ecclesiastical units): Acadia, Atakapas, Concordia, German Coast, Iberville, Lafourche, 

Natchitochees, Opelousas, Orleans, Ouachitta, Pointe-Coupée, and Rapides. These expansive 

parishes encompassed all of what is today Louisiana. Between 1807 and 1812, seven more 

parishes were established: Feliciana, East Baton Rouge, St. Helena, St. Tammany, Catahoula, 

Warren, and St. Mary. In 1812, Louisiana entered the Union with 26 parishes; by 1861 there 

were 48 parishes in the state (Goins and Caldwell, 1995). 

Industrialization. The State’s antebellum economy was comprised mostly of plantationbased agriculture and, within the New Orleans region, trade and transportation. The dominance 

of the plantation economy shaped not only the landscape, which made great use of the French 

arpent system, but also the socio-political system. Merchants and planters held the majority of 

power in society through the holding of land, slaves and/or commerce. This group also ran the 

politics of the state (Goins and Caldwell, 1995). 

 Louisiana’s alluvial-based soils and plentiful rainfall has supported a wide variety of 

crops throughout its agricultural history. In the 19th century, plantation economy made Louisiana 

a leading contributor to the nation’s total agriculture product. Since the 1950s, however, the 

number of farms has declined from roughly 150,000 to only 27,350 in 1995 (Goins and 

Caldwell, 1995). 

 Because of the strength of agriculture within the state economy, manufacturing did not 

emerge until the post-Civil War era. At that time manufacturing interests included lumber, flour, 

cotton, and iron mills, brick and tile kilns, distilleries, and sugar refineries (Goins and Caldwell, 

1995). 

 The Mississippi River, along with its numerous distributaries and other water courses, 

provided the main means of transportation for the state. Between the Louisiana Purchase in 1803 

and the Civil War in 1861, water transportation evolved from the raft, to the flatboat and 

keelboat, to the steamboat. According to Goins and Caldwell, the state’s waterways greatly 

facilitated trade and commerce, particularly in New Orleans which “hummed with the 

transshipment of both imports and exports” (1995, 37). 

Following the state vote to secede from the Union in 1861, New Orleans quickly fell 

under the control of Union troops. In 1863, the war was concentrated along the lower 

Mississippi and the Bayou Teche-Atchafalaya Basin. By the end of 1863, with a lack of men 

and supplies to fight at sustained levels, the Union Navy cut Louisiana off from the rest of the 

Confederacy. Nevertheless, one last skirmish––the Red River campaign––was fought on 

Louisiana soil in the spring of 1864. Throughout the war period, 56,000 men fought in the 
119

Confederacy Army and several thousand free blacks and slaves fought with Union forces (Goins 

and Caldwell, 1995). 

 During the Reconstruction and industrialization era, a number of new parishes were 

formed in the state: Richland (1868), Iberia (1868), Grant (1869), Tangipahoa (1869), Cameron 

(1870), Webster (1871), Red River (1871), Vernon (1871), Lincoln (1873), Carroll (1877), La 

Salle (1908), Evangeline (1910), Allen (1912), Beauregard (1912), and Jefferson Davis (1912) 

(Goins and Caldwell, 1995). 

 The railroad was slow in coming to Louisiana. There were no major railroads in the state 

until the 1850s when The New Orleans, Jackson, and Great Northern; the New Orleans, 

Opelousas, and Great Western Railroad; and the Vicksburg, Shreveport, and Texas Railroad

arrived. During the Civil War, the railroads deteriorated from neglect or were sabotaged by 

Union and Confederate troops. In 1880, the state had short tracks (652 total rail miles) of 15 

lines. The Louisiana Western, conjoined with the Morgan’s Louisiana and Texas, and 

consequently had the longest track line, running from Algiers to Morgan City, Vermilionville, 

Lake Charles, and into Texas. The Chicago, St. Louisa and New Orleans ran from New Orleans 

north through Hammond and into Mississippi. The Vicksburg, Shreveport and Pacific ran a 

short distance from Vicksburg to Monroe (Goins and Caldwell, 1995). 

 After 1880, railroad construction boomed in Louisiana, and the population grew ninefold 

to 5,728 by 1915 (Goins and Caldwell, 1995). Population centers competed for rail lines, as 

their economic success depended on them. Indeed, the railroad ushered in a wave of 

industrialization in the form of clear-cut forestry. Across the state, but particularly in the west, 

loggers moved into areas of virgin pine growth, clearing the ground and establishing lumber 

mills. After complete devastation to the land in some areas and a general waning of forest 

resources by 1920, the large companies who had previously moved into the area migrated to the 

Pacific Northwest. The state then committed to a program of intense reforestation. The 

Kisatchie National Forest is a result of this program. 

 Agriculture and the manufacturing of agricultural products continued to be important to 

the state, despite a loss of the plantation landscape. With the introduction and modernization of 

sugar mills, the state became the number one producer of sugar in the nation––a position it 

maintained until 1959 when it fell to second. In 2000, Louisiana was the second largest producer 

of sugar in the United States, with 435,000 acres of sugar cane fields producing 1.44 million tons 

(Sugar Processing Research Institute, 2003). 

 Rice production has also been important to the state, due to the evolution of the rice mill. 

In 1890, Louisiana was the nation’s largest grower of rice (producing 756,454 tons), and this 

remained the case through 1950 (10,620,514 tons). In 1982, Louisiana was the fourth largest 

producer of rice in the nation, producing 23.4 tons that year (Goins and Caldwell, 1995). In 

2000, total rice production summed to 24.4 tons, with Acadia, Jefferson Davis, Vermilion, 

Evangeline, and Morehouse as the top rice producing parishes in the state (Louisiana 

Agricultural Statistics Service, 2001). 

 At the same time, Louisiana’s expanding production was accompanied by a reduction in 

the number of farms. Indeed, the “functional landscape” of the state has transformed drastically 

since Reconstruction, growing all the while more industrial. Nevertheless, Louisiana retained its 

own form of economy based on family ownership until that very latter part of the 20th century, 

when it adopted the California model of large-scale agriculture. Now, the “CALA” model, an 

amalgam of California and Louisiana systems, is used not only in Louisiana, but in other states 

as well (Rehder, 1993). 
120

Oil. Oil in Louisiana has been exploited since prehistoric Indian times, when these early 

inhabitants likely skimmed petroleum off of water to make medicine (Kniffen, 1968). But it was 

not until the 1902 discovery of oil at the Jennings Field in Jefferson-Davis Parish that the oil 

industry really exploded. Oil-related manufacturing grew along with the production of oil. The 

first pipeline in the state was built in 1901, and this ran from Jennings to Texas. Eight years 

later, a major refinery complex in Baton Rouge was established and within a year, two more 

major pipelines were in existence in the state: a pipeline from Caddo Parish to the Gulf and from 

southwestern Louisiana to Baton Rouge. By 1916, the state ranked fifth in the nation in 

production (Kniffen, 1968). The number of refineries continued to increase and, in 1919, the 

state had 15 refineries. Presently there are 19 refineries in Louisiana (Louisiana Mid-Continent 

Oil and Gas Association, 2003). 

 In 1947, Louisiana’s first offshore oil well was drilled, opening up the offshore industry 

to the state. Consequently, the manufacturing of offshore rigs and transportation vehicles 

became a necessity. The dredging of canals off the coast that were used to transport oil more 

efficiently also introduced salt water intrusion into freshwater marshes. Through the years, 

major companies have worked to alleviate environmental impacts while providing positive 

economic growth. Such growth continued until the national recession in the 1980s and the 

concomitant drop in oil prices. This drop proved to be economically damaging to the state, as a 

number of major oil companies pulled out. 

In 1978, construction began on the Louisiana Offshore Oil Port (LOOP), located 18 miles 

offshore in the Gulf of Mexico, under the direction of J. Ray McDermott Co. No such port was 

needed prior to 1970 because the U.S. was an oil supplier, not an oil customer. LOOP is the 

United State’s first deepwater port capable of unloading crude oil from supertankers. 

LOOP’s initial construction phase began in the summer 1978 with the financial support 

of Marathon Pipeline Co., Texaco, Inc., Shell Oil Co., Ashland Oil, Inc., and Murphy Oil Corp., 

which owned 32 percent, 27 percent, 20 percent, 19 percent, and 3 percent of stock, respectively. 

It was anticipated that the Superport’s first phase of construction would bring in nearly 31,000 

jobs. At this point, LOOP’s designation as a reception center for foreign crude oil clarified the 

national role’s transition from supplier to customer. This port had the advantage of proximity to 

a pipeline running from St. James northward to U.S. refineries in the east and mid-west. LOOP 

is also the only U.S. port large enough to accommodate supertankers over 400 yards long, which 

is 10 times the size of most U.S. oil tankers. It was projected that LOOP would unload 1.4 

million barrels of imported oil on a daily basis, and 3.4 million barrels daily by 1989 (Starr, 

1977). 

In 1975, the Louisiana state mineral severance tax revenue from oil (excluding OCS 

activity) was $279 million, with $234 million coming from natural gas, for a total severance tax 

of $513 million. By 1980, the severance tax from oil increased to $428 million, as compared 

with $162 million from natural gas. By 1981, the oil severance tax had risen enormously to $815 

million, for a year-end total of $979 million. After this year, severance tax revenue from oil 

began to drop: $766 million in 1982; $662 million in 1983; $599 in 1985; and $296 in 1988. At 

the same time, however, severance tax revenue from natural gas remained relatively constant 

throughout this bell-curve in oil severance tax revenue (Louisiana Department of Natural 

Resources, 1997). At the onset of the 1990s, Louisiana still remained in a recession stage, 

resulting from a decline in its oil and gas industries. 
121

D. DEMOGRAPHIC CHARACTERISTICS

Population Growth. Louisiana had a population of 4,468,976 persons in 2000. 

Louisiana had the 24th highest population of any state in the country for that year (Table 1). 

Table 1 

 Population Changes, Louisiana State: 1940 to 2000 

Year Population Change from 

Previous Census 

Percent Change 

from Previous Census 

2000 4,468,976 249,003 5.9 

1990 4,219,973 14,073 0.3 

1980 4,205,900 564,594 1.5 

1970 3,641,306 384,284 1.1 

1960 3,257,022 573,506 2.0 

1950 2,683,516 319,636 1.3 

1940 2,363,880 262,287 1.2 

 Source: U.S. Census Bureau, 2000b. 

Ethnicity and Age. Historically, Louisiana’s population has included a large AfricanAmerican demographic. In 2000, African-Americans comprised 33 percent of the state’s 

population, and Caucasians accounted for 64 percent (Table 2) (U.S. Census Bureau, 2000b). 

 The State has a predominantly youthful population. In 2000, 27 percent of residents were 

less than 18 years of age, and 12 percent were 65 years of age and older. The median resident 

age was 34.0; the national median age was 35.3 in this same year (U.S. Census Bureau, 2000b). 

Table 2 

Racial and Ethnic Populations, Louisiana State: 2000 

Race/Ethnicity Population Percent 

 White 2,856,161 63.9 

 African American 1,451,944 32.5 

 Hispanic* 107,738 2.4 

 American Indian 25,477 0.6 

 Asian 54,758 1.2 

 Pacific Islander 1,240 0.0 

 Other Race 31,131 0.7 

 Two or More Races 48,265 1.1 

 * Hispanics may be of any race. 

 Source: U.S. Census Bureau, 2000b. 
122

E. ECONOMY 

Income and Poverty. Median family income in Louisiana in 2000 was $39,774. In that 

same year, nearly 16 percent of Louisiana families were living below the poverty threshold. Of 

that percentage, single females headed some 41 percent of these families (Table 3). Also in 

2000, 7 percent of all children in Louisiana under the age of 18, and 2 percent of children less 

than five years old, were living in poverty (U.S. Census Bureau, 2000b). 

Table 3 

 Income, Poverty and Family Structure, Louisiana State: 1960-2000 

Year Median Family 

Income 

(2000 constant $) 

Change from

Previous 

Census 

Ratio to 

National 

Median 

Persons

in 

Poverty

Female-Headed 

Families with 

Children 

2000 $39,774 51.2% 0.79 19.6% 16.6% 

1990 $26,313 -13.2% 0.75 23.6% 15.6% 

1980 $30,310* 27.9% 0.91 -- -- 

1970 $23,689* 41.3% 0.78 -- -- 

1960 $16,764* -- 0.75 -- -- 

 *Constant 1990 dollars. 

 Source: U.S. Census Bureau, 2000b. 

Employment. In terms of employment, Louisiana’s economy is dominated by services. 

In 2000, 44 percent of the state’s labor force was employed in services, with education, health, 

and social services comprising the largest sub-sectors. Tourism, which includes arts, 

entertainment, recreation, accommodations, and food services, employed 9 percent of the labor 

force (Table 4) (U.S. Census Bureau, 2000b). 

 Manufacturing employs a large share of the state’s workforce. In 1990, this sector 

employed nearly 13 percent of the population. Much of this employment was in chemical and 

allied products manufacturing and in oil and sugar refining. By 2000, this sector employed only 

10 percent of the total labor force (U.S. Census Bureau, 2000b). 

Employment in the state’s wholesale and retail trade sectors is also significant. In 1990, 

this sector employed 22 percent of the labor force. As with manufacturing, this sector witnessed 

a substantial decline in employees in 2000, when employment dropped to 15 percent (-43%) of 

the labor force. Much of this decline may in part be related to the concomitant decline in 

manufacturing (Louisiana Mid-Continental Oil and Gas, 2003). The mining sector has 

continually employed 3 percent of the labor force since 1990 (U.S. Census Bureau, 2000b). 

In 2004, the 20 largest employers in the State of Louisiana, with their location and 

corresponding number of employees, are as follows: Mosquito Abatement (Monroe/10,318), 

Barksdale Air Force Base (Barksdale AFB/10,000), Ochsner Foundation Hospital 

(Jefferson/6,500), Northrop Grumman Ship Systems (Avondale/6,000), Pediatric Hematology 

and Oncology (Shreveport/6,000), Charity Hospital (New Orleans/5,500), LSU Medical Center 

(Shreveport, 5,200), Ochsner Clinic Foundation (Jefferson/5,000), LA State University Medical 

Center-Charity (New Orleans/5,000), Medical Center of LA (New Orleans/5,000), Tulane 

University (New Orleans/5,000), University Hospital Occupation (New Orleans/5,000), 
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Children’s Hospital SVC (Shreveport/5,000), LSU School of Medicine (Shreveport/5,000), 

Willis-Knighton Pierremont (Shreveport/4,001), Our Lady of the Lake Physical (Baton 

Rouge/4,000), U.S. Post Office (New Orleans/4,000), Charity Hospital of Louisiana (New 

Orleans/3,900), Willis-Knighton Medical Center (Shreveport/3,900), and Fabrication and 

Offshore Operations (Morgan City/3,500) (InfoUSA, 2004). 

As of 2005, Entergy was the only Louisiana-based company on the Fortune 500 list. In 

that year, Entergy ranked 221 of 500 companies, earning $10.1 billion dollars in revenue in 2004 

(WABF News Channel, 2005). However, there were five Fortune 1,000 companies located in 

Louisiana in 2005: Entergy, Shaw Group, Century Telephone, Freeport-McMoRan Copper and 

Gold, and the Hibernia Corporation (Fortune 500, 2005). 

Table 4 

Employment in Major Industrial Sectors, Louisiana State: 1990-2000. 

Year Agric., 

Fishing & 

Forestry 

Mining Constr. Manuf. Trans., 

Comm. &

Public 

Util. 

Wholesale

& Retail 

Trade 

Finance, 

Insurance 

& Real 

Estate 

Services Public 

Admin.

Workers in Sector 

2000 27,630 50,537 145,850 187,499 135,216 285,590 105,353 807,465 106,637

1990 41,805 52,329 111,181 205,420 128,017 361,074 94,423 563,159 84,206

Percent of Workers in Sector 

2000 1.5% 3.2% 7.9% 10.1% 7.3% 15.4% 5.7% 43.6% 5.8% 

1990 2.5% 3.2% 6.7% 12.5% 7.8% 22.0% 5.7% 34.3% 5.1% 

Growth from Previous Census 

2000 -33.9% -3.4% 17.7% -23.7% -0.7% -42.8% 0.0% 27.1% 13.7% 

Source: U.S. Census Bureau, 2000b. 

Industry. Traditionally, Louisiana’s economic base has been rooted in agriculture. Now, 

in the early 21st century, Louisiana’s economy is based on mineral production, especially oil and 

natural gas, sulphur, lime and salt, petroleum refining, chemical and petrochemical 

manufacturing, tourism, forestry and forestry-based manufacturing, agriculture, marine-based 

activities, trade and transportation, shipbuilding, and general manufacturing. In 2003, Louisiana 

was the third leading producer of natural gas and the fourth leading producer of crude oil in the 

country. There were 19 active refineries in the state in that same year (Louisiana Mid-Continent 

Oil and Gas Association, 2003). 

 The oil and gas industry (onshore and offshore combined) has had a tremendous impact 

on the Louisiana economy. In 2001, revenues totaled $92.6 billion (Scott, 2002). Further, the 

industry supports hundreds of thousands of jobs; it supplied approximately 341,569 direct and 

indirect jobs in 2001. The oil and gas industry also was responsible for more than $12.2 billion 

in household earnings, and represented 13 percent of the total earnings in Louisiana in 2001 

(Louisiana Mid-Continent Oil and Gas Association, 2003). According to Applied Technology 

Research Inc. (Louisiana Mid-Continent Oil and Gas Association 2003), the offshore industry 

had a direct impact of $3 billion on the state in 2001, paying more than $500 million in salaries 

and wages to people working in the Gulf (Table 5). 
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Table 5 

 Earnings in Major Industry Sectors and Selected Sub-sectors, Louisiana State: 1990-1999 

Industry Earnings (Constant 2000 

1000’s $) 

Share of

Earnings

Change Share of 

Change 

 1990 1999 1999 1990-1999 1990-1999

Earnings $64,052,221 $98,199,625 100.0% $34,417,404 100.0% 

Farm Earnings $380,625 $616,081 0.6% $235,456 0.7% 

Ag. Services, Forestry, and 

Fishing $273,972 $476,944 0.5% $202,972 0.6% 

 Fishing $78,296 $73,926 0.0% -$4,370 0.0% 

Mining $2,748,628 $3,342,437 3.4% $593,809 1.7% 

 Oil and gas extraction $2,654,887 $3,168,410 3.2% $513,523 1.5% 

Construction $3,150,619 $5,619,490 5.7% $2,468,871 7.2% 

 Special trade contractors $1,405,149 $2,797,143 2.8% $1,391,994 4.0% 

Manufacturing $6,976,903 $9,773,075 9.9% $2,796,172 8.1% 

 Fabricated metal prods. $459,486 $600,152 0.6% $200,666 5.8% 

 Indust. machine & equip. $401,799 $776,190 0.8% $374,391 1.1% 

 Food and kindred $504,928 $706,722 0.7% $201,794 0.6% 

 Chemicals and allied $2,026,203 $2,722,003 2.8% $695,800 2.0% 

 Petroleum and coal $659,827 $877,370 0.9% $217,543 0.6% 

Transportation and Public 

Utilities $3,946,109 $5,606,414 5.7% $1,660,305 4.8% 

 Trucking & warehousing $698,822 $1,138,197 1.1% $439,375 1.3% 

 Water transportation $839,341 $1,176,394 1.2% $337,053 1.0% 

 Transportation by air $273,594 $379,117 0.4% $105,523 0.3% 

Wholesale Trade $2,636,952 $4,034,553 4.1% $1,397,601 4.1% 

Retail Trade $4,327,687 $6,671,508 6.8% $2,343,821 6.8% 

 Eating & drinking places $990,163 $1,754,093 1.8% $763,930 2.2% 

Finance, Insurance, and Real 

Estate $2,207,790 $4,135,663 4.2%

 

$1,927,873 5.6% 

Services $11,543,127 $18,480,602 18.8% $6,937,475 20.1% 

 Business services $1,847,837 $2,895,583 2.9% $1,047,746 3.0% 

 Health services $4,009,501 $6,172,363 6.3% $2,162,862 6.3% 

 Legal services $1,409,935 $1,879,644 1.9% $469,709 1.3% 

 Engineering and 

 management services $1,336,550 $1,816,420 1.8% $479,870 1.4% 

Government $9,221,902 $13,592,547 13.8% $4,370,645 12.7%

 NA = Data not available. 

 Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2000. 

 The central manufacturing industries in the state, in terms of dollar value, are chemicals 

and allied products, petroleum, and food products. The refining segment of the offshore oil 
125

industry alone had an $8 billion impact on Louisiana in 2001, with about $4 billion going toward 

the purchase of crude oil, and $4 billion going toward salaries, wages, services, and supplies 

(Louisiana Mid-Continent Oil and Gas Association, 2003). 

 In June 1999, Louisiana had 1,462 banking and savings institutions, with deposits 

totaling some $44.7 billion. Expenditures in federal funds and grants in this same year totaled 

over $24.3 billion (U.S. Census Bureau, 2002). 

Marine-based Activities. Louisiana has rich marine-based resources and is renowned for 

its fishing activities. Home to one of the most diverse aquaculture industries in the U.S., 

Louisiana is a leader in crawfish, oyster, pet turtle, and alligator sales. Acreage for farm-raised 

crawfish and alligators fluctuates from season to season, as do harvest and value. In 2002, the 

state had a reported 1,135 farmed and 1,068 wild crawfish producers. Over 106,650 acres of 

state land were devoted to production of crawfish, and nearly 74.5 million pounds of crawfish 

were farmed or caught in 2002, bringing in a gross farm value of over $56.5 million. Catfish 

production, also important to the state, had a gross farm value of over $38 million, with 67.4 

million pounds of farmed and wild catfish being produced. Farmed alligator production, 

utilizing 202,316 acres, had a gross farm value of $14.2 million. Minnow, fishbait, alligators, 

oysters, and soft-shell crabs are also farmed; the state’s freshwater fisheries produce buffalo and 

gar. Total aquaculture production in 2002 had a gross farm value of over $123.7 million, with 

total freshwater fisheries bringing in a gross farm value of over $10.5 million (Louisiana State 

University, 2002). 

 Nine marine fisheries are located in the state, producing $161.3 million in gross farm 

value. In 2002, there were 6,530 commercial shrimpers (full- and part-time) in the state, 2,062 

crabbers, 854 finfishers, and 23 menhaden fishers. Shrimp had the largest gross farm value, at 

$90.6 million; but menhaden ranked first in terms of pounds sold, selling over 747.4 pounds in 

2002 (Louisiana State University, 2002). 

While Louisiana’s total 2002 fish and wildlife production had a gross farm value of over 

$345.2 million, Louisiana’s marine fisheries activities are in decline. Commercial fish landings 

declined by 26 percent in 2002, largely due to significantly diminished shrimp (-43%) and 

menhaden (-25%) landings (Louisiana State University, 2002). 

Louisiana is also a prime destination for recreational fishermen. In 2001, 775,715 marine 

anglers caught 27.8 million fish, kept 18.5 million, and released the rest. Nevertheless, this 

figure is substantially down from 2000 catch levels (Louisiana State University, 2002). 

 Military Installations. There are several major military installations in Louisiana. 

These include Barksdale Air Force Base in Bossier City, the Naval Air Station-Joint Reserve 

Base outside of New Orleans, and Fort Polk in Leesville. England Air Force Base in Alexandria 

was closed in 1992. 

 Barksdale Air Force Base, located south of Bossier City, has a long history of training 

pilots from before WWII, although it has since been enlarged and modernized. It is especially 

known for its bombing commands. Barksdale has served as a base for almost every type of 

bomber including the B-17, B-24, B-26, B-45, B-50, and B-52 (Barksdale Air Force Base, 2004). 

 The Naval Air Station-Joint Reserve Base is located in Belle Chasse near New Orleans. 

It serves the country through its joint operation of the five branches of the U.S. Armed Forces 

(Global Security, 2003) 

 Fort Polk, located in Leesville, is one of the most important training facilities in 

Louisiana. Established in 1941, the army base trained soldiers for WWII. In 1983, it 

transitioned into the Joint Readiness Training Center (JRTC), which combines army and air force 
126

training, and has recently seen more involvement from Navy and Marines as well. Fort Polk is 

considered a major modern facility, having spent over $500 million on the installation. It was 

named the Forces Command (FORSCOM) representative for the Office of the Secretary of 

Defense Model Installation Program (MIP) in July 1984 (Global Security, 2003). 

 Recreation and Tourism. Each parish has its own recreation centers, parks, golf courses, 

bowling alleys, movie theatres, and museums. Fishing is popular throughout the state, and there 

are many sport-fishing tournaments. Community life is rich in the smaller population centers, 

and many communities host their own annual festivals. 

 Tourist attractions include the New Orleans French Quarter, Acadiana’s culture and folk 

festivals, swampland tours, hiking and camping, canoeing and Mississippi River boat rides. 

Cruises departing from the Port of New Orleans also bring in a number of tourists. 

 Louisiana also features numerous festivals throughout the year, the most renowned of 

which is Mardi Gras. There are also more than one hundred smaller festivals, fairs and activities 

celebrating Louisiana’s culture, food, crops, harvests, fishing legacy and forestry each year 

including: the Jean Lafitte Pirate Festival, Bastille Day (Kaplan), Acadiana Migratory Bird Day 

(Lafayette), Alligator Festival (Franklin), American Legion Strawberry Festival (Gonzales), the 

Amite Oyster Festival (Amite), Andouille Festival (LaPlace), the Angola Spring Rodeo and Arts 

and Crafts Festival (Angola), the Annual Louisiana Fiddler’s Championship (Marthaville), ArkLA-Tex Jazz and Gumbo Festival (Shreveport), Blueberry Festival (Mansfield), Bluegrass 

Festival (Anacoco), Br’er Rabbit Folk Festival (Vacherie), the Bucktown Seafood Festival 

(Metarie), Cajun and Creole Christmas (Lafayette), the Catfish Festival (Washington), Christmas 

on the Bayou (Iberia), the Cotton Festival (Ville Platte), the Cypress Sawmill Festival 

(Patterson), the Delcambre Shrimp Festival (Delcambre), Giant Omelet Festival (Abbeville), the 

Great French Market Tomato Festival (New Orleans), the International Cajun Joke Telling 

Contest (Opelousas), the International Rice Festival (Baton Rouge), Isleno Festival (St. Bernard), 

the Louisiana Cattle Festival (Abbeville), Louisiana Snake Festival (Baton Rouge), the New 

Orleans Wine and Food Experience (New Orleans), Octoberfest (Ponchatoula), the Pecan 

Festival (Colfax), the Sugar Cane Festival (New Iberia), the Zydeco Extravaganza (Lafayette), 

the Jazz and Heritage Festival (New Orleans) and many, many others (Center for Cultural and 

Eco-Tourism, no date). 

 Tourism has long been important to the economic well-being of the state. In 2000, 

Louisiana had $7.6 billion in expenditures, representing a 7 percent increase from 1999. In this 

same year, the state employed 110,000 in the industry (a 3% increase from 1999) with a payroll 

of $1.7 billion (a 7% increase from 1999). State tax receipts from tourism totaled $351 million 

and local tax receipts $192 million (Travel Industry Association of America, 2003). The State 

Department of Culture, Recreation, and Tourism actively promotes tourism-related opportunities 

in Louisiana. 

F. LOCAL GOVERNMENT 

Governmental Structure. The State is divided into 64 “parishes.” This term derives 

from the political subdivisions created by the Roman Catholic Church during colonial times. 

The State government consists of an executive, a legislative, and a judicial branch. The 

executive branch of the State government consists of 22 branches, with the Governor as the chief 

executive officer of the state. The Governor is required to submit an operating budget and a 

capital budget for each fiscal year to the legislature. The legislative branch, consisting of the 
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Senate and the House of Representatives, was established through the Louisiana Constitution and 

is responsible for the creation of general legislative policies of the state. The maximum number 

of senators permitted in the Senate is 39 and the maximum number of members of the House of 

Representatives is 105. The legislature must convene in the State capitol annually. The State 

has one Speaker of the House of Representatives, one Speaker Pro Tem, a Clerk of the House, 

and Sergeant at Arms (Louisiana Legislature, 2004). 

Revenues and Taxes. The Louisiana Constitution, Article Seven, provides for 

governance over taxes. In 1848, taxes were levied on land in proportion to value. In 1864, the 

State Constitution allowed for the exemption of church, school, and charitable-purpose 

properties from taxation. In 1921, the Constitution established all taxes to be uniform and levied 

for public purposes only. In 1916, Louisiana created its Tax Commission to monitor and 

supervise local tax processes. It is also responsible for assessing all public service properties, 

including utility companies and oil pipelines (Louisiana Tax Administrator, 2001). 

 The State levies a 4 percent sales tax, while municipalities levy their own taxes (Entergy, 

2003). There is no state property tax in Louisiana; however, city and parish administrations may 

administer a local property tax ranging from 10 percent for land and residential improvements to 

15 percent for commercial buildings to 25 percent for public services. While millage rates vary 

across parishes, the average statewide rate on property was 1 percent, as of 1999 (Encyclopedia 

Louisiana, 1999). Total tax collections for the state in 2000 were $10,887 million dollars; total 

own source revenues were $17,272 million (Louisiana Tax Administrator, 2001). 

 In the 2003-04 fiscal year, total net collections summed to $6.2 billion dollars; in the 

2000-01 fiscal year they totaled $6.0 billion (Louisiana State Department of Revenue, 2004). 

The 2003-04 revenues emanate from the following tax sources: sales ($2.2 billion), individual 

income ($2.2 billion), severance ($514 million), corporate franchise ($183 million), corporate 

income ($233 million), petroleum products ($563 million), liquor/alcohol ($53 million), tobacco 

($145 million), and other ($29 million) (Louisiana State Department of Revenue, 2004). 

Voter Registration. In the first quarter of 2001, there were 2,728,758 persons registered 

to vote in the State of Louisiana (68% Caucasian; 29% African-American; 3% “other”). 

Approximately 60 percent (1,626,084) were registered as Democrats (58% Caucasian; 40% 

African-American; 2% “other”), and 22 percent registered as Republicans (93% Caucasian; 5% 

African-American; 3% “other”). An additional 18 percent (492,039) were registered to various 

third parties (69% Caucasian; 22% African-American; 9% “other”) (Louisiana Department of 

Elections and Registration, 2001). 

 The State created its first African-American majority district in 1983, after a federal court 

upheld a voting-rights challenge. The creation of a second African-American majority District 

incited redistricting in 1992. In 1990, Democrat William J. Jefferson was elected to Congress, 

the State’s first African-American to be elected to a federal position since the Reconstruction era 

(Louisiana Legislature, 2004). 

G. SOCIAL CONTEXT 

Education. In the 2001-2002 school year, there were 1,508 K-12 public schools in 

Louisiana (87 districts), with 49,915 teachers and 731,474 students (Heritage Foundation, 2004). 

During that school year, the overall teacher to student ratio was 1 to 14.7 (Heritage Foundation, 

2004); (the national average was 15.9) (MSN Encarta, 2005). Expenditures in this year were 

$4.5 billion dollars, with a per pupil expenditure rate of $6,270 dollars; the national average was 
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$7,898 per pupil. The State of Louisiana received 11.7 percent of its total revenue from the 

federal government in this year (Heritage Foundation, 2004). 

 In the 1999-2000 school year, there were 434 private schools with a student enrollment of 

138,135 in Louisiana. With 9,206 teachers, these private schools had a teacher to student ratio of 

1:15 (Heritage Foundation, 2004). 

 Over 84 percent of all students in Louisiana attended public schools. In the 2003-04 

school year, average daily attendance for Louisiana public school students was 92.6; the national 

average for this year was 93.7 (National Education Association, 2005). This information is not 

available regarding private schools. 

 In the 1999-2000 school year, total revenues equaled $5,231,521,271, while expenditures 

totaled $5,209,683,037. Instructional purposes accounted for 54 percent of total expenditures in 

this school year. Per student spending equaled $5,562. In this same school year, 32 percent of 

all Louisiana school teachers held an advanced degree (21% Master’s degree) (Louisiana 

Department of Economic Development, 2002). 

 In the 2003-03 school year, the average elementary and secondary school teacher salary 

in Louisiana was $37,166; the national average was $45,771. The State of Louisiana ranked 44th

of 51 states (ranking includes the District of Columbia) in terms of teacher salaries for that year. 

Teachers in California earned, on average, the highest salary at $55,693 (U.S. Census Bureau, 

2005). 

 In 2000, the combined average composite ACT score for both Louisiana public and 

nonpublic students was 19.6 out of a possible 36 (the national composite average is 21.0). The 

average SAT score for college-bound seniors in this year was 558 Math and 562 Verbal. These 

scores were higher than the national averages of 514 and 505 for Math and Verbal sections, 

respectively. 

There are over 100 campuses offering higher education in Louisiana. Within the 

University of Louisiana State System (Louisiana’s largest university system) there are eight 

universities: Grambling, Louisiana Tech, McNeese, Nicholls, Northwestern, Southeastern 

Louisiana, University of Louisiana at Lafayette, and the University of Louisiana at Monroe. 

This system annually enrolls over 78,000 undergraduate and graduate students, and employs 

approximately 11,000 full- and part-time faculty and staff members (University of Louisiana 

System, 2002). 

 The Louisiana State University System also maintains facilities and/or programs in each 

of the State’s 64 parishes. Louisiana’s Southern University System operates five campuses 

throughout the state: Southern University and A&M College, Southern University at New 

Orleans, Southern University at Shreveport, Southern University Law Center, and Southern 

University Agricultural Research and Extension Center. The Louisiana Community and 

Technical College System maintains 10 campuses: Baton Rouge (two), Bossier City, Delgado, 

Monroe, Chalmette, Sorrento, Houma, and Lake Charles. Louisiana is also home to the 

Louisiana Universities Marine Consortium (LUMCOM), which focuses on marine research and 

education. Finally, there are also 10 independent colleges and universities maintaining 11 

campuses located in the state: Centenary College (Shreveport), Dillard University (New 

Orleans), Louisiana College (Alexandria/Pineville), Loyola University (New Orleans), New 

Orleans Baptist Theological Seminary (New Orleans), Our Lady of the Holy Cross College (New 

Orleans), Our Lady of the Lake College (Baton Rouge), Saint Joseph Seminary College 

(Covington), Tulane University (New Orleans), and Xavier University (New Orleans) (Louisiana 

Board of Regents, 1996). 
129

 Overall, Louisiana’s educational attainment and achievement levels are a concern for 

state and local officials. Louisiana ranks at the bottom of all 50 states in the nation on all key 

indicators of educational status, including test scores, drop-out rates, and college remediation 

(Louisiana Department of Economic Development, 2002). 

Although both national and state test scores have improved and high school dropout rates 

have decreased since the 1998-99 school year, Louisiana still ranks low on the following 

educational indicators: low basic level academic test scores; dropout rates; and “poor” or “failing 

performances by many of its public middle and high schools. For example, in 2001, only 59 

percent of fourth graders and 51 percent of eighth graders scored at or above the “basic” level on 

the English/Language Arts component of the Louisiana Education Assistance Program (LEAP) 

test, while only 54 percent of fourth graders and 46 percent of eighth graders passed at or above 

“basic” levels on the Math component. On the Graduate Exit Exam, 78 percent of high school 

seniors (class of 2001) passed the English/language Arts section while only 66 percent passed the 

Math section (Council for a Better Louisiana, 2002). 

Further, in the 2001-02 school year, 9.2 percent of secondary school students in 

Louisiana dropped out of high school; this drop out rate significantly exceeds the national rate of 

4.9 percent for that year. Also, in that same year, 65.7 percent of public and nonpublic school 

graduates were enrolled as first-time college freshmen (Louisiana Department of Economic 

Development, 2002). And, while the percentage of high school graduates in Louisiana exceeded 

that of the nation as a whole in both 1990 and 2000, the percentage of Louisiana residents with a 

BA/BS degree or higher was significantly lower than at the national level for those same years 

(Table 6) (U.S. Census Bureau, 2000b). 

 

Table 6 

 Educational Attainment of Adults (age 25+), Louisiana: 1990-2000 

Year Educational Attainment of Adults Ratio to Nation 

0-8 

Years 

Some High 

School 

High School

Diploma 

Some 

College, 

No Degree

BA/BS

or More

High School 

Diploma 

BA/BS 

or More

2000 9.3% 15.9% 32.4% 20.2% 18.7% 1.13 0.77 

1990 14.7% 17.0% 31.7% 17.2% 16.1% 1.08 0.79 

 Source: U.S. Census Bureau, 2000b. 

Health and Welfare. Several measures indicate the integrity of Louisiana’s health care 

system. Louisiana ranks ninth in the nation and third in the South for the number of per capita 

hospital beds. As of 2001, there were 125 hospitals in the State of Louisiana with an equivalent 

of four hospital beds per 1,000 population, or 342 inpatient beds for every 100,000 persons. This 

ratio is significantly higher than the national average of 292 beds per 100,000 persons. There are 

also 322 certified nursing facilities with a total of 36,843 beds (Louisiana Department of Health 

and Hospitals, 2002). 

 However, measurements of maternal and infant health in Louisiana are mixed. On the 

one hand, the percentage of pregnant women in 2001 who began prenatal care during their first 

trimester in Louisiana (83%) is equivalent to the national percentage (Kaiser Family Foundation, 

2003). On the other hand, the overall percentage of low birth weight infants (10%) in Louisiana 
130

in that same year exceeded that of the nation as a whole (8%). Additionally, Louisiana’s infant 

mortality rates (10 per 1,000 live births) for 2001 were also higher than the nation’s (7 per 1,000 

live births) (Kaiser Family Foundation, 2003). 

 Louisiana’s indicators of youth welfare are also troubling. In 2001, 16 percent of all live 

births in Louisiana were to teenage girls under the age of 18 (39% Caucasian, 58% AfricanAmerican). Nationally, 11 percent of all live births were to girls under the age of 18 (43% 

Caucasian, 25% African-American) (Kaiser Family Foundation, 2003). 

 Louisiana’s health care system in terms of service delivery is a problem. Despite its high 

number of hospital beds relative to the nation, Louisiana ranked 50th––or last––among all U.S. 

states in terms of access to primary health care in the 1999 Health Care State Rankings. This 

ranking is based on a “measure of health care shortage areas and a poor distribution of doctors” 

(Louisiana Department of Health and Hospitals, 2002). Although the majority of the state’s 

population resides in urban areas where access to health care is reasonable, the state’s rural 

population has tremendous difficulty accessing general health care providers or emergency 

services. Additionally, 19.8 percent of all residents in the State of Louisiana (57.5% children, 

11.6% adults) were Medicaid recipients in 2001; this rate exceeds the national rate of 16.7 

percent (49.7% children, 24.5% adults) (Kaiser Family Foundation, 2003). 

Religion. Louisiana is characterized as a Catholic state. This religious affiliation stems 

from colonial times, when the Spanish and French Acadians first settled the area. Catholic 

churches are found in nearly every community, although other religious denominations are also 

present. In 2000, 59 percent of Louisiana residents claimed a religious affiliation: Evangelical 

Protestants (37%), Mainline Protestant (9%), Catholic (53%), and 2 percent “other.” An 

additional 41 percent of residents did not claim a religious affiliation in this year (American 

Religion Data Archive, 2002). 

H. ISSUES OF CONCERN 

Louisiana has many pressing state concerns. Most of these concerns constellate around 

coastal erosion and management, and a poorly educated work force. 

Coastal erosion and ecological imbalance have significant concerned both 

environmentalists and the fishing industry for decades. Both of these interest groups argue that 

freshwater plant and animal life are being exposed to an environment ill-suited for adaptation. In 

response to these charges, the state has instituted the Gulf Ecological Management Sites (GEMS) 

program for coastal restoration. Presently, there are 33 GEMS in the state. Together, the U.S. 

Army Corps of Engineers, Natural Resources Conservation Service, National Marine Fisheries, 

the Environmental Protection Agency, the U.S. Fish and Wildlife Service, and the State of 

Louisiana work to minimize soil erosion in the wetlands and breakdown related to wave and tidal 

action, to create new and protect existing wetlands, and to control water so that it benefits 

wetlands growth (Louisiana Department of Natural Resources, 2001a). 

 Education is also a serious state concern. According to the Louisiana Department of 

Education, Louisiana ranks at the bottom of all 50 states in the nation on all key indicators of 

educational status, including test scores, drop-out rates, and college remediation (2002). 

 According to Bobby Jindal, who was a state gubernatorial candidate in 2003, Louisiana 

continues to trail behind other southern states in several indicators of student achievement. For 

example, approximately 50 percent of all fourth graders in the state were reading below the basic 

level in that year, and 48 percent of all eighth graders in the state lacked basic math skills. 
131

Drawing on statistics provided by the Louisiana Department of Education, Jindal asserts that 

only 70 percent of public high school freshmen ultimately graduate. Like other states, he further 

notes, there is also an achievement gap between white and minority students, and low-income 

and middle and upper income students (Jindal, 2003). 

 In turn, poor educational attainment levels are linked to state poverty and unemployment 

rates. For example, Louisiana had a 6.6 percent unemployment rate in 2003 (ranging from 3.9% 

in the Houma LMA to 7.5% in the Shreveport-Bossier LMA); the national unemployment 

average was 6 percent. In that same year, the median household income was $33,500, earning 

the Louisiana the low ranking of 48th among 51 U.S. states and territories on this indicator. The 

national average for median household income was $43,300 in 2003 (InfoUSA, 2004). 

 In turn, poverty contributes to Louisiana’s low educational attainment levels and a poorly 

prepared labor force. Births to unwed mothers account for nearly 50 percent of all births in 

Louisiana, a factor linked to low educational performance. Further, Louisiana has the second 

highest level of childhood poverty in the U.S. and “roughly 60 percent of all public school 

children (724,000) are labeled “at-risk” of school failure” (Jindal, 2003). 

I. LOUISIANA LABOR MARKET AREA PROFILES 

 The purpose of this project is to understand how structural changes in industry, 

particularly oil and gas related industries, impact local communities and public institutions 

within the Gulf of Mexico Region (GOMR). The task at hand requires that we utilize a variety 

of data sources and methodologies to provide a more complete narrative of the phenomenon in 

question. We also utilize a rather unique definition of local communities: Labor Market Areas. 

Labor Market Areas (LMAs) are defined by patterns of transportation to and from work both 

within and across county boundaries. Therefore, the areas contained within LMAs better 

empirically represent local social systems, communities, and economies (Killian and Tolbert, 

1993). The following profiles carefully consider the Labor Market Areas in Lake Charles, 

Lafayette, Lafourche, and New Orleans, Louisiana (Map 6). 

 At the heart of this analysis are changes in the industries related to offshore oil and gas 

exploration and production, particularly the boom and bust periods of the 1970s and 1980s. In 

the profile that follows, we first present an overview of the significance of the project, followed 

by a theoretical framework with which to examine the interconnection between industry and 

local community structural changes. 

 The analysis itself is divided into three units of time: 1940-1970, 1970-1990, and 1990-

2000. The first unit of time presents a brief industry history of the Mobile LMA from 1940 to 

1970, followed by a minimalist overview of population changes. In the second unit, we examine 

all oil and gas and related industries within the LMA for the years between 1970 and 1990, 

inclusive. We then link industry changes during this period to fluctuations in population 

structure and dynamics, education, and local government finance. The third unit examines the 

period between 1990 and 2000 to assess the fallout of the oil and gas industry during the decade 

immediately following the bust. 

Industry Overview. The oil and natural gas industry experienced a boom during the 

1970s (Gramling, 1996; Seydlitz and Laska, 1994). Rising demands for on-shore domestic 

supplies of oil, and political instability surrounding OPEC and the Middle East increased 

offshore oil and natural gas exploration activities in the Gulf of Mexico (Gramling, 1996; 

Gramling and Freudenburg, 1990). The subsequent “boom” is reflected in the LMA 

employment data. For example, in 1970, approximately 71,000 workers were directly employed 
132

full-time in the oil and natural gas industry in the coastal economies of the Gulf of Mexico. By 

1980, that number had grown to over 145,000, a net increase of 105 percent––and those numbers 

do not reflect changes in oil and gas multiplier industries such as equipment manufacturing, 

water transportation, wholesale trade, and general services. 

During the early 1980s, however, consumption trends began to change and affect 

employment. First, a gradual drop in demand occurred as substitution effects played-out, with 

actors reducing their consumption of oil and gas by-products (e.g., buying more fuel efficient 

cars; see Gramling, 1996). Additionally, the oil and natural gas industries experienced a sharp 

decline in the mid 1980s brought about largely by overproduction among OPEC members trying 

to “starve” weapon shipments into warring Iran and Iraq (Heilbroner and Milberg, 1999). 

Between 1980 and 1990, the total number of workers in the oil and natural gas industries in the 

coastal economies of the Gulf of Mexico declined from over 145,000 to 112,000, which is a 

decrease of 23 percent. The “boom and bust” data, as reflected in the price of oil, is presented 

below (Figure 1). 

0

10

20

30

40

50

60

1969

1970

1971

1972

1973

1974

1975

1976

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1980

1981

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1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

 Figure 1. Crude Oil Prices, U.S. Average (price per barrel in 1998 dollars): 1969- 

 1998 (Energy Statistics Sourcebook, 1999). 

The coastal economies of some oil dependent LMAs in the Gulf of Mexico were more 

severely impacted by the oil bust than others. For example, the Lafayette LA economy lost 

14,000 jobs in the oil and natural gas extraction industries between 1982 and 1988, a 63 percent 

loss. Other industries throughout the greater Lafayette area were affected as well, with total 

employment dropping from 200,000 workers in 1982 to 160,000 workers in 1987.1

 These losses 

translated into an unemployment rate of more than 16 percent in 1988. However, the Lafayette 

 

1 Source: U.S. Department of Commerce’s Regional Economic Information System of the 

Bureau of Economic Analysis. 
133

area was not the hardest hit by the oil bust; unemployment rates exceeded 20 percent in some 

other coastal communities (Gramling, 1996). 

Sociology of Regional Processes. To understand how industries, public institutions, and 

communities change in response to fluctuations in the oil and gas industries, we draw upon the 

assumptions of human ecology theory. One of these assumptions is that the range and diversity 

of community industry functions are important determinants of community size, complexity and 

organization (see Frisbie and Poston, 1976; Hawley, 1986; Mencken, 1997; Murdock et al., 

1993; Nord and Luloff, 1993; Poston, 1984; Frisbie and Poston, 1978). Communities also can be 

placed along a continuum of industry structures, from less to more diverse. Generalist 

communities (those with a variety of industries) and specialist communities (those with one or 

two main industries) both have advantages and disadvantages for growth and social organization 

at the local level (Poston, 1984). 

Generalist communities are larger in size and more complex in structure. Fluctuations in 

one industry do not reverberate throughout the entire system so long as the other industries upon 

which the community depends for employment are independent of those shocks and remain 

relatively stable. As a result, generalist systems tend to be more stable over time. This 

longitudinal stability is important for local public institutions, such as schools and financing of 

local government services, because it allows administrators to plan for incremental changes in 

the supply of revenues and the demand for resources. Generalist systems can also support more 

stable population growth patterns (Frisbie and Poston, 1976, 1978; Micklin and Choldin, 1984; 

Poston, 1984). 

 Specialist communities, on the other hand, are primarily dependent upon one or two 

industries for subsistence. Communities that rely upon natural resource-based industries, such as 

coal, oil/gas, timber, or fishing, are specialist communities (Gramling and Freudenburg, 1990; 

Hawley, 1986; Rural Sociological Society Task Force, 1993). 

A second assumption of human ecology theory is that significant industry contraction 

(and expansion) will alter drastically the social organization of the community (England and 

Albrecht, 1984; Jobes, 1999; Krannich and Grieder, 1984). During industry contraction, jobs are 

lost, and an out-migration of younger population typically results (RSS, 1993). The negative 

effects of these cycles, particularly in rural America, manifest in social disorganization, higher 

crime rates and other social problems (Freudenburg and Jones, 1991; Jobes, 1999). 

Third, the human ecological approach assumes that local communities are ecosystems 

comprised of four basic and interdependent components: population, organization, environment, 

and technology (Hawley, 1986; Poston, 1984; Micklin and Choldin, 1984). This approach 

further assumes that changes in one of these four components will create changes throughout the 

community. For example, changes in the external environment (e.g., oil prices dropping 

significantly) will affect changes in the other components of the community (jobs and 

population) that rely upon the oil and gas industry for employment (Gramling, 1996). 

Additionally, changes in the technology used in the production of sustenance (e.g., 

mechanization of coal extraction) will affect the population and organization of the ecosystem 

(loss of jobs and out-migration), independent of any changes in the external environment. Not 

surprisingly then, economies that were most involved in the exploration and production of oil 

and natural gas in the Gulf of Mexico region were also most affected by changes in the oil and 

gas industry. Those communities that are more concentrated in multiplier industries will also be 

affected, but not as directly.
134

In order to establish when, or if, unexpected changes in employment occurred in the 

Louisiana LMAs, we performed a time-series forecasting analysis. In our analysis, we employ a 

moving average forecasting model to locate the years in which shocks occur in the Lake Charles, 

Lafayette, Lafourche, and New Orleans LMAs. The forecasting procedure includes the 

following. First, three-year moving averages (current plus previous two years) of employment 

levels are computed. Second, at each year the expected value (three-year moving average) is 

subtracted from the observed value. Each of these deviations is squared to provide the 

forecasting error for each year. These squared deviations are summed and averaged across all 

years in the analysis to compute a mean squared error (MSE). We establish a “shock” for any 

given year in which the squared deviation for that year is greater than or equal to two times the 

mean squared error for the industry sector in question (Anderson et al., 1990). 

1. Lake Charles, Louisiana: Labor Market Area 

 The greater Lake Charles LMA is located between the Houston, Texas LMA and the oil 

and gas LMAs of Louisiana (Lafayette, Lafourche, and New Orleans). The LMA also has water 

access to the Gulf of Mexico. The Lake Charles Labor Market Area (LMA) is made up of six 

Louisiana Parishes: Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis, and Vernon (Map 

7). The U.S. Census Bureau records the population of these six counties at 335,600 in 2000. 

 First Unit of Analysis: Lake Charles LMA Employment, 1940-1970. Agriculture was 

the key industry in the Lake Charles LMA in 1940, employing over 10,000 workers and 35 

percent of the workforce. Wholesale and retail trade, the second largest sector, employed 18 

percent of the labor force. Manufacturing employed 17 percent of the Lake Charles labor force 

in 1940; mining (oil and gas) employed 7 percent. 

 The data from 1950 show the decline of agriculture and the rise of manufacturing. 

Between 1940 and 1950, the Lake Charles LMA employment in agriculture declined by 3,000 

workers. The percentage of workers employed in agriculture declined from 35 percent in 1940 

to 22 percent in 1950. At the same time, employment in construction tripled from 5,000 to 

15,000 workers, and manufacturing employment more than doubled (from 5,400 to over 11,000). 

Total employment grew by 31 percent in the Lake Charles LMA during the 1940s. 

 Total employment grew by 42 percent in the Lake Charles LMA during the 1950s. 

However, while all other industries experienced growth between 1950 and 1960, agriculture’s 

share of the labor force declined to less than 10 percent. Services experienced the most growth, 

increasing by 20,000 workers between 1950 and 1960. Mining employed slightly over 6 percent 

of the total workforce in 1960, while manufacturing employed 24 percent. Although that rate 

represents a decline in this sector from 1950 (34%), the absolute number of workers in 

manufacturing was still higher in 1960 than in 1950. 
135

Map 7. Lake Charles, Louisiana Labor Market Area. 
136

 Total employment grew by 40 percent in the Lake Charles LMA between 1960 and 1970. 

Services continued as the leading employment sector in the 1960s, employing 40 percent of the 

total labor force by 1970. Construction employment doubled during the 1960s to over 11,000 

workers. Mining employment grew by 133 percent between 1960 and 1970. Moreover, over 11 

percent of the Lake Charles LMA labor force was employed in this sector by 1970. 

Lake Charles LMA Demographic Changes 1940-1970. Between 1940 and 1970 several 

important industry changes occurred in the Lake Charles LMA. First, agriculture declined in 

importance while mining and manufacturing emerged as the leading industries. Second, total 

employment in the LMA grew by 61 percent between 1940 and 1970. These employment 

changes affected population growth between 1940 and 2000. For example, 140,000 people lived 

in the Lake Charles LMA in 1940; population was over 280,000 by 1970. In Calcasieu Parish, 

the most populated county in the LMA, population nearly tripled between 1940 and 1970. The 

racial composition of the LMA also changed between 1940 and 1970 with both Caucasian and 

African-American populations significantly increasing. 

Second Unit of Analysis: Lake Charles LMA Employment, 1970-1990. The total 

employment rate in the Lake Charles LMA grew by 30 percent between 1970 and 1980. 

Wholesale/retail trade and services experienced the largest increases. Also notable, employment 

in manufacturing grew by 43 percent in that same decade. Unlike other LMAs which 

experienced growth, however, mining employment in the Lake Charles LMA declined. Mining 

employed less than 7 percent of the total workforce in 1980. 

 The Lake Charles LMA economy was mostly stagnant during the 1980s. In fact, total 

employment actually decreased by 1 percent. The mining and construction industries both 

experienced employment losses in excess of 25 percent between 1980 and 1990; the mining 

industry employed less than 4 percent of the workforce in 1990. Interestingly, manufacturing, 

and transportation/public utilities experienced no employment reduction between 1980 and 1990. 

In 1990, manufacturing employed 19 percent of the total workforce. By 1990, over 60 percent of 

the Lake Charles LMA workforce worked in either the wholesale/retail or service sector. 

However, these growth patterns deviate from the decennial models of the neighboring Lafayette 

and Lafourche LMAs: these economies experienced growth in the 1970s but declined in the 

1980s. In the Lake Charles LMA, the growth pattern occurred in the 1960s. 

 This analysis of census years also indicates some important changes between Census 

years, particularly in the 1970s and 1980s. Manufacturing grew in the 1970s; mining declined in 

the 1980s. Additionally, services were the leading employment sector in the 1980s. We turn 

now to an analysis of annual employment data for the Lake Charles LMA in order to locate a 

better understanding of what changes occurred between Census years. 

 The annual full- and part-time employment for the Lake Charles LMA figures, plus threeyear moving averages of employment levels, illustrate a steady increase in total employment 

from 1969 until 1982 (Figure 1). These data also show a drop in total employment of about 10 

percent between 1982 and 1987. However, by 1991, total employment returns to the 1982 level, 

and since 1991, employment has grown at a steady pace. 
137

 Figure 1. Total Annual Employment and Three-year Moving Averages, Lake Charles 

 LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 

 2000). 

 In order to establish when, or if, unexpected changes in employment occurred in the Lake 

Charles LMA, we performed a time-series forecasting analysis. In our analysis, we employ a 

moving average forecasting model of employment levels to locate the years that the shocks occur 

in the Lake Charles LMA. These data show the actual employment data charted with the threeyear moving average for each year (Figure 2). In Figure 2, we see that in each year between 

1977 and 1980, the observed employment number was significantly greater than the expected 

employment number. This indicates a period of greater than expected employment growth. In 

1983, we see that the observed employment is significantly less than the expected employment 

number. This finding signals a point of rapid employment decline, or fewer workers employed 

than expected. Taken all together, we see a “boom” cycle in the total employment data for the 

Lake Charles LMA beginning in 1977, and a slow but steady decline in employment from 1982 

until 1987, when employment began to increase again. 

20,000

40,000

60,000

80,000

100,000

120,000

140,000

19691970197119721973197419751976197719781979198019811982198319841985

198619871988198919901991199219931994199519961997199819992000

Total Employment 3 Yr Moving Avg
138

1971

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19751976

1977

19781979

1980

198119821983

1984

1985

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1987

19881989

1990

1991

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19941995

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199819992000

Squ. Deviation 2 X MSE

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19781979

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198119821983

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19881989

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Squ. Deviation 2 X MSE

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19781979

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198119821983

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19881989

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199819992000

Squ. Deviation 2 X MSE

1971

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19781979

1980

198119821983

1984

1985

1986

1987

19881989

1990

1991

1992

1993

19941995

1996

1997

199819992000

Squ. Deviation 2 X MSE

1972

 Figure 2. Forecasting Analysis, Lake Charles LMA: 1971-2000. 

 The above data analysis shows patterns not detected by the decennial Census analysis. 

For example, the growth and decline in total employment fit the “boom and bust” pattern found 

throughout other LMAs in the GOMR. However, the census data did not reveal a clear pattern. 

We turn now to an analysis of annual employment data in order to uncover in which industry 

sectors these boom and bust pattern are present in the Lake Charles LMA. Annual employment 

data for nine general industry categories for 1969 through 2000 are presented below (Figure 3). 

 Construction, manufacturing, and mining also showed signs of rapid growth during the 

late 1970s (Figure 3). Construction employment grew 63 percent; manufacturing grew 20 

percent; and mining employment increased 62 percent between 1977 and 1981. These industries 

also experienced the most employment loss during the 1980s. While construction and 

manufacturing recovered many of these jobs during the 1990s, the mining sector’s employment 

levels remained stagnant. 
139

 Figure 3. Employment by Major Industry Category, Lake Charles LMA: 1971-1997 

 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 The following four figures present the time-series forecasting analysis for employment in 

the Lake Charles LMA’s construction, manufacturing, mining, and transportation sectors 

(Figures 4-7). Not surprisingly, these data show a pattern similar to the total employment pattern 

presented in Figure 3; that is, mining experienced greater than expected employment declines in 

1983, 1986 and 1987, while construction’s downturn appears in 1982, 1983 and 1984. 

Employment in the manufacturing sector is slightly less volatile. There are declines in 1982 and 

1983, but sharp upturns in 1988 and 1989. Transportation employment growth is more stable. 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Agric. Mining Construc Manf Trans Wholesale Retail FIRE Services

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Agric. Mining Construc Manf Trans Wholesale Retail FIRE Services

1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 
140

1971

1972

197319741975

1976

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1980

1981

1982

1983

1984

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Sq. Deviation 2 X MSE

1972

197319741975

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1980

1981

1982

1983

1984

1985

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1987

1988

1989

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19941995

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Sq. Deviation 2 X MSE

1971

1972

197319741975

1976

1977

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1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

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Sq. Deviation 2 X MSE

1972

197319741975

1976

1977

1978

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1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

19941995

1996

1997

1998

19992000

Sq. Deviation 2 X MSE

 Figure 4. Forecasting Analysis for Mining Employment, Lake Charles LMA: 

 1971-2000. 

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

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Sq. Deviation 2 X MSE

1971

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1983

1984

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Sq. Deviation 2 X MSE

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Sq. Deviation 2 X MSE

1971

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1980

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1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Sq. Deviation 2 X MSE

 Figure 5. Forecasting Analysis for Construction Employment, Lake Charles 

 LMA: 1971-2000. 
141

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

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2000

 

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Sq. Deviation 2 X MSE

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Sq. Deviation 2 X MSE

 

 Figure 6. Forecasting Analysis for Manufacturing Employment, Lake Charles 

 LMA: 1971-2000. 

 

1971197219731974197519761977

1978

197919801981

1982

1983198419851986198719881989

1990

19911992

1993

1994199519961997199819992000

Sq. Devi ations 2 X MSE

1971197219731974197519761977

1978

197919801981

1982

1983198419851986198719881989

1990

19911992

1993

1994199519961997199819992000

Sq. Devi ations 2 X MSE

Figure 7. Forecasting Analysis for Transportation Employment, Lake Charles LMA: 

 1971-2000. 
142

Detailed Industry Code Analyses. In this next section, we present analyses of industry 

sector codes for four key industry groups: manufacturing, mining, transportation and wholesale 

trade (Table 1). We chose those categories based on a) relationship to oil and gas activities, b) 

employment levels, and c) availability of data in the years we are studying. The manufacturing 

category includes the sub-categories of fabricated structural metal products, ship and boat 

building and repair, and oil field machinery. Mining includes drilling oil and gas wells, oil and 

gas field exploration services, and oil and gas field service, N.E.C. The transportation category 

focuses exclusively on water. Wholesale trade considers only industrial machinery and 

equipment. 

Table 1 

Key Industry Groups and Sectors 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale of 

derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and supplies. 
143

The annual employment data show a “boom and bust” pattern beginning in the late 1970s 

and extending through the mid-1980s, but with an increase in employment beginning in the late 

1980s. This pattern is also present in a number of industry sectors, such as manufacturing, 

construction and mining. 

Lake Charles LMA Manufacturing. Only one of the key oil and gas related 

manufacturing sectors is present in the Lake Charles LMA: Ship and Boat Building and 

Repairing (SIC 3730). At best, this sector had a minor presence in the Lake Charles LMA, 

employing a maximum 700 workers in 1982 and declining to 200 workers by 1987 (Figure 8). 

The forecasting analysis shows that employment was significantly less than expected in 1984 

(Figure 9). 

 While we find no presence for our key industries, the data above show that 

manufacturing is an important component of the Lake Charles LMA economy. Further analyses 

of Calcasieu Parish, the largest parish in the Lake Charles LMA, show that chemicals and 

petroleum production are the key manufacturing industry sectors (Figure 10). Between 1981 and 

1986, earnings in the petroleum industry were reduced by 50 percent in the Lake Charles LMA. 

Furthermore, the rebound in manufacturing in the late 1980s was led by growth in the chemical 

and allied products industries, and not petroleum production.2

0

100

200

300

400

500

600

700

1964196519661967196819691970197119721973197419751976197719781979198019811982198319841985

 1986

1987198819891990199119921993199419951996

 Figure 8. Annual Employment for Ship and Boat Building and Repair (manufacturing), 

 Lake Charles LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

 

2

 We focused on Calcasieu Parish because of data disclosure problems with these two industries in the other 

parishes within the Lake Charles LMA (U.S. Department of Commerce, Bureau of Economic Analysis, 2000). 
144

1966

19671968

1969

1970

19711972

1973197419751976197719781979

198019811982198319841985198619871988

19891990199119921993199419951996

Sq. Devi ations 2 X MSE

1966

19671968

1969

1970

19711972

1973197419751976197719781979

198019811982198319841985198619871988

19891990199119921993199419951996

Sq. Devi ations 2 X MSE

 Figure 9. Forecasting Analysis for Ship and Boat Building and Repair (manufacturing), 

 Lake Charles LMA: 1966-1996. 

0

50,00

0

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

19

6

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Chemical and Allied Products Petroleum Products

1970

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6

Chemical and Allied Products Petroleum Products

1970

 Figure 10. Parish Earnings in Key Nondurable Goods Manufacturing Sectors, Calcasieu 

 Parish: 1969-1996. 
145

Lake Charles LMA Mining. The Drilling Oil and Gas Wells (SIC 1381) industry peaked 

in 1974 with employment levels over 1,000 workers. By 1977, employment had dropped to just 

over 200. The forecasting analysis does not show any significant growth patterns after 1980 

(Figures 11 and 12). There is no employment in Oil and Gas Field Exploration Services (SIC 

1382). 

 The Oil and Gas Field Service N.E.C. (SIC 1389) data show periods of moderate 

employment growth and decline in the 1970s and 1980s (Figures 13 and 14). The forecasting 

analysis indicates that 1979 is the beginning of a strong growth cycle that ends abruptly in 1987. 

Since 1990, about 400 workers have been employed in this industry throughout the Lake Charles 

LMA. These findings are important because mining employment patterns here do not fit the 

“boom and bust” pattern of the late 1970s and 1980s as well as they do in other LMAs. This 

suggests that mining employment in this LMA may be qualitatively different than that found in 

other regional economies. 

 

. 

 Figure 11. Drilling and Oil Gas Wells, Lake Charles LMA: 1964-1996 (U.S. Census 

 Bureau, 2000a). 

0

200

600

800

1,000

1,200

196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996
146

196619671968196919701971197219731974

1975

197619771978197919801981198219831984198519861987

198819891990199119921993

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Sq. Devi ations 2 X MSE

196619671968196919701971197219731974

1975

197619771978197919801981198219831984198519861987

198819891990199119921993

19941995

Sq. Devi ations 2 X MSE

 Figure 12. Forecasting Analysis for Drilling Oil and Gas Wells, Lake Charles LMA: 

 1966-1995. 

 Figure 13. Oil and Gas Field Services, Lake Charles LMA: 1964-1996 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

0

200

400

600

800

1,000

1,200

1,400

196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996
147

196619671968

1969197019711972

1973

19741975

1976

197719781979

1980198119821983198419851986198719881989

19901991

19921993199419951996

Sq. Deviations 2 X MSE

196619671968

1969197019711972

1973

19741975

1976

197719781979

1980198119821983198419851986198719881989

19901991

19921993199419951996

Sq. Deviations 2 X MSE

 Figure 14. Forecasting Analysis for Oil and Gas Field Services, Lake Charles LMA: 

 1966-1996. 

 Lake Charles LMA Water Transportation. The next set of figures present data on Water 

Transportation (SIC 4400) employment (Figures 15 and 16). Unfortunately, there is no category 

that directly measures offshore oil and gas-related water transportation. However, water 

transportation is not a large sector in the Lake Charles LMA. In all but three years, there were 

less than 1,000 workers employed in the entire LMA. However, since only one parish 

(Cameron) borders the Gulf of Mexico, it is reasonable to assume that employment is 

concentrated in that parish. Between 1980 and 1983, there were sharp increases in employment 

in water transportation. This growth could be related to the expansion in the oil and gas sector of 

this period. However, the geographical configuration of the LMA and the relatively low levels 

of employment in this sector suggest that any fluctuations in water transportation employment do 

not significantly impact the Lake Charles LMA. 
148

 Figure 15. Annual Employment for Water Transportation, Lake Charles LMA: 1964- 

 1996 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Sq. Devi ations 2 X MSE

1966196719681969

1970

19711972

1973

1974

197519761977

1978 

19791980

1981

19821983

1984

1985

198619871988

19891990199119921993

1994

19951996

Sq. Devi ations 2 X MSE

 Figure 16. Forecasting Analysis for Water Transportation, Lake Charles LMA: 1966- 

 1996. 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996
149

Lake Charles LMA Wholesale Trade. The Industrial Machinery and Equipment (SIC 

5084) category includes the wholesale marketing of oil well machinery. However, these data 

are available only from 1977 to 1996, which does not provide enough years for conducting a 

forecasting analysis (Figure 17). The trend line in Figure 17 shows a sector that employs fewer 

than 600 employees at any time. There was a slight growth pattern in the early 1980s, when 

employment increased from 400 to 600 workers. 

0

100

200

300

400

500

600

700

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 Figure 17. Wholesale Trade of Industrial Machinery and Equipment, Lake Charles 

 LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

 The detailed industry data show that the Lake Charles LMA is not a major direct 

participant in the oil and natural gas extraction economy. Employment patterns in the direct 

sectors are very low or nonexistent. The growth and decline patterns that are there, however, 

conform to the established patterns for the oil and gas industry in other GOMR LMAs. For the 

last 30 years the business cycle patterns in the Lake Charles LMA were driven primarily by 

manufacturing. In 1990 the LMA was still heavily concentrated in manufacturing employment, 

particularly non-durable goods manufacturing. The two major manufacturing types in the LMA 

are petroleum and coal products, and allied chemicals. Since the 1980s, earnings in the 

petroleum sector have been relatively flat, while earnings in the allied chemicals sector have 

increased. The trends for the petroleum sector suggest that the Lake Charles LMA is integrated 

into the global oil and gas economy primarily (but not exclusively) as a “downstream” industry, 

refining and transforming the extracted product. 

Lake Charles LMA Population, Education, and Local Government: 1970-1990. In this 

section we examine how industry changes affected population, education, and local government 

issues between 1970 and 1990 in the Lake Charles LMA. The following tables present 

population data for the Lake Charles LMA (Tables 2-4). 
150

Population. The population of the Lake Charles LMA increased 11.6 percent between 

1970 and 1980. This growth rate nearly mirrors the national growth rate of 11.4 percent for the 

same period. Between 1980 and 1990, the population in Lake Charles LMA grew by 2.6 

percent, a rate significantly lower than the national growth rate. Three parishes in this LMA 

experienced negative population growth: Allen, Cameron, and Jefferson Davis. The population 

loss findings are important because of the perceived effect of the oil and gas bust on outmigration in Louisiana. However, the industry data show very minimal oil and gas mining 

effects in this LMA. Thus, we conclude that not all out-migration from Louisiana parishes 

during the 1980s was attributable to direct changes in the oil and gas industry. 

Despite assertions that an African-American out-migration was the norm among LMAs 

involved in oil and gas extraction activities, there is no evidence of this occurring in the Lake 

Charles LMA. In fact, the African-American population increased 26 percent between 1970 and 

1990. This high growth rate, which is significantly greater than would be expected via natural 

replacement, indicates that in-migration into the LMA occurred during this time. 

Table 2 

 Population by Parish, Lake Charles LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Allen 17,540 18,835 19,867 20,794 21,390 21,226 25,440 

Beauregard 14,847 17,766 19,191 22,888 29,692 30,083 32,986 

Calcasieu 56,506 89,635 145,475 145,415 167,223 168,134 183,577 

Cameron 7,203 6,244 6,909 8,194 9,336 9,260 9,991 

Jeff. Davis 24,191 26,298 29,825 29,554 32,168 30,722 31,435 

Vernon 19,142 18,974 18,301 53,794 53,475 61,961 52,531 

LMA Total 139,429 177,752 239,568 280,639 313,284 321,386 335,960 

 Source: U.S. Census Bureau, 2000b. 

Table 3 

 Percent of White Population, Lake Charles LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Allen 74.0 75.8 75.2 75.3 78.1 75.9 71.9 

Beauregard 82.4 82.9 77.5 81.2 83.5 84.0 84.2 

Calcasieu 73.5 77.0 79.1 78.2 77.5 76.3 73.6 

Cameron 90.7 90.6 93.6 93.3 93.7 93.8 93.6 

Jeff. Davis 71.0 78.3 78.7 79.5 80.5 81.0 80.6 

Vernon 87.3 88.3 86.6 89.0 77.2 73.8 73.7 

LMA % 77.5 79.4 79.6 80.9 78.8 77.5 75.7 

LMA Total 108,195 141,099 190,739 227,128 247,121 249,067 254,599 

 Source: U.S. Census Bureau, 2000b. 
151

Table 4 

 Percent of Black Population, Lake Charles LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Allen 25.2 23.2 23.9 23.8 20.5 21.6 24.6 

Beauregard 17.4 17.0 22.3 18.6 16.0 14.6 12.9 

Calcasieu 26.4 22.9 20.8 21.6 21.7 22.9 24.0 

Cameron 9.3 9.3 6.3 6.5 5.6 5.2 3.9 

Jeff. Davis 24.8 21.6 21.1 20.4 19.0 18.8 17.8 

Vernon 12.6 11.6 13.2 10.3 18.2 20.7 17.1 

LMA % 22.2 20.5 20.0 18.8 19.7 20.7 20.6 

LMA Total 31,071 36,441 48,454 52,791 61,915 66,596 69,486 

 Source: U.S. Census Bureau, 2000b. 

Education. In 1970, 56 percent of the adults in Lake Charles LMA did not possess a 

high school diploma (or equivalency). However, by 1990, that percentage had fallen to 31 

percent. Nevertheless, the percentage of college graduates within this LMA did not increase 

significantly during that period. In 1970, only 8 percent of adults held a four-year college 

degree; by 1990, this had increased to 11 percent (Table 5). These data are consistent with a 

primarily manufacturing-based economy; many jobs within this sector require a high school 

diploma for employment. In 1990 over 19 percent of the Lake Charles LMA workforce was 

employed in manufacturing. 

Table 5 

 Adult Educational Attainment (age 25+), Lake Charles LMA: 1970-2000 

Parish 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

Total 

1970 

Allen 49.6% 21.2% 20.9% 4.5% 3.5% 10,640 

Beauregard 35.9% 19.8% 29.8% 7.1% 7.3% 11,742 

Calcasieu 34.8% 16.9% 29.7% 9.5% 9.0% 71,438 

Cameron 47.0% 20.6% 24.9% 3.7% 3.8% 4,103 

Jeff. Davis 49.1% 15.4% 24.1% 5.3% 5.9% 14,682 

Vernon 29.8% 21.6% 33.7% 6.4% 8.3% 16,033 

LMA Total 37.5% 18.0% 28.7% 7.8% 7.8% 128,638 
152

Table 5 

 Adult Educational Attainment (age 25+), Lake Charles LMA: 1970-2000 (continued) 

1980 

Allen 32.5% 21.9% 31.4% 6.7% 7.4% 12,010 

Beauregard 24.2% 17.7% 35.0% 11.6% 11.4% 16,162 

Calcasieu 22.9% 18.5% 31.8% 13.1% 2.0% 91,089 

Cameron 34.9% 20.6% 31.0% 6.4% 6.9% 4,916 

Jeff. Davis 34.1% 18.6% 29.2% 9.3% 8.7% 17,152 

Vernon 19.7% 17.0% 42.1% 12.6% 8.4% 23,740 

LMA Total 24.8% 18.5% 33.3% 11.8% 11.4% 165,069 

1990 

Allen 21.7% 21.1% 37.2% 13.1% 6.7% 13,262 

Beauregard 12.9% 16.4% 38.5% 19.0% 13.0% 18,301 

Calcasieu 14.2% 15.4% 34.2% 21.4% 2.3% 102,341 

Cameron 19.4% 19.4% 40.2% 13.0% 7.8% 5,584 

Jeff. Davis 21.9% 18.1% 38.1% 13.8% 7.9% 18,517 

Vernon 8.6% 14.4% 39.8% 26.6% 10.3% 30,493 

LMA Total 14.6% 16.1% 36.3% 20.4% 12.3% 188,498 

2000 

Allen 14.4% 22.3% 38.0% 15.9% 9.2% 16,817

Beauregard 9.1% 15.9% 39.5% 21.7% 13.7% 21,036

Calcasieu 8.6% 14.3% 34.6% 25.6% 16.8% 114,563

Cameron 12.9% 18.9% 42.8% 17.4% 7.9% 6,257

Jeff. Davis 13.9% 16.6% 41.1% 18.2% 9.9% 19,352

Vernon 6.0% 13.8% 36.4% 30.1% 13.5% 29,329

LMA Total 9.3% 15.4% 36.4% 24.1% 14.5% 207,354

 Source: U.S. Census Bureau, 2000b. 

Finances. The Lake Charles LMA did not grow at the same rapid rate as did some 

neighboring LMAs (Lafayette, Lafourche) during the 1970s and 1980s. This stability is reflected 

in the local government finances of the Lake Charles LMA (Tables 6-9). Except for the years 

between 1982 and 1987 when revenues fell by 3 percent per capita in real dollars, revenues 

remained very stable in real dollars. The drop in finances for 1982-1987, however, was not 

nearly as dramatic as that seen in other oil and gas LMAs in Louisiana; e.g., the 8 percent drop in 

per capita revenue in the Lafourche LMA. 

 In a given year, state revenue accounts for over one-third of all local government 

revenue. However, the state paid-out significantly less money in 1987 than it did in other years, 

and Lake Charles LMA was no exception. Between 1982 and 1987, the per capita revenue from 

the state fell by 13 percent in real dollars. Local governments in the Lake Charles LMA incurred 

more debt, but not at the same rates as other LMAs in the region. Between 1982 and 1987, local 

government debt grew by 23 percent in real dollars. Per capita debt also grew between 1987 and 

1992. But these growth rates were concentrated largely in Calcasieu Parish. Local governments 
153

in the Lake Charles LMA did not face the same debt and revenue problems crises as did 

governments in other nearby oil and gas-dependent LMAs. 

Table 6 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Lake Charles LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Allen $1,505 $1,722 $1,691 $1,623 $1,280 $1,689 

Beauregard $2,803 $2,282 $2,389 $2,049 $2,417 $2,429 

Calcasieu $1,644 $2,078 $2,154 $2,135 $2,524 $2,781 

Cameron $2,057 $3,161 $4,318 $4,062 $3,488 $3,974 

Jeff. Davis $1,213 $1,489 $1,754 $1,750 $1,743 $2,000 

Vernon $736 $1,039 $907 $946 $1,040 $1,372 

LMA Total $1,545 $1,879 $1,946 $1,888 $2,093 $2,391 

 Source: U.S. Census Bureau, 2000a. 

Table 7 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Lake Charles LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Allen $751 $894 $881 $701 $751 $799 

Beauregard $712 $738 $826 $649 $761 $706 

Calcasieu $565 $2,632 $617 $569 $693 $595 

Cameron $452 $1,242 $1,534 $1,092 $1,029 $1,219 

Jeff. Davis $647 $755 $742 $701 $849 $878 

Vernon $461 $579 $592 $501 $579 $795 

LMA Total $579 $684 $690 $601 $706 $697 

 Source: U.S. Census Bureau, 2000a. 

Table 8 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Lake Charles LMA: 

1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Allen $362 $260 $227 $231 $400 $430 

Beauregard $442 $268 $222 $398 $747 $779 

Calcasieu $674 $453 $382 $555 $887 $1,333 

Cameron $799 $581 $574 $872 $1,685 $1,935 

Jeff. Davis $377 $256 $244 $473 $598 $598 

Vernon $215 $161 $111 $124 $237 $356 

LMA Total $478 $358 $300 $438 $709 $998 

 Source: U.S. Census Bureau, 2000a. 
154

Table 9 

 Total Debt, Per Capita (in 1997 adjusted dollars), Lake Charles LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Allen $1,047 $890 $511 $857 $365 $581 

Beauregard $18,642 $9,668 $4,881 $3,363 $1,683 $1,037 

Calcasieu $4,100 $3,575 $3,734 $4,120 $5,231 $3,449 

Cameron $921 $1,034 $1,864 $2,158 $504 $180 

Jeff. Davis $927 $506 $549 $902 $536 $597 

Vernon $476 $578 $271 $595 $278 $552 

LMA Total $4,063 $3,013 $2,631 $2,791 $3,024 $2,168 

 Source: U.S. Census Bureau, 2000a. 

 Employment in the Lake Charles LMA grew by 44 percent during the 1990s. During that 

decade, 1.4 million new jobs were added––1.25 million of which were in the service sector 

alone. The LMAs population also grew during the 1990s, increasing by 25 percent (which is 

more than twice the national growth rate). However, this growth reflects a bifurcated education 

structure in Lake Charles LMA. The growth of services appears to have increased demand for 

both very low skilled workers (likely immigrant labor) and high skilled workers. 

 The Lake Charles LMA is the largest port on the Gulf of Mexico. It possesses one of the 

largest and most economically diverse economies in the nation. Despite the fact that over half of 

all oil and gas related workers during the 1970s and 1980s were employed in the Lake Charles 

LMA, the economy, when viewed as an integrated system of counties linked by commuting 

patterns, did not suffer any net population or employment loss during the crash of the 1980s. 

This is not to insinuate that jobs were not lost. Between 1980 and 1990, 50,000 mining, 

manufacturing, and construction jobs were lost in Lake Charles LMA. Nonetheless, the region 

remains the heart of the oil and gas industry. In 2000, over 40,000 people were still employed in 

oil and gas exploration and production, either in the corporate offices or out in the field. Yet, 

this industry captured only 1.4 percent of the total labor force in 2000, compared to nearly 5 

percent in 1980. 

2. Lafayette, Louisiana: Labor Market Area 

The Lafayette Labor Market Area (LMA) is made up of seven Louisiana parishes: 

Acadia, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, and Vermilion (Map 8). According 

to the U.S. Census Bureau, the population of these seven parishes was 548,154 in 2000 (2000b). 

First Unit of Analysis: Lafayette LMA Employment, 1940-1970. The changes in 

industry are summarized for each decade. Agriculture was the dominant industry, employing 

almost 45,000 workers –over 60 percent of the workforce– in 1940. Wholesale and retail trade, 

the second largest sector, employed 13 percent of all workers. The mining industry (including 

oil and gas workers) employed only 3 percent of the labor force in 1940. 
155

Map 8. Lafayette, Louisiana Labor Market Area.
156

 Agriculture began to diminish in 1950. Between 1940 and 1950, agriculture lost more 

than 10,000 workers, reflecting a loss of more than 20 percent of the Lafayette LMA labor force. 

In contrast, mining and construction both grew by large percentages. Between 1940 and 1950, 

employment in mining doubled to over 4,000 workers; construction gained 6,000 workers. Total 

employment grew by 10 percent in the Lafayette LMA in that period. 

 Between 1950 and 1960, agriculture’s share of the total labor force declined to less than 

20 percent. By 1960, both wholesale/retail trade and services were employing more workers 

than agriculture. All other industries experienced employment growth as well. Services 

experienced the greatest amount of growth, increasing by 111 percent between 1950 and 1960. 

Mining and manufacturing both employed slightly over 7 percent of the total workforce in 1960. 

For manufacturing this represents a slight decline in the percentage of workers employed in that 

industry, but the raw number of workers in manufacturing was larger in 1960 than in 1950. 

Total employment grew by 26 percent in the Lafayette LMA during the 1950s. 

Agriculture employed less than 10 percent of the total workforce by 1970. Between 

1940 and 1970 almost 35,000 jobs were lost in the agriculture sector. Services continued as the 

leading employment sector in the 1960s, employing 35 percent of the total labor force by 1970. 

Mining employment grew substantially during the 1960s, experiencing a 46 percent growth rate. 

Moreover, by 1970, almost 10 percent of the Lafayette LMA labor force was employed in this 

sector. Total employment grew by 12 percent in the Lafayette LMA between 1960 and 1970. 

Also significant is that the Lafayette LMA economy did not depend on its natural resource base 

for employment in 1970. The following figure shows general industry trends from 1940-2000 

(Figure 1). 

 

 Figure 1. Major Industry Employment, Lafayette LMA: 1940-2000 (U.S. Census Bureau, 

 2000b). 

0

20,000

40,000

60,000

80,000

100,000

120,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Construction Manufacturing Trans.Pub. Util. Wholesale/Retail Services
157

However, the Lafayette LMA experienced economic stagnation in during the 1980s, 

when total employment grew less than 0.5 percent. The mining and construction industries both 

experienced employment losses in excess of 25 percent between 1980 and 1990; the mining 

industry employed less than 10 percent of the workforce in 1990. 

Lafayette LMA Demographic Changes 1940-1970. Total employment in the Lafayette 

LMA grew by 58 percent between 1940 and 1970. These employment changes affected 

population growth. In 1940, 293,506 people lived in the Lafayette LMA. By 1970, the 

population exceeded 400,000. Lafayette Parish experienced the most population growth in the 

Lafayette LMA, increasing by more than 250 percent between 1940 and 1970. 

 The ethnic/racial composition of the Lafayette LMA also changed somewhat between 

1940 and 1970. African-Americans living in Lafayette declined from 31 percent to 26 percent, 

while Caucasian residency increased from 69 to 73 percent. 

Second Unit of Analysis: Lafayette LMA Employment, 1970-1990. The oil and gas 

industries underwent both rapid expansion and swift contraction during the 1970s and 1980s. An 

examination of oil and gas prices underscores this claim. In constant dollars, crude oil prices 

spiked in the 1970s, but precipitously declined in 1986. The Lafayette LMA was one of the 

major economies in the oil and gas exploration and production industries at that time (Gramling, 

1995). Human ecology theory predicts that the price changes documented in Figure 1 should 

affect the oil and gas economies of the Gulf of Mexico region. We examine these potential 

relationships by first assessing the changes in broad industry sectors for the Lafayette LMA. 

 The Lafayette LMA economy underwent rapid growth between 1970 and 1980 when 

total employment grew by 57 percent (Figure 1). Employment in both mining and 

manufacturing doubled between 1970 and 1980; at the same time, employment in services 

increased by 63 percent and construction employment increased by 54 percent. In 1980 over 12 

percent of the workforce was employed in mining, and over 10 percent in manufacturing. This 

finding is significant it indicates that the entire seven parish Lafayette LMA was miningdependent in 1980. Atypically, natural resource dependency does not typically apply to such 

large geographical units. The greater Lafayette area economy benefited from changes in the oil 

and gas industry, experiencing considerable growth in all its industries during the 1970s. 

 Transportation and public utilities lost 13 percent of its employees during that same 

decade. While the service sector experienced a growth rate of 16 percent between 1980 and 

1990, this growth rate was significantly lower than in the previous decade (63%). By 1990, the 

wholesale/retail and service sectors employed over 60 percent of the Lafayette LMA workforce. 

These Census data show an economy that has transformed over time from being dependent on 

agriculture, mining, to one that was service-oriented. 

 The data for 1980 and 1990 paint two different pictures of the Lafayette LMA 

economy—one that was fast growing, and dependent on its natural resources, and one that was 

more dependent on services. However, decennial Census data are not always capable of 

documenting important short-term trends, such as rapid declines or growth spurts in 

employment, in a given industry. 

 In order to establish when, or if, unexpected changes in employment occurred in the 

Lafayette LMA, we performed a time-series forecasting analysis. In our analysis, we employ a 

moving average forecasting model to locate the years that the shocks occur in the Lafayette 

LMA. The annual employment data and three-year employment moving averages for the 

Lafayette LMA are presented below (Figure 2). These data show a steady increase in total 

employment from 1969 until 1982. These data also show a steady and rapid decline in full- and 
158

part-time employment between 1982 and 1987. Since 1987, employment has increased in the 

Lafayette LMA, and by 1996, these employment levels had surpassed their previous high mark 

set in 1982. 

0

50,000

100,000

150,000

200,000

250,000

300,000

1971

1972

19731974

19751976 1977

1978

197919801981

1982

19831984

1985

19861987

1988

19891990

1991

1992

1993

19941995

1996

0

50,000

100,000

150,000

200,000

250,000

300,000

1971

1972

19731974

19751976 1977

1978

197919801981

1982

19831984

1985

19861987

1988

19891990

1991

1992

1993

19941995

1996

1997

1998

19992000

Employment 3 Yr. Moving Avg. 

 Figure 2. Annual Employment and Three-year Moving Averages, Lafayette LMA: 

 1971-2000 (U.S. Department of Commerce, Bureau of Economic Analysis, 

 2000). 

 Figure 3 documents forecasting errors, which occur when the observed employment 

number in a given year substantially exceeds the expected employment number in that year 

(based on a three-year moving average of employment levels). In this case, forecasting errors 

occur in 1977, 1981, and again in 1986 and 1987 (Figure 3). Referring back to Figure 2, we see 

that in each year between 1977 and 1982, the observed employment number was greater than the 

expected employment number. This indicates a four-year period of employment growth 

accented by significantly greater rates of growth at the beginning (1977) and at the end (1981). 

In 1986 and 1987, we see that the observed employment number for each year is significantly 

less than the expected employment number for those respective years. This finding signals a 

period of rapid employment decline, or fewer workers employed than expected. Taken together, 

the total employment data for the Lafayette LMA charts a “boom and bust” trend in beginning in 

1977 and ending about 1988. 
159

19711972197319741975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

198719881989

1990

1991

199219931994

1995

19961997199819992000

Forecasting Errors 2X MSE

19711972197319741975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

198719881989

1990

1991

199219931994

1995

19961997199819992000

Forecasting Errors 2X MSE

 Figure 3. Forecasting Analysis, Lafayette LMA: 1971-2000. 

 Next, we examine annual employment data to uncover in which of industry sectors these 

“boom and bust” cycles are present in the Lafayette LMA. The following figure shows annual 

employment data for nine general industry categories between 1969 and 2000 (Figure 4). 

Examining this data, we see that the mining sector experienced the greatest downturn in total 

employment between 1982 and 1988, decreasing by 42 percent, or an estimated 14,000 jobs. 

0

10000

20000

30000

40000

50000

60000

70000

80000

19691971

19731975197719791981

1983

19851987

1989

1991

1993199519971999

Agric. Manuf. Ret. Trade

Mining Trans./Pub. Util. FIRE

Constr. Wh. Trade Services

 Figure 4. Employment by Industry Sector, Lafayette LMA: 1969-1999 (U.S. Dept. 

 of Commerce, Bureau of Economic Analysis, 2000). 
160

 The percentage change in full- and part-time employment in each sector between 1977 

and 1982 is illustrated below (Figure 5). Mining employment grew at the fastest rate during that 

period (83%) and is the category of employment largely responsible for the rapid growth or 

“boom period” documented in the forecasting analysis. 

0

10

20

30

40

50

60

70

80

90

Agric. Mining Constr. Manufact. Trans. &

Util.

Whole.

Trade

Ret. Trade FIRE Services

 Figure 5. Employment Growth and Percent Change by Industry Sector, Lafayette LMA: 

 1977-1982, Inclusive (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 

 Figure 6 shows the percentage change in full-time and part-time employment in each 

industry sector during the years of 1982-1988, inclusive. The data show employment declines in 

all industries, with the exception of services. The most dramatic declines are in mining and 

construction. The mining sector lost the greatest number of jobs, while the construction sector 

lost the highest percentage of jobs (Figure 6). 
161

0

10

20

30

40

50

60

Agric. Mining Constr. Manufact. Trans. &

Util.

Whole.

Trade

Ret. Trade FIRE Services

 Figure 6. Employment Growth and Percent Change by Industry Sector, Lafayette LMA: 

 1982-1988, Inclusive (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 

These data indicate that further analyses of mining employment trends are warranted. 

We next present the time-series forecasting analysis for mining employment in the Lafayette 

LMA (Figures 7 and 8). Not surprisingly, these data show a pattern similar to the total 

employment pattern presented above. There was strong employment growth in mining from 

1978 through 1981, particularly in 1980 and 1981. This growth was followed by sharp drop-offs 

that were particularly severe in 1986 and 1987, when employment in this sector fell to a 10-year 

low. 

 While mining employment is clearly linked to these “boom and bust” growth cycles, 

other industry sectors are also implicated. The manufacturing employment data indicate higher 

than expected levels of manufacturing employment in 1977 and 1981 (Figures 9 and 10). In 

1983, however, there is a lower than expected manufacturing employment in the Lafayette LMA. 

Nevertheless, in the late 1980s and early 1990s, manufacturing employment begins to increase. 

Between 1989 and 1991, manufacturing employment is higher than expected in the Lafayette 

LMA. Furthermore, manufacturing employment peaks in 1997 at almost 28,000 workers. 

However, by 2000, this number declines to less than 23,000. 

 If manufacturing in the Lafayette LMA is unconnected to the oil and gas industry during 

this period, then there is no reasonable expectation that these “boom and bust” periods will 

appear in manufacturing employment trends. Yet, the presence of these trends suggests that 

many of the manufacturing activities in the Lafayette LMA were directly connected to the oil 

and gas industry. In addition to manufacturing, analyses of other industry sectors show patterns 

consistent with the boom and bust periods, in particular transportation/public utilities, 

construction, and wholesale trade. 
162

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

19711972

19731974

19751976

1977 

19781979

1980198119821983

1984

1985

19861987198819891990

19911992

1993199419951996

1997

199819992000

Employment 3 Yr. Moving Avg. 

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

19711972

19731974

19751976

1977 

19781979

1980198119821983

1984

1985

19861987198819891990

19911992

1993199419951996

1997

199819992000

Employment 3 Yr. Moving Avg. 

 Figure 7. Employment Trends for Mining Employment, Lafayette LMA: 1971-2000 

 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

Figure 8. Forecasting Analysis for Mining Employment, Lafayette LMA: 1971-2000. 

 

1971197219751976197819791981198219831985198619871988198919901991199219931994199519961997199819992000

Forecasting Error 2 X MSE
163

0

5,000

10,000

15,000

20,000

25,000

30,000

197119731975

197719791981

198319851987198919911993

199519971999

Employment 3 Yr. Moving avg. 

0

5,000

10,000

15,000

20,000

25,000

30,000

197119731975

197719791981

198319851987198919911993

199519971999

Employment 3 Yr. Moving avg. 

 Figure 9. Employment Trends in Manufacturing Employment, Lafayette LMA: 1971- 

 1999 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 

 

19711972197319741975

1976

19771978

1979

1980

1981

19821983198419851986

19871988

1989

1990199119921993

1994

1995

1996

1997

199819992000

19711972197319741975

1976

19771978

1979

1980

1981

19821983198419851986

19871988

1989

1990199119921993

1994

1995

1996

1997

199819992000

Forecasting Errors 2 X MSE

19711972197319741975

1976

19771978

1979

1980

1981

19821983198419851986

19871988

1989

1990199119921993

1994

1995

1996

1997

199819992000

19711972197319741975

1976

19771978

1979

1980

1981

19821983198419851986

19871988

1989

1990199119921993

1994

1995

1996

1997

199819992000

Forecasting Errors 2 X MSE

 Figure 10. Forecasting Analysis for Manufacturing Employment, Lafayette LMA: 

 1971-2000. 
164

The above data show a “boom and bust” period beginning in the late 1970s and extending 

through the later 1980s. The analysis of annual full- and part-time employment data by 1-digit 

industry codes indicate that these “boom and bust” periods are led by employment changes in the 

mining sector. However, further analyses show that a number of other industry sectors, such as 

manufacturing, transportation and public utilities, and wholesale trade, also experience a “boom 

and bust.” An analysis of detailed industry codes within each of these categories may identify a 

link between these sectors (mining, manufacturing, wholesale trade, transportation/public 

utilities), changes in employment, and the oil and gas-related “boom and bust” periods. 

Detailed Industry Code Analyses. In this next section, we present analyses of industry 

sector codes for four key industry groups: manufacturing, mining, transportation and wholesale 

trade (Table 1). We chose those categories based on several factors: a) relationship to oil and 

gas activities, b) employment levels, and c) availability of data for the years we are studying. 

The manufacturing category includes the sub-categories of fabricated structural metal products, 

ship and boat building and repair, and oil field machinery. Mining includes drilling oil and gas 

wells, oil and gas field exploration services, and oil and gas field service, N.E.C. The 

transportation category focuses exclusively on water. The wholesale trade group considers only 

industrial machinery and equipment. The eight detailed categories listed below are either directly 

or indirectly related to offshore and on-shore oil and gas activities. 

 Figure 11 displays the trends in Fabricated Structural Metal Products (SIC 3440) 

employment. This data depicts a pattern that is somewhat consistent with the “boom and bust” 

cycle of the 1970s and 1980s. For example, employment in this industry peaked at 

approximately 1,200 workers in 1981. In 1988, employment reached a post-1980 low of less 

than 400 workers. The 1990s witnessed a slight rebound in this industry, with employment 

levels reaching levels very close to those in 1981. The forecast analysis shows that in 1979, 

more employment was observed in this industry than was expected based on previous trends. In 

1983 and 1984, however, employment in this industry was significantly lower than was 

expected, based on the forecasting analysis. These trends show growth in this industry 

throughout the 1970s, culminating in 1981. Shortly after there were significant drops in 

employment that correspond to drops in employment in other industry sectors. 
165

Table 1 

Key Industry Groups and Sub-Categories 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale of 

derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and supplies. 

 

 
166

 Figure 11. Annual Employment in Fabricated Structural Metal Products, Lafayette 

 LMA: 1966-1996 (U.S. Census Bureau, 2000a). 

 Figures 12 and 13 present employment data on Oil Field Machinery (SIC 3533) 

manufacturing. These data show a pattern very similar to the pattern for Fabricated Structural 

Metal Products (SIC 3440). Employment growth begins in the early 1970s and extends until 

1982, when almost 3,000 workers were employed in this industry in the Lafayette LMA. 

Following this, employment declines through the later 1980s, grows during the early 1990s, but 

falls to 1989 levels by 1993. The forecasting analysis in Figure 13 documents four important 

cycles between 1981 and 1984. In 1981 and 1982, there were significantly more workers 

employed in Oil Field Machinery (SIC 3533) production than expected. However, in 1983 and 

1984, there were significantly fewer workers in this industry than expected, based on the 

forecasting model. During this boom and bust cycle we see sharp increases in oil field 

equipment manufacturing, followed by sharp declines. 

0

200

400

600

800

1,000

1,200

1,400

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996
167

 

 Figure 12. Employment in Oil Machinery (manufacturing), Lafayette LMA: 1966-1996 

 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982

198319841985198619871988

19891990

19911992199319941995

1996

Forecasting Error 2 X MSE

196619671968196919701971197219731974

19751976197719781979198019811982198319841985198619871988

19891990

19911992199319941995

1996

Forecasting Error 2 X MSE

 Figure 13. Forecasting Analysis for Oil Field Machinery (manufacturing), Lafayette LMA: 

 1966-1996. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

Employment
168

 The employment data for Ship and Boat Building and Repairing (SIC 3730) show the 

same “boom and bust” pattern as the other two detailed manufacturing sectors: significant 

growth in the 1970s, peaking in the early 1980s, followed by rapid declines in the mid- to late 

1980s (Figures 14 and 15). Those three industries are also all directly or closely associated with 

oil and gas activities, including offshore activities. Thus, we conclude, downturns in these 

manufacturing industries in the 1980s are attributable directly to the downturn in the oil and gas 

industry. 

 Figure 14. Annual Employment for Ship and Boat Building and Repair, Lafayette 

 LMA: 1966-1996 (U.S. Census Bureau, 2000a). 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

Employment
169

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

19661967

1968

1969

1970

197119721973

197419751976

1977

1978

1979

1980

1981

19821983

1984

1985

1986

1987

1988

19891990

1991199219931994

1995

1996

Forecasting Error 2 X MSE

 Figure 15. Forecasting Analysis for Ship and Boat Building and Repair, Lafayette LMA: 

 1966-1996. 

Lafayette LMA Mining. The forecasting analysis for Drilling Oil and Gas Wells (SIC 

1381) (not shown here) indicates that, in 1978 and 1979, this industry employed more workers 

than expected, with greater than average employment growth. However, 1983 and 1987 

represent points of significant decline in this industry. During these two years this industry 

employed significantly fewer workers than expected under the assumptions of the forecasting 

model. The data show an industry that peaked in 1982 with employment levels over 6,000. By 

1987, employment had dropped to 1,600. Since 1987 employment in this industry has been 

rather sporadic. Furthermore, 1993 is also a year where fewer workers were employed in this 

industry than expected. 

 The Oil and Gas Field Exploration Services (SIC 1382) data show a very familiar 

pattern: rapid growth in the late 1970s and early 1980s, followed by rapid declines in 

employment throughout the 1980s (Figures 16 and 17). As with other industry sectors, this cycle 

also ends in 1987. Following 1987, employment in this industry is volatile from year-to-year, 

very similar to the pattern discovered with Drilling Oil and Gas Wells (SIC 1381). The 

forecasting analysis shows that 1981 through 1984 are the crucial years for this industry. The 

data for 1981 and 1982 show greater than expected employment levels; the data for 1983 and 

1984 show lower than expected employment levels. 
170

 Figure 16. Annual Employment for Oil and Gas Exploration Services, Lafayette 

 LMA: 1966-1996 (U.S. Census Bureau, 2000a). 

 

196719691971

19721973

1974

19751976197719781979198019811982

19831984198519861987198819891990

19921993199419951996

Forecasting Errors 2 X MSE

1966

19681970

1991

Forecasting Errors 2 X MSE

196719691971

19721973

1974

19751976197719781979198019811982

19831984198519861987198819891990

19921993199419951996

Forecasting Errors 2 X MSE

1966

19681970

1991

Forecasting Errors 2 X MSE

 Figure 17. Forecasting Analysis for Oil and Gas Exploration Field Services, 

 Lafayette LMA: 1966-1996. 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

Employment 
171

The following figures present the employment trends for the Oil and Gas Field Service 

N.E.C. (SIC 1389) (Figures 18 and 19). This industry shows patterns both similar to, and 

slightly different, from the other mining categories. The similarities are present for the “boom 

and bust” time period. By 1982, employment in this industry sector exceeded 12,000 workers. 

By 1987, however, employment in that sector decreased by more than 50 percent. The 

forecasting analysis shows several key years in the data trends: 1981, 1982, 1983, 1984 and 

1987. In 1981 and 1982, considerably more people were employed in this sector than were 

expected. In 1983 and 1984, however, significantly fewer workers were employed in this sector 

than expected based on the forecasting model. In fact, between 1982 and 1983, more than 4,000 

workers were dislocated from this industry. Between 1986 and 1987, an additional 2,000 jobs 

were lost. However, this industry made something of a comeback in the 1990s. Between 1992 

and 1996, employment in this industry grew by almost 200 percent. In 1996, over 8,000 workers 

were employed in this industry, putting the Oil and Gas Field Service N.E.C. (SIC 1389) at 75 

percent of its 1982 high employment mark. 

 Figure 18. Annual Employment for Oil and Gas Field Services, Lafayette LMA: 

 1966-1996 (U.S. Census Bureau, 2000a). 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

Employment 
172

196619671968196919701971

1972

197319741975197619771978197919801981

19821983

19841985

19861987

1988

1989

199019911992

1993

1994

19951996

Forecasting Errors 2X MSE

196619671968196919701971

1972

197319741975197619771978197919801981

19821983

19841985

19861987

1988

1989

199019911992

1993

1994

19951996

Forecasting Errors 2X MSE

 Figure 19. Forecasting Analysis for Oil and Gas Field Services, Lafayette LMA: 

 1966-1996. 

 Lafayette LMA Water Transportation. Figures 20 and 21 present data on Water 

Transportation (SIC 4400) employment. Unfortunately, there is no category that directly 

measures water transportation related to offshore oil and gas activities. Previously, we found a 

“boom and bust” trend in transportation and public utilities. We suspect that this trend is directly 

related to offshore oil and gas activities. We believe that a direct examination of water 

transportation earnings will reveal the impact of oil and gas activities. Employment in Water 

Transportation (SIC 4400) peaked in 1981 and 1982, and declined significantly after that period. 

Between 1982 1987, over half of all jobs in this industry were lost in the Lafayette LMA. Since 

1993, this industry has grown slowly. 
173

 Figure 20. Annual Employment for Water Transportation, Lafayette LMA: 1966- 

 1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982

19831984

1985

198619871988198919901991

19921993

199419951996

Forecasting Errors 2 X MSE

19661967196819691970197119721973

19741975

197619771978197919801981198219831984

1985

198619871988198919901991

19921993

199419951996

Forecasting Errors 2 X MSE

 Figure 21. Forecasting Error Analysis for Water Transportation, Lafayette LMA: 

 1966-1996. 

0

500

1,000

1,500

2,000

2,500

3,000

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

Employment 
174

Lafayette LMA Wholesale Trade. Figure 22 presents the data for Industrial Machinery 

and Equipment (SIC 5084). This industry category includes the wholesale marketing of oil well 

machinery. These data are available only from 1977 to 1996, which does not provide enough 

years for forecasting analysis. However, the trend line shows the familiar pattern of growth in 

the 1970s: an apex in the 1981, followed by subsequent decline throughout the 1980s. In 1987, 

employment in this sector reached a low-point of 1,200 workers. This trend is of interest 

because employment in this industry has increased in an almost linear fashion since 1987. In 

1996, 1,000 more workers were employed in this industry than were in 1987. There also has 

been employment growth in the wholesale marketing of industrial machinery and equipment 

(including oil well machinery) in the 1990s. 

 Figure 22. Annual Employment for Wholesale Trade of Industrial Machinery and 

 Equipment, Lafayette LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

 Lafayette LMA Population, Education, and Local Government: 1970-1990. In this 

section we examine how industry changes affected population, education and local government 

issues between 1970 and 1990. 

Population. The population of the Lafayette Labor Market Area rose 17 percent between 

1970 and 1980, increasing from 406,000 to 476,000 persons. The 17 percent growth rate for the 

entire LMA is significantly greater than for the national growth rate of 11.4 percent for the same 

period. Within the LMA, the population grew fastest in Lafayette Parish. Between 1980 and 

1990, the population of the Lafayette LMA grew by only 4 percent, a rate less than half of the 

national growth rate of 9.8 percent (Table 2). Furthermore, many parishes experienced negative 

population growth, indicating extensive out-migration, particularly in the most rural parishes (St. 

Landry, Evangeline, and Acadia). 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

19771978197919801981198219831984198519861987198819891990199119921993199419951996
175

Arguably, the data on racial composition indicate that whites were more affected than 

blacks by the growth and decline of population in the Lafayette LMA during the 1970s and 

1980s. Between 1970 and 1980, the percent of the population black declined from 26.7 percent 

to 24.9 percent. During the same time period the Caucasian population increased slightly from 

73 percent to 74.8 percent. Between 1980 and 1990, the African-American population increased 

from 24.9 to 26.1 percent, while the Caucasian population decreased to 72.7 percent (Tables 3 

and 4). These patterns indicate that the changes in Lafayette LMA industries affected white 

population growth and decline, suggesting that the job growth in the 1970s was skewed toward 

whites (Olien and Olien, 1982). 

Table 2 

Total Population by Parish, Lafayette LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Acadia 46,260 47,050 49,931 52,109 56,427 55,882 58,861 

Evangeline 30,497 31,629 31,639 31,932 33,343 33,274 35,434 

Iberia 37,183 40,059 51,657 57,397 63,752 68,297 73,266 

Lafayette 43,941 57,743 84,656 109,716 150,017 164,762 190,503 

St. Landry 71,481 78,476 81,493 80,364 84,128 80,331 87,700 

St. Martin 26,394 26,353 29,063 32,453 40,214 43,978 48,583 

Vermilion 37,750 36,929 38,855 43,071 48,458 50,055 53,807 

LMA Total 293,506 318,239 367,294 407,042 476,339 496,579 548,154 

Source: U.S. Census Bureau, 2000b. 

Table 3 

 Percent of White Population, Lafayette LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Acadia 82.0 80.8 80.3 80.0 82.3 81.2 80.1 

Evangeline 77.0 76.1 73.2 72.8 75.8 73.4 69.8 

Iberia 63.8 67.6 71.3 72.1 71.8 68.8 64.3 

Lafayette 67.9 72.7 76.0 78.0 78.7 76.0 72.3 

St. Landry 52.6 55.3 57.0 58.5 61.7 59.3 56.0 

St. Martin 63.4 63.0 62.7 65.0 66.6 65.5 65.5 

Vermilion 86.6 87.2 87.1 86.3 86.1 84.4 81.8 

LMA % 68.8 70.2 71.6 73.0 74.7 72.6 69.6 

LMA Total 202,121 223,518 262,949 297,505 356,191 360,844 381,763 

Source: U.S. Census Bureau, 2000b. 
176

Table 4 

Percent of Black Population, Lafayette LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Acadia 18.0 19.1 19.6 19.9 17.5 18.3 18.2 

Evangeline 22.9 23.8 26.8 27.0 24.0 26.0 28.3 

Iberia 30.6 32.3 28.6 27.8 27.7 29.4 30.6 

Lafayette 32.1 27.2 24.0 21.7 20.2 22.3 23.7 

St. Landry 47.3 44.6 42.9 41.3 37.9 40.2 41.9 

St. Martin 36.5 36.9 37.2 34.8 32.8 33.0 31.8 

Vermilion 13.3 12.7 12.9 13.4 13.2 13.9 14.0 

LMA % 31.1 29.7 28.3 26.8 24.6 26.1 27.0 

LMA Total 91,372 94,680 104,226 109,092 117,441 129,662 148,099 

Source: U.S. Census Bureau, 2000b. 

The population growth rates deviate from the national trends during the 1970-1980 

period. Deviation comes from two sources: natural increase and migration. Rapid growth or 

decline comes almost exclusively from migration. Net migration is a useful concept through 

which to view the equilibration of employment and population in sub-regions, and the adaptation 

of the ecosystem to changes in its external environment. One important component of the 

explanation of net migration is the expansion and contraction of employment opportunities 

within a particular area (Micklin and Choldin, 1984). More specifically, “boom and bust” 

patterns in extractive industries in non-metropolitan settings can be expected to produce rapid 

shifts in the direction of net migration because industry-specific employment fluctuations may be 

large relative to total employment in an area (Rural Sociological Society Task Force, 1993; 

Beard, 1988; Frey and Speare, 1988). Periods of rapid employment growth will attract workers 

(and possibly dependent household members) from outside the region. Periods of employment 

decline can lead to compensating out-migration flows.

Education. Educational attainment levels in the Lafayette LMA lagged behind those for 

the State of Louisiana as a whole (Table 5). In 1970, 33 percent of the adults in the Lafayette 

LMA were high school graduates, compared to 43 percent for the state. By 1980, 50 percent of 

adults in the Lafayette LMA were high school graduates, compared to 59 percent in the State of 

Louisiana. This may be due in part to the fact that many jobs in natural resource based industries 

are labor intensive and do not typically require many years of formal education (Rural 

Sociological Society Task Force, 1993). Additionally, the number of adults who attended but 

did not complete high school actually increased in the Lafayette LMA between 1970 and 1980 

(by over 9,000). In contrast, the percentage of adults without a high school education dropped 

from 50 percent in 1980 to 40 percent in 1990. Moreover, by 1990, the percent of adults without 

a high school diploma in the State of Louisiana reached 32 percent, narrowing the education gap 

between the state and the Lafayette LMA. This could be because the bust in the oil and gas 

industry led to an out-migration of people without high school diplomas, chasing labor intensive 

jobs elsewhere. 
177

Table 5 

 Adult Educational Attainment (age 25+), Lafayette LMA: 1970-2000 

Parish 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

Total 

1970 

Acadia 55.9% 15.1% 19.3% 4.7% 4.8% 26,165 

Evangeline 60.7% 15.2% 17.2% 3.4% 3.3% 16,186 

Iberia 47.8% 18.3% 22.1% 5.9% 5.7% 27,368 

Lafayette 36.5% 15.1% 23.3% 11.5% 13.5% 50,227 

St. Landry 59.1% 13.9% 17.2% 4.4% 5.2% 38,415 

St. Martin 62.6% 14.8% 15.4% 3.4% 3.6% 14,839 

Vermilion 55.7% 16.7% 18.5% 4.6% 4.3% 22,434 

LMA Total 51.3% 15.5% 19.8% 6.3% 7.0% 195,634 

1980 

Acadia 41.5% 18.3% 25.9% 6.9% 7.3% 29,922 

Evangeline 44.8% 17.9% 23.9% 6.7% 6.6% 17,948 

Iberia 32.8% 17.5% 30.3% 9.5% 9.7% 32,841 

Lafayette 22.3% 13.4% 27.4% 16.2% 20.5% 77,495 

St. Landry 43.4% 15.5% 25.1% 7.7% 8.3% 44,327 

St. Martin 44.7% 15.9% 26.4% 6.2% 6.7% 20,076 

Vermilion 37.8% 18.6% 27.3% 8.2% 8.0% 26,373 

LMA Total 34.8% 16.0% 26.8% 10.4% 11.9% 248,982 

1990 

Acadia 27.6% 18.8% 34.3% 10.6% 8.6% 32,178 

Evangeline 34.0% 16.6% 28.6% 9.1% 8.6% 19,014 

Iberia 22.9% 18.6% 37.0% 12.1% 9.2% 38,499 

Lafayette 13.5% 14.2% 29.0% 19.8% 23.3% 93,383 

St. Landry 28.6% 17.2% 33.3% 10.9% 9.9% 46,211 

St. Martin 27.4% 19.9% 34.7% 11.0% 6.8% 24,616 

Vermilion 25.1% 17.6% 36.4% 11.8% 9.0% 29,543 

LMA Total 22.6% 17.1% 32.6% 14.0% 13.6% 283,444 

2000 

Acadia 17.4% 18.1% 38.0% 17.2% 9.4% 35,573 

Evangeline 21.8% 22.7% 30.6% 15.3% 9.4% 21,511 

Iberia 15.2% 17.8% 38.5% 17.2% 11.1% 43,965 

Lafayette 8.1% 12.0% 29.0% 25.3% 25.4% 116,183 

St. Landry 20.0% 17.9% 33.2% 18.0% 10.7% 53,592 

St. Martin 19.0% 18.1% 37.8% 16.5% 8.5% 29,617 

Vermilion 15.9% 18.4% 38.0% 16.9% 10.7% 33,616 

LMA Total 14.6% 16.2% 33.6% 20.0% 15.5% 334,057 

 Source: U.S. Census Bureau, 2000b. 
178

Finances. The oil and gas industry “boom and bust” of the 1970s and 1980s had an 

important effect on the financing of local governments in the Lafayette LMA. The local 

government finance data show that total revenues for local governments increased by 46 percent 

in constant dollars between 1972 and 1982. State allocation to local governments increased by 

13 percent during the same period. In 1972, state allocations accounted for almost half of local 

government revenue in the Lafayette LMA. By 1982, state allocation accounted for only onethird of local government revenue (Tables 6-9). 

Local governments in the Lafayette LMA had to incur debt to finance the increased 

demand for services that came with economic growth during the boom of the 1970s and early 

1980s. Between 1972 and 1982, local government debt for the entire LMA increased by 63 

percent in real dollars. Between 1977 and 1982, per capita local government debt increased by 

over 200 percent in Lafayette Parish. In 1982, local government debt was over $3,000 per 

person in 1982 dollars (over $5,000 in 1997 dollars) in Lafayette Parish. 

Between 1982 and 1987, total local government revenue grew by a modest amount (12% 

in constant dollars) in the Lafayette LMA. However, state revenue actually fell during that 

period by 15 percent in constant dollars. The drop off in state revenue was recaptured through 

increased local government debt. Between 1982 and 1987, local governments in the Lafayette 

LMA accrued, on average, an increase in debt of 15 percent. The debt load was highest in 

Lafayette Parish. In 1987, the total debt per person exceeded $4,600 per person in current (1987) 

dollars. 

 The boom and bust periods in the oil and gas industry impacted a wide range of industries 

in the Lafayette LMA. In particular, the 1980s were a period of economic downturn and 

transition. In the eight categories discussed in this report, the Lafayette LMA lost over 21,500 

jobs between 1982 and 1987–– and this does not include the jobs lost in other supporting 

industries due to the “ripple” effects of economic shock. For example, downturns occurred in 

other oil and gas dependent industries, such as construction and retail trade. When people lose 

their jobs they do not build and they do not purchase as many goods and services. 

 The 1990s ushered in an era of recovery for the Lafayette LMA. During that decade, 

population growth within the Lafayette LMA exceeded 8 percent, while total employment grew 

by 16 percent. The service sector, which grew by 43 percent, supplied many new jobs within 

this LMA. However, the percentage of adults with a college degree in the Lafayette LMA 

continued to lag behind national averages. In 2000, only 15 percent of adults in the Lafayette 

LMA had a college degree, compared to 26 percent for the nation. This indicates that the service 

sector job growth that occurred during the 1990s did not contain as many positions requiring a 

college degree as did the service sector in other LMAs within the region, such as Houston. 

 While state revenues to local governments did not increase during the 1990s, the debt 

load for local governments declined between 1992 and 1997. For the entire Lafayette LMA, 

local debt decreased by 26 percent, on a per capita basis. And, also in Lafayette Parish, where 

per capita debt had reached $4,000 (in 1997 dollars) in 1992, the per capita debt load had 

decreased 33 percent by 1997. Between 1992 and 1997, total revenues for local governments 

increased by 12 percent. However, revenues from taxes and the state did not increase. This 

suggests that local economic activity was generating other sources of revenue for local 

governments, a sign that the Lafayette LMA economy was recovering from the “bust” of the 

1980s. 
179

Table 6 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Lafayette LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Acadia $199 $1,528 $1,507 $1,582 $1,297 $1,469 

Evangeline $504 $1,541 $1,592 $1,414 $2,059 $1,457 

Iberia $411 $1,777 $2,066 $1,918 $2,440 $2,166 

Lafayette $329 $1,756 $2,422 $3,452 $1,740 $2,421 

St. Landry $1,723 $1,871 $2,111 $1,864 $2,090 $2,003 

St. Martin $1,060 $1,724 $1,473 $1,494 $1,831 $1,639 

Vermilion $7,734 $1,919 $2,677 $2,429 $1,935 $2,900 

LMA Total $1,108 $1,751 $2,104 $2,358 $1,892 $2,131 

 Source: U.S. Census Bureau, 2000a. 

Table 7 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Lafayette LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Acadia $546 $704 $644 $552 $671 $716 

Evangeline $668 $808 $837 $677 $822 $841 

Iberia $621 $831 $869 $717 $863 $897 

Lafayette $611 $549 $536 $450 $578 $505 

St. Landry $751 $811 $877 $801 $984 $855 

St. Martin $595 $819 $772 $664 $692 $792 

Vermilion $604 $710 $807 $644 $716 $757 

LMA Total $634 $711 $719 $609 $732 $709 

 Source: U.S. Census Bureau, 2000a. 

Table 8 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Lafayette LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Acadia $354 $368 $366 $414 $415 $427 

Evangeline $261 $276 $269 $326 $422 $363 

Iberia $453 $464 $546 $594 $570 $624 

Lafayette $424 $462 $619 $664 $679 $668 

St. Landry $378 $310 $349 $366 $460 $417 

St. Martin $346 $314 $343 $368 $369 $408 

Vermilion $420 $459 $662 $581 $493 $653 

LMA Total $391 $398 $491 $520 $537 $552 

 Source: U.S. Census Bureau, 2000a. 
180

Table 9 

 Total Debt, Per Capita (in 1997 adjusted dollars), Lafayette LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Acadia $1,319 $1,129 $1,033 $694 $493 $538 

Evangeline $867 $482 $395 $1,227 $718 $423 

Iberia $1,210 $1,028 $1,472 $1,794 $1,398 $1,018 

Lafayette $2,170 $1,848 $5,371 $6,613 $4,325 $2,898 

St. Landry $1,540 $1,048 $699 $814 $814 $730 

St. Martin $1,518 $756 $998 $1,234 $726 $999 

Vermilion $1,442 $1,022 $1,706 $1,495 $1,036 $736 

LMA Total $,1581 $1,233 $2,468 $2,982 $2,052 $1,502 

 Source: U.S. Census Bureau, 2000a. 

 

 Discussion of the impact of the oil and gas extraction industry on southern Louisiana has 

frequently invoked a broader framework of industry “boom and bust” that is said to be common 

for extractive industries more generally. Our analysis confirms that pattern in certain respects 

for the Lafayette LMA. The data show an entire labor market area caught in a market 

contraction in a natural resource industry during the 1980s. However, the historical data for the 

Lafayette LMA suggest two important trends to keep in mind. 

 First, this cycle is unique to the time period (1978-1987). While off-shore drilling has 

occurred in the Gulf of Mexico since the 1940s, we do not find any other “boom or bust” cycles 

for oil and gas related industries in years prior to the 1970s. The expansion of the oil and gas 

industry in the LMA that was particularly associated with the move off-shore after 1947 surely 

had profound effects on the Lafayette LMA. For example, the emergence of this industry helped 

provide the LMA with a base industry to substitute for the rapidly declining agricultural sector. 

As the preceding analysis of population changes showed, the rise of the oil and gas industry did 

not (except for the 1970s) make the LMA a net in-migration area. Rather, the emergence of this 

labor market as a center of oil and gas extraction activity lessened the degree of out-migration 

experienced by other agriculturally-dependent areas of Louisiana. The growth of the 

manufacturing in the Lafayette LMA was in large measure a by-product of oil and gas extraction 

activities in the area. The area’s other principal manufacturing industry–textiles–would almost 

certainly not have offset the incidence of out-migration. 

 The second important trend is that, in terms of employment, the greater Lafayette LMA 

recovered in the 1990s from the economic downturns of the 1980s. By 1996 total employment 

levels surpassed those set at the height of the 1982 oil and gas “boom.” Furthermore, the 

wholesale trade of oil field machinery and oil field services experienced some post-bust growth. 

As in most other labor market areas, the industrial structure of the Lafayette LMA diversified 

during the 1990s. This diversification is particularly visible in the growth of service industries 

such as health care that are only indirectly related to the presence of oil and gas extraction 

activities in the region. 

 On-going restructuring in the oil and gas industry make it doubtful that employment 

levels in oil and gas related industries will return to those at the height of the oil and gas boom of 

the early 1980s. It is also doubtful that the Lafayette LMA will experience an oil and gas boom 

and bust cycle like that of the late 1970s and early 1980s. The move to deepwater oil and gas 
181

extraction industries during the post-1987 recovery has been accompanied by growing capital 

intensity in the industry and by a less volatile reaction by industry investors to short-term 

fluctuations in the market price of oil and gas. 

3. Lafourche, Louisiana: Labor Market Area 

Four Louisiana parishes comprise the Lafourche Labor Market Area (LMA): 

Assumption, Lafourche, St. Mary, and Terrebonne (Map 9). The Census Bureau estimates the 

year 2000 population of these four parishes at 271,365. 

 First Unit of Analysis: Lafourche LMA Employment, 1940-1970. Agriculture was the 

dominant industry in 1940, employing over 45 percent (14,000) of the workforce. Wholesale 

and retail trade, and manufacturing each employed over 13 percent. The mining industry, 

including oil and gas workers, employed only 6 percent (approximately 2,000) of the workforce.

 Total employment grew by 11 percent in the Lafourche LMA during the 1940s. And, 

although agriculture was still the largest employer of workers in the LMA (26%), employment in 

this sector still declined by almost 40 percent (losing 5,500 workers) between 1940 and 1950. 

Employment doubled in both mining and construction during the 1940s. These industries 

represented 11 percent and 9 percent of the total labor force, respectively. This is an important 

finding because it defines the LMA’s economy as dependent on its natural resources. In 

addition, the manufacturing sector grew by 30 percent during this period. 

Total employment in the Lafourche LMA grew by over 50 percent between 1950 and 

1960. This growth was concentrated in mining (102%), transportation/public utilities (102%), 

and services (125%). In 1960 the mining sector represented almost 15 percent of the total labor 

force. In comparison, the Lafayette LMA’s mining sector employed only 7 percent of the work 

force in 1960. Agriculture’s share of the total labor force declined to less than 13 percent by the 

beginning of this decade. 

 Employment trends in the 1970s were similar to the 1960s. Employment for the entire 

LMA grew at 30 percent. The growth rates were strongest in wholesale/retail trade and services 

(over 50% for both). However, manufacturing also grew by 35 percent, as did transportation and 

public utilities. In 1970, transportation and public utilities employment comprised over 10 

percent of the Lafourche LMA labor force. Figure 1 displays decennial employment data for 

1940-2000.
182

Map 9. Lafourche, Louisiana Labor Market Area.
183

 

 Figure 1. Major Industry Employment, Lafourche LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

 

Lafourche LMA Demographic Changes: 1940-1970. Total employment in the 

Lafourche LMA grew by 127 percent between 1940 and 1970. Population growth also increased 

(80%) during that period. Between 1940 and 1970, the LMA’s African-American population 

dropped down to 19 percent from 29 percent, while the Caucasian population increased to 80 

percent from 70 percent (U.S. Census Bureau, 2000b). 

Second Unit of Analysis: Lafourche LMA Employment, 1970-1990. The oil and gas 

industries experienced both rapid expansion and contraction during the 1970s and 1980s. An 

examination of oil and gas prices underscores this claim. In constant dollars, crude oil prices 

began to spike in the 1970s, with a significant drop-off in 1986. Oil and gas activity was 

particularly prolific within the Lafourche LMA (Gramling, 1996). Human ecology theory 

predicts that the price change should affect the oil and gas economies of the Gulf of Mexico 

region. We examine these potential relationships by first assessing the broad industry sector 

changes within the Lafourche LMA. 

 Employment grew rapidly between 1970 and 1980, increasing by 52 percent. Mining 

employment increased by 29 percent, while manufacturing, and transportation and public utilities 

both grew by over 50 percent. In 1980, mining, manufacturing, construction and the 

transportation and public utilities industry sectors each employed between 10 and 14 percent of 

the workforce. To the extent that these industries were oil and gas dependent, the entire 

Lafourche LMA was at risk of niche contraction. 

0

10,000

20,000

30,000

40,000

50,000

60,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Constr. Manuf. Tran/Pub.Util Whole/Ret. Trade Services
184

Employment within the Lafourche LMA declined during the 1980s, losing over 7,000 

jobs, or 6 percent of the workforce. The industries hit the hardest include: construction (-3,600 

jobs), mining (-2,700 jobs), manufacturing (-2,700 jobs) and transportation/public utilities 

(-1,300 jobs). These losses were offset somewhat by a net gain of almost 3,000 new service 

sector jobs; however these jobs are typically low-paying and do not contribute to the gross 

national product. Despite that downturn, almost 9,000 people remained employed in mining, 

7,000 in construction, and 12,000 in manufacturing in 1990. 

The data for 1980 and 1990 paint two different pictures of the Lafourche LMA—one of a 

fast growing ––and rapidly contracting–– oil and gas related economy, and one of an emerging 

service sector economy. We turn now to an analysis of annual employment data for the 

Lafourche LMA in order to locate a better understanding of what changes occurred between 

Census years. 

The annual full- and part-time employment data for the Lafourche LMA show a steady 

increase in total employment from 1969 until 1981 (Figure 2). During that period total 

employment grew 83 percent. These data also show a swift decline in overall employment of 30 

percent between 1982 and 1987. However, by 1996, employment levels had reached 87 percent 

of the high mark set in 1981. 

0

20,000

40,000

60,000

80,000

100, 000

120,000

140,000

196919701971

1972

197319741975

1976

1977

1978

19791980

1981

1982

1983198419851986198719881989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

0

20,000

40,000

60,000

80,000

100, 000

120,000

140,000

196919701971

1972

197319741975

1976

1977

1978

19791980

1981

1982

1983198419851986198719881989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

0

20,000

40,000

60,000

80,000

100, 000

120,000

140,000

196919701971

1972

197319741975

1976

1977

1978

19791980

1981

1982

1983198419851986198719881989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

0

20,000

40,000

60,000

80,000

100, 000

120,000

140,000

196919701971

1972

197319741975

1976

1977

1978

19791980

1981

1982

1983198419851986198719881989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

 Figure 2. Total Annual Employment, Lafourche LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 In order to establish when, or if, unexpected changes in employment occurred in the 

Lafourche LMA, we performed a time-series forecasting analysis. In this analysis, we employed 

a moving average forecasting model to locate the years that the shocks occur in the Lafourche 

LMA (Figures 3 and 4). The data in Figure 3 show the actual employment data charted with the 

three-year moving average of employment levels for each year. Figure 4 documents forecasting 
185

errors, which occur when the observed employment number in a given year substantially exceeds 

the expected employment number in that year (based on a three-year moving average). 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1971

197219731974

1975

1976

19771978

197919801981

19821983

1984

1985

1986

19871988

1989199019911992

199319941995199619971998

1999

2000

Employment 3 Yr Moving Avg. 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1971

197219731974

1975

1976

19771978

197919801981

19821983

1984

1985

1986

19871988

1989199019911992

199319941995199619971998

1999

2000

Employment 3 Yr Moving Avg. 

 Figure 3. Total Employment and Three-year Moving Average, Lafourche LMA: 

 1971-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 

 Figure 4. Forecasting Analysis for Annual Employment, Lafourche LMA: 1971-2000. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Sq. Deviations 2X MSE
186

 Total employment in the Lafourche LMA exceeded expectations in 1978. However, the 

data also show sharp declines in 1983, 1986, and 1987. In that period, observed employment 

was significantly lower than expected. Furthermore, the pattern of declines that occurred 

between 1983 and 1987 fits the general “bust” pattern in the oil and gas industry. 

 We turn now to an analysis of annual employment data in order to uncover in which 

industry sectors “boom and bust” patterns were present in the Lafourche LMA. Figure 5 shows 

annual employment data for nine general industry categories for 1969 through 2000. That data 

indicates that the mining, manufacturing, transportation/public utilities and construction sectors 

experienced the greatest employment upturns during the late 1970s and early 1980s, accounting 

for over 30,000 new jobs between 1969 and 1981. Those industry sectors also led the downturn 

in the 1980s. By 1987, these industries lost almost 30,000 jobs. The period following 1987 

shows slow and steady growth in employment. But among those four industry sectors, only 

manufacturing shows any appreciable growth during that period. The majority of new jobs were 

in the service and related trade sectors. 

 Our data indicate that four industry sectors led the boom and bust of the late 1970s and 

early 1980s. We performed forecasting analysis on these four sectors to document statistically 

those trends. These forecasts are presented below and underscore the observations noted above 

(Figures 6-8). 

 Figure 5. Major Industry Employment Patterns, Lafourche LMA: 1969-2000 

 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

196919701971197219731974

19751976

19771978197919801981198219831984198519861987198819891990199119921993

199419951996199719981999

2000

Agric. Mining Construc. Manuf. Trans/Pub. Util. Whole.Trade Retail Trade FIRE Services
187

1971

1972

1973

1974

1975

1976

1977

19781979198019811982198319841985

1986

1987

1988

1989

1990

1991

1992

199319941995199619971998

1999

2000

Sq. Devi ations 2 X MSE

 Figure 6. Forecasting Analysis for Mining Employment, Lafourche LMA: 

 1971-2000. 

 

1971

1972

1973

1974

1975

1976

1977

19781979198019811982198319841985

1986

1987

1988

1989

1990

1991

1992

199319941995199619971998

1999

2000

Sq. Devi ations 2 X MSE

 Figure 7. Forecasting Analysis for Manufacturing Employment, Lafourche LMA: 

 1971-2000. 
188

1971

1972

1973197419751976

1977

1978

1979

1980

1981

1982198319841985

1986

1987

1988

1989

1990

19911992

1993

1994

1995

1996

1997

199819992000

Sq. Devi ations 2 X MSE

 Figure 8. Forecasting Analysis for Transportation and Utilities Employment, 

 Lafourche LMA: 1971-2000. 

The forecasting analysis suggests that there were periods of rapid growth in the late 

1970s, followed by periods of rapid contraction in the early 1980s. Little unexpected change 

occurred after 1987. We now turn to an analysis of detailed industry codes within each of these 

categories to determine how these changes in major industry employment trends are directly 

linked to the oil and gas industry. 

Detailed Industry Code Analysis. In this next section, we present analyses of industry 

sector codes for four key industry groups: manufacturing, mining, transportation and wholesale 

trade (Table 1). We chose those categories based on a) relationship to oil and gas activities, b) 

employment levels, and c) availability of data in the years we are studying. The manufacturing 

category includes the sub-categories of fabricated structural metal products, ship and boat 

building and repair, and oil field machinery. Mining includes drilling oil and gas wells, oil and 

gas field exploration services, and oil and gas field service, N.E.C. The transportation category 

focuses exclusively on water. Wholesale trade considers only industrial machinery and 

equipment.
189

Table 1 

Key Industry Groups and Sub-Categories 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale of 

derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and supplies. 

 

Lafourche LMA Manufacturing. The Fabricated Structural Metal Products (SIC 3440) 

employment data show a pattern that is consistent with the “boom and bust” pattern of the 1970s 

and 1980s, with employment peaking in 1981 at over 5,000 workers (Figures 9 and 10). In 1987, 

employment reached a post-1980 low of less than 650 workers. The 1990s witnessed a slight 

rebound in this industry, with employment levels reaching levels very close to those in 1981. 

The forecast analysis shows that in 1981 and 1982 more employment was observed in this 

industry than was expected based on previous trends. From 1983 through 1987, however, 

employment in this industry was significantly lower than was expected, based on the forecasting 

analysis. 
190

0

1,000

2,000

3,000

4,000

5,000

6,000

1964

1965

1966

1967

19681969

1970

1971197219731974

1975

19761977

1978

1979

1980

19811982

1983

1984

1985

19861987

1988

1989

19901991

1992

1993

19941995

1996

 

 Figure 9. Annual Employment in Fabricated Structural Metal Products 

 (manufacturing), Lafourche LMA: 1964-1996 (U.S. Census Bureau, 

 2000a). 

 

1966196719681969197019711972

19731974197519761977

19781979198019811982198319841985198619871988

19891990199119921993

199419951996

Sq. Devi ations 2 X MSE

 Figure 10. Forecasting Analysis for Fabricated Structural Metal Products 

 (manufacturing), Lafourche LMA: 1966-1996. 

The employment data for Oil Field Machinery (SIC 3533) manufacturing show two key 

periods in this elastic industry: the early 1970s and the early 1980s (Figures 11 and 12). During 

both periods employment grew at significant growth rates. Following a sharp decline in 1974, 
191

employment resumed climbing through 1982, when another industry decline occurred. The 

second growth-decline pattern is consistent with the pattern for Fabricated Structural Metal 

Products (SIC 3440); however, the pattern for the early 1970s, with the sharp drop off in 1974, is 

not. 

0

200

400

600

800

1,000

1,200

19641965

196619671968

1969

197019711972

1973

197419751976

1977

197819791980

19811982

19831984

19851986

198719881989

1990

199119921993

1994

19951996

 Figure 11. Annual Employment in Oil Field Machinery (manufacturing), Lafourche 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

1989199019911992

1993199419951996

Sq. Devi ations 2 X MSE

 Figure 12. Forecasting Analysis for Oil Field Machinery (manufacturing), Lafourche 

 LMA: 1966-1996. 
192

Similar to the other two categories, the employment data for Ship Building and Repair

(SIC 3731) show significant growth in the 1970s that peaked in the early 1980s when this 

industry employed over 5,700 workers (Figures 13 and 14). This period is followed by a decline 

that lasted until the late 1980s, when employment levels dropped to about half of the 1981 level. 

Throughout the late 1980s and 1990s employment levels remained above 2,000 workers. 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 13. Annual Employment for Ship and Boat Building and Repair, Lafourche 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

1990199119921993

199419951996

Sq. Devi ations 2 X MSE

 

 Figure 14. Forecasting Analysis for Ship and Boat Building and Repair, Lafourche 

 LMA: 1966-1996. 
193

 Lafourche LMA Mining. The Drilling Oil and Gas Wells (SIC 1381) data show an 

industry that peaked in the early 1970s (Figures 15 and 16). Employment in this industry has 

been rather sporadic from year to year, employing little more than 1,000 people throughout the 

entire period. The forecasting analysis indicates sharp increases in employment in 1970, 1984 

and 1994, and sharp declines in 1974 and 1986. This industry is not as clearly linked to the 

oil/gas “boom and bust” patterns as other key industries. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1964

1965

1966

1967

19681969

1970

1971197219731974

1975

19761977

1978

1979

1980

19811982

1983

1984

1985

19861987

1988

1989

19901991

1992

1993

19941995

1996

 Figure 15. Annual Employment in Drilling Oil and Gas Wells, Lafourche LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986

19871988

19891990199119921993

199419951996

Sq. Devi ations 2X MSE

 

 Figure 16. Forecasting Analysis for Drilling Oil and Gas Wells, Lafourche LMA: 

 1966-1996. 
194

 The data on Oil and Gas Field Exploration Services (SIC 1382) show a temporary 

industry in the Lafourche LMA (Figure 17). In the late 1970s and early 1980s there were short 

periods of significant employment in that industry but, after 1982, employment is negligible (i.e., 

200 workers). 

0

200

400

600

800

1,000

1,200

1964

1965

1966

1967

19681969

1970

19711972

19731974

1975

19761977

1978

1979

1980

19811982

1983

1984

1985

19861987

1988

1989

19901991

1992

1993

19941995

1996

0

200

400

600

800

1,000

1,200

1964

1965

1966

1967

19681969

1970

19711972

19731974

1975

19761977

1978

1979

1980

19811982

1983

1984

1985

19861987

1988

1989

19901991

1992

1993

19941995

1996

 Figure 17. Annual Employment in Oil and Gas Field Exploration Services, Lafourche 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

 The employment data for the Oil and Gas Field Service N.E.C. (SIC 1389) industry 

show a general boom and bust pattern beginning in the mid-1970s with employment peaking in 

1982 at nearly 5,000 workers (Figures 18 and 19). By 1987, employment levels were roughly 

half of what they were in the early 1980s. The forecasting analysis shows that the years 1982 

and 1983 represent the transition point for this industry. In 1983, employment fell significantly 

short of expectations. Employment fell significantly short again in 1987. This industry did not 

disappear in the wake of the bust, however. Over 2,000 workers remained employed in this 

industry during most of the 1990s. Interestingly, in 1996, over 4,000 workers were employed in 

this industry, putting Oil and Gas Field Service N.E.C. (SIC 1389) at approximately 80 percent 

of its 1982 employment high mark in the Lafourche LMA. Furthermore, this finding is similar to 

that for the neighboring Lafayette LMA. The 1996 data indicate a potential comeback for the 

industry. 
195

0

1,000

2,000

3,000

4,000

5,000

6,000

1964

1965

1966

1967

19681969

1970

1971197219731974

1975

19761977

1978

1979

1980

19811982

1983

1984

1985

19861987

1988

1989

19901991

1992

1993

19941995

1996

 Figure 18. Annual Employment in Oil and Gas Field Services, Lafourche LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985

198619871988

19891990199119921993

199419951996

Sq. Devi ation 2 X MSE

 Figure 19. Forecasting Analysis for Oil and Gas Field Services, Lafourche LMA: 

 1966-1996. 
196

 Lafourche LMA Water Transportation. Figures 20 and 21 present data on Water 

Transportation (SIC 4400) employment. Unfortunately, there is no category that directly 

measures water transportation related to offshore oil and gas activities. However, this is a 

significant industry in the Lafourche LMA, employing almost 5,000 workers in the worst part of 

the downturn (1987). Earlier we found a “boom and bust” trend in transportation and public 

utilities. We suspect that this trend is directly related to offshore oil and gas activities. We 

believe that a direct examination of water transportation earnings will bring us closer to 

understanding the impact of oil and gas activities. The County Business Pattern data show a 

similar pattern. 

 Employment in Water Transportation (SIC 4400) peaked in 1981 and 1982, and 

declined significantly after that time period. Between 1982 and 1987, over 60 percent of all jobs 

in this industry were lost in the Lafourche LMA. The forecasting analysis bears out the boom 

and bust pattern, which began in the late 1970s (see 1978 in the forecasting figure) and ended in 

the late 1980s (1987). 

0

2,000

4,00

6,000

8,000

10,000

12,000

14,000

1964

196519661967196819691970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

198419851986198719881989

1990

1991

1992

1993

1994

1995

1996

 Figure 20. Annual Employment for Water Transportation, Lafourche LMA: 1964- 

 1996 (U.S. Census Bureau, 2000a). 
197

1966

1967

1968

196919701971

1972

1973

19741975

197619771978

19791980

1981

1982

1983

1984

1985

1986

1987

19881989

19901991

199219931994

19951996

Sq. Deviations 

1966

1967

1968

196919701971

1972

1973

19741975

197619771978

19791980

1981

1982

1983

1984

1985

1986

1987

19881989

19901991

199219931994

19951996

Sq. Deviations 2 X MSE

1966

1967

1968

196919701971

1972

1973

19741975

197619771978

19791980

1981

1982

1983

1984

1985

1986

1987

19881989

19901991

199219931994

19951996

Sq. Deviations 

1966

1967

1968

196919701971

1972

1973

19741975

197619771978

19791980

1981

1982

1983

1984

1985

1986

1987

19881989

19901991

199219931994

19951996

Sq. Deviations 2 X MSE

 Figure 21. Forecasting Analysis for Water Transportation, Lafourche LMA: 1966- 

 1996. 

Lafourche LMA Wholesale Trade. The data for Industrial Machinery and Equipment

(SIC 5084) are presented below (Figure 22). This industry category includes the wholesale 

marketing of oil well machinery. 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 Figure 22. Annual Employment for Wholesale Trade of Industrial Machinery and 

 Equipment, Lafourche LMA: 1977-1996 (U.S. Census Bureau, 2000a). 
198

 Because these data are available only from 1977 to 1996, there are not enough years 

to conduct a forecasting analysis. However, the trend line shows the familiar pattern of growth 

in the 1970s, an apex in 1981, and decline throughout the rest of the 1980s. Employment in this 

sector reached a low point in 1987 at 600 workers. Interestingly, while employment in this 

industry has increased in an almost linear fashion in the Lafayette LMA since 1987, we fail to 

document such a trend in the Lafourche LMA. 

 Summary of Industry Impact Analysis. The analysis of changes in detailed industry 

show the impact of the “boom and bust” periods in the oil and gas industry across a wide range 

of industries in the Lafourche LMA. In these eight categories alone, over 19,000 jobs were lost 

between 1982 and 1987 in the Lafourche LMA. These data do not include the “ripple” effects of 

economic shocks throughout the rest of the economy. The data presented in the analysis of 

annual industry changes in broad single-digit SIC industries show downturns in other industries 

that were dependent upon the boom generated in the oil and gas activities, such as construction 

and retail trade. When people lose their jobs, they do not build and they do not purchase as 

many goods and services. 

 Discussion of the impact of the oil and gas extraction industry on southern Louisiana has 

frequently invoked a broader framework of industry boom and bust that is said to be common to 

extractive industries more generally. Our analysis confirms that pattern in some respects for the 

Lafourche LMA. The data show an entire labor market area caught in a market contraction in a 

natural resource industry during the 1980s. 

 However, the historical data for the Lafourche LMA suggest two important trends. First, 

this pattern is unique to the period (1978-1987). While off-shore drilling has been present in the 

Gulf of Mexico since the 1940s, we do not find any other boom or bust patterns for oil and gas 

related industries in years prior to the 1970s. The expansion of the oil and gas industry, 

particularly following its move off-shore after 1947, surely had profound effects on the 

Lafourche LMA. In particular, the emergence of this industry to some extent helped to provide 

the LMA with a base industry to substitute for the rapidly agricultural sector. As the preceding 

analysis of population changes showed, the rise of this industry did not (except for the 1970s) 

make the LMA a net in-migration area. Rather the emergence of this labor market as a center of 

oil and gas extraction activity lessened the degree of decline that was experienced by other areas 

of Louisiana that were historically dependent on agriculture. 

 The second important trend to recognize is that, despite the hard economic times of the 

1980s, the greater Lafourche LMA has recovered, at least in terms of employment, during the 

subsequent decade. The Lafourche LMA added over 20,000 jobs during the 1990s, but these 

jobs were mostly in the lower-paying service sector. The LMA did not add high-end service 

sector jobs (those requiring a college education) in significant numbers, as reflected in the 

education data that show only 11 percent of adults in the LMA with a college degree in 2000 

(compared to 26% nationally). 

Although almost 10,000 workers were still employed in mining and oil and gas industries 

in 2000, the on-going restructuring in the oil and gas industry make it doubtful that employment 

levels in oil and gas related industries will return to those at the height of the oil and gas boom of 

the early 1980s. It is also doubtful that the Lafourche LMA will experience an oil and gas 

“boom and bust” pattern like that experienced in the late 1970s and early 1980s. The move to 

deepwater oil and gas extraction industries during the post-1987 recovery has been accompanied 

by growing capital intensity in the industry and also by a lesser degree of responsiveness of 

industry investments to short-term fluctuations in the market price of oil and gas. 
199

Third Unit of Analysis: Lafourche LMA Population, Education, and Local 

Government, 1970-1990. In this section we examine how industry changes affected population 

growth, educational attainment, and local government revenues between 1970 and 1990. 

Between 1970 and 1980, the population of the Lafourche Labor Market Area increased by 17 

percent, from 225,396 to 263,213 (Tables 2-4). 

Population. The population growth rate for the Lafourche LMA is significantly greater 

than the national growth rate of approximately 11 percent for the same period. Between 1980 

and 1990, however, the population of the Lafourche LMA grew by only 0.2 percent, a rate that is 

substantially less than the national growth rate of 10 percent. Furthermore, one parish, St. Mary, 

experienced negative population growth, indicating extensive out-migration of approximately 

6,000 white residents. Based on previous analyses, these are most likely oil and gas workers 

seeking other job opportunities. 

The Lafourche LMA population grew modestly (3%) between 1990 and 2000 from 

263,681 to 271,365. This growth rate is significantly lower than the national rate of 10 percent 

for the same time period. All parishes within the LMA showed some amount of increase in 

population, except for St. Mary Parish which experienced negative population growth, indicating 

continued out-migration of nearly 4,000 Caucasian residents and 1,000 African-American 

residents. 

 

Table 2 

 Population by Parish, Lafourche LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Assumption 18,541 17,278 17,991 19,654 22,084 22,753 23,388 

Lafourche 38,615 42,209 55,381 68,941 82,483 85,860 89,974 

St. Mary 31,458 35,848 48,833 60,752 64,253 58,086 53,500 

Terrebonne 35,880 43,328 60,771 76,049 94,393 96,082 104,503 

LMA Total 124,494 138,663 182,976 225,396 263,213 263,681 271,365 

Source: U.S. Census Bureau, 2000b. 

 Between 1970 and 1980, the African-American population declined from 19.3 percent to 

18.7 percent – a trend consistent with most southern labor markets. During the same period, the 

Caucasian population decreased only slightly from 79.6 percent to 79 percent. Between 1980 

and 1990, the African-American population increased from 18.7 percent to 19.7 percent, while 

the Caucasian population decreased from 79 percent to 76.3 percent. The African-American 

population also increased between 1990 and 2000 from 19.7 percent to 20 percent, while the 

Caucasian population decreased further to 74.1 percent. 
200

Table 3 

 Percent of White Population, Lafourche LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Assumption 59.4 58.1 58.7 62.6 68.1 67.3 67.1 

Lafourche 84.5 86.5 87.8 88.6 87.2 84.6 82.8 

St. Mary 54.5 61.6 69.1 71.5 69.7 65.0 62.8 

Terrebonne 72.4 75.3 79.5 82.2 80.7 78.4 74.0 

LMA % 69.7 73.0 77.2 79.6 79.0 76.2 74.1 

LMA Total 86,818 101,342 141,275 179,440 207,982 201,131 201,246 

Source: U.S. Census Bureau, 2000b. 

Table 4 

 Percent of Black Population, Lafourche LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Assumption 40.6 41.8 41.2 37.2 31.6 32.4 31.5 

Lafourche 14.6 12.4 11.7 11.2 11.1 12.3 12.6 

St. Mary 45.2 38.0 30.6 28.0 28.7 31.2 31.8 

Terrebonne 24.6 20.3 17.1 15.0 15.4 16.5 17.8 

LMA % 29.1 24.7 21.4 19.3 18.7 19.7 20.0 

LMA Total 36,230 34,927 39,281 43,531 49,281 52,004 54,323 

Source: U.S. Census Bureau, 2000b. 

The population growth rates deviate from national trends during this period. Deviation 

comes from two sources: natural increase and migration. Rapid growth or decline comes almost 

exclusively from migration. Net migration is a useful concept through which to understand the 

equilibration of employment and population in sub-regions, and the adaptation of the ecosystem 

to changes in its external environment. One important component of the explanation of net 

migration is the expansion and contraction of employment opportunities in an area (Micklin and 

Choldin, 1984). In particular, “boom and bust” patterns in extractive industries in nonmetropolitan settings can be expected to produce rapid shifts in the direction of net migration, 

because industry-specific employment fluctuations may be large relative to total employment in 

an area (Rural Sociological Society Task Force, 1993; Beard, 1988; Frey and Speare, 1988). 

Periods of rapid employment growth will attract workers (and possibly dependent household 

members) from outside the region. Periods of employment decline can lead to compensating 

out-migration flows. 

Education. Adult educational attainment levels in the Lafourche LMA significantly 

lagged behind those for the State of Louisiana as a whole (Table 5). In 1970, 22 percent of the 

adults in the Lafourche LMA were high school graduates, compared to 43 percent for Louisiana. 

By 1980, 33 percent of adults in the Lafourche LMA were high school graduates, compared to 

59 percent in the State of Louisiana. And, the number of adults who attended but did not 

complete high school actually increased in the Lafourche LMA between 1970 and 1980 (by close 
201

to 5,000). This is interesting because we see this pattern in the oil and gas economies of the 

Louisiana LMAs, but not in the other LMAs of GOM region. 

However, this pattern began to change for the better during the 1980s. Between 1980 and 

1990, the percentage of adults without a high school education dropped from 56 percent in 1980 

to 43 percent in 1990. In comparison, adults without a high school diploma in the State of 

Louisiana dropped to 32 percent. By 2000, the percentage of adults holding a high school 

diploma in Lafourche LMA climbed to 37 percent. This could be because the bust in the oil and 

gas industry led to an out-migration of people without high school diplomas who were chasing 

labor intensive jobs elsewhere. However, the percentage of adults with a college degree reached 

only 11 percent by 2000, which is less than half of the national rate of 26 percent. 

Table 5 

 Adult Educational Attainment (age 25+), Lafourche LMA: 1970-2000 

Parish 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

Total 

1970 

Assumption 63.1% 14.2% 15.2% 3.7% 3.6% 8,948 

Lafourche 54.0% 14.6% 20.7% 4.9% 5.7% 31,221 

St. Mary 44.5% 18.1% 24.8% 6.7% 5.8% 27,644 

Terrebonne 46.7% 17.7% 23.8% 6.0% 5.7% 33,600 

LMA Total 49.8% 16.5% 22.3% 5.7% 5.6% 101,413 

1980 

Assumption 49.2% 16.5% 27.7% 5.8% 0.7% 10,321 

Lafourche 42.3% 16.7% 30.5% 9.2% 1.0% 37,992 

St. Mary 34.3% 20.0% 34.1% 10.4% 1.0% 29,782 

Terrebonne 33.7% 18.2% 35.7% 11.3% 1.0% 42,736 

LMA Total 37.9% 18.0% 33.0% 9.9% 1.0% 120,831 

1990 

Assumption 28.9% 20.6% 32.3% 11.4% 6.7% 13,152 

Lafourche 26.9% 16.9% 33.3% 12.8% 10.0% 49,724 

St. Mary 22.2% 19.7% 35.2% 14.5% 8.3% 33,562 

Terrebonne 22.0% 18.3% 34.9% 15.3% 9.4% 55,636 

LMA Total 24.2% 18.3% 34.2% 13.9% 9.1% 152,074 

2000 

Assumption 21.0% 19.6% 36.9% 12.6% 7.4% 14,411 

Lafourche 17.6% 16.0% 38.0% 13.3% 12.4% 55,891 

St. Mary 14.0% 20.1% 38.3% 15.7% 9.4% 33,158 

Terrebonne 15.2% 17.8% 35.8% 16.0% 12.3% 63,271 

LMA Total 16.2% 17.8% 37.1% 17.5% 11.3% 166,731 

 Source: U.S. Census Bureau, 2000b. 
202

Finances. The oil and gas industry “boom and bust” of the 1970s and 1980s had an 

important effect on the financing of local governments in the Lafourche LMA. Between 1972 

and 1982, total revenues for local governments increased by 63 percent in constant dollars. State 

allocation to local governments increased by 20 percent during the same period. In 1972, state 

allocations accounted for more than half of local government revenue in the Lafourche LMA. 

By 1982, state allocations accounted for only one-third of local government revenue. 

During the boom of the 1970s and early 1980s, local governments in the Lafourche LMA 

had to incur debt to finance the increased demand for services that came with economic growth. 

Between 1972 and 1982, local government debt for the entire LMA increased by 27 percent in 

real dollars. Between 1972 and 1982, per capita local government debt increased by over 105 

percent in Terrebonne Parish. In 1982, local government debt exceeded $3,000 per person in 

1982 dollars (over $5,000 in 1997 dollars) in Lafourche Parish. 

Total local government revenue decreased by a modest amount between 1982 and 1987 

(8% in constant dollars) in the Lafourche LMA. In addition, state revenue fell sharply during 

that period (by 16% in constant dollars). The drop off in state revenue was recaptured through 

increased local government debt. Between 1982 and 1987, local governments in the Lafourche 

LMA accrued, on average, a decrease in debt of 14 percent. The debt load was highest in 

Lafourche Parish. In 1987, the total debt per person exceeded $4,600 per person in 1987 dollars. 

The oil and gas industry put stress on local government finances during the 1970s and 1980s. 

The influx of new residents required more services, particularly schools (the majority of local 

government spending). Declining revenues (from taxes and the state) mean that local 

governments have to finance spending. 

Total local government revenue rebounded with an increase of 13.7 percent between 

1992 and 1997. In addition, state allocation to local government increased by 5.2 percent in the 

same time period. The increase evident in the total local revenue and the increase in state 

allocation to local governments are reflected in the local government debt numbers. Between 

1992 and 1997, local government debt for the entire LMA decreased by 18.8 percent in real 

dollars; all four parishes in the LMA experienced a decrease in their debt loads. 

 

4. New Orleans, Louisiana: Labor Market Area 

New Orleans is one of the major ports in the study region (see also Houston and Mobile). 

It is a port that is spatially close to many oil and gas communities and a prime location for 

corporate interests in the oil and gas business. Many other upstream (shipbuilding) and 

downstream (oil and gas refinery) industries are located here as well. With all that industrial 

activity, changes in the oil and gas industry could potentially have a far-reaching effect on the 

New Orleans LMA. The New Orleans Labor Market Area (LMA) is made up of nine Louisiana 

parishes: Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. James, St. John the 

Baptist, St. Tammany, and Washington (Map 10). In 2000, this LMA had a combined total 

population of 1,381,652 (U.S. Census Bureau 2000b). In the analysis that follows we provide 

an examination of the evolution of this LMA. 

First Unit of Analysis: New Orleans LMA Employment, 1940-1970. In 1940, this LMA 

had a diversified economy with agriculture (7%), manufacturing (21%), trade (25%), and 

services (24%) employing less than 200,000 people. The mining industry, where oil and gas 

workers are employed, represented a very small portion of the labor force in 1940: 1,100 

workers, or less than 1 percent of the labor force. 
203

Map 10. New Orleans, Louisiana Labor Market Area.
204

 Between 1940 and 1950, total employment in the New Orleans LMA grew by 30 percent 

(by over 60,000 workers). With the exception of agriculture (-33%), each sector experienced 

growth. Employment in construction grew by over 8,000 workers, or 66 percent. Manufacturing 

gained 6,000 workers. The largest sector in 1950 was wholesale/retail trade, which grew by 

20,000 workers between 1940 and 1950 to represent 28 percent of the labor force in 1950. 

Mining employment more than doubled between 1940 and 1950, from 1,150 workers to over 

3,000 workers. However, in 1950, this sector still represented a very small proportion of the 

labor force (about 1%). In 1950 the New Orleans LMA workforce was three times larger than 

the Lafayette LMA workforce, but there were fewer workers in the mining sector in the New 

Orleans LMA. 

 Between 1950 and 1960, total employment in the New Orleans LMA grew by 25 percent. 

Every industry sector experienced increases in employment, with the exception of agriculture, 

which lost 2,700 jobs. The growth leader was services, adding 43,000 jobs and representing 32 

percent of a labor force that was in excess of 300,000 workers. Manufacturing also experienced 

growth in the 1950s, adding 11,000 more workers. The mining sector added over 4,000 jobs to 

represent nearly 3 percent of the total labor force in 1960. Moreover, in 1960, more workers 

were employed in the mining sector than were employed in agriculture. Roughly the same 

number of workers was employed in the mining sector in the New Orleans (7,800) and Lafayette 

(7,900) LMAs. 

During the 1960s, the total number of workers in the New Orleans LMA grew by 30 

percent, employing more than 400,000 workers by 1970. The major job growth was in the 

service sector (60,000 jobs) and trade sector (19,000 jobs). These two broad sectors employed 

over 60 percent of the labor force in 1970. Growth in manufacturing was limited to 3,000 jobs, 

or five percent. However, mining experienced 46 percent growth, and construction added jobs at 

a rate of 25 percent. Mining employed over 11,000 workers in 1970, and these two sectors 

combined to employ 10 percent of the labor force in the New Orleans LMA. The data presented 

below illustrate the decennial trends in industry employment from 1940 to 2000 (Figure 1). 
205

 Figure 1. Major Industry Employment, New Orleans LMA: 1940-2000 (U.S. 

 Census Bureau, 2000b). 

New Orleans LMA Demographic Changes: 1940-1970. Between 1940 and 1970, total 

employment in the LMA grew by 114 percent. Also during that period, agriculture declined in 

importance, while mining and manufacturing increased. By 1970, over 11,000 workers were 

employed in the mining sector. Population growth was affected by these employment changes. 

In 1940 666,312 people lived in the New Orleans LMA; by 1970, the population was over 

1,186,000. In Bernard Parish, the population growth grew by more than 600 percent between 

1940 and 1970. 

 Between 1940 and 1970, the ethnic demographics of the LMA changed slightly. The 

percent of African-Americans increased from 30 percent to 31 percent, while the Caucasian 

population decreased from 70 percent to 68 percent. This is an interesting find because, during 

the same period, the number of mining sector workers (where oil and gas workers are found) 

increased significantly to over 11,000. However, unlike in the Lafayette LMA where the 

increase in mining workers created significant shifts in the racial profile of the LMA, no 

discernible changes are noted for New Orleans LMA. 

Second Unit of Analysis: New Orleans LMA Employment, 1970-1990. The oil and gas 

industries experienced both rapid expansion and decline during the 1970s and 1980s. An 

examination of oil and gas prices underscores this claim. In 1998 constant dollars, crude oil 

prices began to spike in the 1970s, with a significant drop-off in 1986. The New Orleans LMA 

was one of the major economies in the oil and gas exploration and production industries during 

this period (Gramling, 1996). Human ecology theory predicts that the price change should affect 

the oil and gas economies of the Gulf of Mexico region. We examine these potential 

relationships by first assessing the broad industry sector changes within the New Orleans LMA. 

 

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Construction Manufacturing Trans/Pub. Util. Whole/Retail Trade Services
206

Between 1970 and 1980, total employment grew by 36 percent in the New Orleans LMA. 

Services and trade were still the dominant industries, employing a combined total of 62 percent 

of the labor force in 1980. Moreover, between 1970 and 1980, these sectors added almost 

100,000 jobs. However, there are other noteworthy trends that occurred during the 1970s. 

Transportation and public utilities grew by 18,000 jobs, construction by 18,000 jobs, and mining 

by 7,500 jobs. Together, these industries represented over 20 percent of the labor force in the 

Greater New Orleans LMA in 1980. The data from these sectors indicate a connection to the 

expansion of oil and gas activity (exploration, extraction, etc.) during the late 1970s. 

 The data for 1990 confirm the connection to the oil and gas “boom and bust” pattern, 

showing economic stagnation in the New Orleans LMA during the 1980s. Total employment 

declined by 1 percent. The mining and construction industries both experienced employment 

losses in excess of 30 percent between 1980 and 1990. By 1990, employment in both of these 

industries returned to their 1970 levels. Transportation and public utilities experienced an 

employment reduction of 19 percent between 1980 and 1990. Manufacturing lost 15,000 jobs, 

but analysis of more detailed industry codes are needed to confirm a connection to oil and gas 

activity. The service sector experienced a growth rate of 17 percent between 1980 and 1990, but 

this growth rate was significantly lower than the service sector growth rate for the previous 

decade (40%) in the New Orleans LMA. By 1990, over 70 percent of the New Orleans LMA 

workforce worked either in the wholesale/retail or service sector. 

The decennial data indicate some important changes between Census years, particularly 

in the 1970s and 1980s. The data for 1980 and 1990 paint two different pictures of the New 

Orleans LMA—one of a fast-growing, relatively diversified economy across a range of sectors 

(manufacturing, transportation/public utilities, construction, trade and services), and one of a 

declining and largely service sector economy. We turn now to an analysis of annual employment 

data for the New Orleans LMA in order to locate a better understanding of what changes 

occurred between Census years. 

 In order to establish when, or if, unexpected changes in employment occurred in the New 

Orleans LMA, we performed a time-series forecasting analysis. The results of this effort are 

reported below (Figures 2 and 3). Figure 2 depicts the actual employment data charted with the 

three-year moving average for each year from 1969-2000, inclusive. Figure 3 documents 

forecasting errors, which occur when the observed employment number in a given year 

substantially exceeds the expected employment number in that year (based on a three-year 

moving average). This data identifies trends in forecasting errors for every year between 1973 

and 1981, with significant values in 1973, 1977 and 1978. For each of these years there was 

significantly more employment than predicted. The New Orleans LMA experienced significant 

employment growth during the 1970s. The forecasting analysis shows this pattern beginning in 

1973. While the bust of the 1980s is not as prominent in the New Orleans LMA as it is in other 

places (e.g., Lafayette and Lafourche), there was a steady drop-off in employment in the 1980s. 

The worst period was 1985-86, when over 20,000 jobs were lost in one year. From 1980 to 

1987, over 40,000 jobs were lost in the New Orleans LMA, reflecting a net loss of almost 7 

percent. 

 Interestingly, the total employment data show growth in the New Orleans LMA in the 

late 1990s. From 1995 through 1998, employment grew, but not at rates significantly greater 

than expected. And, by 1994, employment levels in the New Orleans LMA had surpassed those 

in 1980, at the height of the oil boom.
207

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

196919701971

1972

1973197419751976197719781979

1980

198119821983

1984

198519861987

1988

1989

1990

1991

199219931994

19951996

1997

199819992000

Total Empl oyment 3 Year Moving Avg.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

196919701971

1972

1973197419751976197719781979

1980

198119821983

1984

198519861987

1988

1989

1990

1991

199219931994

19951996

1997

199819992000

Total Empl oyment 3 Year Moving Avg.

 Figure 2. Total Annual Employment Trends and Three-year Moving Averages, New 

 Orleans LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

198119821983198419851986198719881989199019911992

1993

1994

1995

19961997 1998

1999

2000

Forecasting Error 2 X MSE

197119721973

1974

1975

19761977197819791980198119821983198419851986198719881989199019911992

1993

1994

1995

19961997 1998

1999

2000

Forecasting Error 2 X MSE

 Figure 3. Forecasting Analysis for Total Employment, New Orleans LMA: 1971- 

 2000. 
208

 We turn now to an analysis of annual employment data in order to uncover in which 

industry sectors these “boom and bust” patterns are present in the New Orleans LMA. Figure 4 

shows annual employment data for nine general industry categories for the years between 1969 

and 1996, inclusive. Examining this data, we see that mining, construction, manufacturing and 

transportation/communication all experienced patterns of growth and decline during the 1980s. 

The forecasting analyses for these sectors are presented below (Figures 5-7). The analysis for 

mining shows one period of greater than expected employment growth (1980-1981). This is 

followed by two periods of unexpected declines in employment. In 1986 and 1987, the industry 

hit a low employment point, losing almost 7,000 jobs in two years. This forecasting pattern is 

consistent with the “boom and bust” patterns of oil and natural activities. Furthermore, there is a 

second significant dip in employment between 1992 and 1993. By 1993, an additional 5,000 

jobs had been lost in this sector throughout the New Orleans LMA. 

 The data for construction employment fit a pattern similar to mining. There was greater 

than expected growth in the 1970s (i.e., 1976). There was a pattern of unexpected decline 

between 1985 and 1987. During that decline about 12,000 jobs were lost in this sector. 

 Transportation/communication shows a trend consistent with “boom and bust” patterns of 

the 1970s and 1980s. Between 1978 and 1981, there was significant growth in this industry 

(over 10,000 jobs in a 10-year period). However, starting in 1982 there was a severe downturn 

in this industry. By 1987, over 13,000 jobs had been lost. Losses in this sector are significant 

because water transportation is necessary for offshore exploration and production. Since the late 

1980s, employment in this sector has remained relatively stable. 

 Figure 4. Major Industry Annual Employment, New Orleans LMA: 1969-2000 

 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

0

50,000

100,000

150,000

200,000

250,000

300,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric. Mining Const. Manuf. Tran/Comm Whole.Tr. Retail FIRE Services
209

1971

1972

19731974

1975

19761977197819791980

1981

1982

1983

19841985

19861987

1988

1989

1990

1991

1992 

1993 

1994

1995

19961997

19981999

2000

Forecasting Error 2 X MSE

1971

1972

19731974

1975

19761977197819791980

1981

1982

1983

19841985

19861987

1988

1989

1990

1991

1992 

1993 

1994

1995

19961997

19981999

2000

Forecasting Error 2 X MSE

1971

1972

19731974

1975

19761977197819791980

1981

1982

1983

19841985

19861987

1988

1989

1990

1991

1992 

1993 

1994

1995

19961997

19981999

2000

Forecasting Error 2 X MSE

1971

1972

19731974

1975

19761977197819791980

1981

1982

1983

19841985

19861987

1988

1989

1990

1991

1992 

1993 

1994

1995

19961997

19981999

2000

Forecasting Error 2 X MSE

 Figure 5. Forecasting Analysis for Mining Employment, New Orleans LMA: 1971- 

 2000. 1971 1972 1973 1974 1975 1976

1977

197819791980

1981

19821983

19841985

19861987

1988

19891990

1991

199219931994199519961997

1998

19992000

Forecasting Error 2 X MSE

 Figure 6. Forecasting Analysis for Construction, New Orleans LMA: 1971-2000. 
210

 

1971

1972

1973

1974

1975

1976

1977

1978

197919801981198219831984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Forecasting Error 2 X MSE

 Figure 7. Forecasting Analysis for Manufacturing, New Orleans LMA: 1971-2000. 

 Manufacturing is a sector that experienced rapid decline in 1980s. There were 

significant declines in employment between 1982 and 1984. Almost 20,000 jobs were lost in 

this sector between 1982 and 1986. Since then, employment in this sector has remained 

relatively stable. Of course, the 1980s were a period of instability for the manufacturing sector, 

with increasing pressures from foreign labor markets. Therefore, an analysis of detailed 

manufacturing sector codes is needed to establish a direct relationship between these trends and 

the “booms and busts” of the oil and gas industry. 

The annual employment data show a boom and bust pattern beginning in the late 1970s 

and extending through the later 1980s. The analysis of annual full- and part-time employment 

data by single-digit industry codes indicates that this pattern is experienced by a number of 

sectors, including mining, construction, manufacturing and transportation. These data show that 

the patterns uncovered in the decennial analysis (growth in the 1970s, decline in the 1980s) are 

consistent with the boom and bust patterns in the oil and natural gas industry during this period. 

However, using single-digit industry sector data will not allow us to confirm this finding. 

Therefore, we turn to an analysis of detailed industry codes within each of these categories. 

Detailed Industry Code Analyses. In this next section, we present analyses of industry 

sector codes for four key industry groups: manufacturing, mining, transportation and wholesale 

trade (Table 1). We chose those categories based on a) relationship to oil and gas activities, b) 

employment levels, and c) availability of data in the years we are studying. The manufacturing 

category includes the sub-categories of fabricated structural metal products, ship and boat 

building and repair, and oil field machinery. Mining includes drilling oil and gas wells, oil and 

gas field exploration services, and oil and gas field service, N.E.C. The transportation category 

focuses exclusively on water. Wholesale trade considers only industrial machinery and 

equipment. 
211

Table 1 

Key Industry Groups and Sub-Categories 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale of 

derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and supplies. 

New Orleans LMA Manufacturing. The employment data for the Fabricated Structural 

Metal Products (SIC 3440) show that this sector did not employ large number of workers (less 

than 1,800 in any given year) (Figures 8 and 9). The employment pattern that is somewhat 

consistent with the “boom and bust” pattern of the 1970s and 1980s. There is a rise in 

employment beginning in the early 1980s and a sharp decline between 1982 and 1988. There 

was a slight rebound in this industry in the 1990s, with employment levels reaching levels very 

close to those in 1981. The forecast analysis shows that in 1981, more employment was 

observed in this industry than was expected based on previous trends. In 1983 and 1984, 

however, employment in this industry was significantly lower than was expected, based on the 
212

forecasting analysis. While the trends are consistent with the oil and gas “boom and bust” 

patterns, this is not an industry sector with substantial employment in the New Orleans LMA. 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 8. Annual Employment for Fabricated Structural Metal Products, New Orleans 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

198919901991

199219931994

19951996

Forecasting Error 2 X MSE

 Figure 9. Forecasting Analysis for Fabricated Structural Metal Products, New Orleans 

 LMA: 1966-1996. 
213

The employment data on Oil Field Machinery (SIC 3533) manufacturing show a pattern 

very similar to the pattern for Fabricated Structural Metal Products (SIC 3440) (Figures 10 and 

11). There are very low levels of employment, less than 500 workers in most years. The trends 

are sporadic and rather volatile. Employment growth begins in the mid-1970s and extends until 

1982, but with a significant dip in 1977. The early 1980s are followed by a decline in 

employment that continues through the late 1980s. The forecasting analysis documents the 

sporadic nature of this industry in the New Orleans LMA. In 1974 and 1975 there was 

significantly more employment than expected. However, in 1977 there was a sharp drop off in 

employment. From 1978 to 1982, growth was relatively stable, but by 1983 there was another 

sharp drop-off from which the industry has not recovered. The patterns are consistent with the 

oil and gas boom and bust patterns of the period, but the limited levels of employment suggest 

that this industry did not have a major impact on the Greater New Orleans LMA economy. 

0

200

400

600

800

1,000

1,200

1,400

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 10. Annual Employment for Oil Field Machinery, New Orleans LMA: 1964- 

 1996 (U.S. Census Bureau, 2000a). 
214

19661967

196819691970

197119721973197419751976197719781979

198019811982

198319841985198619871988198919901991

199219931994

19951996

Forecasting Error 2 X MSE

 Figure 11. Forecasting Analysis for Oil Field Machinery, New Orleans LMA: 1966-1996. 

The Ship and Boat Building and Repair (SIC 3730) sector is the largest of the key 

manufacturing sectors in our study; it employed more than 15,000 workers at one point in this 

time-line. The employment data show a clear “boom and bust” pattern in the 1970s and early 

1980s (Figure 12). Between 1973 and 1981, employment in this sector grew by 172 percent. 

However, by 1986, employment in this sector had declined by 43 percent. This pattern is 

followed by a growth pattern in this industry in the early 1990s. The forecasting analysis 

supports the boom and bust patterns. In 1974 and 1977 there was significantly greater 

employment observed than was expected, based on three-year moving employment averages. In 

1983 and 1984, there was significantly less employment observed in this sector than was 

expected. What growth and decline there is in the late 1980s and early 1990s does not fit a 

statistical “boom and bust” pattern, based on this forecasting analysis.

 Of the three key manufacturing sectors related to oil and gas activities that we examined 

in the New Orleans LMA, “ship and boat building and repairing” is the most significant in both 

size and history. This industry employed over 15,000 workers at the height of the boom. The 

employment patterns are classically consistent with what we know about the industry in this 

region of the country. 
215

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 12. Annual Employment for Ship and Boat Building and Repair, New Orleans 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

New Orleans LMA Mining. The data on Drilling Oil and Gas Wells does not fit the 

classic “boom and bust” pattern that we see in other LMAs in the GOMR. Mining employment 

peaked in 1974 at over 3,500 workers (Figure 13). According to our forecasting analysis (not 

shown here), growth began in 1974 but had reduced dramatically by 1977. There was a slight 

one-year bump in employment in 1990, but it quickly dissipated. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1964

1965

1966

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1968

1969

1970 1971

1972 1973

1974 1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987 1988 1989 1990

1991

1992 1993

1994

1995 1996

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1964

1965

1966

1967

1968

1969

1970 1971

1972 1973

1974 1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987 1988 1989 1990

1991

1992 1993

1994

1995 1996

 Figure 13. Annual Employment for Drilling Oil and Gas Wells, New Orleans LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 
216

The Oil and Gas Field Exploration Services (SIC 1382) industry has very little presence 

in the New Orleans LMA (Figures 14 and 15). 

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 14. Annual Employment for Oil and Gas Field Services, New Orleans LMA: 

 1964-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985

1986

198719881989

1990199119921993199419951996

Forecasting Error 2 X MSE

 Figure 15. Forecasting Analysis for Oil and Gas Field Services, New Orleans LMA: 1966- 

 1996. 
217

 With the exception of 1982, the Oil and Gas Field Exploration Services sector has never 

employed more than 1,000 workers. The forecasting analysis shows a one-year spike in 

employment (1982) followed by a sharp drop-off (1983 and 1984). 

 However, employment levels in the Oil and Gas Field Service N.E.C. (SIC 1389) 

category are much more significant (Figures 16 and 17). In 1982 over 6,600 workers were 

employed in this industry. The employment patterns show that this sector has had a major 

presence in the New Orleans LMA since the 1960s. Employment levels exceeded 3,000 workers 

for 20 years, beginning in 1966. Employment peaked in 1982 at 6,600 workers. The forecasting 

analysis shows that the permanent downsizing of this industry sector began in 1985. Within two 

years, employment levels had decreased by 60 percent, to less than 2,000 workers. Data for 

1996 show a sharp increase in employment. 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 16. Annual Employment for Oil and Gas Field Services-NEC, New Orleans 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 
218

19641965

196619671968

196919701971197219731974197519761977

197819791980

198119821983198419851986198719881989

199019911992

19931994

Forecasting Error 2 X MSE

 Figure 17. Forecasting Analysis for Oil and Gas Field Services-NEC, New Orleans 

 LMA: 1964-1994. 

New Orleans LMA Water Transportation. The following figures present data on Water 

Transportation (SIC 4400) employment (Figures 18 and 19). Unfortunately, there is no category 

that directly measures water transportation related to offshore oil and gas activities. However, 

we did find a “boom and bust” trend in transportation and public utilities. We suspect that this 

trend is directly related to offshore oil and gas activities. We believe that a direct examination of 

water transportation earnings will bring us closer to the impact of oil and gas activities. 

The data show that Water Transportation is a significant industry in the New Orleans 

LMA, employing over 20,000 workers in the early 1980s. The level of employment in this 

sector is expected. New Orleans is one of the world’s leading port cities. However, the pattern 

of employment is similar to the other oil and gas sectors. Employment in Water Transportation 

(SIC 4400) peaked in 1981 and 1982, and declined significantly after that period. Between 1980 

and 1987, over half of all jobs in this industry were lost in the New Orleans LMA. Since 1993, 

employment has been relatively stable. The forecasting analysis shows that in both 1983 and 

1987, there were significantly fewer workers employed in this industry than were expected. 

Moreover, the pre- and post-pattern data show employment levels in water transportation at 

about 10,000 workers. At the height of the boom (1982) employment reached over 20,000 

workers. We estimate that approximately 10,000 workers in this industry were affected by the 

“boom and bust” patterns of the oil and natural gas industry in the New Orleans LMA. 
219

0

5,000

10,000

15,000

20,000

25,000

30,000

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

 Figure 18. Annual Employment for Water Transportation, New Orleans LMA: 1964- 

 1996 (U.S. Census Bureau, 2000a). 

 

1966

1967

1968

1969

1970

1971

197219731974

1975

1976

19771978197919801981

198219831984198519861987

19881989199019911992

1993199419951996

Forecasting Error 2 X MSE

 Figure 19. Forecasting Analysis for Water Transportation, New Orleans LMA: 1966- 

 1996. 
220

New Orleans LMA Wholesale Trade. The data for Industrial Machinery and Equipment

(SIC 5084) are presented below (Figure 20). This industry category includes the wholesale 

marketing of oil well machinery. These data are available only from 1977 to 1996, which does 

not provide enough years to perform a forecasting analysis. However, the trend line in Figure 20 

shows the familiar pattern of growth in the 1970s: an apex in the early 1980s (1981; 4,000 plus 

workers), followed by a decline. In 1987, employment in this sector reached a low-point of 

2,400 workers. Since 1987 employment in this industry has fluctuated between 2,000 and 3,000 

workers. 

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 Figure 20. Annual Employment for Wholesale Trade of Industrial Machinery and 

 Equipment, New Orleans LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

The detailed employment data show the impact of the “boom and bust” patterns on the oil 

and gas and related industries in the New Orleans LMA. In those eight detailed categories alone, 

almost 24,000 jobs were lost between 1982 and 1987 in the New Orleans LMA. Three main 

industry sectors were impacted: water transportation, ship building and repairing, and oil and gas 

field services, NEC. These data do not include the “ripple” effects of economic shocks 

throughout the rest of the economy. The annual employment data show downturns in other 

industries that were dependent upon the boom generated in the oil and gas activities, such as 

construction and retail trade. When people lose their jobs they do not build nor do they purchase 

as many goods and services. 

While the data show an entire labor market area caught in a market contraction (in a 

natural resource industry) during the 1980s, the historical data for the New Orleans LMA suggest 

two important trends. First, this pattern is unique to this period (1978-1987). While off-shore 

drilling has been present in the Gulf of Mexico since the 1940s, we do not find any other “boom 

or bust” patterns for oil and gas related industries in years prior to the 1970s. Second, despite the 

hard economic times of the 1980s, the greater New Orleans LMA has recovered, at least in terms 

of employment, during the period following the oil industry. Data on total employment 
221

presented above shows that by 1996 total employment levels had surpassed those set at the 

height of the oil and gas boom (1982); a pattern similar to that for Lafayette LMA. 

New Orleans LMA Population, Education, and Local Government: 1970-1990. 

Population data for the New Orleans LMA is presented below (Tables 2-4). Between 1970 and 

1980, the population of the New Orleans Labor Market Area increased by 14 percent, from 

1,186,117 to 1,348,007. The 14 percent growth rate for the entire LMA is significantly greater 

than the national growth rate of 11 percent for the same time period. Within the LMA, however, 

the population grew fastest in St. Tammany Parish, a suburb of New Orleans across Lake 

Pontchartrain. Between 1980 and 1990, the population of the New Orleans LMA decreased by 

nearly 2 percent, indicating extensive out-migration, specifically in Jefferson, Orleans, 

Plaquemines, St. James, and Washington Parishes. 

The racial composition of the LMA also shifted. Between 1970 and 1980, the AfricanAmerican population increased from 31 percent to 33 percent. During the same time period, the 

Caucasian population decreased from 68 percent to 66 percent. Between 1980 and 1990, the 

African-American population increased from 33 percent to 35 percent, while the Caucasian 

population decreased to 62 percent. 

The population growth rates deviate from the national trends during this period. 

Deviation comes from two sources: natural increase and migration. Rapid growth or decline 

comes almost exclusively from migration. Net migration is a useful concept through which to 

understand the equilibration of employment and population in sub-regions, the adaptation of the 

ecosystem to changes in its external environment. One important component of the explanation 

of net migration is the expansion and contraction of employment opportunities in an area 

(Micklin and Choldin, 1984). In particular, “boom and bust” patterns in extractive industries in 

non-metropolitan settings can be expected to produce rapid shifts in the direction of net 

migration, because industry-specific employment fluctuations may be large relative to total 

employment in an area (Rural Sociological Society Task Force, 1993; Beard, 1988; Frey and 

Speare, 1988). Periods of rapid employment growth will attract workers (and possibly 

dependent household members) from outside the region. Periods of employment decline can 

lead to compensating out-migration flows. 

Table 2 

 Population by Parish, New Orleans LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Jefferson 50,427 103,873 208,769 337,568 454,592 448,306 455,466 

Orleans 494,537 570,445 627,525 593,471 557,515 496,938 484,674 

Plaquem. 12,318 14,239 22,545 25,225 26,049 25,575 26,757 

St. Bern. 7,280 11,087 32,186 51,185 64,097 66,631 67,229 

St. Charles 12,321 13,363 21,219 29,550 37,259 42,437 48,072 

St. James 16,596 15,334 18,369 19,733 21,495 20,879 21,216 

St. John 14,766 14,861 18,439 23,813 31,924 29,996 43,044 

St. Tamm. 23,624 26,988 38,643 63,585 110,869 144,508 191,268 

Washing. 34,443 38,371 44,015 41,987 44,207 43,185 43,926 

Total 666,312 808,561 1,031,710 1,186,117 1,348,007 1,328,455 1,381,652

Source: U.S. Census Bureau, 2000b. 
222

Table 3 

Percent of White Population, New Orleans LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Jefferson 82.9 84.3 84.7 87.3 83.7 78.3 69.8 

Orleans 69.7 68.0 62.5 54.6 42.7 34.8 28.0 

Plaquemines 55.7 61.3 71.1 75.8 76.8 72.4 69.7 

St. Bernard 80.4 85.3 92.4 94.4 95.1 93.5 88.3 

St. Charles 68.2 67.3 72.9 73.5 73.8 74.8 72.4 

St. James 50.4 49.7 50.7 52.7 52.6 50.0 50.0 

St. John 53.4 50.1 48.4 53.4 61.4 83.5 52.6 

St. Tammany 69.0 70.6 72.5 81.2 86.6 87.7 87.0 

Washington 68.6 68.5 66.1 67.6 69.5 68.6 67.4 

LMA % 69.6 69.6 68.4 68.3 65.6 62.4 57.6 

LMA Total 463,939 563,049 706,094 811,289 885,082 828,984 796,096

 Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Black Population, New Orleans LMA: 1940-2000 

Parish 1940 1950 1960 1970 1980 1990 2000 

Jefferson 16.8 15.5 15.1 12.4 13.9 17.6 22.8 

Orleans 30.1 31.8 37.2 45.0 55.2 62.0 67.2 

Plaquemines 43.9 38.3 28.1 22.9 21.1 23.2 23.4 

St. Bernard 19.3 14.5 7.2 5.3 3.7 4.6 7.6 

St. Charles 31.7 32.5 27.0 26.3 25.5 24.2 25.2 

St. James 49.5 50.2 49.2 47.2 47.2 49.5 49.3 

St. John 46.5 50.0 51.6 46.3 38.1 47.9 44.7 

St. Tammany 30.9 29.3 27.2 18.6 12.4 11.0 9.9 

Washington 31.4 31.4 33.8 32.1 30.1 30.8 31.5 

LMA % 30.2 30.2 31.3 31.3 32.4 34.6 37.3 

LMA Total 201,454 244,441 323,532 371,393 438,044 460,483 516,102

 Source: U.S. Census Bureau, 2000b. 

Education. Adult educational attainment levels in the New Orleans LMA were higher 

than those for the State of Louisiana as a whole (Table 5). In 1970, 55 percent of the adults in 

the New Orleans LMA had not graduated from high school, compared to 57 percent for the State 

of Louisiana. By 1980, the percentage of adults who had not graduated from high school in the 

New Orleans LMA had declined to 38 percent, compared 41 percent for the State. However, the 

raw numbers for the LMA show that the number of adults who attended but did not complete 

high school actually increased in the New Orleans LMA between 1970 and 1980 (by over 

1,000). By 1990, the percentage of high school graduates in the New Orleans LMA dropped 

from 38 in 1980 to 29. While the New Orleans LMA faired better than other Louisiana oil and 
223

gas LMAs (particularly Lafayette and Lafourche) in terms of educational attainment, there are 

still trends present in this LMA (notably the rise in the actual number of adults who did not finish 

high school) that we do not find in LMAs outside of Louisiana. 

Table 5 

 Adult Educational Attainment (25+), New Orleans LMA: 1970-2000 

Parish 0-8 

Years 

Some High 

School 

High School 

 Diploma 

Some College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Jefferson 28.0% 19.3% 30.6% 10.9% 11.0% 167,297 

Orleans 38.0% 19.7% 22.8% 8.6% 10.8% 318,872 

Plaquemines 44.7% 19.6% 25.0% 5.9% 4.7% 11,505 

St. Bernard 34.9% 22.6% 32.3% 6.4% 3.7% 24,968 

St. Charles 37.9% 18.8% 30.0% 7.3% 5.9% 13,305 

St. James 46.5% 17.2% 26.0% 11.4% 5.6% 8,481 

St. John 44.8% 16.7% 29.8% 4.7% 3.8% 10,759 

St. Tammany 30.8% 20.0% 27.5% 10.2% 11.2% 31,781 

Washington 40.5% 21.2% 25.5% 6.3% 6.4% 22,013 

LMA Total 35.2% 19.7% 26.0% 8.9% 10.0% 608,981

1980 

Jefferson 19.2% 14.2% 35.9% 16.3% 16.2% 253,666 

Orleans 24.1% 16.7% 27.0% 14.2% 17.7% 318,566 

Plaquemines 30.6% 19.0% 34.6% 10.0% 5.7% 13,220 

St. Bernard 25.3% 17.0% 42.0% 9.9% 5.6% 35,894 

St. Charles 23.1% 18.0% 36.9% 11.6% 10.3% 19,126 

St. James 29.6% 19.3% 34.4% 8.3% 8.2% 10,669 

St. John 25.1% 17.1% 36.0% 11.8% 9.8% 15,973 

St. Tammany 17.1% 15.0% 32.1% 15.7% 20.0% 61,713 

Washington 28.0% 22.6% 31.5% 9.1% 8.6% 25,135 

LMA Total 21.6% 16.1% 32.1% 14.4% 15.8% 753,962 

1990 

Jefferson 10.5% 13.4% 31.8% 25.3% 18.7% 283,003

Orleans 13.2% 18.6% 23.5% 22.1% 22.4% 305,065

Plaquemines 22.3% 19.7% 32.2% 18.2% 7.6% 14,888

St. Bernard 12.2% 18.2% 39.2% 20.7% 7.2% 41,894

St. Charles 10.6% 15.3% 35.8% 23.4% 14.7% 25,442

St. James 17.2% 21.6% 38.9% 13.9% 8.1% 12,019

St. John 12.5% 15.9% 38.5% 21.6% 11.4% 22,773

St. Tammany 8.7% 14.4% 28.4% 25.4% 23.0% 89,425

Washington 16.8% 21.7% 37.7% 15.0% 8.6% 27,176

LMA Total 12.1% 16.3% 29.3% 23.1% 18.9% 821,685
224

Table 5 

 Adult Educational Attainment (25+), New Orleans LMA: 1970-2000 (continued) 

2000 

Jefferson 7.0% 13.6% 30.0% 27.8% 21.5% 298,761

Orleans 8.0% 17.2% 23.4% 25.5% 25.7% 300,568

Plaquemines 14.6% 16.6% 34.2% 23.6% 10.8% 16,448

St. Bernard 9.9% 16.9% 37.9% 26.2% 8.9% 44,127

St. Charles 7.0% 13.0% 36.0% 26.4% 17.5% 29,551

St. James 9.2% 16.8% 45.1% 18.7% 10.0% 12,840

St. John 7.4% 15.7% 38.9% 25.0% 21.9% 25,377

St. Tammany 4.7% 11.3% 26.5% 29.0% 28.3% 122,959

Washington 10.8% 21.0% 40.1% 17.1% 10.9% 27,954

LMA Total 7.5% 15.1% 28.7% 26.4% 22.1% 878,585

 Source: U.S. Census Bureau, 2000b. 

Finances. The data for local government financing show that the oil and gas industry 

“boom and bust” of the 1970s and 1980s had an important effect on the financing of local 

governments in the New Orleans LMA. The data below show that, between 1972 and 1982, total 

revenues for local governments increased by 41 percent in constant dollars (Tables 6-9). State 

allocation to local governments increased by 14 percent during the same period. In 1972, state 

allocations accounted for more than one-third of local government revenue in the New Orleans 

LMA. By 1982, state allocation accounted for only 20 percent of local government revenue. 

The data on local government debt show that during the boom of the 1970s and early 

1980s, local governments in the New Orleans LMA had to incur debt to finance the increased 

demand for services that came with economic growth. However, between 1972 and 1982, local 

government debt for the entire LMA decreased by nearly 9 percent in real dollars. Yet, between 

1977 and 1982, per capita local government debt increased by over 11 percent in the New 

Orleans LMA as a whole, with St. John the Baptist Parish incurring the largest increase in debt 

(171 percent). In 1982, local government debt was over $3,000 per person in 1982 dollars (over 

$5,000 in 1997 dollars) in New Orleans Parish. 

The data for the 1980s show that, between 1982 and 1987, total local government 

revenue grew by a modest amount (about 7% in constant dollars) in the New Orleans LMA. 

However, state revenue actually fell during that period by 18 percent in constant dollars– a 

pattern common to Louisiana LMAs between 1982 and 1987. The drop off in state revenue was 

recaptured through increased local government debt. Between 1982 and 1987, local 

governments in the New Orleans LMA accrued, on average, an increase in debt of 43 percent. 

The debt load was highest in St. James Parish. In 1987, the total debt per person exceeded 

$4,600 per person in current (1987) dollars. However, the increase in debt for New Orleans 

LMA during the 1980s was significantly less than in Lafayette LMA. By 1992, the per capita 

local government debt was $1,000 per capita less for the New Orleans LMA than for the 

Lafayette LMA. 
225

 Table 6 

 Total Revenue, Per Capita (in 1997 adjusted dollars), New Orleans LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Jefferson $1,519 $1,685 $1,987 $2,222 $2,602 $2,815 

Orleans $1,545 $1,896 $2,364 $2,585 $2,557 $2,906 

Plaquemines $3,076 $3,616 $4,298 $3,614 $3,237 $3,664 

St. Bernard $1,149 $1,543 $1,530 $1,559 $1,820 $1,355 

St. Charles $1,387 $2,016 $2,992 $2,615 $3,447 $3,815 

St. James $1,198 $2,447 $2,981 $3,962 $3,402 $3,585 

St. John $1,161 $1,310 $1,520 $1,407 $1,644 $1,701 

St. Tammany $1,422 $1,499 $1,490 $1,631 $2,080 $2,357 

Washington $1,335 $1,698 $1,782 $1,579 $1,739 $1,905 

LMA Total $1,520 $1,809 $2,144 $2,290 $2,482 $2,714 

 Source: U.S. Census Bureau, 2000a. 

Table 7 

Total State Revenue, Per Capita (in 1997 adjusted dollars), New Orleans LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Jefferson $456 $439 $425 $360 $443 $432 

Orleans $470 $537 $594 $507 $595 $757 

Plaquemines $1,017 $1,835 $1,344 $947 $978 $957 

St. Bernard $539 $601 $658 $491 $641 $501 

St. Charles $627 $717 $807 $619 $713 $645 

St. James $255 $885 $868 $718 $790 $845 

St. John $600 $627 $569 $453 $557 $579 

St. Tammany $570 $555 $539 $442 $552 $648 

Washington $723 $812 $829 $637 $838 $850 

LMA Total $498 $556 $567 $468 $561 $620 

 Source: U.S. Census Bureau, 2000a. 
226

Table 8 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), New Orleans LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Jefferson $588 $636 $768 $866 $1,145 $1,184 

Orleans $655 $697 $801 $937 $1,079 $1,071 

Plaquemines $571 $512 $1,031 $1,018 $1,007 $1,481 

St. Bernard $529 $523 $520 $502 $553 $548 

St. Charles $475 $860 $1,220 $1,137 $1,509 $2,048 

St. James $448 $675 $1,041 $985 $1,353 $1,410 

St. John $301 $402 $513 $615 $766 $778 

St. Tammany $449 $367 $371 $564 $683 $804 

Washington $383 $448 $417 $437 $428 $551 

LMA Total $592 $632 $739 $836 $1,016 $1,069 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

 Total Debt, Per Capita (in 1997 adjusted dollars), New Orleans LMA: 1972-1997 

Parish 1972 1977 1982 1987 1992 1997 

Jefferson $3,089 $2,069 $2,223 $3,465 $2,860 $2,847 

Orleans $2,226 $1,691 $1,814 $2,801 $3,117 $3,459 

Plaquemines $2,011 $1,958 $368 $422 $6,238 $4,475 

St. Bernard $2,208 $3,117 $2,282 $2,979 $2,567 $1,859 

St. Charles $1,393 $2,673 $6,498 $5,845 $3,551 $5,710 

St. James $4,137 $6,595 $5,060 $15,139 $11,146 $8,507 

St. John $2,529 $1,229 $3,334 $3,100 $2,887 $2,304 

St. Tammany $1,108 $1,388 $2,159 $1,710 $2,593 $1,642 

Washington $712 $1,464 $942 $731 $606 $248 

LMA Total $2,380 $1,955 $2,173 $3,103 $2,935 $2,973 

 Source: U.S. Census Bureau, 2000a. 

The New Orleans LMA was intricately linked to the oil and gas industry during the 

“boom and bust” of the 1970s and 1980s. Over 20,000 jobs were lost in core industries during 

the 1980s. Negative population growth between 1980 and 1990, and an increase in debt incurred 

by local governments to keep essential functions running are linked to this bust. In those 

decades, New Orleans had a robust economy serving over one million people, with a vibrant 

tourist trade. What happened to the economy after the oil bust? 

Total employment in the New Orleans LMA grew by 9 percent during the 1990s. 

However, three sectors declined during the 1990s: mining (-3,000 jobs); manufacturing (-6,000 

jobs) and wholesale/retail trade (-25,000 jobs). The service sector led growth, adding almost 

100,000 jobs during the 1990s. 
227

Between 1990 and 2000, the New Orleans LMA population increased modestly (4%) 

from 1,328,455 to 1,381,652. This growth rate is significantly lower than the national rate of 10 

percent for the same time period. All parishes within the LMA showed some amount of increase 

in population, except for the New Orleans Parish, which experienced negative population 

growth. This suggests continued out-migration to the suburb parishes. This pattern is similar for 

the 1990 to 2000 period. The African-American population increased from 35 percent to 37 

percent, while the Caucasian population decreased to 58 percent in 2000. These patterns indicate 

“white flight” to surrounding suburban areas. In addition, the percentage of adults with college 

degrees reached 22 percent, compared to 26 percent for the nation as a whole. 

For the 1990s, the data show that total local government revenue continued to increase by 

9.4 percent between 1992 and 1997. In addition, state allocation to local government increased 

by 10 percent in the same time period. Even though total local government and state allocation 

to local governments increased during the period between 1992 and 1997, local government debt 

for the entire LMA increased slightly by about 1 percent in real dollars. However, six of the 

parishes in the LMA experienced a decrease in their debt loads. 

 New Orleans was the second largest city in the Gulf of Mexico region through 2000. 

Unlike Houston, however, the New Orleans economy actually contracted during the oil bust of 

the 1980s, with the LMA as a whole experiencing negative population growth during that 

decade. Moreover, the 4 percent population growth rate during the 1990s is far behind the 25 

percent growth rate experienced by the Greater Houston LMA region during the 1990s. The 

1980s were a transitional period for those two cities and their surrounding economies. Houston 

weathered the bust very well and expanded its economy beyond the national growth rates during 

the 1990s. New Orleans recovered from the effects of the oil and gas bust with local government 

debts declining and employment growing. Still, New Orleans fell further behind Houston during 

the decade after the bust. 
229

IV. MISSISSIPPI STATE PROFILE 

A. INTRODUCTION 

The State of Mississippi is bordered by Louisiana and Arkansas to the west, Alabama to 

the east, Tennessee to the north, and the Gulf of Mexico to the south (Map 11). Mississippi 

encompasses a total of 48,434 square miles, 1,520 of which are water. With an average annual 

temperature of 65° (42° January; 81° July) and 52 inches of rain, Mississippi enjoys a temperate, 

if moderately wet, climate. However, the Mississippi Coastal region along the Gulf of Mexico 

receives 62 inches of rain each year and is vulnerable to flooding and hurricane damage 

(Mississippi Development Authority, 2002). 

 Mississippi has a diverse terrain that ranges from rolling hills and flatlands, to sandy 

beaches and forests. The state is topographically divided into five general regions: the Capital 

River region (southwest), the Hills region (north), the Delta region (northwest), the Pines region 

(east), and the Coastal region (south). 

 Dense forestry is one of the state’s defining characteristics. Bienville, Delta, Desoto, 

Holly Springs, Homochitto and Tombigbee National Forests are all located within the state. 

These forests occupy one million acres and encompass over 2,000 acres of lakes and 600 miles 

of streams. The State also operates 14 wildlife management areas (WMAs) and 21 Gulf 

Ecological Management sites (GEMS). These sites include Bayou La Croix, Bayou Portage, 

Bellefontaine Marsh, Biloxi River Marshes, Cat Island, Davis Bayou, Deer Island, Escatawpa 

River, Grand Bay, Grand Bayou, Hancock County, Horn Island, Jourdan River, Old Fort Bayou, 

Pascagoula River, Petit Bois, Round Island, Sandhill Crane Refuge, Ship Island, and Wolf River. 

 The state’s foundation is shaped by a deep trough in the continent called the Mississippi 

Embayment. Many of its sedimentary rock formations date to the Paleozoic and Quaternary 

epochs. The northeast corner of the state, for example, rests upon the Mississippian Devonian 

formation of the Paleozoic. From here, various band-like formations run in a northwestsoutheast pattern. These formations include: the Eutaw, Tuscaloosa, and Selma Groups of the 

Cretaceous epoch; the Midway, Wilcox, Claiborne, Jackson, and Vicksburg Groups, and the 

Catahoula formation of the Tertiary epoch. The Citronelle formation is found in the southern 

part of the state along with the Pascagoula and Hattiesburg formations. Coastal deposits dating 

to the Quaternary epoch are located along the Gulf Coast, while alluvium deposits from this 

same epoch comprise a large section of the western part of the state along the Mississippi Delta 

(Dockery, 1997). 

Once relying almost entirely upon cotton and timber, Mississippi’s economy is much 

more diversified and features manufacturing, oil production, services, the military, and 

agriculture. Agricultural products presently include: cotton, cattle, poultry, catfish, soybeans, 

dairy products, and rice. Apparel, furniture, lumber and wood products, electrical machinery, 

and transportation equipment are the state’s main manufactured goods. Mississippi is also home 

to Northrop Grumman Ship Systems, DuPont and Kerr-McGee Chemical, a Chevron oil refinery, 

and Keesler Air Force Base. Offshore oil activities also feature prominently in the Mississippi 

state economy. Despite its investment in oil production, however, the state attempts to strike a 

balance between developing these interests and attending to environmental concerns. 
230

Map 11. State of Mississippi Depicting Gulf of Mexico Labor Market Area (and component 

counties).
231

B. BUILT ENVIRONMENT 

Human Geography and Population Centers. Mississippi had a year 2000 population of 

2,844,658 persons. The population of Jackson, the state capital, was 184,256 persons. 

Mississippi hosts many large population centers. These include: Biloxi (50,644), Columbus 

(25,944), Greenville (41,633), Gulfport (71,127), Hattiesburg (44,779), Meridian (39,968), 

Natchez (18,464), Pascagoula (26,200), Pearl (21,961), Ridgeland (20,173), Starkville (21,869), 

Tupelo (34,211), and Vicksburg (26,407) (U.S. Census Bureau, 2000b). 

Transportation and Communication. The State of Mississippi features a well-integrated 

public highway system. This infrastructure includes 14 federal highways (covering 738 miles), 

and six interstate highways (extending 685 miles). Mississippi residents and visitors enjoy easy 

access to the rest of the United States via Interstate Highways 10, 20, 55, 59, 110, and 220. 

Currently, this infrastructure does not suffer from traffic congestion, thus facilitating tourism, 

quality of life, and industry shipments (Mississippi Development Authority, 2002). 

Mississippi’s railway infrastructure also supports a very competitive shipping industry. 

This infrastructure allows a single rail network to transport shipment throughout the United 

States (Mississippi Development Authority, 2002). In fact, the Kansas City Southern, I & M 

Rail Link, and the Canadian National Railroad together form the NAFTA Railway– a system 

that extends from Canada to Mexico. Twenty rail systems and 3,391 miles of track facilitate this 

industry’s continued economic growth. Five of these railroads are Class 1: Canadian NationalIllinois Central, Burlington Northern and Santa Fe, Norfolk Southern, Kansas City Southern, 

and CRX Transportation (Wilbur Smith Associates 2002b). Amtrak is the state’s primary 

passenger rail service provider (Mississippi Development Authority, 2002). 

 Mississippi also supports 76 publicly owned and four privately owned airports. Of these, 

seven provide commercial service: Tupelo Regional Municipal Airport (Lee County), Mid-Delta 

Regional Airport (Washington County), Jackson International Airport (Rankin County), Golden 

Triangle Regional Airport (Lowndes County), Key Field-Meridian Regional Airport (Lauderdale 

County), Hattiesburg/Laurel Regional Airport (Jones County), and the Gulfport-Biloxi 

International Airport (Harrison County). Gulfport-Biloxi and Jackson International are the 

largest commercial airports. 

 Conveniently located just off I-10 in Gulfport, the Gulfport-Biloxi Regional Airport 

(GBR) offers both passenger and commercial service. Five major airlines providing 23 daily 

departures fly out of GBR: AirTrans Airways, Delta, Continental Express, Northwest Airlines, 

and Southeast Airlines. This airport features two runways: a 9,000 foot all-weather jet runway 

and a 5,000 foot general aviation runway (City of Biloxi, 2004). 

The number of passengers carried at the Gulfport-Biloxi Regional Airport has increased 

over 217 percent during the 1990s. The airport handled nearly 380,000 persons in 1998 and 

approximately 669,000 in 2000. This increase in passenger service is linked to a 60 percent 

increase in airplane seats that premiered in 1999. In anticipation of this increase, the terminal 

was expanded by 130 percent, and over $22 million dollars have been invested in improvements 

since 1993 (Gulfport-Biloxi International Airport, no date). 

The Jackson International Airport is served by 10 major commercial airlines: ASA, 

Comair, Continental, Delta, Northwest Airlines, Northwest Airlink, American Eagle, Skywest, 

Southwest, and USAir Express. This airport has two 8,500-foot runways, and offers 46 daily 

outgoing flights (Jackson International Airport, no date). 
232

Two deepwater ports located on the Gulf of Mexico serve Mississippi’s shipping needs: 

the Port of Pascagoula and the Mississippi State Port at Gulfport. Pascagoula (Jackson County) 

is the largest port in Mississippi and the 16th largest in the nation. The Port was developed and is 

currently managed by the Jackson County Port Authority. During the 1800s, cargo was largely 

cotton and lumber. By the 1940s, private industry realized the development potential of the port 

and its even greater asset– the Gulf of Mexico–and development rapidly ensued (Mississippi 

State Port Authority, 2000). 

The Port of Pascagoula is 11 miles, or two hours pilotage, to the cargo berths from Gulf 

Shipping Lanes. The Horn Island Sea Pass Buoy marks the entrance to the Port Harbor between 

Horn Island and Petit Bois Island in the Mississippi Sound. After clearing Horn Island Pass, the 

Port features a channel depth of 38 feet (Mississippi State Port Authority, 2000). 

 The Port of Pascagoula features two harbors: the Pascagoula River Harbor or West 

Harbor, and the Bayou Casotte Harbor or East Harbor. The West Harbor is 13 miles from the 

buoy, with 350 foot-wide channels and a turning basis of 950 feet. The Pascagoula Harbor 

provides cold storage and four berths. Rail service is available at all terminals. A Port Authority 

locomotive shifts rail cars on port grounds. Ingalls Shipbuilding is adjacent to the Harbor 

(Mississippi State Port Authority, 2000). 

The East Harbor (Bayou Casotte) lies 11 miles from the buoy. This harbor’s channels 

range from 225 to 300 feet in width. Its south and north turning basins are 1,150 and 950 feet, 

respectively. East Harbor contains terminals and docks owned by the Port as well as several 

privately owned docks. One of the docks in this terminal is equipped with two chemical 

pipelines to handle offloading of liquid chemicals. A local towing company operates a barge in 

this Harbor, and two locomotives are available for moving rail cars on port property. In addition, 

Chevron USA Inc. operates three dock facilities specializing in petroleum products (Mississippi 

State Port Authority, 2000). 

 Overall, the Port provides over 800,000 square feet of dockside transit warehouse space, 

1.5 million cubic feet in cold storage, and 10 general cargo berths. The major imports entering 

this port include: chemicals, forest products, bulk fish, and crude oil. Exports include: 

forest/paper products, frozen foods, general and project cargo, bulk and bagged grains, 

machinery, vehicles, fertilizer, and petroleum products. The Port’s on-site services include: 

bunkers, complete full-service ship repair, major drill rig conversion, repair facilities, fresh 

water, electricity, telephone, natural gas, waste disposal, and full-time security (Mississippi State 

Port Authority, 2000). 

Also designated as a Navy Homeport, the Port of Pascagoula is equipped to support the 

nation’s defense efforts. Six vessels are currently stationed at Naval Station Pascagoula located 

on Singing River Island, which is about one mile south of Ingalls Shipbuilding (Mississippi State 

Port Authority, 2000). 

The Mississippi State Port at Gulfport is located in Harrison County. This Foreign Trade 

Zone (#92) is a 184-acre public complex located on the Gulf of Mexico. Established around the 

turn of the 20th century, this port became a state-owned facility in 1961. The Port of Gulfport is 

a component of the Mississippi State Port Authority (Mississippi State Port Authority, 2000). 

The Port’s channel is approximately 250 feet-wide, with an average depth of 36 feet. The 

North and South Harbors, turning basins and berths range from 32 to 36 feet in depth. Carriers 

gain port access via a shipping channel that runs from the Ship Island sea buoys to the Gulfport 

piers (Mississippi State Port Authority, 2000). 
233

The Mississippi State Port has long been known as a tropical fruit port. Indeed, bananas 

(Chiquita and Dole) are the Port’s primary import products, while frozen poultry is its primary 

export. In 2000, Mississippi State Port’s total tonnage (foreign and domestic) equaled 1,982,071 

(Comprehensive Transportation Options, 2003). 

 The Port operates nine public berths: two container, two breakbulk/frozen cargo, one 

breakbulk/refrigerated cargo, one bulk, and three general cargo berths. These range from 525 to 

750 feet in length. Additionally, there are many privately operated berths. Total port storage is 

500,000 square feet covered dry, 100,000 sq. ft. refrigerated, and 93,000 sq. ft. frozen. Port 

operations annually generate $98 million in income, $463 million in sales, and $64 million in tax 

revenue for the State of Mississippi (Comprehensive Transportation Options, 2003). 

 Cargo at the port is moved from vessel-to-vessel, vessel-to-rail, and vessel-to truck. The 

Gulf Coast Waterway provides for shipping through the southern and eastern US, and is located 

about five miles offshore. I-10 is approximately seven miles from the port. CSX Transportation, 

Kansas City Southern, and Canadian National Railway all provide both on- and near-port rail 

services. 

Printed and audiovisual media options are plentiful in Mississippi. Indeed, over 120 

AM/FM radio stations and 18 television stations –Biloxi (one), Columbus (one), Greenville 

(two), Gulfport (one), Hattiesburg (two), Jackson (five), Meridian (three), Natchez (one), and 

Tupelo (two)– broadcast from this state (Gebbie Press, 2001a; Gebbie Press, 2001b). 

While there are many newspapers in Mississippi, the most widely circulated daily papers 

include: the Sun Herald (Biloxi), Daily Leader (Brookhaven), Clarksdale Press Register

(Clarksdale), Bolivar Commercial (Cleveland), Commercial Dispatch (Columbus), Daily 

Corinthian (Corinth), Delta Democrat Times (Greenville), Greenwood Commonwealth

(Greenwood), Daily Sentinel Star (Grenada), Hattiesburg American (Hattiesburg), ClarionLedger (Jackson), Laurel Leader-Call (Laurel), Enterprise-Journal (McComb), Meridian Star

(Meridian), Natchez Democrat (Natchez), Oxford Eagle (Oxford), Mississippi Press

(Pascagoula), Picayune Item (Picayune), DeSoto Times Today (Southaven), NE Mississippi Daily 

Journal (Tupelo), Vicksburg Post (Vicksburg), and the Daily Times Leader (West Point) (Gebbie 

Press, 2001d). Additionally, there are 27 weekly newspapers distributed throughout Mississippi 

(Gebbie Press, 2001c). 

Physical Infrastructure. Major electricity suppliers in Mississippi include: Entergy 

Mississippi (Entergy Corporation), Mississippi Power Company (Southern Company), Coast 

EPA, Dixie EPA, Southern Pine EPA, Pearl River Valley EPA, Twin County EPA, and the 

Tennessee Valley Authority. Additionally, there are numerous private electric power association 

cooperatives that serve the state’s many municipalities (Mississippi Development Authority, 

2002). 

Twelve private distribution natural gas companies, six private direct sales natural gas 

companies, and 48 municipal natural gas systems supply Mississippi’s natural gas needs 

(Mississippi Development Authority 2002). Major distributors include: Mississippi Valley Gas, 

Mid-Louisiana Gas Company, Union Gas Company, Entex, and Willmut Gas and Oil Company 

(Mississippi Development Authority, 2002). 

 The municipalities primarily provide water and sewage services. These include: Natchez 

Water Works, Corinth Gas and Water, Centreville Water Department, Town of Gloster, Town of 

Liberty, Aberdeen water and Light, Vaiden Public Utilities, City of Houston, City of Okalona, 

Town of Ackerman, Port Gibson Water Works, City of Quitman, Stonewall Water Department, 

West Point Water Department, Clarksdale Public Utility Commission, Town of Friars Point, 
234

Town of Jonestown, Crystal Springs Water Department, Hazelhurst Municipal Water System, 

Wesson Water Department, City of Southaven, City of Hattiesburg, Town of Leakesville, City of 

Granada, Bay St. Louis Water Company, City of Biloxi, City of D’Iberville Water and Sewage, 

City of Gulfport, City of Long Beach, City of Pass Christian, City of Clinton, City of Lexington, 

City of Pascagoula, Bay Springs Water Department, City of Laurel, Oxford Water Department, 

City of Purvis, City of Meridian, Tupelo Water and Light Company, Greenwood Utilities, 

Columbus Light and Water, City of Madison, City of Holly Springs, Philadelphia Utilities, 

Decatur Water Works, Starkeville Electric and Water Company, City of Batesville, City of 

Picayune, City of McComb, City of Forest, Raleigh Water Works, City of New Albany, 

Vicksburg Gas and Water Administration, City of Greensville, and Louisville Utilities 

(Mississippi Development Authority, 2002). 

Bell South is the state’s primary telecommunications provider. AT&T and Sprint are the 

major companies offering long-distance service (Mississippi Development Authority, 2002). 

Interaction of Biophysical and Built Environments. Mississippi’s pollution levels are 

moderate, relative to the other 49 U.S. states and six territories. In 2001, it ranked 23rd of 56 (one 

being the dirtiest). In this same year, Mississippi ranked in the 65th percentile for total 

environmental releases (69,195,152 pounds) and in the 25th percentile for its cancer risk (air and 

water) (one being the cleanest). Mississippi’s total cancer risk scores have actually decreased 59 

percent between 1988 and 2001 (Scorecard, 2003). 

 Of Mississippi’s total 2001 environmental releases (69,195,152), air releases accounted 

for 37,063,726 pounds, water releases totaled 12,964,677 pounds, and land releases equaled 

8,119,848 pounds. Also in this year, Mississippi’s off-site transfers totaled 36,749,590 pounds, 

while production-related wastes equaled 418,770,633 pounds (Scorecard, 2003). 

In 2001, Mississippi’s top 25 (of 100) releasing facilities, with their releases in pounds in 

benzene-equivalents, were: Du Pont-Delisle Plant (13,863,356); Vicksburg Chemical Company 

(5,752,145); Mississippi Power Company, Plant Watson (3,984,106); Kerr-McGee Chemical 

L.L.C. Pigment Plant (3,292,931); Georgia-Pacific Corporation (2,700,835); Mississippi Power 

Company Plant Daniel (2,674,050); Misschem Nitrogen L.L.C.(1,916,949); Leaf River Forest 

Products (1,663,598); Central Industries, Incorporated (1,656,774); International Paper-Natchez 

(1,642,314); Chevron Products Company, Pascagoula Refinery (1,594,010); Choctaw Maid 

Farms Carthage Plant (1,470,037); Columbus Pulp & Paper Complex (1,435,470); Quebecor 

World Incorporated, Corinth Division (1,429,125); International Paper, Vicksburg Mill 

(1,347,062); Entergy Baxter Wilson Generating Plant (1,338,414); Mississippi Phosphates 

Corporation (1,278,523); Entergy Gerald Andrus Plant (1,277,207); Kerr-McGee Chemical 

L.L.C. Hamilton Electrolyte Plant (1,203,586); Howard Industries Incorporated (1,000,011); 

R.D. Morrow Sr. Generating Plant (999,750); Sanderson Plumbing Products Incorporated 

(999,571); Sanderson Farms Incorporated (947,000); Bunge N.A. Incorporated (761,600); and 

Vitafoam Incorporated (754,635) (Scorecard, 2003). 

The top 10 chemical releases presenting a cancer risk to the residents of Mississippi in 

2001, with pounds in benzene-equivalents, included: arsenic (organic or inorganic) compounds 

(1,700,000); chromium compounds (470,000); chromium (370,000); lead compounds (310,000); 

dichloromethane (260,000); carbon tetrachloride (140,000); chloroform (110,000); ethylene 

oxide (100,000); nickel compounds (70,000) and benzene (68,000) (Scorecard, 2003). 

In theory, the state’s involvement in the Gulf Ecological Management Sites (GEMS) 

program counter-balances the negative impacts of state industry. Mississippi is home to 21 

GEMS. 
235

C. HISTORY 

Settlement. The Paleo-Indians are the first known inhabitants of the Mississippi area. 

Early Archaic materials have been found in the Yazoo Basin; however materials from the middle 

and late Archaic period are the most widely documented items in Mississippi archaeology. The 

hunters and gatherers of the Poverty Point culture followed the late Archaic period. The largest 

number of Poverty Point culture sites resides in Biloxi Bay (McNutt, 1996). 

 The Tchula or Tchefuncte culture is an extension of the Poverty Point culture; they also 

inhabited present-day Harrison County. This culture engaged in shellfish gathering and some 

basic forms of agriculture. The Tchefuncte culture dispersed northward up the Mississippi valley 

(McNutt, 1996). 

 Other early Native American groups inhabiting the Mississippi include the Chickasaws in 

the north and northeast, the Tunica in the northwest, the Natchez on the Mississippi River, the 

Chakchiuma, Choula, Houma, Ibitoupa, Koroa, Taposa, Tiou, and Yazoo on the Yazoo River, 

the Choctaw in the state’s interior center and south, and the Acolapissa, Bayogoula, Biloxi, and 

Pascagoula along the Gulf Coast. The Choctaw, with 20,000 people, and the Chickasaws and 

Natchez with approximately 4,500 people each were among the most influential tribes (McNutt, 

1996). Deer, bear, onions, grapes, plums, persimmons, berries, nuts and honey served as 

important dietary staples for these Native Americans, but corn production was also important 

(Adair, 1930). By the latter part of the 18th century, disease, warfare, and the federal policy for 

Indian removal had decimated Mississippi’s Indian population (McNutt, 1996). 

 Spanish and French explorers first arrived in Mississippi region in the 16th century. 

DeSoto arrived during his wanders between Florida and Texas. Although in search of riches, the 

introduction of swine was De Soto’s most notable accomplishment in this region (McNutt, 

1996). 

In 1682, 150 years after De Soto’s departure, La Salle ventured down the Mississippi 

River. French adventurers, Iberville, Bienville, and Tonty, also explored the Mississippi River. 

Claiming present-day Mississippi as part of Louisiana for the Crown, Iberville established a 

small colony at Biloxi. 

Following England’s victory over France in the Seven Years’ War, the 1763 Treaty of 

Paris ceded France’s North American holdings to England. Together with land ceded to England 

from Spain in 1775, these holdings became the Territory of Mississippi. The Territory stretched 

from Tennessee to the 31st parallel and from the Mississippi River to the Chattahoochee River. 

Only two settlements existed in the territory at this time: the Natchez District along the 

Mississippi River and St. Stephens on the Tombigbee River. In 1817, Mississippi became the 

29th state admitted to the Union. 

Industrialization. Settled primarily by farmers, Mississippi’s early economy relied 

heavily upon agriculture. Cotton production dominated the state and, in 1839, Mississippi led 

the nation in seed cotton production, harvesting 193 million pounds. A decade later, Mississippi 

harvested 484,292 bales of ginned cotton. Mississippi once again led the nation in 1859, 

producing one million bales of ginned cotton (Lowry and McCardle, 1978). 

 Mississippi’s agrarian economy boomed during the 1840s and 1850s. To meet growing 

demands for cotton, Mississippi’s plantation economy became increasingly reliant on slave 

labor. Consequently, the state’s slave population rapidly increased. In 1820, 32,814 slaves were 

recorded in Mississippi; by 1830, that figure had doubled. In the early 1840s, slaves numbered 
236

436,631. The highest concentration of slaves resided in Issaquena and Washington Counties, 

where blacks outnumbered whites by more than nine to one (Lowry and McCardle, 1978). 

 In January 1861, Mississippi seceded from the Union. By the end of the war, hundreds of 

battles had been fought on Mississippi soil, and an estimated 60,000 Mississippians were lost to 

the service (Bearss, 1973). 

 Despite state imposed restrictions on corporate development, railroad enterprises 

expanded in the 1880s, opening up the great forests of the south. In early 1880, the state had 295 

sawmills with total investments of less than $1 million dollars. By 1910, investments stood at 

$39 million with production at $43 million. At this point, Mississippi ranked third in the nation 

in lumber production. The Illinois Central, the New Orleans and Northeastern, and the Mobile 

and Ohio railroads all transported lumber through the state (Hickman, 1973). 

At the same time, Mississippi’s agricultural production also increased. Between 1890 

and 1930, the number of farms in the state increased from 144,318 to 312,663. President F.D. 

Roosevelt inaugurated several federal programs aimed at increasing agricultural development. 

These programs included the Agricultural Adjustment Administration, Soil Erosion Service, and 

the Civilian Conservation Corps. However, while the advent of farm machinery resulted in 

increased production, it also decreased human employment opportunities. Between 1940 and 

1950, machines replaced more than 80,000 farm employees (Lowry and McCardle, 1978). 

Manufacturing dominated the state’s economy after the turn of the 20th century. Between 

1880 and 1900 alone, the value of manufactured products rose over $33 million. Nevertheless, 

many major industrial companies were reluctant to establish themselves in Mississippi because 

the state’s resources were primarily extractive; readily available sources of energy, like coal and 

hydro-electric power, were lacking (Lowry and McCardle, 1978). 

 Along with increased production of cotton, textiles, wood products, World War II 

brought a number of military concentrations to Mississippi. In particular, the International 

Shipbuilding Company’s operations boomed. By 1940, the shipyard was in the process of 

ramping up for the production of nuclear submarines and other military equipment. 

 The 1950s ushered in an era of civil rights in Mississippi. Despite social and legal 

resistance, the state’s African-American population became increasingly active in civil rights 

attainment throughout the 1960s. 

Mississippi’s urban development really took off in the latter half of the 20th century. In 

1970, the state had two “Standard Metropolitan Areas (SMA)”: the Jackson, SMA (258,906 

residents) and the Biloxi-Gulfport SMA (134,582 residents). Combined, the population of the 

state’s urban areas totaled 986,642, representing a gain of 165,839 residents (17%) since 1960 

(Burrus, 1973). 

Oil. The petroleum industry in Mississippi moved the state’s economy forward in leaps 

and bounds. Although state geologists reported on the Jackson Dome in 1860, oil drilling did not 

occur until after the turn of the 20th century. In 1903, the state’s first well was drilled in Clarke 

County, but was abandoned at a depth of 1,842 feet. In the years following this financial fiasco, 

only a few wells were drilled, but all were dry. By 1925, approximately 53 wells had been 

drilled, but none produced. In 1926, however, the Amory Petroleum Company made the first oil 

discovery at 2,404 feet, and drilling renewed in earnest (Hughes, 1993). 

 In 1928, Robert Steffey established a scouting service in Mississippi. Following, 

Steffey’s report on oil activity in Mississippi and Alabama, oil companies began flocking to the 

area. Indeed, Ohio Oil, Gulf Refining, Sun, Louisiana Oil Refinery, Pure Oil, Texas Company, 

Carter Oil, and Shell Oil all began sending their own geologists and scouts to Mississippi. By 
237

the late 1920s, Gulf, Sun, Lion, Louisiana Oil Refining and Magnolia also began doing surface 

work, leasing, and drilling in the area. In early January 1930, the Mayes “No. 1” in Jackson 

blew gas, producing between 2 and 6 million cubic feet of gas per day. After oil was discovered 

at a second Rainey well, scouts, geologists and landsmen leased every available tract in and 

around Jackson. Drilling atop this anticline, however, led to commercial production of gas rather 

than oil (Hughes, 1993). 

In Hinds and Rankin Counties, 31 wells in the Jackson Gas Field produced 586,634 mcfs. 

of gas. By 1934, the field had 113 gas wells producing over 9,000,000 mcfs. of gas. This 

production increased each year, peaking in 1939 at 15,100,000 mcfs. By 1954, however, all 

wells had stopped producing commercially. Nevertheless, the Jackson Gas Field contributed to 

the building of a major pipeline network in south Mississippi and Alabama, western Florida, and 

eastern Louisiana (Hughes, 1993). 

Following the Jackson Gas Field’s prolific success, state drilling operations increased. 

Sixteen wildcat wells were drilled in 1939 and, by 1940, 57 geophysical crews engaged in 

seismographic research. Further, 35 new companies had been granted business charters for 

Mississippi. According to Hughes (1993), the 1940s was the golden age of petroleum in 

Mississippi. Indeed, over half the oil and gas ever to be discovered in the state occurred during 

this time, much of it as a result of the Tinsley Oil Field in 1939. Following this discovery, 

Union Producing settled just north of Jackson. The Union Producing Company’s “G.C. 

Woodruff No. 1 Well was drilled to a depth of 4,560 feet, after which 235 barrels of oil flowed 

per day. By 1940, the field held 49 producers, bringing in 7,350 barrels of oil a day. In some 

respects, the discovery of the Tinsley Oil Field was the most significant event to occur in the 

southeast, as the Mississippi River barrier had finally been broken. Until 1989, Tinsley Field 

produced 219,494,277 barrels of oil and was Mississippi’s second largest field (Hughes, 1993). 

Offshore oil exploration in Mississippi also began in earnest in 1939. In this year, the 

Phillips Petroleum Company leased roughly 700,000 acres in the Mississippi and began 

conducting seismographic research. However, despite coverage of 236 miles, no structures were 

found and the project was abandoned (Hughes, 1993). 

During the 1940s, the largest gas field (Gwinville in Jefferson Davis County), and the 

largest oil field (Baxterville in Lamar and Marion Counties) were discovered. The Gulf Refining 

Company drilled the first well, which produced low gravity oil, and Superior Oil drilled the 

second well, which produced 582 barrels of oil a day. By the end of the year, Gulf, Sun, and 

Texaco had established 16 wells. The field was redrilled in the 1970s. By 1990, more than 250 

wells had produced nearly 250 million barrels of oil and more than 400 billion cubic feet of gas 

(Hughes, 1993). 

After the oil and gas discoveries at Tinsley and Baxterville, drilling, transporting, and 

refining oil increasingly served as new sources of income for state residents. In 1970, 

Mississippi ranked ninth in the U.S. in oil value and production, and 10th in natural gas 

production. By the early 1970s, half of the state’s counties produced oil, gas, or both, with oil 

production rising to over 180,000 barrels a day and creating a labor force of over 14,000 people 

(Hughes, 1993). 
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D. DEMOGRAPHIC CHARACTERISTICS 

Population Growth. In 2000, the population of Mississippi was 2,844,658 persons. 

This figure represents an increase of nearly one million residents since 1920. The State’s 

greatest amount of growth occurred in the 1970s, when the population grew by nearly 14 percent 

(Table 1) (U.S. Census Bureau, 2000b). 

 

Table 1 

Population Changes, Mississippi State: 1920-2000 

Year Population Change from 

Previous Census 

Percent Change from 

Previous Census 

1920 1,790,618 -- -- 

1930 2,009,821 219,203 12.2 

1940 2,183,796 173,975 8.7 

1950 2,178,914 -4,882 -0.2 

1960 2,178,141 -773 0.0 

1970 2,216,994 38,853 1.8 

1980 2,520,638 303,644 13.7 

1990 2,573,216 52,578 2.1 

2000 2,844,658 271,442 10.5 

 Source: U.S. Census Bureau, 2000b. 

 Ethnicity and Age. In 2000, Caucasians and African-Americans comprised 61 percent 

and 36 percent of Mississippi’s population, respectively (Table 2). In that same year, 27 percent 

of Mississippians were under 18 years old, and 12 percent were 65 years of age and up. These 

figures are comparable to national figures where 26 percent of the population is less than 18 

years of age, and 12 percent are 65 and over. The median age of all Mississippi residents was 

33.8 in that year; the national median age was 35.3 (U.S. Census Bureau, 2000b). 

Table 2 

Racial and Ethnic Populations, Mississippi State: 2000 

Race/Ethnicity Population Percent 

White 1,746,099 61.4 

African American 1,033,809 36.3 

Hispanic 39,569 1.4 

American Indian 11,652 0.4 

Asian 18,626 0.7 

Pacific Islander 667 0.0 

Other Race 13,784 0.5 

Two or More Races 20,021 0.7 

 Source: U.S. Census Bureau, 2000b. 
239

E. ECONOMY 

Income and Poverty. Compared to the U.S. as a whole, Mississippi is a relatively 

impoverished state. In 1999, the median family income was $37,406, or 75 percent of the 

national median ($50,046) (Table 3). Also in 1999, 20 percent of all Mississippians and 16 

percent of all families lived below the poverty threshold. In comparison, only 12 percent of all 

individuals and 9 percent of families were living below the poverty threshold at the national 

level. Further, single females with minor children headed 17 percent of all Mississippi families, 

representing 52 percent of all families living in poverty. At the national level, however, this 

same population headed 12 percent of all families, but represented only 44 percent of families in 

poverty. Public assistance rates, however, were comparable at both state and national levels 

(U.S. Census Bureau, 2000). 

Table 3 

 Income, Poverty and Family Structure, Mississippi State: 1960-2000 

Year Median Family 

Income (2000 

Constant $) 

Change from 

Previous Census 

Persons 

in Poverty 

Female-Headed 

Families with 

Children 

 1960* $2,884 134.8% 54.5% -- 

 1970* $6,068 110.4% 35.4% -- 

 1980* $9,999 64.8% 23.9% -- 

1990 $24,448 144.5% 25.2% 20.9% 

2000 $37,406 53.0% 19.9% 17.2% 

 * Actual dollars. 

 Source: U.S. Census Bureau, 2000b. 

Employment. Mississippi’s economic roots are planted firmly in agriculture. In 1940, 

more persons in Mississippi were employed in agriculture (58%) than in any other state. By 

2000, however, state agricultural employment figures had fallen to 29,800 and employed only 

about 3 percent of the labor force (U.S. Census Bureau, 2000b). 

Services now replace agriculture as Mississippi’s leading employment sector. By 2000, 

services employed 450,850 persons, or more than 38 percent of the labor force (U.S. Census 

Bureau, 2000b). The continuing development of the casino industry along the coast, coupled 

with educational and health services throughout the state, provide constituents with a large 

number of employment opportunities. 

Chemical, lumber, and apparel manufacturing also grew tremendously after WWII. 

However, many apparel manufacturing plants subsequently relocated to Mexico following the 

North American Free Trade Agreement (NAFTA). In 2000, this sector’s employment rates 

reflect a decline of nearly 12 percent since 1990. Nevertheless, manufacturing still employs over 

18 percent of the labor force (Table 4) (U.S. Census Bureau, 2000b). 

 As of April 2003, the 20 largest employers in south Mississippi, with their number of 

employees, were: Keesler Air Force Base, Biloxi (15,674); Northrop Grumman Ship Systems, 

Pascagoula (10,839); Grand Casino/Park Place Entertainment, Biloxi-Gulfport (5,460); Beau 

Rivage, Biloxi (4,150); Stennis Space Center (4,514); Naval Station, Pascagoula (2,100); 
240

Memorial Hospital, Gulfport (2,200); Singing River Hospital, Pascagoula (2,100); President 

Casino, Biloxi (1,911); Harrison County School District, Gulfport (1,625); Gulf Coast Veterans 

Health Care System, Biloxi (1,500); Imperial Palace, Biloxi (1,500); Casino Magic Corporation, 

Biloxi; Bay St. Louis (1,360); Treasure Bay Casino, Biloxi (1,200); Chevron USA, Inc., 

Pascagoula (1,200); Pascagoula Public Schools, Pascagoula (1,152); Hancock Bank (1,138); MS 

Gulf Coast Community College, Biloxi-Gulfport (1,100) and the Isle of Capri Casino, Biloxi 

(1,077) (Mississippi Coast, 2003). As of 2005, there were no “Fortune 1,000” companies in 

Mississippi (Fortune 500, 2005). 

Table 4 

 Employment in Major Industrial Sectors, Mississippi State: 1990-2000 

Year Agric., 

Fishing 

& 

Forestry 

Mining Constr. Manuf. Trans., 

Comm. 

& 

Public 

Util. 

Wholesale

& Retail 

Trade 

Finance, 

Insurance 

& Real 

Estate 

Services Public 

Admin.

Workers in Sector 

1990 37,314 10,552 65,847 240,947 67,857 204,822 48,149 303,545 49,770 

2000 29,787 9,686 88,818 215,203 63,189 178,363 55,774 450,852 60,223 

Percent of Workers in Sector 

1990 3.6% 1.0% 6.4% 23.4% 6.6% 20.0% 4.7% 29.5% 4.8% 

2000 2.5% 0.8% 7.6% 18.3% 5.4% 15.2% 4.8% 38.4% 5.1% 

Growth from Previous Census 

2000 -25.2% -8.9% 34.9% -11.9% -7.4% -14.8% 15.8% 48.5% 21.0% 

Source: U.S. Census Bureau, 2000b. 

Industry. “Services,” followed closely by the government and manufacturing sectors, 

provide the mainstay of Mississippi’s economy. In 1999, workers’ earnings topped $38.4 

million, reflecting an increase of almost $15.7 million since 1990. Nearly a quarter of these 

earnings came from the services sector alone. Further, since 1990, earnings in this sector 

increased by $4.8 million, or 30 percent of the total change during these years. “Health” is the 

primary service sub-sector in terms of earnings, constituting 8 percent of total earnings in 1999. 

In 1999, earnings from the government totaled over $8.2 million, or 21 percent of total earnings. 

Earnings in this sector increased over $2.9 million from 1990, reflecting an increase of almost 19 

percent. In this same year, manufacturing brought in $7.65 million, or 20 percent, in workers’ 

earnings. Earnings in this sector increased by nearly $2 million, and accounted for 13 percent of 

total change. Meanwhile, earnings in oil and gas extraction accounted for less than 1 percent of 

total earnings (Table 5) (U.S. Department of Commerce, Bureau of Economic Analysis, 2000). 

In June 1999, there were 1,101 banking and savings institutions in Mississippi, with 

deposits totaling over $19.2 billion. Expenditures in federal funds and grants in this same year 

totaled over $16.4 billion (U.S. Census Bureau, 2002). 
241

Table 5 

 Earnings in Major Industry Sectors and Selected Sub-sectors, 

Mississippi State: 1990-1999 

Industry Earnings (Constant 2000 

$1000’s) 

Share of

Earnings

Change Share of 

Change 

 1990 1999 1999 1990-1999 1990-1999

Earnings $22,749,767 $38,423,554 100.0% $15,673,787 100.0% 

Farm Earnings $329,014 $865,390 2.3% $536,376 3.4% 

Ag. Services, Forestry, and 

Fishing $161,123 $334,363 0.9% $173,240 1.1% 

 Fishing $20,743 $17,503 0.0% -$3,240 -0.0% 

Mining $201,967 $313,888 0.8% $111,921 0.7% 

 Oil and gas extraction $185,758 $273,665 0.7% $87,907 0.6% 

Construction $1,161,329 $2,390,111 6.2% $1,228,782 7.8% 

 Special trade contractors $618,726 $1,394,547 3.6% $775,821 4.9% 

Manufacturing $5,652,720 $7,650,875 19.9% $1,998,155 12.7% 

 Fabricated metal prods. $351,613 $444,081 1.2% $92,468 0.6% 

 Indust. machine & equip. $382,239 $656,158 1.7% $273,919 1.7% 

 Food and kindred $481,956 $653,974 1.7% $172,018 1.1% 

 Chemicals and allied $219,386 $371,892 1.0% $152,506 1.0% 

 Petroleum and coal $100,774 $142,664 0.4% $41,890 0.3% 

Transportation and Public 

Utilities $1,526,479 $2,395,343 6.2% $868,864 5.5% 

 Trucking & warehousing $513,338 $914,243 2.4% $400,905 2.6% 

 Water transportation $66,529 $60,550 0.2% -$5,979 -0.0% 

 Transportation by air $104,467 $183,392 0.5% $78,925 0.5% 

Wholesale Trade $1,107,906 $1,802,216 4.7% $694,310 4.4% 

Retail Trade $2,258,265 $3,783,270 9.8% $1,525,005 9.7% 

 Eating & drinking places $392,275 $756,832 2.0% $364,557 2.3% 

Finance, Insurance, and Real 

Estate $1,011,659 $1,782,402 4.6% $770,743 4.9% 

Services $4,037,169 $8,866,529 23.1% $4,829,360 30.8% 

 Business services $484,944 $1,062,867 2.8% $577,923 3.7% 

 Health services $1,594,659 $3,094,201 8.1% $1,499,542 9.6% 

 Legal services $342,645 $648,268 1.7% $305,623 1.9% 

 Engineering and 

 management services $316,218 $636,943 1.7% $320,725 2.0% 

Government $5,302,136 $8,239,185 21.4% $2,937,049 18.7% 

 Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2000. 
242

Marine-based Activities. While the commercial fishing industry has declined in terms of 

overall employment and growth since the last decade, it still remains a strong contributor to the 

Mississippi economy. The commercial fishing industry contributed $17.5 million in workers’ 

earnings in 1999, representing a decrease of $3.2 million from the 1990 figure of $20.7 million 

(Mississippi Department of Marine Resources, no date). In 2002, the State of Mississippi landed 

some 16.7 million pounds of shrimp, with a total dockside value of $29.8 million dollars. 

Wholesale shrimp prices have decreased over the last few years due to a flood of foreign shrimp 

imports and rising operating costs. In order to aid the hard hit shrimping industry, Congress 

appropriated $35 million in February 2003 for allotment to the states that produced the highest 

volume of shrimp. The Gulf of Mexico states received $17.5 million, with the State of 

Mississippi receiving $1 million. Approximately $900,000 was distributed directly to 

commercial shrimpers, with $20,000 going to shrimpers with a demonstrated record of 

compliance with the Turtle Excluding Devices (TEDS), and $80,000 to the Mississippi Seafood 

Marketing Program for promoting shrimp caught in Mississippi waters (Mississippi Department 

of Marine Resources, no date). 

Recreational fishing is also a strong contributor to state economy. The State hosts 

approximately 18 saltwater fishing tournaments between May and November each year 

(Mississippi Department of Marine Resources, no date). In 2004, 379,260 licensed recreational 

fishery participants (315,610 residents; 63,650 non-residents) spent approximately $210 million 

dollars on fishing-related products and services in Mississippi. They also generated a total 

economic impact of nearly $1.3 billion dollars in this same year (Mississippi Department of 

Fisheries, Wildlife and Parks, 2005). 

 In 1992, the Wetlands Protection Act instigated the development of the Mississippi 

Department of Marine Resources’ Coastal Preserves Program. This department manages the 

state’s coastal wetland ecosystems. Mississippi has 21 coastal preserve sites, encompassing 

30,000 acres of coastal wetland habitat (Mississippi Department of Marine Resources, no date). 

 Mississippi also shares a Sea Grant Consortium with its neighbor, Alabama. The 

Mississippi-Alabama Sea Grant Consortium was established in 1972 and consists of nine 

universities and laboratories: Auburn University, Dauphin Island Sea Lab, Jackson State 

University, Mississippi State University, University of Alabama, University of Alabama at 

Birmingham, University of Mississippi, University of Southern Mississippi, and University of 

South Alabama (Mississippi-Alabama Sea Grant Consortium, 2004). It also consists of two 

marine extension offices (the Auburn Marine Extension and Research in Mobile, and the 

Mississippi State University Cooperative Extension Service in Biloxi) and the MississippiAlabama Sea Grant Legal Program in Oxford. This team works toward the sustainable 

development of both coastal and marine resources in these two states, including 3,200 square 

miles of inland water and 966 miles of estuarine shoreline (Mississippi Department of Marine 

Resources, no date). 

Military Installations. Mississippi is home to five major military installations: Keesler 

Air Force Base (AFB), Columbus Air Force Base, Naval Air Station Meridian, Naval Station 

Pascagoula, and the Naval Construction Battalion Center. Mississippi’s military bases directly 

employ approximately 36,000 people and have an annual payroll of more than $1.2 billion (NGA 

Center for Best Practices, 2004). 

Keesler AFB is located in Biloxi on the Gulf Coast of Mississippi. This base is home to 

the second largest medical center in the Air Force. Additionally, the 81st Medical Group is 
243

stationed at Keesler. Over 26,500 military personnel, civilians, contract workers, and family 

members live on base (Mississippi Development Authority, 2002). 

 Columbus AFB is home to over 6,200 military personnel, contract workers, family 

members, and civilians. It is located in Columbus, Mississippi (Lowndes County). Originally an 

Army Air Force flying school and home to the Strategic Air Command’s B-52s, the base is now 

a training center for over 25 percent of Air Force pilots (Mississippi Development Authority, 

2002). 

 Naval Station Meridian provides jobs to and houses over 4,000 military personnel and 

civilians. This unit provides operational support for Training Air Wings ONE. This base has the 

distinction of being the first unit to use the “single base” method to train jet pilots. Nearby 

communities include Kipling (Kemper County) and the town of Marion (Lauderdale County) 

(Mississippi Development Authority, 2002). 

 Naval Station Pascagoula is located in Jackson County on the mainland side of the 

Mississippi Sound in the northeast portion of the Gulf of Mexico. This 187-acre base is the 

homeport for six Navy ships, and employs and houses over 2,000 active duty military and 200 

civilians (Mississippi Development Authority, 2002). An additional 4,100 dependents, 850 

reservists and 4,000 retirees live in Jackson County (Naval Station Pascagoula). Total economic 

impact of this base on the local economy is estimated at $100 million, and includes payrolls, 

contracts, goods and services (Naval Station Pascagoula, 2000). Communities within 10 miles of 

Naval Station Pascagoula include Escatawpa, the City of Gautier, the City of Moss Point, and the 

City of Pascagoula. 

The Naval Construction Battalion Center, “Home of the Atlantic Fleet Seabees,” is 

located in Gulfport. It was established in 1942. This base employs approximately 4,000 military 

personnel and 800 civilians (Mississippi Development Authority, 2002). Biloxi, D’Iberville, 

Gulfport, and Ocean Springs are all located within 10 miles of the Center. 

Recreation and Tourism. Mississippi offers a wide range of tourist attractions and 

recreational activities. Antebellum architecture, historic Civil War sites, and Shiloh State Park 

define the Hills Region in northern Mississippi. The Delta Region in the northwest and the Pines 

Region in the east provide championship golf courses, while the Capital River Region in the 

south west offers riverboat gambling. Additionally, there are two Indian gaming casinos in the 

Pines region. Finally, tourists and residents alike enjoy the Coastal Region’s beautiful white, 

sandy beaches, casinos, festivals, and historic re-enactments. Indeed, this region is known as the 

“playground of the South” (Mississippi Government, no date). 

 Hunting and fishing are popular recreational activities for both residents and tourists. 

Public hunting is available at 31 state wildlife management areas and seven National Wildlife 

Refuges. Recreational fishing opportunities are numerous as well. In addition to the Mississippi 

Gulf Coast, there are some 14,000 miles of streams, 345,000 acres of ponds and 295,000 acres of 

lakes and reservoirs from which to fish (Forest and Wildlife Research Center, 1998). 

Freshwater fish include bass, bluegill, crappie and catfish. Saltwater fish include shark, Spanish 

mackerel, king mackerel, redfish, speckled trout, flounder, shrimp, oysters, and crabs 

(Mississippi Development Authority, 2002). 

 There are six national parks in Mississippi: the Gulf Island National Seashore, Jeff 

Busby, Natchez National Park, Rocky Springs, Tupelo National Battlefield Park, and the 

Vicksburg National Military Park. Mississippi also features 28 state parks, 15 boatway parks 

(Pearl River), 6 National Forest recreation areas, and 10 Corps of Engineers recreation areas 

(Mississippi Government, no date). 
244

 Gaming is particularly important to Mississippi’s economy. Indeed, “tourism and 

recreation” is the second largest service sector in the state, and seven of the 20 largest employers 

in Mississippi are gaming casinos. Significantly, casinos provided 35,206 jobs in 2000, and 

contributed $2.6 billion (43%) in statewide income. Further, $209.5 million in gaming-related 

general fund tax revenues comprised 43 percent of all tourism and recreation general fund tax 

revenues in the fiscal year 2000 (Mississippi Gaming Association, no date). Importantly, 25 

percent of all gaming revenue goes to the Mississippi Department of Transportation annually 

(Mississippi Gaming Association, no date). 

 In 1999, 32 million tourists visited Mississippi; daily overnight visitor expenditures 

averaged $92.00–which is $3.00 more than the national average of $89.00. Also in 1999, 

tourism employed 89,600 workers, while, in 2000, it provided 94,100 jobs. Additionally, 

tourism and recreation generated $5.6 billion in statewide income in 1999, and $6.1 billion in 

2000. Finally, the Tourism and Recreation General Fund state tax revenue totaled $444.8 

million in 1999, and $482.3 million in 2000 (Mississippi Development Authority, 2002). 

F. LOCAL GOVERNMENT 

 

Governmental Structure. Mississippi is governed according to the articles of its 1890 

State Constitution. The state entertains a tripartite governmental structure with Executive, 

Judicial and Legislative branches. The governor, who is elected to a four-year term, is the state’s 

chief executive. Other elected executive positions include: lieutenant governor, secretary of 

state, treasurer, auditor of public accounts, attorney general, commissioner of agriculture and 

commerce, and the commissioner of insurance. A 52 member Senate and 122 member House of 

Representatives comprise the legislative branch of the Mississippi government. Nine justices 

preside over Mississippi’s Supreme Court. Each popularly elected justice serves an eight-year 

term. Seventy-nine popularly elected justices also serve in Mississippi’s chancery and circuit 

courts (Mississippi Lawyers, 1996). Administration of local government in Mississippi’s 82 

counties is attended to by an elected five-member board of supervisors (Mississippi Lawyers, 

1996).

Revenues and Taxation. For the fiscal year ending June 30, 2000, Mississippi’s tax 

commission receipts equaled $3,284,945,805. The following tax bases contributed to this total: 

sales tax ($1,371,104,397); individual income tax ($1,005,035,455); corporate tax 

($295,735,006); use tax ($158,938,305); gaming fees and taxes ($158,227,572); insurance 

premium tax ($96,272,925); tobacco tax ($56,384,540); alcoholic beverage tax ($42,384,613); 

beer and wine tax ($30,801,274); estate tax ($21,960,435); oil severance tax ($10,185,324); auto 

tag fees ($10,276,195); installment loan tax ($8,043,793); casual auto sales ($7,001,149); gas 

severance tax ($4,814,674); title fees ($3,856,232); petroleum tax ($0); miscellaneous tax 

($2,723,916); nuclear in lieu ($1,200,000); and other collections ($0) (Mississippi State Tax 

Commission, no date). 

G. SOCIAL CONTEXT 

Education. As of 2000, there were 153 school districts in Mississippi and 874 public 

schools: 435 elementary, 172 middle schools, 182 high schools, 63 combination schools, 207 

private schools, and 22 “other” schools, and (U.S. Department of Education, 2002b). 
245

In the 2001-2002 school year, 491,686 public students and 51,369 private students were 

enrolled in Mississippi K-12 schools. In that year, public schools employed 30,051 faculty 

members, 31 percent of which held advanced degrees. Private schools employed 3,884 teachers, 

with a per student ratio of 1:7 (Heritage Foundation, 2004). During this school year, the overall 

public student to teacher ratio was 16:1. Per capita public student expenditures totaled $4,777; 

attendance rate was 97 percent (Office of Accountability, 2000). 

Teacher’s salaries in Mississippi have been consistently lower than that of their peers in 

other states. In the 1999-00 school year, the average teacher’s salary was $31,897. That 

compensation was equivalent to 76 percent of the national average (EducationAmerica.Net, 

2003). In the 2001-02 school year, the average teacher salary equaled $33,295; or 75 percent of 

the national average ($44,367). In that year, Mississippi ranked 48th in the nation in terms of 

salary for public school teachers; it also ranked the lowest for all the southeastern states 

(EducationAmerica.Net, 2003). By the 2003-04 school year, the average elementary and 

secondary school teacher salary was $34,555. This compares to the national average of $45,771. 

The State of Mississippi again ranked 48th of 51 states (ranking includes the District of 

Columbia) in terms of teacher salaries for that year. California offered the highest teacher’s 

salary for that year, paying, on average, $55,693 (U.S. Census Bureau, 2005). 

Students in Mississippi elementary and middle schools are falling below national reading 

and math proficiency levels. For example, in the 1998-99 school year, only 46 percent of all 

fourth graders and 51 percent of all eighth graders met state proficiency levels in 

reading/language arts, while only 50 percent of all fourth graders and 48 percent of all eighth 

graders met state proficiency levels for mathematics. Also in the 1998-99 school year, high 

school seniors in Mississippi averaged 19.9 on the ACT; a score which falls below the national 

average of 21.0 (U.S. Department of Education, 2002b). 

At the same time, the high school dropout rate for the State of Mississippi in the 2000-

2001 school year (4.9%) parallels the national high school dropout rate. The percentage of 

Mississippi high school graduates planning to attend college in the 2001-2002 school year (73%) 

also matched the national level (73%) (Table 6) (U.S. Department of Education, 2002a). 

There are nine state-supported four-year universities (2002 enrollment = 66,016), eight 

independent non-profit four-year colleges (11,030), five sectarian institutions of higher education 

(984), 15 community colleges (123,601), and three independent, non-profit, two-year colleges 

(779). In total, 202,410 students were enrolled in Mississippi’s institutions of higher education 

in the 2002 school year (Mississippi Development Authority, 2004). 

Table 6 

 Educational Attainment of Adults (age 25+), Mississippi State: 1990-2000 

Year Educational Attainment of Adults Ratio to Nation 

 0-8 

Years 

Some High 

School 

High School

Diploma 

Some 

College, 

No Degree

BA/BS 

or More

High School 

Diploma 

BA/BS 

or More

1990 15.6% 20.1% 27.5% 16.8% 14.7% 0.92 0.72 

2000 9.6% 17.5% 29.4% 20.9% 16.9% 1.03 0.69 

 Source: U.S. Census Bureau, 2000b. 
246

Health and Welfare. As of 2001, Mississippi had 96 hospitals with 4.8 beds for every 

1,000 persons. There were also 185 certified nursing facilities with a total of 16,008 beds. 

Average facility occupancy rate for certified nursing facilities was 89 percent. Overall, the 

health care industry employs 8 percent (86,310) of the Mississippian workforce, which is slightly 

higher than the national rate of 7 percent (Kaiser Family Foundation, 2003). 

Mississippi has a higher teen birth rate comparative to the national rate. In 2001, 7,370 

(17%) of all live births were to teenage mothers (38% Caucasian, 59% African-American, 4% 

Hispanic). At the national level, teenage mothers accounted for 11 percent (445,944) of all live 

births (43% Caucasian, 25% African-American, and 29% Hispanic). Regardless of age, 83 

percent of mothers began prenatal care during their first trimester in Mississippi, which is 

comparable to the national rate (Kaiser Family Foundation, 2003). 

Regarding youth welfare, Mississippi did not perform well compared to national 

averages. In 2001, 11 percent (4,505) of infants born in Mississippi were low-birth weight 

compared to 8 percent at the national level. Infant mortality (deaths per 1,000 live births) is also 

much higher in Mississippi (11) than at the national level (7). Additionally, nearly 44 percent of 

all children in Mississippi lived in high poverty neighborhoods in 2000, compared to only 20 

percent nationwide (Kids Count, 2000). In that same year, nearly 12 percent of all 

Mississippians between the ages of 16 and 19 were neither in school nor working, compared to 9 

percent nationwide. 

Religion. In 2000, 55 percent of Mississippi state residents claimed a religious 

affiliation. Forty percent identified as Evangelical Protestant, 10 percent as Mainline Protestant, 

4 percent as Catholic, and 1 percent “other.” Forty-five percent of residents did not claim a 

religious affiliation in that year (American Religion Data Archive, 2002). 

H. ISSUES OF CONCERN 

According to a state official, the State of Mississippi’s greatest concerns include a 

relatively weak economy, educational shortcomings, infrastructure inadequacies, and a health 

care system that cannot accommodate its growing population. High poverty and crime rates are 

ancillary concerns. 

 Education is seen as key to the state’s future. An educated work force will attract new 

businesses and industry. Yet, the state’s Department of Education cannot attract a sufficient 

number of qualified educators and superintendents, especially in light of federal desegregation 

demands. Hence, low salaries and high discipline problems in the public school system 

discourage more highly qualified applicants. Recruiting a more ethnically diverse upperadministrative staff and faculty is also a significant challenge. 

 Developing an infrastructure that will support rapid population increases is also a state 

challenge. Heavy traffic and congestion burden the coastal regions and other urban areas of 

Mississippi. However, limited local and state funds undermine development. Recently, the 

Senate passed a bill allowing local governments or partnerships to provide funds for highway 

improvement, while promising reimbursement when money became available. 

 State officials are additionally concerned with a healthcare system that cannot meet the 

needs of its growing constituency. This lack is especially dire in the State’s more rural areas. 
247

I. BILOXI, MISSISSIPPI: LABOR MARKET AREA 

 Introduction. The purpose of this project is to understand how structural changes in 

industry, particularly oil and gas related industries, impact local communities and public 

institutions within the Gulf of Mexico region. The task at hand requires that we utilize a variety 

of data sources and methodologies to provide a more complete narrative of the phenomenon in 

question. We also utilize a rather unique definition of local communities: Labor Market Areas. 

Labor Market Areas (LMAs) are defined by patterns of transportation to and from work both 

within and across county boundaries. Therefore, the areas contained within LMAs better 

empirically represent local social systems, communities, and economies (Killian and Tolbert, 

1993). In this section, we provide a historical profile of the Biloxi LMA. In particular, we 

examine the inter-connection between industry structure change, population and social 

organization dynamics (growth, composition, educational attainment), and local public finances. 

Located along the Gulf of Mexico, the greater Biloxi Labor Market Area (LMA) is 

centered between two major ports: New Orleans in Louisiana and Mobile in Alabama. It 

encompasses seven Mississippi Counties: George, Greene, Hancock, Harrison, Jackson, Pearl 

River, and Stone (Map 12). The U.S. Census Bureau estimates the year 2000 population of these 

seven counties at 463,150. 

The Biloxi economy has been a combination of recreation and manufacturing related to 

the shipyards in Pascagoula, Mississippi. More recently the economy has added casino 

gambling, particularly along the coast in Harrison County. In the analysis that follows, we 

explore historical industry changes in the Biloxi LMA and how these changes affected other 

socioeconomic characteristics, such as population, education, and local government finances. 

At the heart of this analysis are changes in the industries related to offshore oil and gas 

exploration and production, particularly the boom and bust periods of the 1970s and 1980s. In 

the profile that follows, we first present an overview of the significance of the project, followed 

by a theoretical framework with which to examine the interconnection between industry and 

local community structural changes. 

The analysis itself is divided into three units of time: 1940-1970, 1970-1990, and 1990-

2000. The first unit of time presents a brief industry history of the Mobile LMA from 1940 to 

1970, followed by a minimalist overview of population changes. In the second unit, we examine 

all oil and gas and related industries within the LMA for the years between 1970 and 1990, 

inclusive. We then link industry changes during this period to fluctuations in population 

structure and dynamics, education, and local government finance. The third unit examines the 

period between 1990 and 2000 to assess the fallout of the oil and gas industry during the decade 

immediately following the bust. 

Industry Overview. The oil and natural gas industry experienced a boom during the 

1970s (Gramling, 1996; Seydlitz and Laska, 1994). Rising demands for on-shore domestic 

supplies of oil, and political instability surrounding OPEC and the Middle East increased 

offshore oil and natural gas exploration activities in the Gulf of Mexico (Gramling, 1996; 

Gramling and Freudenburg, 1990). The subsequent “boom” is reflected in the LMA 

employment data. For example, in 1970, approximately 71,000 workers were directly employed 

full-time in the oil and natural gas industry in the coastal economies of the Gulf of Mexico. By 

1980, that number had grown to over 145,000, a net increase of 105 percent––and those numbers 

do not reflect changes in oil and gas multiplier industries such as equipment manufacturing, 

water transportation, wholesale trade, and general services. 
248

Map 12. Biloxi, Mississippi Labor Market Area.
249

During the early 1980s, however consumption trends began to change and affect 

employment. First, a gradual drop in demand occurred as substitution effects played-out, with 

actors reducing their consumption of oil and gas by-products (e.g., buying more fuel efficient 

cars; see Gramling, 1996). Additionally, the oil and natural gas industries experienced a sharp 

decline in the mid 1980s brought about largely by overproduction among OPEC members trying 

to “starve” weapon shipments into warring Iran and Iraq (Heilbroner and Milberg, 1999). 

Between 1980 and 1990, the total number of workers in the oil and natural gas industries in the 

coastal economies of the Gulf of Mexico declined from over 145,000 to 112,000, a decrease of 

23 percent. These patterns are reflected in the price of oil over that period (prices per barrel are 

based on 1998 adjusted dollars) (Figure 1). 

 

0

10

20

30

40

50

60

196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998

 Figure 1. Crude Oil Prices, U.S. Average: 1969-1998 (Energy Statistics Source Book, 

 1999). 

The coastal economies of some oil dependent LMAs in the Gulf of Mexico were more 

severely impacted by the oil bust than others. For example, the Lafayette LA economy lost 

14,000 jobs in the oil and natural gas extraction industries between 1982 and 1988, a 63 percent 

loss. Other industries throughout the greater Lafayette area were affected as well, with total 

employment dropping from 200,000 workers in 1982 to 160,000 workers in 1987.1

 These losses 

translated into an unemployment rate of more than 16 percent in 1988. However, the Lafayette 

area was not the hardest hit by the oil bust; unemployment rates exceeded 20 percent in some 

other coastal communities (Gramling, 1996). 

 

1 Source: U.S. Department of Commerce’s Regional Economic Information System of the 

Bureau of Economic Analysis. 
250

 Sociology of Regional Processes. To understand how industries, public institutions, and 

communities change in response to fluctuations in the oil and gas industries, we draw upon the 

assumptions of human ecology theory. One of these assumptions is that the range and diversity 

of community industry functions are important determinants of community size, complexity and 

organization (see Frisbie and Poston, 1976; Hawley, 1986; Mencken, 1997; Murdock et al., 

1993; Nord and Luloff, 1993; Poston, 1984; Frisbie and Poston, 1978). Communities also can be 

placed along a continuum of industry structures, from less to more diverse. Generalist 

communities (those with a variety of industries) and specialist communities (those with one or 

two main industries) both have advantages and disadvantages for growth and social organization 

at the local level (Poston, 1984). 

Generalist communities are larger in size and more complex in structure. Fluctuations in 

one industry do not reverberate throughout the entire system so long as the other industries upon 

which the community depends for employment are independent of those shocks and remain 

relatively stable. As a result, generalist systems tend to be more stable over time. This 

longitudinal stability is important for local public institutions, such as schools and financing of 

local government services, because it allows administrators to plan for incremental changes in 

the supply of revenues and the demand for resources. Generalist systems can also support more 

stable population growth patterns (Frisbie and Poston, 1976, 1978; Micklin and Choldin, 1984; 

Poston, 1984). 

 Specialist communities, on the other hand, are primarily dependent upon one or two 

industries for subsistence. Communities that rely upon natural resource-based industries, such as 

coal, oil/gas, timber, or fishing, are specialist communities (Gramling and Freudenburg, 1990; 

Hawley, 1986; Rural Sociological Society Task Force, 1993). 

A second assumption of human ecology theory is that significant industry contraction 

(and expansion) will alter drastically the social organization of the community (England and 

Albrecht, 1984; Jobes, 1999; Krannich and Grieder, 1984). During industry contraction, jobs are 

lost, and an out-migration of younger population typically results (RSS, 1993). The negative 

effects of these cycles, particularly in rural America, manifest in social disorganization, higher 

crime rates and other social problems (Freudenburg and Jones, 1991; Jobes, 1999). 

Third, the human ecological approach assumes that local communities are ecosystems 

comprised of four basic and interdependent components: population, organization, environment, 

and technology (Hawley, 1986; Poston, 1984; Micklin and Choldin, 1984). This approach 

further assumes that changes in one of these four components will create changes throughout the 

community. For example, changes in the external environment (e.g., oil prices dropping 

significantly) will affect changes in the other components of the community (jobs and 

population) that rely upon the oil and gas industry for employment (Gramling, 1996). 

Additionally, changes in the technology used in the production of sustenance (e.g., 

mechanization of coal extraction) will affect the population and organization of the ecosystem 

(loss of jobs and out-migration), independent of any changes in the external environment. Not 

surprisingly then, economies that were most involved in the exploration and production of oil 

and natural gas in the Gulf of Mexico region were also most affected by changes in the oil and 

gas industry. Those communities that are more concentrated in multiplier industries will also be 

affected, but not as directly. 

First Unit of Analysis: Biloxi LMA Employment, 1940-1970. General industry trends 

are illustrated for the decades between 1940 and 1970, inclusive (Figure 2). Total employment 

in the Biloxi LMA remained relatively flat between 1940 and 1950. In 1940, manufacturing was 
251

the dominant industry, employing 32 percent of the workforce (10,000 workers). Agriculture 

(19%), services (19%) and wholesale/retail trade (15%) lagged behind manufacturing. The 

mining industry, where oil and gas workers are employed, represented less than 2 percent of the 

labor force from 1940 through 1970, and 2000 as well. 

0 

20,000

40,000

60,000

80,000

100,000 

120,000 

1940 1950 1960 1970 1980 1990 2000 

Agric. Mine Construction Manufacturing Trans.Pub.Util Whole/Retail Trade Services

 Figure 2. Major Industry Employment, Biloxi LMA: 1940-2000 (U.S. Census 

 Bureau 2000b). 

 

 Total employment in the Biloxi LMA economy grew by 60 percent between 1950 and 

1960. Services led that growth rate, increasing 158 percent over the course of the decade. And, 

for the first time, manufacturing was not the largest employer in the Biloxi LMA. Services 

employed 36 percent of the total employment, compared to 24 percent for manufacturing. 

Agriculture’s share of the total labor force declined to less than 5 percent by 1960. 

 The data for 1970 show the same distribution of workers as in 1960. Employment in the 

Biloxi LMA grew at 40 percent between 1960 and 1970, with near equal percentage increases 

across all categories. Services continued as the largest employment sector with 36 percent of the 

total labor force. Employment in the manufacturing sector increased slightly by 2 percent to 26 

percent in 1970. 

Biloxi LMA Demographic Changes: 1940-1970. Several important structural industry 

changes occurred in the Biloxi LMA between 1940 and 1970. Agriculture and manufacturing 

declined in importance, while trade and services increased. Total employment in the LMA also 

grew by 190 percent between 1940 and 1970. Population growth during that period reflects 

those structural changes. In 1940 126,224 people lived in the Biloxi LMA. By 1970, population 

in the LMA was over 463,000. The population in Harrison County, the LMA’s most populated 

county, grew by more than 160 percent between 1940 and 1970. At the same time, the Census 

data show that the racial composition of the LMA changed slightly. The black population 

declined from 19 percent to 17 percent, while the white population increased from 79 percent to 
252

83 percent. This trend is consistent with the racial composition changes in most southern labor 

markets during the latter half of the 20th century. 

 Second Unit of Analysis: Biloxi LMA Employment, 1970-1990. Between 1970 and 

1980, employment in the Biloxi LMA grew by 40 percent. Growth was greatest in services 

(53%), manufacturing (23%) and wholesale/retail trade (65%). Mining experienced some 

growth in the 1970s, but employed only 2 percent of the total Biloxi LMA workforce in 1980. In 

1990, mining employment again dropped below 1 percent. 

 During the 1980s, total employment in the Biloxi LMA grew by 16 percent. Growth 

continued growth in the manufacturing, services and wholesale/retail trade sectors. The service 

sector employed the majority of the workforce (41%). This trend is inconsistent with 

employment trends that occurred in other LMAs in the GOM region, particularly those 

connected to the oil and gas industry (e.g., Lafayette and Lafourche) where employment growth 

rates were negative or very small. 

 Although manufacturing declined between 1940 and 1990, this industry continued to 

employ a significant segment (over 20%) of the labor force in 1990. At the same time, services 

gradually emerged as the dominant service sector, as it did in many other LMAs. We next 

analyze the Biloxi LMA employment data in order to better understand local employment 

patterns between Census years. 

 The annual full- and part-time employment data for the Biloxi LMA show a steady 

increase in total employment from 1969 until 1977 (Figure 3). These data also show that 

employment levels fluctuated modestly at the 1977 level until the mid-1980s when employment 

began to grow again. 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

1969

197019711972197319741975

1976

0

1977197819791980198119821983

1984198519861987198819891990

1991

199219931994199519961997

19982000

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

1969

197019711972197319741975

1976

1977197819791980198119821983

1984198519861987198819891990

1991

199219931994199519961997

19982000

1999

 Figure 3. Annual Employment, Biloxi LMA: 1969-2000 (U.S. Dept. of Commerce, 

 Bureau of Economic Analysis, 2000). 
253

 In order to establish when, or if, unexpected changes in employment occurred in the 

Biloxi LMA, we performed a time-series forecasting analysis. First, three-year moving averages 

(current plus previous two years) of employment levels are computed. Second, at each year the 

expected value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). The following figure illustrates the actual employment data charted with the threeyear employment moving average for each year (Figures 4). The data in Figure 4 show sustained 

employment growth throughout the 1990s, with employment levels exceeding expectations in 

1993, 1994, 1998, and 1999. 

 Figure 4. Forecasting Analysis for Employment, Biloxi LMA: 1971-1999. 

 

 We turn now to an analysis of annual employment data in order to uncover in which 

industry sectors these cycles are present in the Biloxi LMA. The figure below shows annual 

employment data for nine general industry categories for the years between 1969 and 2000, 

inclusive (Figure 5). Manufacturing and services are the key sectors of interest. Our forecasting 

analysis on manufacturing employment shows that 1972, 1979, 1980, and 1983 are crucial years 

for manufacturing. In 1972, manufacturing employment was greater than expected, while in 

1979 and 1980 manufacturing employment dropped-off considerably. There was a further drop 

in employment in 1983. These findings reflect what we would expect given the business cycles 

of the 1970s and 1980s (recession 1979-1982). However, the Biloxi LMA is embedded in the 

Gulf of Mexico region which was largely immune from the detrimental effects of this recession 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Forecasting Error 2 X MSE
254

because of the simultaneous boom in the domestic oil and gas industry. Analyses of employment 

trends in oil and gas LMAs (e.g., Lafayette, Lafourche) show just the opposite effect. 

 

 Figure 5. Total Employment by Major Industry Categories, Biloxi LMA: 1969-1999 

 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 While, at first glance, these findings suggest that the Biloxi LMA is not integrated into 

the oil and gas industry, we must examine the nature of manufacturing growth during this period. 

Therefore, we now turn to an analysis of detailed industry codes within each of these categories. 

Detailed Industry Code Analyses. In this next section, we present analyses of industry 

sector codes for three key industry groups: manufacturing, transportation and wholesale trade 

(Table 1). We chose those categories based on a) relationship to oil and gas activities, b) 

employment levels, and c) availability of data in the years we are studying. The manufacturing 

category includes the sub-categories of fabricated structural metal products, ship and boat 

building and repair, and oil field machinery. The transportation category focuses exclusively on 

water. Wholesale trade considers only industrial machinery and equipment. 

 

0

 10,000

20,000

 30,000

40,000

 50,000

60,000

70,000

 80,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Constr. Manuf Tran/Pub Ut Whol. Tr. Ret. Tr. FIRE Services
255

Table 1 

Key Industry Groups and Sectors 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale of 

derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and supplies. 

 

Biloxi LMA Manufacturing. The Fabricated Structural Metal Products (SIC 3440) 

sector minimally impacts the Biloxi LMA economy. Employment in this sector exceeded 700 

workers in only one year (1985) between 1964 and 1996. Moreover, the patterns in the data are 

not consistent with oil and gas boom and bust cycles of the 1970s and 1980s (Figure 6). 

The annual employment data for Ship and Boat Building and Repair (SIC 3730) is 

presented below (Figure 7). Because of data disclosure issues, we were not able to calculate an 

accurate measure of employment for the years prior to 1977. Therefore we limit our analysis to 

the years between 1977 and 1996, inclusive. These data identify Ship and Boat Building and 

Repair as a major industry in the Biloxi LMA. The data also indicate a rapid drop-off in 

employment from the late 1970s through the early 1980s. This cycle is counter to the oil and gas 

boom pattern discovered in other LMAs in the region. Indeed, it is more consistent with the 

national recession pattern. 
256

 Figure 6. Annual Employment for Fabricated Structural Metal Products, Biloxi 

 LMA: 1964-1996 (U.S. Census Bureau, 2000a). 

 

 Figure 7. Annual Employment for Ship and Boat Building and Repair, Biloxi 

 LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

0

100

200

300

400

500

600

700

800

196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

0

 5,000

10,000

15,000

20,000

25,000

1977197819791980198119821983198419851986198719881989199019911992199319941996
257

The annual employment data for the Oil Field Machinery (SIC 3533) manufacturing 

sector show some activity in the late 1970s and early 1980s that is consistent with the oil and gas 

boom and bust cycle. However, the data indicate a negligible impact on the Biloxi LMA 

economy because employment levels are very low and there was basically no production after 

1982 (Figure 8). 

 Figure 8. Annual Employment for Oil Field Machinery, Biloxi LMA: 1964-1996 

 (U.S. Census Bureau, 2000a). 

Biloxi LMA Water Transportation. The annual employment data on Water 

Transportation (SIC 4400) employment is displayed below (Figure 9). Unfortunately, there is 

no category that directly measures water transportation related to offshore oil and gas activities. 

Examination of more detailed industry codes (4-digit) reveals that the vast majority of 

employment was in stevedoring. 

0

100

200

300

400

500

600

700

800

196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996
258

Figure 9. Annual Employment for Water Transportation, Biloxi LMA: 1964-1996 

 (U.S. Census Bureau, 2000a). 

 Biloxi LMA Wholesale Trade. The annual employment data for Industrial Machinery 

and Equipment (SIC 5084) are presented below (Figure 10). This industry category includes the 

wholesale marketing of oil well machinery (but not exclusively). These data are available only 

from 1977 to 1996, which does not provide enough data to conduct a forecasting analysis. 

However, the employment levels in this industry, less than 150 workers in any year, indicate 

very little Industrial Machinery and Equipment activity in the Biloxi LMA. 

0

200

400

600

800

1,000

 1,200

 1,400

196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996
259

Figure 10. Annual Employment for Wholesale Trade of Industrial Machinery and 

 Equipment, Biloxi LMA: 1977-1996 (U.S. Census Bureau, 2000a). 

This analysis indicates that the economic structure of the Biloxi LMA is for the most part 

disconnected from the oil and gas industry. Moreover, the Biloxi LMA shows business cycle 

patterns consistent with the national patterns of recession and growth for the 1970s and 1980s. 

In contrast, LMAs with higher concentrations of oil and gas activities suggest patterns counter to 

the national cycle. 

Biloxi LMA Population, Education, and Local Government: 1970-1990. Between 

1970 and 1980, the population of the Biloxi Labor Market Area increased by 24 percent, from 

369,000 to 389,000. This is significantly greater than the national growth rate of 11.4 percent for 

the same period. Within the Biloxi LMA, the population grew most rapidly in Hancock, 

Harrison, and Jackson Counties. Between 1980 and 1990, however, the population of the Biloxi 

LMA grew by only a modest 5.4 percent, a rate that is almost half of the national growth rate of 

9.8 percent. Furthermore, Jackson County experienced negative population growth during this 

period. The population data for the Biloxi LMA is presented below (Tables 2-4). 

The data on racial composition show similar growth patterns for blacks and whites. 

Between 1970 and 1980, the white population grew by 21 percent and the black population by 31 

percent. Between 1980 and 1990, the black population grew by 7 percent and the white 

population by 5 percent. The trends for the black population are counter-intuitive to southern 

labor markets. Most data indicate that out-migration of the black population was the norm for 

any decade in the 1900s–especially within oil and gas industry-dependent LMAs. However, this 

was not the case within the Biloxi LMA where the increases in the black population growth rate 

are significantly greater than would be expected via natural replacement. 

0

20

40

60

80

100

120

140

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
260

Table 2 

Population by County, Biloxi LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

George 87,044 10,012 11,098 12,459 15,297 16,773 19,582

Greene 9,512 8,215 8,366 8,545 9,827 10,220 13,376

Hancock 11,328 11,891 14,039 17,387 24,537 31,760 44,031

Harrison 50,799 84,073 119,489 134,582 157,665 165,365 189,409

Jackson 20,601 31,401 55,522 87,975 118,015 115,243 132,823

Pearl River 19,125 20,641 22,411 27,802 33,795 38,714 49,969

Stone 61,555 62,644 70,133 81,011 97,166 10,750 13,960

LMA Total 126,224 172,497 237,938 296,851 368,852 388,725 463,150

 Source: U.S. Census Bureau, 2000b. 

Table 3 

Percent of White Population, Biloxi LMA: 1940-2000 

 

County 1940 1950 1960 1970 1980 1990 2000 

George 85.7 87.7 88.4 88.2 90.3 89.4 87.1 

Greene 79.1 81.7 77.0 77.8 79.8 78.1 72.8 

Hancock 79.0 82.8 83.9 85.7 89.2 89.8 90.2 

Harrison 80.2 84.0 83.9 82.7 78.7 77.2 73.1 

Jackson 78.7 78.5 80.4 83.7 80.0 78.3 75.4 

Pearl River 78.3 78.2 76.8 81.5 84.8 84.7 85.5 

Stone 74.1 78.2 75.6 76.8 76.6 77.7 79.4 

LMA % Total 79.6 82.1 82.1 83.0 80.9 79.9 77.6 

LMA Total 100,438 141,707 195,452 246,421 298,446 310,722 359,424

 Source: U.S. Census Bureau, 2000b. 
261

Table 4 

Percent of Black Population, Biloxi LMA: 1940-2000 

 

County 1940 1950 1960 1970 1980 1990 2000 

George 14.2 12.3 11.5 11.6 9.3 9.3 8.8 

Greene 20.8 18.3 23.0 21.9 20.0 21.4 26.2 

Hancock 20.7 17.1 16.0 14.2 9.9 9.1 6.8 

Harrison 19.7 15.9 16.0 16.9 19.2 19.6 21.1 

Jackson 20.2 21.4 19.5 16.1 18.6 20.4 20.9 

Pearl River 21.7 21.7 23.1 18.4 14.8 14.2 12.2 

Stone 25.9 21.7 24.3 23.0 22.6 21.8 19.2 

LMA % Total 20.2 21.6 17.7 16.7 17.7 18.1 18.2 

LMA Total 25,526 30,716 42,214 49,748 65,393 70,560 84,723

 Source: U.S. Census Bureau, 2000b. 

Education. Education levels were generally higher in the Biloxi LMA than in several 

other oil and gas LMAs in the GOM region (Table 5). For example, in 1970, 48 percent of 

adults in the Biloxi LMA but 67 percent in the Lafayette LMA had not graduated from high 

school. By 1980, the percentage of adults who had not graduated from high school declined to 

35 percent, and to 27 percent by 1990. The number of adults attending but not completing high 

school also increased in the Biloxi LMA between 1970 and 1990. 
262

Table 5 

Adult Educational Attainment (age 25+), Biloxi LMA: 1970-2000 

County 0-8 

Years 

Some High 

School 

High School 

Diploma 

Some College, 

No Degree 

BA/BS 

or More 

Total 

1970 

George 36.8% 25.5% 24.9% 7.1% 5.5% 6,301 

Greene 42.1% 20.7% 24.4% 8.1% 4.6% 4,322 

Hancock 33.5% 20.0% 27.8% 9.8% 8.8% 9,105 

Harrison 25.8% 19.4% 33.7% 11.4% 9.5% 62,734 

Jackson 23.3% 21.2% 34.9% 11.6% 8.8% 41,505 

Pearl River 31.3% 22.4% 27.5% 11.6% 7.0% 14,019 

Stone 29.6% 28.7% 26.5% 8.8% 6.2% 4,069 

LMA Total 38,686 29,637 45,783 15,695 12,254 142,055 

1980 

George 26.7% 21.9% 40.1% 10.5% 6.9% 7,752 

Greene 30.3% 23.2% 36.9% 8.9% 7.6% 4,937 

Hancock 25.5% 20.4% 38.2% 14.6% 12.0% 12,586 

Harrison 19.6% 17.2% 41.0% 20.4% 15.9% 73,175 

Jackson 17.4% 18.7% 43.6% 18.9% 12.6% 55,527 

Pearl River 25.8% 19.8% 39.4% 13.9% 10.3% 17,033 

Stone 22.4% 23.6% 37.4% 15.3% 12.7% 4,632 

LMA Total 36,287 32,909 72,444 31,664 23,413 196,717 

1990 

George 17.7% 23.4% 34.0% 16.4% 8.3% 9,846 

Greene 17.2% 20.4% 39.4% 16.9% 6.0% 6,137 

Hancock 12.9% 19.1% 28.9% 24.8% 14.2% 20,398 

Harrison 9.6% 15.6% 29.5% 28.9% 16.3% 99,878 

Jackson 9.2% 16.4% 32.7% 27.2% 14.4% 69,935 

Pearl River 12.6% 19.0% 31.6% 25.3% 11.4% 23,589 

Stone 12.1% 19.7% 28.9% 26.8% 12.4% 6,324 

LMA Total 23,223 40,282 73,371 63,306 33,925 234,107 

2000 

George 9.5% 20.6% 38.6% 21.9% 9.1% 11,838 

Greene 9.7% 22.9% 38.0% 21.4% 7.9% 8,352 

Hancock 7.8% 14.3% 29.3% 31.3% 17.2% 28,840 

Harrison 6.2% 13.5% 28.3% 33.5% 18.4% 119,169 

Jackson 4.8% 14.1% 32.1% 32.4% 16.4% 82,818 

Pearl River 8.6% 16.7% 31.2% 29.5% 13.8% 30,940 

Stone 8.3% 16.8% 30.1% 32.2% 12.4% 8,258 

LMA Total 19,057 42,848 88,737 91,993 47,580 290,215 

 Source: U.S. Census Bureau, 2000b. 
263

Finances. As illustrated by the local government finance data, the Biloxi LMA grew 

rapidly during the 1970s (Tables 6-9). This growth also increased the demand on local 

government services, particularly education. Steadily increasing local government finances and 

more slowly increasing state revenues reflect this trend. Local governments in the Biloxi LMA 

also incurred more debt during this period. Between 1982 and 1987, debt grew by 66 percent in 

real dollars. The recession of the early 1990s was particularly taxing on local government 

finances. 

 

Table 6 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Biloxi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

George $1,170 $1,160 $1,117 $1,106 $1,074 $1,120 

Greene $1,166 $1,256 $1,502 $1,535 $1,232 $1,117 

Hancock $1,479 $1,425 $1,254 $1,439 $2,089 $2,238 

Harrison $1,320 $1,711 $1,478 $1,903 $2,276 $2,840 

Jackson $1,450 $1,870 $2,075 $4,875 $275 $3,088 

Pearl River $1,345 $1,514 $1,573 $1,610 $1,560 $1,705 

Stone $3,562 $6,011 $4,366 $5,090 $5,857 $5,793 

LMA Total $1,420 $1,807 $1,723 $2,778 $1,609 $2,709 

 Source: U.S. Census Bureau, 2000a. 

Table 7 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Biloxi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

George $558 $609 $574 $658 $641 $721 

Greene $728 $798 $823 $894 $776 $708 

Hancock $562 $513 $496 $525 $502 $587 

Harrison $478 $523 $457 $589 $561 $778 

Jackson $487 $538 $532 $637 $591 $673 

Pearl River $630 $723 $721 $792 $793 $935 

Stone $1,510 $1,903 $2,071 $2,260 $2,402 $2,824 

LMA Total $537 $593 $564 $674 $648 $802 

 Source: U.S. Census Bureau, 2000a. 
264

Table 8 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Biloxi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

George $179 $175 $168 $205 $359 $286 

Greene $213 $187 $165 $205 $309 $270 

Hancock $390 $425 $293 $362 $497 $274 

Harrison $408 $452 $382 $498 $586 $108 

Jackson $397 $547 $450 $605 $762 $1,061 

Pearl River $345 $275 $247 $309 $408 $388 

Stone $969 $1,058 $568 $1,022 $1,094 $1,239 

LMA Total $398 $463 $376 $496 $611 $481 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

 Total Debt, Per Capita (in 1997 adjusted dollars), Biloxi LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

George $182 $338 $217 $128 $110 $411 

Greene $455 $240 $191 $589 $639 $529 

Hancock $1,992 $1,156 $627 $561 $6,131 $1,382 

Harrison $2,153 $2,063 $2,174 $2,769 $2,360 $2,036 

Jackson $539 $2,148 $2,704 $2,704 $4,683 $5,345 

Pearl River $632 $270 $190 $190 $549 $523 

Stone $3,838 $2,277 $301 $301 $942 $684 

LMA Total $1,427 $1,764 $1,873 $1,873 $3,009 $2,656 

 Source: U.S. Census Bureau, 2000a. 

Employment in the Biloxi LMA grew by 26 percent during the 1990s. Its population also 

increased during that time by 19 percent (almost twice the national rate). That growth was 

facilitated in part by the growing employment opportunities––including an influx of casino 

gambling. Harrison County (38%), where the majority of the casinos are located, incurred the 

greatest amount of growth during the 1990s. Services (70%) and construction employment 

(55%) also increased significantly in that decade. Such growth helped return tax revenues to 

their pre-recession levels (in real dollars) and greatly reduce the per capita debt load. However, 

the educational structure in the Biloxi LMA did not benefit from that growth. In 1990, only 13 

percent of adults in the Biloxi LMA were college graduates. That rate is much below the 

national rate of 21 percent. The percentage of adults with four-year college degrees had 

increased somewhat to 16 percent in 2000. However, that rate was still considerably below the 

national rate of 26 percent. 

 The tourist trade along the Gulf Coast of Mississippi is linked to the economy of nearby 

regions. However, the employment data for this LMA indicate that the boom and bust patterns 

of the 1970s and 1980s did not affect the Biloxi region. The 1990s were a period of economic 
265

expansion and recreational economies, such as casino gambling, are naturally subject to declines 

during economic recessions. Thus said, it is reasonable to expect that the Biloxi LMA has 

experienced some economic decline since 2000. 
267

V. ALABAMA STATE PROFILE 

A. INTRODUCTION 

Located in the “deep south,” the State of Alabama is bordered by Tennessee to the north, 

Mississippi to the west, Georgia to the east, and Florida and the Gulf of Mexico to the south 

(Map 13). Montgomery, the state capital, is geographically located at 32.35°N latitude and 

86.28°W longitude. This state covers 50,744 square miles of U.S. territory. Approximately 3 

percent of the state’s total area is water; nearly 40 major rivers flow through it. These rivers 

include the Alabama, the Chattahoochee, the Escambia, the Mobile, the Perdido, and the 

Tombigbee. The state derives its tremendous transportation power from those natural water 

lines. The Bay of Mobile, home to the Port of Mobile, is one of Alabama’s major transportation 

hubs. This port handles roughly 16 million tons of cargo annually. 

 Alabama’s climate is temperate, with average highs of 82° in July and lows of 46° in 

January. The state receives an average of 53.4 inches of precipitation per year. Alabama’s wet, 

warm climate and rich, fecund soil support a robust agricultural industry. Its major agricultural 

products include: cotton, poultry and eggs, cattle, nursery stock, peanuts, vegetables, milk, and 

soybeans. Additionally, the state harbors a wealth of mineral resources, notably coal. Iron beds 

are also extensive in Alabama, lying between Tuscaloosa and DeKalb Counties. Other minerals 

and substances found in the state include gold, copper, marble, marl, greensand, limestone, gas, 

millstone, and petroleum. U.S. Steel and American Cast Iron Pipe Company are located in the 

state. Alabama is also noted for its timber and extractive industries. Its primary manufactured 

products include paper, lumber and wood, rubber and plastics, transportation equipment, and 

apparel. 

 There are three Gulf Ecological Management Sites (GEMS) in Alabama: the Weeks Bay 

National Estuarine Research Reserve (Baldwin County), the Mobile-Tensaw River Delta 

(Baldwin, Mobile, and Washington Counties), and the Orange Beach Maritime Forest (Baldwin 

County). Each GEM is a geographic area that represents unique habitats, or that has special 

ecological significance to the continued production of fish, wildlife and other natural resources 

(South Alabama Regional Planning Commission, 2002). 

 The State of Alabama manages the 6,000-acre Weeks Bay National Estuarine Research 

Reserve (WBNERR) through the Department of Conservation and Natural Resources, and the 

National Oceanic and Atmospheric Administration’s (NOAA’s) Estuarine Reserves Division. 

The WBNERR, located in Baldwin County, provides a habitat for a wide variety of species 

including: saltmarsh, freshwater marsh, estuarine benthos, tidal flats, swamp, bogs, pine 

savannah, upland forest, sawgrass marsh, and riverine. It is also home to many rare and 

endangered species such as West Indian Manatee, Marsh Rabbit, Eastern Fox Squirrel, Bald 

Eagle, Wood Stork, Alabama Red-Bellied Turtle, American Alligator, and Alabama Sturgeon. 

Additionally, WBNERR provides both freshwater and brackish water breeding grounds for many 

species, including: shrimp, Brown Pelican, Osprey, Great Blue Heron, Water Moccasin, 

Largemouth Bass, and Mullet. Threats to the ecological integrity of the Weeks Reserve include 

fecal coliform bacteria from poorly operating septic tanks, and sedimentation from urban, 

commercial, and residential area development (South Alabama Regional Planning Commission, 

2002). 
268

Map 13. State of Alabama Depicting Gulf of Mexico Labor Market Areas (and component 

counties).
269

Spanning three counties (Baldwin, Mobile, and Washington), the Mobile-Tensaw River 

Delta is an immense 185,000-acre wetland ecosystem. This ecosystem is a habitat for swamp 

forest and seasonally flooded bottomland hardwoods, and provides a nesting ground for 110 

species of birds. Comprised of numerous streams, bayous, and creeks, this river delta originates 

near the confluence of the Alabama and Tombigbee rivers and runs southward 35 miles to 

Mobile Bay. Over 300 species of birds have been linked to this region. Rare and endangered 

species include the American Alligator, the Swallow Tailed Kite, the Mississippi Kite, the 

Mottled Duck, beaver, river otter, and bear. Ownership of these lands is shared by the Army 

Corps of Engineers (federal), Division of Lands (state), and private entities. Current threats to its 

ecological integrity include expanded oil and gas activities, and the cumulative impact of local 

residential and commercial development, including heavy traffic through the area (South 

Alabama Regional Planning Commission, 2002). 

The 588-acre Orange Beach Maritime Forest in Baldwin County is owned by the City of 

Orange Beach. It borders the Gulf State Park to the north for two miles. The forest features a 

wide variety of habitats including: maritime forest, cypress swamp, wetlands, and an extensive 

pitcher plant bog. It is also home to many rare and endangered species including: Gopher 

Tortoise, Eastern Indigo Snake, American Alligator, Jagarundi, Florida Pine Snake, Bobcat, and 

Long-Leaved Jointweed. Additionally, the Mississippi Sandhill Crane and Northern Sandhill 

Crane use the forest as a breeding ground. Threats to its environmental integrity include fire 

suppression activities and area development (South Alabama Regional Planning Commission, 

2002).

 The state also is home to four national forests: Bankhead (located in the northwestern 

corner of the state), Conecuh (located along the southern border), Talladega (located in the 

northeast), and Tuskegee National Forest (in the west-central part). Two of these areas support 

three wilderness areas: the 25,000-acre Sipsey Wilderness Area in Bankhead National Forest, 

and the 7,245-acrea Cheaha Wilderness Area and Dugger Mountain in the Talladega National 

Forest. Total wilderness acreage for the state amounts to over 41,000. These forests provide 

habitats for approximately 900 species, including white-tailed deer, quail, squirrel, turkey, rabbit, 

and waterfowl. Endangered species include the Gopher Tortoise, Flattened Musk Turtle and the 

Red-cockaded Woodpecker (U.S. Department of Agriculture, Forest Service, 2004). 

B. BUILT ENVIRONMENT 

Human Geography and Population Centers. The population of Montgomery, the state 

capital, was 201,568 persons in 2000. Montgomery’s population is second only to 

Birmingham’s (242,820). Other large centers, with their corresponding year 2000 populations, 

are: Mobile (198,915), Huntsville (158,216), Tuscaloosa (77,906), Hoover (62,742), Dothan 

(57,737), Decatur (53,929), Auburn (42,987), and Gadsden (38,978) (U.S. Census Bureau, 

2000b). 

Transportation and Communication. Alabama features 905 miles of interstate 

highways, six commercial airports, five Class 1 railroads, a deep-water port, ten inland ports, and 

the second largest inland waterway system in the nation (Economic Development Partnership of 

Alabama, 2004). Alabama’s five Interstate Highways are: I-10 (through Mobile), I-20 (east-west 

through Birmingham), I-59 (Birmingham to Chattanooga), I-65 (connecting Nashville and 

Mobile via Montgomery), and I-85 (linking Charlotte, Atlanta, and Montgomery) (Wilber Smith 
270

Associates, 2003a). Additionally, numerous state highways crisscross through Alabama 

(Economic Development Partnership of Alabama, 2004). 

There are six major commercial airports, 214 general aviation and/or commuter airports, 

and 55 heliports in Alabama. Of these 78 are publicly owned and open for public use; the 

remainder are military and private airports. Alabama’s major commercial airports are located in: 

Birmingham, Dothan, Huntsville, Mobile, Montgomery, and Tuscaloosa (Economic 

Development Partnership of Alabama, 2004). 

 The Birmingham International Airport has been Alabama’s largest airport since 1931. It 

is conveniently located some five miles from Birmingham’s downtown area. Eight major 

airlines–American, Continental, Delta, Delta Connection/Comair, Northwest, Southwest, United 

Express, and US Airways–provide 77 daily departures and arrivals. Birmingham International 

Airport’s longest runway is 2,000 feet. It is currently being expanded to 12,000 feet 

(Birmingham International Airport, no date). 

The Dothan Regional Airport (DRA) is located in Dale County approximately seven 

miles from Dothan’s downtown business center. Established in 1965, this airport is available to 

Fort Rucker for training purposes and the general population. Atlantic Southeast Airlines is the 

only commercial airline flying out of Dothan Airport. It offers five flights daily to Atlanta. 

DRA’s longest runway is 8,500 feet. This airport is entirely self-supporting, and receives no tax 

dollars for its operations (Dothan Regional Airport, no date). 

The Port of Huntsville is an inland port that combines the Huntsville International 

Airport, the International Intermodal Center, and the Jetplex Industrial Park. The Port of 

Huntsville has an 18-county service region that extends through North Alabama and South 

Central Tennessee. It also has the distinction of being a Foreign Trade Zone (#83). Nine major 

commercial airlines offering more than 85 daily flights service the airport: American Airlines, 

American Eagle, Atlantic Southeast Airlines, Comair, Continental Express, Delta Air Lines, 

Northwest Airlink, and US Airways Express. Its longest runway is 10,006 feet (Port of 

Huntsville, 1999). 

The Mobile Regional Airport (MRA) is located only minutes from downtown Mobile in 

southwestern Alabama. Six major airlines fly out of MRA: Atlantic Southeast Airlines, 

Continental Express, Delta Air Lines, Northwest Airlink, SkyWest, and US Airways. Providing 

international as well as domestic air travel, the Mobile Regional Airport connects to six major 

hubs in Atlanta, Dallas, Houston, Memphis, Orlando, and Charlotte (Mobile Regional Airport, 

2004). 

 The Montgomery Regional Airport is located six miles southwest of Alabama’s state 

capital. It has three major airlines: Atlantic Southeast Airlines/Delta, Northwest Airlink, and US 

Airways Express. There are two runways at Montgomery Regional, the longest of which is 

9,010 feet. This airport is part of a foreign trade zone (Montgomery Airport Authority, 2003). 

The Tuscaloosa Municipal Airport was dedicated in 1939; passenger service began in 

1949. It has two runways, the longest of which is 6,499 feet (Economic Development 

Partnership of Alabama, 2004). 

Alabama’s rail transportation system provides the state with another important economic 

link. There are over 4,728 miles of rail track and 25 freight railroad companies running through 

450 communities. Five of these companies are Class 1 railroads: Burlington Northern Santa Fe, 

Canadian National/Illinois Central Railroad Company, CSX Transportation, Kansas City 

Southern Railway, and Norfolk Southern Corporation (Economic Development Partnership of 
271

Alabama, 2004). Five Amtrak stations (Mobile, Atmore, Montgomery, Tuscaloosa, 

Birmingham, and Anniston) provide the state with passenger rail service (Amtrak, 2004). 

The Port of Mobile is Alabama’s only deep-water port. Dedicated in 1928, this 4,000 

acre district is the terminus of the 45-foot deep Mobile Ship Channel. It possesses 37 berths, 376 

inland docks, and one of the deepest channels of any Gulf state. One hundred overseas shipping 

lines, 12 towing companies, 65 truck lines, and 5 major railroads service this international port. 

Notably, its docks handle more wood pulp than any other American facility. In addition to wood 

pulp, the port’s primary import products in 2002 were: coal, aluminum, iron, steel, lumber, and 

chemicals. In that same year, this port exported coal, forest products, iron, steel, and chemicals. 

In all, the port handled 24.3 million short domestic tons in 2006; revenues for that year were 

$89.5 million (Alabama State Port Authority, 2006). The port’s Terminal Railway, which 

connects to four mainline railroads, is the main artery for all of this activity. Currently, a $300 

million program is underway to modernize the port (Economic Development Partnership of 

Alabama, 2004).

Extending for nearly 1,500 miles, the nation’s second longest waterway system is found 

in Alabama. Six navigable waterways form this system: the Alabama-Coosa Waterway, 

Chattahoochee-Apalachicola Waterway, Tennessee Waterway, Warrior-Tombigbee Waterway, 

Tennessee-Tombigbee Waterway, and the Gulf Intracoastal Waterway (Economic Development 

Partnership of Alabama, 2004). 

A wide range of audio-visual media are available throughout the state. These resources 

include: 49 newspapers; 94 radio stations (AM/FM) offering many listening options; and 31 

television broadcast stations (10 in Birmingham, 3 in Dothan, 1 in Florence, 5 in Huntsville, 5 in 

Mobile, 4 in Montgomery, 1 in Sheffield, 1 in Troy, and 1 in Tuscaloosa). 

Physical Infrastructure. Five electricity plants accounted for 79 percent of all utility 

sales in Alabama in 1999 (USDOE, EIA, 2003a). These five plants and their corresponding 

megawatt hours for all sectors were: Alabama Power Company (50,157,204); Tennessee Valley 

Authority (6,083,059); City of Huntsville (4,244,441); Decatur Utilities (1,523,766); and the City 

of Florence (1,131,276). Alagasco, Mobile Gas Company, Southeast Alabama Gas District, and 

Huntsville Utilities supply Alabama’s natural gas; Huntsville Utilities and Tennessee Valley 

Authority provide its water and sewer services. BellSouth and Verizon are the state’s primary 

telecommunications providers (Economic Development Partnership of Alabama, 2004). 

Interaction of Biophysical and Built Environments. Of the 50 states and six U.S. 

territories, Alabama is among one of the most environmentally compromised. In 2001, it ranked 

eleventh of 56 (one = dirtiest). In that same year, Alabama ranked in the 85th percentile for total 

environmental releases (121,341,325 pounds), and in the 95th percentile for its cancer risk (air 

and water) (one=cleanest). Between 1988 and 2001, however, Alabama’s total cancer risk 

scores have decreased 57 percent (Scorecard, 2003). 

Of Alabama’s total 2001 environmental releases (121,341,325), air releases accounted for 

74,757,988 pounds, water releases totaled 4,713,394 pounds, and land releases equaled 

41,777,031 pounds. Additionally, Alabama off-site transfers totaled 97,094,428 pounds in that 

year, while production related wastes equaled 1,326,601,714 pounds (Scorecard, 2003). 

 In 2001, Alabama’s top 25 (of 100) releasing facilities, in terms of benzene-equivalent 

pounds, were: Alabama Power Company, Greene County Steam Plant (10,021,936); Alabama 

Power Company, Gaston Steam Plant (9,160,580); Kerr McGee Chemical LTD., Liability 

Corporation (8,113,412); U.S. TVA Colbert Fossil Plant (7,696,343); Chemical Waste 

Management (7,086,123); Southern Company, Barry Steam Plant (6,953,486); USS Fairfield 
272

Works (6,800,740); US TVA Widows Creek Fossil Plant (6,168,865); Alabama Power 

Company, Gorgas Steam Plant (5,307,729); Acordis Cellulosic Fibers Incorporated (3,888,500); 

Wise Alloys L.L.C. Alloys Plant (3,312,318); Alabama Power Company, Miller Steam Plant 

(2,27275,105); Mead Coated Board Incorporated (2,772,319); Alabama River Pulp Company 

Incorporated (2,381,238); International Paper (2,042,798); International Paper, Courtland Mill 

(1,855,328); Solutia Incorporated, Decatur Alabama (1,835,984); Weyerhaeuser USA 

Incorporated, Pine Hill Operations (1,810,935); BP Amoco Chemicals (1,479,908); Bowater 

Newsprint, Coosa Pines Operations (1,444,135); JSC Brewton Incorporated (1,441,508); Fort 

James Operating Company (1,239,567); International Paper Riverdale Mill (1,184,161); Charles 

R. Lowman Power Plant (1,166,388); and CIBA Specialty Chemical Corporation (1,067,592) 

(Scorecard, 2003). 

The top 10 chemical releases presenting a cancer risk to Alabama in 2001, with pounds in 

benzene-equivalents, included: arsenic (organic or inorganic) compounds (39,000,000); 

cadmium compounds (20,000,000); cadmium (15,000,000); chromium compounds (2,900,000); 

arsenic (2,100,000); acrylonitrile (1,300,000); lead compounds (860,000); chromium (570,000); 

lead (330,000); and benzene (190,000) (Scorecard, 2003). 

C. HISTORY

Settlement. The Mississippian, or “temple mound,” people resided in the Mississippi 

floodplain from about 850 A.D. until DeSoto’s expeditions of 1539-1543 (Griffith, 1972). 

Remnants of their mounds are found in Mobile County (Rogers et al., 1994). 

 By the 17th century, four major Native American nations were living in present-day 

Alabama: Creek, Cherokee, Chickasaw, and Choctaw. The Creeks inhabited the majority of the 

state, living along the banks of the state’s numerous creeks and rivers. The Cherokees also 

occupied a vast territory covering the mountainous regions of eastern Tennessee, northern 

Georgia, and northeastern Alabama. The agrarian Chickasaws’ territory covered parts of 

Tennessee, Kentucky, Mississippi, and the northwest portion of Alabama. The Choctaws’ 

territory primarily spanned central Mississippi, but also extended into southwestern Alabama. 

The historic Choctaws were primarily farmers, who grew beans, squash, melons, and corn; they 

also hunted, fished, and gathered wild plants (Rogers et al., 1994). 

Under DeSoto’s command during a 1540 expedition, the Spanish were among the very 

first Europeans to arrive in Alabama. The French arrived in 1699 under Iberville’s and 

Bienville’s command. Three years later, Bienville founded a settlement on Massacre Island. At 

this time, he also built the Fort St. Louis de la Mobile at the mouth of Dog River (the original site 

of Mobile). In 1711, Bienville established the site of present-day Mobile. 

 Relations between the Native Americans and European settlers remained relatively 

hospitable until the number of European settlers significantly increased in the early 1800s. At 

that time, the American efforts toward Indian removal gained more force. The Creeks and the 

Americans fought many battles before an 1814 peace treaty was signed. In 1817, the Alabama 

Territory was carved from Mississippi, with St. Stephens serving as the territory’s seat (Griffith, 

1972). 

Industrialization. Plantation agriculture, particularly cotton, dominated Alabama’s early 

economy. While farms far outnumbered plantations, plantations provided the social, economic, 

and political backbone of the state. The coke industry in northern Alabama and the timber 

industry in the south were also prosperous. Improved transportation facilitated commerce and 
273

industry within the state. The Natchez Trace, the state’s first federally funded road, was 

constructed in 1801. The steamboat’s introduction in the early 1800s also greatly increased the 

state’s ability to transport cotton. Alabama’s first rail line, the Tuscumbia Railway opened in 

1830 (Griffith, 1972). 

In favor of slavery and against the Civil War, Alabama seceded from the U.S in January 

1861. Two months later, in March, the state joined the Confederate States after Jefferson-Davis’ 

inauguration as Confederate President. Although hard hit, Alabama “was spared many of the 

horrors of war” as no major land battles were fought on this soil (Griffith, 1972). Reconstruction 

was difficult for Alabama nevertheless, as soldiers returned home to destroyed fields, worthless 

currency, and a rogue state government. The Reconstruction Act of 1867 prevented much of 

Alabama’s population from voting. Consequently, “the state government was handed over to 

carpetbaggers (individuals from outside the state, financially reduced by the war) and scalawags 

(destitute individuals) who added to the financial anxiety of the state” (Griffith 1972, 470). 

 State commerce and transportation both improved under the direction of Democrat 

Governor George Smith Houston in 1874. While only 743 miles of rail had been laid by 1869, 

Alabama had 3,422 miles of track by 1890, and 4,226 miles by 1900. In 1892, the state had 43 

different lines, all of which eventually consolidated into two larger systems: the Louisville and 

Nashville running north to south, and the Southern Railway, expanding Alabama’s connection to 

other states. The railroads also brought new growth to the state’s cities and towns, especially 

Birmingham (Griffith, 1972). 

Oil. Alabama was the first of the southeastern states to drill for petroleum. Following 

several geological publications about the Hatchetigbee Anticline in southern Choctaw County, 

Alabama emerged as a potential source of petroleum. Alabama’s first well was drilled along this 

anticline in 1884 at Bladen Springs in Choctaw County. However, this well (Trowbridge No. 1) 

was dry (Alabama Oil and Gas Board, 2003). 

 In 1902, the New York-Alabama Oil Company drilled the first producing gas well in 

northern Alabama near Huntsville in Madison County at a depth of less than 300 feet. The 

Huntsville Gas Field was the first commercial gas well in the southeastern United States. In 

1926, oil exploration activities began in earnest. Most drilling activity was initially undertaken 

by small promoters who relied on local money. By 1945, however, Alabama had 283 wells 

drilled, although only 15 of these produced oil and 40 produced gas (Hughes, 1993). 

 Since 1945, over 13,400 wells have been permitted in Alabama; with over 9,400 of these 

since 1980. The production of gas and liquid hydrocarbons has been particularly prominent in 

the state. In 1985, the state ranked 16th in the U.S. for such production, and, in 2000, ranked 

ninth in gas production and 15th in liquid hydrocarbon production (Alabama Oil and Gas Board, 

2003). 

 Alabama’s offshore production is also prolific, having produced over 200 billion cubic 

feet of gas; this amount is equal to roughly 53 percent of the state’s total gas production 

(Alabama Oil and Gas Board, 2003). Offshore oil exploration began when the Gulf Refining 

Company drilled their first two exploratory wells in Mobile Bay in 1951 and 1952. However, 

because these wells were found dry at 10,000 and 11,000 feet, another test well was not drilled 

until 1978. In this year, Mobil Oil Corporation was permitted to drill a 21,500-foot test well at 

the mouth of the Mobile Bay in order to test potential reservoirs of Jurassic age. One year later, 

Mobil Oil Corporation’s newly discovered Norphlet Formation was producing 12.2 million cubic 

feet of gas per day at 21,113 feet. Since 1978, 77 wells have been drilled off of Alabama’s coast, 
274

46 of which were drilled at the Norphlet Formation. A total of 37 Norphlet wells and 25 

Miocene wells have been tested for gas (Alabama Oil and Gas Board, 2003). 

 The federal government began leasing large tracts off of the Alabama coastline during the 

1980s. In March 1981, Alabama received $449 million dollars in bids for the rights to develop 

13 offshore tracts. These tracts totaled 55,054 acres in size. In 1982, the U.S. government 

leased 17 tracts off of Alabama’s coast with oil and gas rights for a sum of nearly $219 million. 

A year later, another federal lease sale of 13 tracts totaled nearly $41 million. In 1984, Alabama 

earned over $347 million from leases on 19 offshore tracts (Alabama Oil and Gas Board, 2003). 

 In 1982 and 1985, the Constitutional Amendment created two special trust funds (the 

Alabama Heritage Trust Fund and the Alabama Trust Fund) from income generated by the 

leasing of and production from Alabama's offshore tracts. These funds now total more than $2.2 

billion (Alabama Oil and Gas Board, 2003). 

 Currently, 45 offshore platforms produce 203 billion cubic feet of gas each year. Each 

well produces up to 110 cubic feet per day, pushing Alabama into the list of the top 10 states in 

the nation for gas production (Alabama Oil and Gas Board, 2003). 

D. DEMOGRAPHIC CHARACTERISTICS 

Population Growth. Alabama had a year 2000 population of 4,447,100 persons; this 

figure reflects a population change of 10 percent from 1990. Growth in Alabama has been less 

rapid than in other southern states. Alabama’s greatest growth occurred in 1970 when the 

population increased by 13 percent (Table 1) (U.S. Census Bureau, 2000b).

Table 1 

 Population Changes, Alabama State: 1920-2000 

Year Population Change from 

Previous Census

Percent Change from 

Previous Census 

Net Migration Since 

Previous Census 

2000 4,447,100 406,513 10.1 209,792 

1990 4,040,587 146,699 3.8 -89,120 

1980 3,893,888 449,723 13.0 115,014 

1970 3,444,165 177,425 5.4 -229,681 

1960 3,266,740 204,997 6.7 -368,151 

1950 3,061,743 228,782 8.1 -301,376 

1940 2,832,961 186,713 7.0 -184,614 

1930 2,646,248 298,074 12.7 -212,231 

1920 2,348,174 -- -- -149,272 

 Source: U.S. Census Bureau, 2000b. 

Ethnicity and Age. In 1880, the population of Alabama was nearly half white and half 

black (Berney, 1975). Since this time, the population has adjusted to the present distribution of 

71 percent Caucasian and 26 percent African-American (Table 2) (U.S. Census Bureau, 2000b). 

 

 
275

Table 2 

 Racial and Ethnic Populations, Alabama State: 2000 

Race/Ethnicity Population Percent 

White 3,162,808 71.1 

African American 1,155,930 26.0 

Hispanic* 75,830 1.7 

American Indian 22,430 0.5 

Asian 31,346 0.7 

Pacific Islander 1,409 0.0 

Other Race 28,998 0.7 

Two or More Races 44,179 1.0 

 * Hispanics may be of any race. 

 Source: U.S. Census Bureau, 2000b. 

 In 2000, 25 percent of Alabama State residents were less than 18 years of age, and 13 

percent were 65 years of age and older. The majority of residents––62 percent––were between 

18 and 64. The median resident age was 35.8, which is slightly above the national median age of 

35.3 (U.S. Census Bureau, 2000b). 

E. ECONOMY 

Income and Poverty. Compared to the United States as a whole, Alabama is a relatively 

impoverished state. In 1999, Alabama’s median family income was $41,657 or 83 percent of the 

national median ($50,046). Also in 1999, 16 percent of all residents and 13 percent of all 

families in Alabama lived below the poverty threshold. In comparison, 12 percent of all 

individuals and 9 percent of families at the national level were living below the poverty 

threshold. Further, while single females with minor children headed 14 percent of all Alabama 

families, they comprised 48 percent of all families living in poverty. At the national level, 

however, this same population headed 12 percent of all families, and represented 44 percent of 

all families living in poverty. Despite this disparity, only 2 percent of Alabama households were 

receiving public assistance in 1999, compared to 3 percent at the national level (Table 3) (U.S. 

Census Bureau, 2000b). 
276

Table 3 

 Income, Poverty and Family Structure, Alabama State: 1960-2000 

Year Median Family

Income (2000 

Constant $) 

Change from

Previous 

Census 

Ratio to 

National 

Median 

Persons 

in Poverty

Households 

Receiving Public 

Assistance* 

Female-Headed

Families with 

Children 

2000 $41,657 45.0% 0.83 16.1% 2.2% 13.5% 

1990 $28,688 4.7% 0.81 18.3% 8.7% 17.5% 

1980 $27,392 19.7% 0.82 18.9% -- -- 

1970 $22,868 48.0% 0.64 25.4% -- -- 

1960 $15,449 -- 0.69 -- -- -- 

* The 2000 Census enumerated “households” rather than “persons” receiving public assistance. 

Source: U.S. Census Bureau, 2000b. 

Employment. Over the last century, Alabama’s economic base has shifted from 

primarily agriculture, forestry, and fishing to one largely reliant on its service and manufacturing 

sectors. In 2000, only 2 percent of the labor force remained employed in the agriculture, 

forestry, and fisheries sector. In comparison, services employed nearly 38 percent of the work 

force in 2000, with manufacturing employing slightly more than 18 percent (Table 4). In part, 

the increase in services employment reflects a growing number of hospitals and educational 

facilities in recent decades (U.S Census Bureau, 2000b). 

In 2004, Alabama’s 20 largest employers were: University of Alabama 

(Birmingham/10,000 employees), Auburn University (9,000 employees), Russell Corp. 

(Alexander City/8,000 employees), Mortgage Source (Alabaster/6,000 employees), UAB 

Healthfinder (Birmingham/5,520 employees), Alabama Power Company (Birmingham/5,000 

employees), Huntsville Hospital (Huntsville/5,000 employees), Integrated Systems Management 

(Mobile/5,000 employees), Mobile Infirmary Medical Center (Mobile/4,500 employees), 

University of Alabama (Tuscaloosa/3,857 employees), General Motors Corp.(Tanner/3,200 

employees), Blue Cross and Blue Shield (Birmingham/3,000 employees), Southeast Alabama 

Medical Center (Dothan/3,000 employees), Intergraph Computer Systems (Huntsville/3,000 

employees), DCH Health System (Tuscaloosa/3,000 employees), Boeing (Huntsville/2,700 

employees), Providence Hospital (Mobile/2,700 employees), American Cast Iron Pipe Company 

(Birmingham/2,500 employees), American Steel Pipe (Birmingham/2,500 employees) and 

Brookwood Medical Center (Birmingham/2,500 employees) (CareerOneStop, 2004). 

As of 2005, there were seven Fortune 1,000 companies in the Alabama. The top five 

companies in that year were: Saks, Regions Financial, AmSouth Bancorp, Vulcan Materials, and 

Torchmark (Fortune 500, 2005). 
277

Table 4 

Employment in Major Industrial Sectors, Alabama State: 1990-2000 

Year Agric., 

Fishing 

& 

Forestry 

Mining Constr. Manuf. Trans., 

Comm. &

Public 

Util. 

Wholesale

& Retail 

Trade 

Finance, 

Insurance 

& Real 

Estate 

Services Public 

Admin.

Workers in Sector 

2000 29,266 8,044 145,809 352,566 101,588 303,797 110,743 726,707 98,915

1990 40,489 12,265 123,538 398,449 121,985 354,106 86,817 511,394 92,751

Percent of Workers in Sector 

2000 1.5% 0.4% 7.6% 18.4% 4.4% 15.8% 5.8% 37.8% 5.2% 

1990 2.3% 0.7% 7.1% 22.8% 7.0% 20.3% 5.0% 29.3% 5.3% 

Growth from Previous Census 

2000 -38.0% -52.5% 18.0% -13.0% -20.0% -16.6% 27.5% 42.1% 6.6% 

Source: U.S. Census Bureau, 2000b. 

Industry. As of 2000, Alabama’s leading industry was services (Table 5). In 1999, 

workers’ primarily derived their earnings from the service sector (24%) and secondarily from 

government employment (20%) and manufacturing of durable goods, lumber and wood products, 

and metal products (20%) (U.S. Department of Commerce, Bureau of Economic Analysis, 

2000). 

 In June 1999, there were 1,419 banking and savings institutions in Alabama. These 

institutions had deposits totaling $52.7 billion. Expenditures in federal funds and grants in that 

same year totaled $26.7 billion (U.S. Census Bureau, 2002). 
278

Table 5 

Earnings in Major Industry Sectors and Selected Sub-sectors, Alabama State: 1990-1999 

Industry Earnings (Constant 2000 

$1000’s) 

Share of

Earnings

Change Share of 

Change 

 1990 1999 1999 1990-1999 1990-1999

Earnings $45,311,126 $70,020,269 100.0% $24,709,143 100.0% 

Farm Earnings $828,362 $1,295,174 1.8% -$466,812 -1.8% 

Ag. Services, Forestry, and 

Fishing $232,256 $476,689 0.7% -$244,433 -1.0% 

 Fishing $17,231 $12,296 0.0% $4,935 0.0% 

Mining $588,288 $655,024 0.9% $66,736 0.3% 

 Oil and gas extraction NA $147,907 0.2% NA NA 

Construction $2,680,069 $4,500,190 6.4% $1,820,121 7.4% 

 Special trade contractors $1,453,194 $2,716,294 3.9% $1,263,100 5.1% 

Manufacturing $10,499,548 $13,680,326 19.5% $3,180,778 12.9% 

 Fabricated metal products $671,845 $886,415 1.3% $214,570 0.9% 

 Indust. machine & equip. $849,002 $1,140,811 1.6% $291,809 1.0% 

 Food and kindred $688,597 $971,245 1.4% $282,648 1.0% 

 Chemicals and allied $547,439 $785,953 1.1% $238,514 1.0% 

 Petroleum and coal NA $69,536 0.1% NA NA 

Transportation and Public 

Utilities $3,060,764 $4,533,166 6.5% $1,472,402 6.0% 

 Trucking & warehousing $845,523 $1,530,813 2.2% $685,290 2.8% 

 Water transportation NA $74,205 0.1% NA NA 

 Transportation by air $138,407 $274,290 0.4% $135,883 0.5% 

Wholesale Trade $2,503,912 $4,060,560 5.8% $1,556,648 6.3% 

Retail Trade $4,015,851 $6,474,470 9.2% $2,458,610 10.0% 

 Eating & drinking places $803,096 $1,463,442 2.1% $660,346 2.8% 

Finance, Insurance, and Real 

Estate 

 $2,046,921 $4,145,639 5.9% $2,098,718 8.5% 

Services $8,948,184 $16,439,160 23.5% $7,490,976 30.3% 

 Business services $1,223,025 $3,091,849 4.4% $1,868,824 7.6% 

 Health services $3,299,567 $5,840,544 8.3% $2,540,977 10.3% 

 Legal services $662,139 $1,199,793 1.7% $537,654 2.2% 

 Engineering and 

 management services 

 $1,336,790 $2,237,206 3.2% $900,416 3.6% 

Government $9,906,971 $13,759,871 19.7% $3,852,900 15.6% 

 NA = Data not available. 

 Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2000. 

 

 
279

Marine-based Activities. In 1995, more red snapper was harvested in Alabama than in 

any other state. In that year, over 1.3 million pounds of red snapper was harvested, while 

265,000 fish were caught and released. Other large harvests included 621,000 pounds of sand 

seatrout (151,000 releases), 706,000 pounds of sheepshead (22,000 releases), vermilion snapper 

(514,000 pounds) and Spanish mackerel (258,000 pounds) (Gulf States Marine Fisheries 

Commission, 1998). 

With 500,000 acres of lakes and the largest river system in the United States, Alabama 

offers a year-round fishing season. Its close proximity to the Gulf of Mexico only enhances the 

state’s desirability as a destination for sports and recreational fishermen. 

Military Installations. There are three military bases in Alabama. These are Fort Rucker 

(Dale County), Maxwell-Gunter Air Force Base (Montgomery County), and Redstone Arsenal 

(Madison County). 

Fort Rucker is located in the southeast corner of Alabama in Dale County. It lies 80 

miles south of Montgomery and 20 miles northeast of Dothan (Global Security, 2002c). This 

645,000-acre post was named in honor of Colonel Edmund W. Rucker, a Civil War Confederate 

officer. The Army Aviation Training Center at Fort Rucker serves as both a basic and advanced 

training camp for the U.S. Aviation Force. All Army Aviation flight training was consolidated at 

Fort Rucker in 1973. The Cairns Army Airfield, Hanchey Army Heliport, Hunt Army Heliport, 

Lowe Army Heliport, Knox Army Heliport, Shell Army Heliport, and 13 Fort Rucker stage 

fields service the Training Center (Global Security, 2002c). 

In 2000, Fort Rucker had a daytime resident population of approximately 14,000 persons 

(5,100 service members, 6,400 civilian and contract employees, 3,200 military family members). 

Additionally, Fort Rucker is home to approximately 14,500 retirees (Global Security, 2002c). 

Located in Montgomery, Maxwell Air Force Base and Gunter Annex are home to the Air 

University. The primary mission of the Air University is to provide professional military 

education and to train “airmen on the capabilities of air and space power and its role in national 

security” (Global Security, 2002f). The Base and Annex also host the 42nd Air Base Wing, the 

908th Airlift Wing, and many other ancillary organizations. The 42nd Air Base Wing provides the 

infrastructure and logistical support for the Air University’s training operations. The 908th

Airlift Wing recruits, organizes and prepares Air Force reservists for active duty. The majority 

of the University’s programs are at Maxwell AFB in Montgomery, Alabama. It also has an 

annex at the Wright-Patterson AFB in Ohio (Global Security, 2002f). 

The population of the Maxwell-Gunter AFB approximates 15,000 persons. This count 

includes the Air University, the 42nd Air Base Wing, and civilian and contract employees. The 

total military population is more than 25,500, with military retirees adding another 9,000 plus. 

The bases provide the community with approximately 7,155 secondary jobs (Global Security, 

2002f). 

Redstone Arsenal is located in north central Alabama near Huntsville. This 40,000 acre 

facility has been the Army’s center for missile and rocket programs since the early 1960s. In 

1941, Redstone Arsenal served as a chemical warfare manufacturing and storage facility. Today, 

its primary mission is to research, develop, test, purchase, repair, and maintain missiles and other 

high technology military weapons. In 1997, the US Army Missile Command at Redstone 

Arsenal merged with the US Army Aviation and Missile Command (AMCOM). In 2000, 

Redstone Arsenal had a population of approximately 17,000 government and contract workers. 

Recreation and Tourism. There are eight national and 24 state parks in Alabama. The 

National Parks are: Horseshoe Bend National Military Park, Little River Canyon National 
280

Preserve, Natchez Trace Parkway, Russell Cave National Monument, Selma to Montgomery 

National Historic Trail, Trail of Tears National Historic Trail, Tuskegee Airmen National 

Historic Site, and the Tuskegee Institute National Historic Site (HM USA Travel and Tourism 

Guide, 2004). 

Alabama is a popular destination for golfers. Alabama’s golf vacations have been rated 

as among the best in the world by Golf Digest (Alabama Bureau of Travel and Tourism, 2004). 

Other tourist activities include fishing, hunting, biking, canoeing, boating, sailing, water skiing, 

diving, snorkeling, camping, rock climbing, wildlife watching, and birding. Popular attractions 

include the Birmingham Zoo, the U.S. Space and Rocket Center, Adventure Island, 

Adventureland Theme Park, the AL Holmes Wildlife Museum, the Alabama Civil Rights 

Freedom Farm Museum, Alabama Constitution Village, the Alabama Jazz Hall of Fame, the 

Alabama River Heritage Museum, the Alabama War Memorial and Wall of Honor, The 

American Village (Alabama’s attraction of the year), and numerous others (Alabama Bureau of 

Tourism and Travel 2004). Additionally, Mobile is home to the country’s oldest Mardi Gras 

celebration (Economic Development Partnership of Alabama, 2004). Other popular festivals 

include the National Shrimp Festival (Gulf Shores), the Alabama Blueberry Festival (Brewton), 

the Tale Tellin’ Festival (Selma), and the Azalea Train Festival (Mobile) (Economic 

Development Partnership of Alabama, 2004). 

 In 1999, travel expenditures in Alabama totaled over $5 billion dollars; expenditures 

increased to nearly $6 billion dollars in 2000. In 2002, 18 million visitors to Alabama spent over 

$6.5 billion dollars, a 7 percent increase from 2001. Also in 2002, travel industry expenditures 

constituted roughly 3 percent of the gross state product, and created nearly 140,000 direct and 

indirect jobs. In total, the economic impact of tourism and travel in Alabama topped $3 billion 

dollars, while state and local tax revenues approached $417 million. Baldwin County has the 

largest travel-related earnings in the state (Alabama Travel Industry, 2003). 

F. LOCAL GOVERMENT 

Governmental Structure. The State of Alabama has a tripartite governmental structure 

with Executive, Judicial and Legislative branches. It is governed according to the articles of its 

State Constitution. The governor, who is elected to a four-year term, is the state’s chief 

executive. Two successive terms may also be served, subject to re-election. Other elected 

executive positions include: Lieutenant Governor, Secretary of State, Treasurer, Attorney 

General, Commissioner of Agriculture and Commerce, and the Commissioner of Insurance. 

Revenues and Taxation. Alabama imposes a statewide tax of 6.5 mills. Alabama’s 

property taxes are among the lowest in the United States (Economic Development Partnership of 

Alabama, 2004). As per the Alabama State laws and constitution, homesteads are exempt from 

all state ad valorem taxes. However, certain restrictions apply depending on age, assessed value 

of property, and gross adjusted income (Alabama Department of Revenue, 2003). 

 Alabama state tax revenues for the 2002-03 fiscal year totaled $6.1 billion dollars; up 

from $6.0 billion (0.9%) in the 2001-02 fiscal year. Net taxable assessed valuation for all 

counties, combined, totaled $35.5 billion dollars in 2002. Property tax collections for this year 

totaled $1.75 billion dollars and derive from the following sources: $233 million, state net taxes; 

$470 million, county net taxes; $676 million, school net taxes; and $371 municipal net taxes. 

Total income tax collections (individual and corporate) equaled $2.7 billion; refunds amounted 

to $438 million dollars. State sales tax collections summed to $1.5 billion dollars; state use tax 
281

collections were $174 million dollars, and state lodgings tax totaled $31 million dollars 

(Alabama Department of Revenue, 2003). 

 

G. SOCIAL CONTEXT 

Education. As of 2000, there were 128 school districts in Alabama, with 1,367 public 

schools: 700 elementary, 235 middle schools, 269 high schools, and 157 combination schools. 

There were also 601 private schools (390 K-8 and 211 high schools). There were no charter 

schools. A total of 729,988 students attended those public schools, served by 46,929 faculty 

members, in the 1999-2000 school year. In that same year, per student expenditures totaled 

$5,188 (U.S. Department of Education, 2002a). In 2001, the average teacher salary in Alabama 

equaled $37,206 or 84 percent of the national average of $44,327 (Education America.Net, 

2003). 

Alabama’s indicators of educational health are mostly promising. For example, in the 

1999-2000 school year, 82 percent of all fourth graders were reading above the basic level, while 

85 percent were performing above the basic level in mathematics. Also in this school year, 64 

percent of all middle school students in the state were reading at a proficient level or higher, 

while 72 percent were at least proficient in mathematics. Additionally, Alabama’s high school 

dropout rate of 4 percent was lower than the national rate of 5 percent. In that same year, 

however, only 64 percent of Alabama high school graduates enrolled in college compared to 73 

percent at the national level. While the percentage of high school graduates in the State of 

Alabama was above par relative to the nation, the percentage of four-year college graduates in 

Alabama is substantially below national levels (Table 6) (U.S. Department of Education, 2002a). 

 In 2000, there were 61 institutions of higher education spread out across the State of 

Alabama. Of these, 16 were public four-year universities, 28 were public two-year universities, 

16 were private four-year colleges, and one was a private two-year college (Alabama 

Commission on Higher Education, no date). 

Table 6 

 Educational Attainment of Adults (age 25+), Alabama State: 1990-2000 

Year Educational Attainment of Adults Ratio to Nation 

0-8 

Years 

Some 

High 

School 

High 

School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

High School 

Diploma 

BA/BS 

or More 

2000 8.3% 16.4% 30.4% 20.5% 19.0% 1.06 0.77 

1990 13.7% 19.4% 29.4% 16.7% 15.7% 0.82 0.64 

Source: U.S. Census Bureau, 2000b. 

Health and Welfare. The availability of healthcare in Alabama exceeds the national 

average. In 2001, there were 107 county hospitals and 218 nursing homes in Alabama. These 

institutions averaged 3.2 hospital beds per 1,000 population (American Hospital Association, 

2003). Alabama ranks 12th among U.S. states in terms of available hospital beds (one being the 

hospital with the highest number of beds per 1,000 population); the national average is 2.9. 

There are also 84 federally qualified health centers and 60 rural health clinics in the state. In that 
282

year, the health care industry employed 8 percent of Alabama’s workforce, compared to 7 

percent nationally (Kaiser Family Foundation, 2003). 

 Although welfare reform has reduced the number of children receiving welfare in 

Alabama in recent years, 24 percent of children less than 18 years old, and 28 percent less than 

five years old still were living below the poverty threshold in 20001

. However, the poverty 

burden is disproportionately borne by African-American children. African-American children 

comprised 22 percent of Alabama’s total child population in 2000, but accounted for 79 percent 

of child welfare recipients in that year. In comparison, Caucasian children comprised 65 percent 

of Alabama’s child population, but accounted for only 22 percent of child welfare recipients. 

Additionally, 14 percent of Alabama families in 2000 also were receiving food stamps. These 

statistics suggest that while welfare reform has reduced the number of families receiving welfare, 

their conditions of poverty have not been significantly improved (Alabama Welfare Report, 

2000). 

 Other aspects of Alabama’s child welfare are also in need of improvement. In 2000, 10 

percent of babies born in Alabama were low birth-weight, compared to almost 8 percent at the 

national level. Infant mortality in this year was also higher in Alabama (nine per 1,000 live 

births) than at the national level (seven per 1,000 births) (Alabama State Data Center, 2000). 

The rate of births to teenage mother is also higher in Alabama (15%) than at the national level 

(11%). For example, in 2001, 60,454 babies were born in Alabama. Of those births, 8,820 were 

to teenage mothers (51% Caucasian, 44 % African-American, 4% Hispanic, and >1% “other”) 

(Kaiser Family Foundation, 2003). 

 Religion. In 2000, 55 percent of Alabama State residents claimed a religious affiliation. 

Of these respondents, 42 percent identified as Evangelical Protestant, 9 percent as Mainline 

Protestant, 3 percent as Catholic, and 1 percent as “other”. Forty-five percent of residents did 

not claim a religious affiliation in that year (American Religion Data Archive, 2002). 

H. ISSUES OF CONCERN 

Despite the significant revenues oil production provides to the state’s coffers, Alabama’s 

economic development, on the whole, is troubled. Alabama residents suffer lower than average 

income levels and higher than average poverty and unemployment rates. For example, in 2000, 

the median family income in the State of Alabama ($41,657) was only 83 percent of the national 

median ($50,046). Additionally, 16 percent of residents in Alabama were living below the 

poverty threshold; this rate is 4 percent above the national rate of 12 percent. In 2000, only 59.7 

percent of adults 16 and older were part of the state’s civilian labor force, compared to 63.9 

percent at the national level. Unemployment rates are also higher in Alabama (6.2%) than for 

the nation as a whole (5.8%). In part, Alabama’s unemployment and poverty woes are linked to 

its general lack of higher-skilled workers with advanced degrees. While the percentage of high 

school graduates residing in Alabama increased significantly between 1990 and 2000, only 19 

percent of residents possessed a BA/BS degree or higher, which is only 0.77 percent of the 

national rate (24.4%). Indeed, unable to fill their demand for skilled labor at the local level, 

Singapore Technologies Aerospace, a parent company of Mobile Aerospace Engineering, 

subsequently relocated their operations outside of Mobile in 2000. 

 

 

1 In 2000, children less than 18 years of age accounted for 25 percent (1,123,422) of Alabama’s 

total population (4,447,100).
283

I. MOBILE, ALABAMA: LABOR MARKET AREA 

Introduction. The purpose of this project is to understand how structural changes in 

industry, particularly oil and gas related industries, impact local communities and public 

institutions within the Gulf of Mexico Region (GOMR). The task at hand requires that we utilize 

a variety of data sources and methodologies to provide a more complete narrative of the 

phenomenon in question. We also utilize a rather unique definition of local communities: Labor 

Market Areas. Labor Market Areas (LMAs) are defined by patterns of transportation to and 

from work both within and across county boundaries. Therefore, the areas contained within 

LMAs better empirically represent local social systems, communities, and economies (Killian 

and Tolbert, 1993). 

 The greater Mobile LMA is located along the Gulf of Mexico and is centered between 

two major ports along the Gulf of Mexico: New Orleans and Mobile. It is made up of eight 

Alabama counties: Baldwin, Clarke, Conecuh, Escambia, Mobile, Monroe, Washington, and 

Wilcox (Map 14). In 2000, these eight counties had a combined population of 675,250 persons 

(U.S. Census Bureau, 2000b). 

 At the heart of this analysis are changes in the industries related to offshore oil and gas 

exploration and production, particularly the boom and bust periods of the 1970s and 1980s. In 

the profile that follows, we first present an overview of the significance of the project, followed 

by a theoretical framework with which to examine the interconnection between industry and 

local community structural changes. 

 The analysis itself is divided into three units of time: 1940-1970, 1970-1990, and 1990-

2000. The first unit of time presents a brief industry history of the Mobile LMA from 1940 to 

1970, followed by a minimalist overview of population changes. In the second unit, we examine 

all oil and gas and related industries within the LMA for the years between 1970 and 1990, 

inclusive. We then link industry changes during this period to fluctuations in population 

structure and dynamics, education, and local government finance. The third unit examines the 

period between 1990 and 2000 to assess the fallout of the oil and gas industry during the decade 

immediately following the bust. 

 Industry Overview. The oil and natural gas industry experienced a boom during the 

1970s (Gramling, 1996; Seydlitz and Laska, 1994). Rising demands for on-shore domestic 

supplies of oil, and political instability surrounding OPEC and the Middle East increased 

offshore oil and natural gas exploration activities in the Gulf of Mexico (Gramling, 1996; 

Gramling and Freudenburg, 1990). The subsequent “boom” is reflected in the LMA 

employment data. For example, in 1970, approximately 71,000 workers were directly employed 

full-time in the oil and natural gas industry in the coastal economies of the Gulf of Mexico. By 

1980, that number had grown to over 145,000, a net increase of 105 percent––and those numbers 

do not reflect changes in oil and gas multiplier industries such as equipment manufacturing, 

water transportation, wholesale trade, and general services. 

 During the early 1980s, however consumption trends began to change and affect 

employment. First, a gradual drop in demand occurred as substitution effects played-out, with 

actors reducing their consumption of oil and gas by-products (e.g., buying more fuel efficient 

cars; see Gramling, 1996). Additionally, the oil and natural gas industries experienced a sharp 

decline in the mid 1980s brought about largely by overproduction among OPEC members trying 

to “starve” weapon shipments into warring Iran and Iraq (Heilbroner and Milberg, 1999). 
284

Map 14. Mobile, Alabama Labor Market Area.
285

Between 1980 and 1990, the total number of workers in the oil and natural gas industries 

in the coastal economies of the Gulf of Mexico declined from over 145,000 to 112,000, a 

decrease of 23 percent. Figure 1 presents the “boom and bust” data as reflected in the price of 

oil. 

 Figure 1. Crude Oil Prices, U.S. Average: 1969-1998 (Energy Statistics Sourcebook, 

 1999). 

The coastal economies of some oil dependent LMAs in the Gulf of Mexico were more 

severely impacted by the oil bust than others. For example, the Lafayette LA economy lost 

14,000 jobs in the oil and natural gas extraction industries between 1982 and 1988, a 63 percent 

loss. Other industries throughout the greater Lafayette area were affected as well, with total 

employment dropping from 200,000 workers in 1982 to 160,000 workers in 1987.2 These losses 

translated into an unemployment rate of more than 16 percent in 1988. However, the Lafayette 

area was not the hardest hit by the oil bust; unemployment rates exceeded 20 percent in some 

other coastal communities (Gramling, 1996). 

Sociology of Regional Processes. To understand how industries, public institutions, and 

communities change in response to fluctuations in the oil and gas industries, we draw upon the 

assumptions of human ecology theory. One of these assumptions is that the range and diversity 

of community industry functions are important determinants of community size, complexity and 

organization (see Frisbie and Poston, 1976; Hawley, 1986; Mencken, 1997; Murdock et al., 

 

2 Source: U.S. Department of Commerce’s Regional Economic Information System of the 

Bureau of Economic Analysis. 

0

10

20

30

40

50

60

196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998
286

1993; Nord and Luloff, 1993; Poston, 1984; Frisbie and Poston, 1978). Communities also can be 

placed along a continuum of industry structures, from less to more diverse. Generalist 

communities (those with a variety of industries) and specialist communities (those with one or 

two main industries) both have advantages and disadvantages for growth and social organization 

at the local level (Poston, 1984). 

Generalist communities are larger in size and more complex in structure. Fluctuations in 

one industry do not reverberate throughout the entire system so long as the other industries upon 

which the community depends for employment are independent of those shocks and remain 

relatively stable. As a result, generalist systems tend to be more stable over time. This 

longitudinal stability is important for local public institutions, such as schools and financing of 

local government services, because it allows administrators to plan for incremental changes in 

the supply of revenues and the demand for resources. Generalist systems can also support more 

stable population growth patterns (Frisbie and Poston, 1976, 1978; Micklin and Choldin, 1984; 

Poston, 1984). 

 Specialist communities, on the other hand, are primarily dependent upon one or two 

industries for subsistence. Communities that rely upon natural resource-based industries, such as 

coal, oil/gas, timber, or fishing, are specialist communities (Gramling and Freudenburg, 1990; 

Hawley, 1986; Rural Sociological Society Task Force, 1993). 

A second assumption of human ecology theory is that significant industry contraction 

(and expansion) will alter drastically the social organization of the community (England and 

Albrecht, 1984; Jobes, 1999; Krannich and Grieder, 1984). During industry contraction, jobs are 

lost, and an out-migration of younger population typically results (RSS, 1993). The negative 

effects of these cycles, particularly in rural America, manifest in social disorganization, higher 

crime rates and other social problems (Freudenburg and Jones, 1991; Jobes, 1999). 

Third, the human ecological approach assumes that local communities are ecosystems 

comprised of four basic and interdependent components: population, organization, environment, 

and technology (Hawley, 1986; Poston, 1984; Micklin and Choldin, 1984). This approach 

further assumes that changes in one of these four components will create changes throughout the 

community. For example, changes in the external environment (e.g., oil prices dropping 

significantly) will affect changes in the other components of the community (jobs and 

population) that rely upon the oil and gas industry for employment (Gramling, 1996). 

Additionally, changes in the technology used in the production of sustenance (e.g., 

mechanization of coal extraction) will affect the population and organization of the ecosystem 

(loss of jobs and out-migration), independent of any changes in the external environment. Not 

surprisingly then, economies that were most involved in the exploration and production of oil 

and natural gas in the Gulf of Mexico region were also most affected by changes in the oil and 

gas industry. Those communities that are more concentrated in multiplier industries will also be 

affected, but not as directly.

First Unit of Analysis: Mobile LMA Employment, 1940-1970. Much like the Beaumont 

LMA in Texas, the Mobile LMA economy is heavily concentrated in manufacturing 

employment, while mining employment is minimal. The data show that, between 1940 and 

1970, the major connection between the Mobile LMA and the oil and gas industry was indirect, 

or upstream, through manufacturing. Prior to 1973, manufacturing employment provided much 

grater stability than oil and gas work. 
287

Between 1940 and 1970, total employment in the Mobile LMA grew by 83 percent. The 

service industry dominated that growth (Figure 2). In 1940, however, the agricultural sector was 

the LMA’s primary employer, employing nearly one-third of Mobile’s entire workforce. 

 Figure 2. Major Industry Employment, Mobile LMA: 1940-2000 (U.S. Census Bureau, 

 2000b). 

 Manufacturing was the second largest industry, employing over 18,000 workers and 

almost 20 percent of the workforce. Mining, a key oil and gas related industry, employed less 

than 200 workers, or 1 percent of the workforce, throughout the Mobile LMA. 

 Growth continued throughout the 1940s in the Mobile LMA. Between 1940 and 1950, 

total employment grew by 26 percent, adding 24,000 jobs. With the exception of agriculture 

(-27%), employment growth rates were high in all sectors. Employment growth was strongest in 

services and wholesale/retail trade, where over 20,000 jobs were added. Manufacturing 

employment grew by over 50 percent, adding almost 9,000 jobs. 

 Industry expansion continued throughout the 1950s. During that decade, total 

employment grew 41 percent. Services led all sectors with a skyrocketing 233 percent growth 

rate. Construction employment grew by 42 percent, adding 4,000 new construction jobs. By 

1960, services employed 38 percent of the total workforce and manufacturing employed 21 

percent. However, agricultural employment continued a downward trend, declining by 55 

percent. Mining employment remained steady at less than 1 percent. 

 The employment boom in the Mobile LMA slowed dramatically between 1960 and 1970. 

In that decade, total employment in the Mobile LMA grew by only 3 percent. Moreover, one of 

its most dynamic industries––services––began to contract. The already diminishing agriculture 

0

 20,000

 40,000

 60,000

80,000

 100,000

 120,000

 140,000

 160,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Constr. Manuf. Trans.Pub/Util. Whlsale/Retail Services
288

industry declined even further by 45 percent. Despite these negative growth trends, 

manufacturing employment increased by 26 percent, adding 10,000 new jobs between 1960 and 

1970. By 1970, manufacturing employed 26 percent of the labor force, while services 

employment dropped to 33 percent. And, although the mining industry experienced a 633 

percent growth rate between 1940 and 1970, it still employed less than 1 percent of the total 

Mobile LMA workforce.

 Mobile LMA Demographic Changes: 1940-1970. In 1940, 330,026 people lived in the 

Mobile LMA. By 1970, the population had grown by 51% to 507,392. 

Second Unit of Analysis: Mobile LMA Employment, 1970-1990. Total employment in 

the Mobile LMA increased throughout most of the 1970s, 1980s, and 1990s. Moreover, there 

were no appreciable downturns in total employment during that time (Figure 3). 

 

0

50,000

100,000

150,000

200,000

250,000

1970

1972197419761978

198019821984

19861988

1990

 

 Figure 3. Total Annual Employment, Mobile LMA: 1970-1990 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 During the 1970s, each industry sector within the Mobile LMA reflected positive growth 

(except for agriculture). Growth was strongest in services (52%) and construction (59%). 

Manufacturing employment grew by 14 percent, employing over 50,000 workers by 1980. And, 

while mining experienced an 80 percent growth during the 1970s, it still employed less than 1 

percent of the Mobile LMA workforce. 

While employment beginning to plateau in the late 1970s, it demonstrated a renewed 

trend of steady growth during the 1980s. Between 1980 and 1990, employment in the Mobile 

LMA increased 35 percent. Nonetheless, there were losses in several sectors. Services grew by 

22 percent, and accounted for 40 percent of all employment. At the same time, manufacturing (-

2%), mining (-7%), construction (-2%), and agriculture (-5%) all suffered losses. Still, the 

overall losses were not comparable to the employment losses suffered in other Gulf of Mexico 

LMAs. 
289

Mobile LMA Demographic Changes: 1970-1990. In 1970, 507,392 people lived in the 

Mobile LMA. By 1990, the population had grown by 20%, increasing to 607,965. 

Third Unit of Analysis: Mobile LMA Employment, 1990-2000. The 1990s were a 

period of economic growth in the Mobile LMA, with employment growing by 10 percent. 

Services led this growth, experiencing a 38 percent increase. However, manufacturing lost 5,000 

jobs. The employment growth is reflected in the population growth, which was 11 percent for 

the entire LMA. This growth rate is on par with the national growth rate, but is only half of the 

population growth experienced in the adjacent Biloxi LMA in Mississippi. It is likely that the 

loss of manufacturing jobs kept growth rates from exceeding national growth rates during the 

1990s. 

Mobile LMA Demographic Changes: 1970-1990. In 1990, 607,965 people lived in the 

Mobile LMA. By 2000, the population had grown by 11%, increasing to 675,250. 

Forecasting Analysis. Between 1970 and 1990, the Mobile LMA economy transformed 

from one that was primarily manufacturing-oriented to one that was service-based. However, the 

Census data for this period do not tell a complete story of the changes that occurred in the 

Mobile LMA over this time period. We now turn to an analysis of annual employment data for 

the Mobile LMA in order to better understand the changes that occurred between Census years. 

 In order to establish when, or if, unexpected changes in employment occurred in the 

Mobile LMA, we performed a time-series forecasting analysis. In our analysis, we employ a 

moving average forecasting model to locate the years that the shocks occur in the Mobile LMA. 

The forecasting procedure includes the following. First, three-year employment moving 

averages (current plus previous two years) of employment levels are computed. Second, at each 

year the expected value (three-year moving average) is subtracted from the observed value. 

Each of these deviations is squared to provide the forecasting error for each year. These squared 

deviations are summed and averaged across all years in the analysis to compute a mean squared 

error (MSE). We then establish a “shock” for any given year in which the squared deviation for 

that year is greater than or equal to two times the mean squared error for the industry sector in 

question (Anderson et al., 1990). 

 The results of this effort are reported in Figures 4 and 5. The data in Figure 4 show the 

actual employment data charted with the three-year employment moving average for each year. 

Figure 5 documents forecasting errors, which occur when the observed employment number in a 

given year substantially exceeds the expected employment number in that year (based on a threeyear moving average). This data highlights the forecasting errors for four years: 1977, 1978, 

1993, and 1998. The data from Figure 4 illustrate significantly greater employment was 

observed in these four years than was expected as based on the forecasting analysis. 

Furthermore, we find no statistically significant declines in employment for any year between 

1969 and 2000. 
290

0

50,000

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250,000

300,000

350,000

1971

1973

1975

1977

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1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

Employment 3-Yr. Moving Avg.

0

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350,000

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

Employment 3-Yr. Moving Avg.

 Figure 4. Total Annual Employment and Three-year Moving Averages, Mobile LMA: 

 1971-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 

 Forecasting Errors 2 X MSE 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

19891990199119921993199419951996199719981999

Forecasting Errors 2 X MSE

19711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999

 Figure 5. Forecasting Analysis for Employment, Mobile LMA: 1971-1999. 
291

 Figure 6 shows annual employment data for nine general industry categories from 1969 

to 2000. These data will show the years and specific industries in which employment declined. 

While the total employment analysis shows no significant downturn, the Census data show four 

industry sectors that lost employment during the 1980s. One of those industries was 

manufacturing, a key employer in the Mobile LMA. Manufacturing lost 6,000 jobs between 

1982 and 1984. 

0

20,000

40,000

60,000

80,000

100,000

120,000

Agric Mining Construction

Manufacturing Transportation and public utilities Wholesale trade

Retail trade Finance, insur ance, and real estate Services

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Figure 6. Employment Growth by Industry, Mobile LMA: 1969-2000.

0

20,000

40,000

60,000

80,000

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120,000

Agric Mining Construction

Manufacturing Transportation and public utilities Wholesale trade

Retail trade Finance, insur ance, and real estate Services

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Figure 6. Employment Growth by Industry, Mobile LMA: 1969-2000.

Figures 7 and 8 display the forecasting analyses for manufacturing employment between 

1971 and 1999. These data identify 1973, 1977, 1978, 1982, and 1983 as important transitional 

years. As evident in Figure 8, the 1970s were a period of exceptional growth in manufacturing 

employment in the Mobile LMA. However, manufacturing also experienced significant declines 

in the 1980s. Manufacturing lost 12.5 percent of jobs in the Mobile LMA between 1981 and 

1983, which is a greater loss the forecasting analysis would expect. Because the level of 

employment in the mining sector was continually low (less than 1%), the impact on the Mobile 

LMA’s overall performance was negligible. 

 The annual Census data indicate the Mobile LMA was oriented toward manufacturing 

employment for most years prior to and including 1982. Manufacturing was a key performing 

industry, generating over 8,000 new jobs in the Mobile LMA between 1971 and 1983. However, 

manufacturing employment also experienced a sharp downturn in 1983 and did not rebound to 

previous levels of employment through 1999. Overall, though, total employment levels did not 

drop significantly during the same period. This is most likely because employment losses in the 

manufacturing sector were offset by employment gains in services and wholesale/retail trade. 

However, it may be that the timing of the manufacturing losses in the Mobile LMA was linked to 

the oil and gas industry. 
292

0

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20,000

30,000

40,000

50,000

60,000

197119731975

197719791981

1983

1985

19871989

1991

1993

1995

1997

1999

Employment 3-yr. Moving Avg.

 Figure 7. Total Annual Employment and Three-year Moving Averages, Mobile LMA: 

 1971-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 Figure 8. Forecasting Analysis for Manufacturing, Mobile LMA: 1971-1999. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

 1997 1998 1999

Forecasting Error 2 X MSE
293

Detailed Industry Code Analysis. In this next section, we present analyses of industry 

sector codes for four key industry groups: manufacturing, mining, transportation and wholesale 

trade (Table 1). 

Table 1 

Key Industry Groups and Sectors 

Manufacturing

Fabricated Structural Metal 

Products (SIC 3440), this 

category includes manufacture 

of barge sections, ship 

sections, buoys, and metal 

plates for gas tanks, gas 

holders, oil storage tanks, 

large diameter pipes, pressure 

valves, storage tanks and also 

portable building.

Ship and Boat Building and 

Repairing (SIC 3730), this 

category includes building and 

repairing barges, cargo 

vessels, drilling platforms and 

dry docks.

Oil Field Machinery (SIC 

3533), this category includes 

bits, rock and oil field tools, 

derricks for oil and gas fields, 

drill rigs, drilling tools for gas, 

oil and water wells.

Mining 

Drilling Oil and Gas Wells

(SIC 1381), this category 

includes, on a contract basis, 

directional drilling, redrilling, 

reworking, and “spudding in” 

of oil and gas wells.

Oil and Gas Field 

Exploration Services (SIC 

1382), this category includes, 

on a fee basis, geophysical 

exploration, aerial exploration, 

and seismograph services.

Oil and Gas Field Service 

N.E.C. (SIC 1389) this 

category includes, on a 

contract basis, excavating 

slush pits and cellars, grading 

and building of foundations, 

well surveying, running and 

cutting casings, tubes and 

rods, cementing and shooting 

wells, acidizing and 

chemically treating wells. 

Operating oil and gas wells 

for others on a contract basis 

are also included in this 

category. 

Transportation 

Water Transportation (SIC 4400), this category primarily includes stevedoring.

Wholesale Trade 

Industrial Machinery and Equipment (SIC 5084), this category includes the wholesale 

of derricks, oil field tool joints, oil well supply houses, oil well machinery equipment and 

supplies. 
294

 Those eight detailed categories are all directly related to offshore and on-shore oil and 

gas activities. We chose those categories based on a) relationship to oil and gas activities, b) 

employment levels, and c) availability of data in the years we are studying. The manufacturing 

category includes the sub-categories of fabricated structural metal products, ship and boat 

building and repair, and oil field machinery. Mining includes drilling oil and gas wells, oil and 

gas field exploration services, and oil and gas field service, N.E.C. The transportation category 

focuses exclusively on water. Wholesale trade considers only industrial machinery and 

equipment. Analyses of these trends will show the extent to which oil and gas activities affected 

the “boom” in total employment and the “bust” in manufacturing employment in the Mobile 

LMA. 

 Manufacturing. The Fabricated Structural Metal Products (SIC 3440) employment data 

show illustrate important periods for this industry (Figures 9 and 10). First, there was steady, 

significant growth between 1973 and 1978. Employment levels reached 1,500 workers in 1978. 

Following that growth, there was a sharp drop-off in the early 1980s. Employment fell to 

approximately 500 workers in 1982. However, another significant growth pattern follows that 

oil and gas “bust”. By 1996, employment in this industry had reached a 30-year high of 2,000 

workers. 

 Another key industry sector, Oil Field Machinery manufacturing (SIC 3533), is not 

present in the Mobile LMA. No workers were employed in this sector. 

 Figure 9. Annual Employment for Fabricated Structural Metal Products, Mobile LMA: 

 1966-1996 (U.S. Census Bureau, 2000a). 

0

500

1,000

1,500

2,000

2,500

1966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996

Employment 3 Yr. Moving Avg. 
295

Forecasting Errors Twice MSE (Statistical Significance)

19661967196819691970197119721973197419751976197719781979198019811982

1983

19841985

1986

1987

19881989

1990

1991

1992

1993

19941995

1996

Forecasting Errors Twice MSE (Statistical Significance)

19661967196819691970197119721973197419751976197719781979198019811982

1983

19841985

1986

1987

19881989

1990

1991

1992

1993

19941995

1996

Forecasting Errors Twice MSE (Statistical Significance)

19661967196819691970197119721973197419751976197719781979198019811982

1983

19841985

1986

1987

19881989

1990

1991

1992

1993

19941995

1996

Forecasting Errors Twice MSE (Statistical Significance)

19661967196819691970197119721973197419751976197719781979198019811982

1983

19841985

1986

1987

19881989

1990

1991

1992

1993

19941995

1996

 Figure 10. Forecasting Analysis for Fabricated Structural Metal Product (manufacturing), 

 Mobile LMA: 1966-1996. 

 In contrast, the Ship and Boat Building and Repairing (SIC 3730) sector has a strong 

presence in the Mobile LMA. The employment data for this industry sector suggest two 

important patterns (Figures 11 and 12). First, the data show steady growth beginning in the mid1970s and continuing through 1982; this industry sector employed over 5,000 workers during 

that period. Second, that growth period was followed by sharp declines beginning in 1982. 

Almost 4,200 jobs were lost in this industry sector between 1982 and 1983 alone. This 

downward trend continued through 1985. Significantly, the years of the “boom and bust” for the 

Ship and Boat Building and Repairing industry in the Mobile LMA correspond to the general 

“boom and bust” pattern in the oil and gas industry. These data show that the Mobile LMA was 

not fully insulated from direct changes in the oil and gas industry. Furthermore, these data 

indicate that the majority of manufacturing jobs lost in the early 1980s in the Mobile LMA were 

from this sector. 
296

 

 Figure 11. Annual Employment for Ship and Boat Building and Repair 

 (manufacturing), Mobile LMA: 1966-1996 (U.S. Census Bureau, 2000a). 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Forecasting Error Twice MSE (Statistical Significance)

 Figure 12. Forecasting Analysis for Ship and Boat Building and Repair (manufacturing), 

 Mobile LMA: 1966-1996. 

 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Employment 3 Yr. Moving Avg. 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

19661967196819691970197119721973197419751976197719781979198019811982
297

 Mobile LMA Mining. Employment in the Drilling Oil and Gas Wells (SIC 1381), Oil 

and Gas Field Exploration Services (SIC 1382) and Oil and Gas Field Service N.E.C. (SIC 

1389) sectors in the Mobile LMA is negligible. All together, they represent less than 400 

workers in any given year under consideration (Figure 13). Employment in mining generally has 

represented less than 1 percent of the workforce in the Mobile LMA, and is very small in 

comparison to other LMAs in the GOMR (e.g., Lafayette, Louisiana). 

0

50

100

150

200

250

300

350

400

1964

1965 19661967

1968

1969

1970

1971 1972

19731974

1975 1976

19771978

19791980

1981

1982 19831984

1985

1986

1987

19881989

19901991

1992

1993

19941995

1996

Drilling Oil and Gas Wells Oil and Gas Exploration Services Oil and Gas Field Services N.E.C. 

0

50

100

150

200

250

300

350

400

1964

1965 19661967

1968

1969

1970

1971 1972

19731974

1975 1976

19771978

19791980

1981

1982 19831984

1985

1986

1987

19881989

19901991

1992

1993

19941995

1996

Drilling Oil and Gas Wells Oil and Gas Exploration Services Oil and Gas Field Services N.E.C. 

 Figure 13. Detailed Mining Categories, Mobile LMA: 1964-1996 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

Mobile LMA Water Transportation. Employment in Water Transportation (SIC 4400) 

peaked sharply in 1979 at almost 9,000 workers. By 1981 employment fell to 3,600 workers. 

An additional 800 jobs were lost between 1981 and 1984. The forecasting analysis of this 

industry confirms that 1979 and 1981 were the key years for this industry. While the pattern in 

this industry is consistent with the “boom and bust” patterns of the oil and gas industry, we 

maintain that the two-digit codes for water transportation are not adequate to capture fully the 

effects of offshore activities. Unfortunately, there is no category that measures water 

transportation directly related to offshore oil and gas activities. Moreover, we know of no SIC 

code that will allow us to achieve this task. In short, the water transportation data are suggestive 

of an impact in the Mobile LMA, but no conclusion can be drawn from this analysis. 

Mobile LMA Wholesale Trade. The Industrial Machinery and Equipment (SIC 5084) 

category includes the wholesale marketing of oil well machinery and gas equipment. These data 

are available only from 1977 to 1996, which does not provide enough data to perform a 

forecasting analysis. However, this industry grew significantly between the 1985 and 1996. In 

fact, this industry employed over 1,000 workers in 1996, which is a 20-year high. While this 

sector does not represent major employment levels, it does show that some post-bust oil and gas 

activities were located in the Mobile LMA. 
298

 The detailed industry analysis shows that the impact of the “boom and bust” pattern in 

the oil and gas industry affected only a small number of industries in the Mobile LMA. 

Furthermore, unlike other LMAs in the Gulf of Mexico region, the Mobile LMA did not 

experience a significant downturn in total employment during the 1980s. However, there was a 

sharp drop-off in employment in the ship and boat building and repairing sector. Other than this 

industry, the Mobile LMA was not significantly affected by the downturn in the oil and gas 

industry. The loss of manufacturing jobs in the 1980s was offset by an increase in service and 

retail trade employment. However, to the extent that the service sector jobs were generally lowpaying, entry-level positions, growth in this sector is not a strong substitute for losses in highpaying manufacturing jobs. Therefore, while the impact of the downturn in the manufacturing 

sector did not manifest in significant losses in total employment, the downturn may have had a 

negative impact on other socio-economic indicators. Overall, the employment data for this LMA 

indicate that the “boom and bust” patterns of the 1970s and 1980s did not affect the Mobile 

region with the exception of decline in shipbuilding and repairing. 

Mobile LMA Population, Education, and Local Government: 1940-2000. The Mobile 

LMA population has grown steadily between 1940 and 2000 (Table 2). Between 1970 and 1990, 

the population of the Mobile Labor Market Area increased by approximately 100,000, or 20 

percent. Mobile County was the fastest growing area, increasing in population by 55 percent 

between 1940 and 2000. Baldwin County (a rural county in transition) was the second fastest 

growing area, increasing by 30 percent in that same period. Between 1940 and 2000, the Mobile 

LMA population grew by 104 percent. However, between 1980 and 1990, the population of the 

Mobile LMA grew by only 5 percent; a rate less than half of the national growth rate of 10 

percent. Still, this slow growth trend mirrors growth trends in the neighboring Biloxi LMA in 

Mississippi. 

Table 2 

Population by County, Mobile LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Baldwin 32,324 40,997 49,088 59,382 78,556 98,280 140,415 

Clarke 27,636 26,548 25,738 26,724 27,702 27,240 27,867 

Conecuh 25,489 21,776 17,762 15,645 15,884 14,054 13,839 

Escambia 30,671 31,443 33,511 34,906 38,440 35,518 38,181 

Mobile 141,974 231,105 314,301 317,308 364,980 378,643 399,773 

Monroe 29,465 25,732 22,372 20,883 22,651 23,968 24,177 

Washington 16,188 15,612 15,372 16,241 16,821 16,694 17,868 

Wilcox 26,279 23,476 18,739 16,303 13,568 13,568 13,130 

LMA Total 330,026 416,689 496,883 507,392 578,602 607,965 675,250 

Source: U.S. Census Bureau, 2000b. 

The data on racial composition show different growth patterns for African-Americans 

and Caucasians between 1970 and 1990. Between 1970 and 1980, the Caucasian population 

grew by 16 percent and the African-American population by 8 percent. Between 1980 and 1990, 

the African-American population grew by 29 percent, while the Caucasian population increased 
299

by 6 percent. The trends for the Caucasian population suggest some minor out-migration that 

resulted from the loss of manufacturing jobs in the LMA. Furthermore, the trends for the 

African-American population growth are counter-intuitive to southern labor markets. Most data 

indicate that out-migration of black population was the norm for any decade in the 1900s. 

Further, this trend is found in most of the oil and gas LMAs in the region. However, data for 

Mobile do not suggest extensive African-American out-migration. In fact, the high growth rates 

are significantly greater than would be expected via natural replacement (Tables 3 and 4). 

Table 3 

Percent of White Population, Mobile LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Baldwin 75.0 77.5 78.9 81.6 83.9 86.0 87.1 

Clarke 47.8 50.2 50.4 56.1 56.9 56.8 55.9 

Conecuh 55.4 54.6 54.4 55.3 58.7 57.6 55.4 

Escambia 66.8 66.4 65.8 62.6 67.7 68.5 64.4 

Mobile 63.6 66.2 67.7 67.4 67.5 67.2 63.1 

Monroe 47.0 48.8 49.3 54.2 56.4 59.5 57.7 

Washington 61.9 60.6 65.4 69.7 67.6 65.9 65.0 

Wilcox 21.7 20.9 22.1 31.5 33.7 31.0 27.5 

LMA % Total 58.1 61.9 64.7 66.5 67.8 68.5 66.8 

 Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Black Population, Mobile LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Baldwin 24.9 22.4 21.0 17.8 15.3 14.1 10.3 

Clarke 52.1 49.7 49.5 43.8 42.7 42.8 43.0 

Conecuh 44.5 45.3 45.4 44.6 41.1 42.2 43.6 

Escambia 32.1 32.5 32.7 30.3 29.6 28.1 30.8 

Mobile 45.1 33.5 32.1 32.2 31.5 31.1 33.4 

Monroe 52.9 51.1 50.6 45.5 43.0 39.0 40.0 

Washington 38.1 31.9 32.6 30.0 28.1 27.7 26.9 

Wilcox 78.2 79.0 77.8 68.4 74.8 68.9 71.9 

LMA % Total 41.7 38.0 35.0 27.1 31.3 38.6 29.9 

 Source: U.S. Census Bureau, 2000b. 

 Education. The data in Table 5 show that education levels in the Mobile LMA for 1970 

through 2000. The economic growth that occurred during those decades did not result in a 

higher percentage of college graduates in the LMA. Only 14 percent of the adult population had 

graduated from college in 1990, which is significantly less than the national rate of 21 percent. 
300

In 2000, the educational attainment gap widened further, with only 18 percent of Mobile LMA 

adults graduating from college, compared to 26 percent nationwide. 

Table 5 

 Adult Educational Attainment (25+), Mobile LMA: 1970-2000

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

Total 

1970 

Baldwin 36.2% 23.1% 26.7% 7.4% 6.4% 31,524 

Clarke 40.9% 21.8% 25.8% 5.9% 5.4% 13,482 

Conecuh 50.6% 20.6% 20.6% 4.0% 4.1% 8,272 

Escambia 41.2% 24.2% 25.3% 4.5% 4.7% 18,648 

Mobile 33.7% 23.6% 27.2% 7.8% 7.5% 160,718 

Monroe 46.4% 20.9% 21.8% 5.1% 5.7% 10,599 

Washington 49.0% 21.4% 22.9% 3.0% 3.6% 7,674 

Wilcox 51.6% 18.0% 19.4% 4.6% 6.2% 7,554 

LMA Total 36.9% 23.0% 26.1% 7.0% 6.7% 258,471 

1980 

Baldwin 24.1% 20.4% 37.8% 16.2% 13.5% 40,656

Clarke 30.9% 24.0% 33.1% 10.9% 9.7% 13,867

Conecuh 38.9% 22.0% 30.1% 8.3% 6.5% 8,535

Escambia 31.7% 20.9% 35.2% 11.5% 7.7% 20,595

Mobile 21.9% 21.2% 39.1% 16.3% 13.9% 178,484

Monroe 34.1% 19.4% 35.7% 9.7% 9.4% 11,352

Washington 35.6% 20.6% 35.6% 7.5% 5.7% 8,530

Wilcox 44.1% 19.7% 26.7% 8.4% 10.3% 6,928

LMA Total 22.7% 18.9% 33.7% 13.2% 11.2% 321,518

1990 

Baldwin 9.9% 16.9% 31.8% 24.6% 16.8% 64,623

Clarke 17.6% 22.1% 33.4% 16.0% 66.7% 16,285

Conecuh 23.9% 23.4% 32.6% 13.6% 6.4% 8,962

Escambia 17.5% 22.6% 34.8% 17.5% 7.6% 22,527

Mobile 10.8% 19.0% 32.3% 22.2% 15.5% 232,254

1990 

Monroe 17.5% 23.2% 31.4% 17.0% 10.8% 14,228

Washington 20.5% 21.3% 37.0% 14.3% 6.7% 9,960

Wilcox 25.7% 23.1% 39.5% 14.1% 10.3% 7,715

LMA Total 12.4% 19.4% 32.4% 21.3% 14.3% 376,554
301

Table 5 

Adult Educational Attainment (25+), Mobile LMA: 1970-2000 (continued) 

2000 

Baldwin 4.3% 13.6% 29.6% 29.3% 23.0% 96,010

Clarke 10.1% 20.1% 39.0% 21.8% 12.5% 17,072

Conecuh 12.2% 20.0% 38.1% 20.3% 9.2% 9,230

Escambia 10.0% 21.4% 34.7% 23.2% 10.5% 25,510

Mobile 6.7% 16.6% 31.9% 26.1% 18.6% 250,122

Monroe 11.1% 20.9% 34.3% 21.7% 11.8% 15,378

Washington 10.8% 16.9% 43.6% 20.0% 8.6% 11,240

Wilcox 13.7% 26.7% 30.2% 19.1% 10.1% 7,979

LMA Total 7.0% 16.7% 32.2% 25.9% 18.0% 433,171

 Source: U.S. Census Bureau, 2000b. 

Finances. The population of the Mobile LMA increased more quickly than the national 

growth rate during the 1970s. However, population growth was sluggish in the 1990s due to the 

loss of some key manufacturing jobs in the 1980s. Despite that economic setback, the local 

government financial data show that the Mobile LMA remained fiscally stable after the “bust”––

especially when compared to other LMAs in the region (e.g., Lafayette, LA) (Tables 6-9). Total 

revenues increased (in real dollars) between 1972 and 1997. Total debt per capita also increased 

between 1972 and 1997, most likely to support the strong population growth of the 1970s. 

Therefore, it appears that the Mobile LMA local government did not face the financial stresses as 

did local governments in other oil and gas LMAs in neighboring Louisiana. 

 Tax revenues and debt remained very stable in real dollars throughout the 1990s. We 

find none of the “ups and downs” in the Mobile LMA that we find in other LMAs in the region. 

The Mobile LMA economy was much more stable than other oil and gas LMAs in the GOM 

region. 

Table 6 

Total Revenue, Per Capita (in 1997 adjusted dollars), Mobile LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Baldwin $1,058 $1,426 $1,639 $2,061 $1,651 $2,843 

Clarke $934 $1,556 $2,235 $2,671 $1,447 $1,876 

Conecuh $984 $1,371 $1,276 $1,355 $992 $1,656 

Escambia $1,081 $1,414 $1,418 $1,666 $1,407 $2,391 

Mobile $1,254 $1,362 $1,245 $1,525 $1,615 $2,014 

Monroe $1,207 $1,689 $1,597 $1,506 $1,651 $1,786 

Washington $923 $1,015 $1,202 $1,578 $1,661 $2,060 

Wilcox $994 $1,133 $1,903 $2,287 $1,987 $2,776 

LMA Total $1,173 $1,380 $1,390 $1,676 $1,595 $2,186 

 Source: U.S. Census Bureau, 2000a. 
302

Table 7 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Mobile LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Baldwin $1,058 $408 $428 $471 $503 $697 

Clarke $934 $669 $583 $676 $779 $962 

Conecuh $984 $723 $667 $775 $657 $813 

Escambia $1,081 $547 $562 $693 $628 $916 

Mobile $1,254 $421 $434 $483 $552 $726 

Monroe $1,207 $674 $667 $704 $869 $1,198 

Washington $923 $667 $735 $811 $968 $988 

Wilcox $994 $885 $795 $799 $840 $1,185 

LMA Total $1,173 $478 $481 $536 $590 $777 

 Source: U.S. Census Bureau, 2000a. 

Table 8 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Mobile LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Baldwin $191 $155 $175 $373 $389 $583 

Clarke $204 $196 $203 $268 $347 $423 

Conecuh $121 $160 $172 $226 $220 $228 

Escambia $213 $215 $224 $268 $303 $331 

Mobile $438 $443 $403 $523 $624 $704 

Monroe $176 $156 $198 $226 $190 $287 

Washington $133 $186 $287 $294 $317 $418 

Wilcox $98 $126 $116 $200 $168 $250 

LMA Total $341 $343 $325 $440 $509 $606 

 Source: U.S. Census Bureau, 2000a. 
303

Table 9 

 Total Debt, Per Capita (in 1997 adjusted dollars), Mobile LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Baldwin $191 $155 $175 $373 $389 $583 

Clarke $204 $196 $203 $268 $347 $423 

Conecuh $121 $160 $172 $226 $220 $228 

Escambia $213 $215 $224 $268 $303 $331 

Mobile $438 $443 $403 $523 $624 $704 

Monroe $176 $156 $198 $226 $190 $287 

Washington $133 $186 $287 $294 $317 $418 

Wilcox $98 $126 $116 $200 $168 $250 

LMA Total $341 $343 $325 $440 $509 $606 

 Source: U.S. Census Bureau, 2000a. 

 
305

VI. FLORIDA STATE PROFILE 

A. INTRODUCTION 

 Florida is located in the most southeastern portion of the United States. It is bordered by 

the State of Georgia to the north, Alabama to the west, the Gulf of Mexico to the south, and the 

Atlantic Ocean to the east (Map 15). This state encompasses a total of 59,909 square miles 

(53,926 land; 5,983 water). Known for its hot summers and mild winters, Florida’s average 

annual temperatures are 81° (North Florida) and 83° (South Florida) in July, and 53° (North 

Florida) and 69° (South Florida) in January. The highest elevation in the state is 345 feet, while 

the lowest is at sea-level; the mean elevation is 100 feet. Florida had a year 2000 population of 

15,982,378 persons (U.S. Census Bureau, 2000b). 

 In addition to maintaining several large metropolitan areas, the State of Florida oversees 

approximately 11 million acres of protected state lands, more than 7,000 lakes, and 4,510 islands 

of 10 acres or more in size. The Division of State Lands provides oversight for these protected 

areas (Florida Department of Environmental Protection, 2003). Pine, oak, and mixed forests 

comprise the northern part of the state, and decorate the landscape all the way down the 

peninsula to the south-central portion. One finds southern floodplain forests in the northern 

regions as well. Eight highly diverse regions comprise Florida: the Northwest, North Central, 

Northeast, Central/Space Coast, Tampa Bay, Heartland, Southwest, and Southeast regions 

(Enterprise Florida, 2002). 

 The Northwest region has a strong government and military presence. This presence has, 

in turn, shaped the development of the key industries in this region: aviation/aerospace/defense, 

semiconductor production, and information technology (Enterprise Florida, 2002). Tallahassee, 

the state capital, is located here. 

 The North Central region is home to the University of Florida, as well as several 

community colleges and vocational schools. This area’s key growth industries are: 

manufacturing, distribution, forestry, and health care. Four railroads and two commercial 

airports facilitate its transportation services (Enterprise Florida, 2002). 

 There is also a strong military influence in the Northeast region of the state. The welldisciplined workforce in this region attracts many high-tech contractors. Additionally, the 

biomedical industry is a strong contributor to this regional economy. Both the Mayo Clinic and 

Shands Jacksonville Medical Center are located here (Enterprise Florida, 2002). 

 The Central/Space Coast region combines two Florida areas: Central and Space. Home 

to over 50 percent of Florida’s high-tech companies, these areas are part of the “high-tech 

corridor” that spans the peninsula from Daytona Beach, Orlando, Melbourne, and on to Tampa. 

The Space portion features NASA’s Kennedy Space Center, the Spaceport Technology Center, 

and several aeronautic service providers (Enterprise Florida, 2002). 

 The Tampa Bay region is home to two of Florida’s most populous cities–Tampa and St. 

Petersburg. It is also part of the “high-tech corridor” discussed above. The University of South 

Florida is located here (Enterprise Florida, 2002). 
306

Dixie-Gainesville 

Ft Myers 

Ft Myers 
307

 Over 600 technology-related businesses are established in the Southwest region. Its 

renowned beaches and resort islands also make the Southwest a popular tourist destination 

(Enterprise Florida, 2002). Florida Gulf Coast University and the Southwest Florida 

International Airport are located here. 

 The relatively rural Heartland region provides easy access to several deepwater ports and 

international airports. Additionally, the Heartland’s designation as an “Area of Critical 

Economic Concern” provides many incentives to prospective businesses, including local tax 

abatements, free education, and training and job placement for employers. The Heartland is only 

an hour’s drive from many of Florida’s urban areas (Enterprise Florida, 2002). 

 The Southeast is located along the Atlantic Coast. Easy access to multiple transportation 

routes has transformed this region into a natural headquarters for several Latin American 

companies. Indeed, Miami is recognized as “the business capital of Latin America.” 

Additionally, the Southeast region is home to the University of Miami, Florida International 

University, and Florida Atlantic University (Enterprise Florida, 2002). 

 Florida has 67 counties, only five of which produce oil: Collier, Lee, Hendry, Escambia, 

and Santa Rosa. The state’s cumulative crude oil wellhead value in 2000 was nearly $9.4 

million. Opposition to offshore oil production has effectively minimized oil and gas activities in 

the state. Consequently, the state has no refineries. Recently, however, the state approved Lease 

Sale 181 located 100 miles off of the Florida coast in Outer Continental Shelf (OCS) waters. 

 Because of Florida’s limited involvement in OCS activity to date, the oil and gas industry 

has neither significantly benefited nor burdened the state. Additionally, resource experts and oil 

companies continue to disagree about the potential impact of OCS activity in Florida waters. For 

example, during the Department of Interior’s 1991 hearings on offshore oil production, several 

agencies representing the state’s natural resource departments testified that drilling would prove 

detrimental to the environment. In contrast, oil companies emphasized the numerous financial 

and strategic gains that could result from OCS drilling. In the final analysis, however, short-term 

benefits did not appear to outweigh long-term burdens. 

B. BUILT ENVIRONMENT 

Human Geography and Population Centers. Tallahassee, the state capital, had a year 

2000 population of 150,624 residents. Florida’s largest population centers include: Fort 

Lauderdale (152,397), Hialeah (226,419), Hollywood (139,357), Jacksonville (20,990), Miami 

(362,470), Orlando (185,951), Pembroke Pines (137,427), St. Petersburg (248,232), and Tampa 

(303,447) (U.S. Census Bureau, 2000b). 

Transportation and Communication. Florida’s major interstate highways include: 

Interstate 10 running east-west across the Panhandle in northern Florida (363 miles); I-95 

traveling north-south through Florida’s east coast (382 miles); I-4 routing east-west through the 

state’s center (132 miles); and I-75 running north-south on Florida’s west coast (472 miles). 

Minor interstate highways include the I-110 (Pensacola/six miles); I-275 (Tampa, St. Petersburg, 

Bradenton/60 miles); I-375 (St. Petersburg/two miles); I-195 (Miami/4 miles); I-295 

(Jacksonville/35 miles); I-395 (Miami/two miles); and I-595 (Ft. Lauderdale/13 miles) (Trip, 

2006). Twenty state roads also facilitate travel across Florida’s terrain. 

 There are 14 commercial/international airports in Florida: St. Petersburg-Clearwater, 

Daytona Beach, Fort Lauderdale-Hollywood, Southwest Florida, Panama City/Bay County, 
308

Jacksonville, Key West, Miami, Orlando, Palm Beach, Sarasota/Brandenton, Tampa, Melbourne, 

and Orlando Sanford (Florida Department of Transportation, no date). 

 The St. Petersburg-Clearwater Airport is located on Tampa Bay’s western shoreline, just 

north of Petersburg. This 2,000-acre airport has three runways, the longest of which is 8,500 

feet. Eight commercial airliners service this location: American Trans Air, Southeast, USA 

3000, TransMeridian, Air Transat, CanJet, Fly ConQuest, and SeaCoast Airlines (St. PetersburgClearwater International Airport, no date). This airport is also home to a Coast Guard Air 

Station. 

 The Daytona Beach International Airport is located in Volusia County three miles 

southwest of Daytona Beach. Four commercial airlines serve this location: Delta, Comair, 

Continental, and Vintage. This airport has three runways, the longest of which is 10,500 feet 

(Daytona Beach International Airport, 2001). 

 The Fort Lauderdale-Hollywood International Airport is located in Broward County. 

There are 28 scheduled commercial airlines, eight commuter airlines, seven charter airlines, and 

six cargo carriers that fly out of this site. In 2000, this airport facilitated a combined total of 

15,860,004 domestic and international flights (Fort Lauderdale-Hollywood International Airport, 

no date). 

 The Southwest Florida International Airport – “the Gateway to Ft. Myers and Florida’s 

Gulf Coast”– is located in Lee County. Twenty-four commercial airlines serve this airport. In 

2000, 4,897,253 passengers (2,632,093 enplanements, and 2,575,119 deplanements) moved 

through this transportation hub (Southwest Florida International Airport, no date). 

 The Panama City-Bay County International Airport has three runways, the longest of 

which is 6,308 feet. Five major airline companies––Delta, Northwest, U.S. Airways, Comair, 

and Skywest––service this airport (Enterprise Florida, 2002). 

 The Jacksonville International Airport is part of the Jacksonville Airport System. This 

system includes the Craig Airport, Herlong Airport, and Cecil Field (Jackson Airport Authority, 

no date). 

 The Key West International Airport has three major air carriers: US Airways, Delta, and 

American Eagle Airlines. All of this small airport’s international flights and many of its major 

flights are routed through the larger Miami International Airport (Key West Airport, 2004). 

 The Miami International Airport (MIA) is served by most domestic and many 

international carriers. Over 100 airlines serve MIA and fly to more than 150 worldwide 

destinations. This airport provides the county with 241,021 jobs, $18.6 billion in business 

revenue, $8 billion dollars in wages and salaries, three billion dollars in local purchases, $735 

million in state, county, and municipal taxes, and $495 million of federal aviation tax revenue 

(Miami International Airport, no date). 

 The Orlando International Airport (OIA) sits on 23 square miles (14,672 acres) of land. 

OIA is served by 47 commercial airlines and handles 26,700,000 passengers annually. This 

airport has two 12,000 foot runways and one 10,000 runway (Greater Orlando Aviation 

Authority, no date). 

 The Palm Beach International Airport (Palm Beach County) serves almost 6 million 

passengers annually. Fifteen commercial airlines fly out of this 560,000 square foot terminal 

(Palm Beach International Airport, 2000). 

 The Sarasota Bradenton is an international airport. It is served by six major air carriers 

and two commuter airlines (Sarasota Bradenton International Airport, 2002). 
309

 The Tampa International Airport is located in Hillsborough County. It hosts 17 

commercial airlines (Tampa International Airport, 2003). 

 The Melbourne International Airport’s main runway is currently 10,200 feet, but plans to 

extend it to 11,600 feet are in the works. This airport is served by four commercial airlines: 

Delta, Delta Connection, Southeast Vacations, and Vintage Props and Jets, which offers flights 

to the Bahamas (Melbourne International Airport, 2002). 

 The 2,000-acre Orlando Sanford International Airport is located in the City of Sanford in 

Seminole County. This airport features four runways, the longest of which is 9,600 feet. Five 

domestic carriers and nine international charters service this airport (Orlando Sanford 

International Airport, no date). 

 There are also five regional commercial airports in Florida: Pensacola, Tallahassee, 

Okaloosa/Eglin AFB, Gainesville, and Naples, and seven general aviation and/or commercial 

charter airports: the Sebring Regional Airport (Highlands County), Fernandina Beach Municipal 

Airport (Nassau County), Boca Raton (Southern Palm Beach County), Space Coast Regional 

Airport, Merritt Island Airport, Arthur Dunn Airpark (Brevard County), Destin Airport 

(Okaloosa County), Craig Air Center (Duval County), and LaBelle Municipal Airport (Hendry 

County) (Florida Department of Transportation, no date). 

There are 14 deepwater ports in Florida: Port of Pensacola, Port of Panama City, Port St. 

Joe, Port of Tampa, Port of St. Petersburg, Port of Manatee, Port Fernandina, Port of 

Jacksonville, Port Canaveral, Port of Fort Pierce, Port of Palm Beach, Port Everglades, Port of 

Miami, and the Port of Key West. Port St. Joe (Gulf County) is temporarily inactive while it 

redevelops its infrastructure (Florida Ports Council, 2001). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($13,799,421,885) and imports ($19,638,826,168) at these ports (combined) equaled 

$33,438,248,053 (Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year 

amounted to 111,378,473 (22,640,484 exports; 33,656,597 imports; 55,081,392 domestic) 

(Florida Ports Council, 2001). 

 The Port of Pensacola is located in Escambia County in Pensacola Bay. Regarded as 

northwest Florida’s leading deep-water port, the Port of Pensacola can accommodate ships with 

drafts of up to 33 feet. This Foreign Trade Zone has eight deep-draft berths, 432,000 square feet 

of covered storage, and 250,000 square feet of outdoor storage. Its leading commodities include: 

agricultural products, forest products, asphalt, sulphur, lime, mineral aggregates, steel products, 

and automobiles. Burlington Northern Railroad, CSX Transportation, and Rail America service 

this Port (Port of Pensacola, no date). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($103,613,123) and imports ($2,946,958) at the Port of Pensacola equaled $106,560,081 (Florida 

Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 628,603 (236,560 

export; 99,499 import; 292,544 domestic) (Florida Ports Council, 2001). 

 The Port of Panama City is a recognized international “manufacturing” Foreign Trade 

Zone and a catalyst for industrial development in Northwest Florida. It was established in 1967. 

Located in St. Andrew Bay in Bay County, this port’s deepwater terminal has an average depth 

of 32 feet. It features six transit sheds totaling 470,000 square feet, a 30,000 square foot bulk 

warehouse, and 300,000 square feet of paved open storage (Port of Panama City, no date). The 

Port of Panama City’s primary import products include: steel plate, steel coils, lumber, and liquid 

bulk; major export products are: linerboard, wood pulp, machinery, and miscellaneous general 

cargo. It handled 0.9 million tons of cargo in 1997. The Bay Line Railroad provides rail freight 
310

service to the Port, and connects with both the CSX and Norfolk Southern railroads (City of 

Panama City, 2006). States served by this port include: Florida, Alabama, Georgia, Mississippi, 

Tennessee, North Carolina, and Virginia (Port of Panama City, no date). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($109,012,420) and imports ($115,314,630) at the Port of Panama City equaled $224,324,050 

(Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 906,372 

(352,344 export; 506,365 import; 47,663 domestic) (Florida Ports Council, 2001). 

 The Port of Tampa (Hillsborough County) is the largest of Florida ports in terms of total 

annual tonnage, handling almost half of all seaward cargo passing through the state (Tampa Port 

Authority, no date). The main products shipped at this port include: phosphate rock, sulphur, 

fertilizer products, petroleum, coal, and general cargo. It is also one of Florida’s primary cruise 

ship ports. 

 Between January 2001 and September 2001, the total dollar value of all exports 

($971,335,729) and imports ($812,742,976) at the Port of Tampa equaled $1,784,078,705 

(Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 46,110,473 

(7,640,643 export; 7,863,880 import; 30,605,950 domestic) (Florida Ports Council, 2001). 

 Located in Pinellas County, the Port of St. Petersburg specializes in one-day recreational 

and diving cruises. Between January 2001 and September 2001, the total dollar value of all 

exports ($17,940,250) and imports ($48,211,640) at the Port of St. Petersburg equaled 

$66,151,890 (Florida Ports Council, 2001). 

 Among Florida’s largest deepwater seaports, the Port of Manatee (Manatee County) is 

not only a full service cargo port, but is one of the state’s primary seasonal cruise ship ports. The 

Port of Manatee also ranks first among Florida’s west coast ports in container movements. 

Additionally, it is the Southeast’s leading forestry product import facility, and is Del Monte’s 

second largest U.S. port facility. Port Manatee sits on 1,098 acres of land with 6,984 dedicated 

feet of dock space. It has a channel depth of 40 feet, and a length of three miles. Additionally, 

this port provides 721,000 square feet of warehouse space, 172,000 square feet of chill space, 

and 30,000 square feet of frozen space. Port Manatee has a significant economic impact on its 

surrounding community. It employs 60 full-time workers, and supports an additional 22,484 

county jobs. In 2002, Port Manatee’s total economic impact on the county equaled two billion 

dollars (Port Manatee, 2003). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($31,942,904) and imports ($298,749,383) at Port Manatee equaled $330,692,287 (Florida Ports 

Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 5,200,230 (975,284 

export; 4,224,946 import) (Florida Ports Council, 2001). 

 Located in Florida’s northeastern Nassau County, Port Fernandina serves the 

Southeastern United States. It primarily handles breakbulk (forest products) and containerized 

cargo (Florida Ports Council, 2001). Between January 2001 and September 2001, the total dollar 

value of all exports ($166,235,197) and imports ($90,558,734) at Port Fernandina equaled 

$256,793,931 (Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted 

to 541,000 (423,695 export; 117,305 import) (Florida Ports Council, 2001). 

Also located along Florida’s north Atlantic coast, the Jacksonville Port Authority is a 

full-service international trade seaport, and employs 150 workers. Handling 7,301,016 tons of 

cargo in 2003, Jacksonville ranked third of Florida’s 14 deepwater ports in this year. Major 

import products include: gasoline and aviation fuel, coal and coke, gypsum, limestone chips, 

automobiles, granite, and steel wire rods, crude minerals, and wood pulp. Primary export 
311

products include: poultry, grocery products, automobiles, beer and ale, paper, dextrose and 

glucose, meat, vegetables, non alcoholic beverages, milk, eggs, dairy products, and auto parts 

(Jacksonville Port Authority, 2006). The CSX Railroad and Norfolk Southern serve this port. 

 Between January 2001 and September 2001, the total dollar value of all exports 

($1,492,360,728) and imports ($6,468,296,824) at Jacksonville Port Authority equaled 

$7,960,657,552 (Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year 

amounted to 18,041,000 (947,000 export; 6,953,000 import; 10,141,000 domestic) (Florida Ports 

Council, 2001). 

 Port Canaveral is located on the mid-Atlantic coast. It accommodates both cargo and 

cruise ships. This Foreign Trade Zone offers “quadramodal transportation” (sea, air, land, and 

space) and is the leading export port in terms of dollar value (Florida Ports Council, 2001). 

Primary cargos at Port Canaveral include: cement, petroleum, aggregate, fresh produce, 

perishables, frozen food, juice (both single-strength and concentrate), milled lumber, steel, 

newsprint, and special project cargo (Port Canaveral, 2004). This port has no rail service. 

 Between January 2001 and September 2001, the total dollar value of all exports 

($116,041,114) and imports ($301,843,120) at Port Canaveral equaled $417,884,234 (Florida 

Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 4,555,479 

(1,033,028 export; 3,489,451 import) (Florida Ports Council, 2001). 

 Located in St. Lucie County between Canaveral and Palm Beach, the Port of Fort Pierce 

primarily exports grapefruits, while it imports cement and aragonite (Florida Ports Council, 

2001). Between January 2001 and September 2001, the total dollar value of all exports 

($5,886,077) and imports ($15,999,153) at the Port Fort Pierce equaled $21,885,230 (Florida 

Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 81,700 (5,000 

export; 56,700 import; 20,000 domestic) (Florida Ports Council, 2001). 

 Eighty miles north of Miami in Palm Beach County, the Port of Palm Beach District 

serves primarily as a transshipment distribution center for cargo shipped through Florida’s larger 

ports to smaller foreign ports throughout the Caribbean and Central America (Florida Ports 

Council, 2001). A sub-division of the State of Florida, this Foreign Trade Zone (#135) is 

considered an independent special taxing district (an autonomous port). It has a draft of thirtytwo feet. Primary export products include: sugar, molasses, cement, utility fuels, water, produce, 

and breakbulk products. The Port of Palm Beach is regarded as the fourth busiest container port 

in Florida and the 18th busiest in the continental United States (Port of Palm Beach, no date). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($643,442,156) and imports ($613,138,623) at the Port of Palm Beach equaled $1,256,580,779 

(Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 3,222,792 

(1,173,598 export; 374,959 import; 1,774,235 domestic) (Florida Ports Council, 2001). 

 Encompassing 2,190 acres, the Port of Everglades spans three population centers in 

Broward County: Fort Lauderdale, Hollywood, and Dania. It ranks as one of the nation’s leading 

container and cruise ports. Indeed, with more than 30 cruise ships, this port is the second busiest 

cruise port in the world (Florida Ports Council, 2001). With a channel depth of 43 feet, Port 

Everglades also boasts the deepest harbor in the State of Florida. The Port of Everglades’ cargo 

includes petroleum, aggregate, cement, scrap metal, tallow, gypsum, steel/coils/rebar, lumber, 

particle board, and plywood (Broward County Florida, no date). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($3,364,349,369) and imports ($301,843,120) at Port Everglades equaled $7,837,211,538 
312

(Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year amounted to 23,743,820 

(6,200,000 export; 5,343,820 import; 12,200,000 domestic) (Florida Ports Council, 2001). 

 Located in Dade County, the Port of Miami-Dade is the world’s busiest cruise port. In 

fiscal year 2000, the Port of Miami-Dade economically impacted Dade County in excess of eight 

billion dollars and supplied approximately 45,000 jobs. Top import products at this port include: 

tiles, refrigerated fruits and vegetables, alcoholic and non-alcoholic beverages, apparel, lumber 

products, paper, iron, steel, and fabricated wood products. Primary export commodities include: 

textiles, trucks and buses, newsprint, towels, non-refrigerated food products, spare parts, iron, 

steel, plastic, rubber goods, electrical machinery and equipment, and office equipment and 

supplies (Port of Miami, 2004). 

 Between January 2001 and September 2001, the total dollar value of all exports 

($6,737,557,934) and imports ($6,397,065,624) at the Port of Miami-Dade equaled 

$13,134,623,558 (Florida Ports Council, 2001). Total tonnage for the 2000-01 fiscal year 

amounted to 8,247,004 (3,620,332 export; 4,626,672 import) (Florida Ports Council, 2001). 

 The Port Operations for the City of Key West is primarily a port-of-call for a growing 

number of cruise ships. Between January 2001 and September 2001, the total dollar value of all 

exports ($39,704,884) and imports ($1,096,334) at the Port of Key West equaled $40,801,218 

(Florida Ports Council, 2001). 

 The State of Florida also has a strong railway infrastructure. It is part of the Latin 

American Trade and Transportation Study (LATTS) Strategic Rail System. LATTS was formed 

in 1996 for purposes of “identifying trade opportunities with Latin America, evaluating 

infrastructure investments needed to support growth in international trade, and developing 

strategies to guide infrastructure investments” (Wilbur Smith Associates, 2002a). There are 

1,548 miles of track in the Florida portion of the Strategic Rail System. 

 Florida is served by two Class 1 railroads: CSX Transportation, which extends west to 

New Orleans and north to all the major eastern cities, and the Norfolk Southern. Additionally, 

the Florida East Coast runs between Jacksonville and Miami, while the Bay Line serves the Port 

of Panama. In 1996, these railroads transported a total of 2,454,103 tons within and through 

Florida. Commodities shipped include: chemicals, farm products, pulp and paper, nonmetallic 

minerals, waste and scrap (Wilber Smith Associates, 2002a). Amtrak is the state’s primary 

passenger rail service provider. 

Media and broadcasting operations in Florida provide a wide variety of venues for 

receiving news, information, weather, and entertainment. For example, 64 television stations 

broadcast out of Florida. The most active broadcast sites are located in Leon County (five); Lee 

County (five); Palm County (six); Hillsborough County (ten); Miami-Dade County (eleven); and 

Orange County (eleven) (Florida Smart, 2000a). There are also approximately 140 AM/FM 

radio stations broadcasting throughout Florida. These channels offer a wide range of musical 

and informational options in both English and Spanish (Florida Smart, 2000c. Additionally, 

numerous daily and weekly newspapers in both English and Spanish are distributed throughout 

Florida: 21 in the southeast region, nine in the southwest, four in the Florida Keys, eight in the 

central-east, eight in central Florida, 13 in the central-west, 14 in the northeast, and 15 in the 

northwest. Additionally, there are several on-line, specialty, and school newspapers in 

circulation (Florida Smart, 2000b). 

 Physical Infrastructure. There are 56 regulated electric utility companies supplying 

Florida’s electricity. These include: the Florida Public Utilities Company; Florida Power and 

Light; Tampa Electric Company; Florida Solar Energy Center; FPL Group; Florida Progress 
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Corporation; Synergy Network; Choctawhatchee Electric Cooperative, Incorporated (CELCO); 

Southern Company; Alabama Electric Cooperative; Central Florida Electric Cooperative, 

Incorporated; Clay Electric Cooperative, Incorporated; Escambia River Electric Cooperative, 

Incorporated; Florida Keys Electric Cooperative Association, Incorporated; Glades Electric 

Cooperative, Incorporated; Gulf Coast Electric Cooperative, Incorporated; Gulf Power 

Company; Jacksonville Beach Electric; JEA; Keys Energy Services; Kissimmee Utility 

Authority; Lee County Electric Cooperative, Incorporated; Moore Haven Municipal Light 

Department; Okefenoke Rural Electric Membership Corporation; Orlando Utilities Commission; 

Peace River Electric Cooperative, Incorporated; Progress Energy Florida, Incorporated; Reedy 

Creek Improvement District-Utilities Division; Seminole Electric Cooperative, Incorporated; 

Sumter Electric Cooperative, Incorporated; Suwannee Valley Electric Cooperative, Incorporated; 

Talquin Electric Cooperative, Incorporated; Tri-County Electric Cooperative, Incorporated; West 

Florida Electric Cooperative Association, Incorporated; and the Withlacoochee River Electric 

Cooperative, Incorporated. Additionally, 23 municipalities supply their own electricity (Florida 

Public Service Commission, 2002a). 

 Seven regulated gas utilities meet Florida’s natural gas needs: City Gas Company of 

Florida; Florida Division of Chesapeake Utilities Corporation; the Florida Public Utilities 

Company; Indiantown Gas Company; Peoples Gas System; Sebring Gas System, Incorporated; 

and the St. Joe Natural Gas Company (Florida Public Service Commission, 2002b). 

 There are 177 companies serving Florida’s water and sewer needs in the state of Florida. 

In addition to the individual municipalities, these suppliers include: Escambia County Utilities 

Authority; Regional Utilities; Bay County Water and Sewer Department; Water Management 

District of N/W Florida; Liberty County; Franklin County; Talquin Electric Cooperative, Inc.; 

City of Tallahassee Utilities; Wakulla County Sewer System; Suwannee River Water 

Management District; Gainesville Regional Utilities; Florida Public Utilities; JEA; Florida Water 

Services; Clay County Utility Authority; St. Johns County Utilities; North Beach Utilities; 

Sunshine Utilities; Marion County; Ocala Oaks Utilities, Inc., Southern States Utilities; 

Hernando County Utilities; Pasco County Utilities; Southwest Florida Water Management 

District; Tampa Bay Water District; Pinellas County Utilities; Bradenton Public Works; Palmetto 

Public Works; Manatee County Public Works; Sarasota County; Charlotte County Utilities; 

Englewood Water District; Gulf Utilities; Bonita Springs Utilities; Collier County Public Works 

Division; Port LaBelle Utilities; Okeechobee Utility Authority; County of Okeechobee; Ft. 

Pierce Utilities Authority; St. Lucie County Utilities; Hobe Sound Water Company; Hydratech 

Utilities; Miami-Dade Water & Sewer Authority; and Florida Keys Aqueduct Authority 

(Enterprise Florida, 2002). 

 Floridians have a wide variety of telecommunications companies at their disposal. As of 

2002, there were 1,668 telecommunications companies serving the state (Florida Public Service 

Commission, 2002c). 

Interaction of Biophysical and Built Environments. Florida is a relatively polluted 

state. In 2001, it ranked 13th of 56 U.S. states and territories in terms of total environmental 

releases (one being the most polluted). In this same year, Florida ranked in the 75th percentile for 

total environmental releases (118,403,222 pounds) and in the 65th percentile for cancer risk (air 

and water) (one being the cleanest). Additionally, Florida’s total cancer risk scores have 

increased 24 percent from 1988 to 2001 (Scorecard, 2003). 

 Of Florida’s total 2001 environmental releases (118,403,222), air releases accounted for 

83,411,201 pounds, while water and land releases totaled 1,590,342 and 9,604,573 pounds, 
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respectively. Additionally Florida’s 2001 off-site transfers totaled 37,861,061 pounds, while 

production related wastes equaled 407,417,985 pounds (Scorecard, 2003). 

 In 2001, Florida’s top 25 (of 100) releasing facilities, with their releases in pounds in 

benzene-equivalents, were: Solutia Inc., (24,079,894); Progress Energy Crystal River Energy 

Complex (11,562,052); Gulf Power Co. Plant (11,512,067); Tampa Electric Company Gannon 

Station (9,824,781); JEA St. John’s River Power Park/Northside Generating Station (7,787,772); 

Seminole Generating Station (4,525,886); International Paper (3,158,257); Jefferson Smurfit 

Corporation (2,581,609); Stone Container Corporation (2,075,194); Buckeye Florida L.P. 

(1,966,746); Gainesville Regional Utilities Deerhaven Generating Station (1,861,294); GeorgiaPacific Corporation Paper Mill (1,784,648); C.D. McIntosh Jr. Power Plant (1,779,465); Stanton 

Energy Complex (1,330,755); Rayonier Incorporated (1,305,978); FPL Manatee Power Plant 

(1,298,410); Cargill Fertilizer Incorporated Riverview (1,264,685); Cedar bay Generating 

Company (1,210,120); Gulf Power Company Plant Lansing Smith (1,096,121); Tampa Electric 

Company Big Bend Station (1,064,366); Farmland Hydro L.P. (993,445); Gold Kist Live Oak 

Processing Plant (968,146); IMC-Phosphates Company New Wales Plant (936,181); U.S. Sugar 

Corporation Bryant Mill (902,208); and Progress Energy Florida Anclote Power Plant (756,239) 

(Scorecard, 2003). 

 The top 14 (of 28) chemical releases most presenting a cancer risk to Florida in 2001, 

with pounds in benzene-equivalents, included: cadium compounds (13,000,000); arsenic (organic 

or inorganic) compounds (11,000,000); chromium compounds (800,000); lead compounds 

(640,000); nickel compounds (490,000); benzene (380,000); chromium (230,000); chloroform 

(190,000); dichloromethane (170,000); lead (80,000); acrylonitrile (65,000); tetrachloroethylene 

(65,000); chloromethane (22,000); and beryllium (15,000) (Scorecard, 2003). 

C. HISTORY 

Settlement. The Paleo-Indians, who came into the region approximately 10,000 B.C.E, 

were the first people to inhabit present-day Florida. These nomads crossed the Bering Strait and 

eventually occupied much of the modern day United States. In Florida, these inhabitants settled 

along the St. Johns River, the Atlantic coast, the Hillsborough River drainage, and interior 

northern Florida. By the late Archaic, several groups inhabited the coastal areas, developing new 

forms of fired clay pottery (Milanich, 1996). 

About 300 A.D., the Weeden Island culture thrived in present-day Sarasota County and 

stretched along the Gulf Coast to Alabama. In approximately 800 A.D., however, the Alachua 

culture migrating from Georgia began to replace the Weeden Island culture in northern Florida. 

The Potanos (descendants of the Alachua people), the Calusa, and the Timucan peoples followed 

the Alachua (Milanich, 1996). 

At the time of European exploration and colonization, fish was the primary source of 

food along the Gulf Coast. The non-agrarian Calusas, Ais, and Tequestas, who occupied 

southern Florida, subsisted entirely on fish, shellfish, and wild food gathering (Hudson, 1976). 

 Timucuans and Apalachees inhabited the northern areas of Florida. While the 

Huguenots attempts to convert the Timucuans failed, Menéndez de Avilés, sent from Catholic 

Spain to suppress the Protestant French in 1565, successfully recruited Timucuan allies and 

attacked the French (Hudson, 1976). 

The Seminole people also inhabited Florida during the colonial era. The Creek people 

moved into Florida in the 18th and 19th century after earlier Native Americans inhabitants were 

killed or assimilated. The Creeks began using the Apalachee region as a winter hunting ground 
315

in the 1740s, later establishing a number of permanent towns in north Florida. Gathering 

activities dominated their subsistence (Hudson, 1976). 

In 1957, the Seminole people organized the Seminole Tribe of Florida. By the latter part 

of the 20th century, these people were working on commercial vegetable farms or cattle ranches. 

While the Seminoles are still subsistence hunters, they supplement their income with touristtargeted handicrafts. In 1961, a faction of the Seminole people living along the Tamiami Trail 

organized themselves to form the Miccosukee Tribe. In 1967, there were 1,000 Seminole 

people, 150 Miccosukee people and 200 Trail Mikasuki people in Florida. Two federal 

reservations, Brighton Reservation and the Big Cypress Reservation are located in the south of 

Florida (Hudson, 1976). 

Spanish explorers such as Ponce de León, de Narváez, Cabeza de Vaca, de Soto, and 

Luna were the first Europeans to arrive to the region of present-day Florida. The years between 

1567 and 1705 constituted Florida’s “mission era,” resulting in the establishment of 32 missions 

serving over 200 settlements comprised largely of soldiers. These missions were built from St. 

Augustine north along the coast and west to the state’s inland region (Hann, 1996). 

During the 17th century, the arrival of French, English, and Dutch explorers went 

unchallenged until the English established the colony of Carolina. As a result, the 18th century 

saw a number of wars between the French, English, and Spanish. The English gained rule in 

1763 (Arnade, 1996). 

 Following this period, the urban centers of Mobile, Baton Rouge, Natchez, and Pensacola 

grew rapidly as a result of land grants offered by the English crown. Pensacola, the territory’s 

capital, grew from 3,660 in 1785 to 8,390 in 1795 (Coker and Parker, 1996). 

 In 1784, Spain officially regained rule over Florida. Quarrels with the U.S. territories 

over land boundaries continued through the Creek War and the War of 1812. In 1819, however, 

Spain signed a treaty ceding East Florida to the U.S. (Coker and Parker, 1996). In 1845, Florida 

became the 27th state to join the Union. 

Industrialization. Antebellum Florida’s economy was largely based on agriculture. Its 

key products were cotton, corn, vegetables, and some sugarcane (Proctor, 1996). By the 1850s, 

cotton processing recorded at an all-time high, slave prices doubled, and lumber mills 

proliferated. The trans-peninsular Florida Railroad, between Ferdinanda and Cedar Keys, and 

the Florida, Atlantic and Gulf Central Railroad, between Jacksonville and Lake City, also began 

construction during this era. Benefiting from the newly established rail service, Jacksonville 

became a hub for the lumber industry, while Apalachicola served the cotton industry. At the 

same time, Pensacola and Key West served as military and shipping centers, and both Tampa 

and Fort Meade were centers for the cattle industry. Nevertheless, Florida remained a 

predominantly frontier state until well after the Civil War (Brown, 1996). 

At the outbreak of the Civil War, Florida was the smallest state (in terms of population) 

and one of the poorest to secede. Nearly half of its 140,000 inhabitants were either free blacks or 

slaves; most lived in rural settings. While many skirmishes took place in Florida, only one major 

battle was fought. In 1864, the Confederate army won the Battle of Olustee, despite many 

injuries and deaths. Nevertheless, fifteen days after Robert E. Lee’s surrender at Appomattox, 

Florida surrendered under Sam Jones, commander of the District of Florida (Brown, 1996). 

Following Reconstruction and upon gaining home rule in 1877, Governor George Drew 

and his Democratic cabinet promised to restore peace to Florida. Henry Morrison Flagler helped 

restore Florida’s railway infrastructure with the development of the Jacksonville, St. Augustine, 
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and Halifax River Railroad into the Florida East Coast System, which eventually extended to 

Miami and, later, to Key West (Proctor, 1996). 

The 20th century saw a dramatic rise in its urban population. In 1880, only 10 percent of 

Florida’s inhabitants were urban dwellers; by 1980, however, 90 percent of the state’s residents 

lived in cities. Miami’s, Tampa’s, and Jacksonville’s population increased the most, followed by 

Fort Pierce, Fort Myers, Bradenton, and Sarasota. In-migration, as opposed to a high birth-rate, 

largely accounts for this rapid population growth (Mohl and Mormino, 1996). 

Development of the state’s infrastructure boomed in the 1950s and 1960s. During this 

time, the Sunshine State Parkway and Florida’s interstate highway system were established 

(Mohl and Mormino, 1996). At the same time, however, the 1950s was also an era of 

“deindustrialization” and initiated the start of a postindustrial economy – “the high-tech, 

computerized information businesses and the more fully developed (and low-paying) service 

economy” (Mohl and Mormino, 1996: 439). This economy centered on governmental, health, 

educational, financial services, travel, entertainment, and retailing. Climate controlled homes 

prompted further development, particularly in the 1960s. In 1970, 60 percent of homes had 

climate control, a giant leap from 18 percent in 1960 (Mohl and Mormino, 1996). 

The same period also saw an increase in civil rights activism. The Ku Klux Klan 

maintained a strong presence in the Miami area following World War II, terrorizing citizens and 

killing the National Association for the Advancement of Colored People’s (NAACP) leader, 

Harry Moore, in a dynamite blast to his home in 1951. A bus boycott in Tallahassee in 1956 

highlighted the intrinsic segregation in the capital. In 1959, Miami lunch-counter sit-ins 

facilitated the desegregation of Miami’s public accommodations and schools and, by the 1960s, 

brought Florida’s African-American population in line with national freedom activities. Like 

many other areas across the nation, however, racial conflict continued in the decades that 

followed. In 1980, for example, Miami’s Liberty City Riot occurred as a result of police 

violence in a predominantly African-American neighborhood, and racial tensions between the 

Miami and Tampa area police and local residents were commonplace (Mohl and Mormino, 

1996). 

Following Castro’s rise to power in the 1960s, Cuban exiles initiated a trend of economic, 

political, and social change in south Florida, notably Miami. Regarded as well-educated and 

quick to assimilate, Cubans soon defined ethnic politics in the state. By 1990, 45 percent of 

Dade County’s population was foreign born; nearly half of that population was Hispanic, while 

53 percent spoke a language other than English at home. Beginning in the 1970s, Florida’s 

immigrant population included a growing number of Haitians and Nicaraguans. Political 

organization among these groups has remained strong and served to maintain cultural and ethnic 

identity (Mohl and Pozzetta, 1996). 

 A rapidly aging population also characterized Florida in the 1970s and 1980s as more 

deaths than births were recorded. Pinellas, Sarasota, Charlotte and Pasco Counties recorded the 

highest death rates (Mohl and Pozzetta, 1996). According to Mohl and Pozzetta, “the 

positioning of Florida as home to large numbers of elderly Americans stemmed from several 

political, social, and economic developments: improved medical care, a national Medicare 

program, Social Security, improved pension plans, and air-conditioning” (1996: 423). 

 Oil. Florida’s first oil well was drilled in Gadsden County. In 1892, the Owl 

Commercial Oil Company drilled two wildcat wells, reaching depths of 1,000 and 1,750 feet. 

Between 1901 and 1925, 27 more wildcat wells were drilled, the deepest of which (4,912 feet) 

was located in Washington County. None, however, produced oil. In addition to its barren 
317

wells, Florida suffered several infrastructure limitations, including long distances to major 

pipelines, refineries and oil markets, and few industrial centers. Consequently, major oil 

companies did not consider Florida a viable location for development (Hughes, 1993). The U.S. 

Geological Survey, in fact, defined Florida as lying outside the area of an oil-bearing formation. 

Nevertheless, drilling continued between 1926 and 1938. One 4,010 foot well at Cedar 

Key burned gas at the casing head for a few months. In 1928 oil scout Robert Steffey issued a 

report on a Polk County well at Kissengaen Springs drilled to 4,545 feet, and another well, 

drilled by the Ocala Oil Corporation, which set the state record in terms of depth at 6,180 feet 

(Hughes, 1993). Steffey also reported on the Gulf Refining Company, employing 12 

magnetometer men at De Funiak Springs east of Pensacola. Steffey’s reports subsequently 

invited renewed interest in Florida as a potential site for gas and oil development. In 1931, Ray 

Eastbrook drilled the Oil City Corporation No. 1 on 182,000 acres across the Choctawhatchee 

Bay. The state then leased 70,000 acres of the Choctawhatchee Bay to Islands, Inc., Miami, and 

1.3 million acres to Island Inc., covering all lands from high tide to a mean depth of 12 feet. 

These state leases specified that a well must be started within one year and drilled to a depth of 

more than 5,000 feet (Hughes, 1993). 

 In 1932, five wells were drilled in the state and initiated the first involved exploration of 

the Florida peninsula. Also in 1933, an extensive reflection seismographic survey conducted 

between Ocala and Monticello concluded with a “comprehensive drilling campaign” (Hughes, 

1993: 130). During this campaign, the newly established Oil Development Company of Florida 

and the Florida Oil League commenced drilling of the South Lake Well in Lake County in 1935. 

Drilled to a depth of over 6,000 feet, this well provided geologists with invaluable core samples. 

In the mid 1930s, the Humble Oil and Refining Company also asserted an interest in Florida 

activities (Hughes, 1993). 

In the 1940s, rising oil consumption by the U.S. Atlantic states, World War II industrial 

demands, and the loss of domestic tankers to German submarines around Floridian peninsulas 

spurred the completion of the “Big Inch” and “Little Inch” pipelines in southeastern and northern 

Florida. These pipelines helped clean up Florida’s perpetually oil flooded beaches (Hughes, 

1993). 

 Oil was at last discovered in October 1943. A year later, the State of Florida offered a 

$50,000 “finder’s fee” to whoever discovered the state’s first significantly producing well. 

Humble Oil and Refining Company’s discovery of a well that consistently produced 125 barrels 

of oil and roughly 450 barrels of water per day for many months entitled them to claim the 

reward. In 1945, the No. 4 Gulf Coast Realty well in Sunniland Field became the state’s second 

highest producing well. By the end of 1945, this field had produced 43,254 barrels of oil 

(Hughes, 1993). 

Although Florida’s deepest well (18,670 feet) was completed in 1975, the state’s oil 

production did not peak until 1978, when 47.5 million barrels of oil were produced (Independent 

Petroleum Association of America, 2004). In 1990, Florida was the 19th largest crude petroleum 

producer in the U.S., bringing in 6 million barrels. In 2000, however, Florida produced only 5 

million barrels of oil; its ranking subsequently fell to 20th in that year (U.S. Census Bureau, 

2002). 

The first lease sale of OCS territory in waters off of the Florida coast occurred in 1959. 

Since 1969, 10 lease sales, with 500 tracts, were held in the eastern Gulf of Mexico Area, but 

drilling was limited. In the 1980s, offshore oil and gas exploration began, with particular 

attention to the Jurassic Norphlet Formation off of the Panhandle, a formation that has proven 
318

profitable to neighboring Alabama. Between 1974 and 1994, 29 wells were drilled in the 

Pensacola and Destin Dome Blocks, but only six produced natural gas. In 1987, 1989, and 1995, 

Chevron drilled three exploration wells in this region. A year after the last well was drilled, 

Chevron, along with Murphy and Conoco, submitted a plan to develop 11 lease blocks for 

natural gas in the Destin Dome area. This plan was rejected by the State of Florida in 1998, the 

same year that a congressional act halted federal OCS leasing activity. Currently, there are no 

active leases off of Florida’s Atlantic coast, yet there are approximately 150 active leases in the 

eastern Gulf of Mexico in the Panhandle region. 

 Offshore oil exploration off Florida’s coast in the latter part of the 20th century fueled 

debates regarding the environmental and socioeconomic impact of such activity. In 1989, 

concerns over a lease sale in Florida prompted President George H.W. Bush to announce the 

establishment of a cabinet-level task force to study the environmental effects of this 

development. Subsequently, a hearing before the Subcommittee on Water, Power and Offshore 

Energy Resources of the House of Representatives explored the possibility of a permanent ban 

on oil and gas leases on certain portions of Florida’s OCS. 

 Currently, neither refineries nor rotary rigs operate in the state. There are, however, 73 

producing wells as of 2002. Major pipelines include the Genesis, Sunniland, the Everglades, and 

Enterprise Pipelines. Crude oil proved reserves totaled 75 million barrels in 2001, ranking 15th

in the nation. This figure accounts for less than one percent of total U.S. crude oil production. 

In contrast, the year 2000 oil rate per well was 175 barrels a day, while, in 1994, the oil rate per 

well was 188 barrels per day (USDOE, EIA, 2004a). 

D. DEMOGRAPHIC CHARACTERISTICS 

Population Growth. Throughout the 20th century, Florida has experienced rapid 

population growth. Immigration has been particularly high in this state, as has emigration from 

other U.S. states. The largest population increase occurred in the 1920s and 1950s as thousands 

of Georgians and Caribbean immigrants flooded the state (Mohl and Mormino, 1996). In 2000, 

the population of Florida was nearly 16 million, making it the fourth most populous state in the 

nation and reflecting a growth rate of nearly 24 percent since 1990 (Table 1) (U.S. Census 

Bureau, 2000b). 
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Table 1 

 Population Changes, Florida State: 1920 to 2000 

Year Population Change from Previous 

Census 

Percent Change from 

Previous Census 

2000 15,982,378 3,044,307 23.5 

1990 12,938,071 3,190,965 32.7 

1980 9,746,961 2,955,543 43.5 

1970 6,791,418 1,839,858 37.1 

1960 4,951,560 2,180,255 78.7 

1950 2,771,305 873,891 46.1 

1940 1,897,414 429,203 29.2 

1930 1,468,211 499,741 51.6 

1920 968,470 215,851 28.7 

Source: U.S. Census Bureau, 2000b. 

Ethnicity and Age. In 1920, African-Americans comprised 34 percent of Florida’s 

population. This figure steadily declined to 29 percent in 1930; 27 percent in 1940; 21 percent in 

1950; and 18 percent in 1960 as the Caucasian population increased. While Hispanics have 

always figured prominently in Florida’s population count, the proportion of Hispanics to nonHispanics increased significantly after the Cuban refugee exodus in the 1970s and 1980s (U.S. 

Census Bureau, 2000b). More recently, the state accommodated an influx of Nicaraguan 

refugees, Mexicans, and Puerto Ricans (Mohl and Mormino, 1996). The Census records the 

2000 population as 78 percent White, 15 percent African-American or Black, 17 percent 

Hispanic, 2 percent Asian, 0.3 percent American Indian, and 5 percent “other” (Table 2). 

Table 2 

 Racial and Ethnic Populations, Florida State: 2000 

Race/Ethnicity Population Percent 

 White 12,465,029 78.0 

 African American 2,335,505 14.6 

 Hispanic* 2,682,715 16.8 

 American Indian 53,541 0.3 

 Asian 266,256 1.7 

 Pacific Islander 8,625 0.0 

 Other Race 477,107 3.0 

 Two or More Races 376,315 2.3 

 * Hispanics may be of any race 

 Source: U.S. Census Bureau, 2000b. 
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 In 2000, 23 percent of Florida’s residents were less than 18 years old, while 18 percent 

were 65 years of age and older. The median resident age was 38.7 years old, which falls above 

the national median age of 35.3 (U.S. Census Bureau, 2000b). 

E. ECONOMY 

Income and Poverty. In some respects, Florida is less well off economically than other 

southern states; in others, however, Florida is either comparable to, or better off than, the nation 

as a whole (Table 3). For example, the 1999 median family income in Florida was $45,625; or 

91 percent of the national median ($50,046), but Florida’s poverty rates for both individuals 

(13%) and families (9%) are comparable to national rates. Still, single women with minor 

children are the least advantaged population at both the state and national level. In Florida, 

single females with minor children headed only 10 percent of all Florida families but accounted 

for 33 percent of all families living in poverty. In comparison, single females with minor 

children headed 12 percent of all families at the national level, while they represented 44 percent 

of all families living below the poverty threshold. Florida households also relied slightly less on 

public assistance (2.8%) in 1999 than did the nation as a whole (3.4%) (U.S. Census Bureau, 

2000b). 

 Table 3 

Income, Poverty and Family Structure, Florida State: 1970-2000 

Year Median 

Family 

Income 

Change from 

Previous 

Census 

Ratio to 

National 

Median 

Persons 

in Poverty 

Households 

Receiving Public 

Assistance* 

Female-Headed 

Families 

with Children 

 2000 $45,625 $13,413 0.91 12.5% 2.8% 10.4% 

 1990 $32,212 $3,256 0.91 12.7% 5.8% 9.7% 

1980 $28,956 $2,957 -- 13.4% -- -- 

1970 $25,999 $7,470 -- 16.4% -- -- 

*Prior to the Census 2000, the Decennial Census enumerated “persons” receiving public 

 assistance rather than “households”. 

 Source: U.S. Census Bureau, 2000b). 

Employment. Historically, agriculture, fishing, and forestry comprised Florida’s 

economic backbone. Its rich forests, its wealth of salt and fresh water bodies, and its agricultural 

base of cotton and livestock all provided ample employment opportunities. Demographic 

changes throughout the 20th century, however, led to the decline of employment in these sectors. 

By 1940, the agricultural sector employed only 116,799 individuals, compared to the wholesale 

and retail trade sector with 139,166 employees, and the services sector with 130,703 employees. 

Retail and wholesale trade, in fact, maintained a stronghold on the state’s economy throughout 

the 20th century. By 2000, well over 1 million people were employed in trade, representing 18 

percent of the labor force. Nevertheless, this figure represents a decline from 1990, when 

employment in this sector peaked at 1.4 million employees, or 24 percent of the labor force. As 

of the year 2000, Florida’s services sector employed 44 percent of the labor force, while mining 

employed less than 1 percent (Table 4) (U.S. Census Bureau, 2000b). 
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Table 4 

 Employment in Major Industrial Sectors, Florida State: 1990-2000 

Year Agric., 

Fishing 

& 

Forestry 

Mining Constr. Manuf. Trans., 

Comm. 

& 

Public 

Util. 

Wholesale

& Retail 

Trade 

Finance, 

Insurance

& Real 

Estate 

Services Public 

Admin.

Workers in Sector 

1990 167,418 11,095 450,503 608,821 444,762 1,405,861 468,324 1,962,616 291,067

2000 72,578 65,576 562,111 507,870 374,179 1,221,809 563,552 11,096,366 360,910

Percent of Workers in Sector 

1990 2.9% 0.2% 7.7% 10.5% 7.6% 24.2% 8.1% 33.8% 5.0% 

2000 1.0% 0.9% 8.0% 7.3% 5.3% 17.5% 8.1% 44.3% 5.2% 

Growth from Previous Census 

2000 -130.7% 491.0% 24.8% -19.9% -18.9% -15.1% 20.3% 465.4% 24.0% 

Source: U.S. Census Bureau, 2000b. 

The 20 largest employers in the State of Florida in 2004, with their corresponding 

location and number of employees, were: Hulett Environmental (Orlando/25,407), University of 

Florida (Gainesville/18,000), Pensacola NAS (Pensacola/15,000), Florida Hospital 

(Orlando/14,000), Convergys Corp. (Jacksonville/10,000), Shands Hospital (Gainesville/7,000), 

Arnold Palmer Hospital-Children (Orlando/7,000), Lee Memorial Health System (Ft. 

Myers/6,000), Florida Hospital (Orlando/6,000), Jackson Memorial Hospital (Miami/5,674), 

Revenue Dept. (Tallahassee/5,500), Dade County Police-Recruitment (Doral/5,300), Metro Dade 

County Police Dept. (Doral/5,300), St. Joseph Hospital (Tampa/5,200), Mease Hospitals 

(Dunedin/5,000), Baptist Hospital of Miami (Miami/5,000), NCH Health Care System 

(Naples/5,000), Miami Studio Rentals (North Miami/5,000), and Baptist Health Care 

(Pensacola/5,000) (InfoUSA, 2004). 

There were 33 companies listed among the Fortune 1,000 in 2005. The top five are: 

Tech Data, Auto Nation, Publix Super Markets, Office Depot, and the Winn-Dixie stores 

(Fortune 500, 2005). 

Industry. Manufacturing remains important to Florida’s economy. Of durable goods 

($10.8 billion in earnings), non-motor vehicle transportation equipment was the most important 

industry in 1990, bringing in $2.4 billion. Electronics and electrical equipment brought in $2.2 

billion. Of nondurable goods ($6.4 billion in earnings), printing and publishing was the key 

industry, bringing in nearly $2 billion in workers’ earnings in 1990. By 1999, electronics and 

electrical equipment replaced non-motor vehicle transportation as the leading durable goods 

manufacturing industry in terms of workers’ earnings. In this year, electronics brought in nearly 

$3.5 billion of the $14.2 billion in workers’ earning in the durable goods sub-sector, while 

“other” transportation equipment brought in $2.4 billion. Of the non-durable goods sub-sector, 

printing and publishing brought in $2.8 billion in workers’ earnings in 1999 (Table 5) (U.S. 

Department of Commerce, Bureau of Economic Analysis, 2000). 

 
322

Table 5 

 Earnings in Major Industry Sectors and Selected Sub-sectors, Florida State: 1990-1999 

 

Industry Earnings (Constant 2000 

$1000’s) 

Share of

Earnings

Change Share of 

Change 

 1990 1999 1999 1990-1999 1990-1999

Earnings $162,440,858 $280,483,977 100.0% $118,043,119 100.0% 

Farm Earnings $2,079,204 $2,928,117 1.0% $848,913 0.7% 

Ag. Services, Forestry, and 

Fishing 

 $1,675,986 $2,794,741 1.0% $1,118,755 0.9% 

 Fishing $118,336 $90,630 0.0% -$27,706 -0.02%

Mining 

 $389,191 $429,259 0.2% $40,068 

0.03% 

 Oil and gas extraction $68,829 $60,689 0.0% -$8,140 0.0%

Construction $10,981,246 $16,644,953 5.9% $5,663,707 4.8%

 Special trade contractors $6,873,324 $10,695,772 3.8% $3,822,448 3.2%

Manufacturing $17,140,850 $22,517,927 8.0% $5,377,077 4.5%

 Fabricated metal prods. $1,003,217 $1,349,550 0.5% $346,333 0.3%

 Indust. machine & equip. $1,631,975 $1,773,876 0.6% $141,901 0.1%

 Food and kindred $1,457,247 $1,798,951 0.6% $341,704 0.3%

 Chemicals and allied $1,052,166 $1,394,755 0.5% $342,589 0.3%

 Petroleum and coal $72,528 $106,371 0.0% $33,843 0.0%

Transportation and Public 

Utilities 

 $10,346,319 $17,929,606 6.4% $7,583,287 6.4%

 Trucking & warehousing $1,903,539 $3,294,117 1.2% $1,390,578 1.2%

 Water transportation $524,410 $943,598 0.3% $419,188 0.0%

 Transportation by air $1,866,907 $3,328,625 1.2% $1,461,718 1.2%

Wholesale Trade $10,360,217 $18,450,819 6.6% $8,090,602 7.0%

Retail Trade $19,191,128 $30,616,733 10.9% $11,425,605 10.0%

 Eating & drinking places $4,712,842 $7,648,530 2.7% $2,935,688 2.5%

Finance, Insurance, and Real 

Estate 

 $11,506,720 $29,080,317 10.4% $17,573,597 15.0%

Services $47,416,370 $93,107,232 33.2% $45,690,862 39.0%

 Business services $7,729,185 $24,100,577 8.6% $16,371,392 13.8%

 Health services $16,061,610 $25,616,642 9.1% $9,555,032 8.0%

 Legal services $3,996,834 $6,203,501 2.2% $2,206,667 2.0%

 Engineering and 

 management services 

 $5,363,570 $11,096,928 4.0% $5,733,358 4.9%

Government $31,343,627 $45,984,273 16.4% $14,640,646 12.4%

 Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2000. 
323

 The government sector also contributes greatly to the state’s economy. In 1999, state and 

local government offices contributed over $33.7 billion of the $46 billion in government and 

government enterprises. Local government positions brought in $25.6 billion. By contrast, 

military earnings were less than $4.5 billion (U.S. Department of Commerce, Bureau of 

Economic Analysis, 2000). 

In June 1999, Florida had 4,509 banking and savings institutions, with deposits totaling 

$200 billion. Expenditures in federal funds and grants in this same year totaled $87.2 billion 

(U.S. Census Bureau, 2002). 

 Marine-based Activities. Florida has a wealth of marine-based activities feeding its 

tourism and retirement industries. As a result, the state’s economy is heavily reliant upon such 

activities. 

 Florida is among the top 12 states in terms of seafood production. In 2003, 

approximately 99 million pounds of seafood with a dockside value of over $172 million dollars 

were harvested. Tropical fish were the top commodity, accounting for $47 million in sales in 

this same year (Florida Department of Agriculture and Consumer Services, 2004). Other targeted 

species include shrimp, stone crab, spiny lobster, oysters, scallops, shark, mackerel, snapper, 

grouper, mullet and farm-raised catfish. 

Florida has a recent history of involvement in the Rigs-to-Reef program. The recycling 

of retired oil platforms from Louisiana and Texas and their transformation into artificial reefs has 

proven advantageous to fishery management. The first conversion of an oil structure took place 

in 1979, when Exxon relocated a decommissioned sub-sea template from offshore Louisiana to 

offshore Franklin County, Florida. In 1982, Tenneco deployed a platform jacket and deck 

offshore in Escambia County; in 1985 it deployed five platform jackets in two reefs offshore in 

Dade County. Most recently Chevron deployed two platform jackets offshore in Escambia 

County. These five reefs structures are only a handful of the 1,650 total public reef sites in the 

state, but they enhance fishery resources in the marine environment (U.S. Department of the 

Interior, Minerals Management Services, 2003). 

Military Installations. There are presently 21 active military installations in the State of 

Florida. These installations include seven Air Force bases, two Army bases, 11 Navy facilities, 

and one Coast Guard facility. 

Located in Okaloosa County in northwestern Florida, Eglin Air Force Base (AFB) was 

established in the 1930s as a bombing and gunnery base. During World War II, Eglin Field 

served as an important armaments testing facility for the Army Air Force (Global Security, 

2002b). This base now occupies 724 square miles of land (50% of Okaloosa County), and is the 

largest AFB in the western democracies. Additionally, the base’s dominion includes 101,000 

square miles of air space that extends over the eastern third of the Gulf of Mexico, while its Gulf 

Test Range (98,000 square miles) spans much of the Gulf. Eglin AFB also owns land in 

neighboring Santa Rosa and Walton counties in Northwest Florida (Eglin Air Force Base, 2000). 

Eglin AFB employs approximately 10,000 military and 10,000 civilian personnel, and 

contributes a payroll of $635 million per year (Global Security, 2002b). 

Eglin AFB is also home to the 39th Bomb Wing, the 4135th Strategic Wing, and the Air 

Armament Center. The Air Armament Center has the primary responsibility of developing, 

testing, and acquiring all air force non-nuclear weapons systems. Additionally, Elgin maintains 

an army training area in Fort Walton Beach (Eglin Air Force Base, 2000). 

Formerly an auxiliary of Eglin, and also located in Okaloosa County, Hurlburt Field is 

now home to the Air Force Special Operations Command and the 16th Special Operations Wing. 
324

Hurlburt Field houses 8,200 military personnel and civilians, and contributes $394 million to the 

local economy (Global Security, 2002b). 

The Avon Park Air Force Base was transferred to the control of MacDill Air Force Base 

in 1962, and today is known as MacDill AFB Auxiliary Field. Used for official military business 

only, this airfield is located eight miles northeast of Avon Park in Tampa. MacDill has two 

runways, the longest of which is 8,000 feet. 

 The 125th Fighter Wing of the Florida Air National Guard is located at Jacksonville 

International Airport. This 325,000 square foot installation is used to train personnel to protect 

life and property in times of peace (state) and war (federal). On a daily basis, the 125th Fighter 

Wing (FW) is in charge of maintaining a NORAD Air Defense Alert site at the Homestead Air 

Force Base. In this capacity, the 125th FW provides armed F-15 aircraft “capable of intercepting, 

identifying, and, if necessary, destroying unknown aircraft which penetrate sovereign U.S. 

airspace” (Florida Air National Guard, 2003; Global Security, 2002e). 

 The Homestead Joint Air Reserve Base (JARB) is home to the 482nd Fighter Wing, Air 

Force Reserve. Its purpose is to maintain and operate the Homestead Air Reserve Base, located 

about 25 miles south of Miami in the southern end of the Florida peninsula. This combat-ready 

unit employs more than 1,500 military personnel, 950 part-time reservists, and 250 full-time 

reservists. Combat units from all over the world come to Homestead to train with its state-ofthe-art Air Combat Maneuvering Instrumentation (Global Security, 2002d). 

 Tyndall Air Force Base is located in the southeast portion of Bay County. This base 

covers 29,000 acres, and is home to the 325th Fighter Wing, Headquarters 1st Air Force, the 475th

Weapons Evaluation Group and various support groups. 

 Located on Florida’s east coast on a barrier island in Brevard County, the Cape Canaveral 

Air Station was renamed the “Cape Canaveral Air Force Station” in 2000. This 16,000 acre 

station is home to the 45th Space Wing Command, and employs approximately 1,000 military 

personnel and 7,500 civilian contractors. Its primary function is to launch rockets for the 

military, private companies and NASA’s space shuttle program (Florida Today Space Online, 

2002). 

 Patrick Air Force Base is located in Cocoa Beach. This 2,100-acre base is home to the 

920th Air Force Reserve Rescue Group, employing approximately 1,350 military personnel and 

1,000 civilian contractors (Florida Today Space Online, 2002). 

 Camp Blanding is the Florida Army National Guard’s primary training area. This 73,000 

square acre installation is located near Jacksonville on the shores of Kingsley Lake. 

 Escambia County’s Naval Technical Training Center (NATTC) Corry Field is located in 

Pensacola. Today, the primary mission of NATTC Corry Field is to provide technical and 

military training in cryptology, information operations, electronic warfare, instructor training, 

and information systems (Global Security, 2002j). 

 Naval Air Station, Jacksonville is the third largest naval installation in the United States. 

It houses a large population of active duty as well as retired military personnel and their families. 

Naval Air Station, Jacksonville also employs more than 23,000 active duty military and civilian 

personnel. It is estimated that this installation contributes $2 billion to the local community per 

year. This 3,896-acre Navy installation is located in St. John County along the St. John River. A 

multi-mission base, this station is home to the Patrol Wing Eleven, the southern component of 

the Atlantic Fleet P-3C force, and VP-30, the Fleet Replacement Squadron for that aircraft. The 

Sea Control Wing Atlantic and its five squadrons of S-3B aircraft, and the Helicopter 

Antisubmarine Wing Atlantic also make their home in Jacksonville. In 1999, 17,200 acres of the 
325

formerly active Cecil Field were transferred to Naval Air Station, Jacksonville. As directed by 

Congress in defense Base Realignment and Closure (BRAC) 1993 and BRAC 1995, Cecil Field 

ceased military operations in late 1999 (Global Security, 2002e). 

 The Naval Aviation Depot (NADEP), Jacksonville is also located on the Naval Air 

Station Jacksonville base. It is primarily an industrial facility that repairs or modifies aircraft, 

engines, and aeronautical components. This depot sits on 100 acres and employs over 2,500 

personnel (Global Security, 2002i). 

 The Navy Coastal Systems Station encompasses 648 acres of land along St. Andrew Bay 

in Panama City, Florida. The Coastal Systems Station trains personnel and conducts research on 

expeditionary maneuver warfare, coastal operations, diving and life support systems, mine 

warfare, naval special warfare and littoral science and technology. A United States Coast Guard 

Station is located within the Coastal Systems Station’s facilities. It employs approximately 

2,000 military and civilian personnel, and has an annual payroll of about $117 million (Global 

Security, 2002a). 

 The Naval Air Station, Key West is located in the southernmost portion of Florida on 

Boca Chica Key. The Gulf of Mexico and the Atlantic Ocean border this Key. Effective 2001, 

the Naval Air Station was redesignated as a “Naval Air Facility”. This airfield has three asphalt 

runways and is the Navy’s premier pilot training facility for transient tactical aviation squadrons. 

This Naval Air Station employs 1,650 active duty, and 35 reserve members. Additionally, 2,507 

family members and 1,312 civilians live on the Key (Global Security, 2002h). 

 Mayport Naval Station Jacksonville, Florida is home to approximately 28 ships, 

including Aegis guided-missile cruisers, destroyers, and guided-missile frigates. In addition to 

being a seaport, Mayport is also an air facility, employing over 14,000 active-duty military and 

1,400 civilian personnel. This 3,409-acre station is the third largest naval facility in the United 

States. Mayport is located in northeast Florida near the Port of Jacksonville on St. John’s River 

(Global Security, 2002g). 

 Naval Air Station Pensacola is located in Florida’s extreme northwest. Although 

primarily situated in Escambia County, operations extend into neighboring Santa Rosa County as 

well. This station is considered the “Cradle of Naval Aviation” as every Naval Aviator, Naval 

Flight Officer, and Enlisted Aircrewman receives his or her training here. Training Wing Six is 

its primary flying unit, which is co-directed by the Air Force. Additionally, this station is the 

primary practice location of the Blue Angels–the Navy’s Flight Demonstration Squadron. Naval 

Air Station Pensacola employs more than 9,600 military and 6,800 civilian personnel (Global 

Security, 2002j). 

 The Navy’s Saufley Field is located in Escambia County approximately 10 miles north of 

Naval Air Station Pensacola. This field is primarily used for practice landings and take-offs. It 

features two runways and over 34,425 square feet of hangar space. Saufley Field is also home to 

the Naval Education and Training Professional Development and Technology Center. Over 

1,000 military personnel make their home at this base (Global Security, 2002k). 

 While located in Milton, Naval Air Station Whiting Field primarily conducts its 

operations in nearby Pensacola. Established in 1943, it is regarded as the busiest Naval Air 

Station in the world. More than 1,200 aviators complete their essential flight training at Whiting 

Field each year. Whiting Field is home to Training Air Wing 5, Training Squadrons 2, 3, and 6, 

and Helicopter Training Squadrons 8 and 18 (Global Security, 2002l). 

 The NavAir Training Systems Division is located in Orlando, Florida. Their mission 

focuses on the research, development, testing, evaluation, acquisition and product support of 
326

training systems. NavAir also provides intra-service coordination and training support for the 

Army and Air Force (Naval Air Warfare Center, no date). 

The Coast Guard Air Station in Clearwater, Florida is the Coast Guard’s largest and 

busiest Air Station. It employs over 500 assigned personnel. The “war on drugs” is the Air 

Station’s primary mission. Indeed, this station is responsible for many drug seizures and arrests 

every year, and is part of a multi-national, multi-agency effort drug program that operates 

throughout the Bahamas and the Caribbean. Air Station personnel also fly an average of 400 

Search and Rescue missions each year. 

Recreation and Tourism. Numerous recreational opportunities and festive events attract 

millions of tourists to Florida each year. For instance, outdoors enthusiasts can enjoy golfing, 

hiking, biking, hang gliding, SCUBA diving, horseback riding, canoeing, kayaking, camping, 

fishing, biking, bird watching, river tubing, and wildlife viewing at Florida’s 157 state parks 

(Florida Department of Environmental Protection, 2004). Florida’s other general attractions 

include zoos and aquariums, historical homes and estates, art museums, historical museums, 

music venues, professional sports events, and botanical gardens (Finding Florida, 2003). 

 Florida also boasts more theme parks than any other state in the United States. Major 

theme parks include: Walt Disney World, Epcot, Disney’s Animal Kingdom, Disney-MGM 

Studios, Magic Kingdom, Busch Gardens, Sea World, Universal Studios, Splendid China, and 

The Holy Land Experience. Florida’s major amusement parks include Fun Spot Action Park 

(Orlando), Miracle Strip Park (Panama City), Old Town (Kissimmee) and Sam’s Fun City 

(Pensacola) (Finding Florida, 2003). 

 Water Parks are also popular tourist destinations in Florida. Among the most frequented 

are: Walt Disney World Water Parks (Orlando), Busch Water Parks (Tampa), Rapids Water Park 

(West Palm Beach), Shipwreck Island (Panama City), Water Mania (Kissimmee), Weeki 

Wachee Springs Waterpark (Spring Hill), Wet ‘N Wild (Orlando), and Wild Waters Water Park 

(Ocala) (Finding Florida, 2003). 

 Florida’s festivals and events are additionally huge tourist draws and include the 

Gasparilla Pirate Festival (Tampa/January); Fiesta Day (Tampa/February); the Florida State Fair 

(St. Petersburg/Tampa area/February); Hoggetowne Medieval Faire (Gainesville/February); 

Florida Renaissance Festival (Deerfield Beach/February); Florida Strawberry Festival (Plant 

City/February-March); Bike Week (Daytona Beach/March); the Chasco Fiesta (New Port 

Richey/March); Red Belly Day (Fanning Springs-Chiefland/May); Guavaween 

(Tampa/October); and the Florida Seafood Festival (Apalachicola/November) (Finding Florida, 

2003). 

Tourism and recreation are vital to Florida’s economy. In 2001, Florida’s tourism 

industry employed 870,100 persons and contributed $51 billion to the state’s economy. 

Restaurants and lunchrooms ($19,549,925,733) and hotels/apartment houses ($11,721,811,499) 

generated the most revenue of any single sales category in this year. The Orlando, Tampa, and 

Miami Metropolitan Statistical Areas (MSAs) typically generate 43 percent of Florida’s total 

tourism and recreation taxable sales in an average year, while Orange, Hillsborough, Monroe and 

Santa Rosa Counties usually contribute approximately one-third of Florida’s total bed tax 

collections (Visit Florida, 2001). Florida’s major tourist attractions include several theme parks, 

cruise ships, water parks, zoos and aquariums, beaches, fishing, hunting, and world-class golf 

accommodations. In fact, revenues from just Florida’s golf courses (and its ancillary support 

services) equaled $4.44 billion in 2000 (Haydu and Hodges, 2002). 
327

Florida’s economic dependence on tourism has shaped the state’s receptiveness to 

offshore oil drilling. Indeed, since oil exploration in Florida began in the early 1940s, Floridians 

have alternated between pro-oil and anti-drilling positions. For example, in the 1960s, Escambia 

County community leaders favored oil drilling along the region’s Outer Continental Shelf (OCS) 

as a lucrative source of income for the local economy. Support was particularly strong among 

Floridians who favored offshore drilling in response to the mid-1970s energy crisis. However, as 

Florida’s beach and water-related tourism experienced unprecedented growth—especially in 

Pensacola—public opinion shifted. Responding to the potential threat OCS presented to its 

“clean” image, regional leaders consistently opposed oil and gas production off Florida’s coast 

through administrative deferrals, congressional moratoria and citizen awareness groups. 

 In large part, the prevailing anti-offshore oil drilling position espoused by civic leaders in 

Florida’s coastal counties is driven by the state’s economic dependence on tourism. The state’s 

beaches, fisheries, and wildlife bring millions of visitors annually, supplying millions of jobs 

across the state and generating billions of dollars each year. The visible presence of offshore 

drilling platforms, opponents argue, would diminish the coastline’s aesthetic value and 

discourage tourists who come to coastal Florida to experience its pristine beaches and stunning 

ocean views. Additionally, opponents contend, offshore drilling would endanger the regions 

southern reef systems and rich estuarine systems, whose brackish waters feed mangrove forests 

and seagrass beds that, in turn, provide a habitat for many species. According to Florida State 

Representative Porter J. Goss, onshore support bases could alter “the character of the Florida 

coast” by polluting the environment and threatening tourism and real estate industries (U.S. 

Congress, 1999). Further, “a major blowout/oil spill” in Lee County would potentially incur a 

loss of $590 million in revenue and 12,300 jobs (U.S. Congress, 1999). 

Concerns about the effects of offshore oil drilling to Florida’s tourism-based economy 

also come from environmental groups, such as the Sierra Club. The Senior Regional 

Representative of the Sierra Club provided the following view in a testimony to the U.S. 

Commission on Ocean Policy: 

Any such damage to the Florida coast would also have disastrous consequences for an 

economy dependent upon tourism, fishing, and water recreation. A number of Panhandle 

beaches are ranked in the top 10 U.S. beaches, and many of visitors to these beaches are 

fleeing the spoiled beaches of Louisiana and Texas. Florida's tourism industry generates 

$91.4 million per day in Florida and the commercial fishing industry $5-6 billion a year. 

In comparison, less than 1 percent of drilling jobs will go to Floridians, and virtually no 

income will be generated for the state (2002). 

F. LOCAL GOVERNMENT 

 Governmental Structure. Florida’s governmental body consists of three branches: 

executive, legislative, and judicial. The Governor heads the executive branch and is the acting 

CEO of the state. This elected personage serves a four-year term and is assisted by three elected 

cabinet members–an Attorney General, a Chief Financial Officer, and a Commissioner of 

Agriculture. The law making branch–the legislative–consists of a Senate (40 members) and a 

House of Representatives (120 members). There are also 25 congressional districts in the state. 

The judicial branch, which interprets Florida’s laws as outlined in the State Constitution, 
328

includes the Supreme Court, the District Court of Appeals, the Circuit Court, and the County 

Court. Seven governor-appointed justices preside over the Supreme Court (My Florida, 2004). 

Revenues and Taxation. Florida imposes a state and use tax of 6 percent each. Retail 

sales tax is also 6 percent while corporate income tax is set at 5.5 percent. Additionally, Florida 

levies an intangible tax (per $1,000) of $1-$1.50. Florida does not assess personal income, 

inheritance, or gift taxes (State of Florida Department of Revenue, 2002). Other major taxes 

levied in Florida include: ad valorem tax, homestead and personal exemptions, cigarette tax, 

other tobacco tax, tangible property tax, documentary stamps, estate tax, alcohol tax, gasoline 

tax, tourist tax, and a water management district tax (My Florida, 2004). 

In the fiscal year 2000, total state ($22,684,557,720) and local ($1,552,913,405) taxes for 

the State of Florida amounted to $24,237,471,125. Sales and use tax accounted for 

$14,933,807,686 (62% of the total) (State of Florida Department of Revenue, 2002).

G. SOCIAL CONTEXT 

Education. There are 2,508 public K-12 schools in the State of Florida: 1,647 

elementary, 463 middle and junior high schools, and 398 senior high schools (Florida 

Department of Education, 2001). There are also 11 public and 28 private or independent 

universities. These include: Florida Agricultural and Mechanical University, Florida Atlantic 

University, Florida Gulf Coast University, Florida International University, Florida State 

University, New College of Florida, University of Central Florida, University of Florida, 

University of North Florida, University of South Florida, and University of West Florida. In 

total, there were 251,984 undergraduate and graduate students enrolled in Florida’s state 

university system at the start of the 2001 school year (Florida Department of Education, 2003). 

 On average, Florida’s public classrooms (K-12) have the highest enrollment in the nation. 

In the 1999-00 school year, Florida averaged 768 pupils per elementary school compared to the 

national average of 488. Also in this school year, Florida’s secondary schools averaged 1,396 

students per school–almost 50 percent higher than the national average of 706 (Florida 

Department of Education 2003). In the 2000-01 school year, a total of 2,431,521 students were 

enrolled in Florida’s K-12 public schools (53% Caucasian, 25% African-American, 19% 

Hispanic, 4% “other”). 

 In the 2000-01 school year, there were 150,551 public K-12 teachers with a classroom 

teacher to pupil ration of 1:18. Sixty-one percent of these teachers held Bachelor’s degrees, 

while 39 percent possessed degrees beyond the Bachelor’s level (Florida Department of 

Education, 1998). Regardless of degree, the average teacher salary in this year was $38,717 in 

this year (Florida Department of Education, 2001). In the 2003-03 school year, the average 

elementary and secondary school teacher salary was $40,281; the national average was $45,771. 

The State of Florida ranked 29th of 51 states (ranking includes the District of Columbia) in terms 

of teacher salaries for this year. Teachers in California earned, on average, the highest salary at 

$55,693 (U.S. Census Bureau, 2005). 

In the 2001-02, statewide dropout rates for grades 9-12 totaled 11,509, or 3 percent; this 

rate falls below the national drop out rate of 4.9 percent for this year (Bureau of Education 

Information and Accountability Services, 2003). In this same year, 59 percent of graduating 

high school seniors planned to enter college (Florida Department of Education, 2001). 

 In 1997, Florida’s high school seniors’ SAT scores averaged 998 points. This falls below 

the national average of 1,016. Florida’s average ACT scores for this year (20.7) also fall a bit 

short of the national average (21.0) (Florida Department of Education, 1998). 
329

Regarding adult educational attainment levels, the number of high school graduates 

residing in the State of Florida matches national rates. However, the number of residents 

possessing a four-year college degree or more is somewhat lower in Florida than in the nation as 

a whole (Table 6). 

Table 6 

 Educational Attainment of Adults (age 25+), Florida State: 1990-2000 

Year Educational Attainment of Adults Ratio to Nation 

0-8 

Years 

Some 

High 

School 

High 

School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

High 

School 

Diploma 

BA/BS 

or More 

1990 9.4% 16.1% 30.1% 19.4% 18.3% 1.00 0.90 

2000 6.7% 13.4% 28.7% 22.4% 22.3% 1.00 0.91 

 Source: U.S. Census Bureau, 2000b. 

Health and Welfare. As of 2001, Florida provides 202 hospitals with 3.2 beds for every 

1,000 persons. This exceeds the national rate of 2.9 hospital beds for every 1,000 persons. 

There are also 661 certified nursing facilities with a total of 75,331 beds, and an average 

occupancy rate of 84 percent. Average occupancy rate is 83 percent at the national level. 

Overall, the health care industry employs 8 percent (561,360) of Floridians; slightly more than 

the national rate of 7 percent (Kaiser Family Foundation, 2003). 

In 2001, there were 205,793 live births in Florida. Of those, 24,217 (12%) were born to 

teenage mothers between the ages of 15 and 19 (40% Caucasian, 36% African-American, 24% 

Hispanic). At the national level, teenage mothers accounted for 11 percent (445,944) of all live 

births (4,025,933) (43% Caucasian, 25% African-American, 29% Hispanic). Regardless of age, 

84 percent of mothers began prenatal care in their first trimester in Florida, as compared to 83 

percent of mothers at the national level (Kaiser Family Foundation, 2003).

In 2001, 8 percent (16,776) of infants were low-birth weight in Florida; this rate is nearly 

comparable to the national statistic for this indicator. Infant mortality (deaths per 1,000 live 

births) is somewhat higher in Florida (7.3) than in the nation (6.8) (Kaiser Family Foundation, 

2003). 

In Florida, in 2000, 2,237,600 people were enrolled in Medicaid. Total spending for the 

medically needy was $169.6 million, or $3,131 per enrollee. In 2001, 15.4 percent of all 

residents in the State of Florida (50% children, 20.4% adults), and 16.7 percent in the U.S. 

(49.7% children, 24.5% adults) were Medicaid recipients (Kaiser Family Foundation, 2003). 

Total federal and state Medicaid spending for 2001 was $9,997,762,890 (Kaiser Family 

Foundation, 2003). 

 In 2000, there were 3,646,340 children in Florida. Of this population, 2.6 percent were 

victims of child abuse, 0.9 percent was in foster care, and 0.1 percent of juveniles were in 

residential placement (Childwelfare.com, no date). 

Religion. In 2000, 41 percent of Florida residents claimed a religious affiliation: 

Evangelical Protestant (14%), Mainline Protestant (6%), Catholic (16%), and 5 percent “other”. 

Fifty-nine percent of residents did not claim a religious affiliation in that year (American 

Religion Data Archive, 2002). 
330

H. ISSUES OF CONCERN 

 Civic officials in the State of Florida are concerned with the impact of pollution and 

offshore oil activity on the environment, overcrowding in its K-12 educational system, and 

illegal immigration. 

 The environmental safety of offshore oil activity is a source of concern and contested 

debate. In particular, the pending “Destin Dome” dispute and the existing “Lease Sale 181” are 

hot topics. At present, a federal moratorium prohibits drilling off of the Florida coast. Thus, 

even existing leases are not eligible for activation. Consequently, Chevron’s plan to drill 21 

offshore natural gas wells in the Destin Dome, located 25 miles south of Pensacola in the Gulf of 

Mexico, raises serious concerns. The state asserts that offshore drilling violates coastal 

management responsibilities. Chevron disputes this contention. It is likely that disputes over 

future leases in Florida’s Gulf Coast will continue. 

 Likewise, controversy continues regarding “Lease Sale 181”. This lease area covers six 

million acres in the Eastern Gulf of Mexico off the Florida and Alabama coasts. Despite the fact 

that the lease lies in federal waters 100 miles off the coast, oil spills still threaten Florida’s famed 

white sand beaches and disturb marine life. Arguably, such impacts drastically affect the tourism 

industry along the coast. 

 The tremendous population growth in the state, particularly in the urban centers along the 

coast, is also a source of state concern. Over-development of the coastal regions has destroyed 

much of the tropical habitat, thus leaving the region more vulnerable to hurricane damage. 

Additionally, development near the Everglades increasingly threatens the underground aquifer 

that provides water for a large portion of the state’s population (Mohl and Mormino, 1996). 

 The number of foreign-born students entering Florida’s K-12 educational system has 

steadily increased since 1980. In 1993, education costs for both legal and illegal immigrants 

approached $517.6 million; education costs for illegal immigrants totaled $180.4 million. In this 

same year, the State of Florida spent $254 million dollars on English for Speakers of Other 

Languages (ESOL) program. In 1995, 4,418 Cuban students, 1,606 Nicaraguan students, 1,405 

Haitian students, 2,980 Columbian students, and 1,058 Venezuelan students entered Florida’s 

public school system, further contributing to K-12 overcrowding. Civic leaders assert that, in 

addition to the education system, Florida’s rapidly rising population of both legal and illegal 

immigrants is over-taxing state health and welfare services (Federation for American 

Immigration Reform, 2002). 

I. FLORIDA: LABOR MARKET AREA PROFILES 

1. Introduction 

 The Florida Gulf of Mexico Region extends from Escambia County in the Northwest 

Panhandle to Key West in Monroe County. This area covers over 800 miles of coastline. 

Currently, almost 10 million people live in the labor market areas of this region. The region is 

both ethnically and racially diverse, with 14 percent of the population African-American and 21 

percent Hispanic in 2000. It is also a haven for retirees, with some counties along the coast 

exceeding 30 percent of the retirement-aged population. This report profiles 10 Labor Market 

Areas along the Florida Gulf of Mexico in order to explore and ultimately better understand the 

spatial diversity of industry, employment, demographic, and local public institutions in the 
331

region. The Florida Gulf LMAs are: Pensacola (LMA 109), Panama City (LMA 100), 

Tallahassee (LMA 099), Taylor County Area (LMA 077), Dixie County Area and Gainesville 

(LMA 079), Citrus-Marion (LMA 078), Tampa Bay-St. Petersburg (LMA 067), Sarasota (LMA 

069), Ft. Myers (LMA 072), and Miami Dade (LMA 070) (Figure 1). 

 Figure 1. Florida Labor Market Areas. 

Overview of Structural Processes. Since 1970, the United States’ economy has 

experienced several recessions: in the wake of the oil embargo and the energy crisis (1973-

1976); following the high interest rates resulting from rapid inflation growth during the late 

1970s; and between 1989 and 1992 (Heilbroner and Milberg, 1999; Mencken and Singelmann, 

1998). According to ecological theory, recessions represent a contraction in resources for, or 

inputs into, local economies. As a result, local social systems and economies may contract (see 

Hawley, 1986; Kasarda and Irwin, 1991; Mencken and Singelmann, 1998; Singelmann, et al., 

1993). 

However, recessions do not affect all economies uniformly. Local economies can be 

characterized along a continuum from less to more diverse industry structures (see Frisbie and 

Poston, 1976, 1978; Hawley, 1986; Mencken, 1997; Murdock et al., 1993; Nord and Luloff, 

1993; Poston, 1984). Generalist communities (those with a variety of industries) and specialist 

communities (those with one or two main industries, such as tourism) both present advantages 

and disadvantages for growth and social organization (Poston, 1984). 
332

Generalist communities are larger in size and more complex in structure. Fluctuations in 

one industry do not reverberate throughout the entire system so long as the other industries upon 

which the community depends for employment are independent of these shocks and remain 

relatively stable. As a result, generalist systems tend to be more stable over time. This 

longitudinal stability is important for local public institutions, such as schools and financing of 

local government services, because it allows administrators to plan for incremental changes in 

the supply of revenues and the demand for resources. Generalist systems also experience more 

stable population growth and change patterns (Frisbie and Poston, 1976, 1978; Micklin and 

Choldin, 1984; Poston, 1984). 

 Specialist communities, on the other hand, are dependent upon one or two industries for 

subsistence, and communities that rely upon natural resource-based industries (e.g., coal, oil/gas, 

timber, fishing) fit this characterization best (Freudenburg and Gramling, 1992; Gramling and 

Freudenburg, 1990; Hawley, 1986; Rural Sociological Society Task Force, 1993). 

 The region is by no means monolithic in its concentration of industries. Among the 

Florida Gulf of Mexico LMAs there are two major state Carnegie Foundation Research I 

universities, a major military base (Naval Air Station Pensacola) with associated defense 

manufacturing facilities, a state capitol, and several agricultural areas connected to the citrus 

industry. Florida is also one of the most recreation-centered and tourist intensive states in the 

nation. Even the major urbanized areas in Florida (Tampa Bay-St. Petersburg, Miami, and 

Jacksonville) offer popular tourist attractions including: beach communities, theme parks, 

recreational fishing areas, historical sites, and state parks. 

Between 1940 and 1990, the Florida Gulf of Mexico LMAs added a total of 1.8 million 

new jobs, the majority of which (51%) were in the service sector. An additional 461,000 jobs 

were added in the wholesale/retail trade sectors (25%), while the manufacturing sector added 

164,000 jobs (8% growth). Other growth multiplier industries, such as construction and 

transportation/public utilities, grew at similar rates. These are jobs that are generally created by 

growth in other industries to build new houses, highways, and provide public services to more 

people. For the entire Florida Gulf of Mexico LMA region, agricultural employment actually 

experienced a net gain in employment between 1940 and 1990 (3,500 jobs). However, in other 

southern states, agricultural employment declined drastically during that same period. 

While these growth themes provide an overall snapshot of the Florida LMAs, there is 

also considerable spatial variation in industry growth rates within this region. For example, the 

greatest growth rates for many of the Florida Gulf of Mexico LMAs (e.g., Sarasota, Ft. Myers, 

and Pensacola) occurred during the 1950s when total employment growth rates exceeded 100 

percent. 

 The 1970s were also a period of rapid employment growth, particularly for the Sarasota, 

Ft. Myers, and Citrus-Marion LMAs. In these LMAs, however, manufacturing employment 

growth was as strong as or stronger than service growth during the 1970s. Furthermore, growth 

in this sector continued through the 1980s when those three LMAs added an additional 24,000 

manufacturing jobs, representing 15 percent of all manufacturing jobs added in the Florida Gulf 

of Mexico LMAs between 1940 and 1990. It is likely that several of those LMAs benefited from 

the “rustbelt to sunbelt” industrial transformation– the movement of manufacturing jobs from 

outdated plants in the Midwest and Northeast to the South and West–that occurred during the 

1970s. 

 Agriculture is another industry sector that shows considerable spatial variation in 

employment patterns. While many Florida Gulf of Mexico LMAs lost agricultural jobs between 
333

1940 and 1990 (e.g., the Taylor LMA lost 7,000 jobs, the Dixie-Gainesville LMA 4,000 jobs, 

and the Tallahassee LMA 13,000 jobs), several LMAs experienced significant growth in this 

sector. For example, the Tampa-St. Petersburg LMA added 13,000 jobs, the Sarasota LMA 

4,000 jobs, and the Ft. Myers LMA 8,000 jobs. 

Moreover, the growth and decline of agriculture happened at two different time points. 

With the exception of the Tallahassee LMA, the decline in agricultural employment happened 

prior to 1970 (Tallahassee LMA lost 29% of its agricultural jobs during the 1970s). However, 

agricultural growth for the Tampa-St. Petersburg LMA occurred after 1970; indeed, it more than 

doubled between 1970 and 1990. In that case, the recent agricultural growth was due primarily 

to increased production in Florida’s citrus industry. 

While the service sector accounted for half of all jobs added in the Florida Gulf of 

Mexico LMAs, there is some spatial variation in that sector’s dominance. In two LMAs 

(Tallahassee and Dixie-Gainesville), the service sector alone (excluding retail/wholesale trade) 

accounted for more than one-half of all jobs added between 1970 and 1990. In no other LMA 

did employment in this one sector ever exceed 50 percent. What the Tallahassee and DixieGainesville LMAs have in common are large state government institutions (i.e., the Capitol), and 

large state universities. At the other extreme, employment in the service sector (excluding 

retail/wholesale trade) never exceeds 40 percent in two other more rural and agriculture-based 

LMAs. These service data illustrate further the diversity of economic activities in the Florida 

Gulf of Mexico LMAs. 

During the 1990s, employment growth in the Florida Gulf of Mexico region increased by 

743,000 jobs, a growth rate of 30 percent. As a whole, the total employment growth rate for the 

Florida Gulf of Mexico Region was 1.8 times greater than the growth rate for the entire United 

States (17%) between 1990 and 2000. Furthermore, every LMA within the Florida Gulf of 

Mexico region experienced a total employment growth greater than the U.S. rate of 17 percent. 

Several themes emerge from this historical analysis. First, the region grew quite 

substantially between 1940 and 1990 (1.6 million jobs; 700% growth rate). However, that 

growth was not evenly distributed among the decades in question. Overall growth rates were 

highest in the 1950s and 1970s. Second, the region was much more service-oriented during the 

1950s and 1960s than the rest of the nation. In the 1950s and 1960s, nearly half of all jobs in the 

U.S. were in manufacturing. However, this is not the case throughout the entire Florida Gulf of 

Mexico region. In the 1970s and 1980s, three LMAs (Sarasota, Ft. Myers, and Citrus-Marion) 

had relatively high concentrations of manufacturing employment. Finally, although agriculture 

is a sector where less than 2 percent of all workers are typically employed at the national level, 

agricultural employment in several Florida LMAs has been at least twice the national rate. 

2. Recent Trends 

 In this phase of the analysis, we examined employment trends from 1990 to 2000 for the 

Florida Gulf of Mexico region. Total employment growth for this region increased by 743,000 

jobs or 30 percent during the 1990s. That rate of growth was 1.8 times greater than for the entire 

United States (17%) in that period. 

Within the individual LMAs, there was considerable variation in total employment 

growth rates. The Sarasota LMA had the highest growth rate (40%), followed by the Ft. Myers 

(36%) and Citrus-Marion (33%) LMAs. In terms of overall employment growth, the Tampa-St. 

Petersburg LMA led the way with 318,000 new jobs, followed by the Miami-Dade LMA with 
334

195,000 new jobs. Notable growth also occurred in the Sarasota (119,000 new jobs), and 

Pensacola (73,500 new jobs) LMAs. 

Services led all sectors in total employment growth. Service sector employment in all of 

the Florida GOM LMAs exceeded 40 percent in 2000––the national rate was 32 percent. In the 

Tampa-St. Petersburg and Sarasota LMAs, employment in the services surpassed 60 percent. In 

those two LMAs, almost 280,000 new service sector jobs were added between 1990 and 2000. 

By 2000, 49 percent of the total workforce (1.2 million workers) was employed in the service 

sector in the Florida LMAs. 

 Agriculture also has an interesting employment history in the Florida Gulf of Mexico 

region. Agricultural employment includes citrus, forestry and fishing. However, the citrus 

industry was the only agricultural sub-sector that experienced growth during the 1990s. Between 

1990 and 2000, Florida’s citrus production increased by 46 percent. In 2000, the citrus industry 

was a $3 billion dollar enterprise for the state. 

The following figures provide annual employment data by industry for each of the LMAs 

in the Florida Gulf of Mexico region for 1969 through 2000. The Tampa Bay-St. Petersburg 

LMA, however, displays data only for 1970 through 2000 (Figures 2-11). 

 Figure 2. Annual Employment, Tampa-St. Petersburg LMA: 1970-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

0

100,000

200,000

300,000

400,000

500,000

600,000

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt. 
335

 Figure 3. Annual Employment, Sarasota LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 Figure 4. Annual Employment, Miami-Dade LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,0001969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,0001969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services
336

 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,0001969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt Figure 5. Annual Employment, Ft. Myers LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,0001969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

 

Agric Mining Const Manuf TPU Whol Trade Ret Trade FIRE Services Govt

 Figure 6. Annual Employment, Taylor LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 
337

Figure 7. Annual Employment, Citrus-Marion LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 Figure 8. Annual Employment, Dixie-Gainesville LMA: 1969-2000 (U.S. Dept. 

 of Commerce, Bureau of Economic Analysis, 2000). 

 

0

10,000

20,000

30,000

40,000

50,000

60,0001969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric. Mining Const Manu. TPU Wh. Trade Ret. Trade FIRE Services Govt

0

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,0001969

1970197119721973197419a751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret Trade FIRE Services Govt
338

 Figure 9. Annual Employment, Tallahassee LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

0

5000

10000

15000

20000

25000

30000

35000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Agric. Mining Constr. TPU Whole. Tr.

Ret. Tr. FIRE Services Govt. Manuf.

 Figure 10. Annual Employment, Panama City LMA: 1969-2000 (U.S. Dept. 

 of Commerce, Bureau of Economic Analysis, 2000). 

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agri. Mining Const Manu. TPU Wh. Trade Ret. Trade FIRE Services Govt

.
339

 Figure 11. Annual Employment, Pensacola LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

As expected, there is considerable spatial variation in agricultural employment growth 

within Florida’s LMAs. In terms of percentage change, the Sarasota (93%) and Pensacola (86%) 

LMAs led the way in agricultural employment growth. In terms of total agricultural job growth, 

however, the Sarasota LMA led the way with 7,000 new jobs, followed by the Tampa-St. 

Petersburg LMA with 4,500 new jobs. The Sarasota LMA is part of the citrus growing region of 

Florida; indeed, the southern region of the state accounts for 69 percent of the citrus production 

in Florida (Hodges et al., 2001). 

The Taylor and Citrus-Marion LMAs also demonstrated significant growth. In the 

Taylor LMA region, agricultural employment increased by over 100 percent between 1980 and 

2000. By 2000, the Citrus-Marion LMA employed almost 4,000 agricultural workers. However, 

despite those positive growth trends in agricultural employment, neither LMA shows 

employment levels in this industry (slightly over 2% in each) that are substantially higher than 

the national average of 1.8 percent. Of course, these employment numbers may not accurately 

reflect seasonal and migrant labor, but the lack of stronger employment effects in the Florida 

Gulf of Mexico region stem from the industry’s spatial division of labor within the state. 

According to Hodges et al. (2001), the industry and its multipliers (processing/manufacturing, 

suppliers, and transportation jobs connected to the industry) represent almost 90,000 jobs in the 

state, and add another billion dollars in output value beyond the direct value of the citrus 

industry, itself. Production facilities (where oranges are converted to pulp, concentrate, 

packaged orange juice, etc.) are located primarily in the southeastern coast of Florida. 

Performance in the manufacturing industry also varied within the Florida LMAs during 

the 1990s. While manufacturing employment decreased by 2 percent at the national level, 

Florida LMAs experienced declines ranging from 1 percent (Tampa-St. Petersburg LMA) to 20 

0

 20,000

 40,000

 60,000

 80,000

100,000

120,000

1969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

 

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt
340

percent (Pensacola LMA). Combined, the Tallahassee, Panama City, and Pensacola LMAs lost a 

total of 7,200 manufacturing jobs (-4,000 in the Pensacola LMA alone) between 1990 and 2000. 

 Despite the general decline in manufacturing jobs during the 1990s, several other LMAs 

in the Florida GOM region actually gained manufacturing jobs. For example, the following 

LMAs all experienced high manufacturing employment growth rates during the 1990s: Sarasota 

(18% growth, 4,000 new jobs), Ft. Myers (22% growth, 2,000 new jobs) and Citrus-Marion 

(21% growth, 2,000 new jobs). Thus, on balance, the Florida GOM region deviated from the 

national trend of 2 percent employment loss for a net gain of about 3,000 manufacturing jobs 

during the 1990s. However, by the end of the 1990s, the rate of manufacturing employment 

within Florida LMAs (8%) fell below the national rate (12%). 

 While none of the Florida LMAs were manufacturing-intensive, several of the more 

urbanized LMAs had high levels of employment in manufacturing. For example, in 2000, the 

Sarasota LMA employed over 20,000 workers, and the Pensacola LMA employed more than 

15,000 workers. In the Sarasota LMA, manufacturing facilities for electrical appliances and 

transportation vehicle parts were at the forefront of production while more than 50 percent of all 

manufacturing facilities in Pensacola provided shipbuilding and repairing services.1

 Also, in that 

same year, the Tampa Bay-St. Petersburg LMA employed almost 90,000 manufacturing workers. 

 The Tampa Bay-St. Petersburg LMA currently includes a very diverse representation of 

manufacturing facilities, including 117 food processing/manufacturing establishments, 109 

chemical producing facilities, 76 wood products manufacturing facilities, 126 plastics 

manufacturers, 32 primary metal plants, 377 fabricated structural metal facilities, 208 machine 

manufacturing plants, 147 computer and machine manufacturing establishments, 108 

transportation equipment manufacturing establishments (including 38 shipbuilding/repairing 

establishments), and over 300 medical and laboratory equipment manufacturing plants.2

 Finally, we examined changes in government employment (local, state, federal) during 

the 1990s. Nationally, the government employment growth rate was 5 percent during the 1990s, 

employing 14 percent of all workers. This percentage was slightly higher (19%) within the 

Florida Gulf of Mexico LMAs. However, as with other indicators, there is considerable spatial 

variation in government employment among the LMAs. For example, the Pensacola (1%) and 

Sarasota (2%) LMAs both experienced government employment growth rates lower than the 

national rate of 5 percent. Moreover, the Panama City LMA experienced negative government 

employment growth (-10%). However, Ft. Myers (29%), and several of the more rural LMAs 

(Taylor, Citrus-Marion, Dixie-Gainesville) experienced growth rates in excess of 10 percent, or 

at least twice the national growth rate. 

Three LMAs show substantial concentrations of government employment. In 2000, the 

Pensacola, Dixie-Gainesville, and Tallahassee LMAs employed 23 percent, 29 percent, and 32 

percent, respectively, in federal, state, or local government organizations. In the Tallahassee 

LMA, government employment exceeds services employment. These findings are not 

surprising: there is a major naval air station in Pensacola (Naval Air Station Pensacola); a 

Carnegie Foundation Research I Extensive university (the University of Florida) in Gainesville; 

and Tallahassee is home to the state capitol, and two major universities (Florida State University 

and Florida A&M University). 

 

1 See www.cbred.uwf.edu. 2

 Data are from County Business Patterns, U.S. Bureau of the Census 

 (www.censtats.census.gov). 
341

 In sum, recent employment data for the Florida LMAs identifies some important trends. 

First, there are two large, diverse urbanized economies in the region: the Tampa Bay-St. 

Petersburg and Miami-Dade LMAs. Both of these LMAs have employment distribution patterns 

that show representation in non-service industries, such as manufacturing, construction, and 

transportation/public utilities. Three other LMAs show substantial concentration of government 

employment: the Pensacola, Dixie-Gainesville, and Tallahassee LMAs. Still another three 

LMAs show recent growth in agricultural employment: the Sarasota, Citrus-Marion, and Taylor 

LMAs. Those three LMAs are in a key citrus producing region of the state (Hodges et al., 2001). 

However, the agricultural employment concentrations in those LMAs did not reach a level in 

2000 that would qualify the southeastern area as a natural resource dependent region (Rural 

Sociological Society Task Force, 1993). 

3. Tourism and Retirement Age Population Concentration in the Florida Gulf of 

 Mexico LMAs 

We maintain that the tourism impact will be readily identifiable in the coastal counties 

along the Gulf of Mexico. Table 1 presents an employment breakdown by percentage in 

tourism-related categories for the Florida Gulf Coast counties. 

 The data show that two counties stand out as significant tourism centers: Walton, in the 

Panhandle Region, and Monroe County, home of the Florida Keys and Key West. In both 

counties, over 18 percent of the workforce in the year 2000 was employed in hotel 

accommodations. Okaloosa county, adjacent to Walton county and the home of Ft. Walton 

Beach, has the third highest concentration of tourist-related industries in Florida. These counties 

are dependent upon tourism for employment. 

 From a socio-ecological perspective, downturns in the tourist trade will have the most 

significant negative impacts in specialist economies. For example, specialist economies 

typically suffer during recessions when people do not have as much money to spend on vacations 

and travel. However, because this analysis is performed at the LMA level–which is a measure of 

local economies based on commute to work patterns–any downturns in tourist-related industries 

may not be reflected in the larger LMAs in which these counties are embedded (Killian and 

Tolbert, 1993). For instance, Okaloosa and Walton Counties are in the Pensacola LMA, while 

Monroe County is in the Miami-Dade LMA. Given that Miami is a major metropolitan area, 

discernible effects of economic recessions on the tourist industry may not be as readily 

detectable in this LMA. A third LMA in this region– the Panama City LMA comprising Bay, 

Franklin, and Gulf Counties–also has a large concentration of tourism-based employment. In 

this rural LMA, accommodation and food service employment is greater than in most other 

counties along the Florida Gulf coast. 

 The data on tourism in counties along the Florida Gulf of Mexico identifies the Panama 

City LMA as a tourist-based LMA (Table 1). While tourism also is an important component of 

the Miami-Dade LMA (a major metropolitan area), its diversified economy employs over 

850,000 workers. Additionally, the Pensacola LMA economy is government-based and thus is 

more sensitive to changes in federal policies. 
342

Table 1 

Total Employment in Tourism Related Industries, 

Florida Gulf Coast Counties: 2000 

County Total 

Employment 

Food/Service 

Employment 

Amusement 

Employment* 

Accommodation 

Employment 

Bay 54,230 13.0% 1.9% 4.9% 

Charlotte 30,868 9.7% 2.6% 1.6% 

Citrus 22,282 8.9% 3.4% 1.7% 

Collier 82,383 9.4% 4.1% 4.7% 

Dixie 1,341 4.4% 4.4% 4.4% 

Escambia 107,234 8.7% 0.9% 0.9% 

Franklin 1,910 9.8% 1.4% 6.9% 

Gulf 2,408 7.2% 2.8% 2.5% 

Hernando 23,665 11.4% 1.6% 0.7% 

Hillsborough 493,710 5.8% 1.5% 1.2% 

Jefferson 1,685 6.8% 1.1% 1.7% 

Lee 134,701 9.1% 1.8% 4.1% 

Levy 5,704 10.6% 1.2% 1.6% 

Manatee 106,663 5.4% 0.8% 0.7% 

Monroe 32,132 18.2% 4.1% 15.8% 

Okaloosa 55,450 13.7% 1.5% 2.1% 

Pasco 63,316 9.6% 1.5% 1.8% 

Pinellas 396,192 6.7% 1.2% 2.0% 

Santa Rosa 18,733 10.2% 1.6% 0.4% 

Sarasota 132,105 8.1% 20.1% 1.7% 

Taylor 4,836 6.5% 0.2% 1.3% 

Wakulla 2,362 9.4% 3.3% 1.7% 

Walton 9,208 19.0% 2.0% 19.0% 

 *Amusement includes all tourist activities such as scenic tours, visits to historical sites, 

 gambling, and recreation (U.S. Census Bureau, 2000a). 

Retirement Population. In 2000, 12 percent of the total national population was age 65 

and older. Three LMAs in the Florida Gulf of Mexico region had populations 65 and older that 

were at least twice the national rate: the Citrus-Marion, Sarasota, and Taylor LMAs. In addition, 

the Tampa Bay-St. Petersburg LMA had a population aged 65 and older at a rate 50 percent 

greater than the national figure, while three of the counties within that LMA (Hernando, Pasco, 

Pinellas) had a 65 and older population at least twice the national rate of 12 percent. These 

trends are not new; for those LMAs, the percentage of residents aged 65 and older has 

significantly exceeded the national rates since the 1960s. The other LMAs in the Florida GOM 

region show patterns more consistent with the national figures (Tables 2-11). 
343

Table 2 

Percent Population Over 65, Sarasota LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Charlotte 14.7 20.8 35.0 33.9 33.8 34.7 

DeSoto 10.3 14.7 15.6 16.1 19.2 19.4 

Manatee 13.6 21.9 30.3 27.0 28.0 24.9 

Sarasota 11.9 18.3 28.6 29.9 32.2 31.4 

LMA Total 12.6 19.7 29.2 28.8 30.5 29.2 

Source: U.S. Census Bureau, 2000b. 

 Table 3 

Percent Population Over 65, Dixie-Gainesville LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Alachua 6.0 6.3 6.3 7.0 7.4 9.5 

Bradford 7.0 8.4 8.5 10.4 12.0 12.9 

Dixie 7.0 7.9 8.7 12.1 17.5 17.0 

Gilchrist 7.0 10.1 11.2 10.8 13.9 13.5 

Levy 9.4 12.2 13.3 15.6 18.9 17.9 

Union 4.4 6.9 6.6 5.8 7.3 7.2 

LMA Total 7.1 9.8 10.4 12.0 15.6 15.0 

Source: U.S. Census Bureau, 2000b. 

Table 4 

 Percent Population Over 65, Ft. Myers LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Collier 4.9 8.2 14.0 19.0 15.7 24.4 

Lee 9.9 12.7 18.8 22.3 24.8 25.4 

LMA Total 8.8 11.7 17.5 21.3 21.9 25.0 

Source: U.S. Census Bureau, 2000b.

Table 5 

 Percent Population Over 65, Citrus-Marion LMA: 1950-2000

County 1950 1960 1970 1980 1990 2000 

Citrus 11.4 16.9 26.0 29.0 31.3 32.2 

Marion 8.9 10.5 13.1 17.0 22.1 24.5 

LMA Total 9.2 11.5 15.9 20.7 25.1 26.9 

Source: U.S. Census Bureau, 2000b. 
344

Table 6 

 Percent Population Over 65, Tallahassee LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Calhoun 6.9 9.0 10.9 15.4 14.3 13.8 

Gadsden 8.2 9.4 11.9 12.0 11.9 12.2 

Holmes 7.3 11.9 14.5 14.3 15.4 14.7 

Jackson 7.8 8.6 11.0 13.7 15.0 14.6 

Jefferson 10.7 10.7 12.0 13.2 14.8 14.5 

Leon 5.3 5.2 5.4 6.5 8.1 8.3 

Liberty 7.7 8.9 11.1 12.1 11.2 10.3 

Wakulla 7.6 9.1 10.8 11.0 11.2 10.1 

Washington 8.5 11.0 13.0 15.5 17.1 15.2 

LMA Total 7.3 7.9 8.9 9.9 10.7 10.5 

Source: U.S. Census Bureau, 2000b. 

Table 7 

Percent Population Over 65, Miami-Dade LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Broward 7.5 11.4 19.7 21.9 20.7 16.0 

Dade 7.6 10.0 13.6 15.6 9.8 13.3 

Monroe 4.9 5.5 8.5 13.9 15.7 14.5 

LMA Total 7.4 10.2 14.9 17.9 14.1 14.4 

Source: U.S. Census Bureau, 2000b. 

Table 8 

 Percent Population Over 65, Taylor LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Columbia 7.5 8.6 9.0 10.1 13.3 14.0 

Hamilton 7.8 10.2 12.0 13.2 11.3 10.9 

Lafayette 7.4 11.7 13.6 12.1 10.7 12.1 

Madison 8.1 9.5 12.1 14.2 14.1 14.5 

Suwannee 7.8 10.7 11.9 13.9 16.8 16.9 

Taylor 8.0 8.0 9.8 12.8 13.1 13.7 

LMA Total 7.8 9.4 10.7 12.3 13.9 14.3 

Source: U.S. Census Bureau, 2000b. 
345

Table 9 

 Percent Population Over 65, Panama City LMA: 1950-2000 

Area 1950 1960 1970 1980 1990 2000 

Bay County 4.5 5.1 7.1 9.4 12.0 13.3 

Franklin County 8.5 13.3 15.7 14.9 18.0 15.9 

Gulf County 4.6 5.1 8.2 10.9 15.2 16.3 

LMA Total 5.9 7.9 10.3 11.8 15.1 15.2 

 Source: U.S. Census Bureau, 2000b. 

Table 10 

 Percent Population Over 65, Pensacola LMA: 1950-2000 

Area 1950 1960 1970 1980 1990 2000 

Escambia County 5.1 5.2 6.4 8.8 12.0 13.3 

Okaloosa County 4.1 3.2 3.3 5.8 9.3 11.9 

Santa Rosa County 6.7 5.5 6.0 7.2 9.4 11.0 

Walton County 8.7 10.7 13.2 16.0 16.8 15.8 

LMA Total 5.0 5.0 6.0 8.0 11.0 13.0 

 Source: U.S. Census Bureau, 2000b. 

Table 11 

 Percent Population Over 65, Tampa Bay-St. Petersburg LMA: 1950-2000 

Area 1950 1960 1970 1980 1990 2000 

Hernando County 14.6 14.1 26.9 25.4 30.7 29.8 

Hillsborough County 12.7 9.8 14.3 12.3 12.2 11.6 

Pasco County 19.6 20.0 40.7 32.2 32.3 26.8 

Pinellas County 30.5 24.9 41.2 30.3 26.0 22.6 

LMA Total 20.0 17.0 29.0 23.0 22.0 19.0 

 Source: U.S. Census Bureau, 2000b. 

The following reports individually discuss the economic effects of industry, employment, 

and demographic changes–especially those related to the oil and gas industries– within each of 

the 10 LMAs under consideration here. First, we explore historical patterns in industry 

employment between 1940 and 1990. Second, we profile recent (1990s) industry and 

employment concentrations in all of the LMAs along the Florida Gulf of Mexico in order to 

determine what industry and employment patterns currently distinguish them. Finally, we 

examine spatial patterns in two socioeconomic and demographic characteristics that are 

relatively unique to Florida: tourism and the spatial concentration of retirement-aged population. 
346

4. Pensacola, Florida: Labor Market Area 

a. Introduction 

This analysis examines historical and current industry and socio-demographic patterns in 

the Pensacola LMA. The analysis is divided into several phases. Phase I provides a general 

overview of broad (single-digit) industry patterns in this LMA for decennial census years 1940 to 

1990 using Census data. Phase II shows employment patterns in broad (single-digit) industry 

categories for all years between 1969 and 2000 using REIS data from the Bureau of Economic 

Analysis. Phase III examines the impact of economic recessions on employment levels during 

the last 30 years. Phase IV is a socio-demographic analysis of the LMA. 

b. Setting 

 The Pensacola LMA is located in the western Florida Panhandle (Map 16). It is home to 

the Pensacola Naval Air Station, as well as to Ft. Walton Beach, a major tourist location. The 

LMA is comprised of the following counties: Escambia, Okaloosa, Santa Rosa, and Walton. 

Over 600,000 people resided in the Pensacola LMA in 2000; nearly half . With 294,000 people 

in 2000, Escambia is the LMA’s largest county. African-Americans are represented in the LMA 

proportional to the national representation (13.8% in 2000). In 2000, 80 percent of the 

population in the LMA was white, a percentage that has been consistent over time. In 2000, only 

3 percent of the LMA’s population was Hispanic, and this percentage is significantly lower than 

the national rate of 12 percent. However, the Hispanic population grew by almost 9,000 people 

during the 1990s. Between 1990 and 2000, the Pensacola LMA population grew by more than 

21 percent, vastly exceeding the national growth rate of 9 percent. 

c. Unit of Analysis 

Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993). 

 

Phase I: General Historical Industry Trends. The general historical industry trends for 

Pensacola LMA are discussed next. The data are analyzed both cross-sectionally and 

longitudinally in order to gain a full understanding of both the structure of changes in the LMA’s 

primary industries over time (Figure 1). 

Year 1940. In 1940, 21,687 people were employed in the Pensacola LMA. Employment 

was diversified among manufacturing (19%), agriculture (20%), construction (10%) and 

transportation/public utilities (9%) in the non-service sectors. Wholesale/retail trade, and 

services account for 39 percent of employment in the Pensacola LMA in this same year, while 

the mining sector employed only 20 workers (less than 1%). 
347

Map 16. Pensacola, Florida Labor Market Area.
348

 

Figure 1. Major Industry Employment, Pensacola LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

 Year 1950. In 1950, there were approximately 34,000 workers employed in the 

Pensacola LMA, reflecting a 55 percent growth rate from 1940. The combined share of total 

employment for services and wholesale/retail trade was 51 percent in 1950. Moreover, those 

industry sectors combined to create 8,000 new jobs between 1940 and 1950 in the Pensacola 

LMA. Manufacturing, construction, and transportation/public utilities all experienced growth 

rates in excess of 30 percent. Agriculture lost 500 jobs and retained a 12 percent share of the 

Pensacola LMA labor force in 1950. 

Year 1960. Between 1950 and 1960, total employment grew by 132 percent, with a total 

of 78,000 workers employed in 1960. In terms of the number of jobs, employment growth was 

most substantial in services where 25,000 new jobs were added. By 1960, services and 

wholesale/retail trade employment accounted for 60 percent of total employment in the 

Pensacola LMA. Manufacturing employed almost 20 percent of the labor force in 1960, adding 

almost 10,000 jobs since 1950. Construction added 4,000 new jobs (5.1%), and 

transportation/public utilities added 3,000 new jobs (3.8%). Agriculture’s share of the labor 

force fell to 3 percent in 1960, while mining employed only 104 workers (0.1%). 

 Year 1970. Total employment in the Pensacola LMA grew by 29 percent between 1960 

and 1970, employing over 100,000 people in 1970. In non-service sectors, transportation/public 

utilities (59%) accounted for the largest amount of growth. Manufacturing grew at 4 percent, 

significantly less than the growth rates for this time period in other Florida LMAs. Services 

generated 12,000 new jobs. By 1970, 65 percent of all employment in the Pensacola LMA was 

concentrated in services and wholesale/retail trade. Mining employed less than 1 percent of the 

labor force. 

G

20,000

40,000

60,000

80,000

100,000

120,000

140,000

 160,000

180,000

1940 1950 1960 1970 1980 1990 2000

LMA# 109 Agriculture Mining Const. Manuf. Tran/Pub.Util Whole/Ret. Services
349

 Year 1980. The total employment rate grew by 47 percent between 1970 and 1980, with 

150,798 workers employed in 1980. Of the nearly 50,000 new jobs added, approximately 75 

percent were in the service and wholesale/retail trade sectors. Together, those sectors employed 

over 100,000 workers, or 69 percent of the labor force. Construction, manufacturing, and 

transportation and public utilities combined to add almost 10,000 new jobs. In that same year, 

977 people were employed in mining (0.6%), up from 167 (0.1%) in 1970. That jump in 

employment suggests that the Pensacola LMA may have been affected by the boom in oil and 

gas employment in the late 1970s. 

Year 1990. Between 1980 and 1990, the Pensacola LMA experienced a 41 percent 

increase in employment. In 1990, employment levels exceeded 210,000 workers. Services and 

wholesale/retail trade combined to add 37,000 new jobs. By 1990, manufacturing employed 

over 22,000 workers (10.5%), and the construction industry employed 17,316 (8.2%). By 1990, 

71 percent of all jobs in the Pensacola LMA were in services or wholesale/retail trade. Mining 

employment levels dropped 15 percent to 835 workers in 1990 employing 0.4 percent of the 

labor force. 

 Phase II: Recent Industry Analysis. The historical Census data show that the Pensacola 

LMA was a diversified, but relatively slow-growing LMA until 1960. There were no hints of an 

economic downturn in any of these data. However, the 10-year Census data may not have fully 

captured cycles that occurred between census years. This section more carefully considers 

annual employment data from 1969 to 2000 to explore that possibility (Figure 2). 

 

 Figure 2. Annual Employment, Pensacola LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

0

 20,000

 40,000

 60,000

 80,000

100,000

120,000

1969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

 

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt
350

 While employment grew by 22 percent in the Pensacola LMA in 1990, only services and 

construction had positive growth rates; manufacturing lost 25 percent (or about 4,000 jobs). The 

REIS data for 2000 show that government accounts for 22.4 percent of all employment, falling 

behind services (30.6%). The Pensacola LMA is below national percentages on most other 

industry measures (Table 1). 

Table 1 

 Employment by Sector, Pensacola LMA: 2000 

Industry Percent 

Agriculture 1.2 

Mining 0.2 

Construction 6.7 

Manufacturing 4.6 

Transportation/Public Utilities 3.7 

Wholesale Trade 2.6 

Retail Trade 18.3 

Finances, Insurance & Real Estate 6.6 

Services 30.6 

Government 22.4 

 Source: U.S. Census Bureau, 2000b. 

 The Pensacola LMA is more government intensive than other LMAs in the region. For 

the nation in 2000, the government employed 14 percent of all workers. In comparison, the 

Florida Gulf of Mexico LMAs employed 19 percent. However, as with other indicators, there is 

considerable spatial variation in government employment among the LMAs. For example, the 

government employment growth rates in the Pensacola LMA (1%), and Sarasota LMA (1.5%) 

were lower than the national growth rate of 5 percent in 2000. Moreover, there was negative 

government employment growth (-10%) in the Panama City LMA. However, Ft. Myers (29%), 

and several of the more rural LMAs (Taylor, Citrus-Marion) experienced growth rates in excess 

of 10 percent, or at least twice the national growth rate. 

Three LMAs show substantial concentration of government employment. In 2000, 

federal, state, or local government organizations employed 22.4 percent of the Pensacola LMA, 

29 percent of the Dixie-Gainesville LMA, and 32 percent of the Tallahassee LMA labor forces. 

In comparison, the Tampa Bay-St. Petersburg LMA government sector employs only 10 percent 

of the work force. These findings are not surprising, however. The Pensacola LMA is home to a 

major naval air station (Naval Air Station Pensacola); the University of Florida, a Carnegie 

Foundation Research I Extensive university, is located in Gainesville; and, Tallahassee, the state 

capitol, boasts two major universities (Florida State University and Florida A&M University). 

These three government-intensive LMAs are all located along the Florida Gulf Coast. 

Phase III: Recession Analysis. To test the effects of business cycle recessions on the 

Pensacola LMA economy during the last 30 years we examined the annual trends in 

employment. The total annual employment figures, plus three-year moving averages data show 

a linear growth pattern (Figure 3). In most years the actual employment levels were greater than 

expected, as based on the employment levels in the previous three years. However, we see some 
351

convergence in these lines for the three major recessions of the time period: the mid-1970s, the 

late 1980s, and the early 1990s. Observed employment levels during each of these periods were 

not greater than predicted employment levels. However, in all other years, growth exceeded 

expectations. One possible explanation, particularly for the late 1980s and early 1990s, may be 

linked to the effects of slowdowns in the defense industry following the end of the Cold War. 

 

 Figure 3. Total Employment and Three-year Moving Averages, Pensacola LMA: 1969- 

 2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000).

 

 

In a systems approach to local economic organization, one issue of particular importance 

is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are not as 

problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employ a moving 

average forecasting model to locate the years that the shocks occur in the Pensacola LMA. The 

forecasting procedure includes the following. First, three-year moving averages (current plus 

previous two years) of employment levels are computed. Second, at each year the expected 

value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

0

50,000

 100,000

 150,000 

 200,000

 250,000

300,000 

 350,000

 400,000

1969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000
352

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). 

 The forecasting analysis data show that, after 1970, the employment growth rates in the 

Pensacola LMA were greatest (i.e., exceeded expectations) in the economic booms of the 1980s 

and 1990s (Figure 4). However, several caveats accompany this conclusion. First, the boom 

during the 1980s may reflect increased defense spending during that time period. Also, the 

forecasting analysis fails to detect significant drop-offs in employment during any of the 

recession periods over the period in question. One reason for the lack of downturn may stem 

from the concentration of government employment in the Pensacola LMA, which, unlike the 

private sector, is more recession-proof. 

 Figure 4. Employment Forecasting Analysis, Pensacola LMA: 1971-1999. 

 Phase IV: Socio-Demographic Analysis. The population data show that the Pensacola 

LMA has grown faster than the national rates since 1960, averaging growth rates of 22 percent 

per decade since 1960 (Tables 2-5). While these growth rates are substantially lower than those 

found in other LMAs along the Gulf of Mexico in Florida, they are significantly higher than the 

national growth rates between 1960 and 2000. In 2000, African-Americans comprise 14 percent 

of the Pensacola LMA population and Caucasians account for 80 percent. Of the Florida Gulf of 

Mexico LMAs, the racial composition percentages for the Pensacola LMA have been the most 

stable over time. Although Hispanics only comprised 3 percent of the LMA’s population in 

1990, their representation doubled between 1990 and 2000. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

1990199119921993199419951996199719981999

Forecasting Error 2 X MSE
353

Table 2 

 Population by County, Pensacola LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Escambia 74,667 112,706 173,829 205,334 233,794 262,798 294,410 

Okaloosa 12,900 33,626 61,175 88,187 109,920 143,776 170,498 

Santa Rosa 16,085 18,554 29,547 37,741 55,988 81,608 117,743 

Walton 14,246 14,725 15,576 16,087 21,300 27,760 40,601 

LMA Total 117,898 179,611 280,127 347,349 421,002 515,942 623,252 

Source: U.S. Census Bureau, 2000b. 

Table 3 

 Percent of White Population, Pensacola LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Escambia 76.4 77.7 79.0 79.3 77.5 76.6 72.3 

Okaloosa 91.1 93.5 93.1 92.2 88.6 87.0 83.4 

Santa Rosa 87.9 91.4 92.6 94.0 95.0 93.5 90.7 

Walton 86.0 86.7 86.4 88.6 88.8 91.3 88.4 

LMA % 80.7 79.4 83.9 76.0 83.3 82.9 80.2 

LMA Total 95,177 142,655 235,249 264,035 350,796 428,190 499,965 

Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Black Population, Pensacola LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Escambia 23.5 22.1 20.6 19.6 19.6 20.0 21.4 

Okaloosa 8.8 8.0 6.5 7.2 8.5 9.0 9.1 

Santa Rosa 12.1 8.5 6.8 5.2 4.6 4.0 4.2 

Walton 14.0 13.3 13.5 11.1 9.7 6.5 7.0 

LMA % 19.2 17.1 15.6 14.5 14.2 13.7 13.8 

LMA Total 22,651 30,718 43,953 50,474 59,865 70,744 86,350 

Source: U.S. Census Bureau, 2000b. 
354

Table 5 

 Percent of Hispanic Population*, Pensacola LMA: 1970-2000 

County 1970 1980 1990 2000 

Escambia 1.5 1.6 1.8 2.7 

Okaloosa 2.1 2.3 2.9 4.3 

Santa Rosa 0.6 1.2 1.7 2.5 

Walton 0.8 0.5 1.2 2.1 

LMA % 1.6 1.7 2.1 3.1 

LMA Total 5,510 7,323 10,739 19,085 

 * County-level Census data for Hispanic populations are not available 

 before 1970. 

 Source: U.S. Census Bureau, 2000b. 

 

Retirement Age Population. Although the State of Florida has a large retirement age 

population, only 13 percent of the Pensacola LMA was over the age of 65 in 2000; the national 

rate was 12 percent. Moreover, within the LMA, there is little variation and no county has a 

percent 65 and older that deviates significantly from the national rate (Table 6). The one 

possible exception is the least populated Walton County, which had a 15.8 percent retirement age 

population in 2000. 

Table 6 

Percent of Population Over 65, Pensacola LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Escambia 5.1 5.2 6.4 8.8 12.0 13.3 

Okaloosa 4.1 3.2 3.3 5.8 9.3 11.9 

Santa Rosa 6.7 5.5 6.0 7.2 9.4 11.0 

Walton 8.7 10.7 13.2 16.0 16.8 15.8 

LMA Total 5.0 5.0 6.0 8.0 11.0 13.0 

 Source: U.S. Census Bureau, 2000b. 

Education. In 2000, 21 percent of adults in the Pensacola LMA held at least a 

Bachelor’s degree (compared to a national rate of 24%). However, the spatial distribution of 

educational attainment is skewed. Walton County, the home of Ft. Walton Beach, had fewer 

college graduates (16%) than all other Pensacola LMA counties (22%). In 2000, the percent of 

adults who did not earn a high school diploma was lowest in Okaloosa County (8.3%) (Table 7). 

 
355

Table 7 

 Adult Educational Attainment (age 25+), Pensacola LMA: 1970-2000 

County 0-8 Years Some High 

School 

High School 

Diploma 

Some College, 

No Degree 

BA/BS or 

More 

1970 

Escambia 28.1% 21.6% 31.5% 9.7% 9.1% 

Okaloosa 17.1% 15.8% 40.8% 13.0% 13.2% 

Santa Rosa 26.1% 19.0% 34.0% 11.0% 9.8% 

Walton 41.2% 21.2% 25.0% 5.8% 6.7% 

LMA Total 26.0% 19.9% 33.6% 10.4% 10.1% 

1980 

Escambia 16.1% 16.6% 36.3% 16.8% 14.1% 

Okaloosa 11.3% 11.2% 41.4% 19.5% 16.6% 

Santa Rosa 16.0% 14.4% 38.9% 16.2% 14.4% 

Walton 28.9% 20.3% 30.4% 10.8% 9.5% 

LMA Total 15.6% 15.2% 37.6% 17.1% 14.5% 

1990 

Escambia 8.0% 15.8% 28.5% 29.5% 18.2% 

Okaloosa 5.7% 10.5% 28.8% 34.0% 21.0% 

Santa Rosa 7.7% 13.8% 28.8% 31.0% 18.6% 

Walton 13.6% 19.8% 31.1% 23.6% 11.9% 

LMA Total 7.6% 14.8% 28.6% 30.5% 18.5% 

2000 

Escambia 5.0% 12.9% 28.3% 32.7% 21.0% 

Okaloosa 3.7% 8.3% 27.1% 36.6% 24.2% 

Santa Rosa 4.0% 10.6% 29.2% 33.3% 22.9% 

Walton 7.3% 16.7% 32.3% 27.4% 16.2% 

LMA Total 4.6% 11.4% 28.4% 33.5% 21.9% 

Source: U.S. Census Bureau, 2000b. 

Finances. The local government finance data for the Pensacola LMA show that this 

region only experienced slight growth in the 1980s. Moreover, per capita revenues fall off 

slightly in 1987. This drop is not due to an actual dollar decline in revenues or transfers, but 

from a jump in the denominator: the population of the Pensacola LMA. During the same year, 

per capita debt increases to $2,610 from $1,980 in 1982. By 1992, the per capita debt drops to 

$2,260 dollars (Tables 8-11). 

However, within the Pensacola LMA there is considerable variation. Walton County 

shows low levels of debt, but revenue levels comparable to other counties. This is the most 

tourist intensive county in the Pensacola LMA and this activity may generate enough revenues to 

handle expenditures. Escambia County, on the other hand, has revenue levels comparable to the 

other counties in the LMA, but debt levels about twice the average LMA rate since 1987. This is 

the most populated county and revenues are not sufficient to meet expenditure demands, thus 

more debt is incurred. In fact, debt increased by over $900 per capita between 1992 and 1997. 
356

Table 8 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Pensacola LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Escambia $1,464 $1,890 $2,212 $2,303 $2,292 $2,689 

Okaloosa $1,668 $1,800 $17,443 $1,860 $1,925 $2,363 

Santa Rosa $1,634 $1,783 $1,889 $1,578 $1,624 $1,957 

Walton $1,356 $1,465 $1,529 $1,870 $2,256 $2,401 

LMA Total $800 $1,833 $2,630 $2,050 $2,070 $2,444 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Pensacola LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Escambia $620 $782 $758 $2,303 $1,016 $963 

Okaloosa $715 $869 $7,830 $1,860 $908 $894 

Santa Rosa $610 $863 $744 $1,578 $843 $871 

Walton $667 $646 $611 $1,870 $744 $574 

LMA Total $646 $808 $988 $860 $942 $903 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Pensacola LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Escambia $396 $353 $348 $403 $487 $644 

Okaloosa $541 $301 $2,719 $373 $486 $653 

Santa Rosa $306 $249 $394 $355 $463 $547 

Walton $340 $417 $376 $833 $946 $1,190 

LMA Total $420 $329 $432 $414 $507 $662 

 Source: U.S. Census Bureau, 2000a. 
357

Table 11 

 Total Debt, Per Capita (in 1997 adjusted dollars), Pensacola LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Escambia $684 $1,621 $2,198 $4,058 $3,183 $4,005 

Okaloosa $1,082 $869 $6,457 $1,021 $1,644 $937 

Santa Rosa $789 $1,184 $686 $1,230 $959 $1,246 

Walton $726 $753 $836 $495 $970 $695 

LMA Total $800 $1,328 $1,981 $2,610 $2,260 $2,431 

 Source: U.S. Census Bureau, 2000a. 

5. Panama City, Florida: Labor Market Area 

 a. Introduction 

This analysis examines historical and current industry and socio-demographic patterns in 

LMA 100: Panama City. The analysis is divided into several phases. Phase I provides a general 

overview of broad (single-digit) industry patterns in this LMA for decennial census years from 

1940 to 1990 using Census data. Phase II shows employment patterns in broad (single-digit) 

industry categories for all years between 1969 and 2000 using Regional Economic Information 

Systems (REIS) data from the Bureau of Economic Analysis. Phase III examines the impact of 

economic recessions on employment levels during the last 30 years. Phase IV is a sociodemographic analysis of the LMA. 

b. Setting 

 The Panama City LMA is south of the Tallahassee LMA in the Florida Panhandle. The 

LMA is comprised of the following counties: Bay, Franklin, and Gulf (Map 17). Approximately 

170,000 people resided in this LMA in 2000, making it one of the least populous LMAs in the 

Florida Gulf of Mexico Region (GOMR). With 140,000 residents, Bay was the most populous 

county in the Panama City LMA in that year. Caucasians comprise the vast majority of residents 

in this LMA (83% in 2000), and have been the dominant population since 1950. In 2000, 11 

percent of its population was African-American, and 3 percent was Hispanic. During the 1990s 

this LMA’s population grew by 17 percent. While this growth rate was almost twice the national 

rate of 9 percent, it was still the slowest growth rate among the Florida Gulf Coast LMAs. 

 c. Unit of Analysis 

 Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993). 
358

Map 17. Panama City, Florida Labor Market Area.
359

 Phase I: General Historical Industry Trends. This section considers the general 

historical industry trends for Panama City LMA (Figure 1). The data are analyzed both crosssectionally and longitudinally in order to gain a more complete understanding of both the 

structure of and the resulting changes to the Panama City LMA’s primary industries over time. 

Year 1940. In 1940, only 7,821 people were employed in the Panama City LMA. 

Manufacturing (40%) was the dominant non-service sector. Wholesale/retail trade, and services 

employed 38 percent of the Panama City LMA labor force. The mining sector employed no 

workers in 1940. 

Year 1950. Between 1940 and 1950, the Panama City LMA total employment grew by 

67 percent, employing approximately 13,000 workers. In 1950, services and wholesale/retail 

trade employed a combined total of 49 percent of the labor force. Manufacturing employed 25 

percent of workers. Construction was the only other non-service industry sector in which 

employment concentration was at least 10 percent in 1950, employing 1,500 people in 1950.

Year 1960. Between 1950 and 1960, total employment grew by 76 percent, employing in 

excess of 23,000 workers in 1960. In terms of number of jobs, employment growth was most 

substantial in services where 3,000 new jobs were added. By 1960, services and wholesale/retail 

trade employed 60 percent of the Panama City LMA workforce. Manufacturing employed 

almost 20 percent of the labor force. In 1960, mining employed 42 workers. 

 

 

 Figure 1. Major Industry Employment, Panama City LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

Year 1970. Total employment in the Panama City LMA grew by 31 percent between 

1960 and 1970, employing nearly 31,000 people by 1970. In non-service sectors, growth was 

0

 5,000

10,000

15,000

20,000

25,000

30,000

35,000

 40,000

 45,000

50,000

1940 1950 1960 1970 1980 1990 2000

LMA# 100 Agriculture Mining Const. Manuf. Tran/Pub.Util. Whole/Ret. Services
360

greatest in transportation/public utilities (29%). Manufacturing grew at 9 percent, significantly 

less than the growth rates for this period in other Florida LMAs. Services generated 3,000 new 

jobs. By 1970, 64 percent of all employment in the Panama City LMA was concentrated in 

services and wholesale/retail trade. 

Year 1980. Between 1970 and 1980, the total employment rate in the Panama City LMA 

grew by 40 percent, employing 42,780 workers in 1980. Construction, manufacturing, and 

transportation and public utilities combined to add less than 3,000 total new jobs to the LMA. 

Of the nearly 12,000 new jobs added in the Panama City LMA, approximately 75 percent were 

added in the combined service and wholesale/retail trade sectors, which employed almost 28,000 

workers in 1980, or 67 percent of the labor force. 

Year 1990. Between 1980 and 1990, the Panama City LMA experienced a 43 percent 

increase in employment. In 1990, employment levels exceeded 61,000 workers in Panama City 

LMA. Services and wholesale/retail trade combined to add 16,000 new jobs. By 1990, 

manufacturing employed over 5,000 workers, and the construction industry employed 4,500. By 

1990 73 percent of all jobs in the Panama City LMA were in services or wholesale/retail trade. 

 Phase II: Recent Industry Analysis. The historical Census data show that the Panama 

City LMA grew relatively slowly throughout the period (Figure 2). What distinguishes the 

Panama City LMA from other slower growing Florida LMAs is its lack of dependence on 

agriculture during any period. While growth rates were slower and employment levels very low, 

there were no hints of an economic downturn. 

0

5,000

10,000

15,000

2 0,000

25,000

30,000

35,0001969

19701971

197219731974

19751976

19771978

197919801981198219831984198519861987

1988198919901991

19921993

1994199519961997

1998

1999

2000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt

0

5,000

10,000

15,000

2 0,000

25,000

30,000

35,0001969

19701971

197219731974

19751976

19771978

197919801981198219831984198519861987

1988198919901991

19921993

1994199519961997

1998

1999

2000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt

 Figure 2. Annual Employment, Panama City LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

The REIS data show that the Panama City LMA had high concentrations of employment 

in retail trade (21%), services (29%) and government (17%) in 2000 (Table 1). The Panama City 

LMA’s economy is largely tourist-based. It employs more accommodation and food service 

workers than do most other LMAs along the Florida Gulf Coast. Because the Panama City LMA 
361

has a tourist-based economy, however, it is vulnerable to significant downturns during national 

recessions. Since 1970, the United States’ economy has experienced several recessions: 

following the oil embargo and the energy crises (1973-1976); following the high interest rates 

that followed rapid inflation growth (1980-1982); and (1989-1992).3

Table 1 

 Employment by Sector, Panama City LMA: 2000 

Industry Percent 

Agriculture 1.9 

Mining 0.3 

Construction 7.4 

Manufacturing 4.7 

Transportation/Public Utilities 3.6 

Wholesale Trade 3.2 

Retail Trade 20.9 

Finances, Insurance & Real Estate 7.3 

Services 28.8 

Government 16.8 

 Source: U.S. Census Bureau, 2000b. 

Phase III: Recession Analysis. To test the effects of business cycle recessions on the 

Panama City economy during the last 30 years, we examined the annual trends in employment. 

Total annual employment figures, plus three-year employment moving averages, for Panama 

City LMA data show positive growth patterns without the presence of downturns in the economy 

(Figure 3). In almost every year the actual employment levels were slightly higher than 

expected, based on the employment levels in the previous three years. Two exceptions occurred 

in early 1970s and late 1980s. These are recession periods, but even the expected employment 

levels never exceeded the observed employment levels. Moreover, we fail to see declines in 

actual employment that were present in other Gulf of Mexico LMAs in the oil and natural gas 

regions of Louisiana; LMAs that largely had specialist economies. 

 In a systems approach to local economic organization, one issue that is particularly 

important is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are 

not as problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employ a moving 

average forecasting model to locate the years that the shocks occur in the Panama City LMA.

 The forecasting procedure includes the following. First, three-year moving averages 

(current plus previous two years) of employment levels are computed. Second, at each year the 

 

3 Heilbroner and Milberg, 1999; Mencken and Singelmann, 1998. 
362

expected value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). 

0

20,000

40,000

60,000

80,000

100,000

120,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

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1991

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1994

1995

1996

1997

1998

1999

2000

0

20,000

40,000

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1969

1970

1971

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1973

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1980

1981

1982

1983

1984

1985

1986

1987

0

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1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

 Figure 3. Total Employment and Three-year Moving Averages, Panama City 

 LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 

 Since at least 1970, employment growth rates were greatest during the “boom” of the 

1980s (Figure 4). Also, the forecasting analysis fails to detect significant drop-offs in 

employment during any of the recession periods over the period in question. 
363

 Figure 4. Employment Forecasting Analysis, Panama City LMA: 1971-1999. 

 Phase IV: Socio-Demographic Analysis. The historical and current population data for 

the Panama City LMA show that this has been one of the slowest growing LMAs in the nation 

since the 1950s (Tables 2-4). Although the population has averaged almost 20 percent growth 

rates for the last three decades, these numbers are significantly lower than other growth rates in 

the Florida Gulf of Mexico LMAs. However, the growth rate was almost twice the national 

average during the 1990s, despite being the slowest growing LMA in the Florida GOMR. 

 The Panama City LMA has also been the most stable in terms of racial and ethnic 

composition. Since 1950, the vast majority of the population has been white (80%). This is also 

one of the few Florida GOMR LMAs without a growing Hispanic population. 

Table 2 

 Percent of White Population, Panama City LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Bay 79.6 83.2 85.2 85.5 86.2 87.4 86.5 

Franklin 66.6 74.2 78.8 79.0 83.8 86.4 81.3 

Gulf 65.7 73.2 76.0 75.5 78.7 80.9 80.6 

LMA Total 25,025 45,295 69,810 78,798 98,678 126,849 142,022 

 Source: U.S. Census Bureau, 2000b. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982

19831984198519861987198819891990199119921993199419951996199719981999

Forecasting Error 2 X MSE
364

Table 3 

 Percent of Black Population, Panama City LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Bay 20.4 16.7 14.7 12.6 12.0 10.6 10.9 

Franklin 33.3 25.7 21.1 23.0 14.1 12.5 16.2 

Gulf 34.3 26.8 24.0 23.3 19.8 18.8 17.3 

LMA Total 8,601 10,631 13,670 13,343 14,945 16,657 19,535 

 Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Hispanic Population*, Panama City LMA: 1970-2000 

County 1970 1980 1990 2000 

Bay 1.9 1.6 1.9 2.5 

Franklin 0.0 2.0 1.0 2.4 

Gulf 1.1 1.4 0.3 2.1 

LMA Total 1,571 1,966 2,539 4,129 

 *County-level Census data for Hispanic populations are not available before 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The State of Florida has a large retirement age population. 

In some counties, the percent of the population 65 and older exceeds the national rate of 12 

percent by more than 200 percent. The Panama City LMA, however, does not qualify as one of 

those retirement-age intensive LMAs. Still, 16 percent of the population in the Panama City 

LMA was over the age of 65 in 2000 (Table 5). 

Table 5 

 Percent Population Over 65, Panama City LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Bay 4.5 5.1 7.1 9.4 12.0 13.3 

Franklin 8.5 13.3 15.7 14.9 18.0 15.9 

Gulf 4.6 5.1 8.2 10.9 15.2 16.3 

LMA Total 5.9 7.9 10.3 11.8 15.1 15.2 

 Source: U.S. Census Bureau, 2000b. 

Education. In 2000, the percentage of adults with a college degree (17%) in this LMA 

was significantly lower than the national rate (24%). It also had one of the lowest college 

graduate rates in the greater Florida GOM Region. However, it is typical to find lower rates of 

college graduates in tourist-intensive areas where many jobs do not require high-level skill sets. 

Within the LMA, Bay County has the highest percentage of college graduates (18%), but does 
365

not approach the national average of 24 percent. Despite having low levels of college graduates, 

the Panama City LMA had significantly fewer non-high school graduates (20%) in 2000 than did 

the nearby Taylor LMA (29%) (Table 6). 

 Table 6 

 Adult Educational Attainment (+25), Panama City: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Bay 28.1% 20.9% 31.5% 10.2% 9.2% 38,673 

Franklin 43.8% 20.9% 24.3% 6.4% 4.6% 3,980 

Gulf 37.6% 20.1% 30.2% 6.4% 5.6% 5,274 

LMA Total 30.5% 20.7% 30.7% 9.4% 8.4% 47,927 

1980 

Bay 18.4% 15.8% 35.7% 16.9% 13.2% 56,053 

Franklin 33.2% 22.7% 27.1% 7.8% 9.0% 4,501 

Gulf 23.1% 18.2% 42.5% 9.3% 6.7% 6,182 

LMA Total 19.8% 16.4% 35.7% 15.5% 12.3% 66,736 

1990 

Bay 9.1% 16.2% 30.6% 28.3% 15.7% 82,448 

Franklin 17.4% 23.0% 30.6% 16.5% 12.4% 6,107 

Gulf 12.8% 20.7% 36.8% 20.3% 9.1% 7,641 

LMA Total 9.9% 17.0% 31.1% 26.9% 14.9% 96,196 

2000 

Bay 5.0% 14.0% 30.6% 32.7% 17.6% 99,771 

Franklin 9.2% 13.0% 41.4% 22.2% 14.1% 7,202 

Gulf 8.6% 18.8% 37.1% 25.3% 10.1% 9,527 

LMA Total 5.5% 14.3% 31.8% 31.4% 16.8% 116,500 

 Source: U.S. Census Bureau, 2000b. 

Finances. The Panama City LMA’s focus on tourism could have extensive implications 

for local government finances. The government financial data show higher levels of per capita 

revenues in 1997 than for the largest LMAs in the region. For example, in 1997, per capita 

revenues in the Sarasota LMA were $2,943, and $2,818 in Tampa Bay-St. Petersburg. However, 

in Panama City LMA, the rate is $3,286 per capita. In 1997, the per capita local government 

debt was $1,500, compared to $4,500 per capita in the Ft. Myers LMA during the same year 

(Tables 7-10). 

 
366

Table 7 

Total Revenue, Per Capita (in 1997 adjusted dollars), Panama City LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Bay $2,036 $2,807 $2,515 $2,925 $3,492 $3,414 

Franklin $1,558 $1,813 $2,273 $2,588 $2,288 $2,397 

Gulf $1,576 $1,897 $2,423 $2,559 $2,645 $2,592 

LMA Total $1,878 $2,460 $2,492 $2,875 $3,356 $3,286 

 Source: U.S. Census Bureau, 2000a. 

Table 8 

Total State Revenue, Per Capita (in 1997 adjusted dollars), Panama City LMA: 

1972-1997 

County 1972 1977 1982 1987 1992 1997 

Bay $610 $1,024 $801 $921 $990 $940 

Franklin $1,111 $1,151 $989 $1,045 $1,075 $757 

Gulf $849 $1,070 $942 $1,017 $1,064 $850 

LMA Total $672 $1,036 $825 $936 $1,001 $922 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Panama City LMA: 

1972-1997 

County 1972 1977 1982 1987 1992 1997 

Bay $635 $449 $410 $520 $664 $747 

Franklin $254 $459 $464 $717 $758 $1,070 

Gulf $688 $463 $459 $676 $886 $873 

LMA Total $613 $451 $418 $545 $686 $777 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

Total Debt, Per Capita (in 1997 adjusted dollars), Panama City LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Bay $1,516 $1,503 $1,019 $1,686 $1,164 $1,711 

Franklin $631 $1,513 $1,567 $1,284 $910 $382 

Gulf $1,744 $1,267 $2,609 $420 $653 $982 

LMA Total $1,474 $1,482 $1,194 $1,560 $1,110 $1,572 

 Source: U.S. Census Bureau, 2000a. 
367

6. Tallahassee, Florida: Labor Market Area 

a. Introduction 

This analysis examines the historical and current industry and socio-demographic 

patterns in LMA 099: Tallahassee. The analysis is divided into several phases. Phase I provides 

a general overview of broad (single-digit) industry patterns in this LMA for decennial census 

years from 1940 to 1990 using Census data. Phase II shows employment patterns in broad 

(single-digit) industry categories for all years between 1969 and 2000 using regional 

employment and industry statistics (REIS) data from the Bureau of Economic Analysis. Phase 

III examines the impact of economic recessions on employment levels during the last 30 years. 

Phase IV is a socio-demographic analysis of the LMA. 

b. Setting 

 

The Tallahassee LMA is located in the Florida Panhandle (Map 18). It is the state 

capitol, and home to two state universities (Florida State University, and Florida A&M 

University). This LMA is comprised of the following counties: Calhoun, Gadsden, Holmes, 

Jackson, Leon, Liberty, Wakulla, and Washington. Over 425,000 people resided in the LMA in 

2000, with 150,000 residing in Leon, the largest county. In 2000, the LMA population was 65 

percent Caucasian, 29 percent African-American, and 3 percent Hispanic. During the 1990s the 

population of the LMA grew by more than 22 percent, vastly exceeding the national growth rate 

of 9 percent. 

 c. Unit of Analysis 

Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor Market 

Areas are defined by patterns of transportation to and from work within and across county 

boundaries. Labor Market Areas better represent local social systems and, empirically, local 

economies (Killian and Tolbert, 1993). 

 Phase I: General Historical Industry Trends. This section considers general historical 

industry trends for the Tallahassee LMA (Figure 1). These data are analyzed both crosssectionally and longitudinally in order to gain a more complete understanding of both the 

structure of and the resulting changes to the Tampa-St. Petersburg LMA’s primary industries 

over time. 

 Year 1940. In 1940, 37,867 people were employed in the Tallahassee LMA. The leading 

non-service sectors, agriculture and manufacturing, employed 50 percent and 13 percent of the 

LMA labor force, respectively. Wholesale/retail trade, and services employed 27 percent of the 

workforce. The mining sector employed 128 workers in 1940. 

Year 1950. Between 1940 and 1950, total employment in Tallahassee LMA grew by 31 

percent, employing approximately 50,000 workers by 1950. Services and wholesale/retail trade 

employed 37 percent of the workforce, while agriculture employed approximately 33 percent. 

Manufacturing was the other non-service industry sector employing at least 10 percent of the 

labor force, employing 6,000 people in 1950. 
368

Map 18. Tallahassee, Florida Labor Market Area.
369

 Year 1960. Between 1950 and 1960, total employment grew by 31 percent, employing 

some 65,000 workers in 1960. In terms of number of jobs, employment growth was most 

substantial in services where 17,000 new jobs were added. By 1960, services and 

wholesale/retail trade employed 59 percent of the Tallahassee LMA workforce, but accounted 

for less than 25,000 jobs. Agriculture lost jobs during the 1950s (-9,000), but still employed 17 

percent of all workers in 1960. In 1960, mining employed 173 workers. 

Year 1970. Total employment in Tallahassee LMA grew by 26 percent between 1960 

and 1970, with nearly 83,000 people employed in 1970. In non-service sectors, growth was 

greatest in transportation/public utilities (43%). Manufacturing grew at 6 percent, significantly 

less than other Florida LMA growth rates for this same period. Services generated 15,000 new 

jobs. By 1970, 69 percent of all employment in Tallahassee LMA was concentrated in services 

and wholesale/retail trade. Agriculture employed less than 10 percent of the total work force in 

1970, down from 17 percent in 1960. 

Year 1980. The total Tallahassee LMA employment rate grew by 51 percent between 

1970 and 1980, employing 125,497 workers in 1980. Over 2,600 jobs were added in 

construction, 3,000 added in manufacturing, and 2,500 in transportation and public utilities. 

Services and wholesale/retail trade (combined) added almost 27,000 jobs, and employed almost 

85,000 workers or 74 percent of the labor force in 1990. Employment in the agricultural sector 

declined by 29 percent between 1970 and 1980, and employed only 4 percent of the labor force 

by 1980. 

 

 Figure 1. Major Industry Employment, Tallahassee LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

0

 20,000

 40,000

 60,000

 80,000

100,000

120,000

140,000

160,000

1940 1950 1960 1970 1980 1990 2000

LMA# 99 Agriculture Mining Const. Manuf. Tran/Pub.Util. Whole/Ret. Services
370

 Year 1990. Between 1980 and 1990, employment in the Tallahassee LMA increased 32 

percent, employing almost 165,000 workers in 1990. Services and wholesale/retail trade 

(combined) added 33,000 new jobs. By 1990, manufacturing employed over 12,000 workers, 

and the construction industry employed almost as many. By 1990, 76 percent of all jobs in the 

Tallahassee LMA were in services or wholesale/retail trade. Agricultural employment leveled 

off at approximately 5,000 workers in 1990. 

Phase II: Recent Industry Analysis. The Tallahassee LMA was relatively slow-growing 

and agricultural-dependent until 1970, with no hints of an economic downturn. After 1970, its 

industry growth rates began to mirror those in other Florida LMAs (Figure 2). 

 

 Figure 2. Annual Employment, Tallahassee LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

Employment grew by 18 percent in the Tallahassee LMA during the 1990s; services, 

construction, and government account for all of this growth (Table1). Home to the state capitol, 

Tallahassee is one of the most government intensive LMAs in the nation. Government 

employment accounted for 31 percent of all employment in 2000. During the 1990s, government 

employment in the nation grew 5 percent, employing 14 percent of the workforce in 2000. In 

2000, government employment within the Florida Gulf of Mexico LMAs was 19 percent. Of 

course, government employment is not uniform across LMAs. For example, both the Pensacola 

LMA (1%), and the Sarasota LMA (2%) had government employment growth rates that were 

lower than the national rate of 5 percent, while the Panama City LMA’s government 

employment declined (-10%). However, the Ft. Myers (29%), and several of the more rural 

LMAs (e.g., Taylor, Citrus-Marion, Tallahassee) experienced growth rates in excess of 10 

percent, or at least twice the national growth rate. 

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt.
371

Table 1 

 Employment by Sector, Tallahassee LMA: 2000 

Industry Percent 

Agriculture 1.2 

Mining 0.1 

Construction 5.0 

Manufacturing 3.8 

Transportation/Public Utilities 2.8 

Wholesale Trade 2.6 

Retail Trade 16.0 

Finances, Insurance & Real Estate 5.4 

Services 27.8 

Government 31.2 

 Source: U.S. Census Bureau, 2000b. 

In 2000, the Pensacola LMA (23%), the Dixie-Gainesville LMA (29%), and the 

Tallahassee LMA (32%) had high levels of government employment. The Naval Air Station 

Pensacola, located in Pensacola; the University of Florida, in Gainesville; and, the state capitol, 

in Tallahassee account for these high levels of government employment. Clearly, those three 

LMAs along the Florida Gulf Coast are government-intensive. 

Phase III: Recession Analysis. To test the effects of business cycle recessions on the 

Tallahassee LMA economy since 1970, we examined the annual trends in employment. The 

total annual employment data for the Tallahassee LMA, together with the three-year employment 

moving averages illustrate a linear growth pattern (Figure 3). In most years the actual 

employment levels were greater than expected, based on the employment levels in the previous 

three years. However, we see some convergence in these lines for the three major recessions of 

the time period: the mid-1970s, the early 1980s, and the early 1990s. During each of these years 

observed employment levels were not greater than predicted employment levels. However, in all 

other years growth exceeded expectations. 

In a systems approach to local economic organization, one issue that is particularly 

important is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are 

not as problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employ a moving 

average forecasting model to locate the years that the shocks occur in the Tallahassee LMA. The 

forecasting procedure includes the following. First, three-year employment moving averages 

(current plus previous two years) are computed. Second, at each year the expected value (threeyear moving average) is subtracted from the observed value. Each of these deviations is squared 

to provide the forecasting error for each year. These squared deviations are summed and 

averaged across all years in the analysis to compute a mean squared error (MSE). We establish a 
372

“shock” for any given year in which the squared deviation for that year is greater than or equal to 

two times the mean squared error for the industry sector in question (Anderson et al., 1990). 

 Figure 3. Total Employment and Three-year Moving Averages, Tallahassee 

 LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic 

 Analysis, 2000). 

The employment and three-year moving averages data show that over the last 30 years, 

the employment growth rates were greatest (i.e., exceeded expectations) in the economic booms 

of the 1980s and the 1990s. Also, the forecasting analysis fails to detect significant drop-offs in 

employment during any of the recession periods over the period in question. One reason for the 

lack of downturn may stem from the concentration of government employment in the LMA, 

which, unlike the private sector, is more recession-proof (Figure 4). 

0

 50,000

100,000

150,000

200,000

250,000

300,000

1969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999

2000
373

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Forecasting Error 

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Forecasting Error 2 X MSE

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Forecasting Error 

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

Forecasting Error 2 X MSE

 Figure 4. Employment Forecasting Analysis, Tallahassee LMA: 1971-1999. 

Phase IV: Socio-Demographic Analysis. In 2000, Caucasians comprised 65 percent of 

the Tallahassee population. In that same year, African-Americans comprised 29 percent, and 

Hispanics accounted for 4 percent of the population. The historical and current population data 

for the Tallahassee LMA show that growth rates in this LMA have exceeded national growth 

rates since 1940 (Tables 2-5). In particular, the LMA experienced rapid growth in the 1970s 

(30%), the 1980s (19%) and the 1990s (22%). While these growth rates are substantially lower 

than those found in other LMAs along the Florida GOM, they are significantly higher than the 

national growth rates for those years. 

Table 2 

 Population by County, Tallahassee LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Calhoun 8,218 7,922 7,422 7,624 9,294 11,011 13,017 

Gadsden 31,450 36,457 41,989 39,184 41,565 41,105 45,087 

Holmes 15,447 13,988 10,844 10,720 14,723 15,778 18,564 

Jackson 46,755 41,375 39,154 34,434 36,208 34,645 34,428 

Jefferson 12,032 10,413 9,543 8,788 10,703 11,296 12,902 

Leon 31,646 51,590 74,225 103,047 148,655 191,493 239,452 

Liberty 3,752 3,182 3,138 3,379 4,260 5,569 7,021 

Wakulla 5,461 5,258 5,255 6,308 5,257 5,258 5,463 

Washington 20,973 16,919 14,509 11,453 14,273 16,485 19,704 

LMA Total 175,734 187,104 206,079 224,927 284,938 332,640 395,638 

Source: U.S. Census Bureau, 2000b. 
374

Table 3 

Percent of White Population, Tallahassee LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Calhoun 84.8 86.3 83.9 85.1 86.9 83.1 77.6 

Gadsden 44.3 43.8 40.5 43.5 39.6 40.6 35.8 

Holmes 95.0 95.6 95.8 96.9 97.3 93.1 88.9 

Jackson 47.1 55.7 63.7 71.0 79.2 86.7 93.2 

Jefferson 33.4 37.4 40.8 44.1 51.6 55.9 58.3 

Leon 49.1 60.5 67.1 74.3 73.9 74.0 64.1 

Liberty 75.3 81.7 84.7 85.6 89.2 82.0 74.5 

Wakulla 66.2 69.0 71.4 75.8 81.4 65.0 52.6 

Washington 47.8 57.7 62.5 79.8 84.4 84.9 85.6 

LMA % 53.2 59.0 62.0 68.7 70.9 72.3 65.9 

LMA Total 93,660 110,392 127,829 154,531 202,248 240,605 260,848 

Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Black Population, Tallahassee LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Calhoun 15.1 14.1 16.0 14.8 12.1 15.1 15.5 

Gadsden 55.6 56.1 59.4 59.3 59.9 58.1 56.8 

Holmes 4.9 4.3 4.2 3.0 1.9 4.8 6.4 

Jackson 26.5 27.8 28.6 28.9 28.2 31.2 35.6 

Jefferson 66.5 62.5 59.1 55.7 47.7 42.9 38.0 

Leon 50.9 39.5 32.7 25.2 24.7 24.3 28.8 

Liberty 24.6 18.2 15.0 14.3 10.7 17.0 18.2 

Wakulla 33.7 30.9 28.5 24.1 33.9 34.9 47.3 

Washington 10.8 12.5 15.0 20.1 15.6 15.1 14.3 

LMA % 34.7 34.7 34.8 31.0 29.0 28.2 30.7 

LMA Total 61,066 64,936 71,893 69,865 82,821 93,807 121,765 

Source: U.S. Census Bureau, 2000b. 

 
375

Table 5 

Percent of Hispanic Population*, Tallahassee LMA: 1970-2000 

County 1970 1980 1990 2000 

Calhoun 0.0 0.4 1.9 3.8 

Gadsden 0.3 1.2 1.8 6.1 

Holmes 0.1 0.4 1.3 1.9 

Jackson 0.4 0.8 2.7 3.9 

Jefferson 0.9 0.2 1.5 2.2 

Leon 1.6 1.5 2.6 3.5 

Liberty 0.0 0.1 1.3 4.5 

Wakulla 0.4 2.3 1.7 8.1 

Washington 0.0 0.6 0.8 2.4 

LMA % 0.9 1.2 2.3 3.8 

LMA Total 2,069 3,489 7,627 14,932 

 *County-level Census data for Hispanic populations are not available 

 prior to 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The State of Florida has a large retirement age population. 

In some counties, the 65 and older population exceeds the national rate of 12 percent by more 

than 200 percent. However, Tallahassee is not a retirement age LMA. In 2000, only 11 percent 

of the population was age 65 and older. Moreover, there is little variation within this LMA and 

none of the counties retirement age population deviates significantly from the national rate 

(Table 6). 

Table 6 

 Percent of Population Over 65, Tallahassee LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Calhoun 6.9 9.0 10.9 15.4 14.3 13.8 

Gadsden 8.2 9.4 11.9 12.0 11.9 12.2 

Holmes 7.3 11.9 14.5 14.3 15.4 14.7 

Jackson 7.8 8.6 11.0 13.7 15.0 14.6 

Jefferson 10.7 10.7 12.0 13.2 14.8 14.5 

Leon 5.3 5.2 5.4 6.5 8.1 8.3 

Liberty 7.7 8.9 11.1 12.1 11.2 10.3 

Wakulla 7.6 9.1 10.8 11.0 11.2 10.1 

Washington 8.5 11.0 13.0 15.5 17.1 15.2 

LMA Total 7.3 7.9 8.9 9.9 10.7 10.5 

 Source: U.S. Census Bureau, 2000b. 
376

Education. In 2000, 28 percent of adults in the Tallahassee LMA had earned at least a 

college degree (compared to a national rate of 24%). The presence of large state universities 

likely accounts for this larger than average rate of college graduates. By far, the greatest number 

of persons with college degrees within the LMA resides in Leon County, where the state capitol 

and two major universities are located. 

The data for non-high school completion shows a skewed pattern, as well. In 2000, the 

LMA had a high school non-completion percentage of 20 percent. However, in Calhoun, 

Gadsden, Holmes, Jackson, Jefferson, Liberty, and Washington Counties, that rate was greater 

than 30 percent. It is also worth noting that this pattern is historical. In 1970, approximately 70 

percent of the adults in these same counties had not finished high school (Table 7). 

Table 7 

 Adult Educational Attainment (25+), Tallahassee LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

Total 

1970 

Calhoun 50.8% 18.5% 21.8% 2.8% 6.0% 4,131 

Gadsden 51.5% 17.8% 20.0% 6.1% 4.6% 20,855 

Holmes 51.2% 20.3% 21.6% 3.4% 3.3% 6,288 

Jackson 45.9% 17.7% 23.7% 6.2% 6.3% 18,215 

Jefferson 51.7% 14.2% 20.7% 7.2% 6.1% 4,411 

Leon 20.9% 14.6% 26.2% 14.0% 24.1% 46,458 

Liberty 61.3% 13.8% 21.8% 2.7% 5.8% 1,819 

Wakulla 48.7% 19.7% 23.9% 5.7% 1.8% 3,340 

Washington 50.8% 17.1% 22.6% 5.4% 4.0% 6,370 

LMA Total 37.8% 16.4% 23.6% 9.1% 12.9% 111,887 

1980 

Calhoun 36.3% 16.6% 30.2% 9.8% 6.9% 5,491 

Gadsden 36.1% 16.7% 29.4% 9.0% 8.6% 22,658 

Holmes 38.4% 17.8% 30.6% 7.2% 5.9% 8,852 

Jackson 32.6% 16.2% 32.1% 10.8% 8.1% 22,492 

Jefferson 33.7% 14.5% 30.1% 10.2% 11.3% 5,985 

Leon 11.0% 10.2% 27.5% 19.2% 32.0% 77,259 

Liberty 37.7% 14.6% 33.4% 6.1% 8.0% 2,477 

Wakulla 25.9% 17.4% 38.9% 9.3% 8.4% 6,268 

Washington 32.2% 16.7% 35.7% 9.0% 6.2% 8,827 

LMA Total 23.0% 13.5% 29.7% 14.1% 19.6% 160,309 
377

Table 7 

 Adult Educational Attainment (25+), Tallahassee LMA: 1970-2000 (continued) 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree

BA/BS 

or More 

Total 

1990 

Calhoun 19.3% 24.7% 30.3% 17.4% 8.2% 7,005 

Gadsden 19.0% 21.1% 27.0% 18.2% 11.2% 24,654 

Holmes 20.2% 22.7% 33.7% 15.9% 7.3% 10,389 

Jackson 19.4% 18.9% 30.8% 19.8% 10.9% 26,740 

Jefferson 17.8% 18.0% 31.3% 18.0% 14.7% 7,054 

Leon 5.5% 9.6% 21.6% 26.2% 37.0% 110,187 

Liberty 18.0% 25.2% 32.8% 16.5% 7.3% 3,598 

Wakulla 11.3% 17.0% 39.0% 22.4% 10.1% 9,050 

Washington 17.3% 21.8% 37.3% 16.1% 7.4% 11,210 

LMA Total 11.5% 14.8% 26.8% 22.5% 24.2% 209,887 

2000 

Calhoun 12.8% 18.0% 38.5% 22.8% 7.7% 8,884 

Gadsden 11.2% 18.1% 35.9% 21.8% 12.9% 28,932 

Holmes 11.9% 22.9% 37.7% 18.6% 8.8% 12,659 

Jackson 11.2% 19.7% 32.7% 23.6% 12.8% 31,771

Jefferson 10.4% 16.4% 32.2% 24.0% 16.9% 8,911

Leon 3.0% 7.8% 18.8% 28.5% 41.7% 137,537 

Liberty 9.8% 24.5% 40.4% 17.7% 7.3% 4,828 

Wakulla 6.3% 15.2% 34.9% 27.7% 15.7% 15,211

Washington 12.0% 16.7% 38.8% 23.2% 9.2% 14,338

LMA Total 6.7% 12.9% 26.8% 25.8% 27.6% 263,071 

 Source: U.S. Census Bureau, 2000b. 

Finances. The local government finance data for the Tallahassee LMA suggest several 

trends. First, in 1987 revenues and debts peaked in 1997 dollars, on a per capita basis, most 

likely because of the extensive growth documented in the forecasting analysis. Since 1987, 

however, revenue and debt levels have declined (Tables 8-10). 

Regarding debt, with the exception of Leon County, no county in this LMA had a per 

capita debt load greater than $1,000 in 1997 (Table 11). In contrast, Leon County had a debt 

load of greater than $5,000 per person. Since most local government spending is used to fund 

area schools, these data suggest that Leon County’s local government were raising resources for 

district schools while surrounding counties in the LMA did not. 
378

Table 8 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Tallahassee LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Calhoun $1,496 $2,498 $2,252 $1,975 $1,746 $2,108 

Gadsden $1,344 $1,760 $1,781 $2,246 $1,904 $2,298 

Holmes $1,602 $1,806 $1,478 $2,147 $1,849 $1,965 

Jackson $1,504 $1,757 $1,724 $2,214 $2,709 $2,888 

Jefferson $1,560 $1,538 $1,586 $1,892 $2,196 $1,853 

Leon $2,034 $3,026 $2,831 $4,185 $2,612 $3,953 

Liberty $1,858 $1,791 $1,794 $2,194 $1,947 $1,894 

Wakulla $1,513 $1,518 $1,600 $1,746 $2,245 $2,241 

Washington $1,839 $2,706 $2,931 $2,639 $2,764 $3,279 

LMA Total $1,760 $2,437 $2,358 $3,252 $2,448 $3,279 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), 

Tallahassee LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Calhoun $1,080 $1,045 $971 $1,026 $1,145 $1,022 

Gadsden $645 $905 $872 $1,158 $1,212 $989 

Holmes $1,059 $864 $890 $1,547 $1,231 $1,086 

Jackson $849 $940 $911 $1,092 $1,363 $1,216 

Jefferson $1,197 $1,071 $1,054 $1,106 $1,197 $1,058 

Leon $493 $691 $622 $883 $994 $848 

Liberty $1,417 $1,387 $1,341 $1,264 $1,442 $1,169 

Wakulla $1,173 $1,080 $1,003 $1,102 $1,376 $1,332 

Washington $1,056 $1,284 $1,331 $1,493 $1,522 $1,253 

LMA Total $705 $846 $793 $1,030 $1,105 $977 

 Source: U.S. Census Bureau, 2000a. 
379

Table 10 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), 

Tallahassee LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Calhoun $211 $299 $217 $217 $252 $354 

Gadsden $326 $184 $153 $208 $283 $362 

Holmes $185 $283 $179 $202 $226 $280 

Jackson $226 $194 $193 $239 $369 $418 

Jefferson $213 $279 $222 $309 $438 $462 

Leon $418 $449 $405 $518 $739 $886 

Liberty $175 $191 $128 $225 $252 $350 

Wakulla $224 $250 $247 $373 $455 $451 

Washington $235 $247 $244 $307 $332 $424 

LMA Total $331 $333 $302 $393 $557 $663 

 Source: U.S. Census Bureau, 2000a. 

Table 11 

Total Debt, Per Capita (in 1997 adjusted dollars), Tallahassee LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Calhoun $1,179 $576 $313 $255 $66 $58 

Gadsden $459 $363 $824 $961 $1,071 $561 

Holmes $1,968 $987 $889 $697 $224 $138 

Jackson $524 $1,222 $1,223 $671 $769 $480 

Jefferson $548 $614 $222 $1,075 $55 $134 

Leon $1,050 $1,243 $2,935 $7,330 $6,272 $5,604 

Liberty $486 $315 $1,810 $2,028 $573 $126 

Wakulla $847 $483 $748 $395 $669 $847 

Washington $461 $115 $865 $475 $930 $997 

LMA Total $862 $955 $1,930 $4,287 $3,788 $3,300 

 Source: U.S. Census Bureau, 2000a. 
380

7. Taylor, Florida: Labor Market Area 

a. Introduction 

This analysis examines historical and current industry and socio-demographic patterns in 

the Taylor LMA 077. The analysis is divided into several phases. Phase I provides a general 

overview of broad (single-digit) industry patterns in this LMA from 1940 to 1990 for decennial 

census years using Census data. Phase II shows employment patterns in broad (single-digit) 

industry categories for all years between 1969 and 2000 using Regional Economic Information 

Systems (REIS) data from the Bureau of Economic Analysis. Phase III examines the impact of 

economic recessions on employment levels during the last 30 years. Phase IV is a sociodemographic analysis of the LMA. 

b. Setting 

The geographically large (but rural) Taylor LMA is located in northern Florida, to the 

east of the Panama City and Tallahassee LMAs. The Taylor LMA is comprised of the following 

counties: Columbia, Hamilton, Lafayette, Madison, Suwannee, and Taylor (Map 19). Almost 

150,000 people resided in this LMA in 2000. The largest county is Columbia, with 56,000 

people in 2000. This LMA has a large African-American contingent, representing 20 percent of 

the total year 2000 population. During the 1990s the population of the LMA grew by more than 

20 percent, vastly exceeding the national growth rate of 9 percent. 

c. Unit of Analysis 

Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor Market 

Areas are defined by patterns of transportation to and from work within and across county 

boundaries. Labor Market Areas better represent local social systems and, empirically, local 

economies (Killian and Tolbert, 1993). 

Phase I: General Historical Industry Trends. This section considers general historical 

industry trends for the Taylor LMA (Figure 1). These data are analyzed both cross-sectionally 

and longitudinally in order to gain a more complete understanding of both the structure of and 

the resulting changes to the Taylor LMA’s primary industries over time. 

Year 1940. In 1940, 20,211 people were employed in the Taylor LMA. Agriculture 

(52%) was the dominant industry (10,000 plus workers). Manufacturing employed 17 percent of 

the workforce. Wholesale/retail trade, and services accounted for 21 percent of employment, and 

mining employed 10 workers in 1940. 

Year 1950. Between 1940 and 1950 total employment in the Taylor LMA grew by only 

4 percent, employing 21,000 workers in 1950. Services and wholesale/retail trade employed a 

combined total of 27 percent of the workforce, about half of other Florida LMAs. Agriculture 

employed 44 percent of the total workforce, and manufacturing employed 19 percent. 

 
381

Map 19. Taylor County, Florida Labor Market Area.
382

Year 1960. Between 1950 and 1960, total employment grew by 15 percent, employing 

more than 24,000 workers in 1960. During this time, manufacturing employment grew by 17 

percent, while construction employment grew by 60 percent, adding 700 new jobs. Services 

added over 4,000 jobs, while agriculture employment declined by 39 percent. In 1960, services 

(28%) surpassed agriculture (23%) as the leading industry. 

 Figure 1. Major Industry Employment, Taylor LMA: 1940-2000 (U.S. Census Bureau, 

 2000b). 

Year 1970. Between 1960 and 1970, total employment in the Taylor LMA grew by 14 

percent, employing almost 28,000 people by 1970. Growth was greatest in mining (202%) and 

services (40%). By 1970, mining employed 445 workers, while agriculture declined 35 percent 

and employed only 12 percent of the workforce. By 1970, 52 percent of the Taylor LMA was 

concentrated in services and wholesale/retail trade. 

Year 1980. Between 1970 and 1980, the total employment rate in the Taylor LMA grew 

by 40 percent, employing 39,233 workers in 1980. Construction added over 1,000 jobs, 

manufacturing added 3,000 jobs, and the service and wholesale/retail trade sectors added over 

5,000 jobs, combined. Services and wholesale/retail trade, combined, employed over 20,000 

workers in 1980, or 54 percent of the labor force. Agriculture employed 3,495 workers in 1980, 

or 9 percent of the labor force. 

Year 1990. Between 1980 and 1990, the Taylor LMA experienced a 19 percent increase 

in employment, employing nearly 46,000 workers. Services and wholesale/retail trade, 

combined, added 7,000 new jobs. By 1990, manufacturing employed over 8,000 workers, and 

construction almost 4,000. Agriculture continued to employ 8 percent of the total workforce. By 

1990, 59 percent of all jobs in the Taylor LMA were in services or wholesale/retail trade. The 

0

 5,000

 10,000

 15,000

 20,000

25,000

 30,000

 35,000

1940 1950 1960 1970 1980 1990 2000

LMA# 77 Agriculture Mining Const. Manuf. Tran/Pub.Util. Whole/Ret. Services
383

Decennial Census data show that the Taylor LMA had one of the slowest growing economies 

between 1940 and 1990. Moreover, this is one of the most agricultural dependent LMAs in 

Florida. This dependence on agriculture may explain its lack of growth, relative to other Florida 

LMAs. 

Phase II. Recent Industry Analysis. In this section we explore employment trends in 

the LMA since 1990 (Figure 2). 

 

 Figure 2. Annual Employment, Taylor LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

 The REIS data show that, in 2000, the Taylor LMA was less diversified across all 

industry sectors than most LMAs in Florida. Services accounted for 21 percent of all 

employment, followed by retail trade and government (20%). The government employment rate 

is twice the national rate of 10 percent. Interestingly, manufacturing accounts for 14 percent of 

employment, representing over 8,000 workers (Table1). The manufacturing industries found in 

this LMA include plastics manufacturers, wood products, textiles, food and animal processing, 

and agricultural machinery. 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,0001969

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

 

Agric Mining Const Manuf TPU Wh Trade Ret Trade FIRE Services Govt
384

Table 1 

 Employment by Sector, Taylor LMA: 2000 

Industry Percent 

Agriculture 2.2 

Mining 1.6 

Construction 5.6 

Manufacturing 14.4 

Transportation/Public Utilities 3.5 

Wholesale Trade 3.1 

Retail Trade 17.7 

Finances, Insurance & Real Estate 3.9 

Services 21.6 

Government 19.7 

 Source: U.S. Census Bureau, 2000b. 

 Phase III: Recession Analysis. To test the effects of business cycle recessions on the 

Taylor LMA economy during the last 30 years, we examine the annual trends in employment. 

The growth rates for the Taylor LMA are not comparable to other LMAs in the south Florida 

Gulf of Mexico Region (i.e., the Sarasota and Ft. Myers LMAs). In most years the actual 

employment levels were greater than expected, based on the employment levels in the previous 

three years. However, we see some convergence in these lines for the recession periods in the 

mid-1970s, and the early 1980s and 1990s. Moreover, growth slowed down in the mid-to-late 

1980s, a period in which other LMAs along the Florida Gulf of Mexico experienced significant 

growth. 

In a systems approach to local economic organization, one issue that is particularly 

important is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are 

not as problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employ a moving 

average forecasting model to locate the years that the shocks occur in the Taylor LMA. The 

forecasting procedure includes the following. First, three-year employment moving averages 

(current plus previous two years) are computed. Second, at each year the expected value (threeyear moving average) is subtracted from the observed value. Each of these deviations is squared 

to provide the forecasting error for each year. These squared deviations are summed and 

averaged across all years in the analysis to compute a mean squared error (MSE). We establish a 

‘shock’ for any given year in which the squared deviation for that year is greater than or equal to 

two times the mean squared error for the industry sector in question (Anderson et al., 1990). 

 The forecasting analysis for the Taylor LMA shows that, in the last 30 years, the 

employment growth rates were greatest (i.e., exceeded expectations) in the economic boom of 

the 1990s (Figure 3). Also, despite a lack of economic diversification in the LMA, this analysis 
385

fails to detect significant drop-offs in employment during any of the recession periods during that 

period in question. 

 Figure 3. Employment Forecasting Analysis, Taylor LMA: 1971-1999. 

Phase IV: Socio-Demographic Analysis. The historical and current population data for 

Taylor LMA show that this LMA has grown faster than the national rates since 1970 (Tables 2-

5). That growth rate includes a 25 percent growth rate in the 1990s that was greater than twice 

the national growth rate. In 2000, Caucasians accounted for almost 75 percent of the total 

population, while African-Americans represented 20 percent, and Hispanics comprised less than 

4 percent. 

Table 2 

Population by County, Taylor LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Columbia 16,859 18,216 20,077 25,250 35,399 42,613 56,513 

Hamilton 9,778 8,981 7,705 7,787 8,761 10,930 13,327 

Lafayette 4,405 3,440 2,889 2,892 4,035 5,578 7,022 

Madison 16,190 14,197 14,154 13,481 14,894 16,569 18,733 

Suwannee 17,073 16,986 14,961 15,559 22,287 26,780 34,844 

Taylor 11,565 10,416 13,168 13,641 16,532 17,111 19,256 

LMA Total 75,870 72,236 72,954 78,610 101,908 119,581 149,695 

 Source: U.S. Census Bureau, 2000b. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981

198219831984198519861987198819891990199119921993199419951996199719981999

Forecasting Error 2 X MSE
386

Table 3 

 Percent of White Population, Taylor LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Columbia 62.4 66.4 69.7 74.9 80.0 80.5 77.9 

Hamilton 57.8 57.8 55.4 60.3 61.6 59.4 55.0 

Lafayette 90.1 90.5 88.0 88.4 92.5 83.0 75.2 

Madison 52.2 54.3 52.5 56.2 57.1 57.5 55.4 

Suwannee 67.8 70.6 72.7 76.4 81.7 83.5 81.1 

Taylor 68.1 69.4 75.4 77.4 78.0 80.5 76.9 

LMA % 63.1 65.5 67.2 71.5 75.6 76.2 73.5 

LMA Total 47,908 47,354 49,062 56,207 77,084 91,125 110,137 

 Source: U.S. Census Bureau, 2000b. 

Table 4 

 Percent of Black Population, Taylor LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Columbia 38.6 33.5 30.2 25.0 19.3 18.1 16.8 

Hamilton 42.1 42.2 44.4 39.6 37.7 38.9 37.2 

Lafayette 9.8 10.4 11.9 11.4 7.2 14.1 14.1 

Madison 47.7 45.6 47.5 43.7 42.5 41.8 40.0 

Suwannee 32.1 29.3 27.1 23.5 17.6 14.8 12.0 

Taylor 31.8 30.5 24.5 22.5 21.3 17.8 18.9 

LMA % 36.8 34.4 32.7 28.4 23.7 22.3 20.5 

LMA Total 27,961 24,861 23,860 22,353 24,227 26,695 30,770 

 Source: U.S. Census Bureau, 2000b. 

Table 5 

Percent of Hispanic Population, Taylor LMA: 1970-2000 

County 1970 1980 1990 2000 

Columbia 0.3 1.0 1.1 2.7 

Hamilton 1.2 0.3 2.4 6.3 

Lafayette 0.4 0.8 4.1 9.1 

Madison 0.2 1.0 0.8 3.2 

Suwannee 0.4 1.1 1.9 4.9 

Taylor 0.2 0.4 0.4 1.5 

LMA % 0.4 0.9 1.4 3.7 

LMA Total 318 898 1,724 5,633 

 Source: U.S. Census Bureau, 2000b. 
387

Retirement Age Population. The State of Florida has a large retirement age population. 

In some counties, the percent of the population 65 and older exceeds the national rate of 12 

percent by more than 200 percent. The Taylor LMA is not a retirement age intensive LMA. In 

2000, 14 percent of the Taylor LMA population was over the age of 65, compared to the national 

rate of 12 percent (Table 6). 

Table 6 

Percent of Population Over 65, Taylor LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Columbia 7.5 8.7 9.1 10.2 13.3 14.0 

Hamilton 7.8 10.2 12.0 13.2 11.4 11.0 

Lafayette 7.5 11.7 13.6 12.1 10.7 12.1 

Madison 8.1 9.5 21.1 14.2 14.1 14.6 

Suwannee 7.8 10.7 12.0 13.3 16.9 16.9 

Taylor 8.0 8.0 9.9 12.8 13.1 13.7 

LMA Total 7.8 9.4 10.8 12.3 13.9 14.3 

 Source: U.S. Census Bureau, 2000b. 

Education. The rural nature of this LMA likely affects educational levels in this area. 

There is not a high-end service sector to attract highly educated workers, who tend to migrate to 

urban areas (Rural Sociological Society Task Force, 1993). In 2000, only 10 percent of this 

LMA’s adult population had graduated from college, with no changes between 1990 and 2000. 

Moreover, in 2000, only 71 percent of the adult population had graduated from high school, 

which is considerably fewer than in other southern Florida Gulf of Mexico Region LMAs (Table 

7). 

 
388

Table 7 

 Adult Educational Attainment (age 25+), Taylor LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Columbia 36.9% 19.6% 27.6% 7.6% 8.2% 13,031 

Hamilton 52.3% 15.9% 22.7% 4.1% 5.5% 3,985 

Lafayette 52.6% 14.6% 23.2% 4.7% 4.7% 1,616 

Madison 49.7% 20.1% 18.1% 5.0% 6.9% 6,995 

Suwannee 45.5% 20.8% 22.9% 5.1% 5.5% 8,450 

Taylor 42.9% 20.6% 25.0% 4.9% 6.4% 7,158 

LMA Total 46.0% 20.5% 22.1% 5.0% 6.2% 22,603 

1980 

Columbia 23.2% 17.9% 34.3% 15.2% 9.2% 19,917 

Hamilton 31.6% 19.0% 36.1% 7.4% 5.9% 4,733 

Lafayette 34.2% 11.8% 33.6% 11.8% 8.4% 2,307 

Madison 35.4% 21.0% 25.9% 9.3% 8.2% 8,359 

Suwannee 29.5% 17.1% 36.1% 10.6% 6.5% 13,109 

Taylor 29.1% 18.3% 34.0% 10.0% 8.5% 9,608 

LMA Total 31.0% 18.5% 32.7% 10.0% 7.6% 31,076 

1990 

Columbia 11.9% 19.2% 33.4% 24.5% 11.0% 26,839 

Hamilton 18.3% 23.3% 37.7% 13.6% 7.0% 6,562 

Lafayette 20.0% 21.8% 37.4% 15.5% 5.2% 3,595 

Madison 18.9% 24.5% 29.3% 17.5% 9.7% 10,244 

Suwannee 15.5% 20.6% 37.6% 17.9% 8.2% 17,444 

Taylor 15.1% 22.8% 36.2% 15.9% 9.8% 10,865 

LMA Total 16.3% 22.2% 35.0% 17.2% 9.1% 38,553 

2000 

Columbia 6.7% 18.5% 34.9% 28.8% 10.9% 36,880 

Hamilton 10.5% 26.6% 35.1% 20.5% 7.2% 8,758 

Lafayette 12.6% 19.1% 40.1% 20.9% 7.1% 4,745 

Madison 10.1% 22.4% 34.2% 23.0% 10.2% 12,254 

Suwannee 8.6% 18.1% 38.8% 22.6% 10.5% 23,492 

Taylor 8.9% 21.0% 40.9% 20.2% 8.8% 12,914 

LMA Total 8.5% 19.9% 36.8% 24.7% 9.9% 99,043 

 Source: U.S. Census Bureau, 2000b. 

Finances. Rural governments face special challenges in meeting the demand for local 

services (Johnson et al., 1995). The local government finance data show lower levels of revenue 

in the Taylor LMA than for the more urbanized LMAs to the south (e.g., Tampa Bay-St. 

Petersburg and Sarasota). The data also show no real fluctuations in revenues, taxes, state 
389

transfers from year to year. In addition, the level of per capita debt for local government is very 

low ($1,100 per capita in 1997) and consistent over time (Tables 8-11). 

Table 8 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Taylor LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Columbia $1,848 $2,389 $2,037 $2,515 $2,212 $2,467 

Hamilton $2,077 $2,180 $2,715 $3,796 $3,978 $4,748 

Lafayette $1,706 $2,008 $2,072 $1,757 $2,973 $2,061 

Madison $1,987 $2,074 $1,922 $2,375 $3,181 $2,658 

Suwannee $1,686 $1,905 $1,530 $1,737 $1,903 $1,935 

Taylor $1,804 $2,295 $2,143 $2,189 $3,125 $2,605 

LMA Total $1,499 $2,185 $1,868 $2,371 $2,666 $2,578 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

Total State Revenue, Per Capita (in 1997 adjusted dollars), Taylor LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Columbia $930 $1,068 $967 $1,084 $1,215 $1,221 

Hamilton $1,174 $1,203 $1,248 $2,116 $1,690 $1,205 

Lafayette $1,184 $1,237 $1,118 $1,181 $2,374 $1,410 

Madison $1,206 $1,156 $1,125 $1,273 $1,525 $1,449 

Suwannee $852 $878 $819 $994 $1,142 $1,053 

Taylor $844 $1,142 $841 $1,065 $1,820 $1,062 

LMA Total $980 $1,070 $967 $1,182 $795 $1,198 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Taylor LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Columbia $469 $321 $278 $397 $463 $543 

Hamilton $491 $457 $542 $556 $1,115 $2,265 

Lafayette $345 $282 $325 $345 $318 $372 

Madison $284 $240 $221 $250 $384 $435 

Suwannee $381 $351 $297 $325 $421 $474 

Taylor $463 $375 $358 $531 $774 $896 

LMA Total $416 $335 $312 $392 $539 $710 

 Source: U.S. Census Bureau, 2000a. 

 
390

Table 11 

 Total Debt, Per Capita (in 1997 adjusted dollars), Taylor LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Columbia $839 $801 $593 $657 $988 $1,000 

Hamilton $2,893 $1,458 $892 $2,039 $3,219 $1,671 

Lafayette $660 $430 $1,303 $522 $220 $65 

Madison $142 $245 $927 $1,382 $965 $774 

Suwannee $508 $549 $277 $617 $328 $695 

Taylor $1,076 $653 $4,452 $3,710 $1,645 $2,308 

LMA Total $879 $681 $1,236 $1,318 $1,093 $3,161 

 Source: U.S. Census Bureau, 2000a. 

8. Dixie-Gainesville, Florida: Labor Market Area 

a. Introduction 

This analysis examines historical and current industry and socio-demographic patterns in 

the Dixie-Gainesville LMA. The analysis is divided into several phases. Phase I provides a 

general overview of broad (single-digit) industry patterns in this LMA for decennial census years 

from 1940 to 1990 using Census data. Phase II shows employment patterns in broad (singledigit) industry categories for all years between 1969 and 2000 using Regional Economic 

Information Systems (REIS) data from the Bureau of Economic Analysis. Phase III examines 

the impact of economic recessions on employment levels during the last 30 years. Phase IV is a 

socio-demographic analysis of the LMA. 

b. Setting 

 The Dixie-Gainesville is located north of the Tampa Bay-St. Petersburg LMA in the 

Florida Gulf of Mexico region. The LMA is comprised of the following counties: Alachua, 

Bradford, Dixie, Gilchrist, Levy, and Union (Map 20). Over 320,000 people resided in this 

LMA in 2000. With a year 2000 population of 218,000, Alachua was the most populated county 

in that year. The racial composition of the Dixie-Gainesville LMA is proportional to the national 

representation for Caucasians (73%) in 2000; African-Americans represented nearly 18 percent 

of the population, which is significantly greater than the national rate of 12 percent. Although 

Hispanics only accounted for 4 percent of the population in 2000, their representation in the 

LMA has doubled since 1990. During the 1990s the population of the LMA grew by more than 

23 percent, vastly exceeding the national growth rate of 9 percent. 
391

Map 20. Dixie-Gainesville, Florida Labor Market Area.

Dixie Gainesville Labor Market Area 
392

 c. Unit of Analysis 

Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor Market 

Areas are defined by patterns of transportation to and from work within and across county 

boundaries. Labor Market Areas better represent local social systems and, empirically, local 

economies (Killian and Tolbert, 1993). 

Phase I: General Historical Industry Trends. This section considers general historical 

industry trends for the Dixie-Gainesville LMA (Figure 1). These data are analyzed both crosssectionally and longitudinally in order to gain a full understanding of both the structure of and 

the resulting changes to the Dixie-Gainesville LMA’s primary industries over time. 

 Figure 1. Major Industry Employment, Dixie-Gainesville LMA: 1940-2000 (U.S. 

 Census Bureau, 2000b). 

Year 1940. In 1940, 20,384 people were employed in Dixie-Gainesville LMA. 

Agriculture (37%) and manufacturing (20%) were the leading non-service sectors. 

Wholesale/retail trade, and services accounted for 31 percent of employment in the DixieGainesville LMA; mining employed 157 workers. 

Year 1950. Between 1940 and 1950, total employment in the Dixie-Gainesville LMA 

grew by 26 percent, employing approximately 26,000 workers by 1950. Services and 

wholesale/retail trade employed 45 percent of the workforce, combined; agriculture employed 25 

percent. Manufacturing employed 3,000 people in 1950. 

Year 1960. Between 1950 and 1960, total employment grew by 44 percent, employing 

36,875 workers by 1960. In terms of number of jobs, employment growth was not substantial in 

0

20,000

40,000

60,000

80,000

100,000

120,000

1940 1950 1960

1970 1980 1990 2000

LMA# 79 Agriculture Mining Const.

Manuf. Tran/Pub.Util. Whole/Ret. Services
393

any industry sector, with the exception of services where 10,000 new jobs were added. By 1960, 

services and wholesale/retail trade employed 65 percent of the Dixie-Gainesville LMA 

workforce. Agriculture employed 10 percent of all workers; mining employed 437 workers. 

Year 1970. Total employment in Dixie-Gainesville LMA grew by 62 percent between 

1960 and 1970, employing almost 54,000 people by 1960. Transportation/public utilities (63%), 

construction (45%), and manufacturing (36%) experienced the most growth. Yet, these three 

industry sectors combined to generate less than 5,000 new jobs. Services generated 10,000 new 

jobs. By 1970, 70 percent of all employment in Dixie-Gainesville was concentrated in services 

and wholesale/retail trade. Agriculture employed less than 6 percent of the total work force in 

1970. 

 Year 1980. Between 1970 and 1980, the Dixie-Gainesville LMA employment rate grew 

by 62 percent, employing 87,382 workers by 1980. Over 2,000 jobs were added in construction, 

3,000 in manufacturing, and 1,500 in transportation and public utilities. Services and 

wholesale/retail trade, combined, employed nearly 74 percent of the workforce in 1980, adding 

almost 27,000 new jobs. While employment in agriculture grew by 22 percent between 1970 

and 1980, its share of the labor force declined to 4 percent in 1980. 

Year 1990. Between 1980 and 1990, the Dixie-Gainesville LMA experienced a 30 

percent increase in employment, employing almost 110,000 workers by 1990. Services and 

wholesale/retail trade combined to add 24,000 new jobs. By 1990, manufacturing employed 

over 7,500 workers, and the construction industry employed almost 6,400. By 1990, 78 percent 

of all jobs in Dixie-Gainesville LMA were in services or wholesale/retail trade. Agricultural 

employment was somewhat higher in 1990 (3,855 workers) than in 1980 (3,603 workers). 

Phase II: Recent Industry Analysis. The Dixie-Gainesville LMA was slow-growing 

and dependent on agriculture through 1970. Growth rates increased during the 1980s but at a 

slower pace than other Florida LMAs. In the 1990s, however, the Dixie-Gainesville LMA was 

one of the fastest growing LMAs in the Florida Gulf of Mexico region. In this section we 

explore employment trends from1969-2000, with Table 1 showing the concentration of 

employment in year 2000. Employment grew by 25 percent during the 1990s, but only services, 

construction, and government employment had positive growth rates (Figure 2). 
394

0

10,000

20,000

30,000

40,000

50,000

60,000

196919701971197219731974

1975197619771978

197919801981198219831984198519861987

1988

19891990

1991199219931994199519961997199819992000

Agrica Mining Const Manuf TPU Whol Trade Ret Trade FIRE Services Govt

0

10,000

20,000

30,000

40,000

50,000

60,000

196919701971197219731974

1975197619771978

197919801981198219831984198519861987

1988

19891990

1991199219931994199519961997199819992000

Agrica Mining Const Manuf TPU Whol Trade Ret Trade FIRE Services Govt

 Figure 2. Annual Employment, Dixie-Gainesville LMA: 1969-2000 (U.S. Dept. 

 of Commerce, Bureau of Economic Analysis, 2000). 

In 2000, services and government each accounted for 28 percent of all employment. 

However, the Dixie-Gainesville LMA falls below national percentages on most other industry 

measures e.g., agriculture, manufacturing, construction (Table 1). 

Table 1 

 Employment by Sector, Dixie-Gainesville LMA: 2000 

Industry Percent 

Agriculture 1.5 

Mining 0.2 

Construction 4.4 

Manufacturing 4.6 

Transportation/Public Utilities 2.5 

Wholesale Trade 1.9 

Retail Trade 16.4 

Finances, Insurance & Real Estate 5.5 

Services 28.6 

Government 27.6 

 Source: U.S. Census Bureau, 2000b. 

During the 1990s, the United States government employed 5 percent of the national 

workforce. By 2000, 14 percent of the workforce was employed in some level of government 
395

work. For the Florida Gulf of Mexico LMAs, this percentage was slightly higher—19 percent. 

However, as with other indicators, there is considerable spatial variation in government 

employment among the LMAs. For example, the Pensacola LMA (1%), and the Sarasota LMA 

(1.5%) experienced government employment growth rates lower than the national rate of 5 

percent, while the Panama City LMA experienced a loss of 10 percent. However, Ft. Myers 

(29%), and several of the more rural LMAs (Taylor, Citrus-Marion, and Dixie-Gainesville) 

experienced growth rates in excess of 10 percent, or at least twice the national growth rate. 

Three LMAs show substantial concentration of government employment. In 2000, 23 

percent of the Pensacola LMA, 29 percent of the Dixie-Gainesville LMA, and 32 percent of the 

Tallahassee LMA were employed in federal, state, or local government organizations. In 

Tallahassee LMA, government employment exceeds services employment. These findings are 

not surprising, however. The Pensacola LMA is home to a major naval air station (Naval Air 

Station Pensacola); the University of Florida, a Carnegie Foundation Research I Extensive 

university, is located in Gainesville; and, Tallahassee, the state capitol, boasts two major 

universities (Florida State University and Florida A&M University). These three governmentintensive LMAs are all located along the Florida Gulf Coast. 

Phase III: Recession Analysis. To test the effects of business cycle recessions on the 

Dixie-Gainesville LMA economy during the last 30 years, we examine the annual trends in 

employment. The total annual employment figure, plus the three-year employment moving 

averages, for the Dixie-Gainesville LMA show a linear growth pattern (Figure 3). In most years 

the actual employment levels were greater than expected, based on the employment levels in the 

previous three years. However, we see some convergence in these lines for two recession 

periods: the mid-1970s and early 1990s. 

 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

 Figure 3. Total Employment and Three-year Moving Averages, Dixie-Gainesville LMA: 

 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000).
396

 In a systems approach to local economic organization, one issue of particular importance 

is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are not as 

problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employed a moving 

average forecasting model to locate the years that the shocks occur in the Dixie-Gainesville 

LMA. The forecasting procedure includes the following. First, three-year moving averages 

(current plus previous two years) of employment levels are computed. Second, at each year the 

expected value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). 

 The forecasting analysis for the Dixie-Gainesville LMA shows that, over the last 30 

years, employment growth rates were greatest (i.e., exceeded expectations) during the economic 

booms of the 1980s (Figure 4). Also, the forecasting analysis fails to detect significant drop-offs 

in employment during any of the recession periods over the period in question. One reason for 

the lack of downturn may stem from the concentration of government employment in the LMA, 

which, unlike the private sector, is more recession-proof. 

 Figure 4. Employment Forecasting Analysis, Dixie-Gainesville LMA. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Forecasting Error 2 X MSE
397

Phase IV: Socio-Demographic Analysis. The population data for the Dixie-Gainesville 

LMA show that this region has grown faster than the national rate since 1940 (Tables 2-5). 

Growth rates were particularly pronounced in the 1990s (23%), the 1980s (21%), and the 1970s 

(24%). While those growth rates are substantially lower than those found in other LMAs along 

the Gulf of Mexico in Florida, they are significantly higher than the corresponding national 

growth rates. 

 

Table 2 

 Population by County, Dixie-Gainesville LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Alachua 38,607 57,026 74,074 104,764 151,348 181,596 217,955 

Bradford 8,717 11,457 12,446 14,625 20,023 22,515 26,088 

Dixie 4,277 3,928 4,479 5,480 7,751 10,585 13,827 

Gilchrist 4,250 3,499 2,868 3,551 5,767 9,667 14,437 

Levy 12,550 10,367 10,364 12,756 19,870 25,923 34,450 

Union 7,094 8,906 6,043 8,112 10,166 10,252 13,442 

LMA Total 75,495 95,453 110,274 149,288 214,925 260,538 320,199 

 Source: U.S. Census Bureau, 2000b. 

Table 3 

 Percent of White Population, Dixie-Gainesville LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Alachua 58.5 70.9 73.5 79.0 78.8 77.6 69.6 

Bradford 74.4 75.5 76.9 76.5 73.5 78.7 74.9 

Dixie 92.8 85.7 85.5 83.1 88.1 90.9 87.7 

Gilchrist 85.0 90.1 88.3 91.9 93.2 91.0 88.7 

Levy 61.5 67.8 69.7 74.8 83.3 86.5 83.1 

Union 70.9 63.7 73.2 71.0 69.3 75.5 71.8 

LMA % 65.4 71.6 74.4 78.4 79.5 79.5 73.2 

LMA Total 49,446 68,360 82,055 117,085 170,885 207,240 234,633 

Source: U.S. Census Bureau, 2000b. 
398

Table 4 

 Percent of Black Population, Dixie-Gainesville LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Alachua 41.4 29.0 26.2 20.6 19.1 19.0 19.1 

Bradford 25.5 24.4 23.1 23.3 20.3 20.3 20.5 

Dixie 7.1 14.3 14.4 16.9 11.6 8.7 8.9 

Gilchrist 15.0 9.6 11.4 8.1 6.6 8.4 6.9 

Levy 38.5 34.7 30.2 25.1 16.0 12.3 10.8 

Union 29.1 36.2 26.7 28.4 29.1 23.2 22.6 

LMA % 38.1 28.3 25.4 21.2 18.7 17.8 17.4 

LMA Total 28,789 27,057 28,012 31,698 40,377 46,447 55,963 

 Source: U.S. Census Bureau, 2000b. 

Table 5 

 Percent of Hispanic Population*, Dixie-Gainesville LMA: 1970-2000 

County 1970 1980 1990 2000 

Alachua 2.1 3.3 3.6 5.7 

Bradford 1.3 1.1 1.3 2.4 

Dixie 1.1 0.6 0.7 1.8 

Gilchrist 0.3 1.4 1.6 2.8 

Levy 0.1 1.4 1.0 0.3 

Union 5.9 2.8 3.1 1.1 

LMA % 3.7 3.4 2.3 0.9 

LMA Total 5,584 7,947 5,956 3,076 

 * County-level Census data for Hispanic populations are not available 

 prior to 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The State of Florida has a large retirement age population. 

In some counties, the percent of the population 65 and older exceeds the national rate of 12 

percent by more than 200 percent. The Dixie-Gainesville LMA has a higher retirement 

population than average. In 2000, 15 percent of the population in the Dixie-Gainesville LMA 

was over the age of 65, while the national rate was 12 percent. Two counties, Dixie (a coastal 

county) and Levy both had county age retirement populations of 17 percent each (Table 6). 
399

 Table 6 

 Percent of Population Over 65, Dixie-Gainesville LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Alachua 6.0 6.3 6.3 7.0 7.4 9.5 

Bradford 7.0 8.4 8.5 10.4 12.0 12.9 

Dixie 7.0 7.9 8.7 12.1 17.5 17.0 

Gilchrist 7.0 10.1 11.2 10.8 13.9 13.6 

Levy 9.4 12.2 13.3 15.6 18.9 17.9 

Union 4.4 6.9 6.6 5.9 7.3 7.2 

LMA Total 7.1 9.8 10.4 12.1 15.7 15.0 

 Source: U.S. Census Bureau, 2000b. 

Education. The notable concentration of retirement age population (Dixie and Levy 

Counties) and the presence of a large state flagship university (University of Florida) likely 

affect educational levels within the LMA. In 2000, 28 percent of the adults in this LMA had 

earned at least a college degree (the national rate was 24%). Moreover, the percent of the adults 

with a college degree was significantly higher than the national rate for all census years. This 

high rate of education attainment most likely reflects the influence of a large land grant 

university in the LMA (Table 7). 

Table 7 

 Adult Educational Attainment, Taylor LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Alachua 24.3% 15.8% 24.5% 12.2% 23.1% 46,861 

Bradford 39.4% 24.1% 25.7% 6.3% 4.4% 7,837 

Dixie 47.2% 18.4% 24.9% 3.7% 5.6% 2,779 

Gilchrist 49.5% 18.9% 23.4% 5.4% 2.7% 1,975 

Levy 43.7% 21.8% 23.7% 5.5% 5.1% 7,148 

Union 40.2% 25.8% 24.6% 5.9% 3.3% 4,708 

LMA Total 30.6% 18.1% 24.5% 9.9% 16.6% 71,308 

1980 

Alachua 13.2% 11.2% 26.3% 19.8% 29.4% 75,817 

Bradford 25.8% 20.6% 33.7% 12.2% 7.6% 12,048 

Dixie 29.6% 20.9% 35.3% 9.1% 4.9% 4,675 

Gilchrist 26.0% 17.4% 36.1% 13.3% 7.1% 3,337 

Levy 25.1% 21.0% 34.9% 11.1% 7.7% 12,391 

Union 22.0% 21.0% 32.8% 18.2% 5.8% 6,371 

LMA Total 17.3% 14.4% 29.0% 17.3% 21.8% 114,639 

 
400

Table 7 

Adult Educational Attainment, Taylor LMA: 1970-2000 (continued) 

1990 

Alachua 6.0% 11.2% 21.7% 26.4% 34.6% 102,647 

Bradford 14.3% 20.7% 36.8% 20.0% 8.0% 15,088 

Dixie 16.8% 25.4% 33.0% 18.5% 6.1% 7,175 

Gilchrist 15.8% 21.2% 33.6% 21.9% 7.4% 5,956 

Levy 14.1% 23.0% 35.0% 19.5% 8.2% 17,612 

Union 11.6% 20.6% 35.9% 23.8% 7.9% 6,701 

LMA Total 8.8% 14.9% 26.2% 24.3% 25.5% 155,179 

2000 

Alachua 3.7% 8.2% 20.2% 19.3% 38.7% 123,524 

Bradford 7.2% 18.5% 40.1% 25.6% 8.4% 17,883 

Dixie 11.2% 22.8% 39.4% 19.7% 6.7% 9,643 

Gilchrist 7.8% 19.7% 36.0% 26.9% 9.4% 8,866 

Levy 7.2% 18.8% 38.2% 25.0% 10.6% 24,030 

Union 7.4% 20.0% 38.8% 26.1% 7.5% 9,363 

LMA Total 5.2% 12.3% 26.9% 27.5% 27.9% 193,309 

Source: U.S. Census Bureau, 2000b. 

Finances. The local government finance data for the Dixie-Gainesville LMA indicate 

two important trends (Tables 8-11). First, revenues and debt have increased steadily (in real 

dollars) since 1972. For the LMA as a whole, the per capita local government debt load in 1997 

exceeded $3,000 per capita. This is comparable for the per capita debt load in Tampa Bay-St. 

Petersburg. However, one county had a debt load significantly higher than all other counties in 

the LMA –– Alachua, home to the University of Florida. We expect that the higher debt and 

revenues reflect spending on local schools (which represents the vast majority of local 

government spending). 

Table 8 

 Total Revenue, Per Capita (in 1997 adjusted dollars), 

Dixie-Gainesville LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Alachua $2,036 $2,807 $2,575 $2,927 $2,410 $3,338 

Bradford $1,558 $1,813 $1,781 $1,700 $1,619 $2,367 

Dixie $1,576 $1,897 $1,536 $1,629 $1,822 $2,055 

Gilchrist $2,069 $1,945 $1,426 $1,675 $1,788 $2,200 

Levy $1,400 $1,719 $1,532 $1,915 $2,104 $2,146 

Union $1,878 $2,460 $2,248 $2,561 $2,230 $2,981 

 Source: U.S. Census Bureau, 2000a. 
401

Table 9 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), 

Dixie-Gainesville LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Alachua $602 $758 $677 $832 $907 $868 

Bradford $869 $843 $769 $912 $1,018 $1,256 

Dixie $1,058 $1,237 $1,016 $1,046 $1,084 $1,142 

Gilchrist $1,484 $1,398 $932 $1,067 $1,163 $1,126 

Levy $722 $829 $724 $950 $1,221 $1,009 

Union $742 $637 $578 $935 $1,126 $1,697 

LMA Total $681 $800 $706 $871 $973 $974 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), 

Dixie-Gainesville LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Alachua $462 $427 $438 $540 $654 $690 

Bradford $328 $256 $197 $233 $311 $377 

Dixie $351 $312 $315 $329 $458 $428 

Gilchrist $375 $336 $273 $323 $347 $390 

Levy $436 $363 $296 $439 $501 $593 

Union $138 $123 $136 $199 $229 $230 

LMA Total $425 $382 $378 $472 $573 $609 

 Source: U.S. Census Bureau, 2000a. 

Table 11 

 Total Debt, Per Capita (in 1997 adjusted dollars), 

Dixie-Gainesville LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Alachua $1,788 $2,161 $3,567 $4,415 $5,344 $5,208 

Bradford $1,137 $767 $1,758 $801 $760 $726 

Dixie $1,179 $440 $383 $409 $68 $90 

Gilchrist $676 $576 $188 $156 $197 $296 

Levy $913 $914 $618 $325 $427 $564 

Union $650 $860 $565 $293 $186 $291 

LMA Total $1,545 $1,746 $2,754 $3,220 $3,847 $3,696 

 Source: U.S. Census Bureau, 2000a. 
402

9. Citrus-Marion, Florida: Labor Market Area 

 a. Introduction 

This analysis examines historical and current industry patterns in the Citrus-Marion LMA 

(078). The analysis is divided into several phases. Phase I provides a general overview of broad 

(single-digit) industry patterns in this LMA for decennial census years from 1940 to 1990 using 

Census data. Phase II shows employment patterns in broad (single-digit) industry categories for 

all years between 1969 and 2000 using Regional Economic Information Systems (REIS) data 

from the Bureau of Economic Analysis. Phase III examines the impact of economic recessions 

on employment levels during the last 30 years. Phase IV is a socio-demographic analysis of the 

LMA. 

b. Setting 

 The Citrus-Marion LMA is located north of Tampa Bay-St. Petersburg LMA in the 

Florida Gulf of Mexico region. It is comprised of Citrus County, Marion County, and the City of 

Ocala (Map 21). Over 375,000 people resided in this LMA in 2000. The largest county, Marion, 

had a year 2000 population of 258,000 residents; the vast majority of these residents are 

Caucasian (84% in 2000). African-Americans represented 8 percent of the population in 2000; 

Hispanics 5 percent. The population of the Citrus-Marion LMA grew by more than 30 percent in 

1990, vastly exceeding the national growth rate of 9 percent. 

c. Unit of Analysis 

Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993). 

Phase I. General Historical Industry Trends. The following section explores general 

historical industry trends for the Citrus-Marion LMA (Figure 1). These data are analyzed both 

cross-sectionally and longitudinally in order to gain a full understanding of both the structure of 

the Citrus-Marion LMA at different points in time and the changes in the LMA’s primary 

industries over time. 

Year 1940. In 1940, 10,170 people were employed in the Citrus-Marion LMA. 

Agriculture (38%) and manufacturing (11%) were the leading non-service sectors. Services and 

wholesale/retail trade accounted for 38 percent of employment in the Citrus-Marion LMA in 

1940. The mining sector employed 258 workers. 

Year 1950. Between 1940 and 1950 total employment grew by 34 percent in the CitrusMarion LMA, employing approximately 14,000 workers in 1950. The combined share of total 

employment for services and wholesale/retail trade was 43 percent; agriculture accounted for 

twenty-five percent of employment. Manufacturing employed 1,785 people. 
403

Map 21. Citrus-Marion, Florida Labor Market Area.
404

 Figure 1. Major Industry Employment, Citrus-Marion LMA: 1940-2000 (U.S. 

 Census Bureau, 2000b). 

Year 1960. Between 1950 and 1960, total employment within the LMA grew by 49 

percent, and levels of total employment were greater than 20,334 workers in 1960. In terms of 

number of jobs, employment growth was not substantial in any industry sector. By 1960, the 

services and wholesale/retail trade sectors employed 59 percent of the Citrus-Marion LMA 

workforce, but these sectors accounted for less than 13,000 jobs. While agriculture lost 800 jobs 

during the 1950s, it employed 13 percent of all workers in 1960. Mining employed 371 workers.

 Year 1970. Total employment in Citrus-Marion LMA grew by 45 percent between 1960 

and 1970, employing almost 30,000 people by 1970. Growth was greatest in construction (68%), 

transportation/public utilities (65%), and manufacturing (57%). Yet despite impressive growth, 

these three industry sectors generated less than 5,000 new jobs, combined. By 1970, 62 percent 

of all employment in the Citrus-Marion LMA was concentrated in services and wholesale/retail 

trade. Agriculture still employed almost 10 percent of the total work force. 

Year 1980. Between 1970 and 1980, the Citrus-Marion LMA total employment rate 

grew by 99 percent, employing 58,958 workers by 1980. Over 3,000 jobs were added in 

construction, 3,000 in manufacturing, and 3,000 in transportation and public utilities. The 

service and wholesale/retail trade sectors added almost 20,000 jobs in 1980, employing nearly 

40,000 workers, or 63 percent of the labor force. While employment in agriculture grew by 42 

percent between 1970 and 1980, agriculture’s share of the labor force declined to 7 percent in 

1980. 

Year 1990. Between 1980 and 1990, the Citrus-Marion LMA experienced a 78 percent 

increase in employment, employing nearly 100,000 workers in 1990. Wholesale/retail trade and 

services combined added 320,000 new jobs. By 1990, manufacturing employed over 12,000 

workers, and the construction industry employed almost 10,000. By 1990, 66 percent of all jobs 

0

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405

in Citrus-Marion LMA were in services or wholesale/retail trade. Agricultural employment 

increased in 1990 (5,162 workers) from 1980 (3,916 workers). 

Phase II: Recent Industry Analysis. The historical Census data show that the CitrusMarion LMA was agriculturally-based until 1970 (Figure 2). In the 1990s, employment in the 

Citrus-Marion LMA grew by 33 percent. It was one of the fastest growing LMAs in the Florida 

Gulf of Mexico region in that decade. 

0

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1970197119721973197419a71976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret Trade FIRE Services Govt

 

 Figure 2. Annual Employment, Citrus-Marion LMA: 1969-2000 (U.S. Dept. 

 of Commerce, Bureau of Economic Analysis, 2000). 

Services accounted for 27 percent of all employment, and retail trade employed 20 

percent of the LMA workforce in 2000 (Table 1). Interestingly, manufacturing accounts for 

nearly 9 percent of LMA employment, employing over 13,000 workers. There were 237 

manufacturing establishments in Marion County in 2000. These establishments include food 

processors, textile manufacturing plants, and wood products production (including furniture). In 

addition, the county also has six mobile home manufacturing establishments, three paper 

manufacturing facilities, eight chemical plants, and 36 fabricated metal products manufacturing 

operations. 
406

Table 1 

 Employment by Sector, Citrus-Marion LMA: 2000 

Industry Percent 

Agriculture 2.6 

Mining 0.2 

Construction 7.3 

Manufacturing 8.8 

Transportation/Public Utilities 4.4 

Wholesale Trade 3.1 

Retail Trade 20.0 

Finances, Insurance & Real Estate 7.5 

Services 27.2 

Government 12.4 

 Source: U.S. Census Bureau, 2000b. 

Phase III: Recession Analysis. To test the effects of business cycle recessions on the 

Citrus-Marion LMA economy since 1970, we examined the annual trends in employment. The 

total annual employment data for the Citrus-Marion LMA, together with the three-year 

employment moving averages, show a linear growth pattern (Figure 3). In most years the actual 

employment levels were greater than the expected employment levels, based on the employment 

levels in the previous three years. However, we see some convergence in these lines for two 

recession periods: the mid-1970s and early 1990s. While some LMAs in Florida experienced a 

slow-down in growth during the 1980-1982 recession years, the Citrus-Marion LMA appears to 

have not suffered that fate. 

 In a systems approach to local economic organization, one issue of particular importance 

is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are not as 

problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know when the shocks come in these industries. We employed a moving average 

forecasting model to locate the years that the shocks occur in Citrus-Marion LMA. The 

forecasting procedure includes the following. First, three-year moving averages (current plus 

previous two years) are computed. Second, at each year the expected value (three-year moving 

average) is subtracted from the observed value. Each of these deviations is squared to provide 

the forecasting error for each year. These squared deviations are summed and averaged across 

all years in the analysis to compute a mean squared error (MSE). We establish a ‘shock’ for any 

given year in which the squared deviation for that year is greater than or equal to two times the 

mean squared error for the industry sector in question (Anderson et al., 1990). 
407

 Figure 3. Total Employment and Three-year Moving Averages, Citrus-Marion LMA: 

 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 

 The forecasting analysis shows that, since 1970, employment growth rates were greatest 

(i.e., exceeded expectations) in the economic booms of the 1980s and 1990s (Figure 4). It also 

failed to detect significant drop-offs in employment during any of the recession periods over the 

period in question. 

0

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196919701971197219731974197519761977

1978

197919801981198219831984198519871988198919901991199219931994199519961997199819992000
408

 Figure 4. Employment Forecasting Analysis, Citrus-Marion LMA: 1971-1999. 

Phase IV: Socio-Demographic Analysis. The historical and current population data for 

the Citrus-Marion LMA indicates that this region grew at rates faster than the nation since 1940 

(Tables 2-5). Particularly rapid growth occurred during the 1970s (100%), the 1980s (63%), the 

1990s (30%). 

 In 2000, the Citrus-Marion LMA population was 85 percent white, 8 percent AfricanAmericans and less than 5 percent Hispanic. However, this most recent enumeration represents a 

notable shift in this LMA’s racial composition. Between 1940 and 1970, African-Americans 

represented between 41 and 23 percent of the LMA population. Between 1980 and 1990, 

however, the African-American population represented less than 12 percent of the total and 

declined to 9 percent in 2000. Given the extraordinary growth rates for this LMA, this profile 

change is most likely the result of massive in-migration of Caucasians. Furthermore, while the 

Hispanic population currently comprises only 5 percent of the population, it reflects a significant 

growth rate since 1990 (160% growth). 

Table 2 

Population by County, Citrus-Marion LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Citrus 5,846 6,111 9,268 19,196 54,703 93,515 118,085 

Marion 31,243 38,187 51,616 69,030 122,488 194,833 258,916 

LMA Total 37,089 44,298 60,884 88,226 177,191 288,348 377,001 

Source: U.S. Census Bureau, 2000b. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982

19831984198519861987198819891990199119921993199419951996199719981999

Forecasting Error 2 X MSE
409

Table 3 

 Percent of White Population, Citrus-Marion LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Citrus 70.9 74.5 82.1 90.4 96.0 96.4 93.0 

Marion 56.8 61.8 65.0 73.7 82.6 85.6 80.4 

LMA % 58.5 63.5 67.6 77.3 86.7 89.0 84.3 

LMA Total 21,721 28,149 41,200 68,278 153,751 256,913 318,060 

Source: U.S. Census Bureau, 2000b. 

Table 4 

 Percent of Black Population, Citrus-Marion LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Citrus 29.0 25.4 17.7 9.5 3.2 2.1 2.3 

Marion 43.7 38.2 34.8 26.1 16.6 12.7 11.3 

LMA % 41.4 36.4 32.2 22.5 12.4 9.3 8.5 

LMA Total 15,368 16,143 19,648 19,892 22,124 26,906 32,082 

Source: U.S. Census Bureau, 2000b. 

Table 5 

Percent of Hispanic Population*, Citrus-Marion LMA: 1970-2000 

County 1970 1980 1990 2000 

Citrus 0.9 1.4 1.5 2.6 

Marion 1.2 2.0 2.9 6.0 

LMA % 1.2 1.8 2.5 5.0 

LMA Total 1,052 3,190 7,170 18,757 

 * County-level Census data for Hispanics are not available before 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The Citrus-Marion LMA is a retirement age intensive 

LMA. In 2000, 27 percent of its population was over the age of 65, which is twice the national 

rate of 12 percent (Table 6). The coastal community of Citrus County had a particularly high 

rate of retirees (33%). Since 1960, this county has had high rates of retirement age persons. 

This sub-population has contributed significantly to the LMA’s high growth rates. 
410

Table 6 

Percent of Population Over 65, Citrus-Marion LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Citrus 11.5 16.9 26.0 29.0 31.4 32.2 

Marion 8.9 10.6 13.1 17.0 22.1 24.5 

LMA Total 9.3 11.5 15.9 20.7 25.1 27.0 

 Source: U.S. Census Bureau, 2000b. 

Education. The large concentration of retirees may explain the lower level of 

educational attainment in the LMA. Older peoples generally tend to have less education because 

labor market entry requirements, once at a minimum, have been increasing steadily over time. 

Only 14 percent of the adults in the Citrus-Marion LMA had earned a college degree in 2000 

(Table 7). This attainment level is significantly less than the national rate of 24 percent. The 

LMA also has lagged behind on high school graduation rates in recent years. In 2000, 22 percent 

of the LMA had not graduated from high school. 

Table 7 

 Adult Educational Attainment (age 25+), Citrus-Marion LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Citrus 35.9% 21.6% 27.1% 9.3% 6.0% 13,289 

Marion 31.9% 20.8% 29.5% 10.3% 7.3% 39,099 

LMA Total 32.9% 21.0% 28.9% 10.0% 7.0% 52,388 

1980 

Citrus 21.9% 22.8% 36.6% 11.5% 7.0% 40,583 

Marion 20.7% 19.8% 36.3% 13.6% 3.6% 78,617 

LMA Total 21.1% 20.8% 36.4% 12.9% 8.7% 119,200 

1990 

Citrus 10.0% 21.4% 36.6% 21.5% 10.4% 72,054 

Marion 9.9% 20.4% 34.6% 23.4% 11.5% 137,001 

LMA Total 9.9% 20.1% 35.3% 22.7% 11.1% 209,055 

2000 

Citrus 5.4% 16.3% 38.0% 27.1% 13.1% 92,594 

Marion 6.1% 15.7% 35.9% 28.5% 13.7% 187,187 

LMA Total 5.8% 15.9% 36.6% 28.0% 13.5% 279,781 

 Source: U.S. Census Bureau, 2000b. 

 Finances. The Citrus-Marion LMA has two trends that could create pressures for local 

governments: a retirement age population, and an expanding manufacturing sector (Johnson et 

al., 1995). The local government finance data indicate very similar levels of per capita revenues 
411

and debts as the Tampa Bay-St. Petersburg and Sarasota LMAs (Tables 8-11). For example, in 

1997, per capita revenues in the Sarasota LMA were $2,943. In Tampa Bay-St. Petersburg, the 

corresponding figure is $2,818. In the Citrus-Marion LMA it was $2,087. The real difference is 

the effect of the growth during the 1980s. Recall from the forecasting analysis that two years 

stand out as very rapid growth: 1985 and 1986. The local government data in Tables 8-11 show 

that revenues increased, both from the state and tax receipts. In addition, per capita local 

government debt increased to over $5,000 per capita (in 1997 dollars). This rapid shift in local 

government finances is not seen in most of the other Florida Gulf of Mexico LMAs, and reminds 

one of the effects in Louisiana oil and gas LMAs (particularly Lafayette). However, the effect 

was short-lived. By 1992 (and again in 1997) per capita debt levels were cut in half. 

Table 8 

Total Revenue, Per Capita (in 1997 adjusted dollars), 

Citrus-Marion LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Citrus $1,292 $1,498 $1,478 $2,093 $1,751 $1,829 

Marion $1,935 $2,019 $2,068 $2,055 $1,856 $2,204 

LMA Total $1,775 $1,866 $1,883 $5,316 $1,822 $2,083 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), 

Citrus-Marion LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Citrus $487 $660 $454 $484 $523 $487 

Marion $704 $669 $710 $7,503 $816 $815 

LMA Total $650 $667 $630 $1,710 $721 $709 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), 

Citrus-Marion LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Citrus $428 $437 $509 $606 $768 $762 

Marion $414 $392 $322 $4,210 $536 $521 

LMA Total $418 $405 $381 $1,235 $612 $598 

 Source: U.S. Census Bureau, 2000a. 
412

Table 11 

 Total Debt, Per Capita (in 1997 adjusted dollars), Citrus-Marion LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Citrus $661 $744 $2,955 $4,280 $2,809 $3,725 

Marion $423 $520 $517 $11,863 $1,872 $1,451 

LMA Total $482 $586 $1,281 $5,604 $2,177 $2,184 

 Source: U.S. Census Bureau, 2000a. 

10. Tampa Bay-St. Petersburg, Florida: Labor Market Area 

a. Introduction 

This analysis examines historical and current industry and socio-demographic patterns in 

LMA 067: Tampa Bay-St. Petersburg. The analysis is divided into several phases. Phase I 

provides a general overview of broad (single-digit) industry patterns in this LMA for decennial 

census years from 1940 to 1990 using Census data. Phase II shows employment patterns in 

broad (single-digit) industry categories for all years between 1969 and 2000 using Regional 

Economic Information Systems (REIS) data from the Bureau of Economic Analysis. Phase III 

examines the impact of economic recessions on employment levels during the last thirty years. 

Phase IV is a socio-demographic analysis of the LMA. 

b. Setting 

 Tampa-St. Petersburg is the largest metropolitan region along the Florida Gulf of Mexico 

LMAs. It is comprised of the following counties: Hernando, Hillsborough, Pasco, and Pinellas 

(Map 22). As of the year 2000, over 2 million people resided in this LMA, with almost 1 million 

people residing in Hillsborough. The Tampa-St. Petersburg LMA population is predominantly 

Caucasian (81%), with African-Americans and Hispanics comprising approximately 10 percent, 

each. During the 1990s this LMA’s population grew 16 percent, exceeding the national growth 

rate of 9 percent. 

 c. Unit of Analysis 

 Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993).
413

Map 22. Tampa Bay-St. Petersburg, Florida Labor Market Area.
414

 Phase I: General Historical Industry Trends. The general historical industry trends for 

the Tampa-St. Petersburg LMA are discussed next (Figure 1). These data are analyzed both 

cross-sectionally and longitudinally in order to gain a more complete understanding of both the 

structure of and the resulting changes to the Tampa-St. Petersburg LMA’s primary industries 

over time. 

 

Figure 1. Major Industry Employment, Tampa Bay-St. Petersburg LMA: 1940- 2000 

 (U.S. Census Bureau, 2000b). 

Year 1940. In 1940, the Tampa-St. Petersburg LMA employed over 88,000 people. 

Approximately 12 percent were employed in agriculture, and 21 percent were employed in 

manufacturing. Wholesale/retail trade, and services employed over 50 percent of the Tampa-St. 

Petersburg LMA labor force. The mining sector employed 344 workers in 1940. 

Year 1950. Between 1940 and 1950 total employment in the Tampa-St. Petersburg LMA 

grew by 51 percent, employing approximately 134,000 workers by 1950. Agriculture 

employment levels remained steady between 1940 and 1950, but its share of the total labor force 

fell to 8 percent. Construction experienced the greatest relative growth in the 1940s, increasing 

153 percent from 6,000 workers in 1940 to almost 15,000 workers in 1950. Furthermore, in 

1950, construction employed over 11 percent of the total labor force, compared to 6 percent in 

1940. There was considerable employment growth in wholesale/retail trade (16,000 new jobs) 

and services (10,000 new jobs) between 1940 and 1950, but the relative share of total 

employment for these sectors remained relatively stable at 53 percent. 

Year 1960. Between 1950 and 1960, total employment in this LMA grew by 88 percent, 

employing about 253,000 workers in 1960. Construction (81% growth) and manufacturing (81% 

0

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400,000

500,000

600,000

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1940 1950 1960 1970 1980 1990 2000

LMA# 67 Agriculture Mining Const. Manuf. Tran/Pub.Util. Whole/Ret. Services
415

growth) were two major growth categories. The 1950s also witnessed the emergence of services 

and wholesale/retail trade as the leading industries, with these two industries employing 60 

percent of the Tampa-St. Petersburg LMA workforce in 1960. 

Year 1970. Between 1960 and 1970, total employment in the Tampa-St. Petersburg 

LMA grew by 46 percent, employing some 360,000 in 1970. Agricultural employment remained 

steady at nearly 12,000 workers, while mining employment reached 2,000 workers in 1970. The 

greatest growth was in services (63%), where 60,000 new jobs were added. All other industries 

added jobs during the 1960s, but two stand out: manufacturing (16,000 new jobs) and 

transportation/communication/public utilities (8,000 new jobs). 

Year 1980. Between 1970 and 1980, the total employment rate in the Tampa-St. 

Petersburg LMA grew by 70 percent, employing 627,449 workers in 1980. The largest growth 

rates were in services (85%), transportation/public utilities (80%), wholesale/retail trade (65%) 

and construction (60%). Agriculture grew by 35 percent in the 1970s, increasing its share of 

total employment to 3 percent. By 1980, two-thirds of all jobs in the Tampa-St. Petersburg LMA 

were in services and wholesale/retail trade. However, there was still a substantial manufacturing 

presence in 1980, with 14 percent of the labor force employed in 86,000 manufacturing jobs. 

Year 1990. The Tampa-St. Petersburg LMA experienced some of the national economic 

growth characteristic of the 1980s. Between 1980 and 1990, its total employment grew by 47 

percent (+300,000 new jobs), employing some 900,000 people by 1990. Each industry sector 

experienced growth during the 1980s, and all but mining experienced growth rates of over 10 

percent. Services (59%), wholesale/retail trade (49%), transportation/public utilities (49%), and 

agriculture (45%) led the way. Unlike other GOMR LMAs with oil and gas related economies 

that experienced contractions during the 1980s (e.g., Beaumont, Lafayette), manufacturing 

employment in the Tampa-St. Petersburg LMA expanded by 19 percent. 

Phase II: Recent Industry Analysis. In the second phase of the industry analysis we 

examine recent employment trends in this LMA. The historical Census data show that TampaSt. Petersburg LMA grew substantially from 1940 to 1990 (Figure 2). 

 In 2000, the REIS data show that this LMA is diversified across all industry sectors, with 

the service sector employing the majority of workers (39%). Government and manufacturing 

both employed slightly less than 7 percent of the labor force. Still, among the Florida Gulf of 

Mexico LMAs, total manufacturing employment is greatest in the Tampa Bay-St. Petersburg 

LMA, employing almost 90,000 workers in 2000 (Table 1). This LMA currently includes a very 

diverse representation of manufacturing facilities, including 117 food processing/manufacturing 

establishments, 109 chemical producing facilities, 76 wood products manufacturing facilities, 

126 plastics manufacturers, 32 primary metal plants, 377 fabricated structural metal facilities, 

208 machine manufacturing plants, 147 computer and machine manufacturing establishments, 

108 transportation equipment manufacturing establishments (including 38 shipbuilding/repairing 

establishments), and over 300 medical/laboratory equipment manufacturing plants (U.S. Census 

Bureau, 2000a). Since 1970, the United States’ economy has experienced several recessions: 

following the oil embargo and the energy crises (1973-1976); following the high interest rates 

that followed rapid inflation growth (1980-1982); and (1989-1992) (Heilbroner and Milberg, 

1999; Mencken and Singelmann, 1998). 
416

 Figure 2. Annual Employment, Tampa-St. Petersburg LMA: 1970-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

Table 1 

 Employment by Sector, Tampa Bay-St. Petersburg LMA: 2000 

Industry Percent 

Agriculture 1.3 

Mining 1.0 

Construction 5.2 

Manufacturing 6.6 

Transportation/Public Utilities 4.2 

Wholesale Trade 4.7 

Retail Trade 16.2 

Finances, Insurance & Real Estate 8.8 

Services 38.7 

Government 9.8 

 Source: U.S. Census Bureau, 2000b. 

0

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200,000

300,000

400,000

500,000

600,000

1970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt
417

 Phase III: Recession Analysis. We examined annual employment trends in the Tampa 

Bay-St. Petersburg economy. The total annual employment data, together with the three-year 

employment moving averages, show remarkable growth patterns for this LMA (Figure 3). With 

two notable exceptions (1974 and 1991), actual employment levels were greater than expected, 

as based on the employment levels in the previous three years. 1974 and 1991 were recession 

years. However, even during those periods, the expected employment levels never exceeded the 

observed employment levels. 

 Figure 3. Total Employment and Three-year Moving Averages, Tampa Bay-St. 

 Petersburg LMA: 1969-2000 (U.S. Dept. of Commerce, Bureau of 

 Economic Analysis, 2000). 

 

 In a systems approach to local economic organization, one issue that is particularly 

important is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are 

not as problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employed a moving 

average forecasting model to locate the years that the shocks occur in the Tampa-St. Petersburg 

LMA. The forecasting procedure includes the following. First, three-year employment moving 

averages (current plus previous two years) are computed. Second, at each year the expected 

value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1969197019711972197319741975197619771978197919801981

1982198319841985198619871988198919901991199219931994199519961997199819992000
418

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). 

 Our forecasting analysis demonstrated that the employment growth rates within the 

Tampa Bay-St. Petersburg LMA (for the period between 1970 and 2000) were highest in the 

mid-1980s during a period of national economic expansion. Also, the forecasting analysis (not 

shown here) fails to detect significant drop-offs in employment during any of the recession 

periods over the period in question. We maintain that the highly diversified and generally 

healthy nature of the Tampa Bay-St. Petersburg LMA economy makes it relatively recession 

proof, at least to the point where one would expect significant downturns in employment. 

Phase IV: Socio-Demographic Analysis. Historically, Caucasians have been overrepresented in the Tampa Bay-St. Petersburg LMA. Indeed, Caucasians have comprised nearly 

90 percent of the LMA’s total population since 1960 (Tables 2-5). In 1990, Caucasians 

comprised 88 percent of the Tampa Bay-St. Petersburg LMA, while comprising 75 percent on a 

national level. This small decline is attributable to an increase in the Hispanic population, which 

grew from 6 percent of the population to 10 percent in one decade (+87%). During this same 

decade, the African-American population increased 33 percent. While African-Americans 

outnumbered Hispanics by almost 30,000 in 1990, there were more Hispanics in the LMA than 

African-Americans by 2000. The number of Hispanics increased in all Florida GOMR LMAs 

between 1990 and 2000 (data not available). 

 Table 2 

 Population by County, Tampa Bay-St. Petersburg LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Hernando 5,641 6,693 11,205 17,004 44,469 101,115 130,802 

Hillsboro. 180,148 249,894 397,788 490,265 646,960 834,054 998,948 

Pasco 13,981 20,529 36,785 75,955 193,643 281,131 344,765 

Pinellas 91,852 159,246 374,665 522,329 728,531 851,659 921,482 

LMA Total 291,622 436,362 820,443 1,105,553 1,613,603 2,067,959 2,395,997 

Source: U.S. Census Bureau, 2000b. 

Table 3 

 Percent of White Population, Tampa Bay-St. Petersburg LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Hernando 71.7 77.0 79.0 85.8 93.1 94.9 92.8 

Hillsboro. 82.4 84.6 85.9 86.1 84.8 82.8 75.1 

Pasco 83.7 86.4 88.9 94.9 96.6 96.2 93.7 

Pinellas 82.4 88.2 91.1 91.6 91.5 90.5 85.8 

LMA % 82.2 85.9 88.3 89.3 89.5 88.4 82.9 

LMA Total 239,949 375,023 724,862 987,359 1,444,283 1,828,737 1,986,503 

Source: U.S. Census Bureau, 2000b. 
419

Table 4 

 Percent of Black Population, Tampa Bay-St. Petersburg LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Hernando 28.3 22.9 20.1 14.1 6.3 3.8 4.0 

Hillsboro. 17.5 15.3 13.9 13.6 13.3 13.1 14.9 

Pasco 16.2 13.5 11.0 4.9 2.0 1.9 2.0 

Pinellas 17.5 11.7 8.8 8.1 7.5 7.6 8.9 

LMA % 17.6 14.0 11.5 10.4 9.1 8.9 10.2 

LMA Total 51,583 61,204 95,003 115,589 148,058 184,087 244,457 

Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The Tampa Bay-St. Petersburg is a retirement age-intensive 

LMA. In 2000, 19 percent of the Tampa Bay-St. Petersburg LMA population was over the age 

of 65. Nevertheless, there was considerable variation in this percentage within the LMA. Only 

Hillsborough County (11%) had a retirement age rate on par with the national rate (12%), while 

three other counties had retirement age rates at least twice the national rate (Table 5). 

Table 5 

 Percent of Population Over 65, Tampa Bay-St. Petersburg LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Hernando 14.6 14.1 26.9 25.4 30.7 29.8 

Hillsboro. 12.7 9.8 14.3 12.3 12.2 11.6 

Pasco 19.6 20.0 40.7 32.2 32.3 26.8 

Pinellas 30.5 24.9 41.2 30.3 26.0 22.6 

LMA Total 20.0 17.0 29.0 23.0 22.0 19.0 

 Source: U.S. Census Bureau, 2000b. 

Education. In general, the Tampa Bay-St. Petersburg LMA population has near average 

educational attainment levels. In 2000, the percentage of adults in this LMA who had earned a 

college degree (22%) was close to the national rate of 24 percent. Within the LMA, 

Hillsborough County (25%) leads the way in terms of college graduates, while Hernando County 

(12.7%) and Pasco County (13%) lag behind (Table 6). The Tampa Bay-St. Petersburg LMA 

also had more high school graduates (81.5%) in 2000 than most other Florida Gulf of Mexico 

Region LMAs. 
420

Table 6 

 Adult Educational Attainment (age 25+), Tampa Bay-St. Petersburg LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Hernando 37.2% 21.9% 26.5% 8.2% 6.0% 10,606 

Hillsboro. 28.9% 21.8% 30.4% 10.1% 8.6% 268,178 

Pasco 35.3% 22.4% 28.3% 8.9% 4.9% 54,475 

Pinellas 26.5% 20.4% 30.3% 12.6% 10.0% 365,274 

LMA Total 28.2% 21.1% 30.1% 11.3% 9.0% 698,533 

1980 

Hernando 19.5% 20.5% 37.8% 13.5% 8.6% 31,629 

Hillsboro. 17.2% 16.9% 35.0% 16.3% 14.5% 384,098 

Pasco 22.2% 21.9% 36.8% 12.1% 6.8% 143,523 

Pinellas 15.4% 16.3% 36.0% 17.6% 14.6% 524,492 

LMA Total 17.0% 17.4% 35.8% 16.3% 13.3% 1,083,742 

1990 

Hernando 8.5% 21.0% 37.3% 18.1% 9.7% 76,525 

Hillsboro. 8.8% 15.5% 28.8% 19.4% 20.2% 545,020 

Pasco 10.5% 22.5% 35.9% 16.9% 9.1% 212,612 

Pinellas 6.5% 15.3% 31.6% 21.1% 18.5% 637,871 

LMA Total 8.0% 16.7% 31.5% 19.7% 17.3% 1,472,028 

2000 

Hernando 5.3% 16.2% 37.7% 28.0% 12.7% 99,082 

Hillsboro. 6.3% 12.9% 26.6% 29.0% 25.1% 653,841 

Pasco 5.9% 16.5% 36.7% 27.6% 13.1% 255,472 

Pinellas 3.4% 12.0% 29.6% 31.4% 22.9% 686,094 

LMA Total 5.2% 13.3% 30.0% 29.7% 21.6% 1,694,489 

Source: U.S. Census Bureau, 2000b. 

Finances. The local government financial data show that, in terms of general revenue, 

per capita levels increase from 1972 to 1997 (Tables 7-10). However, tax revenues fell off in 

1992, possibly due to the recession. The most notable trend at the LMA level is that per capita 

debt for local government finance doubled (in real dollars) between 1982 and 1987, and 

remained at those levels through 1997. Within the LMA, Hernando County has incurred more 

debt between 1980 and 2000 than its neighbors. 
421

Table 7 

 Total Revenue, Per Capita (in 1997 adjusted dollars), 

Tampa Bay-St. Petersburg LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hernando $1,492 $2,775 $2,542 $2,083 $3,605 $2,648 

Hillsboro. $1,835 $2,256 $2,117 $2,867 $3,906 $3,282 

Pasco $751 $1,221 $1,170 $1,315 $1,863 $1,830 

Pinellas $1,328 $1,695 $1,796 $2,260 $2,415 $2,718 

LMA Total $1,499 $1,899 $1,868 $2,371 $2,666 $2,818 

 Source: U.S. Census Bureau 2000a. 

Table 8 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), 

Tampa Bay-St. Petersburg LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hernando $544 $628 $487 $2,083 $3,605 $761 

Hillsboro. $508 $706 $645 $2,867 $1,008 $999 

Pasco $361 $484 $448 $1,315 $694 $676 

Pinellas $388 $491 $451 $2,260 $594 $596 

LMA Total $440 $582 $529 $640 $795 $781 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), 

Tampa Bay-St. Petersburg LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hernando $400 $1,090 $734 $700 $1,627 $1,100 

Hillsboro. $636 $557 $551 $719 $991 $949 

Pasco $256 $372 $337 $422 $671 $561 

Pinellas $548 $574 $569 $770 $102 $1,020 

LMA Total $558 $557 $538 $701 $599 $931 

 Source: U.S. Census Bureau, 2000a. 
422

Table 10 

 Total Debt, Per Capita (in 1997 adjusted dollars), 

Tampa Bay-St. Petersburg LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Hernando $639 $549 $393 $11,340 $10,858 $5,994 

Hillsboro. $1,759 $1,994 $1,829 $4,624 $4,432 $3,923 

Pasco $202 $681 $1,006 $1,453 $2,443 $1,887 

Pinellas $843 $946 $1,453 $2,709 $2,676 $2,436 

LMA Total $1,176 $1,339 $1,512 $3,683 $3,702 $3,161 

 Source: U.S. Census Bureau, 2000a. 

11. Sarasota, Florida: Labor Market Area 

a. Introduction 

 

This analysis examines historical and current industry and socio-demographic patterns in 

LMA 069: Sarasota. The analysis is divided into several phases. Phase I provides a general 

overview of broad (single-digit) industry patterns in this LMA for decennial census years from 

1940 to 1990 using Census data. Phase II shows employment patterns in broad (single-digit) 

industry categories for all years between 1969 and 2000 using REIS data from the Bureau of 

Economic Analysis. Phase III examines the impact of economic recessions on employment 

levels during the last 30 years. Phase IV is a socio-demographic analysis of the LMA. 

b. Setting 

 This LMA is south of Tampa Bay-St. Petersburg along the Florida Gulf of Mexico. The 

Sarasota LMA is comprised of the following counties: Charlotte, DeSoto, Manatee and Sarasota 

(Map 23). Over 760,000 people resided in the LMA in 2000. Sarasota, the largest county in this 

LMA, had a year 2000 population of 300,000 people. The racial composition was predominantly 

Caucasian (85%) in 2000, with Hispanics comprising 6 percent and African-Americans 5 percent 

of the total 2000 population. This LMA’s population grew by 22 percent during the 1990s, 

exceeding the national growth rate of 9 percent. 

 c. Unit of Analysis 

 Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993).
423

Map 23. Sarasota, Florida Labor Market Area.
424

Phase I: General Historical Industry Trends. These data should be analyzed both 

cross-sectionally and longitudinally in order to gain a more complete understanding of both the 

structure of and the resulting changes to the Sarasota LMA’s primary industries over time 

(Figure 1). 

 

Figure 1. Major Industry Employment, Sarasota LMA: 1940-2000 (U.S. Census 

 Bureau, 2000b). 

Year 1940. In 1940, the Sarasota LMA employed over 16,825 people. Agriculture 

(28%) and manufacturing (12%) were the leading non-service sectors. Wholesale/retail trade, 

and services accounted for 48 percent of employment. The mining sector employed 26 workers 

in 1940. 

Year 1950. Between 1940 and 1950, total employment in the Sarasota LMA grew by 42 

percent, employing 23,900 workers in 1950. Agriculture employment levels grew by 10 percent, 

but agriculture’s share of the total labor force fell to 21 percent. Construction had growth rates 

in excess of 100 percent, with a relative share of total employment of 11 percent in 1950. 

Transportation/public utilities had a growth rate in excess of 60 percent, with 500 new jobs 

added in this sector between 1940 and 1950. Services and wholesale/retail trade both grew by 40 

percent in the 1940s, with a combined share of total employment of 50 percent in 1950. 

Year 1960. Between 1950 and 1960, total employment grew by 115 percent, employing 

upward of 51,000 workers in 1960. Agricultural employment levels declined 14 percent, with its 

relative share falling to 8 percent. Services (247%), construction (161% growth), and 

manufacturing (118% growth) were three major growth categories, with a combined net increase 

of 23,000 jobs. By 1960, services and wholesale/retail trade employed 63 percent of the Sarasota 

LMA workforce. 

Year 1970. Between 1960 and 1970, total employment in the Sarasota LMA grew by 49 

percent, employing 76,000 people by 1970. Agricultural employment declined by 2 percent, and 

0

20,000

40,000

60,000

 80,000

100,000

120,000

140,000

160,000

180,000

200,000

1940 1950 1960 1970 1980 1990 2000

Agriculture Mining Const. Manuf. Tran/Pub.Util. Whole/Ret. Services
425

agriculture’s share of the total labor force was less than 6 percent. Growth was very evenly 

distributed among transportation/public utilities (69%), manufacturing (56%), services (65%) 

and wholesale/retail trade (56%). Manufacturing added 3,000 new jobs during the 1960s. 

Year 1980. Between 1970 and 1980, the Sarasota LMA total employment rate grew by 

98 percent, employing 153,029 workers in 1980. Every sector experienced employment growth 

greater than 20 percent. The leaders were: construction (116%), services (102%), 

wholesale/retail trade (93%), transportation/public utilities (134%), and manufacturing (89%). 

In 1980, manufacturing employed over 15,000 workers; construction employed 17,000. 

Year 1990. Between 1980 and 1990, the Sarasota LMA experienced a 62 percent 

increase in employment, employing almost 250,000 in 1990. Growth was evenly distributed 

among a variety of categories: manufacturing (53%), construction (35%), wholesale/retail trade 

(66%), transportation/public utilities (50%), and services (74%). By 1990, 71 percent of total 

employment was concentrated in services and wholesale/retail trade. However, manufacturing 

employment grew by 52 percent between 1980 and 1990, employing over 23,000 workers by 

1990. 

Phase II: Recent Industry Analysis. The historical Census data show that the Sarasota 

LMA grew substantially between 1940 and 1990. There were no hints of an economic downturn 

in any of these data (Figure 2). 

 Figure 2. Annual Employment, Sarasota LMA: 1969-2000 (U.S. Dept. of Commerce 

 Bureau of Economic Analysis, 2000). 

However, because the Decennial Census data may not capture fully any cycles between Census 

years, we further explore Florida GOM employment trends from 1990 to 2000. 

0

20,000

40,000

60,000

80,000

100,000

140,000

160,000

180,000

200,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt
426

 In 2000, the REIS data show that the Sarasota LMA is diversified across all industry 

sectors, with the service sector employing the majority of workers (42%) (Table 1). Government 

and manufacturing employment is about one-half the national figure of 14 percent. Nevertheless, 

the Sarasota LMA’s manufacturing industry grew by 18 percent and added 4,000 new jobs 

between 1990 and 2000. By 2000, that industry employed more than 20,000 workers. The 

agricultural industry also experienced growth between 1990 and 2000, increasing by 93 percent 

and adding 7,000 new jobs (Hodges et al., 2001). 

Table 1 

 Employment by Sector, Sarasota LMA: 2000 

Industry Percent 

Agriculture 3.6 

Mining 0.2 

Construction 6.1 

Manufacturing 5.8 

Transportation/Public Utilities 2.1 

Wholesale Trade 2.6 

Retail Trade 17.5 

Finances, Insurance & Real Estate 8.0 

Services 41.1 

Government 7.9 

 Source: U.S. Census Bureau, 2000b. 

 

 Phase III: Recession Analysis. Since 1970, the United States’ economy has experienced 

several recessions: following the oil embargo and the energy crises (1973-1976); following the 

high interest rates that followed rapid inflation growth (1980-1982); and (1989-1992) 

(Heilbroner and Milberg, 1999; Mencken and Singelmann, 1998). According to ecological 

theory, recessions represent a contraction in resources for, or inputs into, local economies (see 

Kasarda and Irwin, 1991; Mencken and Singelmann, 1998; Singelmann et al., 1993; and Hawley, 

1986)

To test the effects of business cycle recessions on the Sarasota LMA economy since 

1970, we examined the annual trends in employment. The total annual employment figures for 

the Sarasota LMA, combined with three-year employment moving averages, reveal remarkable 

growth patterns (Figure 3). In almost every year the actual employment levels were greater than 

expected, based on the employment levels in the previous three years. There was one exception: 

1974-1975. That was a recession period, but even the expected employment levels never 

exceeded the observed employment levels. 
427

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

19691970

19711972

1973

19741975

1976

1977

1978

19801981

1982

1983198419851986

1987

19881989

19901991

1992

1993

1994

19951996

19971998

19992000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

19691970

19711972

1973

19741975

1976

1977

1978

19801981

1982

1983198419851986

1987

19881989

19901991

1992

1993

1994

19951996

19971998

19992000

 Figure 3. Total Employment and Three-year Moving Averages, Sarasota LMA: 

 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 

 In a systems approach to local economic organization, one issue that is particularly 

important is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are 

not as problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems.

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employed a moving 

average forecasting model to locate the years that the shocks occur in the Sarasota LMA. The 

forecasting procedure includes the following. First, three-year moving averages (current plus 

previous two years) of employment levels are computed. Second, at each year the expected 

value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). 

These data show that, since 1970, employment growth rates were highest in the mid1990s, a period of national economic expansion. Also, the forecasting analysis fails to detect 

significant drop-offs in employment during any of the recession periods over the period in 

question. We maintain that the highly diversified and generally large nature of the Sarasota 
428

LMA economy makes it relatively recession proof (despite a presence of agricultural 

employment), at least to the point where one would expect significant downturns in employment 

(Figure 4). 

2 X MSE

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

199

1995

1996

1997

1998

1999

Forecasting Error 2 X MSE

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

199

1995

1996

1997

1998

1999

Forecasting Error 2 X MSE

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

199

1995

1996

1997

1998

1999

Forecasting Error 2 X MSE

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

199

1995

1996

1997

1998

1999

Forecasting Error 2 X MSE

 Figure 4. Employment Forecasting Analysis, Sarasota LMA: 1971-1999. 

Phase IV: Socio-Demographic Analysis. Sarasota was one of the fastest growing 

LMAs in the nation between 1950 and 2000. Between 1970 and 1980, its population grew at 65 

percent; during the 1980s, it grew 45 percent. Growth rates of this magnitude indicate extensive 

immigration into the LMA. Yet despite immigration, Sarasota is one of the least ethnically 

diverse LMAs in the southern region of Florida. In 2000, 86 percent of the total population was 

white; Blacks and Hispanics represent only about 6 percent, or half of the national rate of 12 

percent (Tables 2-5). 

Table 2 

 Population by County, Sarasota LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Charlotte 3,663 4,286 12,594 27,559 58,460 110,975 141,627 

DeSoto 7,792 9,242 11,683 13,060 19,039 23,865 32,209 

Manatee 26,098 34,704 69,168 97,115 148,442 211,707 264,002 

Sarasota 16,106 28,827 76,895 120,413 202,251 277,776 325,957 

LMA Total 53,659 77,059 170,340 258,147 428,192 624,323 763,795 

Source: U.S. Census Bureau, 2000b. 
429

Table 3 

Percent of White Population, Sarasota LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Charlotte 81.6 84.3 94.2 97.0 97.2 94.9 90.4 

DeSoto 79.5 78.3 78.2 79.5 79.1 80.1 62.6 

Manatee 73.6 77.1 84.8 88.0 89.8 89.8 80.5 

Sarasota 77.7 84.0 90.2 93.1 94.0 94.6 89.7 

LMA % 76.2 80.3 87.5 90.9 92.3 92.5 85.4 

LMA Total 40,923 61,858 149,080 234,790 395,346 577,663 653,034 

Source: U.S. Census Bureau, 2000b. 

Table 4 

Percent of Black Population, Sarasota LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Charlotte 18.3 15.4 5.7 2.7 1.8 3.7 4.2 

DeSoto 20.4 21.6 21.6 20.0 18.7 15.7 12.5 

Manatee 26.4 22.7 15.1 11.7 9.0 7.8 8.0 

Sarasota 22.2 15.9 9.3 6.7 5.1 4.3 4.0 

LMA % 23.7 19.6 12.4 8.8 6.6 5.8 5.8 

LMA Total 12,725 15,163 21,113 22,873 28,382 36,307 44,413 

Source: U.S. Census Bureau, 2000b. 

Table 5 

Percent of Hispanic Population*, Sarasota LMA: 1970-2000 

County 1970 1980 1990 2000 

Charlotte 1.6 1.2 2.1 3.3 

DeSoto 1.3 3.0 8.0 25.0 

Manatee 1.4 2.1 4.4 9.3 

Sarasota 1.6 1.4 2.1 4.3 

LMA % 1.5 1.7 3.1 6.7 

LMA Total 3,855 7,352 19,502 51,368 

 * County-level Census data for Hispanic populations are not available 

 prior to 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The State of Florida has a large retirement age population. 

In some counties, the percent of the population 65 and older exceeds the national rate of 12 

percent by more than 200 percent. Sarasota is a retirement age-intensive LMAs. In 2000, 30 

percent of its population was over the age of 65 (Table 6). Moreover, within the LMA, there was 
430

little variation in these numbers. Each county had higher percentages of retirement age 

population than existed at the state level. This high rate of retirement age population extends 

back to 1960. Part of the great in-migration to the Sarasota LMA has been among predominantly 

Caucasian retirement age persons. 

Table 6 

 Percent of Population Over 65, Sarasota LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Charlotte 14.7 20.8 35.0 33.9 33.8 34.7 

DeSoto 10.3 14.8 15.7 16.1 19.3 19.4 

Manatee 13.6 21.9 30.3 27.0 28.0 24.9 

Sarasota 11.9 18.3 28.6 30.0 32.2 31.4 

LMA Total 12.6 19.7 29.7 28.9 30.6 29.3 

 Source: U.S. Census Bureau, 2000b. 

Education. The number of college educated persons within this LMA matches the 

national trends for most Census years. In 2000, 24 percent of the adults in Sarasota LMA had a 

college degree, as did the U.S. population. Moreover, in 2000, 83 percent of the adult population 

had graduated from high school (Table 7). The data for education show that Sarasota LMA is on 

par with national attainment trends, and is even slightly higher than other LMAs in the Gulf of 

Mexico region. 

Table 7 

 Adult Educational Attainment (age 25+), Sarasota LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

Total 

1970 

Charlotte 26.3% 20.7% 32.9% 11.3% 8.8% 21,152 

DeSoto 42.5% 21.5% 24.6% 6.4% 4.8% 7,923 

Manatee 28.1% 19.2% 30.5% 12.4% 9.6% 67,482 

Sarasota 19.6% 16.5% 34.0% 15.5% 14.2% 85,551 

LMA Total 24.5% 18.2% 32.2% 13.5% 11.4% 182,108 

 1980 

Charlotte 15.3% 17.9% 38.3% 15.6% 12.7% 45,574 

DeSoto 27.4% 22.0% 33.1% 9.3% 8.2% 11,517 

Manatee 16.5% 16.9% 38.0% 16.0% 12.4% 104,102 

Sarasota 12.5% 14.0% 36.7% 18.9% 17.7% 150,154 

LMA Total 14.8% 15.9% 37.2% 17.1% 14.8% 311,347 
431

Table 7 

 Adult Educational Attainment (age 25+), Sarasota LMA: 1970-2000 (continued) 

1990 

Charlotte 7.0% 17.2% 37.9% 18.7% 13.4% 87,427 

DeSoto 18.8% 26.7% 30.7% 12.4% 7.5% 16,171 

Manatee 8.1% 16.3% 34.6% 19.4% 15.4% 156,377 

Sarasota 5.6 % 13.1% 31.7% 21.2% 21.9% 217,375 

LMA Total 7.1% 15.3% 33.8% 19.9% 17.8% 477,310 

2000 

Charlotte 4.1% 13.7% 35.6% 28.9% 17.5% 113,071 

DeSoto 19.9% 17.0% 35.3% 19.8% 8.4% 21,222 

Manatee 5.6% 12.9% 31.9% 28.7% 20.7% 192,789 

Sarasota 3.3% 9.5% 30.1% 29.5% 27.4% 256,802 

LMA Total 5.2% 12.7% 34.6% 22.9% 24.5% 539,242 

 Source: U.S. Census Bureau, 2000b. 

Finances. The retirement age population may have extensive implications for local 

government finances, particularly since the vast majority of local government revenues are for 

school funding. The local government finance data for Sarasota are very similar to the levels of 

per capita revenues and debts as Tampa Bay-St. Petersburg (Tables 8-11). For example, in 1997, 

per capita revenues in Sarasota LMA were $2,943. In Tampa Bay-St. Petersburg the 

corresponding figure was $2,818. There is also very little fluctuation over time. The retirement 

concentration effect predicted by some (Johnson et al., 1995) is not found in these data. 

Table 8 

 Total Revenue, Per Capita (in 1997 adjusted dollars), Sarasota LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Charlotte $1,130 $1,378 $1,335 $1,594 $1,978 $2,248 

DeSoto $1,379 $2,156 $1,895 $2,046 $2,067 $2,176 

Manatee $1,676 $2,232 $2,211 $2,451 $2,340 $2,376 

Sarasota $1,755 $1,890 $1,857 $2,415 $2,978 $3,524 

LMA Total $1,638 $1,959 $1,906 $2,277 $2,543 $2,943 

 Source: U.S. Census Bureau, 2000a. 
432

Table 9 

 Total State Revenue, Per Capita (in 1997 adjusted dollars), Sarasota LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Charlotte $496 $279 $308 $316 $377 $400 

DeSoto $599 $1,190 $735 $1,118 $1,045 $1,021 

Manatee $544 $586 $578 $604 $604 $689 

Sarasota $337 $376 $299 $385 $389 $364 

LMA Total $443 $477 $415 $477 $484 $505 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

 Total Tax Revenue, Per Capita (in 1997 adjusted dollars), Sarasota LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Charlotte $455 $735 $624 $703 $950 $1,008 

DeSoto $404 $435 $388 $467 $591 $606 

Manatee $480 $525 $565 $763 $895 $959 

Sarasota $687 $697 $625 $846 $1,023 $1,108 

LMA Total $572 $629 $606 $779 $950 $1,020 

 Source: U.S. Census Bureau, 2000a. 

Table 11 

 Total Debt, Per Capita (in 1997 adjusted dollars), Sarasota LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Charlotte $1,620 $912 $444 $1,697 $2,380 $2,800 

DeSoto $769 $971 $717 $483 $237 $346 

Manatee $1,846 $2,185 $2,522 $5,299 $3,335 $2,820 

Sarasota $1,298 $869 $901 $2,335 $2,787 $2,886 

LMA Total $1,507 $1,346 $1,389 $3,165 $2,801 $2,754 

 Source: U.S. Census Bureau, 2000a. 
433

12. Ft. Myers, Florida: Labor Market Area 

a. Introduction 

 

 This analysis examines historical and current industry and socio-demographic patterns in 

the Ft. Myers LMA. The analysis is divided into several phases. Phase I provides a general 

overview of broad (single-digit) industry patterns in this LMA from 1940 to 1990 for decennial 

census years using Census data. Phase II shows employment patterns in broad (single-digit) 

industry categories for all years between 1969 and 2000 using REIS data from the Bureau of 

Economic Analysis. Phase III examines the impact of economic recessions on employment 

levels during the last 30 years. Phase IV is a socio-demographic analysis of the LMA. 

b. Setting 

 The Ft. Myers LMA is south of the Tampa Bay-St. Petersburg and Sarasota LMAs along 

the Florida Gulf of Mexico. The Ft. Myers LMA contains Collier and Lee Counties (Map 24). 

Over 625,000 people resided in the LMA in 2000. Lee was the largest county, with over 

400,000 residents. The racial composition of the LMA is largely Caucasian (79% in 2000). 

However, there are more than twice as many Hispanics (13%) as African-Americans (5%) in 

2000. During the 1990s the population of the LMA grew by more than 40 percent, vastly 

exceeding the national growth rate of 9 percent. 

 c. Unit of Analysis 

 Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993). 

Phase I: General Historical Industry Trends. The following section explores general 

historical industry trends for the Ft. Myers LMA (Figure 1). These data are analyzed both crosssectionally and longitudinally in order to gain a more complete understanding of both the 

structure of and the resulting changes to the Ft. Myers LMA’s primary industries over time.

Year 1940. In 1940, only 6,700 people were employed in the Ft. Myers LMA. 

Agriculture (22%) was the dominant non-service sectors, followed by manufacturing (17%). 

Wholesale/retail trade, and services accounted for 45 percent of employment in the Ft. Myers 

LMA. The mining sector employed four workers in 1940. 

Year 1950. Between 1940 and 1950, total employment in the Ft. Myers LMA grew by 

43 percent, with 9,600 employed in 1950. Agriculture employment levels grew by 29 percent, 

but the relative share of employment in this sector declined to 34 percent. Several sectors had 

very high growth rates, including construction (99%) and wholesale/retail trade (68%). 

Agriculture was the dominant non-service/trade industry with 21 percent of total employment. 

The combined share of total employment for services and wholesale/retail trade was 57 percent 

in 1950. 
434

Map 24. Ft. Myers, Florida Labor Market Area.
435

 Year 1960. Between 1950 and 1960, total employment grew by 154 percent, with 

roughly 24,000 workers employed in 1960. Agricultural employment levels increased by 79 

percent, but relative shares of total employment fell further to 15 percent. Services (309%), 

transportation/public utilities (121% growth), and construction (233%) were three major growth 

categories, with a combined net increase of almost 9,000 jobs. By 1960, services and 

wholesale/retail trade sectors employed 56 percent of the Ft. Myers LMA workforce. 

Year 1970. Total employment in the Ft. Myers LMA grew by 103 percent between 1960 

and 1970, employing 50,000 people in 1970. Agricultural employment increased by 10 percent, 

but the relative share of total employment fell to 8 percent. Growth was substantial in a number 

of sectors: services (144%), construction (109%), transportation/public utilities (131%), and 

wholesale/retail trade (120%) all experienced significant job increases. By 1970, 63 percent of 

all employment in the Ft. Myers LMA was concentrated in services and wholesale/retail trade. 

Year 1980. Total employment grew by 127 percent between 1970 and 1980, employing 

some 113,000 workers in 1980. Manufacturing (183%), transportation/public utilities (113%), 

services (134%), and construction (105%) all experienced tremendous growth rates. Eight 

thousand jobs were added in construction, and 27,000 jobs were added in the service sector. In 

1980, over 5 percent of the Ft. Myers LMA’s total work force was employed in agriculture, 

making it one of the most agricultural intensive LMAs in Florida. Services and wholesale/retail 

trade combined to employ almost 70,000 workers in 1980, or 67 percent of the labor force. 

Year 1990. The Ft. Myers LMA experienced an 87 percent increase in employment 

between 1980 and 1990, employing nearly 200,000 workers in 1990. Services and 

wholesale/retail trade combined to add 70,000 new jobs. By 1990, manufacturing employed 

over 12,000 workers, and the construction industry employed over 25,000. In addition, in 1990, 

agriculture employed 5 percent of the total labor force in Ft. Myers LMA, while services or 

wholesale/retail trade employed 70 percent. 

 

 Figure 1. Major Industry Employment, Ft. Myers LMA: 1940-2000 (U.S. 

 Census Bureau, 2000b). 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1940 1950 1960 1970 1980 1990 2000

Agricult. Mining Const. Manuf TPU Whol. Trade Ret. Trade Services
436

Phase II: Recent Industry Analysis. In 2000, the REIS data show that the Ft. Myers 

LMA is less diversified across all industry sectors than either the Sarasota or Tampa Bay-St. 

Petersburg LMAs. While there are comparatively fewer workers employed in services (33%) in 

Ft. Myers than other LMAs, the representation of employment in other key industry sectors, 

particularly manufacturing (3%) make the LMA more dependent upon services and related 

industries (retail trade, finance, insurance and real estate). Manufacturing employment is 

relatively new to the Ft. Myers LMA, which accounts for the 22 percent growth (2,000 new 

manufacturing jobs) the region experienced during the 1990s (Figure 2). 

 

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1969197019711972

1973197419751976197719781979

198019811982198319841985

1986

19871988198919901991

199219931994199519961997

199819992000

Agric Mining Const Manuf. TPU Whol. Trade Ret. Trade FIRE Services Govt.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1969197019711972

1973197419751976197719781979

198019811982198319841985

1986

19871988198919901991

199219931994199519961997

199819992000

Agric Mining Const Manuf. TPU Whol. Trade Ret. Trade FIRE Services Govt.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1969197019711972

1973197419751976197719781979

198019811982198319841985

1986

19871988198919901991

199219931994199519961997

199819992000

Agric Mining Const Manuf. TPU Whol. Trade Ret. Trade FIRE Services Govt.

 Figure 2. Annual Employment, Ft. Myers LMA: 1969-2000 (U.S. Dept. of 

 Commerce, Bureau of Economic Analysis, 2000). 

Agriculture employment expanded in the Ft. Myers LMA. In 2000, agriculture employed 

slightly more of the labor market than did manufacturing (Table 1). 
437

Table 1 

Employment by Sector, Ft. Myers LMA: 2000 

 

Industry Percent 

Agriculture 3.2 

Mining 0.3 

Construction 9.4 

Manufacturing 3.1 

Transportation/Public Utilities 3.5 

Wholesale Trade 2.9 

Retail Trade 20.2 

Finances, Insurance & Real Estate 10.3 

Services 32.9 

Government 10.5 

 Source: U.S. Census Bureau, 2000b. 

Phase III: Recession Analysis. The total annual total employment figures for the Ft. 

Myers LMA, combined with three-year employment moving averages, show remarkable growth 

patterns (Figure 3). In almost every year the actual employment levels were greater than 

expected, based on the employment levels in the previous three years. There are two exceptions: 

1974-1975 and 1991-1992. These are recession periods, but even the expected employment 

levels never exceeded the observed employment levels. Moreover, we fail to see declines in 

actual employment that are present in other Gulf of Mexico LMAs, and in Louisiana’s oil and 

natural gas regions. 

In a systems approach to local economic organization, one issue of particular importance 

is the impact of “shocks” on a social system. Slow, gradual growth and/or decline are not as 

problematic for a social system as are shocks. Shocks come when systems experience 

unanticipated growth (such as “boomtowns”) or decline. Gradual growth and/or decline allow 

equilibrium-seeking social systems to absorb the changes, to reallocate and redistribute resources 

and population. Shocks, on the other hand, create disruptions in a social system. These 

disruptions can manifest in a number of local fiscal and social problems. 

 In order to understand the benefits and burdens of certain industries to a system, it is 

important to know the timing of the industry shocks. In our analysis, we employed a moving 

average forecasting model to locate the years that the shocks occur in the Ft. Myers LMA. The 

forecasting procedure includes the following. First, three-year moving averages (current plus 

previous two years) of employment levels are computed. Second, at each year the expected 

value (three-year moving average) is subtracted from the observed value. Each of these 

deviations is squared to provide the forecasting error for each year. These squared deviations are 

summed and averaged across all years in the analysis to compute a mean squared error (MSE). 

We establish a “shock” for any given year in which the squared deviation for that year is greater 

than or equal to two times the mean squared error for the industry sector in question (Anderson 

et al., 1990). 
438

I

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

 Figure 3. Total Employment and Three-year Moving Averages, Ft. Myers LMA: 

 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 

 2000). 

 These data show that, between 1970 and 2000, employment growth rates were highest in 

the late 1980s, at the end of a national economic expansion. Also, the forecasting analysis fails 

to detect significant drop-offs in employment during any of the recession periods over the period 

in question. We maintain that the highly diversified and generally large nature of the Ft. Myers 

LMA make the economy relatively recession proof (despite a presence of agricultural 

employment), at least to the point where one would expect significant downturns in employment. 
439

 Figure 4. Employment Forecasting Analysis, Ft. Myers LMA: 1971-1999. 

Phase IV: Socio-Demographic Analysis. The population data show that Ft. Myers was 

one of the fastest growing LMAs in the nation since 1950 (Tables 2-5). Between 1970 and 1980, 

population grew 103 percent, and, between 1980 and 1990, it grew 67 percent. During the 

1990s, the growth rate was four times the national growth rate. Large growth rates imply 

extensive in-migration. 

 In 2000, Caucasians accounted for almost 80 percent of the total Ft. Myers population, 

while African-Americans represented about 6 percent, or half of the national rate. In this same 

year, Hispanics comprised 13 percent of the LMA population. The data in Table 5 show that the 

Hispanic population increased significantly from 1970 to 2000, suggesting that a portion of the 

population growth documented in Table 2 came from this group. 

Table 2 

 Population by County, Ft. Myers LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Collier 5,102 6,488 15,753 38,040 85,971 152,099 251,377 

Lee 17,488 23,404 54,539 105,216 205,266 335,113 440,888 

LMA Total 22,590 29,892 70,292 143,256 291,237 487,212 692,265 

 Source: U.S. Census Bureau, 2000b. 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982

19831984198519861987198819891990199119921993199419951996199719981999

Forecasting Error 2 X MSE
440

Table 3 

 Percent of White Population, Ft. Myers LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Collier 64.2 69.4 84.4 91.4 87.8 91.5 73.8 

Lee 77.3 79.9 84.2 88.3 90.5 91.3 81.9 

LMA % 74.4 77.6 84.3 89.1 89.7 91.3 79.0 

LMA Total 16,809 23,212 59,259 127,691 261,422 445,178 546,956 

 Source: U.S. Census Bureau, 2000b. 

Table 4 

 Percent of Black Population, Ft. Myers LMA: 1940-2000 

County 1940 1950 1960 1970 1980 1990 2000 

Collier 31.9 27.9 14.7 8.3 5.1 4.5 4.3 

Lee 22.6 25.0 15.6 11.5 7.9 6.5 6.3 

LMA % 24.7 21.7 15.3 10.7 7.1 5.9 5.6 

LMA Total 5,584 6,500 10,820 15,329 20,712 28,969 39,019 

 Source: U.S. Census Bureau, 2000b. 

 Table 5 

 Percent of Hispanic Population, Ft. Myers LMA: 1970-2000 

County 1970 1980 1990 2000 

Collier 9.6 10.7 13.2 19.6 

Lee 2.1 2.8 4.4 9.5 

LMA % 4.1 5.2 7.2 13.2 

LMA Total 5,889 15,111 35,000 91,338 

 *County-level Census data for Hispanic populations are not available 

 prior to 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. The Ft. Myers LMA is a retirement age intensive LMA. In 

2000, 25 percent of the population in the Ft. Myers LMA was over the age of 65 (twice the 

national rate), and both Lee and Collier Counties had higher than average percentages of 

retirement age population (Table 6). The Ft. Myers LMA has experienced a high rate of inmigration of retirement age populations since 1970. The extensive retirement age population 

could have important implications for local government finances, particularly since the vast 

majority of local government revenues go toward school funding. 
441

 Table 6 

Percent of Population Over 65, Ft. Myers LMA: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Collier 5 8 14 19 16 24 

Lee 10 13 19 22 25 25 

LMA Total 9 12 17 21 22 25 

 Source: U.S. Census Bureau, 2000b. 

Education. Table 7 shows the educational attainment data for the Ft. Myers LMA. 

These data show that the figures for persons with some college or more within the Ft. Myers 

LMA match the national trends for most Census years. In 2000, 24 percent of the adults in the 

Ft. Myers LMA held college degrees; the same percentage as the U.S. population. Moreover, in 

2000, high school graduates equaled 82 percent of the adult population; this percentage is 

slightly higher than is found in the other LMAs in this region. 

 

Table 7 

 Educational Attainment of Adults (age 25+), Ft. Myers LMA: 1970-2000 

County 0-8 

Years 

Some 

High 

School 

High 

School 

Diploma 

Some 

College, 

No Degree 

BA/BS 

or More 

1970 

 Collier 25.3% 16.3% 30.3% 12.6% 15.5% 

 Lee 25.6% 20.3% 32.1% 12.0% 10.0% 

 LMA Total 25.5% 19.3% 31.6% 12.2% 11.3% 

1980 

 Collier 14.9% 13.9% 35.5% 17.2% 18.4% 

 Lee 15.4% 17.3% 37.6% 13.3% 13.3% 

 LMA Total 15.2% 16.3% 37.0% 16.6% 14.8% 

1990 

 Collier 8.0% 12.6% 30.1% 26.5% 22.3% 

 Lee 7.1% 15.9% 33.8% 26.7% 16.4% 

 LMA Total 7.5% 14.9% 32.6% 26.6% 18.3% 

2000 

 Collier 8.0% 10.0% 26.2% 27.6% 27.9% 

 Lee 5.0% 12.7% 32.5% 28.6% 21.1% 

 LMA Total 6.1% 11.8% 30.2% 28.2% 23.5% 

 Source: U.S. Census Bureau, 2000b. 
442

 Finances. The local government finances data show slightly higher levels of per capita 

revenues and debts than the Tampa Bay-St. Petersburg and Sarasota LMAs (Table 8-11). For 

example, the 1997 per capita revenues were $2,943 and $2,818 in the Sarasota and Tampa BaySt. Petersburg LMAs, respectively. However, in the Ft. Myers LMA the rate was $3,740 per 

capita, with local government at $4,500 per capita. These debts had been increasing steadily 

since 1987. The rapid growth in the Ft. Myers LMA appears to have put more strain on its local 

government finances than it did on the local government of other nearby LMAs. 

Table 8 

Total Revenue, Per Capita (in 1997 adjusted dollars), 

Ft. Myers LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Collier $1,709 $2,063 $1,974 $2,279 $2,576 $2,905 

Lee $1,486 $2,102 $2,130 $2,477 $3,154 $4,153 

LMA Total $1,548 $2,091 $2,091 $2,416 $2,970 $3,740 

 Source: U.S. Census Bureau, 2000a. 

Table 9 

Total State Revenue, Per Capita (in 1997 adjusted dollars), 

Ft. Myers LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Collier $483 $516 $440 $371 $406 $454 

Lee $448 $553 $450 $492 $505 $599 

LMA Total $458 $542 $447 $455 $474 $551 

 Source: U.S. Census Bureau, 2000a. 

Table 10 

Total Tax Revenue, Per Capita (in 1997 adjusted dollars), 

Ft. Myers LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Collier $908 $1,091 $960 $1,136 $1,456 $1,517 

Lee $545 $620 $711 $885 $1,153 $1,206 

LMA Total $645 $754 $787 $961 $1,250 $1,309 

 Source: U.S. Census Bureau, 2000a. 
443

Table 11 

Total Debt, Per Capita (in 1997 adjusted dollars), 

Ft. Myers LMA: 1972-1997 

County 1972 1977 1982 1987 1992 1997 

Collier $755 $1,585 $190 $5,407 $2,610 $2,973 

Lee $1,263 $936 $2,256 $3,274 $5,049 $5,348 

LMA Total $1,122 $1,121 $1,629 $3,927 $4,271 $4,561 

 Source: U.S. Census Bureau, 2000a. 

13. Monroe County, Florida: Miami-Dade Labor Market Area 

a. Introduction 

 

This analysis examines historical and current industry and socio-demographic patterns in 

Monroe County, which is part of the Miami-Dade LMA. The analysis is divided into two 

phases. Phase I shows employment patterns in broad (single-digit) industry categories for all 

years between 1969 and 2000 using REIS data from the Bureau of Economic Analysis. Phase II 

is a socio-demographic analysis of the LMA. We examine this county instead of the LMA, 

because Monroe County is on the Gulf of Mexico (the others in the LMA are not). Moreover, 

because Monroe County comprised only 2 percent of the Miami-Dade LMA in 2000, any trends 

in that county will be absorbed by the effects in Miami-Dade and Broward Counties (the 

combined populations of which were over 3 million in 2000). Therefore, unlike for the previous 

LMA analyses, we do not explore historical trends, nor perform forecasting analyses. For this 

particular region, employment data was extrapolated for several years because it was not fully 

available for all industry sectors. Therefore, we present very general trends and avoid making 

specific statements about employment levels within this county. 

b. Setting 

 The Miami-Dade LMA is comprised of Monroe, Broward, and Miami-Dade Counties 

(Map 25). Only Monroe County is located on the Gulf. Almost four million people resided in 

this LMA in 2000. The largest county, Miami-Dade, had a year 2000 population of roughly two 

million residents; Broward County had over one million people. In contrast, Monroe County had 

only 80,000 residents in 2000. The racial composition of Monroe County is largely Caucasian 

(77% in 2000). That composition reflects a decrease of 14 percent since 1990, when Caucasians 

accounted for 91 percent of the county population. This decrease may be due to the expanded 

Hispanic category in the Decennial Census. In 1990, there were slightly over 9,000 Hispanics in 

Monroe County; by 2000, there were over 15,000. During the 1990s, Monroe County’s 

population grew by only 2 percent, slightly over 1,000 people. 
444

Map 25. Monroe County, Florida Miami-Dade Labor Market Area.
445

 c. Unit of Analysis 

 Labor Market Areas (LMAs) are the geographical units of analysis in this report. Labor 

Market Areas are defined by patterns of transportation to and from work within and across 

county boundaries. Labor Market Areas better represent local social systems and, empirically, 

local economies (Killian and Tolbert, 1993).

 Phase I: General Historical Industry Trends. The following section explores general 

historical industry trends for Monroe County (Figure 1). These data are analyzed both crosssectionally and longitudinally in order to gain a more complete understanding of both the 

structure of and the resulting changes to the primary industries in Monroe County over time. 

 Figure 1. Annual Employment, Monroe County: 1969-2000 (U.S. Dept. of Commerce, 

 Bureau of Economic Analysis, 2000). 

 According to REIS data for the year 2000, the Miami-Dade LMA’s economy is very 

concentrated in services (36%) and retail trade (24%). Government employment is on par with 

the national figure of 14 percent. Agriculture had a high level of employment concentration 

(over 4%) (Table 1). This could represent employment in both the citrus and the sugar cane 

industry. Monroe County’s economy is largely tourist-based. 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000

Agric Mining Const Manuf TPU Whol Trade Ret. Trade FIRE Services Govt
446

Table 1 

 Employment by Sector, Monroe County: 2000 

Industry Percent 

Agriculture 4.4 

Mining 0.3 

Construction 6.2 

Manufacturing 1.5 

Transportation/Public Utilities 4.0 

Wholesale Trade 1.9 

Retail Trade 23.8 

Finances, Insurance & Real Estate 7.7 

Services 35.7 

Government 14.5 

 Source: U.S. Census Bureau, 2000b. 

 The following table presents the spatial distribution of three key employment activities 

associated with tourism: accommodation, amusement (tourism, recreation, scenic tours, 

gambling and all other forms of recreation), and food/beverage services. The data show that 

tourism is significant in two counties: Monroe and Walton (located in the Panhandle region). In 

both counties, over 18 percent of the year 2000 workforce was employed in hotel 

accommodations. Okaloosa County, which is adjacent to Walton County and the home of Fort 

Walton Beach, had the third highest concentration of tourist-related industries and employment. 

While tourism is an important component of the Miami-Dade economy, its year 2000 economy 

was diversified with over 850,000 workers (Table 2). 

Monroe, Walton, and Okaloosa Counties are largely dependent upon tourism for 

employment. From a sociological ecological perspective, downturns in the tourist trade will 

have the most significant negative impacts in these places. Tourism is very sensitive to businesscycles. During recessions people do not have as much money to spend on vacations and travel; 

therefore, these economies may suffer. 

 However, this analysis is performed at the LMA level, which is a measure of local 

economies based on commute to work patterns (Killian and Tolbert, 1993). Therefore, any 

downturns in tourist-related industries may not be reflected in the larger LMAs in which these 

counties are embedded. Okaloosa and Walton Counties are in the Pensacola LMA, while 

Monroe County is in the Miami-Dade LMA. Given that Miami is a major metropolitan area, 

discernible effects of economic recessions on the tourist industry may not be as readily 

detectable in this LMA. 
447

Table 2 

 Total Employment in Tourism-Related Industries, Florida Gulf Coast Counties: 2000 

County Total 

Employment 

Food/Service 

Employment 

Amusement 

Employment* 

Accommodation 

Employment 

Bay 54,230 13.0% 1.9% 4.9% 

Charlotte 30,868 9.7% 2.6% 1.6% 

Citrus 22,282 8.9% 3.4% 1.7% 

Collier 82,383 9.4% 4.1% 4.7% 

Dixie 1,341 4.4% 4.4% 4.4% 

Escambia 107,234 8.7% 0.9% 0.9% 

Franklin 1,910 9.8% 1.4% 6.9% 

Gulf 2,408 7.2% 2.8% 2.5% 

Hernando 23,665 11.4% 1.6% 0.7% 

Hillsborough 493,710 5.8% 1.5% 1.2% 

Jefferson 1,685 6.8% 1.1% 1.7% 

Lee 134,701 9.1% 1.8% 4.1% 

Levy 5,704 10.6% 1.2% 1.6% 

Manatee 106,663 5.4% 0.8% 0.7% 

Monroe 32,132 18.2% 4.1% 15.8% 

Okaloosa 55,450 13.7% 1.5% 2.1% 

Pasco 63,316 9.6% 1.5% 1.8% 

Pinellas 396,192 6.7% 1.2% 2.0% 

Santa Rosa 18,733 10.2% 1.6% 0.4% 

Sarasota 132,105 8.1% 20.1% 1.7% 

Taylor 4,836 6.5% 0.2% 1.3% 

Wakulla 2,362 9.4% 3.3% 1.7% 

Walton 9,208 19.0% 2.0% 19.0% 

 *Amusement includes all tourist activities such as scenic tours, visits to historical sites, 

 gambling, and recreation (U.S. Census Bureau, 2000a). 

To test the effects of business cycle recessions on the Monroe County economy since 

1970, we examined the annual trends in employment. The total annual employment for Monroe 

County, together with three-year employment moving averages, show positive growth (Figure 2). 

In almost every year the actual employment levels were greater than expected, based on the 

employment levels in the previous three years. However, these data also show that this county 

was sensitive to the business cycles. For each recession cycle, there was a lag in that 

employment growth did not exceed expectations, as based on three-year employment moving 

averages. 
448

 Figure 2. Total Employment and Three-year Moving Averages, Monroe County: 

 1969-2000 (U.S. Dept. of Commerce, Bureau of Economic Analysis, 2000). 

 Phase II: Socio-Demographic Analysis. The historic and current population data for 

Monroe County show steady growth. This growth slowed considerably between 1990 and 2000 

(Table 3). 

Table 3 

 Total Population by Percent, Monroe County: 1940-2000 

 1940 1950 1960 1970 1980 1990 2000 

White 81.8 89.2 89.6 91.1 91.2 91.5 77.2 

Black 18.0 10.5 9.9 8.0 6.1 5.5% 4.5 

Hispanic* NA NA NA 14.9 11.4 11.9% 15.7 

Total Pop. 14,078 29,957 47,921 52,586 63,188 78,024 79,589 

 NA = Data not available. 

 * “Hispanic” was not a Census-defined racial category prior to 1970. 

 Source: U.S. Census Bureau, 2000b. 

Retirement Age Population. Monroe County is a retirement-age intensive county. In 

2000, 14 percent of the population in Monroe County was over the age of 65; the national rate 

was 12 percent (Table 4). 

0

10,000

20,000

30,000

40,000

50,000

60,000

19691970197119721973197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000
449

Table 4 

Percent Population Over 65, Monroe County: 1950-2000 

County 1950 1960 1970 1980 1990 2000 

Monroe 4.9 5.5 8.5 13.9 15.7 14.5 

 Source: U.S. Census Bureau, 2000b. 

Education. Given Monroe County’s emphasis on tourism, very high levels of education 

attainment were not expected. To the contrary, 25 percent of the county’s adult population held 

college degrees in 2000; this figure is on par with the national figure. Moreover, this finding 

holds for other Census years dating back to 1970. However, only 15 percent of adults in 

Monroe County did not possess a high school diploma in 2000; this rate was one of the lowest 

for all Florida counties along the Gulf of Mexico (Table 5). 

Table 5 

 Adult Educational Attainment (age 25+), Monroe County: 1970-2000 

Year 0-8 

Years 

Some High 

School 

High School 

Diploma 

Some College, 

No Degree 

BA/BS 

or More 

Total 

1970 23.5% 20.5% 36.0% 10.8% 9.1% 28,085 

1980 12.8% 14.8% 36.5% 20.0% 15.9% 43,005 

1990 7.6% 12.6% 29.1% 30.2% 20.3% 58,585 

2000 4.6% 10.4% 28.9% 30.5% 25.4% 61,161 

 Source: U.S. Census Bureau, 2000b. 

Finances. Between 1987 and 1997, per capita revenues in Monroe County increased by 

almost $1,000 per capita in real dollars. The most notable trend is that per capita debt for local 

government finance almost doubled (in real dollars) between 1982 and 1987. In 1987, local 

government debt increased to almost $4,500 per person in 1997 dollars. In 1997, that debt 

burden had decreased to $3,100 per person, a drop of 45 percent in real dollars (Table 6). 

Table 6 

 Per Capita (in 1997 adjusted dollars), Government Finances, 

Monroe County: 1972-1997 

Finances 1972 1977 1982 1987 1992 1997 

Total Revenue $2,170 $2,883 $2,959 $3,685 $3,228 $4,800 

State Revenue $569 $709 $427 $444 $460 $533 

Tax Revenue $474 $680 $617 $1,181 $1,628 $1,749 

Total Debt $1,052 $952 $2,717 $4,487 $2,982 $3,107 

 Source: U.S. Census Bureau, 2000a. 
451

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The Department of the Interior Mission

As the Nation's principal conservation agency, the Department of the Interior has responsibility 

for most of our nationally owned public lands and natural resources. This includes fostering 

sound use of our land and water resources; protecting our fish, wildlife, and biological diversity; 

preserving the environmental and cultural values of our national parks and historical places; 

and providing for the enjoyment of life through outdoor recreation. The Department assesses 

our energy and mineral resources and works to ensure that their development is in the best 

interests of all our people by encouraging stewardship and citizen participation in their care. 

The Department also has a major responsibility for American Indian reservation communities 

and for people who live in island territories under U.S. administration. 

The Minerals Management Service Mission 

As a bureau of the Department of the Interior, the Minerals Management Service's (MMS) 

primary responsibilities are to manage the mineral resources located on the Nation's Outer 

Continental Shelf (OCS), collect revenue from the Federal OCS and onshore Federal and Indian 

lands, and distribute those revenues. 

Moreover, in working to meet its responsibilities, the Offshore Minerals Management Program 

administers the OCS competitive leasing program and oversees the safe and environmentally 

sound exploration and production of our Nation's offshore natural gas, oil and other mineral 

resources. The MMS Minerals Revenue Management meets its responsibilities by ensuring the 

efficient, timely and accurate collection and disbursement of revenue from mineral leasing and 

production due to Indian tribes and allottees, States and the U.S. Treasury. 

The MMS strives to fulfill its responsibilities through the general guiding principles of: (1) being 

responsive to the public's concerns and interests by maintaining a dialogue with all potentially 

affected parties and (2) carrying out its programs with an emphasis on working to enhance the 

quality of life for all Americans by lending MMS assistance and expertise to economic 

development and environmental protection.